Greif Inc. · NYSE:GEF
Greif — Investor Presentation (September 2024)
31 slides from Greif's investor presentation, September 2024
Slide 1: Greif Inc. Investor Overview
Greif Inc. Investor Overview September 2024
Slide 2: Safe harbor
Safe harbor September 2024 P.2
Slide 3: Company Overview
Company Overview September 2024
Slide 4: Greif: Over 145 years of packaging excellence
Greif: Over 145 years of packaging excellence M AT E R I A L S O L U T I O N S REGIONS $5.2b Sales1 Containerboard Boxboard North America EMEA Steel Plastics & Other LATAM & APAC Adjusted EBITDA1 Free Cash Flow1 & Margin & Conversion ~ 250 facilities 14,000+ $819m / 15.7% $481m / 58.7% 39 countries
Slide 5: Global Industrial Packaging (GIP) Segment: A diversified, scaled global product portfolio
Global Industrial Packaging (GIP) Segment: A diversified, scaled and comprehensive global product portfolio MATERIAL SOLUTIONS REGIONS STEEL DRUMS INTERMEDIATE BULK SMALL PLASTIC CONTAINERS CONTAINERS $2.9b Sales1 PLASTIC DRUMS FIBRE DRUMS CLOSURES Global End Markets Served % of Mix Key Market Drive
Slide 6: GIP Strategy: Expanding production of resin-based products
GIP Strategy: Expanding production of resin-based products which offer significant growth upside and stronger margin profile VERTICAL GROWTH OBJECTIVE Progress under Build to Last Intermediate Bulk Quickly scale to #2 player with defined Containers (IBCs) long-term path to #1 globally Small Build gl
Slide 7: GIP Strategy: Accelerating our growth through targeted M&A
GIP Strategy: Accelerating our growth through targeted M&A Growing our business through acquisitions to provide the most comprehensive suite of product offerings globally in high performing small plastics / jerrycans 31 JERRYCAN FACILITIES 18 COUNTRIES Growing in the compelling small plastics / Lega
Slide 8: Paper Packaging & Services (PPS) Segment: An integrated and niche position
Paper Packaging & Services (PPS) Segment: An integrated and niche position in high-margin specialty product groups CONTAINERBOARD TUBES AND CORES CORRUGATED SHEETS & BOXBOARD $2.3b Sales1 PROTECTIVE PACKAGING BULK PACKAGING ADHESIVES Tube and Core End Markets Served % of Mix Key Market Drivers Paper
Slide 9: PPS Strategy: Generate earnings power through downstream converting and specialty offerings
PPS Strategy: Generate earnings power through downstream converting and specialty offerings VERTICAL GROWTH OBJECTIVE Progress under Build to Last Downstream Invest in additional high-margin Converting URB / CB converting operations Corrugated Bulk Continue to organically grow Packaging high-margin
Slide 10: The Build to Last Strategy
The Build to Last Strategy September 2024 September 2024 P.10
Slide 11: Our Purpose, Vision, and Strategy are customer-aligned and value-focused
Our Purpose, Vision, and Strategy are customer-aligned and value-focused 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 STRATEGIC CREATING THRIVING DELIVERING LEGENDARY PROTECTING ENSURING COMM
Slide 12: We have a World Class Executive Team to Execute on our Vision
We have a World Class Executive Team to Execute on our Vision CIDO VP Vivian Bouet Bill D’Onofrio September 2024 P.12
Slide 13: Build to Last: Current progress on our strategic missions
Build to Last: Current progress on 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 50+% of sites value through a through improved 15th
Slide 14: Our culture creates a competitive advantage
Our culture creates a competitive advantage CREATING THRIVING COMMUNITIES DELIVERING LEGENDARY CUSTOMER SERVICE 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
Slide 15: Sustainability is embedded in our company DNA
Sustainability is embedded in our company DNA PROTECTING OUR FUTURE 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 • Initiative
Slide 16: Our long-term financial targets under Build to Last
ENSURING Our long-term financial targets under Build to Last FINANCIAL STRENGTH Annual EBITDA Long-term EBITDA growth margin expansion1 Target free cash flow conversion goal FINANCIAL Mid-single 100 to 150 Over 50% TARGETS digits basis points C A P I TA L D E P L O Y M E N T CORE EARNINGS DRIVERS ▪
Slide 17: Evolving Our Organization to Better Pursue Market-Aligned Growth
We Are in the Process of Evolving Our Organization to Better Pursue Market-Aligned Growth and Maximize Effectiveness of our Business System Core Material Solution Verticals Underlying Products POLYMERS METALS PAPER INTEGRATED PRODUCTS LAND Boxboard and Small Plastics Steel Closures and Accessories L
Slide 18: Our Portfolio Transformation Continues to Obtain a Larger Polymer-Based Product Mix
Our Portfolio Transformation Continues to Obtain a Larger Polymer-Based Product Mix with Strong Secular Growth & Margins Sales Dollars by Material Solution POLYMERS METALS C-BOARD B-BOARD FIBRE OTHER ~10% ~20% ~15% FY 2015 FY 2022 FY 2024 YTD Our investments in polymer-based products are EBITDA & FC
Slide 19: Ensuring Financial Strength Through Disciplined Capital Allocation
Ensuring Financial Strength Through Disciplined Capital Allocation ▪ Fund critical maintenance and safety capex to protect the business Growth and ensure continuity of cash generation Maintenance CAPEX Maintain a Strong ▪ Manage the balance sheet and debt levels appropriately CAPEX Foundation throug
Slide 20: GBS 2.0 creates value through continuous improvement
GBS 2.0 creates value through continuous improvement Our GREIF BUSINESS SYSTEM 2.0 MARKET EXCELLENCE creates a competitive advantage EXECUTION EXCELLENCE Enhancing our continuous improvement culture OPERATIONAL EXCELLENCE Optimizing global shared resources CAPITAL EXPENDITURE & ENGINEERING EXCELLENC
Slide 21: Creating long-term value under Build to Last
Creating long-term value under Build to Last CORE BUSINESS STRENGTH ▪ Scalable global franchises 1 BALANCED ▪ World-renowned brand and quality ▪ Rich history of service culture GROWTH ▪ Highly cash-generative assets BUILD TO LAST PRIORITIES ▪ Transform customer interface THE ▪ Operational automation
Slide 22: 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 23: Current Business Trends – Fiscal Third Quarter 2024
Current Business Trends – Fiscal Third Quarter 2024 September 2024 September 2024 P.23
Slide 24: Global Markets: Capturing Value Through Customer Relationships
Global Markets: Capturing Value Through Customer Relationships Regional volume performance (year-over-year) and current market trends Our core competitive advantage of legendary customer service is resulting in outperformance when demand recovers North GIP 0.5% America PPS 2.9% EMEA 8.6% ▪ GIP: Mixe
Slide 25: Reaffirming Fiscal 2024 Guidance
Reaffirming Fiscal 2024 Guidance FISCAL 2024 GUIDANCE ($M) KEY GUIDANCE ASSUMPTIONS Provided Provided Change Q2’24 Q3’24 (Midpoint) Financial assumptions ($M) 1 Adjusted EBITDA Range DD&A $260 - $270 $260 - $270 $- $675 – $725 Adj. Capital expenditures Cash interest expense $175 - $195 $138 - $144 $
Slide 26: Appendix: Non-GAAP Reconciliations
Non-GAAP Reconciliations Appendix September 2024 P.26
Slide 27: Reconciliation of 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 28: Reconciliation of 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 29: Reconciliation of 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 30: Reconciliation of 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 31: Reconciliation of 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