Greif Inc. · NYSE:GEF
Greif — Investor Presentation (February 2024)
21 slides from Greif's investor presentation, February 2024
Slide 1: Greif Discussion Materials
Greif Discussion Materials February 2024
Slide 2: Safe harbor
Safe harbor February 9, 2024 P.2
Slide 3: Greif: Over 145 years of packaging excellence
Greif: Over 145 years of packaging excellence SUBSTRATES REGIONS $5.2b Sales1 Containerboard Boxboard North America EMEA Steel Plastics & Other LATAM & APAC Adjusted EBITDA1 Free Cash Flow1 & Margin & Conversion 245+ facilities 13,000+ $819m / 15.7% $481m / 58.7% 35+ countries colleagues LARGE STEEL
Slide 4: Build to Last: Pursuing Our Purpose, Vision and Strategy
Build to Last: Pursuing Our Purpose, Vision and Strategy 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 FUTU
Slide 5: Global Industrial Packaging (GIP): Diversified and scaled
Global Industrial Packaging (GIP): Diversified and scaled SUBSTRATES REGIONS $2.9b 1 STEEL DRUMS INTERMEDIATE BULK SMALL PLASTIC Sales CONTAINERS CONTAINERS PLASTIC DRUMS FIBRE DRUMS CLOSURES Steel Plastics & Other North America EMEA LATAM & APAC Global End Markets Served % of Mix Key Market Drivers
Slide 6: GIP Strategy: Expand base of resin-based products
GIP Strategy: Expand base of resin-based products which offer significant growth upside and stronger margin profile Progress under Build to Last Vertical Growth Objective Quickly scale to #2 player with 1 IBCs defined long-term path to #1 globally Small Build global network of small plastics Plastic
Slide 7: Paper Packaging & Services (PPS): Integrated and niche
Paper Packaging & Services (PPS): Integrated and niche CONTAINERBOARD TUBES AND CORES CORRUGATED SHEETS & BOXBOARD $2.3b Sales1 PROTECTIVE BULK PACKAGING ADHESIVES PACKAGING Tube and Core End Markets Served % of Mix Key Market Drivers Paper industry Containerboard Boxboard 22% 1. E-commerce growth a
Slide 8: PPS Strategy: Drive earnings growth through specialty offerings and downstream converting
PPS Strategy: Drive earnings growth through specialty offerings and downstream converting Progress under Build to Last Vertical Growth Objective Downstream Invest in additional high-margin Cincinnati Adhesives Converting URB / CB converting operations Corrugated Bulk Continue to organically grow Pac
Slide 9: Build to Last: 2023 Achievements against our strategic missions
Build to Last: 2023 Achievements against our strategic missions CREATING THRIVING DELIVERING LEGENDARY PROTECTING ENSURING COMMUNITIES CUSTOMER SERVICE OUR FUTURE FINANCIAL STRENGTH Embrace a low- Create enhanced carbon future Achieve Zero Harm Customer 14th Annual 50+% of sites value through a Deli
Slide 10: Build to Last: Accelerating our growth through targeted M&A
Build to Last: Accelerating our growth through targeted M&A Growing our business through acquisitions to provide the most comprehensive suite of products offerings globally in high performing small plastics / jerrycans 31 JERRYCAN FACILITIES 18 COUNTRIES Growing in the compelling Greif small plastic
Slide 11: Build to Last: Portfolio transformation underway for more balanced substrate mix
Build to Last: Portfolio transformation underway for more 1,2 balanced substrate mix FAV O R A B L E E N D 2022 2023+ MARKET EXPOSURES GIP EBITDA by Agriculture Segment PPS Specialty Chemicals US EBITDA by EMEA Geography APAC & Other Americas Flavors & Fragrances Resin EBITDA by Steel Substrate Phar
Slide 12: Build to Last: Ensuring financial strength through disciplined capital allocation
Build to Last: Ensuring financial strength through disciplined capital allocation ▪ Fund critical maintenance and safety capex to protect the Maintenance Maintain a Strong business and ensure continuity of cash generation CAPEX Foundation ~40% ▪ Manage the balance sheet and debt levels appropriately
Slide 13: Build to Last: Pursuing our Long-Term Financial Targets
Build to Last: Pursuing our Long-Term Financial Targets Annual EBITDA Long-term EBITDA Financial growth margin expansion Target free cash flow conversion goal targets Mid-single 100 to 150 Over 50% digits basis points C A P I TA L D E P L O Y M E N T CORE EARNINGS DRIVERS ▪ $150M share repurchase pr
Slide 14: FY 2023 review and FY 2024 low-end guidance
FY 2023 review and FY 2024 low-end guidance FISCAL 2023 RESULTS FISCAL 2024 LOW-END GUIDANCE FY 2023 FY 2024 Financial Highlights ($M) Financial outlook ($M) Actual Guidance Net Sales $5,219m Adj. EBITDA4 $585m Adj. Free Cash Flow5 $200m Adj. EBITDA1 $819m Modeling financial assumptions ($M) Adj. EB
Slide 15: Driving Long-Term Value Creation through Build to Last
Driving Long-Term Value Creation through Build to Last Advancing our Growth strategy through organic growth investments and disciplined M&A ▪ Allocated over $1b of capital to portfolio-enhancing acquisitions in FY 20231 ▪ Funding high-impact organic growth projects in our key converting operations S
Slide 16: Appendix
Greif Discussion Materials February 2024 Appendix February 9, 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: Compliance Leverage Ratio
GAAP to Non-GAAP Reconciliation: Reconciliation of Compliance Leverage Ratio 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 fin
Slide 21: 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