Greif, Inc. (NYSE:GEF) Q1 2022 Earnings Conference Call March 3, 2022 8:30 AM ET Company Participants Ole Rosgaard – President and Chief Executive Officer Matt Eichmann – Chief Marketing and Sustainability Officer Matt Leahy – Corporate Development and Investor Relations Larry Hilsheimer – Chief Financial Officer Conference Call Participants Ghansham Panjabi – Baird Adam Josephson – KeyBanc Gabe Hajde – Wells Fargo Justin Bergner – Gabelli Funds Operator Good morning. My name is Chris and I'll be your confe ...

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) This section presents the company's condensed consolidated financial statements and related management discussion and analysis [Item 1. Financial Statements](index=4&type=section&id=ITEM%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The company reported increased net sales and improved operating cash flow, despite a decline in net income due to a significant asset impairment charge [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net sales increased significantly, but net income declined due to a substantial non-cash asset impairment charge Condensed Consolidated Statements of Income (Unaudited) | (in millions, except per share amounts) | Three Months Ended January 31, 2022 | Three Months Ended January 31, 2021 | | :--- | :--- | :--- | | **Net sales** | **$1,564.3** | **$1,146.5** | | Gross profit | $289.7 | $212.2 | | Non-cash asset impairment charges | $62.4 | $1.3 | | **Operating profit** | **$72.0** | **$70.0** | | Income before income tax expense | $52.9 | $36.3 | | **Net income attributable to Greif, Inc.** | **$10.3** | **$23.4** | | Diluted EPS (Class A) | $0.18 | $0.40 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The company reported a comprehensive loss primarily due to a significant foreign currency translation loss Comprehensive (Loss) Income (Unaudited) | (in millions) | Three Months Ended January 31, 2022 | Three Months Ended January 31, 2021 | | :--- | :--- | :--- | | Net income | $18.6 | $30.9 | | Other comprehensive (loss) income, net of tax | $(16.6) | $52.2 | | **Comprehensive (loss) income attributable to Greif, Inc.** | **$(2.0)** | **$73.0** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased, with a notable increase in assets held for sale and long-term debt Condensed Consolidated Balance Sheet Highlights (Unaudited) | (in millions) | January 31, 2022 | October 31, 2021 | | :--- | :--- | :--- | | **Total current assets** | **$1,704.0** | **$1,664.1** | | Assets held for sale | $139.8 | $6.9 | | **Total assets** | **$5,766.6** | **$5,815.8** | | **Long-term debt** | **$2,139.1** | **$2,054.8** | | **Total liabilities** | **$4,190.2** | **$4,216.1** | | **Total shareholders' equity** | **$1,557.3** | **$1,575.6** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow improved due to non-cash adjustments, while financing activities provided significant cash from debt proceeds Condensed Consolidated Statements of Cash Flows (Unaudited) | (in millions) | Three Months Ended January 31, 2022 | Three Months Ended January 31, 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$22.4** | **$11.5** | | Net cash provided by (used in) investing activities | $(45.8) | $4.2 | | Net cash provided by (used in) financing activities | $54.0 | $(30.0) | | **Net increase (decrease) in cash and cash equivalents** | **$12.0** | **$(4.5)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes include restructuring charges, a significant asset impairment, and the subsequent refinancing of the company's credit agreement - Restructuring charges of **$3.5 million** were recorded in Q1 2022, with a focus on optimizing operations and closing under-performing assets[25](index=25&type=chunk)[26](index=26&type=chunk) - The remaining expected cost for open restructuring plans is **$14.6 million**[27](index=27&type=chunk) - A non-cash asset impairment charge of **$62.4 million** was recognized in Q1 2022, triggered by the reclassification of the Flexible Products & Services (FPS) business to assets held for sale following a definitive agreement to divest the company's equity interest[54](index=54&type=chunk)[55](index=55&type=chunk) - Subsequent to the quarter end, on March 1, 2022, the company entered into a new 2022 Credit Agreement, which replaced the 2019 agreement[92](index=92&type=chunk) - The new agreement includes an **$800 million** revolving credit facility and term loans totaling **$1.615 billion**, with proceeds used to redeem Senior Notes due 2027 and refinance existing debt[93](index=93&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses increased net sales and Adjusted EBITDA, while acknowledging risks from inflation, supply chain, and geopolitical events Consolidated Financial Performance (Unaudited) | (in millions) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Net sales** | **$1,564.3** | **$1,146.5** | | Gross profit | $289.7 | $212.2 | | Operating profit | $72.0 | $70.0 | | Net income | $18.6 | $30.9 | | **Adjusted EBITDA** | **$196.8** | **$138.5** | - Management anticipates continued solid customer demand through 2022 but acknowledges risks