2015 Investor Day The Path of Transformation...2015 Investor Day The Path of Transformation Name:...

2015 Investor DayThe Path of Transformation

Name: Scott GriffinTitle: Vice President, Corporate Communications

www.Greif.comJanuary 21, 2015

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Safe HarborForward-Looking Statements

All presentations contain certain forward-looking information within the meaning of the Private SecuritiesLitigation Reform Act of 1995. The words “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,”“aspiration,” “objective,” “project,” “believe,” “continue,” “on track” or “target” or the negative thereof andsimilar expressions, among others, identify forward-looking statements. All forward-looking statementsare based on information currently available to management. Such forward-looking statements aresubject to certain risks and uncertainties that could cause events and the Company’s actual results todiffer materially from those expressed or implied. Please see the disclosure regarding forward-lookingstatements immediately preceding Part I of the Company’s Annual Report on the most recently filedForm 10-K. The company assumes no obligation to update any forward-looking statements.

Regulation G

These presentations may include certain non-GAAP financial measures like EBITDA and othermeasures that exclude special items such as restructuring and other unusual charges and gains that arevolatile from period to period. Management of the company uses the non-GAAP measures to evaluateongoing operations and believes that these non-GAAP measures are useful to enable investors toperform meaningful comparisons of current and historical performance of the company. All non-GAAPdata in the presentation are indicated by footnotes. Tables showing the reconciliation between GAAPand non-GAAP measures are available at the end of this presentation and on the Greif website atwww.greif.com.

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Agenda

9:00 AM Welcome and Opening Comments Scott Griffin, VP Communications

9:05 AM A message on Strategy and Direction David Fischer, President and CEO

9:30 AM The Transformation Roadmap Pete Watson, COO

9:50 AM Business Unit Overviews

RIPS Europe Ivan Signorelli, Global President, EMEA

RIPS North America Darren Cherry, Division President

Break

Flexible Product and Service Dano Lister, Division President

Paper Packaging and Services Tim Bergwall, Division President

11:10 AM Transformation Metrics and Aspirations Larry Hilsheimer, CFO

11:30 AM Questions and Answers All

12:00 PM Closing Comments David Fischer, President and CEO

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Please TEXT or EMAIL us your Questions…

TEXT: 740-417-3727

Email : [email protected]

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Fiscal 2014 – 2015 EBITDA Bridge(Dollars in millions)

$44.9

395.6

462.2 499.9

$429.9

37.7 (43.2)

(26.8)

350.7

66.6

FY2014Net Income

Interest,Taxes

and DD&A

FY2014EBITDA

SpecialItems

FY2014EBITDA

ExcludingSpecial Items

Non-RecurringItems

FY2014EBITDA

ExcludingSpecial Items &

Non-Recur. Items

CurrencyImpacts

OperationalImpacts

FY2015ForecastEBITDA

ExcludingSpecial Items

1 EBITDA is defined as net income plus interest expense, net, plus income tax expense, less equity earnings of unconsolidated subsidiaries, net of tax plus depreciation, depletion and amortization.

2 A summary of all special items that are included in EBITDA before special items is set forth in the Appendix to this presentation.

Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly comparable GAAP financial measures is included in the Appendix to this presentation.

(1) (2)

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Fiscal 2015 Free Cash Flow Bridge(Dollars in millions)

$430

$80 - $1202 - (8)

(150)

(82)

(80)

0 - (30)

FY2015EBITDA

ExcludingSpecialItems

CapitalExpenditures

CashInterest

CashTaxes

Change inOperatingWorkingCapital

Rounding toProvide

ConservativeRange

FY2015FCF

ExcludingTimberland

Transactions

1 EBITDA is defined as net income plus interest expense, net, plus income tax expense, less equity earnings of unconsolidated subsidiaries, net of tax plus depreciation, depletion and amortization.

2 A summary of all special items that are included in EBITDA before special items is set forth in the Appendix to this presentation.

3 Free cash flow excluding timberland transactions is defined as net cash provided by operating activities less capital expenditures and acquisitions of companies, net of cash acquired, plus proceeds from sales of properties, plants, equipment, businesses, and other assets.


