January 2021 Investor Presentation · 2021. 1. 28. · EcoVadis. Awarded Gold Rating in...

January 2021Investor Presentation

January 2021 – P.2

Safe harborFORWARD-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 the most recently filed Form 10-K. The company assumes no obligation to update any forward-looking statements.

REGULATION G

• This presentation includes certain non-GAAP financial measures like Adjusted 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.


Who we are


Leading industrial packaging solutions provider

(1) A summary of all adjustments that are included in the Adj. EBITDA is set forth in the appendix of this presentationNote: 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 of this presentation.

Highlights and capabilities

• Leading product positions in multiple packaging substrates

• Diverse geographic portfolio (presence in 40+ countries) with wide market reach

Differentiations• Demonstrated commitment to

customer service and industry partnership

• Broadest industrial packaging product portfolio capability of fulfilling customer needs

FY 2020 net sales by segment (%)

Rigid IndustrialPackaging & Services

Paper Packaging &Services

Flexible Products &Services

Land Management

FY 2020 Adj. EBITDA1 by segment (%)

Rigid IndustrialPackaging & Services

Paper Packaging &Services

Flexible Products &Services

Land Management

FY 2020 Performance ($M)

Revenue $4,515.0

Adj. EBITDA1 $642.6

Adjusted EBITDA margin 14.2%

Who we are How we operate Why invest in Greif? Business segment overview Appendix


Leading positions in multiple packaging substrates

Fibre

IBC

#3

Industrial Closures

Plastic

#2

#1

Steel

#1

Flexible IBCs

Note: Ranking denotes standing in global market. Based on company estimates.

Industrial Packaging

Tube & Core

Upstream Operations

Uncoated Recycled Paperboard (URB)

Coated Recycled Paperboard (CRB)

#2

#3

#2Recovered Fiber Group

Top 10

#1#1



Engaged Teams Customer Service Excellence Enhanced PerformanceHealth and Safety

• Recorded 24% fewer medical cases with 1M+ more man hours worked vs. 2019

‒ High focus on LIFE risk identification / mitigation

• Implemented enhanced protocols in response to COVID-19

Colleague Engagement

• Achieved 3rd consecutive Gallup colleagueengagement score improvement

• Expanded Colleague Resource Groups tofurther advance inclusivity

Customer Satisfaction Index

• Achieved record trailing four quarter CSI performance (93.0)

Net Promoter Score

• Achieved record Net Promoter Survey score (67)

Adjusted Free Cash Flow

• FY20 Adj. FCF = $347.6M, + ~$78M vs. 2019

Sustainability

• Awarded 3rd consecutive gold rating by EcoVadis

• Awarded 3rd consecutive “A-” leadership ranking by CDP

• Launched FY21 ESG materiality assessment

Fiscal Year (FY20) highlightsWho we are How we operate Why invest in Greif? Business segment overview Appendix

Strong performance across all strategic priorities in FY20


How we operate


Greif’s culture is the foundation for our businessThe Principles That Guide Our Business Behaviors


Communicate with respect,

candor, and trust

Act with the mindset of a

champion

Model the behaviors of a servant leader

Think Greif first

EthicalWe can be trusted to do what is right. Greif’s

Code of Conduct and Ethics guides our decisions and actions.

Strong Through Diversity

We encourage and embrace our diversity of culture, language, location and thought. Our differences define but do not divide us; our common interests unite us. From the many,

we are one: Greif.

Serious About Sustainability

We honor our history as we focus on our future. We use financial, natural and human resources wisely without compromising the

ability of future generations to meet their needs.

Committed to Continuous

Improvement

We always look for ways to make our work, our products, our services and our Company

better.



To safely package and protect our customers goods and materials to serve the essential needs of communities around the world

In industrial packaging, be the best performing customer service company in the world

Engaged Teams Differentiated Customer Service Enhanced Performance• Best in class health and safety

