Greif Inc. · NYSE:GEF
Greif — Q3 2023 Earnings Presentation
22 slides from Greif's earnings presentation, Aug 31, 2023
Slide 1: Third Quarter Fiscal 2023 Earnings Conference Call
Third Quarter Fiscal 2023 Earnings Conference Call August 31, 2023
Slide 2: Safe Harbor
Safe Harbor August 31, 2023 P.2
Slide 3: Pursuing our Purpose, Vision and Build to Last Strategy
Pursuing our Purpose, Vision and Build to Last Strategy OUR PURPOSE We create packaging solutions for life’s essentials OUR VISION Be the best performing customer service company in the world OUR STRATEGY MISSIONS CREATING DELIVERING PROTECTING ENSURING THRIVING COMMUNITIES LEGENDARY OUR FUTURE FINA
Slide 4: Third Quarter Fiscal Year (FY) 2023 Key Highlights
Third Quarter Fiscal Year (FY) 2023 Key Highlights • Continued strong performance and execution consistency in Q3 2023 ‒ Adj. EBITDA1 of $226.5M ‒ Adj. Free Cash Flow1 of $167.1M ‒ Adj. Class A EPS1 of $1.75/share • Driving our Build to Last Strategy in a tough operating environment ‒ Weathered dema
Slide 5: Driving Value-Accretive Growth through M&A
Driving Value-Accretive Growth through M&A Announcing new Joint-Venture with 51% ownership in ColePak Inc., a leader in niche North American partitions market Manufacturer of bulk and specialty partitions made from both containerboard (CB) and uncoated recycled board (URB) serving a broad range of a
Slide 6: Global Industrial Packaging (GIP) Review
Global Industrial Packaging (GIP) Review FINANCIAL PERFORMANCE ($M) Q3 FY22 Q3 FY23 Net sales $906.7 $761.8 Gross profit $177.7 $176.8 Adjusted EBITDA1 $117.1 $126.5 Adjusted EBITDA % 12.9% 16.6% FQ3 ‘23 Takeaways ▪ Volumes remained at a low level in all substrates throughout the quarter, trending s
Slide 7: Paper Packaging & Services (PPS) Review
Paper Packaging & Services (PPS) Review FINANCIAL PERFORMANCE ($M) Q3 FY22 Q3 FY23 Net sales $710.2 $563.9 Gross profit $167.3 $128.1 Adjusted EBITDA1 $131.8 $98.1 Adjusted EBITDA % 18.6% 17.4% FQ3 ‘23 Takeaways ▪ Lower mill volumes continued to pressure results with CB modestly better and URB flat
Slide 8: Fiscal Q3'23 vs. Fiscal Q3'22: Financial Comparison
Fiscal Q3’23 vs. Fiscal Q3’22: Financial Comparison Financial Performance ($M, $/sh) Q3 Q3 FY22 FY23 Net sales $1,622.1 $1,330.3 Gross profit $346.9 $307.0 SG&A $141.6 $135.7 Adjusted EBITDA1 $251.0 $226.5 Adj. Capital expenditures $35.7 $44.0 Adj. Free Cash Flow1 $175.8 $167.1 Adj. Class A Earnings
Slide 9: Long-term Capital Deployment Objectives
Long-term Capital Deployment Objectives Maintain target leverage ratio Diversify and enhance shareholder return Invest back into business for growth 3.00x Increasing our quarterly dividend by 4% Compliance 2.75x 2.50x $0.78 Maintenance 2.25x GEF B $0.03 $0.52 2.00x GEF A $0.02 Organic 1.75x Growth 1
Slide 10: FY 2023 Guidance and Financial Assumptions
FY 2023 Guidance and Financial Assumptions Prior Guidance Current Guidance Change from Financial outlook ($M) Range (Q2’23) Range (Q3’23) Midpoint Adj. EBITDA1 $780 - 830 $790 - 820 - Adj. Free Cash Flow2 $390 - 440 $400 - 430 - Financial assumptions ($M) DD&A $226 - $230 $228 - $232 $2 Adj. Capital
Slide 11: Thank you.
Third Quarter Fiscal 2023 Earnings Conference Call Thank you. August 31, 2023 P.11
Slide 12: Appendix
Third Quarter Fiscal 2023 Earnings Conference Call Appendix June 8, 2023 P.12
Slide 13: Greif Investor Day: Key Messages
Greif Investor Day: Key Messages June 8, 2023 P.13
Slide 14: Fiscal Q3'23 Sales Breakdown for Primary Products
Fiscal Q3’23 Sales Breakdown for Primary Products June 8, 2023 P.14
Slide 15: Non-GAAP Financial Measures
Non – GAAP Financial Measures Non-GAAP measures are intended to supplement and should be read together with our financial results. They should not be considered an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of this fina
Slide 16: GAAP to Non-GAAP Reconciliation: Net Income to Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Reconciliation of Net Income to Adjusted EBITDA June 8, 2023 P.16
Slide 17: GAAP to Non-GAAP Reconciliation: Segment Operating Profit to Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Reconciliation of Segment Operating Profit to Adjusted EBITDA June 8, 2023 P.17
Slide 18: GAAP to Non-GAAP Reconciliation: Net Income and Class A EPS
GAAP to Non-GAAP Reconciliation: Reconciliation of Net Income and Class A Earnings Per Share Excluding Adjustments June 8, 2023 P.18
Slide 19: GAAP to Non-GAAP Reconciliation: Adjusted Free Cash Flow
GAAP to Non-GAAP Reconciliation: Reconciliation of Adjusted Free Cash Flow June 8, 2023 P.19
Slide 20: GAAP to Non-GAAP Reconciliation: Net Debt
GAAP to Non-GAAP Reconciliation: Reconciliation of Net Debt June 8, 2023 P.20
Slide 21: GAAP to Non-GAAP Reconciliation: Compliance Leverage Ratio
GAAP to Non-GAAP Reconciliation: Reconciliation of Compliance Leverage Ratio June 8, 2023 P.21
Slide 22: GAAP to Non-GAAP Reconciliation: 2023 Adjusted Free Cash Flow Guidance
GAAP to Non-GAAP Reconciliation: Reconciliation of 2023 Adjusted Free Cash Flow Guidance June 8, 2023 P.22