Slide 1: September 2020 Investor Presentation
September 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
Who we are September 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 FYTD (through Q3) 2020 Performance ($M) Highlights and capabilities Differentiations Revenue $3,353.7 • Leading product positions in • Demonstrated commitment to multiple
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: How we operate
How we operate September 2020 – P.6
Slide 7: Supporting stakeholders during the COVID-19 pandemic
Who we are How we operate Why invest in Greif? Business segment overview Appendix Supporting stakeholders during the COVID-19 pandemic Colleagues Customers Communities The health and safety of our global Responding to customer needs in Leveraging operational skills and colleagues is our #1 priority
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 September 2020 – P.8
Slide 9: Greif's purpose, vision and strategic priorities
Who we are How we operate Why invest in Greif? Business segment overview Appendix Greif’s purpose, vision and 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
Slide 10: 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 4.2 Manufacturing sector 4.17 percentile ranking 89th 17% Higher
Slide 11: 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 = 61 80 6 26 67 70 60 Wave 1 50 11 38 51 = 40 40 30 FY15 FY16 FY17 FY18
Slide 12: 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 Innovating and adapting virtually through the Greif Business System September 2020 – P.12
Slide 13: 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 2019 2020 Join UN Global Achieved an Achieved an “A” Rated as PRIME by Compact “A- Leadership” MSCI ESG rating ISS ESG Corporate 2017 CDP score Rating
Slide 14: Strategic priority: 2019 sustainability report highlights
Who we are How we operate Why invest in Greif? Business segment overview Appendix 3 Strategic priority: 2019 sustainability report highlights E Environment • • • 4.5 million containers reconditioned and recycled 31 facilities achieved zero waste landfill status. Diverted 85% of waste from going to l
Slide 15: Strategic priority: operationalizing sustainability
Who we are How we operate Why invest in Greif? Business segment overview Appendix 3 Strategic priority: operationalizing sustainability Net positive recycler in Paper Packaging Rigid and Flexible Packaging highlights GREIF Recovered Fiber 35+ Reconditioning facilities in North America and Europe Col
Slide 16: Why invest in Greif?
Why invest in Greif? September 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 Details Greif Actions • Emerging economies driving • Optimize capacity to serve increased demand Growth of emerging economies greater consumption of goods and from emer
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 Share1: guidance provided versus actual results $4.50 $4.00 $3.50 Guidance temporarily withdrawn $3.00 $2.50 $2.00 $1.50 Q2 Q3 ACT Beg Q1 Q2 Q3
Slide 20: Volume demand trends are improving in RIPS
Who we are How we operate Why invest in Greif? Business segment overview Appendix Volume demand trends are improving in RIPS Global steel drum volume YoY Q3'20 May '20 June '20 July '20 0% -5% -10% -15% -20% • Positive demand for food, flavors and fragrances • Negative but improving demand for bulk
Slide 21: Volume demand trends are improving in PPS
Who we are How we operate Why invest in Greif? Business segment overview Appendix Volume demand trends are improving in PPS CorrChoice YoY volume comparisons IPG (tube / core) YoY volume comparisons Q3'20 May '20 June '20 July '20 Q3'20 May '20 June '20 July '20 20% 0% 15% -5% 10% 5% -10% 0% -15% -5
Slide 22: Clear capital allocation priorities are in place
Who we are How we operate Why invest in Greif? Business segment overview Appendix Clear capital allocation priorities are in place 1 Reinvest in • Fund maintenance to sustain cash generation and advance organic growth opportunities that the business exceed required returns 2 • Current compliance lev
Slide 23: Solid balance sheet and liquidity profile
Who we are How we operate Why invest in Greif? Business segment overview Appendix Solid balance sheet and liquidity profile Debt schedule as of 7/31/2020 ($M) $1,400 Key liquidity statistics • Covenant net debt to EBITDA requirement = $1,200 4.50x; GEF currently 3.72x (Q3’20) • ~80% of debt is fixed
Slide 24: Anticipate significant EBITDA and FCF Expansion
Who we are How we operate Why invest in Greif? Business segment overview Appendix Anticipate significant EBITDA and FCF Expansion FY’22 Adj. FY’22 Adj. Free Path to 2022 Adjusted EBITDA ($M) $M EBITDA1 Cash Flow2 $1,000 RIPS $288 – $315 $820 - $900 $800 PPS $490 – $530 $600 $503.2 FPS $30 – $40 $400
Slide 25: Why invest in Greif?