from inflation, supply chain disruptions, and labor shortages[120](index=120&type=chunk) - Prices for steel are expected to decline slightly, while resin and old corrugated container prices are expected to remain stable, with other raw material, transportation, labor, and energy costs expected to increase[120](index=120&type=chunk) - The company's operations in Russia and Ukraine combined account for approximately **3% of total sales** and **1.3% of total assets**, with the company actively monitoring the situation following the invasion of Ukraine by Russia[121](index=121&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No significant changes in market risk disclosures were reported since the prior fiscal year's annual report - There have been no significant changes in market risk disclosures since the 2021 Form 10-K[168](index=168&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls over financial reporting - No changes occurred during the most recent fiscal quarter that materially affected, or are likely to materially affect, the company's internal control over financial reporting[169](index=169&type=chunk) - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[170](index=170&type=chunk)[171](index=171&type=chunk) [Part II. Other Information](index=46&type=section&id=Part%20II.%20Other%20Information) This section provides additional information including risk factors, equity sales, exhibits, and official signatures [Item 1A. Risk Factors](index=46&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to risk factors were reported since the prior fiscal year's annual report - There have been no material changes in risk factors from those disclosed in the 2021 Form 10-K[172](index=172&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) No unregistered sales of equity securities or use of proceeds were reported during the period - None reported[173](index=173&type=chunk) [Item 6. Exhibits](index=46&type=section&id=ITEM%206.%20EXHIBITS) This section lists key exhibits filed, including certifications and the new credit agreement - Key exhibits filed include CEO/CFO certifications and the new Second Amended and Restated Credit Agreement dated March 1, 2022[175](index=175&type=chunk) [Signatures](index=47&type=section&id=Signatures) The report was officially signed by the Executive Vice President and Chief Financial Officer on March 4, 2022 - The Form 10-Q was signed on March 4, 2022, by Lawrence A. Hilsheimer, Executive Vice President and Chief Financial Officer[177](index=177&type=chunk)

Part I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) Greif, Inc. is a global producer of industrial packaging products and services, structured into three reportable segments, including the newly combined Global Industrial Packaging - Greif is a **global leader in industrial packaging**, serving diverse industries such as chemicals, food and beverage, and pharmaceuticals with a comprehensive product line including steel, fibre, and plastic drums, as well as containerboard and corrugated products[13](index=13&type=chunk) - In **2021**, the company **restructured its segments**, combining the Rigid Industrial Packaging & Services and Flexible Products & Services into a single reportable segment named **Global Industrial Packaging** to enhance cross-selling and operational effectiveness[15](index=15&type=chunk) Human Capital Overview (as of Oct 31, 2021) | Metric | Value | | :--- | :--- | | **Total Full-Time Employees** | ~16,000 | | **Geographic Distribution** | | | North America | 44% | | Europe, Middle East & Africa | 40% | | Asia Pacific | 9% | | Latin America | 7% | | **Gender Distribution** | | | Female | 14% | | Male | 86% | | **Union Representation** | ~38% | - The company's principal raw materials, including steel, resin, and containerboard, experienced **significant price increases** in **2021**, and Greif was able to **pass the majority of these cost increases on to its customers**[24](index=24&type=chunk) [Item 1A. Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces multiple material risks across market, industry, operational, financial, and regulatory domains - **Market & Economic Risks:** Business performance is **highly sensitive to general economic conditions**, recessions, and the ongoing COVID-19 pandemic, with global operations subject to **political instability and currency exchange fluctuations**[47](index=47&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - **Industry Risks:** The company operates in **highly competitive industries** facing **pricing pressure** from customer and supplier consolidation, and is sensitive to **raw material price fluctuations** (steel, resin, oil, old corrugated containers) and **supply chain disruptions**[62](index=62&type=chunk)[63](index=63&type=chunk)[67](index=67&type=chunk) - **Operational Risks:** Challenges include **successfully implementing business strategies**, **integrating acquisitions**, managing joint ventures, attracting/retaining qualified employees, and potential **security breach of IT systems or data privacy issues**[73](index=73&type=chunk)[76](index=76&type=chunk)[94](index=94&type=chunk) - **Financial