Slide 1: 3Q21 Capital Markets Presentation
3Q21 CAPITAL MARKETS PRESENTATION NOVEMBER 30, 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: At a Glance
AT A G L A N C E DIVERSE BROAD PRODUCT PORTFOLIO CUSTOMER BASE 34% beer 19% wine 19% food 15% spirits 13% 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 profitab
Slide 4: O-I Strategy to Enhance Stakeholder Value
BUILDING THE PATH TO YES! O-I SRATEGY TO 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 Fle
Slide 5: Market Evolution Is Favorable to Glass
MARKET EVOLUTION IS FAVORABLE TO GLASS WELLNESS POSITIVE Glass is all natural and inert – it will not contaminate the product content and is the only package “generally recognized as safe” by the U.S. Food and Drug Administration PREMIUM & DIFFERENTIATED The appearance of a glass container alone can
Slide 6: Glass Is an Attractive Market
G L AS S I S AN AT T R AC TIV E M AR K E T While flat during the austerity era, glass is expected to grow 1.6% CAGR as trends accelerate. PROJECTED PACKAGING GROWTH NORTH AMERICAN PACKAGING LANES (2022-2024) 4.5% HIGH GLASS AFFINITY CATEGORIES GLASS VOLUME GROWTH ALL PACKAGING VOLUME GROWTH ~ 77% of
Slide 7: Substantial Progress Transforming O-I
S UB S TAN T IAL P RO G RE S S T R AN S F O RM ING O- I TRANSFORM AT IO N OBJECTIV ES PROGRESS 1. SIMPLE, AGILE, EFFECTIVE & ADAPTABLE ORGANIZATION INTEGRATED BUSINESS PLANNING ALIGNED WITH STRATEGY STREAMLINED ORGANIZATION REBUILT CRITICAL CAPABILITIES – COMMERCIAL, R&D, ESG STRONG COMMERCIAL PIPEL
Slide 8: MAGMA's Potential Benefits
M AG M A’ S P OT E N T IAL B E N E F I TS O-I expects MAGMA will significantly enhance O-I’s capabilities and competitive position. OBJECT IV ES MAGMA GEN 3 1 IMPROV EM ENT VS HERITAGE (2025+ ) 1. FLEXIBLE Achieve attractive economics at 15% lower utilization rate 2. SCALABLE New melter reduces capa
Slide 9: 1%–2% CAGR Profitable Volume Growth 2022-2024
1 % – 2 % C AG R P R O F I TA B L E VO L U M E G R OW T H 1 2 0 2 2 - 2 0 2 4 CAN Premium Beer UK Spirits (1 Line Extension) (up to 2 MAGMA Lines) EXPAND I NG IN PREMIUM MARKETS US Spirits ACROSS PREMIUM CATEGORIES (up to 3 MAGMA lines) WITH PREMIUM TECHNOLOGY COLOMBIA Beer, NAB Investing up to $680
Slide 10: Capital Redeployment to Fund Growth
CAPITAL REDEPLOYMENT TO FUND GROWTH $1.5B portfolio optimization program to fund MAGMA expansion and improve ROIC. PORTFOLIO OPTIMIZATION PROGRAM (2019-2024) $1,800 $1,600 1,500 OPTIMIZE IMPROVE BUSINESS $1,400 CAPITAL PORTFOLIO STRUCTURE $1,200 > 15% IRR ~ 0.7x lower $1,000 ($M) 810 Leverage Ratio
Slide 11: Business Outlook
BUS I N E S S O UT L O O K 2021 2022 2024 Outlook as of November 30, 2021 Prelim Thoughts as of October 26, 2021 Targets from September 28, 2021 I-Day • Volume1: up 4+% in FY21 • Volume1: up 0-1% • Volume1: 1-2% CAGR 2022-2024 o 4Q21QTD up ~2% vs ~ flat guidance o Limited risk that system wide infla
Slide 12: O-I Sustainability Goals
O - I S US TAI N ABILITY G OAL S 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 ac
Slide 13: Conclusion: O-I Is an Attractive Investment
CONCLUSION: O-I IS AN ATTRACTIVE INVESTMENT MARKET, TRANSFORMATION MAGMA RESOLUTION OF OPPORTUNITY FOR INNOVATION & IMPROVES MARGINS, WILL UNLOCK LEGACY LIABILITIES HIGHER VALUATION ESG LEADER EARNINGS & ROIC SIGNIFICANT REDUCES RISK & THROUGH SOLID IN THE ATTRACTIVE GROWTH IMPROVES CASH EXECUTION A
Slide 14: Appendix
APPENDIX
Slide 15: Paddock Chapter 11 – Progress and Update
PAD D OCK C H AP TE R 1 1 – P RO G RE S S AN D UP DAT E 1 COMPLETED/CURRENT • Phase 1: Paddock files for bankruptcy protection in Delaware and obtains initial relief • Phase II: Paddock informally negotiates with the Asbestos Claimants’ Committee and Future Claimants Representative, fiduciaries for
Slide 16: Segment FX Impact on Earnings
S E G M E N T F X I M PACT O N E AR N I N GS 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
Slide 17: Non-GAAP Financial Measures
N O N - GAAP F I N AN CIAL M E AS 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
Slide 18: Additional Reconciliations
AD D I TIO NAL R E C O NCILIATIO NS 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 year ending December 31, 2021 and all periods after, to its most directly comparable GAAP financial