O-i Glass, Inc. · NYSE:OI
O-i Glass — BofA Securities 2023 Global Agriculture & Materials Conference
21 slides from O-i Glass's conference presentation, Mar 2, 2023
Slide 1: 1Q23 Capital Markets Presentation
1Q23 CAPITAL MARKETS PRESENTATION MARCH 2023
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: At a Glance
AT A G L ANCE DIVERSE ATTRACTIVE PRODUCT PORTFOLIO CUSTOMER BASE 33% beer 21% wine 17% food 15% NAB 14% spirits 6,000+ direct customers GLASS IS THE MOST MAGMA SUSTAINABLE PACKAGE reimagines glass making to all natural, endlessly recyclable, support customer aspirations NEVER trash and enable profit
Slide 4: Attractive Investment Opportunity
AT T R AC TIV E I N V E S T ME N T O P P O RTUN ITY SUSTAINABILITY Glass is Set to Win in the BREAKTHROUGH New Green Economy INNOVATION MAGMA Creates a New PROFITABLE Paradigm for Glass GROWTH Strongest Glass Fundamentals in 20+ yrs AGILE EXECUTION Bold Transformation and Delivering on Commitments I
Slide 5: Consistent Earnings and Balance Sheet Improvement
IMPROVE PERFORMANCE AND REDUCE RISK Consistent Earnings and Balance Sheet Improvement HIGHER EARNINGS LOWER FINANCIAL LEVERAGE 1 3.50 6.0 5.5 3.00 > $2.50 5.0 4.4 2.50 2.30 4.0 Financial Leverage 1 2.00 3.4 1.83 < 3.0 aEPS 3.0 2.5 1.50 1.22 2.0 1.00 2.5 1.0 0.50 0.00 0.0 2020 2021 2022 2023 Guidance
Slide 6: Bold Transformation and Delivering on Commitments
AG I L E E X E C UT I ON INCREASE SUPPLY CHAIN EFFICIENCY BOLD TRANSFORMATION AND ENABLE A MORE FLEXIBLE, SCALABLE AND DELIVERING ON COMMITMENTS SUSTAINABLE PRODUCTION CAPABILITY INCREASE COST COMPETITIVENESS OPTIMIZE BUSINESS PORTFOLIO AND STRUCTURE BUILD A SIMPLE, AGILE AND EFFECTIVE ORGANIZATION
Slide 7: Solid Demand Projected Amid Capacity Constraints
P RO F I TABLE G ROW T H Solid Demand Projected Amid Capacity Constraints O-I VOLUME GROWTH PROJECTED GLASS GROWTH 2023-2025 (IN TONS, ADJUSTED FOR DIVESTITURES) (SOURCE: EUROMONITOR PER UNIT CONSUMPTION PROJECTIONS) Strong demand projected. 8% New capacity will enable higher 5.0% shipments while be
Slide 8: Creates a New Paradigm for Glass
B R E AK T HRO UGH I N N OVATION EXPAND RIGHT TO WIN WITH RAPID COLOR, SHAPE & SIZE CHANGES GROW WITH THE MARKET WITH SCALABLE CAPACITY ENTER NEW MARKETS WITH SCALABILITY & LOWER CAPITAL COST EFFICIENT WITH MORE VARIABLE COST STRUCTURE CREATES A NEW AGILE THROUGH ECONOMIC CYCLES & SEASONALITY PARADI
Slide 9: First MAGMA Greenfield Commissioning Mid-2024
F I R S T M AG M A G R E E N F IE LD C O M M I SS IO NING M I D -20 24 First MAGMA Greenfield in Bowling Green, KY Will be a Showcase Plant MAGMA MELTER CUSTOMER ENGAGEMENT CENTER Small, Incremental Growth, Flexibility, Sustainability Customer Intimacy, Collaborative Innovation MODULAR BATCH SYSTEM
Slide 10: Sustainability: Solid Progress Towards Rigorous ESG Goals
SUSTAINABILITY Solid Progress Towards Rigorous ESG Goals OUR SBTi target to reduce GHG Reach 40% renewable electricity Increase recycled content COMMITMENT emissions 25% by 2030 use by 2030 and reduce total (interim target of 10% by 2025) to 50% average by 2030 energy consumption by 9% OUR Global re
