• Strong execution and business model resilience in Q2 2023 ‒ Adj. EBITDA1 of $228.6M ‒ Adj. Free Cash Flow1 of $185.5M ‒ Adj. Class A EPS1 of $1.77/share • Driving our Build to Last strategy in a tough environment ‒ Effective working capital management provided year-over-year cash flow source of $95M in the quarter ‒ Finalized $145M acquisition of majority stake in Centurion Container ‒ Completed2 $150M share repurchase plan initiated last June FQ2 '23 takeaway ▪ Volumes at a low level in all substrates in ...

Greif, Inc. (NYSE:GEF) Q2 2023 Earnings Conference Call June 8, 2023 8:30 AM ET Company Participants Matt Leahy - Vice President, Corporate Development and Investor Relations Ole Rosgaard - President and Chief Executive Officer Larry Hilsheimer - Chief Financial Officer Conference Call Participants Michael Hoffman - Stifel George Staphos - Bank of America Gabe Hajde - Wells Fargo Operator Good morning and thank you for standing by. Welcome to the Greif, Inc. Second Quarter 2023 Earnings Call. [Operator Inst ...

Financial Performance - Net sales for the three months ended April 30, 2023, were $1,308.9 million, a decrease of 21.5% compared to $1,667.3 million in the same period of 2022[9]. - Gross profit for the six months ended April 30, 2023, was $563.4 million, down from $628.4 million in 2022, reflecting a decline of 10.4%[9]. - Net income attributable to Greif, Inc. for the three months ended April 30, 2023, was $111.2 million, compared to $125.1 million in 2022, a decrease of 11.1%[9]. - Basic earnings per share for Class A common stock decreased to $1.91 for the three months ended April 30, 2023, from $2.11 in 2022, a decline of 9.5%[9]. - Comprehensive income for the three months ended April 30, 2023, was $107.2 million, down from $218.3 million in 2022, a decrease of 50.9%[10]. - Net income for the six months ended April 30, 2023, was $209.1 million, an increase of 43.9% compared to $145.3 million in the same period of 2022[13]. - Total operating profit for the six months ended April 30, 2023, was $337.5 million, compared to $262.1 million for the same period in 2022, marking a significant increase of 28.7%[107]. - Adjusted EBITDA for Q2 2023 was $228.6 million, down from $251.0 million in Q2 2022, a decrease of $22.4 million[142]. - Adjusted EBITDA decreased to $393.1 million in the first half of 2023 from $447.8 million in 2022, a decline of 12.2%[173]. Assets and Liabilities - Total assets increased to $5,911.5 million as of April 30, 2023, compared to $5,469.9 million as of October 31, 2022, an increase of 8.0%[11]. - Long-term debt rose to $2,206.1 million as of April 30, 2023, from $1,839.3 million as of October 31, 2022, an increase of 19.9%[12]. - Cash and cash equivalents increased to $158.5 million as of April 30, 2023, compared to $147.1 million as of October 31, 2022, an increase of 9.5%[11]. - As of April 30, 2023, total shareholders' equity was $1,914.9 million, reflecting an increase from $1,882.2 million at the beginning of the period[15]. - The total long-lived assets, net, increased to $1,822.2 million as of April 30, 2023, from $1,710.9 million as of October 31, 2022, indicating a growth of 6.5%[108]. Cash Flow and Investments - Net cash provided by operating activities increased to $243.7 million, up from $161.6 million year-over-year[13]. - The company reported a net cash used in investing activities of $451.0 million, significantly higher than the $62.7 million provided in the previous year[13]. - The company invested $91.1 million in capital expenditures during the first half of 2023, compared to $75.0 million in the same period of 2022[189]. Dividends and Share Repurchase - The company declared cash dividends of $0.50 per share for Class A common stock for the six months ended April 30, 2023, compared to $0.46 in 2022, an increase of 8.7%[9]. - Dividends paid to Greif, Inc. shareholders totaled $57.9 million, slightly up from $54.6 million in the previous year[15]. - The Company authorized a stock repurchase program of up to $150.0 million, with $75.0 million executed through an accelerated share repurchase agreement and an additional $75.0 million through open market purchases, completed by May 26, 2023[92][94]. - As of April 30, 2023, the Company repurchased $25.0 million of Class A Common Stock (406,343 shares) and $45.7 million of Class B Common Stock (619,804 shares) under the open market purchase program[94]. Acquisitions and Restructuring - The total purchase price for the acquisition of Centurion Container LLC was $144.5 million, increasing the Company's ownership interest from approximately 10% to 80%[23]. - The total purchase price for the Lee Container acquisition was $302.8 million, with transaction costs of $5.1 million incurred[30]. - The Company completed the Centurion Acquisition on March 31, 2023, enhancing its Global Industrial Packaging segment[104]. - The Lee Container Acquisition was completed on December 15, 2022, also strengthening the Global Industrial Packaging segment[105]. - Restructuring charges for the six months ended April 30, 2023, totaled $4.8 million, down