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Investor Presentation Investor Presentation December 2008 December 2008 Safe Harbor Forward-Looking Statements This presentation contains certain forward-looking information within the meaning of the Private Securities Litigation Reform Act

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SLIDE 1

Investor Presentation

December 2008

Investor Presentation

December 2008

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SLIDE 2

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 “believe,” “expect,” “anticipate,” “estimate,” “target,” and similar expressions, among others, identify forward-looking statements. All forward- looking statements are based on information currently 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, 2007. The Company assumes no obligation to update any forward-looking statements. Regulation G This 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 meas res pro ide a better indication of operational performance and a more stable platform on hich 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. Tables showing the reconciliation between GAAP and non-GAAP measures are available at the end of this presentation and on the Greif W b it t if

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Web site at www.greif.com.

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SLIDE 3

Company Profile

  • Founded in 1877 as a packaging

company

  • Public company since 1926
  • Diversified business platform
  • Leading industrial packaging company

with over 30% global market share

  • More than 200 operations in 48 countries

3

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SLIDE 4

Diversified Business Platform

(Dollars in millions) (Year ended October 31, 2008)

Sales $3,777

(1)

Operating Profit

(1)

$413 Industrial Packaging Sales $3 061 Paper Packaging S l $697 Timber S l $19 Sales $3,061 Operating Profit

(1)

$315 Sales $697 Operating Profit

(1)

$77 Sales $19 Operating Profit

(1)

$21

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(1) Before restructuring charges and timberland disposals, net. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation.

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SLIDE 5

Performance Trajectory

(D ll i illi ) (Dollars in millions)

$3,322 $3,777

$3,500 $4,000

1997 2008 CAGR “Re earn the “Earn

$1,916 $2,209 $2,424 $2,628

$2,000 $2,500 $3,000

Net Sales $688 $3,777 17% Operating Profit( 1) $35 $413 25% “Re-earn the Right to Grow” and Grow”

(1) $846 $853 $964 $1,456 $1,633 $688

$500 $1,000 $1,500

March 30, 1998

Acquired Sonoco Products’ industrial packaging business f $223 illi

March 2, 2001

Acquired Van Leer Industrial Packaging from Huhtamaki for

March 4, 2003 Launched Transformation to Greif Business System September 22, 2006

Acquired Delta Petroleum for $98 million

(1)

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

for $223 million

November 1, 1998

CorrChoice joint venture formed (Greif

  • wnership 63.24%)

$555 million

September 30, 2003

Remaining interest in CorrChoice obtained

November 30, 2006

Acquired steel drum and closures businesses of Blagden Packaging for €205 million

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€205 million (1) Before restructuring charges and timberland disposals, net. See GAAP to Non GAAP reconciliation included in the Appendix of this presentation.

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SLIDE 6

Investment Thesis: Re-earning the Right to Premium Valuation

  • GBS – a catalyst enabling strong relative performance

and value creation during cyclical trough

  • Diversity – a compelling competitive advantage
  • Strong balance sheet and access to alternate sources of

liquidity liquidity

  • Balanced focus on defense (contingency planning/

enterprise risk management) and offense enterprise risk management) and offense

  • Solid, experienced and performance-driven management

team with record of accomplishment

  • Diversity >

Strength > Performance

6

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SLIDE 7

Our Aspirations

Break-away momentum

  • Organic growth: ≥ 5% (GDP + 2

points)

  • Operating profit margin: ≥12 5%

Preferred productivity partner

  • Compelling value proposition

based on what customers are willing to pay for Growth Operating profit margin: ≥12.5%

  • SG&A/net sales: ≤ 7.5%
  • RONA: ≥ 25%
  • ROIC ≥ WACC: 5 points

willing to pay for

  • Low-cost provider of high-quality

products with consistent and reliable delivery Value People Productivity Strong performance ethic T t Productivity imperative

  • Real-cost productivity: ≥ 4% per year
  • Transparent governance

structure

  • Performance and consequence

management

  • Talent and succession
  • Capital productivity

› OWC/net sales: ≤ 7.5% › Asset turns: ≥ 2x › World-class strategic sourcing

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  • Talent and succession

management g g capabilities

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SLIDE 8

The Framework for Achieving Aspirations

The Greif Way

Greif Production System Greif

Working Capital Gl b l

Greif Operating System

Operational Excellence Commercial Excellence Global Supply Chain Strategy People Performance Management