(1, 2) (3)

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Free Cash Flow and Dividends Paid(Dollars in millions)

2009 2010 2011 2012 2013 2014

Free Cash Flow After Purchases of PP&E $141.8 $34.0 $9.8 $307.3 $113.9 $123.9

Dividends Paid 88.0 93.1 97.8 97.7 98.3 98.6

Free Cash Flow After Purchases of PP&E / Dividends Paid 1.6x 0.4x 0.1x 3.1x 1.2x 1.3x

1 Free cash flow after purchases of PP&E is defined as net cash provided by operating activities less purchases of properties, plants and equipment.

2 Dividends paid represents cash payments to Class A and Class B shareholders of Greif, Inc. in each fiscal year, respectively.


(1)

(2)

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Greif Debt Ratios vs. Industry Peer Group Averages

IndustryPeer Group Average(1)

GreifFiscal 2013(1)

GreifFiscal 2014

GreifForecast

2015

Net Debt(2)

/EBITDA2.5X 2.4X 2.3X 2.5X

Total Debt/Capital 58% 48% 49% 48%

1 Provided from a respected industry analyst’s report, permission granted to use the information without attribution, the data was compiled under CFA guidelines from publicly available information.

2 Net debt represents long-term debt plus the current portion of long-term debt plus short-term borrowings less cash and cash equivalents.



Name: David FischerTitle: President & CEO


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Quick Facts

1 Founded in 1877 as a packaging company

2 $4.24 billion in sales and ~13,500 employees

3 Initial public offering in 1926

5 Leading industrial packaging company

4 Diversified business platform

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Greif serves diverse end markets such as chemicals, paints and pigments, food and beverage, petroleum,

adhesives, industrial coatings, agricultural, pharmaceutical, minerals and building products

$4.241

Rigid Industrial Packaging & Services

$3.0771

Flexible Products& Services

Paper Packaging

Land Management

$4261 $7071 $331

$4.24 BillionNet sales for 12 months ended October 31, 2014

250Nearly 250 operations>50

Operations in more than 50 countries

13,500Approximate number of employees worldwide

Diversified Business Platform and Global Footprint

1Twelve months ended October 31, 2014

World’s Leading Industrial Packaging Company

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Why Customers Choose Greif ?

“the safe choice”

Global Supply NetworkWith nearly 250 operations

around the world, our

customers get the guarantee to

receive their orders on time

and in full from an alternative

Greif facility in case of urgency.

Production ExcellenceWith widely standardized

processes across the world we

strive to eliminate risk of

failure. Continuous focus on

lean manufacturing and high

quality products & services.

The Greif WayWe are fair, ethical and honest.

We keep our employees safe

and do not depart from our

quality standards. You can

trust our word.

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You can trust us…

Greif picked for Forbes magazine’s “America’s 100 Most Trustworthy Companies”

http://www.forbes.com/sites/kathryndill/2014/03/18/americas-100-most-trustworthy-companies/

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Greif is progressing on innovation

Innovation Fueling Growth

Innovation Fueling Growth

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One Promise

One Team

One Purpose

Deliver value that meets and exceeds our

customers’ needs

Work as one team across all geographies and businesses

The global leader in industrial packaging

Long-term profitable

growth

Greif Aspiration

The Safe Choice – Best at Protecting Customers’ Products

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• Rewarding our shareholders

• Rewarding our shareholders

• 2003-2005• GBS Transformation

launched in 2003• Obtained remaining

CorrChoice interest• Average annual stock

return = 33%

• 2003-2005• GBS Transformation

launched in 2003• Obtained remaining

CorrChoice interest• Average annual stock

return = 33%

• 2006-2008• Leveraged GBS for cost

savings & capacity increases

• Strong go to market strategy

• Executed M&A activities–IPS rollup–Delta Petroleum–Blagden Packaging

• Start of the Great Recession

• Average annual stock return = 13%

• 2006-2008• Leveraged GBS for cost

savings & capacity increases

• Strong go to market strategy

• Executed M&A activities–IPS rollup–Delta Petroleum–Blagden Packaging

• Start of the Great Recession


• 2009-2011• Launched 3 growth

platforms:1. Flexibles2. LifeCycle Services

(rigid drum reconditioning)

3. IBC• Recession in Western

Europe• Average annual stock

return = 8%

• 2009-2011• Launched 3 growth

platforms:1. Flexibles2. LifeCycle Services

(rigid drum reconditioning)

