O-i Glass, Inc. · NYSE:OI
O-i Glass — Investor Day (March 2025)
91 slides from O-i Glass's investor day presentation, Mar 14, 2025
Slide 1: The Power of Glass - Investor Day 2025
THE POWER OF GLASS INVESTOR DAY 2025 MARCH 14, 2025
Slide 2: Safe Harbor Comments and Forward-Looking Statements
SAFE HARBOR COMMENTS AND 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 Secu
Slide 3: O-I Glass Leadership Team
Ci O-I GLASS LEADERSHIP TEAM
Slide 4: Agenda
AGENDA TOPIC PRESENTERS ROLE Introduction Chris Manuel VP, Investor Relations Business Strategy and Overview Gordon Hardie President & Chief Executive Officer Eduardo Restrepo SVP, Business Operations Americas Horizon 1: Fit to Win Emmanuelle Guérin SVP, Business Operations Europe 10 Minute Break Ho
Slide 5: Business & Strategy Overview
BUSINESS & STRATEGY OVERVIEW GORDON HARDIE, PRESIDENT & CHIEF EXECUTIVE OFFICER 5
Slide 6: Robust Investment Thesis
RESHAPING O-I TO BECOME THE ‘BEST VALUE’ PACKAGING OPTION EARNINGS IMPROVEMENT Transforming O-I’s cost base (aEBITDA, $M) to become highly competitive ≥ 1,650 > 8% 5YR CAGR Optimizing how we work across the ROBUST value chain with suppliers and customers ≥1,450 INVESTMENT 1,150-1,200 THESIS Building
Slide 7: Who We Are Today
WHO WE ARE TODAY GLOBAL LEADER in glass packaging refocused on transforming COMPETITIVENESS, increasing ECONOMIC PROFIT and growing the VALUE of the company 6,000 Customer Excellence Sell into 74 ~21,000 Serve countries through employees, Top Quartile Net network of 69 TOP Promoter Score (NPS) custo
Slide 8: Our Refocused Purpose
OUR REFOCUSED PURPOSE Together, we put the power of glass within reach of everyone, every day 8
Slide 9: Operating Principles
Making Safety Our #1 Priority Operating with Transparency, Teamwork and Inclusivity Operating Driving Productivity, Continuous Improvement Principles and Sustainability We will reshape O-I to make it a Building Shared Value with Our Customers safer, fit, sustainable, and more valuable company as we
Slide 10: Value Creation Roadmap
VALUE CREATION ROADMAP HORIZON 3 (2028+) ECONOMIC PROFIT (EP) STRATEGIC OPTIONALITY MINDSET HORIZON 2 (2026+) PROFITABLE GROWTH FUTURE O-I EP HORIZON 1 (2024+) CAPTURE FIT TO WIN CURRENT Excellent Progress and O-I EP Increasing Fit to Win Target CAPTURE from $300M to $650M FIT TO WIN: PROFITABLE GRO
Slide 11: Our Right to Win
OUR RIGHT TO WIN Consumers Privileged Refocus On & Customers CUSTOMER COMPETITIVENESS PREFER GLASS RELATIONSHIPS From Scale Privileged Footprint With GROWTH GLOBAL Reach Opportunities With LOCAL Touch 11
Slide 12: Consumers and Customers Prefer Glass
CONSUMERS AND CUSTOMERS PREFER GLASS Consumers prefer GLASS for its superior SUSTAINABILITY, QUALITY and FOOD SAFETY 92% 70% 80% 59% 65% of US consumers regard of US consumers believe of Europeans view of global wine drinkers of European consumers glass packaging positively glass safely stores glass
Slide 13: O-I Serves the Brands We All Trust and Love
O-I SERVES THE BRANDS WE ALL TRUST AND LOVE Privileged customer RELATIONSHIPS, leading DESIGN capabilities and SERVICE levels 13
Slide 14: Privileged Customer Relationships
PRIVILEGED CUSTOMER RELATIONSHIPS Most TRUSTED Glass Supplier to a LARGE, DIVERSE AND VALUABLE Customer Base LARGE, DIVERSE, THE MOST TRUSTED VALUABLE CUSTOMER BASE GLOBAL GLASS SUPPLIER Net Promoter Score International Regional Local/Emerging 56 First Quartile – Mfg Cos 50 45 # CUSTOMERS NET SALES
