O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Q2 2013 Earnings Presentation
16 slides from O-i Glass's earnings presentation, Jul 24, 2013
Slide 1: O-I Second Quarter 2013 Earnings Presentation
O-I Second Quarter 2013 Earnings Presentation July 25, 2013
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: Second Quarter 2013 Summary
Second Quarter 2013 Summary 2 Adjusted EPS of $0.81 Consistent with prior year Price increased 2% Offset cost inflation Global shipments down ~1% Softness in beer globally Wine volume gains in Europe Rising profitability in Europe and Asia Pacific driven by footprint optimization Disciplined capital
Slide 4: P&L Review
P&L Review 3 2Q13 Recap Price covered inflation Volume down modestly in all regions except AP (flat) Lower production reduced fixed cost absorption Cost savings and footprint optimization benefited bottom line 1 Reportable segment sales exclude the Company’s global equipment business. Reportable Seg
Slide 5: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow 4 Leverage Ratio (Net debt to EBITDA)(1) 1 Total debt less cash divided by bank credit agreement EBITDA. See appendix for EBITDA reconciliations. Current bank covenants allow for a maximum ratio of 4.0x. 2 Free cash flow is defined as cash provided by continuing operating a
Slide 6: Regional Performance: EU and NA
Regional Performance: EU and NA 5 Volume in tonnes down ~1% as wine gains offset by weaker beer Price/mix offset cost inflation Asset optimization and cost reduction programs contribute to margin improvement North America ($ Millions, except margin) 2Q 2013 2Q 2012 Net Sales $746 $731 Segment Operat
Slide 7: Regional Performance: SA and AP
Regional Performance: SA and AP 6 Shipments down ~3% Softness in beer throughout region Gains in spirits, food and wine Higher level of planned furnace rebuild activity Macroeconomic pressures Asia Pacific ($ Millions, except margin) 2Q 2013 2Q 2012 Net Sales - Fx neutral1 $269 $283 $282 Segment Ope
Slide 8: 3Q13 Business Outlook
3Q13 Business Outlook 7 3Q13 vs. 3Q12 Comments Operational Europe Positive growth driven by share recapture in wine Asset optimization yields continuing benefits Tailwind from higher production compared to prior year North America Volumes flat to down slightly Improving structural costs South Americ
Slide 9: Update on 2013 Guidance
Initial 2013 adj. EPS range Factors impacting range Currency devaluation Mainly AUD and BRL Demand headwinds More challenging conditions in Europe and South America Management levers Executing on cost reduction and asset optimization programs New 2013 adj. EPS range Update on 2013 Guidance 8 Free Ca
Slide 10: Executing on Management Priorities
Executing on Management Priorities Furnaces closed in France, Germany and Italy Machines upgraded in France, Germany and the Netherlands Product innovation: Helix introduced in EU wine market Strategic Affirmed free cash flow of at least $300M Narrowed adjusted EPS range to $2.65-$2.85 Disciplined c
Slide 11: Q&A
Q&A 10
Slide 12: Appendix
Appendix 11
Slide 13: Reconciliation of GAAP to Non-GAAP Items
Reconciliation of GAAP to Non-GAAP Items 12 Three months ended June 30 Six months ended June 30 $ Millions, except per-share amts Earnings EPS Earnings EPS Earnings EPS Earnings EPS Earnings from continuing operations 135 $ 0.81 $ 134 $ 0.81 $ 214 $ 1.29 $ 256 $ 1.54 $ attributable to the Company •
Slide 14: Segment Operating Margin
Segment Operating Margin 13 (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 746 $ 731 $ 1,396 $ 1,436 $ North America 527 516 996 998 South America 269 282 538 559 Asia Pacific 231 23
Slide 15: Free Cash Flow
Free Cash Flow 14 (1) Free Cash Flow equals cash provided by continuing operating activities less additions to property, plant and equipment. $ Millions 2013 2012 2013 2012 Net earnings 137 $ 137 $ 211 $ 262 $ Plus: Loss from discontinued ops 3 1 13 2 Earnings from continuing operations 140 138 224
Slide 16: Reconciliation of Credit Agreement EBITDA
Reconciliation of Credit Agreement EBITDA 15 $ Millions 6/30/2013 3/31/2013 12/31/2012 9/30/2012 6/30/2012 Earnings (loss) from continuing operations 180 $ 178 $ 220 $ (406) $ (382) $ Interest expense 250 255 248 255 264 Provision for income taxes 93 97 108 113 110 Depreciation 367 371 378 384 388 A