O-i Glass, Inc. · NYSE:OI
O-i Glass — Deutsche Bank 13th Annual Global Materials Conference 2022
21 slides from O-i Glass's conference presentation, Jun 8, 2022
Slide 1: 2Q22 Capital Markets Presentation
2Q22 CAPITAL MARKETS PRESENTATION JUNE 8, 2022
Slide 2: Safe Harbor Comments
SAFE HARBOR COMMENTS FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking” statements related to O-I Glass, Inc. (the “company”) within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Forward-
Slide 3: At a Glance
AT A G L A N C E DIVERSE ATTRACTIVE PRODUCT PORTFOLIO CUSTOMER BASE 29% beer 20% wine 17% food 17% spirits 17% NAB 6,000+ direct customers GLASS IS THE MOST MAGMA SUSTAINABLE PACKAGE reimagines glass making to all natural, endlessly recyclable, support customer aspirations NEVER trash and enable pro
Slide 4: O-I Is an Attractive Investment Opportunity
O-I IS AN ATTRACTIVE INVESTMENT OPPORTUNITY PROFITABLE AGILE BREAKTHROUGH SUSTAINABILITY REDUCING GROWTH EXECUTION INNOVATION RISK PROFILE Strongest Glass Bold Transformation and MAGMA Creates a Glass is Set to Win in the Resolution of Legacy Fundamentals in Delivering on Commitments New Cost Compet
Slide 5: Profitable Growth: Strongest Glass Fundamentals in 20+ Years
PROFITABLE GROWTH: STRONGEST GLASS FUNDAMENTALS IN 20+ YEARS KEY DRIVERS FOR STRONG GLASS DEMAND ▲ Consumption trends have changed: Wellness, premium, sustainability ▲ Markets reopening: Increased on-premise consumption as COVID-19 concerns recede ▲ Resilience to channel shift: Strong glass performa
Slide 6: Glass Market Expected to Grow 2.0–3.5% CAGR across O-I's Key Markets
P R O F I TA B L E G R OW T H : C A P I TA L I Z I N G O N S T R O N G F U N DA M E N TA L S Glass Market Expected to Grow 2.0 – 3.5% CAGR across O-I’s Key Markets PROJECTED PACKAGING O-I VOLUME GROWTH MARKET GROWTH (2022-2024) (IN TONS, ADJUSTED FOR DIVESTITURES) 5% 8% GLASS VOLUME GROWTH ALL PACKA
Slide 7: Bold Transformation and Delivering on Commitments
AG ILE EXECUT IO N INCREASE SUPPLY CHAIN EFFICIENCY BOLD TRANSFORMATION AND ENABLE A MORE FLEXIBLE, SCALABLE AND DELIVERING ON COMMITMENTS SUSTAINABLE PRODUCTION CAPABILITY INCREASE COST COMPETITIVENESS OPTIMIZE BUSINESS PORTFOLIO AND STRUCTURE BUILD A SIMPLE, AGILE AND EFFECTIVE ORGANIZATION 7
Slide 8: Breakthrough Innovation: MAGMA enhances capabilities and competitive position
B REAK T HRO U GH INNOVAT ION O-I expects MAGMA will significantly enhance O-I’s capabilities and competitive position. OBJECTIVES MAGMA GEN 3 1 IMPROVEMENT VS HERITAGE (2025+) 1. FLEXIBILITY Achieve attractive economics at 15% lower utilization rate 2. SCALABILITY New melter reduces capacity per li
Slide 9: Glass Is the Most Sustainable Package
GLASS IS T HE MOST SUSTAIN A B L E PACK AGE GLASS IS HIGHLY SUSTAINABLE MAJOR LEVERS FOR IMPROVEMENT PROGRESS AND RECOGNITION ▲ 100% recyclable ▲ Increase cullet usage ▲ Elevated Goals ▲ Reusable and circular ▲ Light weight containers ▲ Doubled ESG Initiatives ▲ All natural and inert ▲ Near/co-locat
Slide 10: Reducing Risk Profile
REDUCING RISK PROFILE Improving Balance Sheet and R E S O LV E L E G AC Y L I A B I L I T I E S T H AT CONSUMED SIGNIFICANT FCF FOR DECADES Resolving Legacy Liabilities Resolve Legacy Asbestos Liabilities in Mid-2022 R E D U C I N G F I N A N C I A L L E V E R AG E 1 Key Milestones Achieved 6.0 ▲ Pa
