KeyBanc Capital Markets y pBasic Materials and Packaging Conference
September 10, 2008
Safe HarborForward-Looking Statements
This presentation contains certain forward-looking information within the meaning of the PrivateSecurities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “estimate,”“target,” and similar expressions, among others, identify forward-looking statements. All forward-looking statements are based on information currently available to management. Such forward-lookingstatements are subject to certain risks and uncertainties that could cause events and the Company’sactual results to differ materially from those expressed or implied. Please see the disclosure regardingforward-looking statements immediately preceding Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2007. The Company assumes no obligation to update anyforward-looking statements.
Regulation G
This presentation includes certain non-GAAP financial measures that exclude restructuring and otherunusual charges and gains that are volatile from period to period. Management believes the non-GAAPmeas res pro ide a better indication of operational performance and a more stable platform on hichmeasures provide a better indication of operational performance and a more stable platform on whichto compare the historical performance of the Company than the most nearly equivalent GAAP data. Allnon-GAAP data in the presentation are indicated by footnotes. Tables showing the reconciliationbetween GAAP and non-GAAP measures are available at the end of this presentation and on the GreifW b it t if
2
Web site at www.greif.com.
Diversified Business Platform(Dollars in millions)(Twelve months ended July 31, 2008)
Sales $3,681
Operating Profit * $398
Industrial Packaging
Sales $2 970
Paper Packaging
S l $691
Timber
S l $20Sales $2,970
Operating Profit * $304
Sales $691
Operating Profit * $73
Sales $20
Operating Profit * $20
3
* Before restructuring charges and timberland disposals, net. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation.
Performance Trajectory(D ll i illi )
$3,681
$3,322
$3 000
$3,500
$4,000
(Dollars in millions)
1997 2008(1) CAGR
Net Sales $688 $3,681 17%
Operating Profit(2) $35 $398 25%
“Re earn the“Earn$1,456
$1,633$1,916
$2,209$2,424
$2,628
$2,000
$2,500
$3,000 Operating Profit(2) $35 $398 25%
“Re-earn theRight to Grow”
andGrow”$846 $853 $964
$688
$500
$1,000
$1,500
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(1)
March 30, 1998Acquired Sonoco Products’ industrial packaging business f $223 illi
March 2, 2001Acquired Van Leer Industrial Packaging from Huhtamaki for
March 4, 2003Launched
Transformation toGreif Business System
September 22, 2006Acquired Delta Petroleum for $98 million
for $223 million
November 1, 1998CorrChoice joint venture formed (Greif ownership 63.24%)
$555 million
September 30, 2003Remaining interest in CorrChoice obtained
November 30, 2006Acquired steel drum and closures businesses of Blagden Packaging for €205 million
4
€205 million
(1) Twelve months ended July 31, 2008.(2) Before restructuring charges and timberland disposals, net. See GAAP to
Non-GAAP reconciliation included in the Appendix of this presentation.
Our AspirationsBreak-away momentum• Organic growth: ≥ 5% (GDP + 2
points)• Operating profit margin: ≥12 5%
Preferred productivity partner• Compelling value proposition
based on what customers are willing to pay for
GrowthOperating profit margin: ≥12.5%
• SG&A/net sales: ≤ 7.5%• RONA: ≥ 25%• ROIC ≥ WACC: 5 points
willing to pay for• Low-cost provider of high-quality
products with consistent and reliable delivery
Value
People Productivity
Strong performance ethicT t
Productivity imperative• Real-cost productivity: ≥ 4% per year
• Transparent governance structure
• Performance and consequence management
• Talent and succession
• Capital productivity› OWC/net sales: ≤ 7.5%› Asset turns: ≥ 2x› World-class strategic sourcing
5
• Talent and succession management
g gcapabilities
The Framework for Achieving Aspirations
The Greif WayGreif Production System
Greif
WorkingCapital
Gl b l Greif Operating System
Operational Excellence
Commercial Excellence
Global Supply Chain
Strategy People Performance Management
Core Processes
Excellence
6
g Processes
Industrial PackagingNet sales Operating profit(2)
$2,654
$2,970
$2,425
$2,600
$2,775
$2,950
$229
$304
$200
$240
$280
$320
2002 2008(1) CAGR
$1,268 $2,970 16%
2002 2008(1) CAGR
$41 $304 42%
$1,268$1,384
$1,621$1,804
$1,993
$1,375
$1,550
$1,725
$1,900
$2,075
$2,250
$41$70
$112 $123
$167
$40
$80
$120
$160
$200
Served markets Competitive advantages
$ ,$1,200
$ ,3 5
2002 2003 2004 2005 2006 2007 2008$-
2002 2003 2004 2005 2006 2007 2008(1) (1)
▲ Leading market position
▲ Global footprint
▲ Compelling value proposition
Chemicals, paints and pigments, petroleum, industrial coatings
▲ Compelling value proposition
▲ Comprehensive product portfolio
▲ Strong customer relationships
Agriculture
Pharmaceutical
7
(1) Twelve months ended July 31, 2008.(2) Before restructuring charges. See GAAP to Non-GAAP reconciliation
included in the Appendix of this presentation.
