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
2 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 me aning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of th
Slide 3: O-I at a Glance
3 FOUNDED IN 1903 As Owens Bottle Company OPERATING IN 3 REGIONS: Americas, Europe and Asia - Pacific $6.7 BILLION in net sales in 2019 6000+ direct customers O - I AT A GLANCE MAGMA revolutionize glass making 78 factories 23 countries LEADING GLOBAL glass container supplier 71% OF NET SALES from no
Slide 4: Strong Market Position, Stable, Balanced Food and Beverage Portfolio
STRONG MARKET POSITION STABLE, BALANCED FOOD AND BEVERAGE PORTFOLIO * NOTE: 2019 volume data in tonnes , does not include non - consolidated O - I JV’s AMERICAS 55% Total O - I Sales EUROPE 36% Total O - I Sales ASIA PACIFIC 9% Total O - I Sales Globally, approximately 20 - 25% of products packaged
Slide 5: Executing O-I Glass Investment Thesis
1 3 2 EXECUTING O - I GLASS INVESTMENT THESIS BOLD STRUCTURAL ACTIONS TO CHANGE O - I’S BUSINESS FUNDAMENTALS 5 OPTIMIZE STRUCTURE REBALANCE BUSINESS PORTFOLIO AND IMPROVE BALANCE SHEET REVOLUTIONIZE GLASS CREATE A NEW BUSINESS MODEL FOR GLASS PACKAGING TURNAROUND INITIATIVES STRONG OPERATING PERFOR
Slide 6: Turnaround Initiatives Drive Strong Operating Performance and Cost Efficiencies
6 TURNAROUND INITIATIVES DRIVE STRONG OPERATING PERFORMANCE AND COST EFFICIENCIES TURNAROUND INITIATIVES EXCEEDING MANAGEMENT EXPECTATIONS PROVIDING CONFIDENCE IN ABILITY TO EXECUTE • Top priority • Protective measures aligned with recommendations of WHO, CDC, local authorities Health and Safety • F
Slide 7: Revolutionizing Glass: A New Business Model for Glass Packaging
REVOLUTIONIZING GLASS A NEW BUSINESS MODEL FOR GLASS PACKAGING MAGMA Development (2019 – 2022+) Generation 1 Generation 2 Generation 3 MAGMA Melter Modular end - to - end system ( melter , forming, etc ) Optimized modular end - to - end system (automation, digitization, etc ) Limited Locations Expan
Slide 8: Optimize Structure: Rebalance Business Portfolio and Improve Balance Sheet
8 OPTIMIZE STRUCTURE 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 as ex
Slide 9: 2Q20 Business Update: Successfully Adapting to Covid-19
2Q20 BUSINESS UPDATE SUCCESSFULLY ADAPTING TO COVID - 19 WITH SPEED AND AGILITY 9 Shipments gradually improving as markets begin to reopen ● Daily shipments down ~ 18% QTD through May (Mexico/Andean down ~ 35%) ◉ Trends improved starting mid - May in most markets; Mexico/Andean reopening early June
Slide 10: Focused on Navigating Covid-19 and Creating Long Term Value
1 2 10 FOCUSED ON NAVIGATING COVID - 19 AND CREATING LONG TERM VALUE NAVIGATE COVID - 19 ► FOCUS ON LIQUIDITY, FCF AND DEBT REDUCTION ► ALIGN SUPPLY WITH DEMAND AND REDUCE WORKING CAPITAL ► AGGRESSIVELY MANAGE COSTS: CAPEX AND SG&A ► SUSPEND DIVIDEND AND PAUSE SHARE REPURCHASES CREATE LONG - TERM VA
Slide 11: Financial Appendix
FINANCIAL APPENDIX
Slide 12: Non-GAAP Financial Measures
12 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 presen
Slide 13: Reconciliation for Net Debt
13 RECONCILIATION FOR NET DEBT
Slide 14: FX Impact on Earnings
14 FX IMPACT ON EARNINGS APPROXIMATE ANNUAL TRANSLATION IMPACT ON EPS FROM 10% FX CHANGE EUR $0.12 MXN $0.05 BRL $0.03 COP $0.02 AUD $0.02 FX RATES AT KEY POINTS May 31, 2020 AVG 2019 AVG 2Q19 EUR 1.11 1.12 1.12 MXN 22.17 19.32 19.26 BRL 5.33 3.95 3.91 COP 3,727 3,299 3,270 AUD 0.67 0.70 0.70