2q 2015 conference call slide presentation

8/18/2019 2Q 2015 Conference Call Slide Presentation

1/44

Q2 2015 EarnConference C


2/44

Please submit questions to [email protected]

[email protected]

mailto:[email protected]:[email protected]


3/44

SAFE HARBORForward-Looking Statements

All presentations contain certain forward-looking information within the meaning of the Private Securities Litigation ReAct of 1995. The words “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “aspiration,” “objective,” “project,” “b“continue,” “on track” or “target” or the negative thereof and similar expressions, among others, identify forward-lookingstatements. 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 resultdiffer materially from those expressed or implied. Please see the disclosure regarding forward-looking statementsimmediately preceding Part I of the Company’s Annual Report on the most recently filed Form 10-K. The company assuobligation to update any forward-looking statements.

Regulation G

These presentations may include certain non-GAAP financial measures like EBITDA and other measures that exclude sitems such as restructuring and other unusual charges and gains that are volatile from period to period. Management of tcompany uses the non-GAAP measures to evaluate ongoing operations and believes that these non-GAAP measures areuseful to enable investors to perform meaningful comparisons of current and historical performance of the company. All GAAP data in the presentation are indicated by footnotes. Tables showing the reconciliation between GAAP and non-GAmeasures are available at the end of this presentation and on the Greif website at www.greif.com.


4/44

Agenda

▪ Q2 2015 Overview

▪ Transformation

▪ Closing Comments


5/44

Q2 2015 Results▪ Net sales flat compared to prior year after adjusting for the effect of

divestitures and currency fluctuations

▪ Improved Operating Profit Before Special Items (“OPBSI”) 1 to 7271.9M

▫ Gross profit margin improvement of 60 bps vs prior year▫ Sequential quarter gross profit margin improvement of 271 bps▫ OPBSI margins increased by 118 bps vs prior year▫ Class A EPS Before Special Items 1 of $0.53

Early Transformation BenefitsOffsetting Volatile Global Market Conditions

1 A summary of all special items that are included in the operating profit before special items and Class A EPS before special items is set forth in the appendix of this presentation.

Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly comparable GAAP financial measures is included in the a ppendix of this presentation.


6/44

Q2 2015 Highlights of Transformation Strategy

▪ Highly experienced top talent additions:

▫ DeeAnne Marlow – Senior VP of Human Resources

▫ Michael Cronin – President of RIPS EMEA

▫ Ole Rosgaard – President of RIPS North America 1

▪

Began implementation of SG&A reductions, plant closures, divestiturenetwork consolidation of our underperforming assets

▪ Additional growth and transformation activities on-going

1 Ole Rosgaard will start on August 1, 2015.


7/44

Rigid Industrial Packaging & Services (RIPS)

Q2 15 Sales: $666.6M, down 15.0% vs. PY Q2 15 OPBSI: $47.7M, down

RIPS North America

Volumes slightly lower year over year

Competitive pressures driven by softer demand such as lower oil and gas drilling activities

Deflationary pressure on input costs

Through headcount reductions, facility closures and network consolidations, significant costs have been t

of the business

RIPS Latin America

Gross profit improvement despite the negative impact of foreign currency

Delayed agricultural season impacted Q2 results

Divested plastic drum and IBC business in Brazil

Executed transformation initiatives including plant closures, networkconsolidation and SG&A savings



8/44

Rigid Industrial Packaging & Services (RIPS cont.)

