Slide 1: March 2020 Investor Presentation
March 2020 Investor Presentation
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: Who we are
GREIF “"" PACKAGING SUCCESS TOGETHER™ March 20, 2020 — P.3
Slide 4: Leading industrial packaging solutions provider
Who we are How we operate Why invest in Greif? Business segment overview Appendix Leading industrial packaging solutions provider 2019 Performance ($M) Highlights and capabilities Differentiations Revenue $4,595.0 • Leading product positions in • Demonstrated commitment to multiple packaging substra
Slide 5: Leading positions in multiple packaging substrates
Who we are How we operate Why invest in Greif? Business segment overview Appendix Leading positions in multiple packaging substrates Upstream Operations Industrial Packaging Steel Industrial Fibre Flexible IBCs #2 Closures Uncoated Recycled Paperboard (URB) #3 #1 #1 #1 #1 Coated Recycled Paperboard
Slide 6: Record Fiscal Year (FY) 2019 performance
Who we are How we operate Why invest in Greif? Business segment overview Appendix Record Fiscal Year (FY) 2019 performance Net Sales Adj. EBITDA1 Adj. EBITDA Adjusted EPS1 Adjusted Free +18.6% to +30.9% to Margin +12.2% to Cash Flow2 $4,595M $658.9M +130BP to $3.96 +50.0% to 14.3% $267.8M Notable ac
Slide 7: How we operate
How we operate March 20, 2020 – P.7
Slide 8: Our values and behaviors
Who we are How we operate Why invest in Greif? Business segment overview Appendix Our values and behaviors Values Behaviors Communicate with respect, candor, and trust Think Act with the Greif mindset of a first champion Model the behaviors of a servant leader March 20, 2020 – P.8
Slide 9: What we do for customers
Who we are How we operate Why invest in Greif? Business segment overview Appendix What we do for customers Exceed their expectations with customer Protect their Enhance their service, products sustainability flexibility, and innovations • Leverage our diverse geographic • Offer sustainable solutions
Slide 10: A clear vision with strategic priorities in place
Who we are How we operate Why invest in Greif? Business segment overview Appendix A clear vision with strategic priorities in place Strategic In industrial packaging, be the best performing Vision customer service company in the world 1 Engaged Teams 2 Differentiated Customer Service 3 Enhanced Perf
Slide 11: Strategic priority: engaged teams
Who we are How we operate Why invest in Greif? Business segment overview Appendix 1 Strategic priority: engaged teams Teams in the top quartile of those Gallup1 has Gallup Overall Engagement Score studied have… 21% Higher profitability 4.0 Manufacturing sector 3.97 percentile ranking 17% Higher prod
Slide 12: Strategic priority: differentiated customer service
Who we are How we operate Why invest in Greif? Business segment overview Appendix 2 Strategic priority: differentiated customer service Customer Satisfaction Index (CSI) Net Promoter Score (NPS) 100 Net Promoter Wave 9 Score 90 6 26 67 = 61 80 70 60 Wave 1 50 11 38 51 = 40 40 30 Detractors Passive P
Slide 13: Strategic priority: enhanced financial performance
Who we are How we operate Why invest in Greif? Business segment overview Appendix 3 Strategic priority: enhanced financial performance Net Sales ($ Millions) Adj. EBITDA ($ Millions) $5,000 $700 $4,600 6.2% 13.8% $4,200 $500 $3,800 $3,400 $3,000 $300 FY15 FY19 CAGR FY15 FY19 ‘15-’19 Adj. EPS ($/sh)
Slide 14: Strategic priority: enhanced financial performance
Who we are How we operate Why invest in Greif? Business segment overview Appendix 3 Strategic priority: enhanced financial performance Anticipated synergy over 36 months ($M) Caraustar run-rate synergy detail $75 $70 Transport / Logistics $65 Procurement / $60 Materials Operational $55 Enhancements
Slide 15: Strategic priority: enhanced sustainability performance
Who we are How we operate Why invest in Greif? Business segment overview Appendix 3 Strategic priority: enhanced sustainability performance 2016 2018 Join UN Global Achieved an 2019 Compact “A- Leadership” Achieved an “A” 2017 CDP score MSCI ESG rating Sustainability goals established 2015 2016 2017
Slide 16: Why invest in Greif?
