O-i Glass, Inc. · NYSE:OI
O-i Glass — BofA Securities 2024 Global Agriculture and Materials Conference
27 slides from O-i Glass's conference presentation, Feb 29, 2024
Slide 1: Capital Markets Presentation
CAPITAL MARKETS PRESENTATION FEBRUARY 2024
Slide 2: Safe Harbor Comments
SAFE HARBOR COMMENTS 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 Securities Act of 1933, as amended.
Slide 3: O-I at a Glance
O-I AT A GLANCE AGILE AND INNOVATIVE GLOBAL LEADER IN GLASS PACKAGING FOCUSED ON PROFITABLE GROWTH, PERFORMANCE IMPROVEMENT AND SHAREHOLDER VALUE CREATION 36glass containers manufactured in 2023 6,000 Sustainability Leadership ~23,000 employees BILLION is driving across 68 plants #1 customers across
Slide 4: O-I Serves the Brands You Trust and Love
O-I SERVES THE BRANDS YOU TRUST AND LOVE 4
Slide 5: Portfolio Overview
PORTFOLIO OVERVIEW AMERICAS EU Category Mix Net Sales ($B) $3.9 $3.1 $7.1 Beer 32% # Plants 32 34 68 Wine 19% # Countries 7 10 19 Long Term Contracts 75% 35% 55% Food 17% Long Term CAGR 0% - 3% 1% - 2% 1% - 2% NAB 16% Spirits 16% 5 O-I’s non reportable segment includes operations in Asia as well as
Slide 6: Compelling Strategy to Create Shareholder Value
COMPELLING STRATEGY TO CREATE SHAREHOLDER VALUE Expand in attractive Consistent performance markets and categories with improvement through O-I’s targeted investments margin expansion program PROFITABLE Leverage sustainability and unique brand building Optimize the business portfolio INCREASE REVENU
Slide 7: Favorable Mega Trends Drive Glass Demand Growth
FAVORABLE MEGA TRENDS DRIVE GLASS DEMAND GROWTH Increased demand Health and CPG innovation Glass is the most for premium wellness favors and diversification sustainable rigid beverages glass over plastic of product portfolios packaging Glass Metal Plastic 7 Favorable Neutral Unfavorable
Slide 8: Glass Market Has Multiple Avenues for Growth
GLASS MARKET HAS MULTIPLE AVENUES FOR GROWTH KEY BEVERAGE GROWTH AREAS ARE UNIQUELY SUITED TO GLASS NON-ALCOHOL PREMIUM ALCOHOL SPARKLING WINE SPIRIT-BASED RTDs BFY DRINKS & CSDs BEVERAGE $375B Global Market $36B Global Market $12B Global Market $13B Global Market $710B Global Market Beer +6.0% Tota
Slide 9: Expanding in Attractive Markets and Categories
EXPANDING IN ATTRACTIVE MARKETS AND CATEGORIES EXPANDING IN PREMIUM MARKETS ACROSS PREMIUM CATEGORIES WITH PREMIUM TECHNOLOGY CANADA PREMIUM BEER (1 line extension) Diverse Portfolio of Expansion Projects • Target ~ 20% avg IRR • Attractive markets/categories US SPIRITS • Brazil, Peru and Scotland p
Slide 10: Glass Is Set to Win in the New Green Economy
GLASS IS SET TO WIN IN THE NEW GREEN ECONOMY Plastic, metal, and hybrid materials all have waste, food contact, recyclability, and unnatural problems that may never be solved…while glass does not and O-I is investing and innovating to solve the sustainability challenges with glass, focused on weight
Slide 11: ULTRA: Continuing O-I's Leadership in Glass Technology
CONTINUING O-I’S LEADERSHIP IN GLASS TODAY TECHNOLOGY DEVELOPMENT O-I has over 3,800 patents/applications R&D IS A CORE COMPETENCY worldwide and is continuing to innovate the value proposition for glass with MAGMA and ULTRA 1903 Michael Owens founded the Owens Bottle Machine Company with a breakthro
Slide 12: How We Will Win: MAGMA
MAGMA WILL BE A UNIQUE COMPETITIVE ADVANTAGE FIRST MAGMA GREENFIELD IN BOWLING GREEN, KY WILL BE COMMISSIONED IN 2024 A RADICALLY INNOVATIVE MAGMA Greenfield END-TO-END PRODUCTION LINE Achieve attractive economics at Bowling Green, KY FLEXIBLE lower utilization rate SCALABLE Reduces capacity per ins
