O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — FY2013 Earnings Presentation
18 slides from O-i Glass's earnings presentation, Jan 28, 2014
Slide 1: O-I Fourth Quarter and Full Year 2013 Earnings Presentation
O-I Fourth Quarter and Full Year 2013 Earnings Presentation January 29, 2014
Slide 2: Safe Harbor Comments
Safe Harbor Comments Regulation G The information presented above regarding adjusted net earnings relates to net earnings attributable to the Company exclusive of items management considers not representative of ongoing operations and does not conform to U.S. generally accepted accounting principles
Slide 3: 2013 Summary
2013 Summary 2 4Q13 Adjusted EPS of $0.51 28% increase over prior year Shipments up 2% Full Year 2013 Free Cash Flow generation of $339M, up 17% Adjusted EPS of $2.72, up 3% Sales volume on par with prior year Progress on structural cost savings and European asset optimization Significant currency h
Slide 4: Performance by Region in 2013
3 Performance by Region in 2013 Record margins of 15% Volume flat, despite beer decline Progress on cost savings Sluggish macroeconomic conditions Volume down <1%, wine gains offset beer weakness Progress on asset optimization Europe North America Flat volumes as uncertainty dampens demand Beer down
Slide 5: 4Q13 Sales and Segment Profit Bridge
4Q13 Sales and Segment Profit Bridge 4 Note: reportable segment sales exclude the Company’s global equipment business. Price up 1% Shipments up 2% All regions up, except EU (flat) Fx headwind, mainly Brazilian Real and Australian Dollar Segment Sales ($ Millions) 4Q12 $1,741 Price/mix 16 Sales volum
Slide 6: 4Q13 Adjusted EPS Bridge
4Q13 Adjusted EPS Bridge 5 Adjusted Earnings Per Share 4Q12 $0.40 Segment operating profit 0.17 Retained corp costs (0.01) Net interest expense 0.04 Non-controlling interests (0.01) Effective tax rate (0.08) Total Reconciling 0.11 4Q13 $0.51 Segment operating profit drives earnings higher Corporate
Slide 7: 2014 Outlook for Adjusted Earnings
2014 Outlook for Adjusted Earnings 7 Year over Year Impact Comments Europe Sales volume flat Savings from asset optimization program ~$25M North America Volume and margins flat South America Low single digit volume growth Less downtime from 2013 one-off events Asia Pacific Volume down high single di
Slide 8: 2014 Outlook for Free Cash Flow
2014 Outlook for Free Cash Flow 8 Year over Year Impact Comments Adjusted earnings YoY improvement Working Capital ~$0M, working capital balances flat with PY Pension contributions ~$50M, only to non-US plans Asbestos payments Continuing trend of $5 - $10M reduction per year Restructuring payments ~
Slide 9: 1Q14 Business Outlook
1Q14 Business Outlook 9 1Q14 vs. 1Q13 Comments Operational Europe Sales volume flat Asset optimization yields continuing benefits North America Volume flat South America Volume down mid-single digits vs. strong PY quarter Headwinds: Currency and furnace repairs Asia Pacific Volume declines Structura
Slide 10: 2014 Management Priorities
2014 Management Priorities Execute European asset optimization program Capture emerging market growth, aided by product innovation Focus R&D investments on manufacturing efficiencies Strategic Deliver approximately $350M of free cash flow Maintain capital allocation, 90/10 debt to share repurchases
Slide 11: Q&A
Q&A 11
Slide 12: Appendix
Appendix 12
Slide 13: 4Q13 Financial Review
4Q13 Financial Review 13 1 Reportable segment sales exclude the Company’s global equipment business. Shipments up 2% EU flat NA up 4% SA up 5% AP up 1% 4Q13 Reportable Segments Sales (1) Operating Profit Adjusted Net Income ($ Millions) ($ Millions) (Non-GAAP EPS) 4Q12 $1,741 $164 $0.40 Price/Mix 16
Slide 14: Full Year 2013 Financial Review
Full Year 2013 Financial Review 14 1 Reportable segment sales exclude the Company’s global equipment business. (0.06) Reportable Segments Sales (1) Operating Profit Adjusted Net Income ($ Millions) ($ Millions) (Non-GAAP EPS) FY12 $6,963 $935 $2.64 Price/Mix 118 118 0.55 Cost Inflation (134) (0.63)
Slide 15: Reconciliation of GAAP to Non-GAAP Items
Reconciliation of GAAP to Non-GAAP Items 15 (1) This reconciling item is related to the difference between the calculation of earnings per share for reported earnings and adjusted earnings. For reported earnings, for the three months ending December 31, 2013 and December 31, 2012, diluted earnings p
Slide 16: Segment Operating Margin
Segment Operating Margin 16 (1) Segment operating profit margin is segment operating profit divided by segment net sales $ Millions (except profit margin) Net Sales: 2013 2012 2013 2012 Europe 658 $ 629 $ 2,787 $ 2,717 $ North America 477 455 2,002 1,966 South America 366 370 1,186 1,252 Asia Pacifi
Slide 17: Free Cash Flow
Free Cash Flow 17 $ Millions 2013 2012 2013 2012 Net earnings (loss) (150) $ (141) $ 197 $ 218 $ Plus: (Gain) Loss from discontinued ops 3 (2) 18 2 Earnings from continuing operations (147) (143) 215 220 Non-cash charges: Depreciation and amortization 108 109 429 445 Asbestos-related costs 145 155 1
Slide 18: Leverage Ratio Reconciliations of Adjusted EBITDA and Net Debt
Leverage Ratio Reconciliations of Adjusted EBITDA and Net Debt 18 $ Millions 2013 2012 2011 Earnings (loss) from continuing operations 215 $ 220 $ (491) $ Interest expense 239 248 314 Provision for income taxes 120 108 85 Depreciation 350 378 405 Amortization of intangibles 47 34 17 EBITDA 971 988 3