Slide 1: Second Quarter Fiscal 2023 Earnings Conference Call
Second Quarter Fiscal 2023 Earnings Conference Call June 8, 2023
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: 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: Second Quarter Fiscal Year (FY) 2023 Key Highlights
Second Quarter Fiscal Year (FY) 2023 Key Highlights • Strong execution and business model resilience in Q2 2023 ‒ Adj. EBITDA1 of $228.6M ‒ Adj. Free Cash Flow1 of $185.5M ‒ Adj. Class A EPS1 of $1.77/share • Driving our Build to Last strategy in a tough environment ‒ Effective working capital manag
Slide 5: Global Industrial Packaging (GIP) Review
Global Industrial Packaging (GIP) Review FINANCIAL PERFORMANCE ($M) Q2 FY22 Q2 FY23 Net sales $971.7 $748.2 Gross profit $185.3 $177.9 Adjusted EBITDA1 $130.9 $121.2 Adjusted EBITDA % 13.5% 16.2% FQ2 ‘23 takeaway ▪ Volumes at a low level in all substrates in a very challenging demand environment; AP
Slide 6: Paper Packaging & Services (PPS) Review
Paper Packaging & Services (PPS) Review FINANCIAL PERFORMANCE ($M) Q2 FY22 Q2 FY23 Net sales $689.3 $554.8 Gross profit $150.8 $131.4 Adjusted EBITDA1 $117.4 $104.9 Adjusted EBITDA % 17.0% 18.9% FQ2 ‘23 takeaway ▪ Lower mill volumes continued to pressure results but improved sequentially with 77k to
Slide 7: Fiscal Q2'23 vs. Fiscal Q2'22: Financial Comparison
Fiscal Q2’23 vs. Fiscal Q2’22: Financial Comparison Financial Performance ($M, $/sh) Q2 Q2 FY22 FY23 Net sales $1,667.3 $1,308.9 Gross profit $338.7 $311.8 SG&A $147.4 $137.2 Adjusted EBITDA1 $251.0 $228.6 Adj. Capital expenditures $29.2 $40.8 Adj. Free Cash Flow1 $114.8 $185.5 Adj. Class A Earnings
Slide 8: FY 2023 Guidance and Financial Assumptions
FY 2023 Guidance and Financial Assumptions Prior Low-End Current Guidance Change Financial outlook ($M) Guidance (Q1’23) Range (Q2’23) Q1 Low to Q2 Mid Adj. EBITDA1 $740 $780 - 830 $65 Adj. Free Cash Flow2 $370 $390 - 440 $45 Financial assumptions ($M) DD&A $230 $226 - $230 ($2) Adj. Capital expendi
Slide 9: Long-term Capital Deployment Objectives
Long-term Capital Deployment Objectives Maintain target leverage ratio excl. M&A Diversify and enhance shareholder return Invest back into business for growth Regular and increasing dividend 3.00x $0.75 GEF B Compliance 2.75x $0.50 2.50x Maintenance GEF A 2.25x 1 Completed share repurchase program 2
Slide 10: Thank you.
Second Quarter Fiscal 2023 Earnings Conference Call Thank you. June 8, 2023 P.10
Slide 11: Appendix
Second Quarter Fiscal 2023 Earnings Conference Call Appendix June 8, 2023 P.11
Slide 12: Greif Investor Day: Key Messages
Greif Investor Day: Key Messages June 8, 2023 P.12
Slide 13: Fiscal Q2'23 Sales Breakdown for Primary Products
Fiscal Q2’23 Sales Breakdown for Primary Products June 8, 2023 P.13
Slide 14: 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 15: 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.15
Slide 16: 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.16
Slide 17: 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.17
Slide 18: GAAP to Non-GAAP Reconciliation: Adjusted Free Cash Flow
GAAP to Non-GAAP Reconciliation: Reconciliation of Adjusted Free Cash Flow June 8, 2023 P.18
Slide 19: GAAP to Non-GAAP Reconciliation: Net Debt
GAAP to Non-GAAP Reconciliation: Reconciliation of Net Debt June 8, 2023 P.19
Slide 20: GAAP to Non-GAAP Reconciliation: Compliance Leverage Ratio
GAAP to Non-GAAP Reconciliation: Reconciliation of Compliance Leverage Ratio June 8, 2023 P.20
Slide 21: 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.21