O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Q2 2010 Earnings Presentation
14 slides from O-i Glass's earnings presentation, Jul 28, 2010
Slide 1: Introduction, Agenda, Regulation G and Forward Looking Statements
Introduction Agenda Business discussion Financial review Business outlook Concluding remarks and Q&A Presenters Regulation G The information included in this presentation regarding adjusted net earnings relates to net earnings attributable to the Company exclusive of items management considers not r
Slide 2: Second-Quarter 2010 Results
Second-Quarter 2010 Results $0.90/sh EPS, down modestly from 2Q09 $0.98/sh EPS excluding currency translation 1.3% higher price/product mix offset modest inflation Total shipments down 1.8% YoY Volume up 1.7% excluding N. America contract renegotiations Improved regional mix offset impact of lower v
Slide 3: Improved Price/Mix Drove Higher Segment Profit Margin Percentage
Improved Price/Mix Drove Higher Segment Profit Margin Percentage ($millions) 3 2Q10 Business Discussion - Segment Operating Profit - Margins $121 $57 $103 $292 $11 $305 $114 $87 $77 $27 $287 $88 $64 $104 $31 $0 $50 $100 $150 $200 $250 $300 $350 Total Europe North America South America Asia Pacific 2
Slide 4: Operational Improvements Offset By Unfavorable Currency Impacts
Operational Improvements Offset By Unfavorable Currency Impacts 1 Reportable segment sales exclude $9 million of revenue, principally for the Company’s global equipment sales business. 2 Cost pass-through provisions include monthly or quarterly contractual cost pass-through provisions, as well as th
Slide 5: Free Cash Flow Reflects Typical Seasonal Trends, Higher Capex
Free Cash Flow Reflects Typical Seasonal Trends, Higher Capex (2) ($millions) 1 Free cash flow equals cash provided or used by operating activities less capital spending. 2 Other operating items is comprised of retained corporate costs, noncontrolling interests, current tax expense, net interest, ot
Slide 6: Issued Exchangeable Senior Notes to Fund Strategic Activities
Issued Exchangeable Senior Notes to Fund Strategic Activities 2Q10 Financial Review - Balance Sheet and Cash Flow - Unique opportunity to adjust capital structure given highly attractive convertible market $690 million 3% coupon due 2015 $47.47 exchange price, 40% premium Coupon, well below ~6% stan
Slide 7: ROIC Exceeds Cost of Capital
ROIC 1 Exceeds Cost of Capital 7 2Q10 Financial Review - Capital Allocation - (Return on Invested Capital) (Trailing 12 months) Balanced Capital Allocation 1H10 Cost of Capital: ~ 9-10% Strategic Capital Allocation Drives Higher Returns $450M Debt Refinancing $200M Share Buyback $158M M&A/JV 2 $63M
Slide 8: Updated Business Outlook
Updated Business Outlook 1 1 All items are estimates; all estimates are approximate; estimates are subject to change throughout the period. Reported results can be significantly affected by changing foreign currency exchange rates. 3Q10 and FY10 Business Outlook 8 - Retained Corp/Other: Incremental
Slide 9: Concluding Remarks and Q&A
Concluding Remarks and Q&A Third quarter 2010 earnings dates Press release to be issued after market close Wednesday, October 27, 2010 Earnings conference call Thursday, October 28, 2010, 8:30 a.m. ET Investor relations contacts John Haudrich, VP – Investor Relations, 567.336.2700 Jason Bissell, Dir
Slide 10: Appendix
Appendix 10 2Q10 Earnings Presentation
Slide 11: Reconciliation of GAAP to non-GAAP Items (2Q10)
Reconciliation of GAAP to non-GAAP Items (2Q10) 11 Appendix Three months ended June 30 $ Millions, except per-share amounts 2010 2009 Earnings EPS Earnings EPS Net income attributable to the Company $141.1 $0.85 $149.3 $0.88 Items that management considers not representative of ongoing operations co
Slide 12: Reconciliation of GAAP to non-GAAP Items (YTD 2Q10)
Reconciliation of GAAP to non-GAAP Items (YTD 2Q10) 12 Appendix Six months ended June 30 $ Millions, except per-share amounts 2010 2009 Earnings EPS Earnings EPS Net income attributable to the Company $226.4 $1.34 $194.4 $1.15 Items that management considers not representative of ongoing operations
Slide 13: Free Cash Flow
Free Cash Flow (1) Free Cash Flow equals cash provided by operating activities less capital spending. Appendix $ Millions Three months ended June 30 Six months ended June 30 2010 2009 2010 2009 Net earnings $154.9 $162.5 $249.3 $221.3 Non-cash charges: Depreciation and amortization 99.5 100.4 198.6
Slide 14: Foreign Currency Exchange Rate Trends
Foreign Currency Exchange Rate Trends 1 Average exchange rate for the quarter. 2 Excludes the impact of remeasuring net monetary assets in Venezuela. (1) 14 Appendix FX Translation Impact on Sales, Segment Operating Profit and Non-GAAP EPS (Compared to prior year) U.S. Dollar Versus Key Currencies A