• Top decile colleague engagement

• Accountability aligned to value creation

• Deliver Superior customer experience

• Create value for our customers through a solutions based approach

• Earn our customers trust and loyalty

• Value driven growth

• Margin and Free Cash Flow expansion via the Greif Business System

• Sustainability commitment

The Greif Business System

THE GREIF WAY

Vision

StrategicPriorities

Values

Key Enabler

Purpose

Greif’s purpose, vision and three strategic priorities

1 2 3


21% Higher profitability

17% Higher productivity

10% Higher customer metrics

70% Fewer safety incidents

59% Less turnover

41% Lower absenteeism

28% Less shrinkage

Strategic priority: engaged teamsGallup Overall Engagement Score

1

3.81

3.97

4.17

3.7

3.8

3.9

4.0

4.1

4.2

2018 2019 2020

74th

55th

Manufacturing sector percentile ranking 89th

Teams in the top quartile of those Gallup1 has studied have…

(1) According to “The Relationship Between Engagement at Work and Organizational Outcomes: 2016 Q12 Meta- Analysis


Safe and engaged colleagues drive improved operating and financial performance


30

40

50

60

70

80

90

100

FY15 FY16 FY17 FY18 FY19 FY20 Goal

Note: CSI is an internal measure of a plant’s or business’ performance against selected parameters that customers experience, giving us an indication of our level of meeting our customers basic needs. Components include: customer complaints received; customer complaints open greater than 30 days; credits raised; number of late deliveries; and the number of deliveries.

Strategic priority: differentiated customer service Customer Satisfaction Index (CSI)

5

11

23

38

72

51

Wave 10

Wave 1

Net Promoter Score (NPS)

Detractors Passive Promoters

Net Promoter Score

= 67

= 40

2


68% improvement in Net Promoter Score since inception


Sharp focus on generating reliable and sustainable cash flow through cycles

Adj. Free Cash Flow over time ($M)

Strategic priority: generate sustainable Free Cash Flow3


$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

FY15 FY16 FY17 FY18 FY19 FY20 Column1 FY22Commitment

‘22 Commitment: $410 - $450M


There is a solid link between sustainability / ESG, customer service excellence and value creation

ESG factorsEnvironment Social Governance

Enhancing/promoting circular options Reducing scrap Minimizing energy Reducing GHG emissions Reducing water usage Reducing raw materials Improving logistics, transportation

Improving safety Promoting diversity / inclusion Protecting human rights in the workplace Improving working conditions Enhancing colleague training and development

Maintaining compliance with environmental, safety, antitrust, antibribery and other laws Enhancing ethics Implementing fair business practices

• Improves EBITDA through higher sales and reduced costs

• Improves EBITDA through lower costs and higher colleague retention

• Improves EBITDA by reducing fines and compliance costs


Strategic priority: pursuing sustainability through ESG 3


Targets Recognition

Diversity & Inclusion Waste Responsibility Sustainability

90%Percent of waste diverted

from landfills from all legacy Greif production facilities by

the end of FY25

Energy & Emissions1 Water

10%Reduction in BOD

discharged in kilograms per metric ton of production by

the end of FY25

Corporate ESG Leadership

ISS ESGRated Greif “Prime” status

for corporate ESG performance with above sector-specific averages

CDPAwarded Greif “A-

Leadership” ranking for third consecutive year as part of their annual climate change

assessment

Newsweek recognized Greif on its list of America’s Most Responsible

Companies

EcoVadisAwarded Gold Rating in

sustainability performance for the third consecutive year

25%Increase in proportion of

women in management by the end of FY25

10%Reduction in energy and greenhouse gas (GHG)

emissions per unit of production


Strategic priority: key sustainability goals and recognition3

1Note: new 2030 target in development as current target recently expired


Why invest in Greif?


Global trends support Greif’s future growth

Trend Details Greif Actions

Growth of emerging economies• Emerging economies driving

greater consumption of goods and infrastructure

• Optimize capacity to serve increased demand from emerging economies

Expanding influence of sustainability and multi-use packaging

• Paper products and plastic-based packaging (especially IBCs) are easily reused or recycled

• Expand IBC collection and reconditioning network and expand paper solutions

Expansion of e-commerce adoption

• Increasing demand for delivery in consumer segments

• Focus on meeting demand with corrugated and other paper products

Increasing importance of food safety

• Heightened attention toward food safety and transportation

• Further penetrating food and beverage segments in RIPS and PPS




• Positive demand for bulk /commodity chemicals

• Negative but improving demand for lubricants, specialty chemicals and industrial paints

• Weak demand for food (poor conical season)

End markets continue to rebound from COVID-19 impact

RIPS steel drum demand has improved

-5%

0%

5%Q4 '20 Aug '20 Sep '20 Oct '20

YoY comparison (units per day)