from $7.2 million for the same period in 2022[43]. Segment Performance - The Global Industrial Packaging segment reported net sales of $748.2 million in Q2 2023, down from $971.7 million in Q2 2022, a decrease of $223.5 million[145]. - Operating profit for the Global Industrial Packaging segment was $111.3 million for the three months ended April 30, 2023, compared to $108.0 million in the same period of 2022, indicating a growth of 2.4%[107]. - Operating profit in the Paper Packaging & Services segment rose to $176.7 million, an increase of 50.9% from $118.4 million in the first half of 2022[179]. Debt and Financing - The company entered into a new $300.0 million senior secured credit agreement on May 17, 2023, to refinance a portion of the outstanding borrowings under the 2022 Credit Agreement[51]. - The company has outstanding borrowings of $1,940.7 million under the 2022 Credit Agreement, with a current portion of $80.8 million and a long-term portion of $1,859.9 million[49]. - The interest under the 2023 Credit Agreement is based on SOFR plus a credit spread adjustment, with a calculated margin based on the company's leverage ratio[203]. Tax and Impairment - For the six months ended April 30, 2023, the company recorded income tax expense of $76.8 million, an increase of $11.3 million compared to $65.5 million for the same period in 2022[81]. - The company recorded impairment charges of $1.8 million related to long-lived assets during the six months ended April 30, 2023, compared to no impairment charges in the same period of 2022[72]. Environmental and Land Management - The company continues to focus on sustainable long-term yields in its Land Management segment, owning approximately 175,000 acres of timber property as of April 30, 2023[121]. - The company had approximately 175,000 acres of timber properties as of April 30, 2023, with ongoing reviews to maximize the value of these properties[153].

Financial Data and Key Metrics Changes - In Q1 2023, net sales decreased by $293.3 million, primarily due to volume declines and the impact of $89.4 million from the divested FPS business [93] - Adjusted EBITDA was reported at $164.5 million, reflecting a decline compared to the previous year [93] - Gross profit declined by $38.1 million, attributed to lower volumes and steel price cost headwinds [93] Business Line Data and Key Metrics Changes - The global industrial packaging (GIP) business faced low double-digit volume declines year-over-year, with North America being the weakest market [14][16] - Paper packaging sales declined by approximately $50 million due to lower mill and converting volumes, despite year-on-year pricing tailwinds [39] - The company took approximately 94,000 tons of economic downtime across its mill system, impacting production [39] Market Data and Key Metrics Changes - The North American market showed no improvement, while LATAM remained strong, and EMEA and APAC experienced weak volumes with some sequential improvements noted in February [8][14] - The company expects further deterioration in pricing in the paper industry if current demand trends continue [5] Company Strategy and Development Direction - The company is focused on its "Build to Last" strategy, emphasizing long-term growth and disciplined execution [90] - Recent acquisitions, such as Lee Container and increasing ownership in Centurion Container, are part of the growth strategy, aiming for margin accretive and sustainable business models [13][85] - The company is committed to managing costs aggressively while remaining agile to support customer demand when it improves [3] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment, stating that demand trends have not shown expected improvements [5] - There is hope for a demand recovery in the second half of 2023, contingent on current volume pressures subsiding [16] - The company remains confident in its balance sheet strength and cash flow generation to support growth initiatives [41] Other Important Information - The company has set a low-end guidance for 2023 EBITDA at $740 million, reflecting significant caution due to current demand trends [5][16] - The company is actively managing working capital and has aggressive goals in place to improve cash flow [16][40] Q&A Session Summary Question: What is the current status of destocking? - Management indicated that while there has been an impact from destocking, it is unclear if the process is complete, with no significant changes observed in February [44] Question: Can you elaborate on cost-cutting opportunities in the PPS business? - Management confirmed ongoing efforts in footprint consolidation and shift structure adjustments to maximize production efficiency [21][22] Question: What is the expected impact of the Centurion acquisition? - The acquisition is anticipated to enhance EBITDA by $20 million to $40 million, with synergies expected from increased ownership and supply chain integration [34][77] Question: How does the company plan to manage pricing pressures in the paper business? - Management acknowledged the potential for price erosion if current volume trends persist, with a $33 million pricing impact factored into guidance [50] Question: What are the expectations for the second half of 2023? - Management expressed optimism for a recovery in demand, particularly as comparisons to prior year performance become easier [27][30]