Most Comprehensive Industrial Packaging Portfolio
Plastic FibreSteelWater BottlesIBC ClosuresGlobal
Presence
#1 #1#2 #4 #1#1
Mauser*
Schutz
Greif’s global market share exceeds 30%
8* Acquired by Dubai International Capital LLC in 2007.
Emerging MarketsChi R iB il China RussiaBrazil
Market Information
Real GDP 2008* 9.5%
Market Information
Real GDP 2008* 6.3%
Market Information
Real GDP 2008* 3.7%
First Greif Plant 1994
Total Facilities 5
Products Steel drums, Closures
First Greif Plant 1993
Total Facilities 9
ProductsSteel drums, IBCs, Water
bottles
First Greif Plant 1969
Total Facilities 9
Products
Steel drums, Plastic drums
and containersLocations
Caojing, Huizhou, Ningbo, Qingdao, Taicang
bottles
Locations
Angarsk, Beloyarsk, Irkustk, Kazan, Omsk, Perm, Taganrog, Volgograd, Vologda
and containers, Closures
Locations
Aratu, Araucaria, Esteio, Fortaleza, Londrina, Manaus, Rio de Janeiro,
9
gSao Paulo (2)
* Source: International Monetary Fund (July 2008)
Paper Packaging
$654$691
$700
$800
$900
$60$68
$73
$60
$75
$90
Net sales Operating profit(2)
2002 2008(1) CAGR
$324 $691 14%
2002 2008(1) CAGR
$21 $73 24%
$324
$504$568
$608 $620$654
$400
$500
$600
$21$30 $29
$41
$15
$30
$45
Served markets Competitive advantages
$324$300
2002 2003 2004 2005 2006 2007 2008$-
2002 2003 2004 2005 2006 2007 2008(1) (1)
▲ Customer focus
▲ Fully-integrated containerboard networknetwork
▲ Highly efficient sheet feeder footprint
Improving fundamentalsPackaging Feed and
Seed
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▲ Improving fundamentals(1) Twelve months ended July 31, 2008.(2) Before restructuring charges. See GAAP to Non-GAAP reconciliation
included in the Appendix of this presentation.
Fully-integrated Paper Packaging Network
7 Box Plants
Massillon, Ohio Mill 6 SpecialtyCorrugated
Plants
Riverville, Virginia Mill6 Sheet
Feeder Plants2 Multiwall Bag Plants
600 000 tons
Production
800 000 tons
Consumption
Annual containerboard requirements >100% of production capacity
600,000 tons 800,000 tons
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Annual containerboard requirements >100% of production capacity
TimberServed Markets
Timber, timberland, special use properties.▲ Properties located in Arkansas, Alabama,▲ Properties located in Arkansas, Alabama,
Louisiana and Mississippi in the United States and the Quebec and Ontario provinces in Canada.
▲ 66,250 acres (22%) identified as special use ti t 7/31/08
Competitive advantages
properties at 7/31/08.
▲ Undervalued timberland assets (book value $199 million at 7/31/08).
▲ Opportunities to monetize special use
p g2001 Timber established as a line of
business and portfolio began to be actively managed.
2001 2007 Over $200 million of timber ▲ Opportunities to monetize special use properties.
▲ 295,400 acres in North America in attractive locations, including 267,950 acres in the United States and 27 450 acres in Canada
2001 – 2007 Over $200 million of timber assets have been monetized.
2006 Special use properties identified. Gains total $29.4
12
United States and 27,450 acres in Canada.million since the beginning of 2006.