-5%

0%

5%Q4 '20 Aug '20 Sep '20 Oct '20

20%

25%

30%

35%

40%Q4 '20 Aug '20 Sep '20 Oct '20

• Positive demand from independent and integrated customers across range of end markets (i.e. durables, food, ag, e-commerce)

Robust demand for corrugated sheets and improving demand for tubes and cores

Solid demand seen in PPS’ converting operationsCorrChoice YoY comparison (MSF per day) IPG (tube / core) YoY comparison (units per day)

• Positive demand from construction and film

• Soft but improving demand from paper mills and metal strapping

• Weak demand from textile (carpet, yarn, cloth)



Disciplined capital allocation priorities are in placeReinvesting in the business De-levering the balance sheet Returning cash to shareholders

Fund maintenance to sustain the “cash machine” and organic growth opportunities that exceed required returns

Reduced net debt by ~$294M in FY20

Current compliance leverage ratio = 3.66x; on track to achieve targeted leverage ratio of 2.0 – 2.5x by 2023

Returned more than $104M to shareholders through dividends in FY20

Remain committed to potentially growing dividend once target leverage ratio is achieved

Financial strength supported by focus on strong Free Cash Flow generation



Attractive valuation relative to peer companiesForward EV to EBITDA 2021E FCF Yield

0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x 18.0x

O-I Glass

International Paper

Westrock

Greif

Berry Global Group

Graphic Packaging

Silgan Holdings

Sonoco Products

Sealed Air

Packaging Corps of America

Crown Holdings

Avery-Dennison

Aptargroup

Ball

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

Ball

Aptargroup

Crown Holdings

Avery-Dennison

Packaging Corps of America

Silgan Holdings

O-I Glass

Graphic Packaging

Sealed Air

Sonoco Products

International Paper

Greif

Westrock

Berry Global Group

Note: Data as of 1/22/2021 and sourced from IR Insight.



Fiscal 2022 financial commitments updated at FQ4 2020$M FY ‘22 Adj.

EBITDA1FY ‘22 Adj.

Free Cash Flow2

RIPS $314 – $341

PPS $437 – $477

FPS $28 – $38

Land $6 – $9

Total Company $785 – $865 $410 – $450

XXXXSubstantial increase in Free Cash Flow on the horizon(1) No reconciliation of the fiscal year 2022 Adjusted EBITDA, a non-GAAP financial measure which excludes gains and losses on the disposal of businesses, timberland and property, plant and equipment,

acquisition costs, non-cash pension settlement charges, restructuring and impairment charges is included in this presentation because, due to the high variability and difficulty in making accurate forecasts and projections of some of the excluded information, together with some of the excluded information not being ascertainable or accessible, we are unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measure without unreasonable efforts.

(2) No reconciliation of the fiscal year 2022 Adjusted free cash flow, defined as net cash provided by (used in) operating activities, less cash paid for purchases of properties, plants and equipment, plus cash paid for acquisition-related costs, plus cash paid for debt issuance costs, plus cash paid for incremental COVID-19 costs, net, plus cash paid for acquisition-related Enterprise Resource Planning (ERP) systems, is included in this presentation because, due to the high variability and difficulty in making accurate forecasts and projections of some of the excluded information, together with some of the excluded information not being ascertainable or accessible, we are unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measure without unreasonable efforts.

Current FY2022 commitment vs. June 2019

• RIPS Adj. EBITDA increase driven product mix; portfolio optimization and greater efficiencies

• PPS Adj. EBITDA decrease driven by COVID-19 delay to operational enhancements; delayed network optimization benefit; freight / insurance cost inflation; and CPG divestiture

• Adj. Free Cash Flow flat to prior commitment aided by lower cash taxes, interest and capital expenditures



Why invest in Greif?Robust and diverse productportfolio with exposure to a

variety of end markets

Compelling customer value proposition due to

demonstrated commitment to customer service

Numerous avenues for incremental low-risk growth

and margin enhancement

Compelling dividend and opportunity for free cash

flow expansion

We have leading market positions (e.g. steel drum, fiber

drum, large plastic drum, uncoated recycled board) that

serve a variety of markets globally.

We are pursuing our vision: in industrial packaging, be the best performing customer

service company in the world. We partner with customers to help solve their problems and

grow their businesses.