Slide 13: Expanding O-I's Right to Win
EXPANDING O-I’S RIGHT TO WIN MAGMA AND ULTRA HELP EXPAND O-I’S TOTAL ADDRESSABLE MARKET BY MORE THAN 30% LOCAL EXPANSION OF O-I’S RIGHT TO WIN O-I FOOTPRINT FIXED O-I’S CORE STRENGTHS MAJOR BRANDS DIFFERENTIATED MARKET CUSTOMER ATTRIBUTES 13
Slide 14: Robust Margin Expansion Initiative Program
ROBUST MARGIN EXPANSION INITIATIVE PROGRAM CONSISTENT AND PROVEN PROGRAM TO IMPROVE PERFORMANCE AND MARGINS TARGET ≥ $150M INITIATIVE BENEFITS IN 2024 SEGMENT OPERATING PROFIT MARGIN Revenue Optimization: Product mix and commercial enhancements 17.1% Factory Performance: Cost and efficiency 14.3% im
Slide 15: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION FCF PROFILE (PRIOR TO ASBESTOS PAYMENTS) FUND PROFITABLE GROWTH 2013 - 2022 More than $1.5B was spent on 2023 Invest to expand in attractive markets and categories asbestos-related payments Develop and deploy MAGMA and ULTRA 48% 52% IMPROVE CAPITAL STRUCTURE Currently
Slide 16: Strong Performance Despite Macro Challenges
STRONG PERFORMANCE DESPITE MACRO CHALLENGES EXCEEDING 2024 TARGETS FROM INVESTOR DAY (2021) SALES ($B) aEPS 2024 Target $6,856 $7,105 $3.09 from Investor $6,091 $6,357 Day (2021) $2.30 $1.83 $1.22 2020 2021 2022 2023 2020 2021 2022 2023 FCF AND CAPEX ($M) FINANCIAL LEVERAGE $688 $800 5.5 2024 Target
Slide 17: Outlook: OI Remains Resilient and Agile Amid Macro Challenges
OUTLOOK: OI REMAINS RESILIENT AND AGILE AMID MACRO CHALLENGES Volume Adjusted Free Cash Net Debt (% change YoY) EBITDA ($M) Adjusted EPS Flow ($M) Leverage Ratio 2023 ACTUAL -12% $1,452 $3.09 $130 2.8x 2024 +LSD/MSD $1,325 - $1,400 $2.25 - $2.65 $150 - $200 2.5x - 3.0x OUTLOOK No change since Feb 7,
Slide 18: Investment Thesis
Transformed, agile organization properly suited to meet customers’ needs and evolving market dynamics Strong earnings growth driven by consistent execution INVESTMENT Enabling profitable long-term growth in attractive markets and categories THESIS Delivering disruptive breakthrough technology to inc
Slide 19: Appendix
APPENDIX
Slide 20: Our Sustainability Goals
OUR SUSTAINABILITY GOALS 50% TARGET SUPPLY CHAIN SUSTAINABILITY Increase recycled content to 50% average by 2030. O-I Achieve sustainability balance, together, by aligning is taking a tailored approach to increase recycled our supply chain with our 2030 sustainability vision content rates across its
Slide 21: 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 22: 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 periods beyond the year ended December 31, 2023 to its most directly comparable GAAP financial measure, N
Slide 23: Reconciliation for Segment Operating Profit
RECONCILIATION FOR SEGMENT OPERATING PROFIT 23
Slide 24: Reconciliation to Net Debt and Financial Leverage Ratios
RECONCILIATION TO NET DEBT AND FINANCIAL LEVERAGE RATIOS 24
Slide 25: Reconciliation to Adjusted EBITDA
RECONCILIATION TO ADJUSTED EBITDA For the year ending December 31, 2024, 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 26: Free Cash Flow Profile (Prior to Asbestos Payments) Reconciliation
FREE CASH FLOW PROFILE (PRIOR TO ASBESTOS PAYMENTS) RECONCILIATION 26
Slide 27: Additional Reconciliation
ADDITIONAL RECONCILIATION RECONCILIATION TO FINANCIAL AND NET DEBT LEVERAGE RATIOS For the periods ending after December 31, 2023, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measures, total financial leverage ratio and net debt leverage ratio, whic
O-I Glass — BofA Securities 2024 Global Agriculture and Materials Conference on 6ix