Slide 15: Privileged Global Footprint with Opportunities for Growth
PRIVILEGED GLOBAL FOOTPRINT WITH OPPORTUNITIES FOR GROWTH O-I has GLOBAL REACH with DEEP LOCAL connections and know how GROWTH OPPORTUNITY O-I IS GLOBAL LEADER IN GLASS CONTAINER MARKET, BUT REPRESENTS ONLY ~ 9% SHARE • Sell into 74 countries • Operate in 19 countries • 70+ nationalities • 30+ langu
Slide 16: Opportunity to Grow in the Attractive F&B Market
OPPORTUNITY TO GROW IN THE ATTRACTIVE F&B MARKET O-I Serves the GLOBAL FOOD AND BEVERAGE Industry with ~ 2.3% Annual Growth GLASS VS ALTERNATIVE PACKAGING UNITS SOLD Globally, glass maintains a strong and stable share in core alcohol categories There is significant room for growth in FOOD, NAB, SPIR
Slide 17: Leveraging Right to Win Will Create Value
LEVERAGING RIGHT TO WIN WILL CREATE VALUE TRANSFORM RETURN CAPITAL TO COST COMPETITIVENESS SHAREHOLDERS INVEST IN INCREASE DRIVE PROFITABLE GROWTH TARGETED GROWTH SHAREHOLDER LEVERAGING OPTIMIZED NETWORK VALUE STRENGTHEN BALANCE SHEET DELIVER HIGHER EARNINGS, FCF (Financial Leverage Ratio ≤ 2.5X) AN
Slide 18: EP Framework Underpins Value Creation
EP FRAMEWORK UNDERPINS VALUE CREATION ECONOMIC PROFIT Mindset, Increased ACCOUNTABILITY and CAPABILITY with alignment of all capital to EP POSITIVE INVESTMENT ECONOMIC PROFIT FRAMEWORK Rigorous Vetting Plants returning on their investment through TOE HURDLE RATE Customers +2% Economic Spread* genera
Slide 19: Reframing Success
REFRAMING SUCCESS Sustainable aEBITDA FCF % Economic aEBITDA Margin % of Sales Spread* REAFFIRM ≥ $1,450M Low 20s ≥ 5% ≥ 2% 2027 Target NEW ≥ $1,650M Mid 20s ≥ 7% ≥ 4% 2029 Objective LONG-TERM Organic Increase premium Net Promotor 20%+ reduction in Achieve Return unit cost in relevant OBJECTIVES gro
Slide 20: Fit to Win
FIT TO WIN EDUARDO RESTREPO, SVP BUSINESS OPERATIONS AMERICAS 20
Slide 21: Fit to Win: 2025-2027
FIT TO WIN: 2025-2027 RADICALLY REDUCE total enterprise cost and OPTIMIZE entire network and value chain PHASE A: PHASE B: BEST AT BOTH RESHAPE THE TRANSFORM THE MODEL STRUCTURE VALUE CHAIN Reduce SG&A Cost Transformation Differentiated Models for Mainstream and Initial Network Total Organization Pr
Slide 22: Delivering on Our Fit to Win Savings Objective
DELIVERING ON OUR FIT TO WIN SAVINGS OBJECTIVE EXCELLENT PROGRESS on PHASE A, EXPANDING Fit To Win Target from $300M to $650M by 2027 2024: 2025: TARGET PHASE A: (by 2027) RESHAPE THE STRUCTURE Reshape SG&A $14M $100M ≥ $200M Initial Network Optimization $11M $100M ≥ $150M SUBTOTAL $25M $200M ≥ $350
Slide 23: Fit to Win Approach
FIT TO WIN APPROACH Drive ECONOMIES OF SCALE and NEW WAYS OF WORKING Across the Network 5. Invest & Monetize 1. SG&A and Network Optimization Maximize economic profit through Reduce cost base to be competitive in all greater return and growth markets / categories where we compete INCREASE ECONOMIC P
Slide 24: Reduce SG&A
PHASE A REDUCE SG&A RESHAPE THE STRUCTURE Lean, FIT FOR PURPOSE Organization SG&A % SALES Rapidly Realigning SG&A Spend 10% To Improve Competitive Position • De-layer the organization • Shift key operational accountabilities to local markets • Reduce central operating costs Peer Avg • Eradicate wast
Slide 25: Initial Network Optimization
