O-i Glass, Inc. · NYSE:OI
O-i Glass — Investor Presentation (June 2020)
14 slides from O-i Glass's investor presentation, Jun 8, 2020
Slide 1: Investor Presentation June 8, 2020 Update
INVESTOR PRESENTATION JUNE 8, 2020 UPDATE
Slide 2: Safe Harbor Comments
SAFE HARBOR COMMENTS 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 Securitie
Slide 3: O-I at a Glance
O-I AT A GLANCE LEADING GLOBAL $6.7 BILLION 6000+ glass container supplier in net sales in 2019 direct customers FOUNDED IN 1903 MAGMA revolutionize As Owens Bottle Company glass making O P E R AT I N G I N 3 R E G I O N S : 78 factories Americas, Europe and Asia-Pacific 23 countries 71% OF NET SALE
Slide 4: Strong Market Position
S T R O NG M A RKE T PO SI T I O N S TA B L E , B A L A N C E D F O O D A N D B E V E R A G E P O R T F O L I O AMERICAS EUROPE ASIA PACIFIC 55% Total O-I Sales 36% Total O-I Sales 9% Total O-I Sales 3% 5% 2% 13% 13% 1% 26% 8% 25% 42% 43% 35% 17% 14% 13% 17% 10% 13% ■ Beer ■ Food ■ NAB ■ Wine ■ Spir
Slide 5: Executing O-I Glass Investment Thesis
EXECUTING O-I GLASS INVESTMENT THESIS B O L D S T R U C T U R A L A C T I O N S T O C H A N G E O - I ’ S B U S I N E S S F U N D A M E N TA L S 1 2 3 TURNAROUND REVOLUTIONIZE OPTIMIZE INITIATIVES GLASS STRUCTURE S T R O N G O P E R AT I N G P E R F O R M A N C E C R E AT E A N E W B U S I N E S S M
Slide 6: Turnaround Initiatives
TURNAROUND INITIATIVES D R I V E S T R O N G O P E R AT I N G P E R F O R M A N C E A N D C O S T E F F I C I E N C I E S • Top priority Health and Safety • Protective measures aligned with recommendations of WHO, CDC, local authorities • Factory Performance: Excellent progress with ~ $14M 1Q20 bene
Slide 7: Revolutionizing Glass
R E V O L U TI O NI Z I NG GL ASS A N E W B U S I N E S S M O D E L F O R G L A S S PA C K A G I N G MAGMA reinvents how glass is made, creating a new and In a world where SUSTAINABILITY is more important than more profitable future business model for glass ever, we are proud to make an inherently s
Slide 8: Optimize Structure
O P T I M I Z E S T RUCT URE REBALANCE BUSINESS PORTFOLIO AND IMPROVE BALANCE SHEET DIVESTITURES • Strategic Portfolio Review temporarily halted amid Covid-19 • Tactical divestitures proceeding at slower pace RESOLVE ASBESTOS-RELATED LIABILITIES • Paddock Chapter 11 filing from Jan 2020 proceeding a
Slide 9: 2020 Guiding Principles
2 Q 2 0 B U S I N E S S U P D AT E 2020 Guiding Principles S U C C E S S F U L LY A D A P T I N G T O C O V I D - 1 9 W I T H S P E E D A N D A G I L I T Y Preserve Strong Liquidity Shipments gradually improving as markets begin to reopen ● Daily shipments down ~ 18% QTD through May (Mexico/Andean d
Slide 10: Focused on Navigating Covid-19 and Creating Long-Term Value
F O C US E D O N N AV I G AT I NG COVI D-19 AND C R E AT I NG L ONG T ERM VAL UE NAVIGATE COVID-19 ► FOCUS ON LIQUIDITY, FCF AND DEBT REDUCTION 1 ► ALIGN SUPPLY WITH DEMAND AND REDUCE WORKING CAPITAL ► AGGRESSIVELY MANAGE COSTS: CAPEX AND SG&A ► SUSPEND DIVIDEND AND PAUSE SHARE REPURCHASES CREATE LO
Slide 11: Financial Appendix
FINANCIAL APPENDIX
Slide 12: Non-GAAP Financial Measures
N O N -GAAP F I N A N CIAL M EASURES 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 pres
Slide 13: Reconciliation for Net Debt
R E C O NCI LI AT I O N F OR NET DEBT 13
Slide 14: FX Impact on Earnings
F X I M PA C T O N EARNI NGS APPROXIMATE ANNUAL TRANSLATION FX RATES AT KEY POINTS IMPACT ON EPS FROM 10% FX CHANGE May 31, AVG AVG 2020 2019 2Q19 EUR $0.12 EUR 1.11 1.12 1.12 MXN $0.05 MXN 22.17 19.32 19.26 BRL $0.03 BRL 5.33 3.95 3.91 COP $0.02 COP 3,727 3,299 3,270 AUD $0.02 AUD 0.67 0.70 0.70 14