Reporting Risks:** The company has a **significant amount of goodwill** (**$1.5 billion** as of Oct 31, 2021) which could be **impaired in the future**, and faces risks from **changes in tax legislation and underfunded pension plans**[102](index=102&type=chunk)[103](index=103&type=chunk)[105](index=105&type=chunk) - **Regulatory & Legal Risks:** The business must comply with **extensive environmental, health, and safety regulations**, with increasing focus on climate change and ESG initiatives potentially leading to **higher costs and capital expenditures**, and the company may be **unable to achieve its 2030 GHG emission reduction targets**[110](index=110&type=chunk)[120](index=120&type=chunk)[122](index=122&type=chunk) [Item 1B. Unresolved Staff Comments](index=30&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None [Item 2. Properties](index=31&type=section&id=Item%202.%20Properties) Greif operates 184 principal global locations, 113 owned and 71 leased, and owns approximately 175,000 acres of timber properties Principal Operating Locations by Segment | Segment | Owned | Leased | Total | | :--- | :--- | :--- | :--- | | **Global Industrial Packaging** | 65 | 36 | 101 | | **Paper Packaging & Services** | 48 | 35 | 83 | | **Total** | **113** | **71** | **184** | - As of October 31, 2021, the company owned approximately **175,000 acres** of timber properties in the southeastern United States[126](index=126&type=chunk) [Item 3. Legal Proceedings](index=31&type=section&id=Item%203.%20Legal%20Proceedings) The company is not a party to material legal proceedings, but anticipates over **$300,000** in sanctions for environmental violations - The company is involved in proceedings with the Wisconsin Department of Natural Resources (WDNR) and the U.S. Environmental Protection Agency (U.S. EPA) regarding **violations of environmental laws** at reconditioning facilities in Milwaukee, Wisconsin[129](index=129&type=chunk) - While no fines have been assessed, the company anticipates that monetary sanctions from the U.S. EPA and WDNR will exceed **$300,000**[129](index=129&type=chunk) [Item 4. Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reports no mine safety disclosures - None Part II [Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Greif's Class A and B Common Stock are NYSE-listed, paying quarterly dividends, with no share repurchases in 2021 or 2020 Annual Dividends Paid Per Share | Year | Class A | Class B | | :--- | :--- | :--- | | **2021** | $1.78 | $2.66 | | **2020** | $1.76 | $2.63 | - The company did not repurchase any shares of its Class A or Class B Common Stock during fiscal years **2021** or **2020**[133](index=133&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Greif's FY2021 saw net sales increase by **23.1%** to **$5.56 billion** and operating profit surge to **$585.2 million**, supported by strong liquidity and debt reduction Consolidated Financial Performance (in millions) | Metric | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $5,556.1 | $4,515.0 | +23.1% | | **Operating Profit** | $585.2 | $304.9 | +91.9% | | **Net Income** | $413.2 | $124.3 | +232.4% | | **Adjusted EBITDA** | $764.2 | $642.6 | +18.9% | - A significant contributor to **2021** profitability was a **$95.7 million** gain from the sale of approximately **69,200 acres** of timberland properties in Alabama[150](index=150&type=chunk) Segment Adjusted EBITDA (in millions) | Segment | 2021 | 2020 | | :--- | :--- | :--- | | **Global Industrial Packaging** | $453.3 | $324.3 | | **Paper Packaging & Services** | $302.0 | $306.4 | | **Land Management** | $8.9 | $11.9 | - Net cash from operating activities was **$396.0 million** in **2021**, a decrease from **$454.7 million** in **2020**, primarily due to **increased working capital requirements** (higher accounts receivable and inventory) driven by higher sales and raw material prices[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) - The company reduced its total long-term debt from **$2.34 billion** in **2020** to **$2.05 billion** in **2021**, aided by proceeds from the timberland sale and strong operating cash flow[207](index=207&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=54&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages market risks from interest rates, foreign currency, and commodity prices using derivative instruments for hedging - **Interest Rate Risk:** As of October 31, 2021, the company had interest rate swaps with a total notional amount of **$1.0 billion** to manage exposure to interest rate variability on its debt[217](index=217&type=chunk)[237](index=237&type=chunk) - **Currency Risk:** The company uses cross-currency swaps to synthetically convert **$334.4 million** of its USD-denominated debt to Euro-denominated debt, and had **$81.8 million** in notional value of foreign currency forward contracts outstanding at year-end to hedge foreign currency transactions[221](index=221&type=chunk)[246](index=246&type=chunk) - **Commodity Price Risk:** While the company purchases significant amounts of commodities like steel, resin, and pulpwood, it **does not currently engage in material hedging activities** for these raw materials[248](index=248&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=56&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The consolidated financial statements for FY2021 show strong growth, with net sales of **$5.56 billion**, net income of **$390.7 million**, and reduced long-term debt Consolidated Statement of Income Highlights (in millions) | Line Item | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Net sales** | $5,556.1 | $4,515.0 | $4,595.0 | | **Gross profit** | $1,093.0 | $914.7 | $959.9 | | **Operating profit** | $585.2 | $304.9 | $399.1 | | **Net income attributable to Greif, Inc.