Q2 15 Sales: $666.6M, down 15.0% vs. PY Q2 15 OPBSI: $47.7M, down

RIPS Europe, Middle East, and Africa

Net sales decreased mainly due to the negative impact of foreign currency, fiscal 2014 divestitures anddeflationary pressure on input costs

Volumes increased over prior year

Sequential quarter improvement in Eastern Europe due to improving market environment in Russia

Transformation initiatives underway: plant consolidation and SG&A cost reductions

RIPS Asia Pacific

Higher margins on steady volumes

OPBSI remained flat due to the negative impact of foreign currency and significant competition in Asia moffset by lower raw material cost

Divested Taiwan steel drum business

Executed transformation initiatives including plant closures, networkconsolidation and SG&A savings



9/44

Paper Packaging

Solid performance against competitive headwindsQ2 15 Sales: $160.4M, down 5.5% vs. PY Q2 15 OPBSI: $28.0M, u

Net sales decrease attributable to lower prices for containerboard and slightly lower volumecorrugated sheet business

Gross profit margin improvement of 31 bps vs prior year

New market entrants pressuring volume and margins

OPBSI increased due to lower freight, maintenance and utility costs, partially offset by lowesales

Growth projects on schedule. This includes the modernization of the Riverville containerboaVirginia and the installation of a second corrugator in North Carolina. Both expected to contincremental benefits later this year



10/44

Flexible Products & Services (FPS)

OPBSI increase driven by transformation and SG&A initiativesQ2 15 Sales: $82.0M, down 22.1% vs. PY Q2 15 OPBSI: ($5.7M), up

Net sales decreased over prior year as a result of the fiscal 2014 sale of the multiwall businethe negative impact of foreign currency

Operating loss improvement compared to prior year, which included fixed costs associated woccupation of our Hadimkoy facility

The shift to an in-house labor model was largely completed in Q2 which is starting to showproductivity benefits

Strategic plans finalized and transformation initiatives underway: commercial improvementrationalization; and SG&A reductions



11/44

Land Management

Results driven by increased timber sales

Higher timber sales in Q2 2015 compared to Q2 2014

OPBSI increased due to higher net sales and lower transportation costs

Timberland gains were immaterial in Q2 2015 versus $8.7M of timberland gains in Q2

Q215 Sales: $6.9M, up 13.1% vs. PY Q215 OPBSI: $2.6M, up



12/44

Q2 15 Q2 14 YTD 15

Net Sales 915.9 1,065.5 1,818.2

Operating Profit 51.1 79.1 116.5

Operating Profit Before Special Items 1 72.6 71.9 114.9

Net Income Attributable to Greif, Inc. 20.8 38.4 50.9

Net Income Attributable to Greif, Inc. Before Special Items 1 31.5 33.6 48.2

Class A Earnings Per Share 0.35 0.65 0.87

Class A Earnings Per Share Before Special Items 1 0.53 0.58 0.82

Q2 2015 Financial Performance (Dollars in Millions, except per share amounts)

1 A summary of all special items that are included in t he operating profit before special items, net income attributable to Greif, Inc. before special items and Class A earnings per share before special items is set forth in theappendix of this presentation.



13/44

Q2 2015 Cash Flow

▪ Net debt 1 decreased $150.1M from $1,298.8M at Q2 2014 to $1,148.7M 2015

▪ Paper Packaging Q2 capital expenditure payments were approximately $11

1 Net debt represents long-term debt plus the current portion of long-term debt plus short-term borrowings less cash and cash equivalents.

Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly comparable GAAP financial measures is included in the appendix of this presentation.


14/44

▪ Negative FX translation impact on Q2 net sales of (97.6M) and YTD net sales of (155.1M) vs pri

Shifts In Foreign Currency Continue to Impact Res(Dollars in Millions)

▪ Significant currency headwinds vs prior year end and Q2 14

Region Q2 15 YTD 15

Europe (Euro) (48.9) (71.2)

Europe (Various) (26.5) (43.5)

Americas (12.6) (24.2)

Middle East & Africa (6.0) (9.8)

Asia Pacific (3.7) (6.3)

Consolidated (97.6) (155.1)

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Argentina(Peso)

Brazil (Real) Euro Russia(Ruble)

Singapore(Dollar)

Turkey (Lira)