Financial Review
Financial Profile(Dollars in millions)
2002 2003 2004 2005 2006 2007 Q3 2007 Q3 2008
Net Sales $1,633 $1,916 $2,209 $2,424 $2,628 $3,322 $874 $1,034
Operating Profit(2)
$ 92 $ 121 $ 155 $ 171 $ 238 $ 311 $ 86 $ 108Operating Profit $ 92 $ 121 $ 155 $ 171 $ 238 $ 311 $ 86 $ 108
Net Income(2)
$ 32 $ 43 $ 83 $ 96 $ 140 $ 190 $ 53 $ 70
RONA(2)
7.5% 10.1% 13.3% 15.9% 21.5% 21.3% 21.3% 24.4%
Free Cash Flow $ 112 $ 52 $ 180 $ 175 $ 164 $ 296 $ 77 $ 36
(1) Before restructuring charges, debt extinguishment charges, timberland disposals, net and cumulative effect of change in accounting principle. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation.
Free Cash Flow $ 112 $ 52 $ 180 $ 175 $ 164 $ 296 $ 77 $ 36
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Strong Cash Generation(1)
$1 200
$1,400
(Dollars in millions)
Purchases of
$800
$1,000
$1,200 Purchases of PP&E, net
$300
$400
$600
$800 Operating Cash Flow
$1,279
Acquisitions$523
Di id d
Free Cash Flow
$979
$200
$400
Other$262
Dividends$159 Share
Repurchases$35
$0
Cash Sources Cash Uses
15% of Operating Cash Flow Returned to Shareholders
15(1) Fiscal 2002 to 2007
2007-2009: Earn and Grow PhaseGreif Business System Growth
I d t 2009 Goals
Value Creation+ =
Industry consolidation
Emerging
2009 GoalsOperatingProfit Margin(1) ≥ 12.5%
SG&A/
The Greif Way
Working Emerging markets
Core business
Net Sales ≤ 7.5%
OWC(2)/ Net Sales ≤ 7.5%
Performance
Operational Excellence
Commercial Excellence
CapitalGlobal Supply Chain
adjacencies Return onNet Assets(3) ≥ 25.0%
Strategy People Performance Management
(1) Operating profit margin equals operating profit, before restructuring charges and timberland disposals, net, divided by net sales.(2) Operating working capital equals accounts receivable (less allowances) plus inventories less accounts payable
Focus Discipline Passion
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(2) Operating working capital equals accounts receivable (less allowances) plus inventories less accounts payable. (3) Return on net assets equals operating profit, before restructuring charges and timberland disposals, net, divided by long-term debt plus short-term borrowings
less cash and cash equivalents, plus shareholders’ equity.
Same-Structure(1) Roadmap to 2009 Targets(D ll i illi )
$75
$60
$40 $450(Dollars in millions)
Operating Profit(2)Net Sales
$3,600
$275
$75$3,100
$ ,
+5%CAG
Greif Business System
2006 Organic 20092006 2009 Strategic Operational
CAGR
Roadmap/Agenda Workstream Target1. Organic Growth Commercial Excellence ≥ 5%
Adjusted(1)g
Growth TargetAdjusted(2) OrganicTarget
gSourcing
pExcellence
1. Organic Growth Commercial Excellence ≥ 5%
2. Low-cost Producer Operational Excellence 3 - 5% of cost of products sold
3. Leverage Global Spend Strategic Sourcing 3 - 5% of total spend
4. Scalable Infrastructure Administrative Excellence ≤ 7.5% SG&A to net sales
5 Asset Utilization Working Capital ≤ 7 5% OWC to net sales
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5. Asset Utilization Working Capital ≤ 7.5% OWC to net sales
(1) Includes the impact of Delta and Blagden acquisitions.(2) Before restructuring charges and timberland disposals, net. See GAAP to
Non-GAAP reconciliation included in the Appendix of this presentation.
(D ll i illi )
2009 Pro Forma RONA Value StreamOP Impact
(Dollars in millions)
Sales
100%3600 Volume*
GDP+2%
Price
Value > Sales/Comex
> Sales/Comex
$36
$12
x+
p1% ChangeAccountability
Labor
MaterialsOperating Profit
12.5%
COGS
76%
Depreciation450
GDP+2%
53%> Sourcing $19+
-
RONA
25%
4%
SG&A
7 5%
8%
Overhead
10%x +
+-
-
> Operations
> Operations
$3
$4
25% 7.5%
Fixed Capital
Freight
5%
A/RROIC
+
+
> Sourcing $2
Capital Turnover
2 Turns
3 Turns
Working Capital
12 Turns
1800
A/R
10 Turns
Inventories
12 Turns
18%
WACC
+
++
+
-
> Sales/Comex
> Sourcing Cash FlowBenefit
18
12 Turns 12 Turns
A/P
10 Turns
8.5%
* Volume impact = sales - material - labor – freight.