** | $390.7 | $108.8 | $171.0 | Consolidated Balance Sheet Highlights (in millions) | Line Item | Oct 31, 2021 | Oct 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $1,664.1 | $1,302.8 | | **Goodwill** | $1,515.4 | $1,518.4 | | **Total assets** | $5,815.8 | $5,510.9 | | **Long-term debt** | $2,054.8 | $2,335.5 | | **Total shareholders' equity** | $1,575.6 | $1,200.7 | Consolidated Statement of Cash Flows Highlights (in millions) | Line Item | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Net cash provided by operating activities** | $396.0 | $454.7 | $389.5 | | **Net cash provided by (used in) investing activities** | $46.8 | $(25.2) | $(1,989.3) | | **Net cash used in financing activities** | $(422.9) | $(405.3) | $1,583.5 | [Notes to Consolidated Financial Statements](index=64&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - **Note 2 - Goodwill:** The goodwill balance was **$1.515 billion** as of Oct 31, 2021, with the annual impairment test performed on August 1, 2021, resulting in **no impairment**[333](index=333&type=chunk)[334](index=334&type=chunk) - **Note 3 - Restructuring:** The company recorded **$23.1 million** in restructuring charges in **2021**, primarily to **optimize operations** in the Paper Packaging segment and **rationalize assets** in the Global Industrial Packaging segment[338](index=338&type=chunk)[339](index=339&type=chunk) - **Note 5 - Long-Term Debt:** Total long-term debt, net of current portion and financing costs, decreased to **$2.05 billion** in **2021** from **$2.34 billion** in **2020**[353](index=353&type=chunk) - **Note 9 - Post-Retirement Benefit Plans:** Defined benefit pension plans had a **net underfunded status** of **$38.4 million** (U.S.) and **$11.0 million** (non-U.S.) as of October 31, 2021[105](index=105&type=chunk) - **Note 13 - Business Segment Information:** In **2021**, the Rigid Industrial Packaging & Services and Flexible Products & Services segments were **combined into a single reportable segment**, **Global Industrial Packaging**[468](index=468&type=chunk) - **Note 16 - Disposals of Timberland:** In the second quarter of **2021**, the company sold approximately **69,200 acres** of timberland for **$145.1 million** in cash, resulting in a pre-tax gain of **$95.7 million**[484](index=484&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures](index=118&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosures) The company reports no changes in or disagreements with its accountants on accounting and financial disclosures - None [Item 9A. Controls and Procedures](index=118&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective, with an unqualified auditor opinion - Management concluded that the company's disclosure controls and procedures were **effective** as of the end of the fiscal year[500](index=500&type=chunk) - Based on an assessment using the COSO framework, management concluded that the company's internal control over financial reporting was **effective** as of October 31, 2021[503](index=503&type=chunk) - The independent auditor, Deloitte & Touche LLP, provided an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting[504](index=504&type=chunk)[505](index=505&type=chunk) [Item 9B. Other Information](index=120&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - None Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=120&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the **2022 Proxy Statement**[513](index=513&type=chunk) [Item 11. Executive Compensation](index=120&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the **2022 Proxy Statement**[518](index=518&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=120&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and equity compensation plans is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the **2022 Proxy Statement**[519](index=519&type=chunk)[520](index=520&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=122&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the **2022 Proxy Statement**[522](index=522&type=chunk)[523](index=523&type=chunk) [Item 14. Principal Accountant Fees and Services](index=122&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the **2022 Proxy Statement**[524](index=524&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=123&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits and financial statement schedules filed with the Form 10-K, including governance documents and material contracts - This section contains a list of **all exhibits filed with the Form 10-K**, including governance documents, debt agreements, and executive compensation plans[526](index=526&type=chunk)[527](index=527&type=chunk) - **Schedule II**, detailing consolidated valuation and qualifying accounts and reserves, is included in the report[530](index=530&type=chunk)[537](index=537&type=chunk) [Item 16. Form 10-K Summary](index=128&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no Form 10-K summary - None