Slide 11: 2023 Strategic Objectives
2023 STRATEGIC OBJECTIVES Ambitious and Achievable Objectives to Advance O-I’s Strategy in 2023 PRIORITIES 2023 KEY OBJECTIVES ≥ $150M net price realization (excluding margin expansion initiative benefits) MARGIN EXPANSION ≥ $100M margin expansion initiative benefits (reported in net price and o
Slide 12: Business Outlook
BUS I N E S S O UT L O O K Constructive Business Outlook and Expect Continued Progress in 2023 MOST RECENT 2023 GUIDANCE (as of 1/31/23) SALES VOLUME ADJUSTED NET DEBT GROWTH EBITDA CASH FLOW LEVERAGE (TONS) ($M) aEPS ($M) RATIO 1Q23 ▼ LSD n/a $0.80 - $0.85 n/a n/a (vs +6.4% PY Comp) Expect to Excee
Slide 13: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES #1 #2 #3 IMPROVE FUND RETURN CAPITAL PROFITABLE VALUE TO STRUCTURE GROWTH SHAREHOLDERS ▲ < 3.0x leverage (2023) ▲ $630M expansion program (2022-2024) ▲ Anti-dilutive repurchases ▲ Glide path to < 2.5x leverage ▲ Continued portfolio optimization ▲ Evaluate additional rep
Slide 14: Conclusion: Compelling Investment Thesis
CONCLUSION COMPELLING INVESTMENT THESIS ▲ IMPROVING PERFORMANCE DRIVES CONSTRUCTIVE 2023 OUTLOOK ▲ CLEAR STRATEGY TO CREATE VALUE AND REDEPLOY CAPITAL ▲ DELIVERING ON KEY TRANSFORMATION INITIATIVES ▲ RESILIENCE AMID ELEVATED MACRO VOLATILITY ▲ O-I REPRESENTS AN ATTRACTIVE INVESTMENT OPPORTUNITY 14
Slide 15: Appendix
APPENDIX
Slide 16: ESG Goals and Performance
ESG GOALS AND PERFORMANCE SBTi target Reach 40% Increase all to reduce renewable Align our Make a 50% Increase aspects of Make glass GHG electricity use Reduce our supply chain improvement recycled Drive towards a Reinvent and diversity, recycling OUR emissions 25% by 2030 and global water with our
Slide 17: Segment FX Impact on Earnings
S E G M E N T F X I M PACT O N E AR N I N GS APPROXIMATE ANNUAL IMPACT ON FX RATES AT KEY POINTS EPS FROM 10% FX CHANGE Jan 30, AVG AVG AVG AVG 2023 4Q22 4Q21 FY22 FY21 EUR 0.25 EUR 1.09 1.03 1.14 1.05 1.18 MXN 0.07 MXN 18.77 19.49 20.85 20.03 20.39 BRL 0.03 BRL 5.12 5.28 5.61 5.14 5.40 COP 0.01 COP
Slide 18: Non-GAAP Financial Measures
N O N - GAAP F I N AN CIAL M E AS UR E S 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
Slide 19: Reconciliation to Adjusted Earnings
R E C O N C I L I AT I O N TO A D J U S T E D E A R N I N G S 19
Slide 20: Reconciliation to Total Financial Leverage
R E C O N C I L I AT I O N TO TOTA L F I N A N C I A L L E V E R AG E For all periods after the year ending December 31, 2022, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, total debt less cash plus unfunded pension liability plus the asbesto
Slide 21: Additional Reconciliations
AD D I TIO NAL R E C O NCILIATIO NS RECONCILIATION TO ADJUSTED EBITDA For all periods after the year ending December 31, 2022, 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
O-I Glass — BofA Securities 2023 Global Agriculture & Materials Conference on 6ix