[Part I. Financial Information](index=5&type=section&id=Part%20I.%20Financial%20Information) This section presents the company's unaudited financial statements, management's analysis, and market risk disclosures [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Quarterly net sales decreased to $1,271 million, while net income rose significantly due to a business sale [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Quarterly operating profit and net income surged due to a significant gain on the disposal of a business **Consolidated Income Statement Highlights (Unaudited)** | Metric | Three Months Ended Jan 31, 2023 (in millions) | Three Months Ended Jan 31, 2022 (in millions) | Change | | :--- | :--- | :--- | :--- | | Net sales | $1,271.0 | $1,564.3 | -18.8% | | Gross profit | $251.6 | $289.7 | -13.1% | | Operating profit | $156.4 | $72.0 | +117.2% | | Net income attributable to Greif, Inc. | $89.9 | $10.3 | +772.8% | | Diluted EPS (Class A) | $1.54 | $0.18 | +755.6% | - The significant increase in operating profit and net income was primarily driven by a **$54.6 million gain on the disposal of businesses** in Q1 2023, compared to a **$62.4 million non-cash asset impairment charge** in Q1 2022[8](index=8&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and long-term debt increased, primarily driven by the Lee Container acquisition **Balance Sheet Summary (Unaudited)** | Metric | Jan 31, 2023 (in millions) | Oct 31, 2022 (in millions) | Change | | :--- | :--- | :--- | :--- | | Total Assets | $5,690.6 | $5,469.9 | +$220.7M | | Goodwill | $1,540.8 | $1,464.5 | +$76.3M | | Other intangible assets, net | $695.9 | $576.2 | +$119.7M | | Long-term debt | $2,143.9 | $1,839.3 | +$304.6M | | Total Greif, Inc. shareholders' equity | $1,845.4 | $1,761.3 | +$84.1M | - The increase in **Goodwill and Other intangible assets** is primarily due to the **Lee Container acquisition**, and the rise in **long-term debt** was used to fund this acquisition[10](index=10&type=chunk)[11](index=11&type=chunk)[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow reflects significant investing and financing activities related to acquisitions and divestitures **Cash Flow Summary (Unaudited)** | Cash Flow Activity | Three Months Ended Jan 31, 2023 (in millions) | Three Months Ended Jan 31, 2022 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $32.9 | $22.4 | | Net cash used in investing activities | ($269.1) | ($45.8) | | Net cash provided by financing activities | $239.5 | $54.0 | - Investing activities were dominated by the **$301.9 million purchase of businesses (Lee Container)**, partially offset by **$105.6 million in proceeds from the sale of businesses (Tama Divestiture)**[12](index=12&type=chunk) - Financing activities included **net proceeds from long-term debt of $298.0 million**, which was used to fund acquisitions and operations[12](index=12&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the financial impact of recent acquisitions, divestitures, debt, and subsequent events - The company completed the **acquisition of Lee Container for $302.8 million**, which is now part of the Global Industrial Packaging segment, resulting in **$71.2 million of goodwill** and **$133.5 million of intangible assets**[20](index=20&type=chunk)[21](index=21&type=chunk) - The company completed the **divestiture of Tama Paperboard, LLC for net cash proceeds of $100.2 million**, resulting in a **$54.6 million gain on sale**[29](index=29&type=chunk) - As of January 31, 2023, **total long-term debt, net, stood at $2,143.9 million**, an increase from $1,839.3 million at October 31, 2022, primarily to finance acquisitions[33](index=33&type=chunk) - Subsequent to the quarter end, the company entered into an agreement to **increase its ownership stake in Centurion Container LLC to 80% for $145.0 million**[91](index=91&type=chunk)[92](index=92&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses decreased net sales due to lower volumes but higher operating profit from a divestiture gain [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Consolidated results show lower net sales and Adjusted EBITDA, but a significant increase in operating profit **Consolidated Financial Performance (Q1 2023 vs Q1 2022)** | Metric (in millions) | Q1 2023 | Q1 2022 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,271.0 | $1,564.3 | -$293.3 | | Gross Profit | $251.6 | $289.7 | -$38.1 | | Operating Profit | $156.4 | $72.0 | +$84.4 | | Adjusted EBITDA | $164.5 | $196.8 | -$32.3 | - The decrease in net sales was primarily due to **lower average sale prices and volumes** in the Global Industrial Packaging segment, lower volumes in Paper Packaging & Services, and the impact of the FPS Divestiture[123](index=123&type=chunk) - Management anticipates that the **lower