Investor Presentation Investor Presentation December 2008 December 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
Company Profile • Founded in 1877 as a packaging company • Public company since 1926 • Diversified business platform • Leading industrial packaging company with over 30% global market share • More than 200 operations in 48 countries 3
Diversified Business Platform (Dollars in millions) (Year ended October 31, 2008) Sales $3,777 (1) (1) Operating Profit $413 Industrial Paper Timber Packaging Packaging Sales Sales $3 061 $3,061 S l Sales $697 $697 Sales S l $19 $19 (1) (1) (1) Operating Profit $315 Operating Profit $77 Operating Profit $21 (1) Before restructuring charges and timberland disposals, net. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation. 4
Performance Trajectory (Dollars in millions) (D ll i illi ) $4,000 $3,777 1997 2008 CAGR $3,500 $3,322 Net Sales $688 $3,777 17% $3,000 Operating Profit ( 1) $35 $413 25% $2,628 $2,424 $2,500 $2,209 “Earn $1,916 $2,000 “Re-earn the “Re earn the $1,633 and $1,456 Right to Grow” $1,500 Grow” $964 $688 $853 $1,000 $846 $500 (1) (1) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 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 f for $223 million $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) Before restructuring charges and timberland disposals, net. See GAAP to Non GAAP reconciliation included in the Appendix of this presentation. 5
Investment Thesis: Re-earning the Right to Premium Valuation • GBS – a catalyst enabling strong relative performance and value creation during cyclical trough • Diversity – a compelling competitive advantage • Strong balance sheet and access to alternate sources of liquidity liquidity • Balanced focus on defense (contingency planning/ enterprise risk management) and offense enterprise risk management) and offense • Solid, experienced and performance-driven management team with record of accomplishment • Diversity > > Strength Performance 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 • • 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 7
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 8
Industrial Packaging (1) (1) Net sales Operating profit $315 $3,061 $320 $2,950 2002 2008 CAGR 2002 2008 (1) CAGR $280 $2,654 $2,775 $229 $1,268 $3,061 16% $41 $315 40% $2,600 $240 $2 425 $2,425 $200 $167 $2,250 $1,993 $1 60 $2,075 $123 $1,804 $112 $1 ,900 $1 20 $1,621 $1 ,725 $70 $80 $1 ,550 $1,384 $41 $1,268 $1 ,375 $40 $1 ,200 $- 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) Before restructuring charges. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation. 9
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
Multinational Customer Base Top 10 customers represent less than 20% of Greif’s annual net sales 11
Paper Packaging (1) (1) Net sales Operating profit $90 $900 2002 2008 CAGR 2002 2008 CAGR $77 $75 $68 $800 $324 $697 14% $21 $77 24% $60 $697 $60 $60 $ $700 $654 $654 $620 $608 $41 $568 $45 $600 $504 $30 $29 $500 $30 $21 $400 $1 5 $324 $300 $- 2002 2003 2004 2005 2006 2007 2008 2002 2003 2004 2005 2006 2007 2008 Served markets Competitive advantages Customer focus ▲ Fully-integrated containerboard ▲ network t k Highly efficient sheet feeder ▲ Feed and footprint Packaging Seed (1) Before restructuring charges. See GAAP to Non-GAAP reconciliation included in the Appendix of this presentation. 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 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. ▲ 61,600 acres (21%) identified as special use properties at 10/31/08. ti t 10/31/08 Competitive advantages p g Timber established as a line of 2001 business and portfolio began to ▲ Undervalued timberland assets be actively managed. (book value $200 million at 10/31/08). 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. ▲ 296,150 acres in North America in attractive Special use properties 2006 locations, including 268,700 acres in the identified. Gains total $31 United States and 27,450 acres in Canada. United States and 27 450 acres in Canada million since the beginning of 2006. 14
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