O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Credit Suisse Basic Materials Conference 2014
15 slides from O-i Glass's conference presentation, Sep 17, 2014
Slide 1: Credit Suisse Basic Materials Conference
Credit Suisse Basic Materials Conference Steve Bramlage CFO Owens-Illinois, Inc. September 17, 2014
Slide 2: Safe Harbor Comments
Safe Harbor Comments 2 Regulation G The information presented herein regarding adjusted net earnings relates to net earnings from continuing operations attributable to the Company exclusive of items management considers not representative of ongoing operations and does not conform to U.S. generally
Slide 3: Global leader in glass packaging
3 Global leader in glass packaging Key trends driving growth Consumers prefer glass Taste Health / Organics Sustainability Quality Rising middle class in emerging markets #1 position in Europe #1 position in North America #1 position in Australia and New Zealand #1 positions in Brazil and Andean reg
Slide 4: Creating shareholder value
Creating shareholder value 4 O-I’s global presence O-I’s unparalleled expertise Rising incomes in emerging mkts Consumer preference for glass Drivers Key value drivers • Structural cost reductions • Brand-building product innovation • Long-term investments in technology Improving and consistent metr
Slide 5: Reducing our cost structure
Reducing our cost structure 5 2015 Target 2015 Target Progress thru 2Q14 Progress thru 2Q14 Progress to date 7 furnace shutdowns 9 line upgrades On-going actions Line upgrades – Southern Europe Throughput enhancement Improved heat/energy recapture European asset optimization Global structural cost r
Slide 6: Investing in innovation for long-term value
Investing in innovation for long-term value 6 Vortex™ is the glass packaging innovation platform that revolutionizes the highly sensory experience of drinking aimed at impacting taste, temperature and style. Innovation center / pilot plant Unique in glass container industry 1/10th size of typical O-
Slide 7: Executing on key initiatives in each region
Executing on key initiatives in each region 7 Europe Continue asset optimization program Increase customer intimacy Asia Pacific Further restructure in Australia Drive growth in Southeast Asia North America Continue progress on automation Improve operational performance South America Capture emergin
Slide 8: 3Q14 Business Outlook
3Q14 Business Outlook 8 3Q14 vs. 3Q13 Comments Segment Profit Europe Sales volume modestly lower than prior year* Asset optimization yields continuing benefits North America Sales volume down low single digits* Poor operating performance* South America Volume up mid-single digits, driven by Andean c
Slide 9: Improving financial metrics
Improving financial metrics 9 EPS exclusive of items management considers not representative of ongoing operations. A description of all items that management considers not representative of ongoing operations, including discontinued operations, and a reconciliation of the GAAP to non-GAAP earnings
Slide 10: Shifting to accretive share repurchases
Shifting to accretive share repurchases 10 Initiating next phase of capital allocation Strong outlook for free cash flow Leverage ratio declining to low end of target range Decelerate deleveraging efforts Substantially increase capital for share buybacks Anticipate at least $100M in share buybacks i
Slide 11: Q&A
Q&A 11
Slide 12: Appendix
Appendix 12
Slide 13: Reconciliation of GAAP to Non-GAAP Items
Reconciliation of GAAP to Non-GAAP Items 13 (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 full year ending December 31, 2011, diluted earnings per share of common stock
Slide 14: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow 14 2013 $ Millions Year ended December 31 2013 2012 2011 Cash provided by continuing operating activities $700 $ 580 $ 505 Additions to property, plant and equipment - continuing (361) (290) (285) Free cash flow $339 $ 290 $ 220
Slide 15: Leverage Ratio Reconciliations of Adjusted EBITDA and Net Debt
Leverage Ratio Reconciliations of Adjusted EBITDA and Net Debt 15 $ 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
Owens Illinois — Credit Suisse Basic Materials Conference 2014 on 6ix