PHASE A INITIAL NETWORK OPTIMIZATION RESHAPE THE STRUCTURE Eliminate EXPENSIVE Temporary Downtime ADDRESS EXCESS CAPACITY AND UNABSORBED FIXED COSTS Rapidly Eliminating Excess Capacity 350 20% and Unabsorbed Fixed Costs 18% 300 • Close high cost, underutilized furnaces 16% • Rebalance inventories (p
Slide 26: Cost Transformation Through Disciplined Disruption
PHASE B COST TRANSFORMATION THROUGH DISCIPLINED DISRUPTION TRANSFORM THE VALUE CHAIN Optimize the VALUE CHAIN and Drive Synergies by Leveraging GLOBAL SCALE Cost Transformation through raising standards, challenging conventions, and new levels of productivity Proactively Managing Enterprise Spend RA
Slide 27: A New Approach with Suppliers
PHASE B A NEW APPROACH WITH SUPPLIERS TRANSFORM THE VALUE CHAIN New Framework for Working with Suppliers • Partners – Joint Capital Investment, Joint Ventures, Cost Transformation • Strategics – Productivity, Long-Term Contracts, Consolidation • Transactional – Tender, E-Tender, Rationalization Rati
Slide 28: Total Organization Effectiveness
PHASE B TOTAL ORGANIZATION EFFECTIVENESS TRANSFORM THE VALUE CHAIN Transform PRODUCTIVITY to OPTIMIZE CAPACITY DRIVING SCALE ACROSS and MAXIMIZE ECONOMIC PROFIT THE NETWORK Optimizing Capacity • New methods to drive productivity in glass operations • Implement across entire O-I network by end of 202
Slide 29: Case Study: TOE Pilot at Toano, VA Plant
PHASE B CASE STUDY: TOE PILOT AT TOANO, VA PLANT TRANSFORM THE VALUE CHAIN Total Organization Effectiveness IN ACTION and Delivering strongly against EXPECTATIONS CASE STUDY: 20 WEEK DEPLOYMENT PILOT PORTFOLIO TOE RATING We Are Here Calendar Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1
Slide 30: O-I Mexico Brings Fit to Win Approach to Life
O-I MEXICO BRINGS FIT TO WIN APPROACH TO LIFE MEXICO 5. Invest & Monetize 1. SG&A and Network Optimization Investing in select assets to further Reduced SG&A costs by 25% and right optimize economic profit and monetizing sized capacity to align current supply with under-utilized assets sustainable d
Slide 31: Best at Both
BEST AT BOTH EMMANUELLE GUERIN, SVP BUSINESS OPERATIONS EUROPE 31
Slide 32: Best at Both Model
BEST AT BOTH MODEL DIFFERENTIATED Models for MAINSTREAM VS PREMIUM MODELS MAINSTREAM and PREMIUM Business MAINSTREAM PREMIUM Container Simple, Standard Complex, Branded To further improve its competitive position, Scale Long Run Mostly Fragmented O-I is incorporating unique models for Mainstream Pro
Slide 33: Best at Both Framework
BEST AT BOTH FRAMEWORK Changing WAYS OF WORKING to Successfully execute on Best at Both Model End-to-end Capabilities OPERATIONS Network Supply chain Alignment Specialization Optimization Adapt Service Model Leverage Most GO TO MARKET Based on Segmentation Valuable Relationships 33
Slide 34: Operations Transformation
OPERATIONS TRANSFORMATION Greater NETWORK SPECIALIZATION in line with Mainstream and Premium segments NETWORK SPECIALIZATION FOR BEST AT BOTH MODEL BUSINESS MIX FURNACE ORIENTATION Increase PREMIUM in portfolio mix 18% 27% 40% 40% 30% Realigning furnace/line 10% network for greater specialization an
Slide 35: Winning in Mainstream
WINNING IN MAINSTREAM Lowest Cost Economies of Scale MAINSTREAM Reframe the Core Quality Competition 35 Differentiated Sustainability
Slide 36: Reframing the Competition
