KeyBanc Capital Markets Basic Materials & Packaging...

Forward-Looking StatementsThis presentation contains certain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “anticipate”, “estimate”, “target”, and similar expressions, among others, identify forward-looking statements. All forward-looking statements are based on information presently available to management. Such forward-looking statements are subject to certain risks and uncertainties that could cause events and the Company’s actual results to differ materially from those expressed or implied. Please see the disclosure regarding forward-looking statements immediately preceding Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2004. The Company assumes no obligation to update any forward-looking statements.

Regulation GThis presentation includes certain non-GAAP financial measures that exclude restructuring and other unusual charges and gains that are volatile from period to period. Management believes the non-GAAP measures provide a better indication of operational performance and a more stable platform on which to compare the historical performance of the Company than the most nearly equivalent GAAP data. All non-GAAP data in the presentation are indicated by footnotes. Tablesshowing the reconciliation between GAAP and non-GAAP measures are available at the end of this presentation and on the Greif Web site at www.greif.com.

September 15, 2005

KeyBanc Capital MarketsBasic Materials &

Packaging Conference

2

Overview

• Who We Are

• Business Portfolio

• Greif Business System

• Financial Review

3

Company Profile

• Founded in 1877 as a packaging company

• Public company since 1926

• Diversified business portfolio• Industrial Packaging & Services • Paper, Packaging & Services• Timber

• Approximately 175 operations in more than 40 countries on six continents

4

Growth Trajectory

FY1997($ millions)

Net Sales $688

Operating Profit (1)

$29

Enterprise Value $840

LTM 7/31/05($ millions)

Net Sales

Operating Profit (1)

Enterprise Value

1998 2000 2002 2004

March 30, 1998Acquired Sonoco Products’ industrial packaging business for $223 million.

November 1, 1998CorrChoice joint venture formed (Greif ownership 63.24%)

March 2, 2001Van Leer Industrial acquired from Huhtamaki for $555 million

September 30, 2003Greif obtained remaining interest in CorrChoice

(1) Before special items

March 4, 2003Transformation to the Greif Business System initiated

$2,418

$178

$1,760

5

Revenue Catalysts

2005*20042003200220012000

152028413845

$2,418$2,209$1,916$1,633$1,456$964

611568504324379428

$1,792$1,621$1,384$1,268$1,039$491

$1,456$1,633

$1,916

$2,209$2,418

$0

$500

$1,000

$1,500

$2,000

$2,500

2000 2001 2002 2003 2004 2005*

• Initiated active forestry management

• $169 million of timberland gains realized

• Timber assets remain undervalued

2000 – 2005

Timber

• Achieved fully-integrated network

• Emphasis on specialty markets

• Focus on middle-market customers

2000 – 2005

Paper, Packaging & Services

• Industry consolidator• Established global footprint• Launched transformation

process

2000 – 2005

Industrial Packaging & Services$ millions

* Twelve Months Ended July 31, 2005

$964

IPS

Timber

PPS

Net sales

6

IPS51%

Timber5%

PPS44%

IPS74%

Timber1%

PPS25%

FY 2000 Twelve Months Ended 7/31/05

Sales by Business Segment

7

North America100%

North America55%

Europe30%

Other15%

Twelve Months Ended 7/31/05 FY 2000

Sales by Region

Business Portfolio

9

• Global footprint

• Leading market position

• Differentiation through superiorquality, dependable service and innovative solutions

• Most comprehensive productoffering

Net sales $1.79 billion

Operating profit (1) $125 million

Petroleum Paints and pigments Food and agriculture Pharmaceuticals Chemicals

70%

6

End markets

Advantages


74%

6

12 Months Ended 7/31/05

Industrial Packaging & Services

10

Steel Containers Fibre Containers Closure Systems

Plastic Containers Intermediate Bulk Containers

#1 #1 #1

#2 #4#1

Water Bottles

Undisputed Global Leader in Industrial Packaging

11

Most Comprehensive Industrial Packaging Portfolio

Schutz

Plastic FibreSteelWater BottlesIBC ClosuresGlobal

Presence

Russell-Stanley

Mauser

GCC Drum

Note: As of August 2005

12

Top 10 customersTop 10 customersrepresent less than represent less than

20% of sales20% of sales

Multinational Customer Base

13

• Value-added niche player

• Fully-integrated containerboard network

• Differentiation through superior quality, dependable service and innovative solutions