Financial Data and Key Metrics Changes - Fiscal 2021 was an exceptional year with record financial results, including a 35% increase in net sales excluding foreign exchange impact compared to the prior year [24][25] - Adjusted Class A earnings per share more than doubled to $1.93 for Q4 and reached $5.60 for fiscal 2021, a 74% improvement year-over-year [25][26] - Fourth quarter adjusted EBITDA rose by $57 million, overcoming significant inflationary pressures and raw material costs [24][25] Business Line Data and Key Metrics Changes - Global industrial packaging business saw a nearly 3% sales increase year-over-year, with large plastic drums and intermediate bulk container volumes growing by over 18% and 10% respectively [15][18] - Paper Packaging's fourth quarter sales rose by approximately $120 million due to stronger volumes and higher containerboard prices, with adjusted EBITDA increasing by roughly $10 million [20][22] - Tube and core volumes increased by 7% per day compared to the prior year, indicating strong demand across key end markets [22] Market Data and Key Metrics Changes - The Americas region recorded strong mid-single-digit growth, with customers reporting solid order backlogs despite supply chain disruptions [17] - APAC region faced challenges due to strategic pricing actions and supply chain disruptions, leading to a 1.5% decline in global steel drum volume [16][19] - Demand for durables and e-commerce growth remained solid, with no slowdown anticipated in the near term [22] Company Strategy and Development Direction - The company aims to continue enhancing its sustainability performance and embedding ESG deeper into its business strategies [10][12] - Strategic planning is underway to determine the focus and extent of growth activities, leveraging a strong balance sheet for shareholder benefit [29][30] - The company anticipates spending between $150 million and $170 million in capital expenditures for fiscal 2022, targeting a growing dividend [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to benefit from ongoing strength in key end markets and operational execution [39][40] - The guidance for fiscal 2022 reflects anticipated lower profits in the GIP segment, offset by higher profitability in other areas, highlighting the benefits of a diversified portfolio [31][32] - Management acknowledged the challenges posed by inflation and supply chain disruptions but remains optimistic about the company's resilience [30][32] Other Important Information - The company successfully de-levered its balance sheet, repaying $261 million in total debts in Q4 2020 [28] - The transition of leadership from Peter Watson to Ole Rosgaard was highlighted, with confidence in the new CEO's ability to lead the company forward [40][41] Q&A Session Summary Question: Inventory Building and Market Conditions - Management noted that customers are not building inventory but adjusting stock levels due to supply chain issues, with solid order books reported [44][46] Question: Volume Growth Assumptions - For GIP, global steel drum volume is expected to grow low single digits, while the IBC business is projected to grow in the high to mid-teens [52] Question: Paper Volumes and Demand - The paper business is experiencing strong demand, with tube and core business growing mid- to high single digits, despite some supply chain disruptions [60][62] Question: Steel Pricing and Guidance - The company does not expect a significant drag from steel-related issues in 2022, with a stable steel cost environment anticipated [72][73] Question: Capital Allocation and Expenditure - The company will maintain a disciplined approach to capital allocation, focusing on deleveraging and strategic growth initiatives [91]

PACKAGING SUCCESS TOGETHER™ Fourth Quarter and Fiscal 2021 Earnings Conference Call – December 9, 2021 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 forwa ...

PACKAGING SUCCESS TOGETHER™ Third Quarter Fiscal 2021 Earnings Conference Call – September 2, 2021 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-l ...

Greif, Inc. (NYSE:GEF) Q3 2021 Results Conference Call September 2, 2021 8:30 AM ET Company Participants Matt Eichmann - Investor Relations Pete Watson - President and Chief Executive Officer Larry Hilsheimer - Chief Financial Officer Ole Rosgaard - Chief Operating Officer Conference Call Participants Ghansham Panjabi - Baird George Staphos - Bank of America Securities Mark Wilde - BMO Capital Markets Adam Josephson - KeyBanc Capital Markets Gabe Hajde - Wells Fargo Operator Good day and thank you for stand ...