REFRAMING THE COMPETITION GLASS BEER MARKET SHARE BE COMPETITIVE WITH CANS AND UNIT COST 100% 100% O-I Glass Cost Per Unit Index (NA = 100%) Glass Share in Beer Sensitive to Costs 90% 90% 80% 80% • 38% of O-I business competes with aluminum cans Glass Share of Beer Market (primarily Beer and NAB) 70
Slide 37: Snapshot: Improving the Competitive Position vs. Cans
SNAPSHOT: IMPROVING THE COMPETITIVE POSITION VS. CANS BEER GLASS COMPETITIVENESS 20%+ reduction in unit cost in relevant GOAL: mainstream categories and markets NORTH AMERICA EUROPE 100% 100% NA Beer Glass Unit Cost = 100% NA Beer Glass Unit Cost = 100% 90% 90% 80% 80% FOCUS FIT TO WIN to reduce 70%
Slide 38: Successful Strategies Winning in Beer
SUCCESSFUL STRATEGIES WINNING IN BEER O-I: Zipaquira, Colombia High operational Large scale Growing efficiency and co- efficiency with market with located sand mine four furnaces drive low cost high glass share Low-cost provider delivers growth: +6.9% glass share; -4.4% share loss by cans IVC: Piedr
Slide 39: Winning in the Premium Model
WINNING IN THE PREMIUM MODEL Flexible Leverage Extensive Production Relationships PREMIUM Design & Best Cost Innovation 39 Sustainability
Slide 40: Successful Strategy Winning in Premium
SUCCESSFUL STRATEGY WINNING IN PREMIUM O-I Has a Successful History of ALIGNING ASSETS to Meet PREMIUM Categories Alloa, Scotland Best total cost serving PREMIUM spirits Asset repositioned to serve premium spirits with highest quality Designed to deliver production flexibility Increased customer tou
Slide 41: Fit to Win - Summary
FIT TO WIN - SUMMARY RADICALLY REDUCE total enterprise cost and OPTIMIZE entire network and value chain FIT TO WIN BENEFITS ($M) 2027 TARGET 2025 $100 $100 $25 $25 $250 ≥ $650M of Fit To Win Benefits 2026 $170 $150 $100 $100 $520 LONG-TERM GOAL • Increase premium portfolio from 2027 $200 $150 $150 $
Slide 42: 10 Min Break
10 MIN BREAK 42
Slide 43: Delivering Profitable Growth
DELIVERING PROFITABLE GROWTH ARNAUD AUJOUANNET, SVP AND CHIEF SALES & MARKETING OFFICER 43
Slide 44: Horizon II: Profitable Growth
HORIZON II: PROFITABLE GROWTH Leverage a COMPETITIVE COST position to drive future PROFITABLE GROWTH with WINNING CUSTOMERS GLASS IN LEVERAGE MOST MORE HANDS “BEST AT BOTH” VALUABLE MODEL RELATIONSHIPS F&B and Glass is Winning in Mainstream Customer Segmentation Attractive and Growing and Premium Ca
Slide 45: O-I Stable Over the Long-Term
O-I STABLE OVER THE LONG-TERM GLASS IN MORE HANDS Reframed Strategy designed to DELIVER GROWTH through COMPETITIVENESS O-I SALES VOLUME (MT) 10 YEAR SALES VOLUME TREND (2013-2022) GLOBAL • O-I: +1.5 CAGR PACKAGING • O-I + Strategic JVs: +2.6% CAGR RECESSION 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 46: Glass Growth Trends
GLASS GROWTH TRENDS GLASS IS EXPECTED TO GROW ~ 1.5% CAGR with most growth in PREMIUM CATEGORIES LONG-TERM CONSUMPTION TRENDS BY CATEGORY Expected Glass MAINSTREAM (~1% CAGR) PREMIUM (~4% CAGR) Container Growth (CAGR 2024-2028) 400 700 Mainstream categories are Premium categories have good growth, 3
Slide 47: Key Consumer Trends
LEVERAGING FAVORABLE MEGATRENDS Transforming COMPETITIVENESS Will Enable O-I to Take Advantage of Favorable MEGA TRENDS 82% of wine drinkers PREMIUMIZATION 41% of US consumers perceive glass bottles AFFORDABLE prefer glass for as a sign of superior LUXURY alcoholic RTDs2. PREMIUM SPIRITS- quality1.