We use the Greif Business System to drive a sharp focus on cost control and operating discipline. We employ a risk-adjusted return process that

drives capital investment. We are growing close to the core in plastics and increasing our containerboard integration.

We have a clear and consistent capital allocation philosophy, offer an industry

leading dividend and are laser focused on generating growing

and sustainable Free Cash Flow.

Business segment overview


RIPS: broad product and services capabilityFibre

#1

IBC

#3

Closures

#1

Plastic

#2#1

Steel


FillingEarth Minded


RIPS is the most comprehensive customer solutions provider in the industry


Highlights and Capabilities Differentiation

2020 Net Sales By Geography 2020 Revenue Mix 2020 Top End Markets By Revenue

• Extensive global expertise and operational footprint

• Large product shares in steel and fibre and fast growing IBC business

• FPS cross selling opportunities

(1)A summary of all adjustments that are included in the Adj. EBITDA is set forth in the appendix of this presentation(2)Includes packaging accessories, reconditioning, water bottles, pails and other miscellaneousNote: 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 of this presentation

RIPS: highlights and differentiation• Industry’s most comprehensive

product line offering

• Ability to serve customers globally

• Differentiated customer service focus; long tenured relationships

2020 Financials ($M)Revenue $2,298.9

Adj. EBITDA1 $297.5

Adj. EBITDA margin 12.9%


Petrol Prod, Lube Oils & Adds

Specialty Chemicals

Bulk/Commodity Chemicals

Solid Food Prod, Pastes & EdOilsPaints, Coatings, Inks,AdhesivesPackaging Distributors

Juices & Beverage Products

Agro Chemicals

Blenders, Fillers & ChemDistr.Pharmaceutical & PersonalCareFlavours & Fragrances

Other

Steel

Plastic

Fibre

IBC

Filling

All Other

United States

Europe, Middle Eastand Africa

Asia Pacific andOther Americas


RIPS: expanding reconditioning for sustainable solutionsWho we are How we operate Why invest in Greif? Business segment overview Appendix

CollectionPickup conditions vary from plant to plant and country to country

Recycle ComponentsRaw materials that cannot be used are recycled for alternative purposes

Clean, Reshape, ReconditionGreif facilities clean, wash, rebottle, recondition, test and inspect as required

ReuseCompanies that reuse through reconditioning can make a more sustainable impact than recycling

ReportingCapability to track and evaluate your carbon footprint with


PPS: broad portfolio offering a variety of paper products

Note: Ranking denotes standing in the U.S. Based on company estimates.

Uncoated Recycled Paperboard

#2

Coated Recycled Paperboard

#3

Tube & Core

#2

Containerboard

C

Corrugated Products

Recovered Fiber

Mills

Converting




North America

2020 Net Sales By Geography End Markets

North America

PPS: highlights and differentiation

• Niche position in containerboard

• Leadership position in URB and tubes/cores

• Unique converting capabilities

• Speed – response and lead times• Breadth of product offerings• Long-standing customer

relationships • Best in class customer service

• Containerboard serves a variety of industrial and consumer needs

• URB serves predominantly industrial end markets

• CRB serves predominantly consumer end markets

2020 Financials ($M)Revenue $1,916.9

Adjusted EBITDA1 $306.4

Adjusted EBITDA margin 16.0%

(1)A summary of all adjustments that are included in the Adj. EBITDA is set forth in the appendix of this presentation.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 of this presentation



Transport / Logistics

Procurement / Materials

SG&A

Other Fixed Costs

Operational Enhancements

Realized synergies and FY22 estimate


PPS: Caraustar integration proceeding on planCaraustar run-rate synergy detail

$0

$10

$20

$30

$40

$50

$60

$70

$80

DealAssumption

FY19Realized

FY20Realized

FY22Expected

Anticipate a minimum of $70M in synergies within 36 months of acquisition


RecoveredFiber Group

Packaging Industry

Variousindustries

Folding carton

and other customers

Containerboard~1M tons

Uncoated Boxboard~700K tons

Coated Boxboard~200K tons

CorrugatedNetwork of sheet feeders

Tubes & Coresconverting plants across the US

PPS: expanded, integrated and national paper networkWho we are How we operate Why invest in Greif? Business segment overview Appendix


PPS: IPG benefits from diverse end markets

Top 10 Tube/core revenue by end market1

(1)Based on FY 2020 sales

• IPG’s diversified end market revenue provides broad exposure to US economic activity

