O-i Glass, Inc. · NYSE:OI
O-i Glass — Q3 2021 Earnings Presentation
20 slides from O-i Glass's earnings presentation, Oct 26, 2021
Slide 1: Third Quarter 2021 Earnings
THIRD QUARTER 2021 EARNINGS OCTOBER 26, 2021
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 (the “Exchange Act”) and Section 27A of the Securities Act of 1933.
Slide 3: Overview
OV ERV IE W 3Q21 RESULTS EXCEEDED GUIDANCE AND PRIOR YEAR • 3Q21 aEPS1 was $0.58 compared to guidance of $0.47 – $0.52 and prior year of $0.41 CONSISTENTLY DELIVERING ON COMMITMENTS STRONG OPERATING AND COST PERFORMANCE • Solid demand but shipments down 1% from PY2 due to global supply disruptions a
Slide 4: 2021 Priorities Highlights
A DVA N C I N G B O L D P L A N TO C H A N G E B U S I N E S S F U N DA M E N TA L S 2021 PRIORITIES HIGHLIGHTS ❶ MARGIN EXPANSION – STRONG OPERATING PERFORMANCE AND COST EFFICIENCIES $50M initiative benefits $50M benefits YTD; Expect savings will approximate ~$60M Improve performance in North Ameri
Slide 5: Enhance Stakeholder Value
BUILDING THE PATH TO YES! ENHANCE STAKEHOLDER VALUE FAVORABLE ENHANCE TRANSFORMATION MAGMA MARKET VALUE YES! TO YES! TO YES! TO YES! TO PROFITABLE GROWTH AN AGILE & RESILIENT COMPANY A NEW PARADIGM FOR GLASS ENHANCE VALUE Mega trends favor glass Simple, agile, effective, adaptable Flexible Profitabl
Slide 6: 3Q21 Results vs. 3Q20
3 Q2 1 RESULT S V S. 3Q20 EARNINGS UP SIGNIFIC ANTLY FROM PY AND EXCEEDED GUIDANCE 3Q21 aEPS WAS $0.58 VS. $0.41 PY AND $0.47– $0.52 GUIDANCE SEGMENT • Favorable operating and cost performance OPERATING PROFIT1 ($M) aEPS 3Q20 AS REPORTED $204 $0.41 SEGMENT OPERATING PROFIT UP SIGNIFICANTLY FROM PY F
Slide 7: 3Q21 Segment Review
3Q21 SEGM E NT REV IEW IMPROVEMENT VS PY DRIVEN BY FAVORABLE OPERATING AND COST PERFORMANCE AMERICAS EUROPE ASIA PACIFIC1 SEGMENT SEGMENT SEGMENT OPERATING OPERATING OPERATING ($M) PROFIT COMMENTS PROFIT COMMENTS PROFIT COMMENTS 3Q20 $113 $88 $3 FX — (1) — Divestitures 1 — (3) ▼ ANZ sale July 2020 S
Slide 8: FY21 FCF and Capital Structure
2 0 2 1 F C F A N D C A P I TA L S T RU C T U R E FY21 FCF1 AND NET DEBT2 FAVORABLE TO PY HIGHER FCF AND LOWER NET DEBT FCF Progression 800 GUIDING PRINCIPLE PROGRESS 560 400 316 264 Maximize Free Cash Flow1 117 112 213 205 ($M) 0 FY21 FCF: ~$260M (20-25% conversion) 3Q21 FCF $213M; YTD FCF $181M vs
Slide 9: 2021 Business Outlook
2021 BUSIN E S S OUT LOOK INCREASING FULL YEAR EARNINGS OUTLOOK 4Q21 EARNINGS OUTLOOK (aEPS) FY21 GUIDANCE: $1.77 – $1.82 aEPS AND AT LEAST $260M FCF 4Q20 AS REPORTED $0.40 • Increased earnings guidance from $1.70 – $1.75 FX1 --- • Full year sales volume up 4%+ Divestitures/Temp Item2 --- SUBTOTAL $
Slide 10: Conclusion
CONCLUSION 3Q21 results above guidance on solid operating performance Step change in ability to consistently perform and deliver Advancing O-I’s 2021 strategic priorities Comprehensive plan to create value 10