Core Processes

Excellence

8

g

Processes

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SLIDE 9

Industrial Packaging

(1)

Net sales Operating profit

(1)

$2,654 $3,061

$2 425 $2,600 $2,775 $2,950

$229 $315

$240 $280 $320

2002 2008 CAGR $1,268 $3,061 16% 2002 2008(1) CAGR $41 $315 40% $1,268 $1,384 $1,621 $1,804 $1,993

$1 ,375 $1 ,550 $1 ,725 $1 ,900 $2,075 $2,250 $2,425

$41 $70 $112 $123 $167

$40 $80 $1 20 $1 60 $200

Served markets Competitive advantages

$1 ,200 2002 2003 2004 2005 2006 2007 2008 $- 2002 2003 2004 2005 2006 2007 2008

▲ Leading market position ▲ Global footprint ▲ Compelling value proposition

Chemicals, paints and pigments, petroleum, industrial coatings

▲ Compelling value proposition ▲ Comprehensive product portfolio ▲ Strong customer relationships

Agriculture Pharmaceutical

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(1) Before restructuring charges. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation.

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SLIDE 10

Most Comprehensive Industrial Packaging Portfolio

Plastic Fibre Steel Water Bottles IBC

Closures

Global Presence

#1 #1 #2 #4 #1 #1

Mauser

(1)

Schutz

Greif’s global market share exceeds 30%

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(1) Acquired by Dubai International Capital LLC in 2007.

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SLIDE 11

Multinational Customer Base

Top 10 customers represent less than 20% of Greif’s annual net sales

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SLIDE 12

(1)

Paper Packaging

$654 $697

$ $800 $900

$60 $68 $77

$60 $75 $90

Net sales Operating profit

(1)

2002 2008 CAGR $324 $697 14% 2002 2008 CAGR $21 $77 24% $324 $504 $568 $608 $620 $654

$400 $500 $600 $700

$21 $30 $29 $41

$1 5 $30 $45 $60

Served markets Competitive advantages

$300 2002 2003 2004 2005 2006 2007 2008 $- 2002 2003 2004 2005 2006 2007 2008

▲

Customer focus

▲

Fully-integrated containerboard t k network

▲

Highly efficient sheet feeder footprint

Packaging Feed and Seed

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(1)

Before restructuring charges. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation.

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SLIDE 13

Fully-integrated Paper Packaging Network

Box Plants 4 Massillon, Ohio Mill Specialty Corrugated Plants 6 Riverville, Virginia Mill 6 Sheet Feeder Plants Multiwall Bag Plants 2

600 000 tons Production 650 000 tons Consumption Annual containerboard requirements >100% of production capacity 600,000 tons 650,000 tons

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Annual containerboard requirements >100% of production capacity

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SLIDE 14

Timber

Served Markets

Timber, timberland, special use properties.

▲ Properties primarily located in Alabama, ▲ Properties primarily located in Alabama,

Louisiana and Mississippi in the United States and the Quebec and Ontario provinces in Canada.

▲ 61,600 acres (21%) identified as special use

ti t 10/31/08

Competitive advantages

properties at 10/31/08.

▲ Undervalued timberland assets

(book value $200 million at 10/31/08).

▲ Opportunities to monetize special use

p g

2001 Timber established as a line of business and portfolio began to be actively managed. 2001 2007 Over $200 million of timber

▲ Opportunities to monetize special use

properties.

▲ 296,150 acres in North America in attractive

locations, including 268,700 acres in the United States and 27 450 acres in Canada 2001 – 2007 Over $200 million of timber assets have been monetized. 2006 Special use properties

  • identified. Gains total $31

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United States and 27,450 acres in Canada. million since the beginning of 2006.

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SLIDE 15

Financial Review

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SLIDE 16

Financial Profile

(Dollars in millions)

2002 2003 2004 2005 2006 2007 2008 Net Sales $1,633 $1,916 $2,209 $2,424 $2,628 $3,322 $3,777 Operating Profit

(1)

$ 92 $ 121 $ 155 $ 171 $ 238 $ 311 $ 413 Net Income

(1)

$ 32 $ 43 $ 83 $ 96 $ 140 $ 190 $ 267 RONA

(1)

7.5% 10.1% 13.3% 15.9% 21.5% 21.3% 24.8% Free Cash Flow $ 112 $ 52 $ 180 $ 175 $ 164 $ 263 $ 80

(2)

(1) Before restructuring charges, debt extinguishment charges, timberland disposals, net and cumulative effect of change in accounting principle. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation. (2) Significantly higher raw material costs during the second half of fiscal 2008 coupled with year-end timing issues impacted fiscal 2008 free cash flow by more than $100 million, which is expected to reverse in fiscal 2009. Additionally, fiscal 2009 capital expenditures are expected to be approximately $50 million below fiscal 2008.

