Greif Inc. · NYSE:GEF
Greif — Investor Presentation (July 2021)
28 slides from Greif's investor presentation, Jul 20, 2021
Slide 1: Investor Presentation July 2021
GREIF PACKAGING SUCCESS TOGETHER™ Investor Presentation July 2021
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 FY20 Net Sales by Segment Highlights & Capabilities + Leading product positions in multiple packaging substrates = Global Industrial Packaging + Extensive geographic portfolio (presence in 40+ countries) with wide market reach Paper Packagin
Slide 4: Evident step change in performance and free cash flow
Evident step change in performance and free cash flow Net Sales Growth (sin Bitions) Adjusted EBITDA (sin mitions) $46 $45 $659 $643 3 $3.9 $50. $3.6 $3.6 $394 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Adjusted Free Cash Flow! (sin mitions) Class A Dividend (sis) $346 $1.76 $1.76 a
Slide 5: Well positioned to capitalize on external growth drivers
Well positioned to capitalize on external growth drivers ‘it Global growth recovery post COVID; Ongoing growth in emerging markets v Extensive reach with operations in > 40 countries v Leading producer of steel / plastic / fibre drums; rigid / flexible intermediate bulk containers; industrial closur
Slide 6: FY2021 outlook demonstrates further improvement
FY2021 outlook demonstrates further improvement Adj. Class A EPS (actual and outlook)? $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 = $2.00 | $1.50 $1.00 $0.50 $0.00 —_— 1 FY15 FY16 PACKAGING rREIF success TOGETHER™ [] \ FY17 FY18 FY19 FY20 FY21 outlook Financial outlook ($/sh, $M) FY 2021 Adj. Class A EPS*
Slide 7: Solid volume performance in key substrates in FQ3 to date
Solid volume performance in key substrates in FQ3 to date FQ3 ‘21 vs. FQ3 ‘20 volume snapshot (per day basis)* 40% 35% 30% 25% 20% 15% 10% 5% 0% Steel drums Gui iE Containers Corrugated sheets Tube / cores ‘QS refers to May and June actual volume performance ona per day basis PACKAGING | SUCCESS TOG
Slide 8: Three part capital deployment strategy
Three part capital deployment strategy Reinvest in the business Return cash to shareholders De-lever the balance sheet v Fund maintenance to sustain the “cash machine” yv Remain committed to regular capital returns and v Transfer enterprise value from debt-to-equity and organic growth opportunities
Slide 9: Grounded in purpose, vision and three strategic priorities
Grounded in purpose, vision and three strategic priorities Purpose strial packaging, be the best performing wisicn istomer service company in the world Engaged Teams Differentiated Customer Service Enhanced Performance + Bestin class health and safety + Deliver Superior customer + Value driven growt
Slide 10: An organization focused on winning and built on culture
An organization focused on winning and built on culture A values-based culture built upon With industry leading colleague And a vision to serve customers with Servant Leadership... engagement... excellence... Greif’s Global Team Behaviors Gallup Engagement Score Customer Satisfaction Index’ Communic
Slide 11: Elevating ESG to further enhance business performance
Elevating ESG to further enhance business performance cy Environmental ey 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
Slide 12: Compelling investment thesis and strong track record
Compelling investment thesis and strong track record \3 Compelling customer value propo: n due to demonstrated commitment to customer service Robust and diverse product portfolio with exposure to a variety of end markets globally v Leading producer of steel / plastic / fibre drums; rigid / flexible
Slide 13: Business Segment Overview
Business Segment Overview
Slide 14: Global Industrial Packaging (GIP) Segment Overview
Global Industrial Packaging (GIP) Segment Overview FY20 Net Sales by Product / Geography / End Market =N. America =L. America * Steel ' « Large / Med Plastic \ = Fibre —— “IBC B = EMEA #182 Loop FIBC = 4 Loop FIBC _ \ 3 + Asia Pacific * Other | = Petrol Prod, Lube Oils & Adds. = Specialty chemicals
Slide 15: GIP: segment strategy focused on execution and growth
