O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — J.P. Morgan 2015 Aviation, Transportation & Industrials Conference
15 slides from O-i Glass's conference presentation, Mar 3, 2015
Slide 1: J.P. Morgan 2015 Aviation, Transportation & Industrials Conference
J.P. Morgan 2015 Aviation, Transportation & Industrials Conference Owens-Illinois, Inc. March 3, 2015
Slide 2: Safe Harbor Comments
Safe Harbor Comments Regulation G The information presented here regarding adjusted net earnings relates to net earnings from continuing operations attributable to the Company exclusive of items management considers not representative of ongoing operations and does not conform to U.S. generally acce
Slide 3: O-I: The only truly global glass container franchise
O-I: The only truly global glass container franchise #1 position in Europe #1 position in North America #1 position in Oceania1 #1 position in South America Leading position within SE Asia Foothold in China Emerging markets Mature markets Strong, brand-building partnerships with blue chip companies
Slide 4: Creating shareholder value
Creating shareholder value O-I’s global presence O-I’s unparalleled expertise Over 100 years of experience Stable end markets Steady glass demand Consumer preference for glass 3 Key value drivers Structural cost reductions Asset efficiency Brand-building product innovation Long-term investments in R
Slide 5: 2014 full year financial review
2014 full year financial review 4 1 Adjusted EPS refers to earnings from continuing operations attributable to the Company, exclusive of items management considers not representative of ongoing operations. A description of all items that management considers not representative of ongoing operations,
Slide 6: Consistent end-market demand trends
Consistent end-market demand trends 5 Europe Stable end markets Exports outperform domestic demand Asia Pacific Demand stabilizing in Oceania Mid single-digit growth in China & SEA North America Growth in craft beer, wine, spirits, premium food and non-alcoholic beverages Ongoing decline in megabeer
Slide 7: 1Q15 business outlook
1Q15 business outlook 6 Europe Stable sales volume Lower planned production due to project timing Competitive pressure in Southern Europe North America Continuation of unfavorable volume trends in megabeer Supply chain recovery South America Volume plateaus against strong comparable in 1Q14 Inflatio
Slide 8: Continued balanced approach to use of cash
Continued balanced approach to use of cash 7 Capital Investment Capital Allocation Maintenance Continue strong operating profit generation Enhance productivity and flexibility Strategic Exceed cost of capital Non-organic growth (e.g., JV with CBI in Mexico) Invest in R&D, technology and innovation L
Slide 9: 2015 management priorities
2015 management priorities Advance leadership succession Complete European asset optimization program Execute on opportunities with CBI in Mexico Strategic Deliver ~$300M of free cash flow Shift capital allocation toward share repurchases Further enhance financial flexibility Financial Enhance manuf
Slide 10: Q&A
Q&A 9
Slide 11: Appendix
Appendix 10
Slide 12: Reconciliation of GAAP to non-GAAP items
Reconciliation of GAAP to non-GAAP items 11 $ Millions, except per-share amts 2014 2013 2012 2011 Earnings (loss) from continuing operations attributable to the Company 98 $ 202 $ 186 $ (501) $ - - - 640 Charges for asbestos-related costs 135 145 155 165 Charge for non-income tax matter 69 - - - 67
Slide 13: Reconciliation to free cash flow
Reconciliation to free cash flow 12 Year ended December 31 $ Millions 2014 2013 2012 2011 Cash provided by continuing operating activities $ 698 $ 700 $ 580 $ 505 Additions to property, plant and equipment (369) (361) (290) (285) Free cash flow $ 329 $ 339 $ 290 $ 220
Slide 14: Leverage ratio
Leverage ratio Reconciliations of adjusted EBITDA and net debt 13 $ Millions 2014 2013 2012 2011 Earnings (loss) from continuing operations 195 $ 215 $ 220 $ (491) $ Interest expense 235 239 248 314 Provision for income taxes 92 120 108 85 Depreciation 335 350 378 405 Amortization of intangibles 83
Slide 15: Estimated impact from currency rate changes
Estimated impact from currency rate changes 14 Impact on EPS from a 10% change compared with the U.S. dollar EU (primarily Euro): ~$0.10 SA (primarily Brazilian Real and Colombian Peso): ~$0.09 AP (primarily Australian Dollar and New Zealand Dollar): ~$0.05 2014 Average Rates Assumed for 2015 Outloo
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