Investor Presentation October 2013 Safe Harbor Forward-Looking - PowerPoint PPT Presentation

Investor Presentation October 2013

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 “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “aspiration,” “objective,” “project,” “believe,” “continue,” “on track” or “target” or the negative thereof 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 Oct. 31, 2012. The company assumes no obligation to update any forward-looking statements. Regulation G This presentation includes certain non-GAAP financial measures like EBITDA and other measures that exclude special items such as restructuring and other unusual charges and gains that are volatile from period to period. Management of the company uses the non-GAAP measures to evaluate ongoing operations and believes that these non-GAAP measures are useful to enable investors to perform meaningful comparisons of current and historical performance of the company. 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 website at www.greif.com. Investor Presentation, October 2013 | 2

Highlights  Global industry leader  Diversification  Geography  Markets  Substrates  Three global growth platforms  Strong history of cash dividends Investor Presentation, October 2013 | 3

Overview  Founded in 1877 as a packaging company  Initial public offering in 1926  Global leader in rigid industrial packaging and flexible products packaging  Over 245 facilities in more than 50 countries Investor Presentation, October 2013 | 4

Diversified Business Platform 12 months ended July 31, 2013 (Dollars in millions) Sales $ 4,303 EBITDA (1) $ 451 Rigid Flexible Paper Land Industrial Packaging Management Products & Packaging Services & Services Sales $ 777 Sales $ 33 Sales $ 3,044 Sales $ 449 EBITDA (1) EBITDA (1) EBITDA (1) EBITDA (1) $ 278 $ 12 $ 140 $ 21 Serve diverse end markets such as chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agricultural, pharmaceutical, minerals and building products (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 expense 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 financial schedules that are part of this presentation Investor Presentation, October 2013 | 5

Strategy  Continue to strengthen the core  Industry consolidation  Emerging markets  Product line extensions  Pursue adjacencies that leverage macro trends  Optimize and embed the Greif Business System  Leverage sustainability to create long-term competitive advantage and cost savings  Fix, sell or close underperforming assets Investor Presentation, October 2013 | 6

Most Comprehensive Industrial Packaging Products and Services Portfolio Rigid Intermediate Reconditioned Global Bulk Filling & Rigid Industrial Presence Steel Plastic Fibre Containers Blending Closures Packaging Flexibles #1 #1 #1 #2 #3 #1 #1 Mauser Schutz Investor Presentation, October 2013 | 7

Greif, Inc. – Profile (Dollars in millions) (1) Net sales Net sales by geographic market $4,303 $4,270 $4,248 APAC LAMR $3,462 $654 $2,790 North America $2,040 EMEA $1,609 $4,303 2009 2010 2011 2012 2013 (1) EBITDA (2) Competitive advantages $460 $451 $430 $430  Global industry leader  Diversification: geography, markets, substrates $288  Significant timberland holdings  Modest leverage profile and substantial liquidity (1) 2009 2010 2011 2012 2013 (1) Twelve months ended July 31, 2013 (2) 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 expense 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 financial schedules that are part of this presentation Investor Presentation, October 2013 | 8

Rigid Industrial Packaging & Services (Dollars in millions) Net sales Served markets $3,076 $3,044 $3,014 $2,588 Pharmaceutical $2,267 Lubricants, Oils and Additives Agriculture Chemicals 2009 2010 2011 2012 2013 (1) EBITDA (2) Competitive advantages $332 $300  Leading product position $280 $278  Strong global footprint $196  Compelling value proposition  Strong customer relationships  Largest global drum reconditioner 2009 2010 2011 2012 2013 (1) (1) Twelve months ended July 31, 2013 (2) 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 expense 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 financial schedules that are part of this presentation Investor Presentation, October 2013 | 9

Flexible Products & Services (Dollars in millions) (1) Net sales Served markets $538 $453 $449 Other Food, Agriculture & Minerals $233 Chemicals $44 (2) 2009 2010 2011 2012 2013 EBITDA (1),(3) Competitive advantages $32  Market Size Attractive growth opportunities include:  Flexible intermediate bulk container $3 billion  Shipping sacks $5 billion $17  Geotextiles and other woven products $4 billion $12  Leading global position in FIBC market $10  50/50 joint venture $2  30% of customers use rigid industrial packaging products (2)  2009 2010 2011 2012 2013 Greif Business System capabilities (1) 2009 reflects only information for the multiwall bag business in North America. 2010 reflects the acquisition of four major FIBC companies between February and September. (2) Twelve months ended July 31, 2013 (3) 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 expense 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 financial schedules that are part of this presentation Investor Presentation, October 2013 | 10

Paper Packaging (Dollars in millions) Net sales Served markets $777 $714 $675 $624  Automotive  Building Products $458  Food  Packaging 2009 2010 2011 2012 2013 (1) (2) EBITDA Competitive advantages $140 $115  Champion of the independent $106  $85 Integrated containerboard network  $57 Highly efficient sheet feeder footprint  Efficient Frontier strategy 2009 2010 2011 2012 2013 (1) (1) Twelve months ended July 31, 2013 (2) 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 expense 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 financial schedules that are part of this presentation Investor Presentation, October 2013 | 11

Land Management (Dollars in millions) Net sales $33 $27  Alabama  Louisiana $21 $21  Mississippi $16 2009 2010 2011 2012 2013 (1) (2) EBITDA Competitive advantages $25 $22  Book value $216 million at July 31, 2013 $21 $19  Total acres owned 280,950  Core timberland 235,550 $11  45,400 (3) Special use land  Active harvesting and regeneration in U.S. to achieve sustainable long-term yields  Revenue growth opportunities 2009 2010 2011 2012 2013 (1) (1) Twelve months ended July 31, 2013 (2) 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 expense (3) Includes 11,850 acres in Canada 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 financial schedules that are part of this presentation Investor Presentation, October 2013 | 12