O-i Glass, Inc. · NYSE:OI
O-i Glass — Investor Presentation (March 2020)
15 slides from O-i Glass's investor presentation, Mar 11, 2020
Slide 1: 1Q20 Investor Presentation
Ci 1Q20 INVESTOR PRESENTATION
Slide 2: Safe Harbor Comments
2 SAFE HARBOR COMMENTS ▶ Forward - Looking Statements ▶ This press release contains “forward - looking” statements related to O - I Glass, Inc. (“O - I Glass” or the “company”) within the m eaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A
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 ~27,500 employees worldwide 78 factories 23 countries LEADING GLOBAL glass container supplier 71% OF NET SALES from non - U
Slide 4: Executing the O-I Glass Investment Thesis
4 EXECUTING O - I GLASS INVESTMENT THESIS STRONG MARKET POSITION ◉ Leading global glass producer ◉ Strategic Blue Chip customer base ◉ Glass set to win in Green Economy OPTIMIZE STRUCTURE ◉ Execute strategic portfolio review ◉ Complete tactical divestitures ◉ Finalize asbestos resolution TURNAROUND
Slide 5: Strong Market Position: Global Presence Spanning 23 Countries
STRONG MARKET POSITION GLOBAL PRESENCE SPANNING 23 COUNTRIES *numbers do not include O - I joint ventures AMERICAS 36 Plants & 78 Furnaces 17,000 Employees 42% 17% 17% 8% 13% 3% Beer Food NAB Wine Spirits Other EUROPE 34 Plants & 58 Furnaces 8,100 Employees ASIA PACIFIC 8 Plants & 15 Furnaces 2,500
Slide 6: Stable to Improving Organic Sales Volumes Across Network
-3% -2% -1% 0% 1% 2% 3% 2013 2014 2015 2016 2017 2018 2019 Total O-I Legacy Total O-I Network Total O - I Organic Volume STRONG MARKET POSITION STABLE TO IMPROVING ORGANIC SALES VOLUMES ACROSS O - I NETWORK 6 1 Based on Euromonitor for appropriate markets 2 Legacy denotes consolidated operations. 3
Slide 7: Glass: The World's Most Sustainable Package
STRONG MARKET POSITION GLASS: THE WORLD’S MOST SUSTAINABLE PACKAGE 7 In a world where sustainability is more important than ever, we are proud to make an inherently sustainable product. ● Made from natural, readily available raw materials ● 100 percent endlessly recyclable into new food - safe glass
Slide 8: Turnaround Initiatives Improving Operating Performance
TURNAROUND INITIATIVES IMPROVING OPERATING PERFORMANCE TARGET $35M – $50M NET BENEFITS IN 2020 FROM TURNAROUND INITIATIVES $150M+ LONG - TERM RUN RATE NET BENEFIT (3 YEAR PROCESS) 8 REVENUE AND MIX OPTIMIZATION • Improve price and mix across select geographies, customers and categories • Secure the
Slide 9: Revolutionize Glass: MAGMA Reinvents How Glass Is Made
REVOLUTIONIZE GLASS MAGMA REINVENTS HOW GLASS IS MADE ● New capacity at lower capital commitment and intensity ● Total cost of ownership below legacy ● Increased scalability ● Rapid new capacity deployment and asset portability ● Production flexibility to support diversified offerings ● Competitivel
Slide 10: Optimize Structure
OPTIMIZE STRUCTURE 10 De - risk Balance Sheet ● Deleveraging is O - I’s top priority until leverage approaches 3x ● Tactical divestitures program underway targeting $400M - 500M ● Strategic portfolio review underway ◉ ANZ resolution targeted by mid - 2020 Fund Strategy ● CapEx spend on limited strat
Slide 11: Financial Appendix
FINANCIAL APPENDIX
Slide 12: 2020 Segment Review
2020 SEGMENT REVIEW 12 AMERICAS EUROPE ASIA PACIFIC Results ▲ Higher Reported Results ► Minimal impact from FX ▼ Lower Reported Results ▼ Headwind from temporary items ► Minimal impact from FX ▲ Higher results adjusted for temp items ▲ Higher Reported Results ► Minimal impact from FX Net Price ▲ Con
Slide 13: FX Impact on Earnings
13 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 USED FOR FY20 GUIDANCE (JAN 31, 2020) EUR 1.10 MXN 18.8 BRL 4.25 COP 3,413 AUD 0.67
Slide 14: Non-GAAP Financial Measures
14 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 15: Reconciliation for Adjusted Free Cash Flow
15 RECONCILIATION FOR ADJUSTED FREE CASH FLOW