Greif Inc. · NYSE:GEF
Greif — Investor Presentation (January 2022)
32 slides from Greif's investor presentation, Jan 18, 2022
Slide 1: Investor Presentation
Investor Presentation January 2022
Slide 2: Safe harbor
Safe harbor FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. The words “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “aspiration,” “objective,” “project,” “believe,”
Slide 3: Greif: the leading industrial packaging solutions provider
Greif: the leading industrial packaging solutions provider FY21 Net Sales by Segment Leading Positions in Multiple Packaging Substrates1 Upstream Ops Industrial Packaging Uncoated recycled Flexible Rigid Steel boxboard IBCs IBCs Global Industrial Packaging (URB) #2 #1 #1 #3 Paper Packaging & Service
Slide 4: Fiscal Year (FY) 2021 key highlights
Fiscal Year (FY) 2021 key highlights Delivered record financial Advanced key financial priorities Accelerated ESG strategy and Positioned for an even performance and enhanced shareholder returns improved colleague engagement stronger Fiscal 20222,3 Record Adj. EBITDA1: $764.2M Compliance leverag
Slide 5: Volumes and sales quarter to date (FQ1 2022)
Volumes and sales quarter to date (FQ1 2022) Customers continue to report strong underlying demand but face external challenges Volumes through December 2021 indicate generally in line or stronger YoY performance. Versus prior year: ► Global steel drum volume down low single-digits ► Global IBC vo
Slide 6: Why invest in Greif?
Why invest in Greif? Robust and diverse product portfolio with exposure to a variety of end markets globally ► Leading producer of steel / plastic / fibre drums; rigid intermediate bulk containers; industrial closures; uncoated recycled boxboard Compelling customer value proposition due to demon
Slide 7: Why invest in Greif? Diverse product portfolio and end markets
Why invest in Greif? Robust and diverse product portfolio with exposure to a variety of end markets globally Global Industrial Packaging (GIP) End Markets Geography United States Petrol Prod, Lube Oils & Adds Packaging Distributors Specialty Chemicals Europe, Middle East and Africa Bulk/Commodity Ch
Slide 8: Why invest in Greif? Customer value proposition
Why invest in Greif? Compelling customer value proposition due to demonstrated commitment to customer service Customer Satisfaction Index Scores Net Promoter Scores Wave 11 60 Wave 10 67 93.0 93.2 89.8 87.5 Wave 9 61 86.0 82.2 Wave 8 57 Wave 7 50 72.5 Wave 6 46 Wave 5 47 Wave 4 47 Wave 3 42 Wave 2 4
Slide 9: Why invest in Greif? Avenues for growth and margin enhancement
Why invest in Greif? Numerous avenues for incremental low risk growth and margin enhancement Containerboard Integration & Plastics & IBCs IBC Reconditioning Specialty Products • Rigid Intermediate Bulk Container (IBC) • Expanding reconditioning network and • Focused approach to expanding higher CAGR
Slide 10: Why invest in Greif? Consistent capital allocation strategy
Why invest in Greif? Consistent capital allocation strategy focused on reinvestment, dividends and balance sheet strength 2022 Anticipated CapEx Leading Dividend Yield1 Balance Sheet Strength Compliance GEF.B Total debt leverage ($B) ratio IP $2,700 4.0x SON Total debt 3.8x GEF $2,600 3.6x PKG $2,50
Slide 11: Why invest in Greif? Strong track record of financial performance
Why invest in Greif? Strong track record of improving financial performance Net Sales Growth ($ in Billions) Adj. EBITDA1 ($ in Millions) $785 – $5.5 $764 $835 $659 $643 $4.6 $4.5 $503 $3.9 $428 $446 $3.6 $394 $3.6 $3.3 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 2022 Impli
Slide 12: Why invest in Greif? Adj. Class A EPS
Why invest in Greif? Strong track record of improving financial performance Adj. Class A EPS1 $6.50 CAGR = 17% $6.00 $5.50 $5.00 $4.50 $4.00 >150% improvement in Class $3.50 A adjusted earnings per share $3.00 despite zero buybacks! $2.50 $2.00 $1.50 $1.00 $0.50 2015 2016 2017 2018 2019 2020 2021 20
Slide 13: Sustained outperformance versus the S&P 500 industrials
Why invest in Greif? Sustained outperformance (total return) versus the S&P 500 industrials 300 250 200 150 100 50 Greif Class A S&P 500 / Industrials -SEC 0 Source: Factset January 18, 2022 P.13
Slide 14: Committed to sustainability leadership and embedding ESG
Why invest in Greif? Committed to sustainability leadership and embedding ESG deeper into the business Significant milestones sustainability / ESG journey milestones 2021 2019 Second materiality 2017 Named to Newsweek’s assessment First materiality inaugural most responsible conducted, and new 2009
Slide 15: Greif valuation versus peers
Greif valuation versus peers Greif is trading at a significant discount to other packagers and paper companies 2022E Enterprise Value / EBITDA 2022E Free Cash Flow Yield 11.0x 10.1x 15.1% 9.7x 9.6x 9.1x 12.5% 11.3% 11.1% 8.2x 8.2x 10.0% 9.4% 9.2% 7.7x 6.4x 5.7% 6.1x 5.2% 3.0% 2.3% GEF CCK SLGN SON G
Slide 16: ESG Highlights