• Tube/core market offers limited risk as paper remains best substrate due to performance characteristics

‒ URB preferred to containerboard due to performance, board cost and adhesive cost

‒ URB preferred to plastic due to cost, performance, and recyclability


IPG services a diverse set of end markets with low substitution risk

Film

Paper Mill

Protect A Board

Construction

Cloth

All Other Core

Yarn

Carpet & Floor

Metal, Foil Strapping

Roofing


North America

FPS: global market leader with superior capabilities


4 loop bag1&2 loop bag Container linersReconditioning

1-Loop 2-Loop#1 #1 #1


FPS is the largest FIBC producer in the world and offers the most comprehensive line of product and services



North America

2020 Net Sales By Geographies 2020 Revenue Mix

FPS: highlights and differentiation

• Leading position in highly fragmented market

• Largest FIBC re-conditioner in the industry

• 50/50 joint venture

• Exceptional technical capabilities and differentiated customer service

• Unmatched global network of production and commercial facilities

• Going to market with RIPS

(1)A summary of all adjustments that are included in Adj. EBITDA is set forth in the appendix of this presentationNote: 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 of this presentation

2020 Financials ($M)Revenue $272.9

Adj. EBITDA1 $26.8

Adj. EBITDA margin 9.8%


1 & 2 Loop

4 Loop

All Other

United States

Europe, Middle Eastand Africa

Asia Pacific andOther Americas

Appendix and required reconciliation tables


$0

$200

$400

$600

$800

$1,000

$1,200

2021 2022 2023 2024 2025 2026 2027

7.375% Senior Notes - 2021¹ US Revolver - FY 2024 Asset Securitization Other 6.50% Senior Notes - 2027 Term Loan A-1 Term Loan A-2

Debt schedule as of 10/31/2020 ($M)


Solid balance sheet with anticipated interest savings

Anticipate significant interest expense savings in H2 2021 from locked in refinancing of below 3%


Operationalizing sustainabilityWho we are How we operate Why invest in Greif? Business segment overview Appendix

Advancing and embedding circular economy principles in our business

GREIFRecovered Fiber Collection Center

DISTRIBUTIONInternal and External

Collected Fiber

GREIFRecycled Paperboard

ManufacturingCONSUMER

INTERNAL AND EXTERNAL

CUSTOMERS

GREIFConverted Products;

Cores, and Other Paperboard Products

CONVERTINGInternal and External Recycled Paperboard

RECYLABLE WASTE

EXTERNAL CONVERTERS

Net positive recycler in Paper Packaging Rigid and Flexible Packaging highlights

35+ Reconditioning facilities in North America and Europe

4.5 mil. Containers reconditioned and recycled in 2019

63% Reduction in emissions from rebottling with a reconditioned vs. new 15kg IBC

100% Scrap from internal production reused to make new plastic products

75% Scrap from internal production reused to make new flexible products

100% of RIPS products are recyclable


GAAP to Non-GAAP Reconciliation:Reconciliation of Operating Profit to Adjusted EBITDA$Millions


(12) Adjusted EBITDA is defined as net income, plus interest expense, net, plus income tax expense, plus depreciation, depletion and amortization expense, plusrestructuring charges, plus acquisition-related costs, plus non-cash impairment charges, plus incremental COVID-19 costs, net, plus non-cash pensionsettlement (income) charges, less (gain) loss on disposal of properties, plants, equipment and businesses, net. However, because the Company does notcalculate net income by segment, this table calculates adjusted EBITDA by segment with reference to operating profit by segment, which, as demonstrated inthe table of consolidated adjusted EBITDA, is another method to achieve the same result.


