/2H7      d 1$&%*7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES('CONSOLIDATED STATEMENTS OF INCOME<'(U.S. dollars in thousands, except per share amounts)&'For the years ended October 31, "2001 "2000 "1999'Net sales"$1,456,000"$963,956"$853,438!'Gain on sale of timberland "79,663 "9,255 "4,541'Other income, net "6,358 "4,872 "10,441 "1,542,021 "978,083 "868,420 'Cost of products sold "1,152,616 "737,486 "675,084*'Selling, general and administrative'expenses"204,716"128,301"112,995'Restructuring costs "11,534 "-- "--'Interest expense, net "45,149 "11,842 "12,983"1,414,015"877,629"801,062+'Income before income taxes, minority)'interest in income of consolidated*'subsidiaries and equity in earnings'of affiliates"128,006"100,454 "67,358'Income taxes "48,514 "38,027 "26,740)'Income before minority interest in*'income of consolidated subsidiaries+'and equity in earnings of affiliates "79,492 "62,427 "40,618%'Minority interest in income of 'consolidated subsidiaries  "(594)  "--  "--'!'Equity in earnings of affiliates !"9,876 !"13,367 !"10,755$'Net income$"$ 88,774$"$ 75,794$"$ 51,373 ('Basic earnings per share:)'Class A Common Stock)"$ 3.14)"$ 2.68)"$ 1.78*'Class B Common Stock*"$ 4.70*"$ 4.01*"$ 2.67",'Diluted earnings per share:-'Class A Common Stock-"$ 3.14-"$ 2.67-"$ 1.78.'Class B Common Stock."$ 4.70."$ 4.01."$ 2.67C1'See accompanying Notes to Consolidated Financial Statements.73'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"4'CONSOLIDATED BALANCE SHEETS"5'(U.S. dollars in thousands) 7'ASSETS:'As of October 31, :^2001 :^2000;'CURRENT ASSETS <'Cash and cash equivalents<"$ 29,720<"$ 13,3884='Trade accounts receivable - less allowance of>'$10,596 ($2,293 in 2000)>"282,982>"119,645?'Income tax receivable ?"-- ?"14,343@'Inventories@"123,363 @"42,741A'Deferred tax asset A"9,697 A"2,216B'Net assets held for sale B"12,530 B"8,495!C'Prepaid expenses and other C"51,112 C"12,315E"509,404E"213,143G'LONG-TERM ASSETS#H'Goodwill - less amortizationH"236,623H"136,284I'Other intangible assets I"33,179 I"1,816J'Investment in affiliatesJ"144,071J"136,374K'Other long-term assets K"44,282 K"16,052M"458,155M"290,5261O'PROPERTIES, PLANTS AND EQUIPMENT - at cost)P'Timber properties - less depletion P"74,851 P"21,518 Q'Land Q"81,048 Q"12,330R'BuildingsR"235,980R"133,591S'Machinery and equipmentS"689,637S"521,685#T'Capital projects in progress T"43,200 T"23,354V"1,124,716V"712,478W'Accumulated depreciationW"(315,879)W"(276,816)Y"808,837Y"435,662\"$1,776,396\"$ 939,331C^'See accompanying Notes to Consolidated Financial Statements.7`'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES"a'CONSOLIDATED BALANCE SHEETS"b'(U.S. dollars in thousands)+d'LIABILITIES AND SHAREHOLDERS' EQUITYf'As of October 31, f^2001 f^2000h'CURRENT LIABILITIESi'Accounts payablei"$ 107,277i"$ 42,855-j'Accrued payrolls and employee benefits j"20,529 j"11,216k'Income tax payable k"5,778 k"--l'Restructuring reserves l"15,109 l"--m'Short-term borrowings m"16,533 m"--(n'Current portion of long-term debt n"43,140 n"-- o'Other current liabilities o"90,361 o"10,876q"298,727 q"64,947s'LONG-TERM LIABILITIESt'Long-term debtt"654,374t"235,000u'Deferred tax liabilityu"124,346 u"58,895'v'Postretirement benefit liability v"50,028 v"20,095"w'Other long-term liabilities w"62,015 w"17,880y"890,763y"331,870|'MINORITY INTEREST |"560 |"--'SHAREHOLDERS' EQUITY&'Common stock, without par value "10,446 "10,383'Treasury stock, at cost"(58,812)"(57,894)'Retained earnings"671,917"598,301+'Accumulated other comprehensive loss%'- foreign currency translation"(21,378)"(8,276)'- interest rate swaps"(13,071) "--"'- minimum pension liability"(2,756) "--"586,346"542,514"$1,776,396"$939,331C'See accompanying Notes to Consolidated Financial Statements.7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIES,'CONSOLIDATED STATEMENTS OF CASH FLOWS"'(U.S. dollars in thousands)&'For the years ended October 31, ^2001 ^2000 ^1999,'Cash flows from operating activities:'Net income"$ 88,774"$ 75,794"$ 51,3731'Adjustments to reconcile net income to net-'cash