Bank of America Merrill Lynch U.S. Basic Industrials Conference - December 11, 2014
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Bank of America Merrill Lynch
U.S. Basic Industrials Conference
December 11, 2014
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 October 31, 2013. The company assumes no obligation to update any forward-
looking statements.
Regulation G
This presentation includes certain non-GAAP financial measures like operating profit that excludes
special items such as restructuring charges, acquisition-related costs, timberland gains and non-cash
asset impairment charges that are volatile from period to period. Management of the company uses the
non-GAAP measure to evaluate ongoing operations and believes that this non-GAAP measure is 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. A table showing the
reconciliation between GAAP and non-GAAP operating profit is presented on slide eleven of this
presentation and on the Greif website at www.greif.com.
2
Our success is built on our strong heritage and foundation
• Founded in 1877 as a packaging company
• Initial public offering in 1926
• Greif has endured and succeeded through 19
recessions and 3 depressions
• Our success is built on our strong heritage and
foundation.
• Continue to live The GREIF Way.
3
World’s Leading Industrial Packaging Company
Diversified Business Platform and Global Footprint
$4.4 Billion
Net sales for 12 months ended
July 31, 2014 13,500
Approximate number of
$4,422 1
employees worldwide
Rigid
Industrial Flexible Paper Land
Packaging Products Packaging Management
& Services & Services
$3,1061 $4401 $8481 $281
300
Greif serves diverse end markets such as chemicals, >50 Nearly 300 operations
paints and pigments, food and beverage, petroleum,
Operations in more than
adhesives, industrial coatings, agricultural,
50 countries
pharmaceutical, minerals and building products
1
Twelve months ended July 31, 2014, in millions of dollars (unaudited)
4
Safety is Priority #1
Greif Medical Case Rate
# of injuries per 100 employees
4.2
3.8
3.5
3.2 67% decline
2.7 2.6
1.9
1.6 1.5 1.4
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
Source: Company Data
5
Maximizing Long-Term Shareholder Value
Greif Historic Stock Returns1
Cumulative percent change – November 2002 - October 2014
Growth Through
GBS Business
Earn & Grow Adjacencies & Our Future
Transformation Integration
Extensions
• 2003-2005 • 2006-2008 • 2009-2011 • 2012-2014 • Earn right to grow
• GBS Transformation • Leveraged GBS for cost • Launched 3 growth • Increased focus on cash • Accelerating value
launched in 2003 savings & capacity platforms: and business integration creation
• Obtained remaining increases 1. Flexibles • Pursued additional
CorrChoice interest • Strong go to market 2. LifeCycle Services synergies across
• Average annual stock strategy (rigid drum businesses &
return = 33% • Executed M&A activities reconditioning) geographic regions
–IPS rollup 3. IBC • Average annual stock
–Delta Petroleum • Recession in Western return = 2%
–Blagden Packaging Europe
• Start of the Great • Average annual stock
Recession return = 8%
• Average annual stock
return = 13%
Nov-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Jan-16 Oct-17
1
Based on adjusted close price incorporating dividends and stock splits
6
Transformation – Accelerating Value Creation
Vision & aspiration
“The Greif Way”
Strategy
Deliver profitable Optimize the portfolio Increase cash
customer growth for the future efficiency
• Best in class GBS • Portfolio optimization • SG&A efficiency
processes linked as one – Transform / fix – Businesses
team focused on creating – Protect the core – Shared services / facilities
customer value
– Invest to grow – Corporate
– Potential Divest
ComEx OpEx S&SC • Working capital reduction
• Resource allocation process
Talent & organizational health
Performance management
Collaboration & engagement across businesses
7
The Safe Choice – Best At Protecting Customers’ Products
Greif Aspiration
Deliver value that meets The global leader in
and exceeds our industrial packaging
customers’ needs
• Continually strive to
One increase shareholder
• Our focus is always on the value
customer Promise
• Maintain high ethical
• Earn the right to be the standards in everything
Safe Choice we do
• Our customer relationships Long-term • Relentless pursuit of
are built on trust profitable excellence and
• Constant innovation to growth continuous cost
differentiate One One improvement
• Strive to deliver products Team Purpose • Industry leader in
with zero defects, on time sustainability
Work as one team across all geographies and businesses
• A safe work environment - zero accidents
• Committed to developing people and maintaining
an engaged team
• Diversity working through The Greif Way
• Performance management with clear accountability
8
Diversified Business Platform
Twelve months ended July 31, 2014
(Dollars in millions)
Unaudited
Sales $ 4,422
Operating Profit $ 302
Rigid Paper Flexible Land
Industrial Packaging Products & Management
Packaging Services
& Services
Sales $ 3,106 Sales $ 848 Sales $ 440 Sales $ 28
Operating Profit $ 169 Operating Profit $ 124 Operating Profit $ (37) Operating Profit $ 46
• Chemicals • Corrugator Converters • Food • 251,350 acres in U. S.
• Paints • Paper Converters • Chemicals • Alabama
• Pigments • Agricultural • Mining and Minerals • Louisiana
• Petroleum • Advertising/Retail • Fertilizer • Mississippi
• Agricultural • Pharmaceutical • 10,345 acres in Canada
• Pharmaceutical
9Strategy to Optimize Business Portfolio
Transform or Fix Invest To Grow
Unsatisfactory performance, but remain very strategic Businesses that have the potential for significant
to Greif’s portfolio & have upside potential to become profitable growth and are seen as key to building
financially attractive Greif’s next chapter.
Potentially Divest Protect the Core
Businesses that are (1) non-core (2) in unattractive Strategic businesses; Greif is the natural owner; future
markets (3) high risk or (4) perpetual underperformers growth expectations are low but attractive returns are
expected to continue.
10Select Fourth Quarter and Fiscal 2014 Financial Information
Greif, Inc. and Subsidiary Companies
Unaudited
$ millions
Three months ended Twelve months ended
October 31, 2014 October 31, 2014
Net sales $1,082 $4,378
GAAP to Non-GAAP Reconciliation
Operating profit $ 92.9 $ 297.9
Restructuring charges 5.6 16.1
Acquisition-related costs 0.4 1.6
Timberland gains - (17.1)
Non-cash asset impairment charges 19.5 42.0
1
Operating profit before special items $ 118.4 $ 340.5
2
Long-term debt $1,088
1
Preliminary amount above does not include any estimate for possible non-cash impairment of goodwill and intangible assets associated with Flexible Products & Services segment
as management is still completing its analysis. Total goodwill and intangible assets for this segment are $49.7 million and $13.2 million, respectively.
2
At October 31, 2014 and long-term debt was $1,207 at October 31, 2013.
11Performance Metrics
One Team
• Medical Case Rate
• Organizational Health Index
One Promise
• Customer Satisfaction Score
One Purpose
Value (%)
• Return On Net Assets
• Operating Working Capital
• Operating Profit
Gross Profit
SG&A
Drivers of Value
• Targeted growth by Business
• Innovation revenue mix 10%
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