Slide 11: Strong Execution on Key Strategic Priorities
2022 KEY OBJECTIVES Strong Execution on Key Strategic Priorities PRIORITIES 2022 KEY OBJECTIVES PROGRESS MARGIN Higher selling prices offset PY unfav Net Price and 2022 inflation ▲ Fav 1Q22 Net Price, on track to achieve FY22 guidance EXPANSION ≥ $50M margin expansion initiative benefits ▲ $8M 1
Slide 12: Delivering on Our Commitments
DELIV ERING ON OUR COMMIT M ENT S Currently, the company is not updating its full year 2022 business outlook, but consistent with typical practices, management will evaluate this outlook when reporting second quarter 2022 results on August 3. 2Q22 FY22 FY24 Outlook as of 6/7/22 Outlook as of 4/25/22
Slide 13: Value Creation for All Stakeholders
VALUE CREAT ION FOR ALL STAK EHOLD E R S REDUCING RISK PROFILE PROFITABLE GROWTH Resolution of Legacy Liabilities Strongest Glass Fundamentals in 20+ Years and Improve the Balance Sheet VALUE CREATION SUSTAINABILITY AGILE EXECUTION Glass is Set to Win in the Bold Transformation and New Green Economy
Slide 14: Appendix
APPENDIX
Slide 15: O-I ESG Goals
O-I ESG GOALS Increase recycled content to 50% Reduce the amount of natural average by 2030. O-I is taking a resource used and reduce the We are committed to reducing tailored approach to increase generation of waste by reuse our global water usage 25% by recycled content rates across its and recycl
Slide 16: Paddock Chapter – Progress and Update
PADDOCK CHAPT ER 11 – PROGRE S S AND UPDAT E 1 US Bankruptcy Court Confirmed Plan May 26th; Motion to Affirm filed with US District Court for the District of Delaware • Phase 1: Paddock files for bankruptcy protection in Delaware and obtains initial relief • Phase II: Paddock informally negotiates w
Slide 17: Segment FX Impact on Earnings
SEG M E NT FX IMPACT ON EARNING S APPROXIMATE ANNUAL IMPACT ON FX RATES AT KEY POINTS EPS FROM 10% FX CHANGE Apr 22, AVG AVG 2022 1Q22 1Q21 EUR 0.16 EUR 1.08 1.12 1.20 MXN 0.06 MXN 20.21 20.43 20.64 BRL 0.04 BRL 4.62 5.10 5.58 COP 0.01 COP 3,774 3,870 3,627 17
Slide 18: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEA S UR E S The company uses certain non-GAAP financial measures, which are measures of its historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. Management believes that its presentat
Slide 19: Reconciliations to FCF & Adjusted FCF
RECONCILIAT IONS TO FCF & ADJUST ED FCF The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measures, free cash flow and adjusted free cash flow, for all periods after December 31, 2022, to its most directly comparable U.S. GAAP financial measure, Cash prov
Slide 20: Additional Reconciliations
A D D I T I O N A L R E C O N C I L I AT I O N S RECONCILIATION TO ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measures, adjusted earnings and adjusted earnings per share, for the quarter ending June
Slide 21: Reconciliation to Financial Leverage
R E C O N C I L I AT I O N TO F I N A N C I A L L E V E R AG E $ millions 2019 2020 2021 Earnings (loss) from continuing operations $ (379) $ 264 $ 165 Interest expense (net) 311 265 $ 216 Interest income 9 5 $ 7 Provision for income taxes 118 89 $ 167 Depreciation 390 369 $ 356 Amortization of inta
O-I Glass — Deutsche Bank 13th Annual Global Materials Conference 2022 on 6ix