GIP: segment strategy focused on execution and growth Utilize GBS to enhance underperforming “Pivot to Plastic” and grow IBC Protect the core A assets portfolio Maintain leadership positions in steel, fibre Pursue plans / actions to improve assets Expand IBC and IBC reconditioning and FIBCs and inno
Slide 16: GIP: track record of improving business results
GIP: track record of improving business results GIP Adj. EBITDA‘ Margin Expansion Operational excellence and commercial execution underpinning margin expansion: C i26% 9 v Enhanced price / product mix management ap — Improved pricing realization and price adjustment mechanism ap (PAM) execution — Fu
Slide 17: GIP: pivot to plastic and grow IBC portfolio
GIP: pivot to plastic and grow IBC portfolio + IBCs are the fastest growing industrial packaging substrate and offer numerous advantages - Ease of movement and discharge — Greater space efficiency - Greater durability and product strength — Enhances sustainability (circularity / PCR) + Greif’s strat
Slide 18: Paper Packaging & Services (PPS) Segment Overview
Paper Packaging & Services (PPS) Segment Overview FY20 Net Sales by Product & Geography = Mills Corrugated sheets Box Board Products oy) = Tube / cores = North America PACKAGING SUCCESS TOGETHER™ CY Highlights & Capabilities + Niche position in containerboard and CRB; strong position in URB and tube
Slide 19: PPS: segment strategy focused on integration and growth
PPS: segment strategy focused on integration and growth Capitalize on sustainable Integrate and Boost containerboard Grow specialty Raging achieve Caraustar synergies integration products Packaging e-commerce trends Complete Caraustar integration, Through new Palmyra sheet feeder Growth in higher ma
Slide 20: Appendix
Appendix
Slide 21: Substantial increase in Free Cash Flow on the horizon
Substantial increase in Free Cash Flow on the horizon FY ‘22 Adj. FY ‘22 Adj. EBITDA’ Free Cash Flow? GIP $342 — $379 PPS $437 — $477 Land $6 -—$9 Total Company $785 — $865 $410 — $450 FY 2022 commitments assume a 2018 like economy (1) Noreconciaion ofthe fiscal yea 2022 Adjusted EBITDA, 2 non-GAAP
Slide 22: ESG: Key targets and recognition
ESG: Key targets and recognition 25% Increase in proportion of women in management by the end of FY25 90% Waste diverted from landfills from all legacy Greif production facilities by the end of FY25 1 0% Reduction in BOD discharged in kilograms per metric ton of production by the end of FY25 28% Red
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation: Segment and Consolidated Financials: Operating Profit to Adjusted EBITDA GREIF PACKAGING SUCCESS TOGETHER™ Twelve Months Ended October 31, tions). FT a ‘Global Indastal Packaging Operating prot 498 12841959026 2S SM Less: Non<ash pension setlement charge : : 168 13 .
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation: Reconciliation of Segment Operating Profit to Adjusted EBITDA Three Months Ended April 30, (in millions) 2018 2019 2020 2021 Global Industrial Packaging Operating profit 522 582 5A 764 Less: Other (income) expense, net 22 33 13 28 Less: Non-cash pension settlement ch
Slide 25: 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 Net cash provided by operating activities 206.3 301.0 305.0 253.0 3895 454.7 Cash paid for purchases of properties, plants and equipment (135.8) (100.1) (96.8) (140.2)
Slide 26: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation: Historical Net Income and Class A Earnings Per Share Excluding Adjustments “ = = «9 PACKAGING SUCCESS TOGETHER™ July 19, 2021 | P.26
Slide 27: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation Projected 2021 guidance reconciliation for Adjusted Free Cash Flow fin millions) ‘Net cash provided by operating activities $ 407.0 ‘Cash paid for purchases of properties, plants and equipment (039.0) Free cash flow $ 268.0 ‘Cash paid for acquisition and integration r
Slide 28: Fiscal 2022 Financial Commitments Assumptions
Fiscal 2022 Financial Commitments Assumptions = Net sales will be approximately $5.0B in FY22 reflecting a 2018 like economy with the impacts of both the COVID-19 pandemic and the industrial recession in place pre-COVID fully behind us = Raw material costs increase slightly against current indices i