3. IBC• Recession in Western

Europe• Average annual stock

return = 8%

• 2012-2014• Increased focus on cash

and business integration• Pursued additional

synergies across businesses & geographic regions


• 2012-2014• Increased focus on cash

and business integration• Pursued additional

synergies across businesses & geographic regions


Oct-17

GBS Transformation Earn & Grow

Growth Through Adjacencies &

Extensions

Business Integration Our Future

Jan-16Jan-14Jan-12Jan-10Jan-08Jan-06Jan-04

Greif Historic Stock Returns1

1Based on adjusted close price incorporating dividends and stock splits

Nov-02

Focused on our Customers and Rewarding our ShareholdersC

umul

ativ

e pe

rcen

t cha

nge

–N

ovem

ber 2

002

-Oct

ober

201

4

-100

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300


Name: Pete WatsonTitle: Chief Operating Officer


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Greif transformation framework

Vision & aspiration

“The Greif Way”

Strategy

Performance management

Collaboration & engagement across businesses

Increase cash efficiency

• SG&A efficiency – Businesses– Shared services / facilities– Corporate

• Working capital reduction

• Portfolio optimization– Transform / fix– Protect the core – Invest to grow– Potential Divest– Resource allocation

process

Optimize the portfolio for the future

• Best in class GBS processes linked as one team focused on creating customer value

Deliver profitable customer growth

ComEx OpEx S&SC

Talent & organizational health

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Strategic Transformation Initiatives

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Portfolio Optimization Quadrant Summary

Transform or Fix

Divest Protect the Core

62 Value Cells

Invest To Grow

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Transform or Fix16 Value Cells

Divest13 Value Cells

Invest To Grow5 Value Cells

Protect the Core25 Value Cells

59 Value Cells

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Revenue $788M


Revenue $445M


Revenue $903M


Revenue $1,947M

Revenue * $4,083

* Adjusted revenue (minus divestitures and land management). Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly comparable GAAP financial measures is included in the Appendix to this presentation.

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Transform or FixPre-Tax RONA1 6.0%

DivestPre-Tax RONA1 33.3%

Invest To GrowPre-Tax RONA1 53.8%

Protect the CorePre-Tax RONA1 48.7%

Portfolio Optimization Value Summary

1. Pre-tax RONA is calculated as plant-level operating profit excluding special items divided by trailing 12 month average net assets which is defined as current assets (excluding cash) plus PP&E, net less accounts payable less other current liabilities.

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Transform or Fix• Top down diagnostic targets developed

• 100% bottoms up plans received

• All plans ready for execution by Feb 15th


Revenue $445M


Revenue $903M


Revenue $1,947M

Portfolio Optimization Progress to Date

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Revenue $788M

Divest• Strategic review process

• Several actions completed

• Balance divestitures with Invest to Grow


Revenue $903M


Revenue $1,947M


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Revenue $788M


Revenue $445M


Revenue $903M

Protect the Core• Top down targets assigned

• Plans being developed

• Begin execution by March 31


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Revenue $788M


Revenue $445M

Invest To Grow• Paper Mill Integration

• CorrChoice

• Innovative products and services

• Drum Plant Jubail, Saudi Arabia


Revenue $1,947M


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Transform or Fix

Divest

Invest To Grow

Protect the Core


Name: Ivan SignorelliTitle: Global President, EMEA


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Business Profile – RIPS EMEA

Lubricants, Oils and Additives

Agriculture

Pharmaceuticals,Mining, Others

Chemicals

EMEA LOCATIONS

= 54

Countries = 26

#2

#1

#1

#3

#1 Footprint

Steel Drums

Plastic Drums

Fiber Drums

IBC

Reconditioning

Revenues(Euro Million)

Operating Profit(Euro Million)

Main Customer Groups

Greif PositionsIn EMEA

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Market Trends

• Slow overall economic recovery in Western Europe

• Steady markets in automotive, agriculture and construction

• Downward trend on raw material and energy prices

• Euro devaluation may result in higher competitive ability of Eurozone produced goods against its competitors produced in US Dollar pegged economies