GAAP to Non-GAAP Reconciliation:Adjusted Free Cash Flow(1)

$Millions


(in millions) 2015 2016 2017 2018 2019 2020Net cash provided by operating activities 206.3$ 301.0$ 305.0$ 253.0$ 389.5$ 454.7$ Cash paid for purchases of properties, plants and equipment (135.8) (100.1) (96.8) (140.2) (156.8) (131.4) Free Cash Flow 70.5$ 200.9$ 208.2$ 112.8$ 232.7$ 323.3$ Cash paid for acquisition-related costs - - - 0.7 29.7 17.0 Cash paid for debt issuance costs - - - - 5.1 - Cash paid for incremental COVID-19 costs, net - - - - - 2.6 Cash paid for acquisition-related ERP systems - - - - 0.3 3.3 Additional U.S. pension contribution - - - 65.0 - - Free cash flow from Venezuela operations 9.9 - - - - - Adjusted Free Cash Flow 80.4$ 200.9$ 208.2$ 178.5$ 267.8$ 346.2$

Twelve Months EndedOctober 31,

(1)Adjusted free cash flow is defined as net cash provided by (used in) operating activities, less cash paid for purchases of properties, plants and equipment, plus cash paid for acquisition-related costs, plus cash paid for debt issuance costs, plus cash paid for incremental COVID-19 costs, net, plus cash paid for acquisition-related ERP systems, plus the additional one-time $65.0 million contribution made by the Company to its U.S. defined benefit plan (the “additional U.S. pension contribution”) during the third quarter of 2018, plus free cash flow from Venezuela Operations in 2015.


GAAP to Non-GAAP Reconciliation:Adjusted Free Cash Flow(1)

$Millions


(1)Adjusted free cash flow is defines as net cash provided by operating activities, plus cash paid for acquisition-related costs, plus cash paid for debt issuance costs, less cash paid for purchases of properties, plants and equipment.(2)Cash paid for debt issuance costs is defined as cash payments for debt issuance related expenses included within net cash used in operating activities.(3)Cash paid for acquisition-related ERP systems is defined as capital expenditures for the integration of Caraustar into Greif’s global Enterprise Resource Planning System.



Q4 Price, Volume and Foreign Currency Impact to Net Sales for Primary Products:

RIPS NA -8.2% -2.9% -0.4% -11.5%

($16.4) ($5.8) ($0.8) ($22.9)

RIPS LATAM -2.9% 0.7% -16.6% -18.8%

($1.1) $0.3 ($6.6) ($7.5)

RIPS EMEA -0.6% -4.2% 1.4% -3.4%

($1.5) ($11.1) $3.6 ($9.0)

RIPS APAC 9.8% -4.6% 2.8% 8.0%

$4.9 ($2.3) $1.4 $4.0

RIPS Segment -2.6% -3.4% -0.4% -6.4%

($14.2) ($18.8) ($2.4) ($35.4)

PPS Segment 8.0% -2.4% 0.0% 5.6%

$35.7 ($10.6) $0.0 $25.0

FPS Segment -0.2% 1.7% 2.7% 4.2%

($0.2) $1.2 $1.8 $2.8

PRIMARY PRODUCTS 2.3% -2.5% 0.0% -0.3%

$24.5 ($26.8) ($0.5) ($2.8)

RECONCILIATION TO TOTAL COMPANY NET SALES

-38.2%

($63.3)

TOTAL COMPANY -5.7%

($70.8)

NON-PRIMARY PRODUCTS

VOLUME PRICE FX TOTAL SALES VARIANCE


Fiscal 2022 financial commitments assumptionsWho we are How we operate Why invest in Greif? Business segment overview Appendix

• Net sales will be approximately $5.0B in FY22 reflecting a 2018 like economy with the impacts of both the COVID-19 pandemic and the industrial recession in place pre-COVID fully behind us

• Raw material costs increase slightly against current indices in the markets in which we participate; assume OCC cost range of $35/ton -$75/ton (midpoint = $55/ton)

• Raw material price changes are passed to customers through price adjustment mechanisms in contracts or otherwise with customary delay in our RIPS and FPS businesses

• FX rates flat to FY21 rates

• DD&A to increase to $250M - $260M by FY22

• Annual other expense to be $5M in FY22

• Cash taxes paid to be $65M - $75M in FY22

• Interest expense is calculated to be $90M - $95M by FY22 based on debt pay down

• OWC is a use of cash in FY22 as a result of higher sales

• Annual CapEx to range between $150M – $170M

• Synergies of $70M to be realized by FY22 ($10M increase vs 2019 investor day assumption)

• Acquisitions or divestitures not contemplated in targets



Credit Agreement Adj. EBITDA & Leverage Ratio

January 2021 Investor Presentation · 2021. 1. 28. · EcoVadis. Awarded Gold Rating in...

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Transcript of January 2021 Investor Presentation · 2021. 1. 28. · EcoVadis. Awarded Gold Rating in...