Who we are How we operate Why invest in Greif? Business segment overview Appendix Why invest in Greif? Compelling customer value Robust and diverse product Numerous avenues for Compelling dividend and proposition due to portfolio with exposure to a incremental low-risk growth opportunity for free ca
Slide 26: Business segment overview
GREIF PACKAGING SUCCESS TOGETHER™ Business segment overview
Slide 27: RIPS: broad product and services capability
Who we are How we operate Why invest in Greif? Business segment overview Appendix RIPS: broad product and services capability Steel Fibre Closures Plastic #1 #1 #1 #2 IBC Earth Minded Filling #3 RIPS is the most comprehensive customer solutions provider in the industry Note: Ranking denotes standing
Slide 28: RIPS: highlights and differentiation
Who we are How we operate Why invest in Greif? Business segment overview Appendix RIPS: highlights and differentiation 2019 Financials ($M) Highlights and Capabilities Differentiation Revenue $2,490.6 • Extensive global expertise and • Industry’s most comprehensive operational footprint product line
Slide 29: RIPS: expanding reconditioning for sustainable solutions
Who we are How we operate Why invest in Greif? Business segment overview Appendix RIPS: expanding reconditioning for sustainable solutions Reconditioning overview Greif today Greif future state • Benefits to customers: • Operate services to facilitate • Closed loop network in place in collection and
Slide 30: RIPS: Favorable end market growth for plastics
Who we are How we operate Why invest in Greif? Business segment overview Appendix RIPS: Favorable end market growth for plastics Industry IBC sales by end market (CAGR ‘19 – ‘24)1 Key end markets drive packaging sales 6.8% Denotes the size of the end market relative to global IBC Sales 6.6% 3 • Chem
Slide 31: PPS: broad portfolio offering a variety of paper products
Who we are How we operate Why invest in Greif? Business segment overview Appendix PPS: broad portfolio offering a variety of paper products Mills Containerboard Uncoated Recycled Coated Recycled Paperboard Paperboard Recovered Fiber C #2 #3 Converting Corrugated Tube & Core Products #2 Note: Ranking
Slide 32: PPS: highlights and differentiation
Who we are How we operate Why invest in Greif? Business segment overview Appendix PPS: highlights and differentiation 2019 Financials ($M) Highlights and Capabilities Differentiation Revenue $1,780.0 • Niche position in containerboard • Speed – response and lead times Adjusted EBITDA1 $348.3 • Leade
Slide 33: PPS: Caraustar integration proceeding on plan
Who we are How we operate Why invest in Greif? Business segment overview Appendix PPS: Caraustar integration proceeding on plan Anticipated synergy over 36 months ($M) Caraustar run-rate synergy detail $75 $70 Transport / Logistics $65 Procurement / $60 Materials Operational $55 Enhancements $50 $45
Slide 34: PPS: expanded, integrated and national paper network
Who we are How we operate Why invest in Greif? Business segment overview Appendix PPS: expanded, integrated and national paper network Containerboard Corrugated ~1M tons Network of sheet Packaging feeders Industry Uncoated Boxboard Tubes & Cores Recovered ~700K tons converting plants Various Fiber G
Slide 35: PPS: Boxboard industry capacity reduction
Who we are How we operate Why invest in Greif? Business segment overview Appendix PPS: Boxboard industry capacity reduction URB Capacity1 (k tons) CRB Capacity1 (k tons) 2700 2250 2650 2200 2150 2600 2100 2550 2050 2500 2000 2450 1950 2400 1900 2350 1850 2014 2015 2016 2017 2018 2019 2020 2014 2015
Slide 36: PPS: IPG benefits from diverse end markets
Who we are How we operate Why invest in Greif? Business segment overview Appendix PPS: IPG benefits from diverse end markets • IPG’s diversified end market revenue provides broad Tube/core revenue by end market1 exposure to US economic activity Paper Mill Film • Tube/core market offers limited risk
Slide 37: FPS: global market leader with superior capabilities
Who we are How we operate Why invest in Greif? Business segment overview Appendix FPS: global market leader with superior capabilities 1&2 loop bag 4 loop bag Reconditioning Container liners 1-Loop 2-Loop #1 #1 #1 North America FPS is the largest FIBC producer in the world and offers the most compre
Slide 38: FPS: highlights and differentiation
Who we are How we operate Why invest in Greif? Business segment overview Appendix FPS: highlights and differentiation 2019 Financials ($M) Highlights and Capabilities Differentiation Revenue $297.5 • Leading position in highly • Exceptional technical capabilities fragmented market and differentiated
Slide 39: Appendix and required reconciliation tables
Appendix and required reconciliation tables
Slide 40: 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 September 2020 – P.40
Slide 41: 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 (1)Adjusted free cash flow is defines as net cash provided by operating activities, plus cash paid for acquisition-related costs, plus cash paid for
Slide 42: 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 % September 2020 – P.42
Slide 43: 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 % September 2020 – P.43
Slide 44: 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 45: 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 46: Q3 Price, Volume and Foreign Currency Impact to Net Sales for Primary Products
Who we are How we operate Why invest in Greif? Business segment overview Appendix Q3 Price, Volume and Foreign Currency Impact to Net Sales for Primary Products: NOTES: (1) Primary products are manufactured steel, plastic and fibre drums; IBCs (new and reconditioned); containerboard, corrugated shee
Slide 47: 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 48: Credit Agreement Adj. EBITDA & Leverage Ratio
Who we are How we operate Why invest in Greif? Business segment overview Appendix Credit Agreement Adj. EBITDA & Leverage Ratio September 2020 – P.48
Slide 49: GAAP to Non-GAAP reconciliation: Net Income to Adjusted EBITDA
Who we are How we operate Why invest in Greif? Business segment overview Appendix GAAP to Non-GAAP reconciliation: Reconciliation of Net Income to Adjusted EBITDA September 2020 – P.49
Slide 50: 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 September 2020 – P.50