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pp y

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SLIDE 17

Strong Cash Generation

(1)

$1,400

(Dollars in millions)

$1,000 $1,200

Purchases of PP&E, net $399

$400 $600 $800

Operating Cash Flow $1,426 Acquisitions $625 Dividends Sh Free Cash Flow $1,027

$0 $200 $

Other $109 de ds $236 Share Repurchases $57

Cash Sources Cash Uses

20% of Operating Cash Flow Returned to Shareholders 17

(1) Fiscal 2002 to 2008

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SLIDE 18

Earn and Grow Phase

Greif Business System Growth I d t

Goals

Value Creation

+ =

Industry consolidation Emerging

Goals

Operating Profit Margin(1) ≥ 12.5% SG&A/

The Greif Way

Working

Emerging markets Core business

Net Sales ≤ 7.5% OWC(2)/ Net Sales ≤ 7.5%

Performance

Operational Excellence Commercial Excellence Capital Global Supply Chain

adjacencies

Return on Net Assets(3) ≥ 25.0%

Strategy People Performance Management

(1) Operating profit margin equals operating profit, before restructuring charges and timberland disposals, net, divided by net sales. (2) Operating working capital equals accounts receivable (less allowances) plus inventories less accounts payable

Focus Discipline Passion

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(2) Operating working capital equals accounts receivable (less allowances) plus inventories less accounts payable. (3) Return on net assets equals operating profit, before restructuring charges and timberland disposals, net, divided by long-term debt plus short-term borrowings less cash and cash equivalents, plus shareholders’ equity.

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SLIDE 19

2009 Operating Profit Guidance Bridge

(Dollars in millions)

$383

(1)(2)

$(100) $(20) $13 $376

(Dollars in millions)

$50

(1)

( ) $ $ $50

Contribution Margin Foreign Exchange 2009 Guidance Accelerated GBS Initiatives Other, net Greif Business System 2008 Adjusted

(1) Before restructuring charges and timberland disposals, net. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation. (2) Excludes one-time $30 million gain related to the divestiture of business units in Australia and Zimbabwe.

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As of December 10, 2008

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SLIDE 20

Financial Aspirations

Annual Organic Sales Growth (average) 5% Net Debt to Net Capitalization 30% - 40% p % % Annual Dividend Payout 30% - 35% Annual Capital Expenditures ($ in millions) $85 - $145 Spread Over Cost of Capital 7.5% - 10% p p

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SLIDE 21

Investment Thesis: Re-earning the Right to Premium Valuation

  • GBS – a catalyst enabling strong relative performance

and value creation during cyclical trough

  • Diversity – a compelling competitive advantage
  • Strong balance sheet and access to alternate sources of

liquidity liquidity

  • Balanced focus on defense (contingency planning/

enterprise risk management) and offense enterprise risk management) and offense

  • Solid, experienced and performance-driven management

team with record of accomplishment

  • Diversity >

Strength > Performance

21

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SLIDE 22

Appendix

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SLIDE 23

GAAP to Non-GAAP Reconciliation

Return on Net Assets Return on Net Assets

UNAUDITED (Dollars in millions)

2002 2003 2004 2005 2006 2007 2008 GAAP operating profit $ 101.2 $ 65.4 $ 108.7 $ 191.9 $ 246.2 $ 289.6 $ 370.3 Restructuring charges 2.8 60.7 54.1. 35.7 33.2 21.2 43.2 g g Timberland disposals, net (12.1) ( 5.6) (7.5) (56.3) (41.3) 0.6 (0.3) Non-GAAP - operating profit before restructuring charges and timberland disposals, net $ 91.9 $ 120.5 $ 155.3 $ 171.3 $ 238.1 $ 311.5 $ 413.1 Average cash (1) $ (30.8) $ (27.2) $ (36.1) $ (67.9) $ (148.9) $ (120.4) $ (101.0) Average short-tern borrowings(1) 19.3 21.5 16.6 17.9 24.6 34.9 48.4 Average current portion of long-term debt(1) 30.0 3.0 1.2

