Investor Presentation Investor Presentation October 2008 October 2008
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, 2007. The Company assumes no obligation to update any forward-looking statements. 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 meas res pro ide a better indication of operational performance and a more stable platform on measures provide a better indication of operational performance and a more stable platform on which hich to compare the historical performance of the Company than the most nearly equivalent GAAP data. All non-GAAP data in the presentation are indicated by footnotes. Tables showing the reconciliation between GAAP and non-GAAP measures are available at the end of this presentation and on the Greif W b it Web site at www.greif.com. t if 2
Investment Thesis • Diversity (geographic / segment / asset class) – a competitive advantage • Financial flexibility and access to alternate sources of liquidity • Rigorous enterprise risk management process g p g p • Contingency actions to protect profits / mitigate headwinds • • GBS GBS – a catalyst for creating value and controlling the a catalyst for creating value and "controlling the controllable" • Balanced focus on defense and offense – execute growth Balanced focus on defense and offense execute growth strategy of consolidation, emerging markets and adjacencies Focus Discipline p Passion
Diversified Business Platform (Dollars in millions) (Twelve months ended July 31, 2008) Sales $3,681 Operating Profit * $398 Industrial Paper Timber Packaging Packaging Sales Sales $2,970 $2 970 S l Sales $691 $691 Sales S l $20 $20 Operating Profit * $304 Operating Profit * $73 Operating Profit * $20 * Before restructuring charges and timberland disposals, net. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation. 4
Performance Trajectory (D ll (Dollars in millions) i illi ) $4,000 $3,681 1997 2008 (1) CAGR $3,500 $3,322 Net Sales $688 $3,681 17% $3 000 $3,000 Operating Profit (2) Operating Profit (2) $35 $35 $398 $398 25% 25% $2,628 $2,424 $2,500 $2,209 $1,916 $2,000 $1,633 “Earn $1,456 “Re earn the “Re-earn the $1,500 and Right to Grow” $964 Grow” $853 $846 $688 $1,000 $500 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(1) March 30, 1998 March 2, 2001 March 4, 2003 September 22, 2006 Launched Acquired Sonoco Acquired Van Leer Acquired Delta Transformation to Products’ industrial Industrial Packaging Petroleum for $98 Greif Business System packaging business from Huhtamaki for million for $223 million f $223 illi $555 million November 1, 1998 November 30, 2006 September 30, 2003 CorrChoice joint Acquired steel drum and Remaining interest in venture formed (Greif closures businesses of CorrChoice obtained ownership 63.24%) Blagden Packaging for €205 million €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. 5
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 • • Low-cost provider of high-quality Growth SG&A/net sales: ≤ 7.5% • products with consistent and RONA: ≥ 25% • 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
The Framework for Achieving Aspirations The Greif Way Greif Production System Working Capital Greif Greif Gl b l Global Operational Supply Operating Excellence Chain System Commercial Excellence Excellence Core Performance Strategy People Management g Processes Processes 7
Industrial Packaging Net sales Operating profit (2) $304 $2,970 $320 $2,950 $2,775 $2,654 $280 2002 2008 (1) CAGR 2002 2008 (1) CAGR $2,600 $229 $240 $1,268 $2,970 16% $41 $304 42% $2,425 $200 $200 $2,250 $167 $1,993 $160 $2,075 $123 $1,804 $112 $1 ,900 $120 $1,621 $1 ,725 $70 $80 $1 ,550 $41 $1,384 $40 $1,268 $ , $1 $ ,3 5 ,375 $1 ,200 $- (1) (1) 2002 2003 2004 2005 2006 2007 2008 2002 2003 2004 2005 2006 2007 2008 Competitive advantages Served markets ▲ Leading market position Chemicals, paints and pigments, petroleum, ▲ Global footprint industrial coatings ▲ Compelling value proposition ▲ Compelling value proposition Agriculture ▲ Comprehensive product portfolio Pharmaceutical ▲ Strong customer relationships (1) Twelve months ended July 31, 2008. (2) Before restructuring charges. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation. 8
Most Comprehensive Industrial Packaging Portfolio Water Global Closures Presence Steel Plastic Fibre IBC Bottles #1 #2 #1 #4 #1 #1 Mauser * Schutz Greif’s global market share exceeds 30% * Acquired by Dubai International Capital LLC in 2007. 9
Paper Packaging Net sales Operating profit (2) $900 $90 $73 2002 2008 (1) CAGR 2002 2008 (1) CAGR $800 $75 $68 $324 $691 14% $60 $21 $73 24% $691 $700 $60 $654 $654 $620 $608 $41 $600 $568 $45 $504 $30 $29 $500 $30 $21 $400 $15 $324 $324 $300 $- (1) (1) 2002 2003 2004 2005 2006 2007 2008 2002 2003 2004 2005 2006 2007 2008 Served markets Competitive advantages Customer focus ▲ Fully-integrated containerboard ▲ network network Highly efficient sheet feeder ▲ footprint Feed and Packaging Seed Improving fundamentals 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. 10
Fully-integrated Paper Packaging Network 7 Box Plants Massillon, Ohio Mill 6 Specialty Corrugated Plants 2 Multiwall 6 Sheet Bag Plants Riverville, Virginia Mill Feeder Plants Production Consumption 600 000 tons 600,000 tons 800 000 tons 800,000 tons Annual containerboard requirements >100% of production capacity Annual containerboard requirements >100% of production capacity 11
Timber Served 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 properties at 7/31/08. ti t 7/31/08 Competitive advantages p g Timber established as a line of 2001 business and portfolio began to ▲ Undervalued timberland assets be actively managed. (book value $199 million at 7/31/08). 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. ▲ 295,400 acres in North America in attractive Special use properties 2006 locations, including 267,950 acres in the identified. Gains total $29.4 United States and 27,450 acres in Canada. United States and 27 450 acres in Canada million since the beginning of 2006. 12
Financial Review
Financial Profile Dollars in millions (1) (1) (1) (1) 2002 2003 2004 2005 2006 2007 2007 2008 Net Sales $1,633 $1,916 $2,209 $2,424 $2,628 $3,322 $3,176 $3,681 (2) ( ) Operating Profit O ti P fit $ 92 $ 92 $ $ 121 121 $ $ 155 155 $ $ 171 171 $ $ 238 238 $ $ 311 311 $ 293 $ 293 $ 398 $ 398 (2) Net Income $ 32 $ 43 $ 83 $ 96 $ 140 $ 190 $ 177 $255 (2) (2) RONA 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 $ 164 $164 (1) Twelve months ended July 31. (2) 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. 14
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