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Annual Meeting of Stockholders
February 25, 2013
Annual Meeting of Stockholders, February 25, 2013 | 2
Forward-Looking Statements
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.
Annual Meeting of Stockholders, February 25, 2013 | 3
Board of Directors
Vicki L. Avril Chief Executive Officer
and President of TMK
IPSCO
Bruce A. Edwards Global Chief Executive
Officer of DHL Supply
Chain
Mark A. Emkes Commissioner of
Finance and
Administration, State
of Tennessee
John F. Finn President & Chief
Executive Officer
of Gardner, Inc.
Michael J. Gasser
Chairman
Daniel J. Gunsett
Senior Partner
Baker Hostetler LLP
Columbus, Ohio
Judith D. Hook
Investor
John W. McNamara President & Owner of
Corporate Visions
Limited, LLC
Patrick J. Norton Former Executive Vice
President & Chief
Financial Officer of The
Scotts Miracle-Gro
Company
David B. Fischer President and Chief
Executive Officer
Annual Meeting of Stockholders, February 25, 2013 | 4
Executive Officers
David B. Fischer President and Chief Executive Officer
Gary R. Martz Executive Vice President, General Counsel , Secretary and President of Soterra LLC
Robert M. McNutt Senior Vice President & Chief Financial Officer
Karen P. Lane Senior Vice President, People Services and Talent Development
Ivan Signorelli Senior Vice President and Group President, Rigid Industrial Packaging & Services – Europe, Middle East and Africa, Asia, Fustiplast & Earthminded LCS
Kenneth B. Andre, III Vice President, Corporate Controller
Nadeem Ali Vice President, Treasurer
Addison P. Kilibarda Vice President and Group President, Rigid Industrial Packaging & Services - Americas, CLCM, Delta and Greif Packaging Accessories
Douglas W. Lingrel Vice President, Chief Information Officer
Michael S. Mapes Vice President and Divisional President, Flexible Products & Services
Peter G. Watson Vice President and Group President, Paper Packaging, Global Sourcing & Supply Chain Services and Greif Business System
Sharon R. Maxwell Assistant Secretary
Annual Meeting of Stockholders, February 25, 2013 | 5
Ernst & Young LLP
Brenda McAuliffe Coordinating Partner
Jeff Harden Senior Manager
Annual Meeting of Stockholders, February 25, 2013 | 6
Safety
34 million man hours
8.5 million man hours worked on
facilities with one or zero medical cases
47 fewer injuries in 2012 versus 2011 on same man hour basis
269 medical cases globally versus 820 just in North America 15 years ago
3.51
3.18
2.68 2.56
1.86
1.56
2007 2008 2009 2010 2011 2012
Medical Case Rate(1)
(1) Medical Case Rate is calculated using the number of recordable injuries (other than first aid) and illnesses occurring among full-time employees over a given period of time and is generally measured annually.
Annual Meeting of Stockholders, February 25, 2013 | 7
2012 Highlights
Improved safety performance
Streamlined structure to better enable collaboration across:
Businesses
Geographies
Achieved record:
Consolidated net sales of $4.3 billion
Results in Paper Packaging
Net sales of $714 million
Operating profit of $84 million
Free cash flow of $304 million
Reduced long-term debt outstanding by $196 million
Amended $1 billion of Senior Secured Credit Facilities
Annual Meeting of Stockholders, February 25, 2013 | 8
2012 Priorities Dollars in millions
Oct. 31, 2012 Oct. 31, 2011 Change
Increasing Free Cash Flow(1) $303.7 $6.5 $297.2
Improving Working Capital(2) $202.0 $353.1 $(151.1)
Integrating Acquisitions Realizing synergies from bolt-on acquisitions Executing strategies for 3 global growth platforms Continuing to seek additional cost savings
(1) Free cash flow is defined as cash provided by operating activities less capital expenditures and timberland purchases (2) Working capital represents current assets less current liabilities 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
Annual Meeting of Stockholders, February 25, 2013 | 9
2013 Priorities
Focus on generating cash
Continue to integrate and promote global growth strategies
Seek additional synergies across businesses and geographic regions
Conform manufacturing footprint to customer demand trends
Move closer to achievement of long-term sustainability goals
Enhance position in North America
Annual Meeting of Stockholders, February 25, 2013 | 10
Innovation
Rigid Industrial Packaging & Services
NexDRUM™ provides excellent durability maximizing consistency in diameter, wall thickness and weight using less resin. It is lighter in weight, but sturdier and handles the rigors of stacking better than traditional plastic drums. Flexible Products & Services
PackH2O is designed for the human transport of water in distressed regions and disaster zones. It is intended to replace the use of jerry cans and other potentially contaminated containers. PackH2O also includes buckles and a spigot made by Greif’s Packaging Accessories business.