customer demand patterns** experienced in Q1 will continue through Q2, subject to normal seasonal increases[127](index=127&type=chunk) [Segment Review](index=38&type=section&id=Segment%20Review) Performance varied by segment, with Paper Packaging showing strong profit growth while Industrial Packaging declined **Segment Performance (Q1 2023 vs Q1 2022)** | Segment | Metric (in millions) | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | :--- | | **Global Industrial Packaging** | Net Sales | $705.8 | $949.1 | | | Operating Profit | $45.9 | $31.0 | | | Adjusted EBITDA | $71.8 | $114.2 | | **Paper Packaging & Services** | Net Sales | $560.2 | $610.0 | | | Operating Profit | $109.1 | $38.3 | | | Adjusted EBITDA | $90.7 | $80.5 | | **Land Management** | Net Sales | $5.0 | $5.2 | | | Operating Profit | $1.4 | $2.7 | | | Adjusted EBITDA | $2.0 | $2.1 | - Global Industrial Packaging sales **fell $243.3 million** due to the FPS divestiture, negative currency effects, and lower volumes/prices, causing **Adjusted EBITDA to decrease by $42.4 million**[129](index=129&type=chunk)[131](index=131&type=chunk) - Paper Packaging & Services operating profit **surged by $70.8 million**, driven by a **$54.6 million gain from the Tama Divestiture** and higher containerboard prices[135](index=135&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through cash flow and credit facilities while executing a share repurchase program - Primary liquidity sources are **operating cash flow and credit facilities**, which are expected to be sufficient for needs over the next 12 months[149](index=149&type=chunk) - The company has a **$150.0 million share repurchase program**, split between a $75.0 million accelerated share repurchase (ASR) agreement and a $75.0 million open market repurchase (OSR) program[155](index=155&type=chunk)[159](index=159&type=chunk) - As of January 31, 2023, the company had **$448.0 million of available borrowing capacity** under its $800.0 million secured revolving credit facility[165](index=165&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No significant changes in market risk disclosures were reported since the last annual filing - There have been **no significant changes** in the quantitative and qualitative disclosures about market risk from the disclosures contained in the 2022 Form 10-K[180](index=180&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) The recent Lee Container acquisition is excluded from the internal controls assessment, with no other material changes reported - The recently completed **Lee Container Acquisition will be excluded** from the scope of the Company's assessment of internal controls over financial reporting for the fiscal year ending October 31, 2023[181](index=181&type=chunk) - **No changes in internal control** over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[182](index=182&type=chunk) - The principal executive officer and principal financial officer concluded that **disclosure controls and procedures were effective** as of the end of the reporting period[183](index=183&type=chunk)[185](index=185&type=chunk) [Part II. Other Information](index=51&type=section&id=Part%20II.%20Other%20Information) This section covers risk factors, share repurchase activities, and a list of filed exhibits [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the previous annual filing - There have been **no material changes in risk factors** from those disclosed in the 2022 Form 10-K[186](index=186&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its ongoing $150 million share repurchase program and quarterly repurchase activity - In June 2022, the Board authorized a **$150.0 million share repurchase program**, consisting of a $75.0 million ASR for Class A stock and a $75.0 million OSR program for Class A or B stock[187](index=187&type=chunk) **Issuer Purchases of Equity Securities (Q1 2023)** | Period | Total Class B Shares Purchased | Average Price Paid per Share | Approximate Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | Nov 2022 | 75,149 | $74.90 | $58,258,591 | | Dec 2022 | 73,626 | $75.89 | $52,670,848 | | Jan 2023 | 83,171 | $79.72 | $46,040,699 | | **Total** | **231,946** | **$76.94** | | [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including certifications and financial data - Filed exhibits include **CEO/CFO certifications** under Sarbanes-Oxley rules, an amended director equity plan, and financial statements formatted in Inline XBRL[193](index=193&type=chunk)

24.8 (1.7) 44.8 14.9 73.1 - 41.9 0.1 Adjusted EBITDA P.23 0.4 Three Months Ended October 31, (0.7) 21.0 8.1 Adjusted EBITDA 37.7 0.1 P.24 (in millions) Operating profit 68.5 Adjusted EBITDA Reconciliation of Historical Segment Operating Profit to Adjusted EBITDA EBITDA First Quarter Fiscal 2023 Earnings Conference Call 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," "antici ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________________________________ FORM 10-K _________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-00566 _________________________________________________ GREI ...