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Greif, Inc.'s unaudited condensed consolidated financial statements for the three and nine months ended July 31, 2021, and 2020, including income, comprehensive income, balance sheets, cash flows, and changes in shareholders' equity, with accompanying notes [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The company reported significant year-over-year growth in net sales and profitability for both the third quarter and the first nine months of fiscal 2021, with net income attributable to Greif, Inc. increasing to **$113.0 million** and **$286.2 million** respectively Consolidated Income Statement Highlights (in millions, except per share data) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $1,490.8 | $1,083.0 | $3,977.9 | $3,353.7 | | **Gross Profit** | $318.8 | $219.7 | $796.9 | $683.0 | | **Operating Profit** | $173.1 | $61.9 | $443.7 | $213.1 | | **Net Income to Greif, Inc.** | $113.0 | $20.7 | $286.2 | $64.4 | | **Diluted EPS (Class A)** | $1.89 | $0.35 | $4.80 | $1.09 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of July 31, 2021, shows an increase in total assets to **$5.72 billion** from **$5.51 billion** at October 31, 2020, driven by higher trade accounts receivable and inventories, while total long-term debt decreased, contributing to a stronger equity position Key Balance Sheet Items (in millions) | Account | July 31, 2021 | October 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $1,566.9 | $1,302.8 | | **Total Assets** | $5,723.6 | $5,510.9 | | **Total Current Liabilities** | $1,241.7 | $1,000.1 | | **Long-term Debt** | $2,089.7 | $2,335.5 | | **Total Shareholders' Equity** | $1,507.5 | $1,200.7 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended July 31, 2021, net cash provided by operating activities was **$258.7 million**, comparable to the prior year, with investing activities providing **$86.2 million** primarily from timberland sales, and financing activities using **$354.1 million** mainly for debt repayment and dividends Cash Flow Summary for Nine Months Ended July 31 (in millions) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $258.7 | $254.3 | | **Net Cash from Investing Activities** | $86.2 | $(14.8) | | **Net Cash from Financing Activities** | $(354.1) | $(225.6) | | **Net (Decrease) in Cash** | $(6.1) | $21.2 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies and specific financial items, including changes in reportable segments, restructuring charges, long-term debt composition, financial instruments, segment performance, and the significant gain from timberland disposal - Effective in the first quarter of 2021, the company combined its Rigid Industrial Packaging & Services and Flexible Products & Services segments into a single reportable segment named **Global Industrial Packaging**[22](index=22&type=chunk)[87](index=87&type=chunk) - Restructuring charges of **$18.8 million** were recorded in the first nine months of 2021, down from **$26.8 million** in the prior-year period, focusing on optimizing the Paper Packaging segment and rationalizing the Global Industrial Packaging segment[25](index=25&type=chunk)[27](index=27&type=chunk) - On July 14, 2021, the company paid in full its **€200.0 million** 7.375% Senior Notes due 2021 using proceeds from a new **$225.0 million** Incremental Term A-3 Loan[32](index=32&type=chunk)[35](index=35&type=chunk) - In the second quarter of 2021, the company sold approximately 69,200 acres of Alabama timberland for **$145.1 million** in cash, resulting in a pre-tax gain of **$95.7 million**, with proceeds used for debt repayment[90](index=90&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for the third quarter and first nine months of 2021, highlighting strong performance driven by higher volumes and prices across key segments, offsetting increased raw material and transportation costs, and detailing the new segment structure, financial results by segment, balance sheet changes, and liquidity and capital resources [Third Quarter Results of Operations](index=28&type=section&id=Third%20Quarter%20Results%20of%20Operations) Third quarter 2021 results showed substantial improvement over the prior year, with net sales growing **37.7%** to **$1.49 billion** and operating profit nearly tripling to **$173.1 million**, driven by strong performance in both the Global Industrial Packaging and Paper Packaging & Services segments Q3 2021 vs Q3 2020 Performance (in millions) | Metric | Q3 2021 | Q3 2020 | Change | | :--- | :--- | :--- | :--- | | **Total Net Sales** | $1,490.8 | $1,083.0 | +37.7% | | **Total Operating Profit** | $173.1 | $61.9 | +179.6% | | **Total