April 2014

October 2014

April 2015

Currency

APR 15vs OCT 14

APR 15vs APR 14

Argentina (Peso) -4.2% -9.6%

Brazil (Real) -20.3% -27.3%

Euro -15.1% -21.9%

Russia (Ruble) -24.0% -32.1%

Singapore (Dollar) -6.0% -7.3%

Turkey (Lira) -14.5% -19.4%


15/44

Macro Factors

▪ Volatile global energy conditions impacting our products and industries served

▪ Multiple indicators of a slumping U.S. industrial economy▫ U.S. industrial production has fallen for five straight months▫ Railcar shipments for the first 19 weeks of 2015 are down vs. prior year▫ Congestion backlog of U.S. exports and ocean-going freight due to the West Coast port strike▫ U.S. economy contracted 0.7% in calendar first quarter

▪

Positive trends in Europe point to a stabilizing overall economy which is creatingoptimism about the region’s longer-term prospects

▪ Containerboard inventories at box plants and mills are higher than historical avera

▪ Chinese economy growth slowing according to the IMF


16/44

Full Year Outlook Update

▪ Positive demand and gross margin trends have emerged in our internationaoperations in Q2 and are expected to continue throughout the balance of thyear

▪ Anticipate that foreign currencies remain a headwind based on April rates

▪ Forecasted results for our North American businesses are expected to be beprevious forecasts due to lower volumes and competitive pressures in the sehalf


17/44

Q2 2015

Focused on Rewarding Our Shareholders


18/44

ONEPROMISE

ONETEAM

ONEPURPOSE

Long-termprofitable

growth

Growth with customers

• Deliver value that meetsor exceeds ourcustomers’ needs

Work as one team• A safe work environment - zero accidents• Based on The Greif Way

World-class efficie• Lower structural

operational costs

The Safe Choice – Best at Protecting Customers’ Product

REWARDING SHAREHOLDERS

l


19/44

Financial Metrics

2014A 2017 IMPAC

Value (%)

Gross Profit % 19.1% 20.0% $50M Operating

SG&A % 11.7% 10.0% $50M Operatin

Operating Profit 1 % 7.5% 10.0% 30% Improv

Operating Working Capital 2 % 9.7%


20/44

The Portfolio Optimization Analysis

Net Sales $4,083M 1

Transform or Fix• 16 Value Cells

• Net Sales $788M

Protect the Core• 25 Value Cells• Net Sales $1,947M

Invest to Grow• 5 Value Cells

• Net Sales $903M

Divest• 13 Value Cells• Net Sales $445M

Note: A reconciliation of the differences between all non-GAAP financial measures used inthis presentation with the mos t directly comparable GAAP financial measures is included inthe appendix to this presentation.

1 Adjusted 2014 revenue (2014 revenue minus impact of divestituLand Management segment)

2014 C lid d E i N S l d O i P


21/44

Net Sales $4,083M 2

2014 Consolidated Enterprise Net Sales and Operating Pr

LAND

MANAGEMENT

2014

DIVESTITURES

1 Operating Profit excluding special items. Special items include restructuring charges, acquisitiontimberland gains, non-cash asset impairment charges and gain on disposal of properties, plants, eqbusinesses, net.2

Adjusted 2014 revenue (2014 revenue minus impact of divestitures and Land Management segm

NetSales

$4,239M

Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation withthe most directly comparable GAAP financial measures is included in the appendix to this presentation.

2017 G if C i


22/44

2017 Greif Commitments

02014A BASELINE3 2

Consolidated $Ks

Net Sales 4,239,100 3,447,000 3,83

Gross Profit 811,000 697,000 760,000

SG&A 494,800 427,000 375,00

Operating Profit 1 315,900 269,000 375,00

Free Cash Flow 2 123,900 68,000 225,00

3 Actual results from fiscal 2014 adjusted to reflect the impact of anticipateof businesses during fiscal 2015 through fiscal 2017 and adjusted to reflectimpact of foreign currency translation using rates in effect on April 30, 2014See key assumptions in appendix.