25%

25%

End markets

Advantages

Net sales $611 million


Packaging Building productsFoodAutomotive



Paper, Packaging & Services

14

Fully-integrated Containerboard Producer(000s of tons)

100 800400 700600500300200

External Sales

CorrChoice

CaptiveConverting

ContainerboardOutput (Mills)

105%Integration

0

130% Consumption

15

Riverville, Virginia Mill

7 Sheet Feeder Plants 9 Box Plants 2 Multiwall Bag Plants6 Specialty Corrugated Plants

Massillon, Ohio Mill

Containerboard

Converting

Paper, Packaging & Services’ Integrated Network

16

1997-2005

Millions of dollars

** Twelve months ended July 31, 2005

Note: Annual operating profit includes corporate allocations for all years shown, but excludes operating profit from CorrChoice prior to fiscal 2003.

$32

$23

$54 $53

$20

$30 $29

$44

($2)

($5)

$15

$35

$55

Oct

-97

Oct

-98

Oct

-99

Oct

-00

Oct

-01

Oct

-02

Oct

-03

Oct

-04

Jul-0

5**

Linerboard Prices$/Ton

PPS’ Annual Operating Profit (1)

$ millions

Source: Pulp & Paper, Company Data

330

355

380

405

430

455

1997 1998 1999 2000 2001 2002 2003 2004 2005*

*As of August 2005

Linerboard Prices versus PPS' Operating Profit(1)


17

5%

1%

Net sales $15 million• Undervalued timberland assets

End markets

Advantages


Containerboard Building products Housing Pilings and poles

283,000 acres in North America(1) Before special items


Timber

18

Significant Timberland Transaction

Transaction• Sale of 56,000 acres of timberland, timber and associated assets.• Approximately $90 million total in two phases.

First phase completed May 2005• Sale of 35,000 acres of timberland and associated assets in Florida, Georgia, and Alabama.• Proceeds of approximately $51 million used for debt reduction and general corporate

purposes.

Second phase to be completed during fiscal 2006• Sale of an additional 21,000 acres of timberland and associated assets in Florida.• Expected to occur in several installments.• Proceeds of approximately $39 million.

19

$1,500

Global Sourcing & Supply Chain Strategy

SteelPaper (2)

Transportation/LogisticsResinOCC

Global Spend (1)

Top Categories($ Millions)

$25 $50 – $75

(1) Fiscal 2004(2) Non-trade only

• Leverage global spend to optimize procurement costs.

• Focus on transportation/logistics and inventory to drive savings and to improve customer service levels.

• Standardize and automate business processes to realize indirect spend savings.

• Improve supply chain processes and systems to maximize value creation.

FY 2006 Savings Guidance($ Millions)

Permanent SavingsIdentified($ Millions)

Greif Business System

21

Strong Foundation

Leadingmarketposition

• Global leader – industrial packaging• Leading specialty provider – paper and packaging• Advantaged timberland assets

Strongheritage

• Integrity • Customer focus• People first

History ofbold moves

• In the industry – acquisition of Van Leer and Sonoco’s industrial container businesses and CorrChoice investment

• In the market – value-added packaging provider• In the company – Greif Business System

Sources of competitive advantage

• Scale economies• Uniquely positioned to serve global customers• Distinctive customer service and respected “industrial brand”• Differentiated and comprehensive product offerings• A special culture

22

Growth

ProductivityPeople

Value

“Strong performance ethic”

Preferred productivity partner

• Compelling value proposition based on what targetedcustomers are willing to pay for

• Low-cost provider of high-qualityproducts with consistent andreliable delivery

“Break-away momentum”