Adjusted EBITDA** | $237.8 | $159.4 | +49.2% | - Management anticipates customer demand trends from Q3 to continue into Q4, with supply markets for steel, resin, and old corrugated containers (OCC) expected to remain tight, and OCC prices likely to continue increasing[118](index=118&type=chunk) [Year-to-Date Results of Operations](index=35&type=section&id=Year-to-Date%20Results%20of%20Operations) For the first nine months of 2021, net sales increased by **18.6%** to **$3.98 billion**, operating profit more than doubled to **$443.7 million** significantly boosted by a **$95.7 million** gain on timberland sale, and Adjusted EBITDA grew **13.3%** to **$552.9 million** Nine Months 2021 vs 2020 Performance (in millions) | Metric | 9 Months 2021 | 9 Months 2020 | Change | | :--- | :--- | :--- | :--- | | **Total Net Sales** | $3,977.9 | $3,353.7 | +18.6% | | **Total Operating Profit** | $443.7 | $213.1 | +108.2% | | **Total Adjusted EBITDA** | $552.9 | $488.1 | +13.3% | - The Global Industrial Packaging segment's Adjusted EBITDA increased by **$81.7 million** year-to-date, driven by higher volumes and prices, while the Paper Packaging & Services segment's Adjusted EBITDA decreased by **$14.7 million** due to higher input and transportation costs offsetting price and volume gains[157](index=157&type=chunk)[160](index=160&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through operating cash flows and various credit facilities, with total long-term debt, net of current portion and financing costs, at **$2.09 billion** as of July 31, 2021, a reduction from **$2.34 billion** at October 31, 2020, and **$738.5 million** of available borrowing capacity under its revolving credit facility - Primary sources of liquidity are operating cash flow, senior secured credit facilities, senior notes, and trade accounts receivable credit facilities[175](index=175&type=chunk) Long-Term Debt Summary (in millions) | Category | July 31, 2021 | October 31, 2020 | | :--- | :--- | :--- | | **2019 Credit Agreement - Term Loans** | $1,277.3 | $1,429.8 | | **Senior Notes due 2027** | $495.7 | $495.1 | | **Accounts receivable credit facilities** | $386.4 | $310.0 | | **Total Long-term debt, net** | $2,089.7 | $2,335.5 | - As of July 31, 2021, the company had **$738.5 million** of available borrowing capacity under its **$800.0 million** secured revolving credit facility[182](index=182&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no significant changes in its quantitative and qualitative disclosures about market risk from those presented in its Annual Report on Form 10-K for the fiscal year ended October 31, 2020 - There have been no significant changes in market risk disclosures since the 2020 Form 10-K[200](index=200&type=chunk) [Controls and Procedures](index=44&type=section&id=Controls%20and%20Procedures) Management confirms no material changes in internal control over financial reporting during the most recent fiscal quarter and that disclosure controls and procedures were effective as of the end of the period - No material changes to internal control over financial reporting occurred during the quarter[201](index=201&type=chunk) - The CEO and CFO concluded that disclosure controls and procedures were effective as of July 31, 2021[202](index=202&type=chunk)[203](index=203&type=chunk) [Part II. Other Information](index=45&type=section&id=Part%20II.%20Other%20Information) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended October 31, 2020 - There have been no material changes in risk factors from those disclosed in the 2020 Form 10-K[204](index=204&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None reported for the period[205](index=205&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and an amendment agreement related to a receivables financing facility [Signatures](index=46&type=section&id=Signatures) The report is duly signed on September 2, 2021, by Lawrence A. Hilsheimer, the Executive Vice President and Chief Financial Officer of Greif, Inc

PACKAGING SUCCESS TOGETHER™ Second Quarter Fiscal 2021 Earnings Conference Call – June 10, 2021 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-look ...

Greif, Inc. (NYSE:GEF) Q2 2021 Results Conference Call June 10, 2021 8:30 AM ET Company Participants Matt Eichmann - Vice President, Investor Relations & Corporate Communications Pete Watson - Vice President and Chief Executive Officer Larry Hilsheimer - Chief Financial Officer Conference Call Participants George Staphos - BofA Securities Gabe Hajde - Wells Fargo Mark Wilde - BMO Capital Markets Adam Josephson - KeyBanc Matt Krueger - Robert W. Baird Justin Bergner - Gabelli Operator Good day and thank ...