FOURTH QUARTER AND FISCAL 2020

EARNINGS CONFERENCE CALL

DECEMBER 10, 2020

Safe harbor

FORWARD-LOOKING STATEMENTS

  • This presentation contains certain forward-looking statements 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 forecasted, projected, or anticipated, whether 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 undertakes no obligation to update or revise any forward-looking statements.

REGULATION G

  • This presentation includes certain non-GAAP financial measures like EBITDA, Adjusted EBITDA and other measures that exclude adjustments 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.

December 11, 2020 - P.2

Key takeaways from today's call

Global pandemic and economic environment is uncertain, but Greif is controlling the controllables

  • Enhanced protocols remain in place in response to COVID-19
  • Sharp focus on safety, customer service, operating costs and cash generation

We are advancing towards our vision of customer service excellence

  • Q4'20 Customer Satisfaction Index (CSI) +2.5% vs. PY - new trailing 4Q record achieved
  • Wave 10 Net Promoter Score +10% vs. Wave 9 - new all-time best survey result

Emphasizing disciplined operational execution and performance in line with financial priorities

  • Caraustar integration is on track. ~$40M incremental synergies captured in FY20
  • Received 3rd consecutive "gold" rating from EcoVadis for sustainability leadership
  • FY20 Adjusted FCF1 = $346.2M (+ ~$78M vs. PY); reduced net debt by ~$294M in in FY20

Adj. Free Cash Flow ($M)

$400

$350

$300

$250

$200

$150

$100

$50

FY '15 FY '16 FY '17 FY '18 FY '19 FY '20

Generating free cash flow and paying down debt in line with financial priorities

  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 Enterprise Resource Planning (ERP) systems.

Note:A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly comparable GAAP financial December 11, 2020 - P.3 measures is included in the appendix of this presentation.

Rigid Industrial Packaging & Services (RIPS) review

$M

Q4 2020

Q4 2019

FY 2020

FY 2019

Net sales

579.1

619.0

2,298.9

2,490.6

Gross profit

113.8

114.0

465.3

460.1

Adj. EBITDA

65.3

69.5

297.5

269.9

Adj. EBITDA %

11.3%

11.2%

12.9%

10.8%

Quarter Highlights:

  • Net sales down 6.3%, excluding F/X1, from prior year quarter
    • Solid demand in China, Central / Western Europe, Mediterranean and the Middle East and North Africa, offset by softness in S. Europe, N. America and SE Asia
    • Global IBC volumes +3.3%
  • Solid EBITDA generation despite decline in sales
    • Adj. EBITDA2 down 6.0% (~$4M) from prior year quarter; Q4'19 included ~$7M tax recovery that was previously disclosed

Solid operational execution through Fiscal Q4

  1. A summary of the adjustments for the impact of currency translation is set forth in the appendix of this presentation.
  2. A summary of all adjustments that are included in Adjusted 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.

December 11, 2020 - P.4

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

Greif Inc. published this content on 10 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 December 2020 14:24:01 UTC