- > Sourcing
Financial Targets
2007 - 2009
Annual Organic Sales Growth (average) 5%
Net Debt to Net Capitalization 30% - 40%p % %
Annual Dividend Payout 30% - 35%
Annual Capital Expenditures ($ in millions) $110 - $135
Spread Over Cost of Capital 7.5% - 10%p p
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Compelling Investment Opportunity
• Diversity: customers, products, geography and people• Leading market positions in industrial packagingLeading market positions in industrial packaging• Focused, fully-integrated paper
packaging networkThe Greif Way
• Undervalued timber portfolio• Greif Business System: proven
catalyst for unlocking value Operational
WorkingCapital
Global
Strategy People Performance Management
catalyst for unlocking value• Record of strong top-line growth and
value creation
Operational Excellence
Commercial Excellence
Supply Chain
• Experienced management team
Focus Discipline Passion20
Focus Discipline Passion
Appendix
GAAP to Non-GAAP ReconciliationO P f d R N AOperating Profit and Return on Net Assets
2002 2003 2004 2005 2006 2007 2008
GAAP operating profit $ 101.2 $ 65.4 $ 108.7 $ 191.9 $ 246.2 $ 289.6 $ 364.1
UNAUDITED (Dollars in millions) (1)
p g p $ $ $ $ $ $ $Restructuring charges 2.8 60.7 54.1 35.7 33.2 21.2 33.5 Timberland disposals, net (12.1) (5.6) (7.5) (56.3) (41.3) 0.6 (0.1)
Non-GAAP operating profit before restructuring charges and timberland disposals, net $ 91.9 $ 120.5 $ 155.3 $ 171.3 $ 238.1 $ 311.4 $ 397.5
Average cash (30.8)$ (27.2)$ (36.1)$ (67.9)$ (148.9)$ (120.4)$ (104.9)$ Average short-term borrow ings 19.3 21.5 16.6 17.9 24.6 34.9 44.7 Average current portion of long-term debt 30.0 3.0 1.2 - - - - Average long-term debt 627.8 634.3 592.8 446.8 449.7 645.1 687.6 Average shareholders' equity 583.7 566.9 590.0 677.9 779.6 904.0 1,003.1 A t t 1 230 0$ 1 198 5$ 1 164 5$ 1 074 7$ 1 105 0$ 1 463 6$ 1 630 5$
(2)
(2)(2)
(2)(2)
Average net assets 1,230.0$ 1,198.5$ 1,164.5$ 1,074.7$ 1,105.0$ 1,463.6$ 1,630.5$
GAAP return on net assets (GAAP operating profit divided by average net assets) 8.2% 5.5% 9.3% 17.9% 22.3% 19.8% 22.3%
Non-GAAP return on net assets (non-GAAP operating profit before restructuring charges and
(1) Twelve months ended July 31, 2008
operating profit before restructuring charges and timberland disposals, net divided by average net assets) 7.5% 10.1% 13.3% 15.9% 21.5% 21.3% 24.4%
(2) Amounts used in the calculation for this graph are based upon the average balances as of the beginning of the fiscal year and end of each fiscal quarter for the years presented.
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GAAP to Non-GAAP ReconciliationO P f d R N AOperating Profit and Return on Net Assets
2007
GAAP operating profit $ 270.6
UNAUDITED (Dollars in millions) (1)
p g p $Restructuring charges 22.6 Timberland disposals, net 0.1
Non-GAAP operating profit before restructuring charges and timberland disposals, net $ 293.3
Average cash (129.1)$ Average short-term borrow ings 36.1 Average current portion of long-term debt - Average long-term debt 604.6 Average shareholders' equity 862.4 Average net assets 1 374 0$
(2)
(2)(2)
(2)(2)
Average net assets 1,374.0$
GAAP return on net assets (GAAP operating profit divided by average net assets) 19.7%
Non-GAAP return on net assets (non-GAAP operating profit before restructuring charges and
(1) Twelve months ended July 31, 2007.
operating profit before restructuring charges and timberland disposals, net divided by average net assets) 21.3%
(2) Amounts used in the calculation for this graph are based upon the average balances as of the beginning of the fiscal year and end of each fiscal quarter for the years presented.
