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Investor Presentation Investor Presentation March 2009 Safe Harbor Forward Looking Statements This presentation contains certain forward looking information within the meaning of the Private Securities Litigation Reform Act of 1995. The


  1. Investor Presentation Investor Presentation March 2009

  2. Safe Harbor Forward ‐ Looking Statements This presentation contains certain forward ‐ looking information within the meaning of the Private Securities 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 ‐ looking statements are subject to certain risks and uncertainties that could cause events and the Company’s actual results to differ materially from those expressed or implied. Please see the disclosure regarding forward ‐ looking statements immediately preceding Part I of the Company’s Annual Report on Form 10 ‐ K for the fiscal year ended October 31, 2008. The Company assumes no obligation to update any forward ‐ looking statements. Regulation G Regulation G This presentation includes certain non ‐ GAAP financial measures that exclude restructuring and other unusual charges and gains that are volatile from period to period. Management believes the non ‐ GAAP measures provide a better indication of operational performance and a more stable platform on which to compare the historical performance of the Company than the most nearly equivalent GAAP data. All non ‐ GAAP data in the hi t i l f f th C th th t l i l t GAAP d t All GAAP d t i th 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 Web site at www.greif.com. 2

  3. Company Profile • Founded in 1877 as a packaging company company • Initial public offering in 1926 • Diversified business platform • Leading industrial packaging company with over 30% global market share • Approximately 200 operations in more than 45 countries 3

  4. Diversified Business Platform (Twelve Months Ended January 31, 2009) (Dollars in millions) Sales $3,597 (1) (1) Operating Profit $355 Industrial Paper Timber Packaging Packaging Sales Sales $2,919 $2 919 S l Sales $659 $659 S l Sales $19 $19 (1) (1) (1) Operating Profit $259 Operating Profit $78 Operating Profit $18 (1) Before restructuring charges, restructuring-related inventory charges and timberland disposals, net. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation. 4

  5. 2009 Goals • Outperform on a relative basis and year ‐ over ‐ year operating profit improvement • Place GBS on a "war footing" and accelerate its impact • Flawlessly execute contingency actions to protect operating profits • Rationalize footprint to reduce fixed costs and adjust to lower activity levels • Extend and expand credit facilities to improve financial flexibility • Disciplined execution of growth strategy – balanced focus on defense and offense Overarching goal : Emerge from the downturn even stronger than we entered it 5 •5

  6. Our Aspirations Break-away momentum Preferred productivity partner Organic growth: ≥ 5% (GDP + 2 • • Compelling value proposition points) based on what customers are Operating profit margin: ≥ 12.5% Operating profit margin: ≥ 12 5% • willing to pay for willing to pay for Growth SG&A/net sales: ≤ 7.5% • • Low-cost provider of high-quality RONA: ≥ 25% products with consistent and • reliable delivery ROIC ≥ WACC: 5 points • Value People Productivity Productivity imperative Strong performance ethic Real-cost productivity: ≥ 4% per year • • T Transparent governance t • Capital productivity structure › OWC/net sales: ≤ 7.5% • Performance and consequence › Asset turns: ≥ 2x management › World-class strategic sourcing g g • • Talent and succession Talent and succession capabilities management 6

  7. The Framework for Achieving Aspirations The Greif Way Greif Production S System t Working Capital Greif Global Operational Operational Operating Supply Excellence Chain System Commercial Excellence Core Strategy People Performance Processes Management 7

  8. S Segment Review t R i

  9. Industrial Packaging Net sales Operating profit (2) (2) (1) 2002 2009 (1) CAGR 2002 2009 (1) CAGR $1,268 $2,919 14% $41 $259 34% Served markets Competitive advantages ▲ Leading market position Chemicals and ▲ Global footprint Petroleum ▲ Compelling value proposition ▲ Compelling value proposition Agriculture ▲ Comprehensive product portfolio Pharmaceutical ▲ Strong customer relationships (1) Twelve months ended January 31, 2009. (2) Before restructuring charges and restructuring-related inventory charges. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation. 9

  10. Most Comprehensive Industrial Packaging Portfolio Water Global Closures Presence Steel Plastic Fibre IBC Bottles #1 #2 #1 #4 #1 #1 (1) Mauser Schutz Greif’s global market share exceeds 30% (1) Acquired by Dubai International Capital LLC in 2007. 10