Annual Meeting of Stockholders, February 25, 2013 | 11
Innovation
Paper Packaging
LeaderCorr™ is a 100 percent sustainable and recyclable substrate with excellent print performance. It is an ideal replacement for foam board products often used for high quality retail signage and display in stores. At the end of its useful life LeaderCorr™ products are placed directly into the recycle stream with other corrugated material. Land Management
The purpose of the Pollinator Habitat Improvement project is to determine if modified land management practices will reduce costs associated with timber management while at the same time provide ecological and environmental benefits to pollinator species, local wildlife and ecosystems.
Annual Meeting of Stockholders, February 25, 2013 | 12
Strategy Drivers: Next 3-5 Years
Population growth
Urban expansion
Scarcity of resources
Environmental challenges
North American energy revolution
Cross-business, cross-geography integration
Annual Meeting of Stockholders, February 25, 2013 | 13
Portrait of a Sustainability-Driven Innovator – Greif
Four keys to Greif’s sustainability agenda: Top management attention to sustainability
Collaboration with customers and nongovernmental
organizations on sustainability-related issues
Business model innovation – working with customers
New internal organization structures
Source: MIT Sloan Management Review Winter 2013
Annual Meeting of Stockholders, February 25, 2013 | 14
Michael J. Gasser Global Sustainability Award
2012 Award Winner: CorrChoice
LeaderCorr™:
Replaces traditional foam board that is not recyclable
Put into each store’s OCC stream
Becomes an income source when recycled
Enables retailers move closer to a zero waste goal
FINANCIAL REVIEW
Annual Meeting of Stockholders, February 25, 2013 | 16
Select Financial Measures
$473 million of net cash provided by operating activities
Capital expenditures of $166 million, excluding $3.7 million of timberland purchases
Record $304 million of free cash flow
$1.2 billion at fiscal year-end 2012
Debt outstanding declined approximately $200 million during fiscal 2012
Amended $1 billion Senior Secured Credit facility in December 2012
Implemented more favorable terms for accounts payable
Improved inventory planning
Installing better processes
Exceeded objective of $25 million source of capital
Dollars in millions
349.6 353.1
202.0
2010 2011 2012
Working Capital(1)
13.0 6.5
303.7
2010 2011 2012
Free Cash Flow(2)
953.1
1371.4
1175.3
2010 2011 2012
Long-Term Debt
(1) Working capital represents current assets less current liabilities (2) Free cash flow is defined as cash provided by operating activities less capital expenditures and timberland purchases 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
Annual Meeting of Stockholders, February 25, 2013 | 17
Financial Profile Dollars in millions
* CAGR: Compounded Annual Growth Rate
(1) EBITDA is defined as net income plus interest expense, net plus income tax expense less equity earnings (losses) of unconsolidated subsidiaries, net of tax plus depreciation, depletion and amortization
(2) Special items include restructuring charges, restructuring-related inventory charges, acquisition-related costs, non-cash asset impairment charges and debt extinguishment charges. See GAAP to non-GAAP reconciliation included in the Appendix of this presentation
(3) Working capital represents current assets less current liabilities (4) Free cash flow is defined as cash provided by operating activities less capital expenditures and timberland purchases (5) Net debt represents long-term debt plus the current portion of long-term debt plus short-term borrowings less cash and cash equivalents
Note: 2009 amounts presented as originally reported; 2010 to 2012 amounts presented as reported in the Form 10-K for the year ended October 31, 2012
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
2009
2010
2011
2012
CAGR* 2009-2012
Net sales $ 2,792 $ 3,462 $ 4,248 $ 4,270 15%
EBITDA(1) $ 327 $ 430 $ 461 $ 432 10%
Net income attributable to Greif, Inc. $ 132 $ 203 $ 178 $ 126 (2%)