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• Introduction and continuous development of

products driven on sustainability

• Conclude investment and start up of Jubail Plant in

the Kingdom of Saudi Arabia

• Strategic partnerships with key global customers

• IBC capacity redeployment and expansion

• Implementing enhanced OPEX with

Transformation

• Consolidation and restructuring of our

manufacturing footprint

• Renovating and optimizing reconditioning

• Operating Working Capital optimization

• Enhance Customer experience through Safe

Choice Program

• Value creation workshops with key customers

• Innovation at customer base with advanced

material handling systems

Strategic Priorities

Value creation

Improving asset yield

Innovation and opportunities

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Transformation Strategy – RIPS EMEA

Redeploy under utilized IBC assets

Consolidation and optimization of manufacturing footprint

Enhancing GBS

Transform or Fix

Divest

Invest To Grow

Protect the Core

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Summary Statement and Key Takeaways

• Greif is the leading industrial packaging supplier in the region

• Greif RIPS EMEA steady contributor to the results

• Main customer groups showing steady projections

• New investments coming into operation

• Continuous efficiency improvement programs

• Preparing the future


Name: Darren CherryTitle: Division President, RIPS NA


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Business Profile – RIPS North America

Food & Beverage

AgriculturalChemicals

Lubricants

Chemicals

Pharmaceutical

Total Market (USD Million)RIPS Revenue (USD Million)

Top markets servedRevenue (USD million)

Operating Profit (USD million)

2014

1,055

2013

1,030

2012

1,047

98116122

201420132012

480

87

87

315

308

22452

31735

909

Products and Services

#1

#1

#2

Steel Drums

FibreDrums

Plastic Drums

IntermediateBulkContainers

Chemical Logistics Services

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Market Trends – RIPS North America

• Softer economic conditions in Europe and China combined with stronger currency exchange rates may adversely affect North America’s growth.

• Declining crude oil prices will soften demand for processing chemicals that service the US energy sector.

• The US chemical industry is expected to expand as a result of the advantaged feedstock economics from shale gas access.

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2015 Priorities – RIPS North America

• Improve asset utilization through footprint consolidation.

• Streamline portfolio and eliminate non-core products to reduce complexity cost.

NexDRUM®

GCUBE®

Grow Products Focused on Meeting Customers’ Needs

Optimize Portfolio To Reduce Cost

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Transformation Strategy – RIPS North America

Transform or Fix

Divest

Invest To Grow

Protect the Core

Steel Drum PortfolioReposition portfolio to maximize customer value.

Consolidate footprint to reduce excess capacity.

Reposition and align resources to efficiently service customers’ current needs.

Streamline portfolio to best serve customers’ future needs.

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Key Takeaways – RIPS North America

• Building on a good foundation, we will accelerate our transformational activities with a laser focus on the following areas:

- Enhanced customer service- Operational efficiency- Footprint consolidation

• We will align our resources to partner with our customers to achieve profitable growth in core markets.

• The US chemical industry is poised for some strong growth in the next five-years and Greif is ideally positioned to capitalize.


Name: Dano ListerTitle: Division President – Flexible Products & Services


Greif FPS, A Joint Venture with:

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The global leader in flexible industrial packagingComprehensive Portfolio of flexible industrial packaging

We package products that are essential to life that improve the quality of life for people everywhere.

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Pharma

Fertilizer

Food

Chemicals

Mining & Minerals

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29

37

86

157

162

156

502

605

788

FPS revenue (USD Million) Total Industry Segment (USD Million)

18%

23%

17%

20%

5%

Share of walletMajor industries served

The global leader in flexible industrial packagingServing all major industries with extensive industry know how

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2

10

0

20132012 2014

386394400-2,0%-1,5%

201420132012

Revenues1(USD million)

Adjusted Operating Profit2(USD million)

The global leader in flexible industrial packagingRevenue and Operating profit developments (2012=> 2014)

Notes:1. Excludes sales from Multiwall packaging division.2. Excludes Multiwall packaging division operating profit, impairments and non-recurring events.Note: A reconciliation of the differences between Adjusted Revenues and Adjusted Operating Profit with the most directly comparable GAAP financial measure is included in the appendix to this presentation

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Shifts in external environment necessitate updated strategic plan

Key to original strategy External events Strategy refresh

① Acquire leadership position

② Competitive advantage through lowest cost resin economics

③ Drive impact from Greif Business System (GBS)

• Two European economic downturns

• Shift in resin market in Kingdom of Saudi Arabia

• Occupation of Hadimkoy facility

• Define competitive basis for success

• Determine revenue and profit potential

• Develop implementation plans to achieve targets

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Three strategic prioritiesTaking action to fix the business and set foundation for future