Financial Data and Key Metrics Changes - Greif reported a record year in 2022, with strong EBITDA and earnings performance compared to a historically strong 2021 [10][32] - The final Q4 EPS was $1.83, resulting in a full year non-GAAP EPS of $7.87, which was $0.03 below the low end of the reaffirmed range [29][30] - Adjusted EBITDA for Q4 decreased by approximately $25 million year-over-year, with a notable decline in steel costs impacting profitability [22][20] Business Line Data and Key Metrics Changes - The Global Industrial Packaging (GIP) business faced headwinds with volumes falling across most geographies, particularly in EMEA due to energy inflation and the war in Ukraine [17][18] - Paper Packaging's fourth quarter sales rose by approximately $44 million year-over-year, driven by favorable price-cost dynamics despite volume erosion [23][25] - The GIP business experienced a year-over-year decline in adjusted EBITDA, while the Paper Packaging segment saw an increase in adjusted EBITDA despite declining demand [22][25] Market Data and Key Metrics Changes - North America experienced a sequential demand weakness, while Latin America showed strong performance with mid-single-digit growth [19] - APAC demand remained sporadic due to strict lockdowns in China, impacting supply chains and industrial production [18] - Steel prices in North America declined over 43% from June to November, negatively impacting profitability due to lagging price adjustments [20] Company Strategy and Development Direction - Greif's long-term strategic objectives include the "Build to Last" strategy, focusing on diversity, equity, and inclusion, as well as sustainability targets for 2030 [11][12] - The planned acquisition of Lee Container is aimed at expanding Greif's presence in less cyclical end markets and enhancing growth through organic and inorganic investments [15][16] - The company remains committed to disciplined capital allocation, including increasing dividends and pursuing acquisitions to enhance its portfolio [39][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 2023 but expressed confidence in the team's ability to navigate market environments [10][43] - The guidance for fiscal 2023 anticipates adjusted EBITDA between $820 million and $906 million, reflecting a wider range due to macroeconomic uncertainties [37][38] - Management emphasized the importance of working capital management and the potential for further improvements in cash generation [82] Other Important Information - Greif's sustainability leadership was recognized with various awards, including an AA MSCI rating and a Gold EcoVadis rating [13] - The company plans to release its 2030 sustainability targets by the end of the calendar year [12] Q&A Session Summary Question: Dynamics of PPS and GIP segments for fiscal year '23 - Management indicated that GIP is expected to be weak in the first half of the year due to significant demand deterioration and steel cost decreases [49][50] Question: EBITDA bridge for '23 versus '22 - Management discussed various operational factors impacting EBITDA, including a potential decrease of $12 million to $98 million compared to the previous year [51][53] Question: Volume assumptions and pricing in PPS - Management refrained from providing specific pricing assumptions but indicated that the worst-case scenario for EBITDA is still above previous consensus estimates [58][59] Question: Impact of Lee Container acquisition - Management estimated a contribution of $25 to $30 million from Lee Container to EBITDA for the year, with expectations for future growth [68] Question: Volume trends and exit rates - Management noted that demand softness has continued into November but is stabilizing, with some destocking observed [72][73] Question: FX impact on guidance - Management estimated a headwind of $160 million to $170 million from currency for the upcoming year, factoring in hedging strategies [79] Question: Working capital improvements - Management believes there are further opportunities for working capital improvements, projecting a benefit of $50 million to $90 million in the coming year [83]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $251 million and adjusted EPS of $2.35 for Q3 2022, with a record adjusted free cash flow of $175.8 million [8][22]. - The company raised its fiscal 2022 guidance, increasing the midpoint of adjusted EPS guidance by $0.40 to $8 per