1 Operating Profit excluding special items. Special items include restructuring charges, acquisition-relatedcosts, timberland gains, non-cash asset impairment charges and gain on disposal of properties, plants,equipment and businesses, net.2 Free cash flow is defined as net cash provided by operating activities less purchases of properties, plantsand equipment.Note: A reconciliation of the differences between all non-GAAP financial measures used in thispresentation with the most directly comparable GAAP financial measures is included in the Appendix to

this presentation.

Si ifi t G th d T f ti A ti iti Th h M


23/44

Significant Growth and Transformation Activities Through M

• Targeted Growth with Customerso Successfully doubled North Carolina Corrugator capacity 45 days earlier than scheduled

o Modernization and capacity expansion (55K tons/yr) of Riverville Mill completed on time and budget; lowered variable processing costs and increased effective capacityo Sadara, Jubail KSA steel drum plant on track for Nov 2015 startup. (Multiyear 1M/yr drum coo Expanded IBC–GCUBE® footprint and capacity from 500K units/year to 2M units/yr

• World-class Efficiencieso Reduced SG&A FTE by 170, 48% of reductions planned by year end 2016o Total headcount reduction of 494 including manufacturing roleso Implemented mandatory 30% T&E spending reductions and more stringent controls governing

spendo Divested / Consolidated 10 production facilitieso Signed agreement to exit Canadian Timberland holdingso Enterprise Revenue Processed on LN - ERP system surpassed 60% in Q2 2015

Pl d 15% f T t l SG&A H d t R d ti


24/44

Planned 15% of Total SG&A Headcount Reductions

Reducing Cost of CompleConsolidated back office ac

Increased cross business int

Elimination of redundant in

LN-ERP Implementation

2015 2016

COMPLETED170 FTE

TOTAL350 FTE

Process &System

Control &Sustainability

2014 P fil b S


25/44

2014 Profile by Segment

1 Operating Profit excluding special items. Special items include restructuring charges, acquisitimberland gains, non-cash asset impairment charges and gain on disposal of properties, plantsbusinesses, net.2 Actual results from fiscal 2014 adjusted to reflect the impact of anticipated sales of businessethrough fiscal 2017 and adjusted to reflect the impact of foreign currency translation using rate

2015

Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the mostdirectly comparable GAAP financial measures is included in the appendix to this presentation.

Net Sales $29MOP1 $9M


Net Sales $272MOP1 ($20M)

Net Sales $426MOP1 ($18M)



Net Sales $2,459MOP1 $160M

Net Sales $3,077MOP1 $203M

Adjusted forestimatedcurrency impact

2014A SEGMENT METRICS BASELINE SEGMENT

Adjusted for

impact ofcompleted andcontemplateddivestitures

Rigid Industrial Packaging & Services :


26/44

Rigid Industrial Packaging & Services :The Trusted Global Leader Focused on Improving Both Customer Satisfaction and Shareholder Returns

Commitments

Highlights

R I P S

2014A Baseline 2 2017P 3

Net Sales 3,077M 2,459M 2,605M

GP 553M 467M 495-505MSG&A 350M 307M 280-285M

OP1 203M 160M 215-220M

• Growth With Customerso Jubail KSA steel drum operation with Sadara – 1M drum contract

o IBC footprint expansion in EMEA,APAC, North America• Lower Structural and Operational Costs Via Consolidation

o Reduce North America steel drum capacity by 30%o Reduce SG&A costs in excess of $22M by FY2017

• Fix or Close Underperforming Business Unitso Divest or close 8 operations through May 2015

1 Operating Profit excluding special items. Special items include restructuring charges, acquisition-related costs, timberland gains, non-cash asset impairment charges and gain on disposal of properties, plants, equipment and businesses, net.

Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly

comparable GAAP financial measures is included in the appendix to this presentation.