Slide 48: Putting Glass in More Hands
PUTTING GLASS IN MORE HANDS GLASS is an INTEGRAL PART OF EVERYDAY LIFE and will expand across MORE OCCASIONS More Share of occasions MEGA TRENDS + COMPETITIVENESS TRANSFORMATION + O-I CORE STRENGTHS Innovation, Design, Customers = GLASS IN MORE HANDS More Occasions 48
Slide 49: Targeted Approach to Deliver Profitable Growth
TARGETED APPROACH TO DELIVER PROFITABLE GROWTH Differentiated STRATEGY to deliver increased EBIT, RETURNS, GROWTH and FCF OFFENSE DEFENSE Drive Profitable Volume Drive Higher Return/FCF % OF INVEST IMPROVE OPTIMIZE SALES RESTRUCTURE AND GROW AND GROW AND DEFEND VOLUME Mainstream Premium 49
Slide 50: Offense: Growing in Attractive High Value Categories
OFFENSE: GROWING IN ATTRACTIVE HIGH VALUE CATEGORIES Aligning Service Models and Investments to GROWING, PROFITABLE CATEGORIES PREMIUM: • Offer premium value proposition at best cost by expanding network of specialized plants, innovation, design services and sustainability solutions • Invest with wi
Slide 51: Placeholder for Pernod video
Placeholder for Pernod video – NYSE TO RUN VIDEO 51
Slide 52: Defense: Maximize EP in Stable Categories
DEFENSE: MAXIMIZE EP IN STABLE CATEGORIES OPTIMIZE and DEFEND profitable categories, RESTRUCTURE or EXIT unattractive businesses IMPROVING MIX LOW GROWTH BUT HIGH RETURN/FCF 19% 27% GENERATING CATEGORIES: 81% 73% • Deliver lowest cost through improved productivity, 2019 2024 network optimization and
Slide 53: O-I Sales Volume Outlook
O-I SALES VOLUME OUTLOOK STABLE Sales Volume Through 2027 As Focus on Return/Mix; 1.5% CAGR GROWTH 2027 O-I SALES VOLUME OUTLOOK (MT) Stable Sales Volume As Drive > 1.5% CAGR OPPORTUNITIES Growth Focusing on Most Focus On Mix While Attractive Categories Improving Cost Structure • Packaging recession
Slide 54: Most Valuable
MOST VALUABLE MOST TRUSTED GLOBAL GLASS SUPPLIER RELATIONSHIPS O-I has the largest and most diversified customer base …and long-lasting relationships built on a foundation with opportunities for higher value segmentation … of Excellence in Quality & Innovation International Regional Local/Emerging N
Slide 55: Leveraging Strengths to Meet Core Customer Needs
LEVERAGING STRENGTHS TO MEET CORE CUSTOMER NEEDS TO BE MORE TO TO TO BE MORE HELP CUSTOMERS: EFFICIENT GROW DIFFERENTIATE SUSTAINABLE AVAILABILITY AFFORDABILITY/COST INNOVATION/NPD LIGHTWEIGHTING CO2 & RECYCLING 55
Slide 56: Hold for Heineken video
Hold for Heineken video -- NYSE TO RUN VIDEO 56
Slide 57: Evolving Approach with Customers
EVOLVING APPROACH WITH CUSTOMERS SEGMENTATION FOR MANAGING CUSTOMERS SEGMENTATION AND SERVICE LEVELS • Partners • Strategics High • Tacticals Service Levels Standard WORKING DIFFERENTLY • Leveraging digitization and AI to: • Optimize Service Model Basic • Drive Efficiencies & Productivity • Forecast
Slide 58: Profitable Growth - Summary