• Organic growth: ≥ 5% (GDP + 2 points)

•Operating profit margins: ≥ 10%

• SG&A: ≤ 10%

• RONA: ≥ 20%

• ROIC > WACC: 5 points

• No. 1 preferred employer in the industry

• Strong performance ethic- Consequence management- Transparent governance structure- Rigorous management processes

• Special culture: “Great place to work”

Productivity imperative• Real-cost productivity: ≥ 4% per

year• Capital productivity

- Asset turns: > 2x- Operating working capital/revenues:≤ 12%

• World-class strategic sourcing capabilities

Our Aspirations

23

CommercialExcellence

OperationalExcellence

Vision/Values

Strategy People

Direction

Greif Operating System (Capability Engines)

Working Capital/ Supply Chain

Fact-Based General Management

PerformanceManagement

Guiding/DrivingProcesses

Greif Business System: The Framework for Achieving Aspirations

24

CommercialExcellence

OperationalExcellence

Fact-BasedGeneral Management

Strategic Sourcing

• Regional tactical marketing• Value selling• Fact-based account management

• Diagnostics and target setting• Network alignment• Lean operations • Continuous improvement

• Integrated problem solving• People management/development• Performance management

• Global fact-based management• Supplier relationships and integration• TCO (productivity) analysis

Greif’s Operating System – Capability Engines

25

Strategy

People

PerformanceManagement

• Current focus on optimizing existing business portfolio.

• Putting the right people in the pivotal roles.• Identify high potential employees and talent gaps.• Rigorous approach to talent development and capability building.

• Key Performance Indicators aligned across the enterprise.• Building automated dashboards to track progress.• Developing a rigorous performance management system.

Guiding/Driving Processes

26

Incremental improvement A transformation

Cost-effective Low cost

Market pricing Value pricing

Nice place to work Demanding, but great place to work

Tactical sourcing Strategic supply chain management

Entitlement Performance

Individual, fragmented processes Standardized, uniform processes

The Greif Way The Greif Way

From To

Our Expectations

27

($ millions)

Transformation Savings

Initiatives

SG&A Optimization

Operational Excellence

Commercial Excellence

Administrative Excellence

Working Capital

Global Sourcing/Supply Chain

Talent Development

$35 $115

$80

Through 10/31/04

Fiscal 2005*

Through 10/31/05*

* Management estimate

28

The Greif Way

• Integrity and trust

• Respect for the individual

• Performance ethic

• Meet or exceed customer expectations

• Supplier partnerships

• Seek continuous improvement

• Focus on core businesses

• Create shareholder value

Financial Review

30

40.7%

12.9%

$ 180

$ 83

$ 155

$2,209

2004

49.8%

11.5%

$ 50

$ 66

$ 140

$2,110

2004

Twelve Months EndedJuly 31,

33.7%51.7%52.4%Net Debt/Net Capitalization

15.5%9.8%7.3%RONA

$ 202$ 52$ 112Free Cash Flow

$ 104$ 43$ 32Net Income

$ 178$ 121$ 92Operating Profit

$2,418$1,916$1,633Net Sales

200520032002

($ millions)

Greif Financial Profile

Note: Before special items

31

Financial Performance Goals

(1) Before special items.(2) Return on net assets equals operating profit, before special items, divided by total debt plus shareholders' equity.(3) Operating working capital equals accounts receivable plus inventories less accounts payable.(4) Represents the twelve-month period ended July 31, 2005.