Slide 11: Financial Appendix
ae). FINANCIAL APPENDIX
Slide 12: 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 Oct 22, AVG AVG AVG AVG 2021 3Q21 3Q20 4Q20 2020 EUR 0.13 EUR 1.16 1.18 1.18 1.20 1.15 MXN 0.04 MXN 20.18 20.16 22.08 20.44 21.56 BRL 0.04 BRL 5.65 5.23 5.39 5.43 5.21 COP 0.02 COP 3,773 3,82
Slide 13: 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 14: Reconciliation to Adjusted Earnings
R E C O N C I L I AT I O N TO A D J U S T E D E A R N I N G S Three months ended Nine months ended Three months Unaudited Sept 30 September 30 ended Dec 31 2021 2020 2021 2020 2020 Earnings from continuing operations attributable to the Company $ 78 $ 328 $ 99 $ 278 $ (29) Items impacting equity ear
Slide 15: Segment Reconciliations
SEG M E NT RECONCILIAT IONS 3Q PRICE,VOLUME AND CURRENCY IMPACT ON REPORTABLE SEGMENT SALES Three months ended September 30, Americas Europe Asia Pacific Total Net sales for reportable segments- 2020 $ 887 $ 644 $ 52 $ 1,583 Effects of changing foreign currency rates (a) 16 (1) 15 Price 53 4 57 Sale
Slide 16: Segment Reconciliations
SEG M E NT RECONCILIAT IONS SEPT YTD PRICE,VOLUME AND CURRENCY IMPACT ON REPORTABLE SEGMENT SALES Nine months ended September 30, Americas Europe Asia Pacific Total Net sales for reportable segments- 2020 $ 2,442 $ 1,775 $ 281 $ 4,498 Effects of changing foreign currency rates (a) 31 98 129 Price 10
Slide 17: Reconciliation for Segment Operating Profit
RECONCILIAT ION FOR SEGM E NT OPERAT ING PROFIT Three months ended Nine months ended Unaudited September 30 September 30 2021 2020 2021 2020 Net sales: Americas $ 925 $ 887 $ 2,652 $ 2,442 Europe 655 644 2,039 1,775 Asia Pacific 52 281 Reportable segment totals 1,580 1,583 4,691 4,498 Other 29 33 79
Slide 18: Reconciliation for Adjusted Effective Tax Rate
R E C O N C I L I AT I O N F O R A D J U S T E D E F F E C T I V E TA X R AT E Unaudited Three Months Ended Sept 30, Sept 30, 2021 2020 Earnings before income taxes (A) $ 127 $ 376 Items management considers not representative of ongoing operations 17 (262) Adjusted Earnings before income taxes (C)
Slide 19: Additional Reconciliations
ADDIT IONAL RECONCILIAT IONS RECONCILIATION TO NET DEBT Unaudited Forecasted Year Ended March 31, June 30, Sept 30, March 31, June 30, Sept 30, Dec 31, March 31, June 30, Sept 30, Dec 31, 2021 2021 2021 2020 2020 2020 2020 2019 2019 2019 2019 December 31, 2021 Total debt $ 5,348 $ 5,062 $ 4,932 $ 6,
Slide 20: Reconciliation of Le Parfait EBITDA
R E C O N C I L I AT I O N O F 2 0 2 0 L e PA R FA I T E B I T DA TO I N C O M E F R O M C O N T I N U I N G O P E R AT I O N S B E F O R E I N C O M E TA X E S Reconciliation of 2020 Le Parfait EBITDA to income from continuing operations before income taxes (US$ millions, except as noted) Le Parfai