PROFITABLE GROWTH - SUMMARY Leverage a COMPETITIVE COST position to drive future PROFITABLE GROWTH with WINNING CUSTOMERS 2027 TARGET • Grow in Attractive Categories • Maximize Economic Profit (EP) in Stable Categories • Exit Negative EP Business / Customers / Segments LONG-TERM GOALS • Organic Grow
Slide 59: Strategic Optionality
STRATEGIC OPTIONALITY RANDY BURNS, CHIEF ADMINISTRATIVE & SUSTAINABILITY OFFICER 59
Slide 60: Sustainability = Productivity + Efficiency
SUSTAINABILITY = PRODUCTIVITY + EFFICIENCY New 2030** Goals LOW CARBON RECYCLED CONTENT ENERGY GHG by 47% (1.5˚ Pathway) Renewable Electricity to 80% ENERGY MANUFACTURING EFFICIENCY Cullet to 60% TECHNOLOGY MANUFACTURING LIGHTER EFFICIENCY WEIGHT Prior 2030 Goals* As of 2024 GHG by 25% (2.0˚ Pathway
Slide 61: Strategic Optionality Introduction
STRATEGIC OPTIONALITY INTRODUCTION GROW through geographic expansion, M&A, JVs and partnerships and RETURN VALUE to shareholders GEOGRAPHIC CORPORATE RETURN EXPANSION DEVELOPMENT CAPITAL TO SHAREHOLDERS Enter High Growth, Strategic JVs Prioritize 2.0 – 2.5x EP Markets Financial Leverage Ratio Strate
Slide 62: Geographic Expansion: Top Growth Markets
GEOGRAPHIC EXPANSION: TOP GROWTH MARKETS O-I is the GLOBAL LEADER IN GLASS but with Significant OPPORTUNITY TO EXPAND GLASS CONSUMPTION BY MARKET 2023 MN UNITS 20,000+ 10,000-19,000 5,000-9,9999 0-4,999 O-I MARKETS TOP 10 HIGHEST GROWTH MARKETS GLASS FORECAST CAGR BY MARKET (2024-28) GLASS TOTAL O-I
Slide 63: Corporate Development
CORPORATE DEVELOPMENT Evaluate Opportunities to PROFITABLY SUPPORT our CUSTOMERS AMBITIONS Solid History of SUCCESSFUL STRATEGIC JVs POTENTIAL GROWTH OPPORTUNITIES HISTORY OF SUCCESSFUL JVs SEGMENT ECONOMIC NEAR TERM – Focus on Improving the Balance Sheet PROFIT SPREAD • Potential small bolt-on oppo
Slide 64: Spotlight: MAGMA Designed for the Premium Model
SPOTLIGHT: MAGMA DESIGNED FOR THE PREMIUM MODEL MAGMA was intended to support the PREMIUM model and deliver PRODUCTION FLEXIBILITY Current Status Bowling Green, KY • Operational and producing premium spirits bottles • Slower than expected start up Target Performance • 2025 is an important milestone
Slide 65: Strategic Optionality Summary
STRATEGIC OPTIONALITY SUMMARY GROW through geographic expansion, M&A, JVs and partnerships and RETURN VALUE to shareholders 2027 TARGET Achieve Financial Leverage Ratio ~ 2.5x LONG-TERM GOALS • Financial Leverage Ratio Range 2.0x – 2.5x • Return More Capital to Shareholders 65
Slide 66: Financial Overview & Outlook
FINANCIAL OVERVIEW & OUTLOOK JOHN HAUDRICH, CHIEF FINANCIAL OFFICER 66
Slide 67: Key Messages
KEY MESSAGES Reaffirm 2027 Financial Targets Performance Improvement Enabled by ≥ $650M of Fit To Win Initiative Benefits through 2027 Introducing Preliminary Objectives for 2029 Economic Profit Mindset For Value Creation Capital Allocation Driven by Economic Profit, Cash, Returns, Growth, Balance S
Slide 68: Performance Trend
