O-i Glass, Inc. · NYSE:OI
O-i Glass — Q1 2023 Earnings Presentation
22 slides from O-i Glass's earnings presentation, Apr 26, 2023
Slide 1: First Quarter 2023 Earnings
FIRST QUARTER 2023 EARNINGS APRIL 25, 2023
Slide 2: Safe Harbor Comments
SAFE HARBOR COMMENTS Forward-Looking Statements This presentation contains “forward-looking” statements related to O-I Glass, Inc. (“O-I Glass” or 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 Securiti
Slide 3: Overview
OVERVIEW 1Q23 aEPS of $1.29 Significantly Exceeded Guidance; Increased FY23 Outlook ADJUSTED EPS $1.50 1Q23 EARNINGS SIGNIFICANTLY EXCEEDED PY AND GUIDANCE $1.29 Very strong net price realization in both the Americas and Europe Benefits from O-I’s margin expansion initiatives Strong operating
Slide 4: Sales Volume
SALES VOLUME 1Q23 Underlying Demand Down ~ 2% - 3%; Long-Term Growth Outlook Remains ~ 2% - 3% O-I VOLUME COMPARISON: 1Q23 VS 1Q22 PROJECTED ANNUAL GLASS GROWTH YoY SALES VOL GROWTH IN TONS, ADJUSTED FOR DIVESTITURES SOURCE: 2022 EUROMONITOR PER UNIT CONSUMPTION PROJECTIONS INCLUDES STRATEGIC JVs 15
Slide 5: 2023 Key Objectives
2023 KEY OBJECTIVES All Key Initiatives At or Ahead of Schedule PRIORITIES 2023 OBJECTIVES 2023 PROGRESS MARGIN ≥ $150M net price realization (excl. margin expansion initiatives) ▲ $180M YTD net price realization ($159M excl. margin expansion initiatives) EXPANSION ≥ $100M margin expansion initi
Slide 6: O-I in the News!
O-I IN THE NEWS! Working Together to Advance Critical Efforts Award winning and disruptive NPD Groundbreaking ceremony at first MAGMA Greenfield plant in Bowling Green, KY Completed €50M investment to improve sustainability at the Vayres, FR plant – reduced CO2 emissions 20% O-I awarded Gold Rating
Slide 7: 1Q23 Results
1Q23 RESULTS 1Q23 aEPS of $1.29 Significantly Exceeded Prior Year Results and Guidance KEY FINANCIAL MEASURES EARNINGS RECONCILIATION: 1Q23 VS 1Q22 $M EXCEPT EPS AND RATIO $M EXCEPT EPS AND MARGINS 1Q23 1Q22 SEGMENT AMERICAS EUROPE OPERATING +8% +130% SEGMENT SEGMENT PROFIT1 aEPS +54% $M except EPS
Slide 8: Business Outlook
BUSINESS OUTLOOK GUIDANCE DETAILS Substantially Increased FY23 Guidance (aEPS) 2Q23 vs 2Q22 FY23 VS FY22 PRIOR PERIOD $0.73 $2.30 INCREASED FY23 GUIDANCE FX1 0.04 0.13 2 Divestitures - (0.01) Anticipate $3.05 – $3.25 aEPS up from prior outlook of > $2.50 Interest funding Paddock trust (0.04) (0.10
Slide 9: Sustainable Earnings and FCF Improvement
SUSTAINABLE EARNINGS AND FCF IMPROVEMENT For several Years, O-I Has Been Building the Engine for Sustained Earnings and FCF Improvement SUSTAINED EARNINGS AND FCF IMPROVEMENT Profitable growth, modest fav net price Margin expansion initiatives Lower capital intensity/costs with MAGMA BREAKTHRO
Slide 10: Consistent Progress
CONSISTENT PROGRESS Improvement Across All Key Operating Levers PERFORMANCE TREND KEY OPERATING LEVERS 3.50 6.0 5.5 $3.05-$3.25 3.00 5.0 Higher Net Price 4.4 2.50 Total Financial Leverage 2.30 4.0 Solid Sales Volume Growth 3.5 2.00 1.83 Margin Expansion Initiative Benefits aEPS 3.0 1.50 < 3.0 1.22 2
Slide 11: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Focused on Maximizing Stakeholder Value #1 #2 #3 IMPROVE FUND PROFITABLE RETURN VALUE TO CAPITAL STRUCTURE GROWTH SHAREHOLDERS ▲ < 3.0x leverage (2023) ▲ $630M expansion program (2022-2024) ▲ Anti-dilutive repurchases ▲ Glide path to < 2.5x leverage ▲ Continued modest p
Slide 12: Conclusion
CONCLUSION Capitalizing on Solid Business Momentum COMPELLING INVESTMENT THESIS 1Q23 RESULTS SIGNIFICANTLY EXCEEDED PY & GUIDANCE FY23 STRATEGIC OBJECTIVES ARE ADVANCING WELL SUBSTANTIALLY INCREASED FY23 GUIDANCE EXPECT HIGHER RESULTS IN 2024 AND BEYOND ATTRACTIVE INVESTMENT OPPORTUNITY 12
Slide 13: Appendix
APPENDIX
Slide 14: Our Sustainability Goals
OUR SUSTAINABILITY GOALS 5 0 % TA R G E T S U P P LY C H A I N S U S TA I N A B I L I T Y Increase recycled content to 50% average by 2030. O-I is taking a Achieve sustainability balance, together, by aligning our supply chain tailored approach to increase recycled content rates across its with our
Slide 15: Segment FX Impact on Earnings
SEGMENT FX IMPACT ON EARNINGS APPROXIMATE ANNUAL IMPACT ON FX RATES AT KEY POINTS EPS FROM 10% FX CHANGE Apr 24, AVG AVG 2023 1Q23 1Q22 EUR 0.31 EUR 1.10 1.08 1.09 MXN 0.07 MXN 17.98 18.42 20.28 BRL 0.03 BRL 5.04 5.14 4.95 COP 0.01 COP 4,478 4,683 3,876 Current Business Outlook is Based on FX Rates
Slide 16: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 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 presentation
Slide 17: Reconciliation to Adjusted Earnings
RECONCILIATION TO ADJUSTED EARNINGS The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, adjusted earnings and adjusted earnings per share, for the three months ending June 30, 2023 or year ending December 31, 2023 to its most directly comparable GA
Slide 18: Segment Reconciliations
SEGMENT RECONCILIATIONS 1Q23 PRICE,VOLUME AND CURRENCY IMPACT ON REPORTABLE SEGMENT SALES 1Q23 PRICE, SALES VOLUME, OPERATING COSTS AND CURRENCY IMPACT ON REPORTABLE SEGMENT OPERATING PROFIT 18
Slide 19: Reconciliation for Segment Operating Profit
RECONCILIATION FOR SEGMENT OPERATING PROFIT 19
Slide 20: Reconciliation to Total Financial Leverage
RECONCILIATION TO TOTAL FINANCIAL LEVERAGE 20
Slide 21: Reconciliation to Adjusted EBITDA
RECONCILIATION TO ADJUSTED EBITDA For the year ending December 31, 2023, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, adjusted EBITDA, to its most directly comparable U.S. GAAP financial measure, net earnings, because management cannot relia
Slide 22: Additional Reconciliations
ADDITIONAL RECONCILIATIONS RECONCILIATION FOR ADJUSTED EFFECTIVE TAX RATE The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, adjusted effective tax rate, for the year ending December 31, 2023, to its most directly comparable GAAP financial measure