Net income attributable to Greif, Inc. before special items(2) $ 194 $ 248 $ 221 $ 155 (7%)
Working capital(3) $ 272 $ 350 $ 353 $ 202 (9%)
Net cash provided by operating activities $ 267 $ 178 $ 172 $ 474 21%
Free cash flow(4) $ 141 $ 13 $ 7 $ 304 29%
Net debt(5) $ 646 $ 920 $ 1,394 $ 1,186 22%
Annual Meeting of Stockholders, February 25, 2013 | 18
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GEF IP PKG SON
Ten-Year Performance
Stock Appreciation
Cash Dividends
$0.27 $0.28 $0.28 $0.30
$0.40
$0.60
$0.92
$1.32 $1.56 $1.60 $1.68
0.41 0.41 0.44 0.59
0.89
1.37
1.97
2.27 2.39
2.51 2.51
Annual Meeting of Stockholders, February 25, 2013 | 19
2013 Outlook
Factors impacting global economy expected to continue
Slight increase in volumes assuming no shock to the economy and relatively stable markets
Margin improvement based on stable raw material costs, acquisition integration benefits, improved operating performance
Full realization of $50 per ton containerboard increase
EBITDA(1) between $450 million and $500 million
Capital expenditures, less timberland purchases, between $140 million and $150 million
Lower net interest expense
Effective tax rate between 31 percent and 34 percent
(1) EBITDA is defined as net income plus interest expense, net plus income tax expense less equity earnings (losses) of unconsolidated subsidiaries, net of tax plus depreciation, depletion and amortization
APPENDIX
Annual Meeting of Stockholders, February 25, 2013 | 22
(Dollars in millions)
2009 2010 2011 2012
GAAP net income attributable to Greif, Inc. 132.4$ 202.8$ 177.5$ 126.1$
Restructuring charges, net of tax 52.1 22.4 22.3 23.2 Restructuring-related inventory charges, net of tax 8.5 0.1 - -
Acquisition-related costs, net of tax - 22.8 17.8 5.7
Non-cash asset impairment charges - - 3.3 -
Debt extinguishment charges, net of tax 0.6 - - -
Timberland disposals, net of tax - - - -
Net income attributable to Greif, Inc.
before special items 193.6$ 248.1$ 220.9$ 155.0$
GAAP to Non-GAAP Reconciliation Net Income Before Special Items
Note: 2009 amounts presented as originally reported; 2010 to 2012 amounts presented as reported in the Form 10-K for the year ended October 31, 2012
Annual Meeting of Stockholders, February 25, 2013 | 23
2009 2010 2011 2012
Net income 132.4$ 208.5$ 180.4$ 131.6$
Plus: interest expense, net 53.6 65.5 76.0 89.9
Plus: income tax expense 37.8 43.5 65.0 56.8
Less: equity earnings of unconsolidated affiliates, net of tax (0.4) 3.6 4.8 1.3
Plus: depreciation, depletion and amortization expense 102.7 116.0 144.2 154.7
EBITDA 326.9 429.9 460.8 431.7
(Dollars in millions)
GAAP to Non-GAAP Reconciliation EBITDA(1)
(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: 2009 amounts presented as originally reported; 2010 to 2012 amounts presented as reported in the Form 10-K for the year ended October 31, 2012
Annual Meeting of Stockholders, February 25, 2013 | 24
GAAP to Non-GAAP Reconciliation Free Cash Flow(1)
2009 2010 2011 2012
Cash from operations 266.5$ 178.1$ 172.3$ 473.5$
Less: capital expenditures & timberland purchases 125.6 165.1 165.8 169.7
Free cash flow 140.9 13.0 6.5 303.8
Fiscal Year Ended October 31
(Dollars in millions)
(1) Free cash flow is defined as cash provided by operating activities less capital expenditures and timberland purchases Note: 2009 amounts presented as originally reported; 2010 to 2012 amounts presented as reported in the Form 10-K for the year ended October 31, 2012
Annual Meeting of Stockholders, February 25, 2013 | 25
GAAP to Non-GAAP Reconciliation Balance Sheet Data
2009 2010 2011 2012
Long-term debt 721.1$ 953.1$ 1,371.4$ 1,175.3$
Plus: current portion of long-term debt - 12.5 12.5 25.0
Plus: short-term borrowings 37.1 60.9 137.3 77.1
Less: cash and cash equivalents 111.9 107.0 127.4 91.7
Net debt 646.3$ 919.5$ 1,393.8$ 1,185.7$
Current assets 833.8$ 1,135.9$ 1,285.1$ 1,064.0$
Less: current liabilities 562.1 786.3 932.0 862.0
Working capital 271.7$ 349.6$ 353.1$ 202.0$
(Dollars in millions)
Note: 2009 amounts presented as originally reported; 2010 to 2012 amounts presented as reported in the Form 10-K for the year ended October 31, 2012