PERFORMANCE TREND SALES ($B) aEPS $6,856 $7,105 $3.09 $6,357 $6,531 $6,091 $2.30 $1.20 - $1.50 $1.83 $1.22 $0.81 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2025E FCF AND CAPEX ($M) FINANCIAL LEVERAGE FCF $688 CapEx $617 5.5 $539 Mid-3s $398 $400 - $450 4.4 $311 3.9 3.5 $150 - $200 2.9 $282 $2
Slide 69: Reaffirm 2027 Targets and New 2029 Preliminary Objectives
REAFFIRM 2027 TARGETS AND NEW 2029 PRELIMINARY OBJECTIVES ADJUSTED ADJUSTED FCF % SALES ECONOMIC EBITDA EBITDA SPREAD MARGIN % ≥7% ≥$1,650M ≥4% Mid ≥$1,450M 20s ≥5% Low 20s ≥2% $1,100M 17% -2% -2% 2024 Reaffirm Prelim. 2024 Reaffirm Prelim. 2024 Reaffirm Prelim. 2024 Reaffirm Prelim. 2027 2029 2027
Slide 70: Fit to Win: Reshaping O-I's Competitive Position
FIT TO WIN: RESHAPING O-I’S COMPETITIVE POSITION FIT TO WIN Drives ≥ $650M BENEFITS through 2027 FIT TO WIN BENEFITS ($M) 2025 $100 $100 $25 $25 $250 2026 $170 $150 $100 $100 $520 2027 $200 $150 $150 $150 ≥$650 Reshape SG&A (A) PHASE A Initial Network Optimization (A) Cost Transformation (B) PHASE B
Slide 71: Improve Earnings
IMPROVE EARNINGS CONSISTENT IMPROVEMENT in Sustainable aEBITDA ADJUSTED EBITDA ($M) ≥ $1,650M TBD (Mid 20s) ≥ $1,450M (Low 20s) $1,100M (17%) Includes potential impact of fav. Energy contract resets in 2026/2027 Reaffirming 2027 aEBITDA Target of $1.45B Through Fit To Win Expect Continued Performanc
Slide 72: Higher FCF
HIGHER FCF Driving Higher FCF through IMPROVED EARNINGS and TIGHTER CAPITAL MANAGEMENT FCF AS % OF SALES ≥ 7% Sales ≥ 5% Sales 0% -2% Sales 72
Slide 73: Tighter Capital Management Supports Higher FCF
TIGHTER CAPITAL MANAGEMENT SUPPORTS HIGHER FCF EXPECT LOWER CAPEX, Priority Shifts to Maintenance and Productivity CAPEX ($M) $615M ~ $450M Avg CapEx: 2022-2024 Avg CapEx: 2025-2027 Maintenance Productivity Growth Lower CapEx Investment Through Network Optimization and Reduced Growth Investment In F
Slide 74: Improving Balance Sheet
IMPROVING BALANCE SHEET BALANCE SHEET IMPROVEMENT Remains O-I’s TOP PRIORITY for Use of FCF FINANCIAL LEVERAGE RATIO 6 5 4 3 ~ 2.5x 2.0x – 2.5x 2 1 0 2020 2021 2022 2023 2024 2027 Target Prelim. 2029 Objective Target Financial Leverage ratio of 2.0x – 2.5x Capital Return Considerations Once Within T
Slide 75: Capital Allocation Driving Economic Profit
CAPITAL ALLOCATION DRIVING ECONOMIC PROFIT FIT TO WIN INVESTMENTS IMPROVE PRICE, MIX, COST • SG&A Restructuring & PRODUCTIVITY TO DRIVE • Network Optimization / Restructuring • Capacity / Productivity Investments +2% ECONOMIC SPREAD PROFITABLE GROWTH • Capacity / Productivity Investments • Line Exte
Slide 76: Improving Economic Profit
IMPROVING ECONOMIC PROFIT MORE CONSISTENT ECONOMIC PROFIT delivered by Fit To Win ECONOMIC PROFIT AND ECONOMIC SPREAD* 500 7.3% 8% 400 6% 300 4.0% 3.1% 4% 2.6% 2.2% 200 2.0% ES (%) 2% EP ($M) 100 -0.3% 0% 0 -100 -2% -2.1% -200 -4% 2019 2020 2021 2022 2023 2024 2027 Target Prelim. 2029 Objective EP($
Slide 77: Reframing Success