Operating Profit Margin(1)

5.6% 6.3% 7.0%

10.0%

7.4%

0.0%

3.0%

6.0%

9.0%

12.0%

2002 2003 2004 2005 2006Target

(4)

SG&A / Net Sales15.4%

9.9% 9.2% 10.0%11.9%

0.0%

5.0%

10.0%

15.0%

20.0%

2002 2003 2004 2005 2006Target

(4)

Return on Net Assets(2)

9.8%

20.0%15.5%

7.3%

12.9%

0.0%5.0%

10.0%15.0%20.0%25.0%

2002 2003 2004 2005 2006Target

(4)

Operating Working Capital(3) / Net Sales16.0% 14.9%

12.0%10.6%13.2%

0.0%

5.0%

10.0%

15.0%

20.0%

2002 2003 2004 2005 2006Target

(4)

32

$628 $612

$431$360

$0

$175

$350

$525

$700

$875

2002 2003 2004 2005*

33.7%2005*

40.7%2004

51.7%2003

52.4%2002

Net Debt/Net Capitalization

* At July 31, 2005

Commitment to Net Debt Reduction($ millions)

33

Established History of Cash Dividends

• Over 70 consecutive years of cash dividends paid.

• 50% increase in quarterly cash dividends per share announced on June 1, 2005.

• 30% targeted payout ratio over an entire business cycle.

34

Fiscal 2005 Guidance (1)

• PPS’ results are anticipated to be impacted in the fourth quarter of 2005 by containerboard price reductions earlier this year.

• This, coupled with higher energy and other input costs during 2005 resulted in management’s earnings guidance, before special items, to be revised to $3.25 to $3.35 per diluted Class A share for 2005 on August 31, 2005, which represents a 13% to 16% increase over results before special items for fiscal 2004.

• Management remains optimistic about fiscal 2006, based on the expectation of improving market fundamentals from current levels, recent announcements related to the paper and packaging industry's rationalization of certain capacity, and stabilization of commodity prices, particularly steel.

• The Greif Business System will be further embedded throughout the company, and approximately $25 million of incremental savings are anticipated to be realized from strategic sourcing initiatives in fiscal 2006.

(1)Guidance was made as of August 31, 2005, and is not being updated or reaffirmed with these materials or the presentation

35

Greif Business System:Catalyst for Unlocking Value

• Leading global market position in industrial packaging

• Comprehensive product portfolio and geographic diversification

• Fully-integrated network and value-added niche positions in paper and packaging

• Significantly undervalued timber assets

• Increased financial flexibility

• Improving industry and company fundamentals

Appendix

37

GAAP to Non-GAAP Reconciliation

UNAUDITED (Dollars in thousands)

LTM 7/31/05 LTM 7/31/04 Fiscal 2004 Fiscal 2003 Fiscal 2002

GAAP - operating profit $ 197,433 $ 82,671 $ 108,706 $ 65,356 $ 101,157 Restructuring charges 37,360 65,036 54,118 60,743 2,824 Timberland gains (56,521) (7,261) (7,514) (5,577) (12,122)

Non-GAAP - operating profit before restructuring charges and timberland gains $ 178,272 $ 140,446 $ 155,310 $ 120,522 $ 91,859

GAAP - net income $ 110,431 $ 25,346 $ 47,769 $ 9,496 $ 30,979 Restructuring charges, net of tax 28,114 45,873 40,859 42,034 1,807 Debt extinguishment charge, net of tax 2,059 -- -- -- 6,592

Timberland gains, net of tax (36,648) (5,142) (5,673) (3,859) (7,758)Cumulative effect of change in accounting principle -- -- -- (4,822) --

Non-GAAP - net income beforerestructuring charges, debt extinguishment charge, timberland gains and cumulative effect of change in accounting principle $ 103,956 $ 60,077 $ 82,955 $ 42,849 $ 31,620

38



Twelve months ended July 31, 2005

Industrial Packaging & ServicesGAAP - operating profit 91,104$

Restructuring charges 33,436 Non-GAAP - operating profit before restructuring charges 124,540$

Paper, Packaging & ServicesGAAP - operating profit 39,946$

Restructuring charges 3,842 Non-GAAP - operating profit before restructuring charges 43,788$

TimberGAAP - operating profit 66,384$

Restructuring charges 81 Timberland gains (56,521)

Non-GAAP - operating profit before restructuring charges and timberland gains 9,944$

39



Fiscal 1997

GAAP - operating profit 29,841$ Restructuring charges --Timberland gains (802)

Non-GAAP - operating profit before restructuring charges and timberland gains 29,039$

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