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GAAP to Non-GAAP ReconciliationO P fOperating ProfitUNAUDITED (Dollars in millions) 1997
GAAP operating profit 29.8$ Restructuring charges 6.2 Timberland disposals, net (0.8)
Non GAAP operating profit before restructuringNon-GAAP operating profit before restructuring charges and timberland disposals, net 35.2$
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GAAP to Non-GAAP ReconciliationO P f b SOperating Profit by SegmentUNAUDITED (Dollars in millions) 2002 2003 2004 2005 2006 2007 2008
(1)
Industrial PackagingGAAP - operating profit 38.9$ 21.9$ 67.0$ 91.4$ 143.4$ 213.4$ 275.0$
Restructuring charges 2.3 47.9 45.0 31.4 24.0 16.0 29.4 Non-GAAP - operating prof it before restructuring charges 41.2$ 69.8$ 112.0$ 122.8$ 167.4$ 229.4$ 304.4$
Paper PackagingGAAP - operating profit 20.2$ 17.9$ 20.5$ 36.3$ 50.8$ 62.5$ 69.0$
Restructuring charges 0.4 12.5 8.9 4.3 9.2 5.2 4.0 Non-GAAP - operating prof it before restructuring charges 20 6$ 30 4$ 29 4$ 40 6$ 60 0$ 67 7$ 73 0$before restructuring charges 20.6$ 30.4$ 29.4$ 40.6$ 60.0$ 67.7$ 73.0$
TimberGAAP - operating profit 42.1$ 25.5$ 21.2$ 64.2$ 51.9$ 13.7$ 20.2$
Restructuring charges 0.1 0.4 0.2 0.1 - - 0.1 Ti b l d di l t (12 1) (5 6) (7 5) (56 3) (41 3) 0 6
(1) T l th d d J l 31 2008
Timberland disposals, net (12.1) (5.6) (7.5) (56.3) (41.3) 0.6 - Non-GAAP - operating prof it before restructuring charges and timberland disposals, net 30.1$ 20.3$ 13.9$ 8.0$ 10.6$ 14.3$ 20.3$
25
(1) Twelve months ended July 31, 2008
GAAP to Non-GAAP ReconciliationN INet IncomeUNAUDITED (Dollars in millions) 2002 2003 2004 2005 2006 2007
GAAP - net income $ 31.0 $ 9.5 $ 47.8 $ 104.7 $ 142.1 156.4$ Restructuring charges, net of tax 1.8 42.0 40.9 25.7 23.4 15.9 Debt extinguishment charge, net of tax 6.6 - - 2.0 - 17.5 Timberland disposals, net of tax (7.8) (3.9) (5.7) (36.2) (26.0) 0.5 Cumulative effect of change in Cu u at e e ect o c a geaccounting principle - (4.8) - - - -
Non-GAAP - net income before restructuring charges, debt extinguishment charge, timberland disposals, net and cumulative effect of change in accounting principle $ 31.6 $ 42.8 $ 83.0 $ 96.2 $ 139.5 $ 190.3
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GAAP to Non-GAAP ReconciliationO P f d N IUNAUDITED (Dollars in millions, except per share amounts)
Quarter ended July 31, 2008 Quarter ended July 31, 2007
Operating Profit and Net Income
Class A Class B Class A Class B
GAAP - operating profit 101.3$ 79.9$ Restructuring charges 6 6 6 1
Quarter ended July 31, 2008Diluted pershare amount
Quarter ended July 31, 2007Diluted pershare amount
Restructuring charges 6.6 6.1 Timberland disposals, net (0.2) (0.1)
Non-GAAP - operating profitbefore restructuring chargesand timberland disposals, net 107.7$ 85.9$
GAAP net income 64 6$ 1 10$ 1 67$ 48 8$ 0 82$ 1 26$GAAP - net income 64.6$ 1.10$ 1.67$ 48.8$ 0.82$ 1.26$ Restructuring charges, net of tax 5.0 0.08 0.12 4.5 0.08 0.11 Timberland disposals, net of tax (0.1) - - (0.1) - -
Non-GAAP - net income beforerestructuring charges, andtimberland disposals, net 69.5$ 1.18$ 1.79$ 53.2$ 0.90$ 1.37$ p
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