Why invest in Greif? March 20, 2020 – P.16
Slide 17: Global trends support Greif's future growth
Who we are How we operate Why invest in Greif? Business segment overview Appendix Global trends support Greif’s future growth Trend Comments Growth of economies and rise of the • Emerging economies are driving greater consumption middle class of products, goods and infrastructure Growing influence o
Slide 18: Advancing low risk growth priorities close to our core
Who we are How we operate Why invest in Greif? Business segment overview Appendix Advancing low risk growth priorities close to our core IBC and IBC reconditioning Containerboard integration • Organic IBC investments completed at • New Palmyra, PA sheet feeder enhances Houston, Spain and Russia to e
Slide 19: Track record of delivering on stated outlook
Who we are How we operate Why invest in Greif? Business segment overview Appendix Track record of delivering on stated outlook Adjusted Class A Earnings Per Share: guidance provided versus actual results $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 Q2 Q3 ACT Beg Q1 Q2 Q3 ACT Beg Q1 Q2 Q3 ACT Beg Q1 Q2 Q3 ACT
Slide 20: Clear capital allocation priorities in place
Who we are How we operate Why invest in Greif? Business segment overview Appendix Clear capital allocation priorities in place 1 Reinvest in • Fund maintenance to sustain cash generation and advance organic growth the business opportunities that exceed required returns 2 De-lever the balance • Curre
Slide 21: Potential for significant interest savings in 2021
Who we are How we operate Why invest in Greif? Business segment overview Appendix Potential for significant interest savings in 2021 Debt maturities as of 1/31/2020 ($M) $1,600 Key liquidity statistics • Covenant net debt to EBITDA requirement = $1,400 4.75x; GEF currently 3.7x (Q1’20) • ~70% of deb
Slide 22: Industry leading dividend and compelling valuation
Who we are How we operate Why invest in Greif? Business segment overview Appendix Industry leading dividend and compelling valuation Dividend yield 2020E FCF Yield EV / NTM EBITDA Owens-Illinois Ball Greif Berry Global Group Aptargroup International Paper Greif Avery-Dennison Packaging Corps of Amer
Slide 23: Greif's dividend yield outpaces similar instruments
Who we are How we operate Why invest in Greif? Business segment overview Appendix Greif’s dividend yield outpaces similar instruments GEF vs peer companies & the broad market 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 1 1 3 4 10 Year Treasury 30 Year Treasury S&P 500 2 Peer Companies Greif Grei
Slide 24: Anticipate significant EBITDA and FCF Expansion
Who we are How we operate Why invest in Greif? Business segment overview Appendix Anticipate significant EBITDA and FCF Expansion FY’22 Adj. FY’22 Adj. Free Path to 2022 Adjusted EBITDA ($M) $M EBITDA1 Cash Flow2 $1,000 RIPS $288 – $315 $820 - $900 $800 PPS $490 – $530 $600 $503.2 FPS $30 – $40 $400
Slide 25: Why invest in Greif?
Who we are How we operate Why invest in Greif? Business segment overview Appendix Why invest in Greif? We operate a defensible fleet We are committed to We are pursuing numerous We offer a compelling of global cash flowing customer service excellence avenues for incremental low- dividend and opportu
Slide 26: Appendix
GREIF PACKAGING SUCCESS TOGETHER™ Appendix
Slide 27: Business segment overview
Business segment overview March 20, 2020 – P.27
Slide 28: RIPS: broad product and services capability
Who we are How we operate Why invest in Greif? Business segment overview Appendix RIPS: broad product and services capability Steel Fibre Closures Plastic #1 #1 #1 #2 IBC Earth Minded Filling #3 RIPS is the most comprehensive customer solutions provider in the industry Note: Ranking denotes standing
Slide 29: RIPS: highlights and differentiation
Who we are How we operate Why invest in Greif? Business segment overview Appendix RIPS: highlights and differentiation 2019 Financials ($M) Highlights and Capabilities Differentiation Revenue $2,490.6 • Extensive global expertise and • Industry’s most comprehensive operational footprint product line
Slide 30: RIPS: expanding reconditioning for sustainable solutions
Who we are How we operate Why invest in Greif? Business segment overview Appendix RIPS: expanding reconditioning for sustainable solutions Reconditioning overview Greif today Greif future state • Benefits to customers: • Operate services to facilitate • Closed loop network in place in collection and
Slide 31: PPS: broad portfolio offering a variety of paper products
Who we are How we operate Why invest in Greif? Business segment overview Appendix PPS: broad portfolio offering a variety of paper products Mills Containerboard Uncoated Recycled Coated Recycled Paperboard Paperboard Recovered Fiber C #2 #3 Converting Corrugated Consumer Tube & Core Products Packagi
Slide 32: PPS: highlights and differentiation
Who we are How we operate Why invest in Greif? Business segment overview Appendix PPS: highlights and differentiation 2019 Financials ($M) Highlights and Capabilities Differentiation Revenue $1,780.0 • Niche position in containerboard • Speed – response and lead times Adjusted EBITDA1 $348.3 • Leade
Slide 33: PPS: expanded, integrated and national paper network