  • Average current portion of long term debt

30.0 3.0 1.2 Average long-term debt(1) 627.8 634.3 592.8 446.8 449.7 645.1 687.0 Average shareholders' equity(1) 583.7 566.9 590.0 677.9 779.6 904.0 1,030.4 Average net assets $ 1,230.0 $ 1,198.5 $ 1,146.5 $ 1,074.7 $ 1,105.0 $ 1,463.6 $ 1,664.8 GAAP return on net assets (GAAP operating profit divided by average net assets) 8.2% 5.5% 9.3% 17.9% 22.3% 19.8% 22.2% Non-GAAP return on net assets (non-GAAP operating profit

(1) Amounts used in the calculation for this graph are based upon the average balances as of the beginning of the fiscal year and end of each fiscal quarter for the years presented.

Non-GAAP return on net assets (non-GAAP operating profit before restructuring charges and timberland disposals, net divided by average net assets) 7.5% 10.1% 13.3% 15.9% 21.5% 21.3% 24.8%

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SLIDE 24

GAAP to Non-GAAP Reconciliation

Operating Profit Operating Profit

UNAUDITED (Dollars in millions) 1997 (Dollars in millions) 1997 GAAP operating profit 29.8 $ Restructuring charges 6.2 Timberland disposals, net (0.8) Timberland disposals, net (0.8) Non-GAAP operating profit before restructuring charges and timberland disposals, net 35.2 $

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SLIDE 25

GAAP to Non-GAAP Reconciliation

Operating Profit by Segment Operating Profit by Segment

UNAUDITED (Dollars in millions)

2002 2003 2004 2005 2006 2007 2008 Industrial Packaging GAAP - operating profit 38.9 $ 21.9 $ 67.0 $ 91.4 $ 143.4 $ 213.4 $ 281.0 $ Restructuring charges 2.3 47.9 45.0 31.4 24.0 16.0 34.0 Non-GAAP - operating profit before restructuring charges 41.2 $ 69.8 $ 112.0 $ 122.8 $ 167.4 $ 229.4 $ 315.0 $ Paper Packaging GAAP - operating profit 20.2 $ 17.9 $ 20.5 $ 36.3 $ 50.8 $ 62.5 $ 68.0 $ Restructuring charges 0.4 12.5 8.9 4.3 9.2 5.2 9.1 Non-GAAP - operating profit before restructuring charges 20 6 $ 30 4 $ 29 4 $ 40 6 $ 60 0 $ 67 7 $ 77 1 $ before restructuring charges 20.6 $ 30.4 $ 29.4 $ 40.6 $ 60.0 $ 67.7 $ 77.1 $ Timber GAAP - operating profit 42.1 $ 25.5 $ 21.2 $ 64.2 $ 51.9 $ 13.7 $ 20.2 $ Restructuring charges 0.1 0.4 0.2 0.1

  • 0.1

Timberland disposals net (12 1) (5 6) (7 5) (56 3) (41 3) 0 6 Timberland disposals, net (12.1) (5.6) (7.5) (56.3) (41.3) 0.6

  • Non-GAAP - operating profit

before restructuring charges and timberland disposals, net 30.1 $ 20.3 $ 13.9 $ 8.0 $ 10.6 $ 14.3 $ 20.3 $

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SLIDE 26

GAAP to Non-GAAP Reconciliation

Net Income Net Income

UNAUDITED (Dollars in millions) 2002 2003 2004 2005 2006 2007 2008 $ 31.0 $ 9.5 $ 47.8 $ 104.7 $ 142.1 156.4 $ 234.4 $ 1.8 42.0 40.9 25.7 23.4 15.8 33.0 6.6

  • 2.0
  • 17.5
  • (7 8)

(3 9) (5 7) (36 2) (26 0) 0 5 (0 3)

GAAP – net income Restructuring charges, net of tax Debt extinguishment charge, net of tax Timberland Disposals net of tax

(7.8) (3.9) (5.7) (36.2) (26.0) 0.5 (0.3)

  • (4.8)
  • Timberland Disposals, net of tax

Cumulative effect of change in accounting principle Non-GAAP – net income before restructuring charges, debt

$ 31.6 $ 42.8 $ 83.0 $ 96.2 $ 139.5 $ 190.2 $ 267.1

extinguishment charge, timberland disposals, net and cumulative effect

  • f change in accounting principle

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