  11. Paper Packaging (2) Net sales Operating profit 2002 2009 (1) CAGR 2002 2009 (1) CAGR $324 $324 $659 $659 12% 12% $21 $21 $78 $78 23% 23% Served markets Competitive advantages Customer focus ▲ Fully-integrated containerboard ▲ network Highly efficient sheet feeder ▲ Feed and Feed and footprint footprint Packaging P k i Seed (1) Twelve months ended January 31, 2009. (2) Before restructuring charges. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation. 11

  12. Fully ‐ integrated Paper Packaging Network 4 Box Plants Massillon, Ohio Mill Specialty 6 Corrugated Plants 2 Multiwall 6 Sheet Bag Plants Riverville, Virginia Mill Feeder Plants Production Consumption 600 000 tons 600,000 tons 650 000 tons 650,000 tons Annual containerboard requirements >100% of production capacity Annual containerboard requirements >100% of production capacity 12

  13. Timber Served Markets Timber, timberland, special use properties. ▲ Properties primarily located in Alabama, ▲ Properties primarily located in Alabama, Louisiana and Mississippi in the United States and the Quebec and Ontario provinces in Canada. ▲ 61,750 acres (21%) identified as special use properties at 1/31/09. ti t 1/31/09 Competitive advantages p g Timber established as a line of 2001 business and portfolio began to ▲ Undervalued timberland assets be actively managed. (book value $203 million at 1/31/09). Over $200 million of timber Over $200 million of timber ▲ Opportunities to monetize special use ▲ Opportunities to monetize special use 2001 – 2007 2001 2007 properties. assets have been monetized. ▲ 296,750 acres in North America in attractive Special use properties 2006 locations, including 269,350 acres in the identified. Gains total $31 United States and 27,400 acres in Canada. United States and 27 400 acres in Canada million since the beginning of 2006. 13

  14. Fi Financial Review i l R i

  15. Financial Profile (Dollars in millions) 2002 2003 2004 2005 2006 2007 2008 2009 (1) $1,633 $1,916 $2,209 $2,424 $2,628 $3,322 $3,777 $3,597 Net Sales (2) $ 92 $ 121 $ 155 $ 171 $ 238 $ 311 $ 413 $ 355 Operating Profit (2) $ 32 $ 43 $ 83 $ 96 $ 140 $ 190 $ 267 $ 220 Net Income (2) (3) 7.5% 10.1% 13.3% 15.9% 21.5% 21.3% 24.8% 20.6% RONA (1) Twelve months ended January 31, 2009. (2) Before restructuring charges, restructuring-related inventory charges, debt extinguishment charges, timberland disposals, net and cumulative g g , g y g , g g , p , effect of change in accounting principle. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation. (3) An explanation of the calculation of RONA is included in the Appendix of this presentation 15

  16. Strong Cash Generation ( 1) (Dollars in millions) $1,400 , Purchases of $1,200 PP&E, net $399 $1,000 $800 $800 F Free Operating Cash Flow Acquisitions Cash Flow $600 $1,027 $625 $1,426 $400 Dividends Share $236 Repurchases $200 $200 $57 Other $109 $0 Cash Sources Cash Uses 20% of Operating Cash Flow Returned to Shareholders (1) Fiscal 2002 to 2008 16

  17. Cash Dividends Annual Cash Dividends • 75 consecutive years of Class A cash dividends paid • 9 annual cash dividend increases in last 10 years y • 30%-35% payout target over complete business over complete business Class B Cl B cycle • Current yield (1) Class A 5.7% Class B Class B 8.3% 8 3% (1) At 3/9/09 17

  18. 2009 Operating Profit Bridge (Dollars in millions) (1)(2) $(20) (1) $383 $(100) ( ) $50 $ $13 $13 $376 $376 $50 2008 Contribution Greif Accelerated Other, net 2009 Foreign Adjusted Margin Business GBS Illustrated Exchange System Initiatives (1) Before restructuring charges, restructuring-related inventory charges and timberland disposals, net. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation. (2) Excludes one-time $30 million gain related to the divestiture of business units in Australia and Zimbabwe. As of February 25, 2009 18

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