Who we are How we operate Why invest in Greif? Business segment overview Appendix PPS: expanded, integrated and national paper network Containerboard Corrugated ~1M tons 7 sheet feeders Packaging 1 box plant Industry Recovered Uncoated Boxboard Tubes & Cores Fiber Group ~800K tons 45 converting plan
Slide 34: PPS: IPG benefits from diverse end markets
Who we are How we operate Why invest in Greif? Business segment overview Appendix PPS: IPG benefits from diverse end markets • IPG’s diversified end market revenue provides broad Tube/core revenue by end market1 exposure to US economic activity • Tube/core market offers limited risk as paper remains
Slide 35: PPS: Recovered Fiber Group
Who we are How we operate Why invest in Greif? Business segment overview Appendix PPS: Recovered Fiber Group Business Overview and Opportunities • Top 10 recovered fiber business with strategically positioned assets that limits freight/transport costs • Procures, collects, processes and brokers mate
Slide 36: FPS: global market leader with superior capabilities
Who we are How we operate Why invest in Greif? Business segment overview Appendix FPS: global market leader with superior capabilities 1&2 loop bag 4 loop bag Reconditioning Container liners 1-Loop 2-Loop #1 #1 #1 North America FPS is the largest FIBC producer in the world offering the most comprehe
Slide 37: FPS: highlights and differentiation
Who we are How we operate Why invest in Greif? Business segment overview Appendix FPS: highlights and differentiation 2019 Financials ($M) Highlights and Capabilities Differentiation Revenue $297.5 • Leading position in highly • Exceptional technical capabilities fragmented market and differentiated
Slide 38: Guidance and required reconciliation tables
Guidance and required reconciliation tables
Slide 39: FY20 guidance and key modeling assumptions
Who we are How we operate Why invest in Greif? Business segment overview Appendix FY20 guidance and key modeling assumptions Fiscal 2020 guidance1 ($/sh and $M) FY 2020 Guidance issued at Q1 ‘20 FY 2020 Guidance issued at Q4 ‘19 Adj. Class A Earnings Per Share1 $3.55 – $3.91 $3.63 – $4.13 Adjusted F
Slide 40: Fiscal 2022 financial commitments assumptions
Who we are How we operate Why invest in Greif? Business segment overview Appendix Fiscal 2022 financial commitments assumptions • Net sales will be approximately $5.5B in Fiscal 2022 as a result of strategic growth CapEx, Caraustar inclusion and organic growth • Raw material costs assumed flat again
Slide 41: Net sales bridge: FY15 to FY18
Who we are How we operate Why invest in Greif? Business segment overview Appendix Net sales bridge: FY15 to FY18 $M $4,500 $4,000 ~$950 $3,500 ~$100 $3,000 ~$400 ~$400 $2,500 $2,000 $1,500 $1,000 $500 $0 FY 2015 Closures/ F/x Profitable revenue Organic FY2018 net sales divestitures headwind transfer
Slide 42: Q1 Price, Volume and Foreign Currency Impact to Net Sales
Who we are How we operate Why invest in Greif? Business segment overview Appendix Q1 Price, Volume and Foreign Currency Impact to Net Sales for Primary Products: TOTAL SALES VOLUME PRICE FX VARIANCE RIPS NA -6.2% -5.0% 0.2% -11.0% ($12.7) ($10.2) $0.3 ($22.5) RIPS LATAM -1.4% 11.6% -15.4% -5.2% ($0.
Slide 43: GAAP to Non-GAAP Reconciliation: Operating Profit to Adjusted EBITDA
Who we are How we operate Why invest in Greif? Business segment overview Appendix GAAP to Non-GAAP Reconciliation: Reconciliation of Operating Profit to Adjusted EBITDA $Millions March 20, 2020 – P.43
Slide 44: GAAP to Non-GAAP Reconciliation: Adjusted Free Cash Flow
Who we are How we operate Why invest in Greif? Business segment overview Appendix GAAP to Non-GAAP Reconciliation: Adjusted Free Cash Flow(1) $Millions March 20, 2020 – P.44
Slide 45: GAAP to Non-GAAP Reconciliation: Projected 2020 Adjusted Free Cash Flow
Who we are How we operate Why invest in Greif? Business segment overview Appendix GAAP to Non-GAAP Reconciliation: Projected 2020 Adjusted Free Cash Flow $Millions March 20, 2020 – P.45
Slide 46: GAAP to Non-GAAP Reconciliation: Earnings per share and Tax Rate
Who we are How we operate Why invest in Greif? Business segment overview Appendix GAAP to Non-GAAP Reconciliation: Earnings per share and Tax Rate $/share and % March 20, 2020 – P.46
Slide 47: GAAP to Non-GAAP Reconciliation: Earnings per share and Tax Rate
Who we are How we operate Why invest in Greif? Business segment overview Appendix GAAP to Non-GAAP Reconciliation: Earnings per share and Tax Rate $/share and % March 20, 2020 – P.47
Slide 48: GAAP to Non-GAAP Reconciliation: Segment Operating Profit to Adjusted EBITDA
Who we are How we operate Why invest in Greif? Business segment overview Appendix GAAP to Non-GAAP Reconciliation: Reconciliation of segment Operating Profit to Adjusted EBITDA(4) $Millions (4) Adjusted EBITDA is defined as net income, plus interest expense, net, including debt extinguishment charge
Slide 49: GAAP to Non-GAAP Reconciliation: Segment Operating Profit to Adjusted EBITDA
Who we are How we operate Why invest in Greif? Business segment overview Appendix GAAP to Non-GAAP Reconciliation: Reconciliation of segment Operating Profit to Adjusted EBITDA(4) $Millions (4) Adjusted EBITDA is defined as net income, plus interest expense, net, including debt extinguishment charge