O-i Glass, Inc. · NYSE:OI
O-i Glass — UBS Global Materials Conference 2024
24 slides from O-i Glass's conference presentation, Sep 4, 2024
Slide 1: Capital Markets Presentation
CAPITAL MARKETS PRESENTATION SEPTEMBER 4, 2024
Slide 2: Presenters
PRESENTERS Gordon Hardie John Haudrich President and CEO SVP and CFO 2
Slide 3: Safe Harbor Comments
SAFE HARBOR COMMENTS 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 Securities Act of 1933, as amended.
Slide 4: O-I at a Glance
O-I AT A GLANCE GLOBAL LEADER IN GLASS PACKAGING FOCUSED ON WINNING WITH CUSTOMERS, IMPROVING ECONOMIC PROFIT, AND INCREASING THE VALUE OF THE COMPANY 36 glass containers manufactured in 2023 6,000 Sustainability Leadership ~23,000 employees #1 BILLION customers across a broad product portfolio is d
Slide 5: O-I Serves the Brands You Trust and Love
O-I SERVES THE BRANDS YOU TRUST AND LOVE LEADING CUSTOMER RELATIONSHIPS, DESIGN CAPABILITIES AND SERVICE LEVELS 5
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW PRIVILEGED FOOTPRINT WITH DEEP TECHNICAL AND MANUFACTURING CAPABILITIES 2023 AMERICAS EU Category Mix Net Sales ($B) $3.9 $3.1 $7.1 Beer 32% # Plants 32 34 68 # Countries 7 10 19 Wine 19% Long Term Contracts 75% 35% 55% Food 17% Long Term CAGR1 -1% to +2% 0% to 1% 0% to 1% NAB 16%
Slide 7: Competitive Glass Offering Leverages Mega Trends
COMPETITIVE GLASS OFFERING LEVERAGES MEGA TRENDS Increased demand Health and CPG innovation Glass is the most for premium wellness favors and diversification sustainable rigid beverages glass over plastics of product portfolios packaging Glass Metal Plastics 7 Favorable Neutral Unfavorable
Slide 8: Value Creation Roadmap
VALUE CREATION ROADMAP EARNINGS IMPROVEMENT AND VALUE CREATION OPPORTUNITY REVERSE TREND IN SUPPORTED MORE BY SELF HELP RATHER THAN SIGNIFICANT ECONOMIC PROFIT MARKET RECOVERY $500 8% 7% $400 6% ECONOMIC PROFIT MINDSET $300 5% CAPTURING MORE OF THE ECONOMIC PROFIT IN THE PACKAGING VALUE CHAIN 4% $20
Slide 9: Horizon 1: Fit to Win
HORIZON 1: FIT TO WIN FIT TO WIN WILL DRIVE A STEP CHANGE IN O-I’S COMPETITIVE POSITION PILLARS ACTIONS AND NEXT STEPS ENHANCE COMPETITIVENESS • Decentralize business model to align accountability • 24% capacity temporarily curtailed QTD 3Q24 due to slow demand / reduce IDS • End-to-end supply chain
Slide 10: Monetizing MAGMA
MONETIZING MAGMA MAGMA CONTINUES TO ADVANCE WITH INCREASED FOCUS ON ACCELERATING ECONOMIC PROFIT GEN 2 MAGMA GREENFIELD (Bowling Green, KY) ► MAGMA CORE TECHNOLOGY WORKS ► RAMPING UP MAGMA GEN 2 GREENFIELD IN BOWLING GREEN • Finalizing cold commissioning activities • Began producing glass in August
Slide 11: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION FCF PROFILE (PRIOR TO ASBESTOS PAYMENTS) 2013 - 2022 More than $1.5B was spent on 2023 asbestos-related GET FIT TO WIN payments 48% 52% IMPROVE CAPITAL STRUCTURE 100% Asbestos-related payments Unencumbered cash Unencumbered cash RETURN VALUE TO SHAREHOLDERS FOLLOWING F
Slide 12: Current Market Update
CURRENT MARKET UPDATE O-I IS NOT UPDATING GUIDANCE DEMAND REMAINS SLUGGISH BUT CONTINUE TO EXPECT MODEST SALES VOLUME GROWTH IN 3Q24 GIVEN EASIER PY COMPS REFINING EXPECTED MULTI-YEAR COMPETITIVENESS PROGRAM, MORE DETAILS ON 3Q24 EARNINGS CALL EXPECT PERFORMANCE WILL REBOUND AS O-I IMPLEMENTS THE FI
Slide 13: Conclusion
CONCLUSION O-I IS THE GLOBAL LEADER IN GLASS PACKAGING, SERVING THE STABLE 1 AND GROWING FOOD AND BEVERAGE INDUSTRY 2 STRONG CUSTOMER RELATIONSHIPS REFLECT O-I’S SERVICE LEVEL CAPABILITIES, PRIVILEGED FOOTPRINT AND MANUFACTURING KNOW HOW KEY CATALYSTS • Execute Fit to Win Program LONG-TERM MEGA TREN
Slide 14: Appendix
APPENDIX
Slide 15: Historic Financial Performance
HISTORIC FINANCIAL PERFORMANCE SALES ($B) aEPS $6,856 $7,105 $3.09 $6,091 $6,357 $2.30 $1.83 $1.22 2020 2021 2022 2023 2020 2021 2022 2023 FCF AND CAPEX ($M) FINANCIAL LEVERAGE ~ 50% $688 Strategic$800 5.5 CapEx $700 $539 $600 4.4 $398 $500 3.5 $311 $400 2.9 $300 2.5 $282 $200 $236 $100 $146 $130 $-
Slide 16: Our Sustainability Goals
OUR SUSTAINABILITY GOALS ZERO INJURIES SUPPLY CHAIN SUSTAINABILITY As part of our journey toward zero injuries, we are Achieve sustainability balance, together, by aligning committed to a 50% improvement of our Total our supply chain with our 2030 sustainability vision Recordable Incident Rate (TRIR
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: Reconciliation to Adjusted Earnings
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 periods beyond the year ended December 31, 2023 to its most directly comparable GAAP financial measure, N
Slide 19: Reconciliation for Segment Operating Profit
RECONCILIATION FOR SEGMENT OPERATING PROFIT 19
Slide 20: Reconciliation to Net Debt and Financial Leverage Ratios
RECONCILIATION TO NET DEBT AND FINANCIAL LEVERAGE RATIOS 20
Slide 21: Reconciliation to Adjusted EBITDA
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 measure, net earnings (loss), because management canno
Slide 22: Reconciliation to Economic Profit and Economic Spread Percentage
RECONCILIATION TO ECONOMIC PROFIT AND ECONOMIC SPREAD PERCENTAGE 22
Slide 23: Free Cash Flow Profile Reconciliation
FREE CASH FLOW PROFILE (PRIOR TO ASBESTOS PAYMENTS) RECONCILIATION 23
Slide 24: Additional Reconciliation
ADDITIONAL RECONCILIATION RECONCILIATION TO FINANCIAL AND NET DEBT LEVERAGE RATIOS For the periods ending after December 31, 2023, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measures, total financial leverage ratio and net debt leverage ratio, whic