GREIF ESG Highlights PACKAGING SUCCESS TOGETHER™
Slide 17: Elevating ESG even further to enhance performance
Elevating ESG even further to enhance performance Environmental Social Governance Building upon our track record of success as a Further enhancing our culture of safety and Strong oversight established and “top-down” strong steward of the environment and a leader engagement alignment in place in cir
Slide 18: Deploying sustainable packaging solutions
Deploying sustainable packaging solutions Down-gauged Products Recycled Raw Materials Reconditioned Products Transportation Optimization Products that utilize less raw materials in their Products made from recycled raw materials, i.e., Products recycled for multiple usage and/or development, i.e., d
Slide 19: Business Segment Highlights
Business Segment Highlights
Slide 20: Global Industrial Packaging (GIP) Segment Overview
Global Industrial Packaging (GIP) Segment Overview FY21 Net Sales by Product Highlights & Capabilities Steel • Extensive global expertise and operational footprint Large / Med Plastic • Industry’s most comprehensive product line offering Small Plastic Fibre ─ #1 product share in steel drum, fibre dr
Slide 21: Paper Packaging & Services (PPS) Segment Overview
Paper Packaging & Services (PPS) Segment Overview FY21 Net Sales by Product Highlights & Capabilities • Niche position in containerboard and CRB; strong position in URB Mills and tubes/cores Corrugated Sheets • Best in class, differentiated customer service orientation Box Board Products (JV) • Vert
Slide 22: Appendix
GREIF popens PACKAGING SUCCESS TOGETHER™
Slide 23: Announced divestiture of Flexible Products & Services
Announced divestiture of Flexible Products & Services Announced divestiture on January 3, 2022 • Entered into an agreement to sell Greif’s 50% ownership stake in FPS to Gulf Refined Packaging for $123 million, subject to certain conditions and post closing adjustments ‒ Internal review concluded FPS
Slide 24: Grounded in purpose, vision and three strategic priorities
Grounded in purpose, vision and three strategic priorities To safely package and protect our customers’ goods and materials to Purpose serve the essential needs of communities around the world In industrial packaging, be the best performing Vision customer service company in the world Engaged Teams
Slide 25: Key assumptions and sensitivity
Key assumptions and sensitivity FY 2022 Foreign Exchange Exposure Paper Packaging & Services Assumptions & Sensitivity 10% strengthening of the Cumulative impact PPS Stats Currency USD; impact to EBITDA before hedging Containerboard production ~1M tons per year Euro $(9M) – $(11M) $(9M) – $(11M) Nex
Slide 26: Risk adjusted framework in place to screen future growth
Risk adjusted framework in place to screen future growth Organic Growth Capital Expenditure Acquisition • New equipment in existing • New plant in existing • Footprint consolidation / expansion • Strategic customer alignment and Description facility geography • Product and process adjacency share ex
Slide 27: Reconciliation Tables
GREIF Reconciliation ° Tables PACKAGING SUCCESS TOGETHER™
Slide 28: GAAP to Non-GAAP Reconciliation: Operating Profit to Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Segment and Consolidated Financials: Operating Profit to Adjusted EBITDA Note: Adjusted EBITDA is defined as net income, plus interest expense, net, plus income tax expense, plus depreciation, depletion and amortization expense, plus restructuring charges, plus acqui
Slide 29: GAAP to Non-GAAP Reconciliation: Adjusted Free Cash Flow
GAAP to Non-GAAP Reconciliation: Adjusted Free Cash Flow Twelve Months Ended October 31, (in millions) 2015 2016 2017 2018 2019 2020 2021 Net cash provided by operating activities 206.3 301.0 305.0 253.0 389.5 454.7 396.0 Cash paid for purchases of properties, plants and equipment (135.8) (100.1) (9
Slide 30: GAAP to Non-GAAP Reconciliation: Projected 2022 Adjusted Free Cash Flow
GAAP to Non-GAAP Reconciliation: Projected 2022 Adjusted Free Cash Flow Guidance Fiscal 2022 Guidance Range (in millions) Scenario 1 Scenario 2 Net cash provided by operating activities 536.0 612.0 Cash paid for purchases of properties, plants and equipment (150.0) (170.0) Free Cash Flow 386.0 442.0
Slide 31: GAAP to Non-GAAP Reconciliation: Net Income and Class A EPS
GAAP to Non-GAAP Reconciliation: Historical Net Income and Class A Earnings Per Share Excluding Adjustments Income before Income before Income Tax Income Tax (Benefit) Expense Net Income Diluted (Benefit) Expense Net Income Diluted and Equity Earnings Income Tax Non- (Loss) Class A and Equity Earnin
Slide 32: Credit Agreement Leverage Ratio
Credit Agreement Leverage Ratio Trailing Twelve Month Credit Agreement EBITDA (in millions) TTM 7/31/2020 TTM 10/31/2020 TTM 01/31/2021 TTM 04/30/2021 TTM 07/31/2021 TTM 10/31/2021 Net income 146.1 124.3 119.1 257.3 351.3 459.3 Plus: Interest expense, net 122.2 115.8 110.3 107.7 101.8 92.7 Plus: Inc