O-i Glass, Inc. · NYSE:OI
O-i Glass — Q1 2024 Earnings Presentation
22 slides from O-i Glass's earnings presentation, May 1, 2024
Slide 1: First Quarter 2024 Earnings
FIRST QUARTER 2024 EARNINGS APRIL 30, 2024
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 Securiti
Slide 3: Overview: Executing Well as Markets Begin to Recover
OVERVIEW EXECUTING WELL AS MARKETS BEGIN TO RECOVER Earnings Per Share $0.45 1Q24 EPS, DOWN FROM HISTORICALLY STRONG PY PERFORMANCE (EPS) • Softer demand due to current market downturn along with related temporary production curtailments • Slightly lower net price $1.50 Diluted • Short-term commerci
Slide 4: Gradually Improving Demand
GLASS DEMAND TRENDS GRADUALLY IMPROVING DEMAND YoY Change in O-I Shipments (in tons)¹ 16% 12% EXPECT STRONGER 2H24 8% 4% 0% -4% -8% EARLY SIGNS OF MARKET IMPROVEMENT -12% -16% • 1Q24 sales volumes declined ~12.5%, compared to a decline of ~16% in 4Q23 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q2
Slide 5: 1Q24: Earnings Down from PY as Expected
1Q24: EARNINGS DOWN FROM PY AS EXPECTED LOWER 1Q24 EARNINGS DUE TO A DECLINE IN SEGMENT OPERATING PROFIT Further details included in the appendix Corp Ret. +$0.09/sh Interest -$0.05/sh Tax Rate -$0.09/sh (35% 1Q24 vs 22% 1Q23) 5 (1) Non-operating includes retained corporate costs, interest expenses,
Slide 6: 1Q24: Segment Performance
1Q24: SEGMENT PERFORMANCE LOWER 1Q24 SEGMENT RESULTS REFLECTED CURRENT MARKET DOWNTURN -10% in Tons -15% in Tons - Production curtailment - Lower JV results - PY energy credits + Margin expansion initiatives - Production Curtailment + Margin expansion Initiatives 6
Slide 7: Revised 2024 Business Outlook Reflects Slower Rate of Consumer Consumption Recovery
REVISED 2024 BUSINESS OUTLOOK REFLECTS SLOWER RATE OF CONSUMER CONSUMPTION RECOVERY FY24 GUIDANCE CURRENT PRIOR 2.25 - 2.65 Sales Vol Growth (Tons) Flat to +LSD + LSD/MSD Incremental Adjusted EBITDA ($M) $1,250 - $1,350 $1,325 - $1,400 Initiative Benefits No change Adjusted EPS $1.50 - $2.00 $2.25 -
Slide 8: 2024 Key Objectives
2024 KEY OBJECTIVES STRONG MARGIN EXPANSION INITIATIVE BENEFITS AND UPCOMING CRITICAL MILESTONE AS O-I COMMISSIONS FIRST MAGMA GREENFIELD PRIORITIES OBJECTIVES STATUS (1Q24) • ≥ $150M margin expansion initiative benefits • $50M benefit 1Q24; increased annual target to ≥ $175M Margin Expansion • Acce
Slide 9: First MAGMA Greenfield on Track
FIRST MAGMA GREENFIELD ON TRACK BOWLING GREEN, KY MAGMA GEN 2 LINE INITIAL COMMISSIONING EXPECTED JULY/AUG 2024 FLEXIBLE SCALABLE SUSTAINABLE RAPID DEPLOYMENT NEAR/CO LOCATION LOWER OPERATING COSTS LOWER CAPITAL INTENSITY 9
Slide 10: Expanding O-I's Right to Win
EXPANDING O-I’S RIGHT TO WIN MAGMA AND ULTRA SHOULD HELP EXPAND O-I’S TOTAL ADDRESSABLE MARKET BY MORE THAN 30% NEAR/CO LOCATION EXPANSION OF O-I’S RIGHT TO WIN O-I FOOTPRINT HERITAGE O-I’S CORE STRENGTHS MAJOR BRANDS FRAGMENTED MARKET CUSTOMER ATTRIBUTES 10
Slide 11: Conclusion
CONCLUSION STRONGER FUTURE EARNINGS POTENTIAL AS MARKET RECOVERS OVER TIME ANDRES LOPEZ NAVIGATING WELL THROUGH CEO: Jan 2016 – May 2024 1 CHALLENGING MACRO CONDITIONS REFLECTIONS: REVISED OUTLOOK REFLECTS SLOWER • Fundamental Transformation 2 MACRO RECOVERY • Simple, Agile, Effective Organization •
Slide 12: Appendix
APPENDIX
Slide 13: 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 of glass Optimize the business packaging to drive growth portfolio and im
Slide 14: 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 15: Summary Financial Results: 1Q24 vs 1Q23
SUMMARY FINANCIAL RESULTS: 1Q24 VS 1Q23 NET SALES SEGMENT OPERATING PROFIT $M except EPS and % AMERICAS EUROPE CORP TOTAL AMERICAS EUROPE TOTAL EPS 1Q23 $ 1,000 $ 799 $ 32 $ 1,831 $176 $222 $398 $1.29 % Margin 17.6% 27.8% 22.1% FX 35 7 - 42 5 (1) 4 0.02 SUBTOTAL $ 1,035 $806 $32 $1,873 $181 $221 $40
Slide 16: Segment FX Impact on Earnings
SEGMENT FX IMPACT ON EARNINGS APPROXIMATE ANNUAL IMPACT ON FX RATES AT KEY POINTS EPS FROM 10% FX CHANGE Apr 26, AVG AVG 2024 1Q24 1Q23 EUR 0.23 EUR 1.07 1.08 1.08 MXN 0.06 MXN 17.16 16.94 18.42 BRL 0.02 BRL 5.12 4.98 5.14 COP 0.03 COP 3,897 3,899 4,683 16 Current Business Outlook is Based on FX Rat
Slide 17: 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 18: Segment Reconciliations
SEGMENT RECONCILIATIONS 1Q24 PRICE, SALES VOLUME AND CURRENCY IMPACT ON REPORTABLE SEGMENT SALES 1Q24 PRICE, SALES VOLUME, OPERATING COSTS AND CURRENCY IMPACT ON REPORTABLE SEGMENT OPERATING PROFIT 18 (a) Currency effect on net sales and segment operating profit determined by using 2024 foreign curr
Slide 19: Reconciliation for Segment Operating Profit
RECONCILIATION FOR SEGMENT OPERATING PROFIT 19
Slide 20: Reconciliation to Net Debt Leverage Ratio
RECONCILIATION TO NET DEBT LEVERAGE RATIO For the year ending December 31, 2024, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, net debt leverage ratio, which is defined as total debt less cash divided by Adjusted EBITDA, to its most directly
Slide 21: Additional Reconciliations
ADDITIONAL RECONCILIATIONS RECONCILIATION TO FCF 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 measu
Slide 22: Additional Reconciliations
ADDITIONAL RECONCILIATIONS 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 the year ending December 31, 2024 and beyond to its most directly comparable G