Slide 1: Fiscal Second Quarter 2024 Earnings Conference Call
Fiscal Second Quarter 2024 Earnings Conference Call June 6, 2024
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,” “c
Slide 3: Build to Last: Purpose and Strategy in Action
Build to Last: Purpose and Strategy in Action OUR PURPOSE We create packaging solutions for life’s essentials OUR VISION Be the best performing customer service company in the world OUR BUILD TO LAST CREATING DELIVERING PROTECTING ENSURING STRATEGIC THRIVING COMMUNITIES LEGENDARY OUR FUTURE FINANCIA
Slide 4: Our Culture Has Created a Competitive Advantage
Our Culture Has Created a Competitive Advantage Net Promoter Score (NPS)1 Putting the service profit chain Engaged TO WORK Manufacturing Average2 Colleagues 40 40 42 47 47 47 50 57 61 67 60 65 68 WAVE 1 WAVE 2 WAVE 3 WAVE 4 WAVE 5 WAVE 6 WAVE 7 WAVE 8 WAVE 9 WAVE 10 WAVE 11 WAVE 12 WAVE 13 2018 2024
Slide 5: Packaging Sustainably Together
Packaging Sustainably Together Recent progress highlights our commitment to sustainable innovation Raw Materials • Issued 15th Annual Sustainability Report in April, Down gauging Production • Recycled content including progress update on 2030 goals • Initiatives to reduce • Alternative energy, emi
Slide 6: Accelerating Our Growth Through Targeted M&A
Accelerating Our Growth Through Targeted M&A Growing our business through acquisitions to provide the most comprehensive suite of product offerings globally in high-performance jerrycans / small plastics 31 FACILITIES 18 COUNTRIES Growing in the compelling jerrycan / Greif small plastics market Lee
Slide 7: Effectively Navigating Dynamic and Changing Global Markets
Effectively Navigating Dynamic and Changing Global Markets Regional volume performance (year-over-year) and current market trends Positive momentum for remainder of fiscal year as industrial activity increases and near-term demand trends advance North GIP (-5%) America PPS +2% EMEA +8% ▪ GIP: Contin
Slide 8: Fiscal Second Quarter 2024 Key Highlights
Fiscal Second Quarter 2024 Key Highlights Continuing to make decisive progress on our Build to Last strategy ▪ Continued solid execution under the Greif Business System (GBS) 2.0 leading to sustained cost savings while monitoring the business for pockets of improved demand ▪ Completed acquisition of
Slide 9: Global Industrial Packaging (GIP) Review
Global Industrial Packaging (GIP) Review FINANCIAL PERFORMANCE ($M) Q2 FY23 Q2 FY24 Net sales $748.2 $804.8 Gross profit $177.9 $181.5 Adjusted EBITDA1 $121.2 $118.3 Adjusted EBITDA % 16.2% 14.7% FQ2 ‘24 TAKEAWAYS ▪ End markets remain mixed globally, with continued demand improvement in EMEA ▪ Seque
Slide 10: Paper Packaging & Services (PPS) Review
Paper Packaging & Services (PPS) Review FINANCIAL PERFORMANCE ($M) Q2 FY23 Q2 FY24 Net sales $554.8 $560.8 Gross profit $131.4 $86.0 Adjusted EBITDA1 $104.9 $49.0 Adjusted EBITDA % 18.9% 8.7% FQ2 ‘24 TAKEAWAYS ▪ Improving Containerboard and URB operating rates ▪ Corrugated volumes slightly improved
Slide 11: Raising and Returning to Guidance Range
Raising and Returning to Guidance Range FISCAL 2024 EBITDA GUIDANCE ($M) KEY GUIDANCE ASSUMPTIONS Provided Provided Change Financial outlook ($M) Q1’24 Q2’24 (Midpoint) $15 - 21 $7-1 ($19 - 39) $22 - 62 Adj. EBITDA1 $610 $675 - $725 $90 $675 - 725 $40 - 70 Adj. Free Cash Flow2 $200 $175 - $225 - $61
Slide 12: Ensuring Financial Strength Through Disciplined Capital Allocation
Ensuring Financial Strength Through Disciplined Capital Allocation Growth ▪ Fund critical maintenance and safety capex to protect the business Maintenance CAPEX Maintain a Strong and ensure continuity of cash generation CAPEX Foundation ~30% ▪ Manage the balance sheet and debt levels appropriately t
Slide 13: Driving Long-Term Value Creation Through Strategic Execution
Driving Long-Term Value Creation Through Strategic Execution Utilizing the Build to Last Strategy to set up Greif for the next wave of accelerated growth ▪ Build to Last leverages our competitive advantages and core competencies to maintain our global leading positions while driving accelerated grow
Slide 14: Appendix
Fiscal Second Quarter 2024 Earnings Conference Call Appendix June 6, 2024 P.14
Slide 15: Save the Date to Host 2024 Investor Day
SAVE THE DATE TO HOST 2024 INVESTOR DAY When December 11, 2024 Convene Event Center or by Webcast Where 75 Rockefeller Plaza | New York, NY WE WILL DISCUSS: Progress made under our Build to Last Our ongoing internal Next steps on our 1 strategy since previous Investor Day to 2 transformation to alig
Slide 16: Sales Breakdown for Primary Products
Sales Breakdown for Primary Products June 6, 2024 P.16
Slide 17: GAAP to Non-GAAP Reconciliation: Net Income to Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Reconciliation of Net Income to Adjusted EBITDA 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
Slide 18: GAAP to Non-GAAP Reconciliation: Segment Operating Profit to Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Reconciliation of Segment Operating Profit to Adjusted EBITDA 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
Slide 19: GAAP to Non-GAAP Reconciliation: Adjusted Free Cash Flow
GAAP to Non-GAAP Reconciliation: Reconciliation of Adjusted Free Cash Flow 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 finan
Slide 20: 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 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 co
Slide 21: GAAP to Non-GAAP Reconciliation: Compliance Leverage Ratio and Net Debt
GAAP to Non-GAAP Reconciliation: Reconciliation of Compliance Leverage Ratio and Net Debt 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
Slide 22: GAAP to Non-GAAP Reconciliation: 2024 Adjusted Free Cash Flow Guidance
GAAP to Non-GAAP Reconciliation: Reconciliation of 2024 Adjusted Free Cash Flow Guidance 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