share and free cash flow guidance to a range of $415 million to $445 million [24][25]. Business Line Data and Key Metrics Changes - Global Industrial Packaging (GIP) saw solid demand, with plastic drums down low-single digits and Intermediate Bulk Containers (IBCs) up 10% per day compared to the previous year [10]. - Paper packaging sales rose by $131 million year-over-year due to steady volumes and higher average selling prices, with adjusted EBITDA increasing by $42 million despite higher raw material costs [15][20]. Market Data and Key Metrics Changes - In North America, demand remained stable, while LATAM outperformed with strong volumes in agricultural chemicals and food-related packaging [12][36]. - The company experienced weakening demand in APAC due to continued lockdowns in China, affecting transportation and end markets like automotive and construction [34]. Company Strategy and Development Direction - The company is focused on its "Build to Last" strategy, which aims to deliver strong performance in various economic environments [7][29]. - The company is committed to increasing shareholder value through capital allocation, including an 8.7% increase in quarterly dividends and ongoing share repurchases [26][27]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing economic uncertainty, inflation, and supply chain pressures but expressed confidence in the team's ability to deliver strong results [7][20]. - The company anticipates continued strong cash flow generation into 2023, supported by improved net working capital management [25][67]. Other Important Information - A fire incident at the Riverville Mill resulted in a loss of approximately 9,000 tons of production, which has been factored into the fourth quarter guidance [18][75]. - The company has a robust acquisition pipeline and is exploring opportunities to deploy capital opportunistically [27][57]. Q&A Session Summary Question: How are fundamentals in the PPS segment currently? - Management noted a slight weakening in demand towards the end of the quarter, but backlogs remain solid at around seven to eight weeks [33]. Question: Can you characterize the macro environment in each region? - APAC is facing demand challenges due to lockdowns in China, while EMEA is affected by the Ukraine conflict and energy prices. North America shows lesser weakness, and LATAM remains strong [34][36]. Question: What are the expectations for 2023? - Management indicated that it is too early to provide guidance for 2023 due to economic uncertainties [40]. Question: Can you provide volume trends by month in the quarter? - Volume trends showed a decline in July, with August continuing that trend, but backlogs in the paper business remain strong [42][43]. Question: How do you view the sustainability of recycled boxboard price gains? - Management emphasized that price sustainability is a supply and demand issue [54]. Question: What are the best internal reinvestment opportunities? - The company plans to invest in a new sheet feeder in Texas, IBC expansion, and automation upgrades [109].

Financial Performance Highlights - Adjusted EBITDA for Q3 2022 was $251.0 million[4], compared to $237.8 million in Q3 2021[9] - Adjusted Class A EPS for Q3 2022 was $2.35 per share[4], up from $1.93 per share in Q3 2021[9] - Adjusted Free Cash Flow reached a record $175.8 million in Q3 2022[4], significantly higher than the $64.1 million in Q3 2021[9] - Net sales increased from $1,490.8 million in Q3 FY21 to $1,622.1 million in Q3 FY22[9] - The company is raising its Fiscal Year 2022 Adjusted Class A EPS guidance to a range of $7.90 - $8.10 per share[4] Segment Performance - Global Industrial Packaging (GIP) net sales were approximately $906.7 million in Q3 FY22[5], slightly down from $907.8 million in Q3 FY21[5], with Adjusted EBITDA at $117.1 million[5] compared to $146.2 million[5], and Adjusted EBITDA % decreased from 16.1% to 12.9%[5] - Paper Packaging & Services (PPS) net sales increased to $710.2 million in Q3 FY22[7], from $578.8 million in Q3 FY21[7], with Adjusted EBITDA at $131.8 million[7] compared to $89.9 million[7], and Adjusted EBITDA % increased from 15.5% to 18.6%[7] Capital Structure and Allocation - The credit agreement leverage ratio was 1.99x, within the target range of 2.0 - 2.5x[4] - The company is increasing its quarterly dividend by 8.7%[13] - A share repurchase program of $150 million is in place[15]