2 Actual results from fiscal 2014 adjusted to reflect the impact of anticipated sales of businesfiscal 2017 and adjusted to reflect the impact of foreign currency translation using rates in ef

3See key assumptions in appendix

Paper Packaging:


27/44

ape ac ag g:Creating Value Through Differentiation

Commitments

Highlights

P P


Net Sales 707M 687M 887M

GP 183M 180M 195-205MSG&A 62M 60M 50-55M

OP1 121M 120M 145-150M

• EBITDA4 growth of $34M• Increase internal integration to > 90%

o Semi chem medium expansion & modernization at Riverville, Virginia millo Expand unique CorrChoice sheet feeding model in target markets

• Grow specialty product portfolio from 10% to 18% of revenue• Innovate on product performance

o Higher performance medium, light weight corrugated sheets, coatings


Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly

comparable GAAP financial measures is included in the appendix to this presentation.

2 Actual results from fiscal 2014 adjusted to reflect the impact of anticipated sales of businessefiscal 2017 and adjusted to reflect the impact of foreign currency translation using rates in effe

. 3 See key assumptions in appendix

4EBITDA is defined as net income, plus interest expense, net, plus income tax expense, less eunconsolidated affiliates, net of tax, plus depreciation, depletion and amortization

There Remains a Strong Strategic Rationale to be in FPS


28/44

There Remains a Strong Strategic Rationale to be in FPS

Growth

and Stability• FIBC product market growing 4-5% annually

Structure • In fragmented market, Greif is the only companywith a global presence

Segments• Strong growth in niche markets, such as food,

pharma and high hygiene applications

Market rationale Greif rationale

Portfolio

• FIBCs complement Greif’s in

portfolio• Valued by global customers

Customers• Common global customers (

• Broadest product offering

Evaluated all options: divest, fix, grow ecision to fix, stabilize and grow t

Flexible Products & Services:


29/44

The Industry’s Supply Chain Productivity Partner Positioning for Profitable Growth

Commitments

Highlights

F P

S



GP 62M 38M 55-65MSG&A 80M 58M 45-50M

OP1 (18)M (20)M 10-15M

• Balance manufacturing footprint across 3 global regions

•Intent to grow over 15% by focusing on targeted markets and regions

• Deliver Operating Profit improvement of $30M by 2017o Pricing initiatives to rationalize lower margin productso Reduce SGA cost structure by $10Mo Fix, close or divest underperforming operations

– Closed/divested 2 operations in 2015


Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directlycomparable GAAP financial measures is included in the appendix to this presentation.

2 Actual results from fiscal 2014 adjusted to reflect the impact of anticipated sales of businessethrough fiscal 2017 and adjusted to reflect the impact of foreign currency translation using rates2015

3See key assumptions in appendix.

Land Management:


30/44

gLegacy Assets Providing Strategic Financial Security and Flexibility

Commitments

Highlights

L A N D



GP 12M 12M 5-15MSG&A 2M 2M 0-5M

OP1 10M 9M 5-10M

• Maintain a sustainable timber harvest cycle

• Continue to develop multiple revenue streams through consulting activities and special useproperties

• Focus on the development of surface and deep mineral opportunities

• Signed agreement to exit Canadian timberland holdings


Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directlycomparable GAAP financial measures is included in the appendix to this presentation.

2 Actual results from fiscal 2014 adjusted to reflect the impact of anticipated sales of businessethrough fiscal 2017 and adjusted to reflect the impact of foreign currency translation using rates2015

3See key assumptions in appendix

Financial Metrics


31/44

Financial Metrics

2014A 2017 IMPAC

Value (%)

Gross Profit % 19.1% 20.0% $50M Operating

SG&A % 11.7% 10.0% $50M Operatin

Operating Profit 1 % 7.5% 10.0% 30% Improv

Operating Working Capital 2 % 9.7%


32/44

Summary of Critical ActivitiesWe Have:

Begun implementation phase of an enterprise wide agenda to transformation

Focused a high powered team on execution necessary to reward our shareholders

Prioritized our activities and investments based on returns and customer needs

Reduced SG&A FTE by 170, 48% of reductions planned by year end 2016

Implemented mandatory 30% T&E spending reduction

Divested / Consolidated 10 production facilities through May 2015

Developed and started implementation of a plan to improve FPS

We Will:• Scale up Jubail steel drum plant (1M Drums/yr) in KSA

• Accelerate actions to further reduce structural costs

• Exit all underperforming assets by 2016 year end and redeploy capital against strategic priorities

• Communicate our progress simply and transparently


33/44

Appendix

Key Assumptions


34/44

Key Assumptions

Assumed market growth rate of 1.5-2% (1)

Raw material costs assumed flat against our baseline indices

Major raw material price increases are passed to customers through Price Adjustment Mechanisms incontracts or otherwise with customary delay

The FX impact was calculated using actual year to date FX rates in 2015 through April and the assumpthe rates remain constant at the April rates through the remainder of the year.

Salary/wage increase assumed at historical rates (3.5% overall)

For purposes of calculation of free cash flow in 2017, we have assumed an effective tax rate range of 3

Cap-Ex at $150M for FY2015, $130M there after.

$75-85M restructuring costs estimated for 2015-17 period

All divestitures completed by the end of FY2016; no material acquisitions.

(1): Excludes high growth and approved projects such as Jubail and Paper Packaging modernization

Estimated Sensitivity – Net Sales Revenue


35/44

y

* Estimated translation impact only on external customer sales. Does not address discrete transactions related currency impacts nor the impact of shifting global supply chain raw materialssourcing changes.

Estimated Annual / Impact on Net Sales Revenue

Raw Materials $10/ton Cost Change

Steel $10.3MResin $2.0M

OCC 6.5M

Foreign Currency Exchange

Currency 1% Change Relative

Euro 10.5MCNY 1.5M

BRL 1.5M

GBP 1.5M

RUB 1.0M

SGB 1.0M

Special Items by Segment


36/44

Spec a te s by Seg e t(Dollars in millions)

GAAP to Non-GAAP Reconciliation of Segment and Consolidated Operating Profit (LSpecial Items


37/44

Special Items

(Dollars in millions)

GAAP to Non-GAAP Reconciliation of Net Income and Class A Earnings Per Share ESpecial Items


38/44

Special Items(Dollars in millions, except for per share amounts)

GAAP to Non-GAAP Reconciliation of Net Working Capital and Net Deb


39/44


Analysis of Consolidated 2014 Operating Profit Before Special Items


40/44

Twelve Months EndedOctober 31, 2014

Operating profit $ 249.3

Restructuring charges 16.1

Acquisition-related costs 1.6

Timberland gains (17.1)

Non-cash asset impairment charges 85.8

Gain on disposal of properties, plants, equipment andbusinesses, net

(19.8)

Operating profit before special items $ 315.9


Analysis of Fiscal 2014 Net Sales Excluding Divestitures and Land Management


41/44

Greif, Inc. As Report ed Div est itu res

Greif, Inc.Excluding

Div estitures Land M anagement

Greif, Inc. ExcludDivestitures an

Land Manageme

Net Sales 4,239.1$ (126.6)$ 4,112.5$ (29.5)$ 4,08$


GAAP to Non-GAAP Reconciliation of Segment and Consolidated 2014 Operating PrBefore Special Items


42/44

Before Special Items

(Dollars in millions)Ye a r E n d e d Oc t o b e r 3 1 2 0 1 4

O p e r a t i n g p r o f i t l o s s )Rigid Industrial Pacakaging & Services 170.1$Paper Packaging 125.8 Flexible Products & Services (78.6) Land Management 32.0

Total operating profit (loss) 249.3

R e s t r u c t u r in g c h a r g e s

Rigid Industrial Pacakaging & Services 9.6 Flexible Products & Services 6.5

16.1

A c q u i s i t i o n - r e l a te d c o s t sRigid Industrial Pacakaging & Services 1.6