Establish base profitability

Create customer responsive supply

footprint

Complete strategic plan

• Highly engaged, compliant workforce

• Reduce costs (SG&A and variable costs)

• Portfolio optimization to address loss makers

• Shorten delivery lead times

• Reduce supply risk

• Provide contingency options for key customers

• Plan to be completed by end of March

• Determine business size and profitability potential

• Well grounded implementation plans

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Transformation Strategy - FPS

Transform or Fix

Divest

Invest To Grow

Protect the Core

Develop local supply source of proprietary woven fabric

Improve product mix and margin

Implement Best In Class confection operations (increase efficiency 2x)

One value cell transformation plan increases EBITDA to achieve target levels in 2016

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Flexible Products and Services positioned well to lead

• Greif FPS a global leader in flexible industrial packaging and services

• There are attractive components of the portfolio, delivering sustainable returns

• Steps have been taken to get the business back on stable financial base - complete business strategy review in process


Name: Tim Bergwall Title: Division President, Paper Packaging


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Business Profile

Products Revenues (USD million)

Operating Profit (USD million)

20142012 2013

• Triplewall Products

• Asitrade Graphics Products

• LeaderCorr ® Signage Board

• Coated Containerboard

• Corrugated Sheets

707676574

12612484

20142012 2013

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Market Trends

• Liner and Medium performance improvements

• Sheetfeeder Expansion

• Specialty Products Expansion

Changing Competitive Landscape…Further ConsolidationMachine ConversionsNew Entrants

• Medium-Centric System

• New Corrugator TechnologiesLightweighting

Trend Key Actions

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Strategic Priorities

• Efficient Frontier

• Over Integration

• Differentiated Specialty Products

• Lead the Transformation

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Transformation Strategy – Paper Packaging

Transform or Fix

Divest

Invest To Grow

Protect the Core

Business Expansions

Riverville Expansion

CorrChoice Corrugator

Asitrade Expansion

Enhancing GBS

Box Plant Divestiture

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Summary Statement and Key Takeaways

• High performing business that is unique in the industry

• Balanced system growth with improving integration

• Compelling Value Proposition for a growing sector


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Name: Larry HilsheimerTitle: Executive Vice President, CFO


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Financial Metrics

Value (%)

• Operating Profit %

Gross Profit %

SG&A %

• Operating Working Capital %

Drivers of Value

• Targeted Growth by Business

• Innovation Revenue Mix

From 2014

7.5%

19.1%

11.7%

9.7%

Business Specific

To 2017

10.0%

20.0%

10.0%

<7.5%

Business Specific

ProductDiversification

Impact

30%+ Improvement

$50M+ Operating Margin

$50M+ Operating Margin

$100M Cash

2-3% Net Sales Growthin 2016 & 2017

ProductDiversification

2-3% Net Sales Growthin 2016 & 2017

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Financial Metrics

1 2015 net sales is forecasted at $4,154; net sales is forecasted to grow 2.0-3.0% in both 2016 and 20172 SG&A has been adjusted to exclude acquisition-related costs3 Special items includes restructuring charges, acquisition-related costs, timberland gains, non-cash asset impairment charges, and gain on disposal of properties, plants, equipment and business, net 4 Operating working capital percentage is calculated using the October 31, 2014 balance of trade accounts receivable plus inventories less accounts payableNote: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly comparable GAAP financial measures is included in the Appendix to this presentation.

(Dollars in millions) Twelve Months Ended October 31,

2017

2.0% 3.0%2014 Growth Growth

Net Sales (1) $4,239 $4,322 $4,407

Gross Profit 811 864 881

Margin % 19.1% 20.0% 20.0%

SG&A (2) 495 432 441

% of Net Sales 11.7% 10.0% 10.0%

Operating Profit Excluding Special Items (3) 316 432 441

% of Net Sales 7.5% 10.0% 10.0%

EBITDA Excluding Special Items 462 570 579

% of Net Sales 10.9% 13.2% 13.1%

Operating Working Capital % (4) 9.7% 7.2% 7.1%

Free Cash Flow Excluding Timberland Transactions 204 282 287

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Questions

TEXT: 740-417-3727

Email : [email protected]

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Thank You

2015 Investor Day The Path of Transformation...2015 Investor Day The Path of Transformation Name:...

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