provided by operating activities:/'Depreciation, depletion and amortization "81,507 "45,222 "42,360/'Equity in earnings of affiliates, net of'dividends received"(7,007)"(10,976)"(10,755)%'Minority interest in income of 'consolidated subsidiaries "560 "-- "--'Deferred income taxes "29,127 "13,548 "15,815.'Gain on disposals of properties, plants'and equipment, net"(84,661) "(502)"(7,962)2'Increase (decrease) in cash from changes in-'certain assets and liabilities, net of!'effects from acquisitions: 'Trade accounts receivable"(7,613) "5,109"(21,578)'Inventories "23,526 "7,965 "11,046!'Prepaid expenses and other "24,243 "1,955 "2,846'Other long-term assets"(4,052) "6,579 "2,597'Accounts payable"(15,734)"(1,628) "3,534-'Accrued payrolls and employee benefits "(776) "1,062 "307'Income tax payable "(789)"(14,343)"(1,968)'Restructuring reserves"(4,241)"(5,157)"(23,882) 'Other current liabilities"(27,756)"(1,361) "110''Postretirement benefit liability "3,315"(1,059) "591"'Other long-term liabilities "442"(4,979) "7,3320'Net cash provided by operating activities "98,865"117,229 "71,766,'Cash flows from investing activities:-'Acquisitions of companies, net of cash'acquired"(312,892) "--"(74,233)-'Disposals of investments in government'securities "-- "5,314 "1,3404'Purchases of properties, plants and equipment"(132,217)"(78,833)"(49,253)2'Proceeds on disposals of properties, plants'and equipment "92,403 "4,672 "18,874,'Net cash used in investing activities"(352,706)"(68,847)"(103,272),'Cash flows from financing activities:/'Proceeds from issuance of long-term debt"760,000 "-- "54,500!'Payments on long-term debt"(464,542)"(23,000)"(31,500)('Payments on short-term borrowings"(7,062) "-- "--%'Acquisitions of treasury stock "(924)"(4,968)"(11,102) 'Exercise of stock options "69 "190 "291'Dividends paid"(15,158)"(14,619)"(14,315)/'Net cash provided by (used in) financing'activities"272,383"(42,397)"(2,126)('Effects of exchange rates on cash"(2,210)"(1,532) "1,238/'Net increase (decrease) in cash and cash'equivalents "16,332 "4,453"(32,394)5'Cash and cash equivalents at beginning of year "13,388 "8,935 "41,329/'Cash and cash equivalents at end of year"$ 29,720"$ 13,388"$ 8,935C'See accompanying Notes to Consolidated Financial Statements.7'GREIF BROS. CORPORATION AND SUBSIDIARY COMPANIESA'CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITYG'(U.S. dollars and shares in thousands, except per share amounts)^Accumulated^Capital Stock^Capital Stock^Treasury Stock^Treasury Stock^Retained^Comprehensive^Shareholders' ^Shares ^Amount ^Shares ^Amount^Earnings^Income (Loss) ^Equity'As of November 1, 1998 "22,911"$ 9,936 "15,510"$(41,858)"$500,068"$ (8,044)"$460,102'Net income "51,373 "51,373#'Other comprehensive income -#'foreign currency translation "1,633 "1,633'Comprehensive income "53,006'Dividends paid (Note 8):'Class A - $0.50"(5,435)"(5,435)'Class B - $0.74"(8,880)"(8,880)'Treasury shares acquired "(396) "396"(11,102)"(11,102)'Stock options exercised "12 "271 "(12) "20 "291'As of October 31, 1999 "22,527"$10,207 "15,894"$(52,940)"$537,126"$ (6,411)"$487,982'Net income "75,794 "75,794#'Other comprehensive income -#'foreign currency translation"(1,865)"(1,865)'Comprehensive income "73,929'Dividends paid (Note 8):'Class A - $0.52"(5,492)"(5,492)'Class B - $0.77"(9,127)"(9,127)'Treasury shares acquired "(163) "163"(4,968)"(4,968)'Stock options exercised"7 "176 "(7) "14 "190'As of October 31, 2000 "22,371"$10,383 "16,050"$(57,894)"$598,301"$ (8,276)"$542,514'Net income "88,774 "88,774"'Other comprehensive income:'- foreign currency'translation"(13,102)"(13,102)'- interest rate swaps"(13,071)"(13,071)'- minimum pension'liability adjustment"(2,756)"(2,756)'Comprehensive income "59,845'Dividends paid (Note 8):'Class A - $0.54"(5,683)"(5,683)'Class B - $0.80"(9,475)"(9,475)'Treasury shares acquired "(35) "35 "(924) "(924)'Stock options exercised"3 "63 "(3)"6 "69 'As of October 31, 2001  "22,339 "$10,446  "16,082 "$(58,812) "$671,917 "$(37,205) "$586,346C 'See accompanying Notes to Consolidated Financial Statements.