1.6

Ti m b e r l a n d g a i n sLand Management (17.1)

(17.1) N o n - c a s h a s s e t i m p a i r m e n t c h a r g e s

Rigid Industrial Pacakaging & Services 11.6 Flexible Products & Services 74.2

85.8

G a i n ) l o s s o n d i s p o a l o f p r o p e r t ie s , p l a n t s , e q u i p m e n t s a n d b u s i n e s s e s , n e tRigid Industrial Pacakaging & Services 10.3 Paper Packaging (5.1) Flexible Products & Services (19.6) Land Management (5.4)

(19.8)

O p e r a t i n g p r o f i t l o s s ) b e f o r e sp e c i a l i t e m sRigid Industrial Pacakaging & Services 203.1 Paper Packaging 120.7 Flexible Products & Services (17.5) Land Management 9.6 C o n s o l i d a t e d To t a l 315.9$

Reconciliation of Free Cash Flow


43/44

Year EndedOctober 31, 2014

Net cash provided by operating activities $ 261.8Purchases of properties, plants and equipment (137.9)Free cash flow $ 123.9


GAAP TO Non-GAAP Reconciliation of 2014 Baseline Segment Net Sales, Gross Profit, SG&A , Ope(Loss) Before Special Items and Consolidated Free Cash Flow


44/44

GREIF, INC. AND SUBSIDIARY COMPANIESGAAP TO NON-GAAP RECONCILIATION

BASELINE SELECTED FINANCIAL INFORMATIONUNAUDITED


Year EndedOctober 31,

2014Impact of Actual andPlanned Divestitures

Excluding the Impact of Actual and Planned

DivestituresImpact of Foreign Currency

Translation

Excluding the Impactof Foreign CurrencyChanges and Actual

and PlannedDivestitures 2015

Net Sales:Rigid Industrial Packaging & Services $ 3,077.0 $ (329.6) $ 2,747.4 $ (288.5) $ 2,458.9Paper Packaging 706.8 (20.0) 686.8 - 686.8Flexible Products and Services 425.8 (100.4) 325.4 (53.3) 272.1Land Management 29.5 - 29.5 (0.2) 29.3Consolidated $ 4,239.1 $ (450.0) $ 3,789.1 $ (342.0) $ 3,447.1

Gross Profit:Rigid Industrial Packaging & Services $ 553.4 $ (29.2) $ 524.2 $ (57.1) $ 467.1Paper Packaging 182.8 (3.1) 179.7 - 179.7Flexible Products and Services 62.7 (16.8) 45.9 (8.1) 37.8Land Management 12.1 - 12.1 (0.1) 12.0Consolidated $ 811.0 $ (49.1) $ 761.9 $ (65.3) $ 696.6

SG&ARigid Industrial Packaging & Services $ 350.0 $ (11.1) $ 338.9 $ (31.7) $ 307.2Paper Packaging 62.1 (2.2) 59.9 - 59.9Flexible Products and Services 80.2 (12.5) 67.7 (10.0) 57.7Land Management 2.5 - 2.5 - 2.5Consolidated $ 494.8 $ (25.8) $ 469.0 $ (41.7) $ 427.3

Operating profit (loss) before special itemsRigid Industrial Packaging & Services $ 203.1 $ (17.8) $ 185.3 $ (25.4) $ 159.9Paper Packaging 120.7 (0.9) 119.8 - 119.8Flexible Products and Services (17.5) (4.3) (21.8) 1.9 (19.9)Land Management 9.6 - 9.6 (0.1) 9.5Consolidated $ 315.9 $ (23.0) $ 292.9 $ (23.6) $ 269.3

Consolidated Free Cash Flow $ 123.9 $ (28.7) $ 95.2 $ (27.3) $ 67.9


2q 2015 conference call slide presentation

Documents