REFRAMING SUCCESS Sustainable aEBITDA FCF % Economic aEBITDA Margin % of Sales Spread* REAFFIRM ≥ $1,450M Low 20s ≥ 5% ≥ 2% 2027 Target NEW ≥ $1,650M Mid 20s ≥ 7% ≥ 4% 2029 Objective LONG-TERM Organic Increase premium Net Promotor 20%+ reduction in Achieve Return unit cost in relevant OBJECTIVES gro
Slide 78: Conclusion
CONCLUSION GORDON HARDIE, PRESIDENT & CHIEF EXECUTIVE OFFICER 78
Slide 79: Execution
EXECUTION Leadership Committed to DELIVER THE VALUE Focused on DELIVERING THROUGH EXECUTION RESULTS Drive Execution • Engage all employees to internalize new purpose statement • Rapid project planning and execution • Bias for speed and achieving measurable results • Adjust execution plans to early w
Slide 80: Robust Investment Thesis
RESHAPING O-I TO BECOME THE ‘BEST VALUE’ PACKAGING OPTION EARNINGS IMPROVEMENT Transforming O-I’s cost base (aEBITDA, $M) to become highly competitive ≥ 1,650 > 8% 5YR CAGR Optimizing how we work across the ROBUST value chain with suppliers and customers ≥ 1,450 INVESTMENT 1,150-1,200 THESIS Buildin
Slide 81: Conclusion
CONCLUSION INCREASING THE VALUE OF O-I BY HELPING: OUR CUSTOMERS Grow their business OUR SUPPLIERS Expand with us OUR PEOPLE Develop their careers OUR SHAREHOLDERS Receive value… AND Be More Sustainable 81
Slide 82: 5 Min Break
5 MIN BREAK 82
Slide 83: Q&A
Q&A 83
Slide 84: Appendix
APPENDIX 84
Slide 85: 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 86: 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 periods ending after December 31, 2024 to its most directly comparable GAAP financial measure, net ea
Slide 87: Reconciliation to Financial Leverage Ratio and Adjusted EBITDA
RECONCILIATION TO FINANCIAL LEVERAGE RATIO AND ADJUSTED EBITDA For the years ending after December 31, 2024, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measures Adjusted EBITDA and financial leverage ratio, which is defined as the sum of total debt
Slide 88: Reconciliation to Adjusted EBITDA Margin
RECONCILIATION TO ADJUSTED EBITDA MARGIN For the year ending December 31, 2025 and later periods, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measures, adjusted EBITDA and adjusted EBITDA margin, to its most directly comparable U.S. GAAP financial m
Slide 89: Reconciliation to Economic Profit and Economic Spread %
RECONCILIATION TO ECONOMIC PROFIT AND ECONOMIC SPREAD % For the year ending December 31, 2025 and later periods, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, economic profit and economic spread percentage, to its most directly comparable U.S
Slide 90: Reconciliation to Free Cash Flow (FCF) & FCF % Net Sales
RECONCILIATION TO FREE CASH FLOW (FCF) & FCF % NET SALES The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measures, free cash flow and free cash flow as a percentage of net sales, for all periods after December 31, 2025 to its most directly comparable U.
Slide 91: Reconciliation to Segment Operating Profit
RECONCILIATION TO SEGMENT OPERATING PROFIT 91