O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — FY2007 Earnings Presentation
14 slides from O-i Glass's earnings presentation, Jan 31, 2008
Slide 1: O-I Earnings Call 4th Quarter & Full Year 2007
O-I Earnings Call 4th Quarter & Full Year 2007 January 31, 2008
Slide 2: 2007 Highlights Continuing Operations (non-GAAP)
2007 Highlights Continuing Operations (non-GAAP) Fourth quarter 2007 compared with 2006 • Net sales increased by 15% to $1.96 billion • Consolidated operating profit improved by 99% to $284 million Full year 2007 compared with 2006 • 14% net sales increase – half from price/mix/volume improvement an
Slide 3: Reconciliation of GAAP to non-GAAP Items 4th Quarter 2007 and 2006
Reconciliation of GAAP to non-GAAP Items 4th Quarter 2007 and 4th Quarter 2006 Three months ended Dec. 31, $ Millions, except per share amounts Earnings EPS Earnings EPS Net earnings (loss) (18.8) $ (0.15) $ (102.8) $ (0.71) $ Less loss from discontinued operations (33.4) (0.21) (12.8) (0.08) Earnin
Slide 4: Reconciliation of GAAP to non-GAAP Items Full Year 2007 and 2006
Reconciliation of GAAP to non-GAAP Items Full Year 2007 and 2006 Twelve months ended Dec. 31, $ Millions, except per share amounts Earnings EPS Earnings EPS Net earnings (loss) 1,340.6 $ 7.99 $ (27.5) $ (0.32) $ Less gain/earnings from discontinued operations 1,041.3 6.21 (23.7) (0.15) Earnings (los
Slide 5: Net Sales Reconciliation
Net Sales Reconciliation $ Millions 4th Quarter 2007 Full Year 2007 2006 Net sales 1,699.4 $ 6,650.4 $ Sales volume (9.2) 144.7 Price and product mix 96.4 322.8 Currency translation 170.7 448.8 Total reconciling items 257.9 916.3 2007 Net sales 1,957.3 $ 7,566.7 $
Slide 6: Segment Operating Profit Reconciliation
Segment Operating Profit Reconciliation $ Millions 4th Quarter 2007 Full Year 2007 2006 Reportable Segment Operating Profit 156.5 $ 734.8 $ Sales volume (6.5) 34.4 Price and product mix 95.0 323.0 Productivity and production volume 5.0 80.0 Manufacturing inflation net of cost savings (51.4) (152.0)
Slide 7: EPS Reconciliation 4th Quarter and Full Year 2006 to 2007
EPS Reconciliation 4th Quarter and Full Year 2006 to 2007 4Q Year 2007 2007 0.19 $ 0.98 $ 2007 Reconciling items: Sales volume (0.03) 0.13 Price and product mix 0.42 1.21 Productivity and production volume 0.02 0.30 Manufacturing inflation net of cost savings (0.23) (0.57) Warehouse, delivery and ot
Slide 8: Capital Spending vs. Depreciation & Amortization
$ millions 2 Assets capitalized under financing arrangements - $25.3 million in 2006 & $27.0 million in 2007 1 Capital spending and D&A from continuing operations only 0 50 100 150 200 250 300 350 400 450 500 2003 2004 2005 2006 2007 Capex 1 D&A 1 Capital lease 2 Capital Spending vs. Depreciation &
Slide 9: Management Working Capital
Management Working Capital 16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% 4Q 1Q 2Q 3Q 4Q 2006 2007 Working Capital as % of Last Twelve Months Sales (1) Management working capital = accounts receivable, plus inventory and repair parts, less accounts payable. (2) The working capital value
Slide 10: Asbestos Update
Asbestos Update 9,000 7,000 9,000 25,000 15,000 - 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 27,000 30,000 33,000 36,000 39,000 2003 2004 2005 2006 2007 Total Cases Filed New Filings Pending Cases Pending Cases 14,000 19,000 32,000 29,000 35,000 - 3,000 6,000 9,000 12,000 15,000 18,000 21,
Slide 11: Asbestos Update: Limited & Declining Liability
Asbestos Update 199 190 171 163 347 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2003 2004 2005 2006 2007 $ millions Gross Payments Limited & Declining Liability • High-temperature pipe and block insulation used in industrial applications • Exited the business in 1958 – almost 50 years ago • Less
Slide 12: Free Cash Flow
Free Cash Flow 1 Excludes $13.2 million in 4Q 2006 and $25.3 million in full year 2006 of assets recorded under capital leases. Excludes $3.0 million in 4Q 2007 and $27.0 million in full year 2007 of assets recorded under capital leases. 2 Management defines Free Cash Flow as cash provided by contin
Slide 13: Debt Maturity Schedule
Debt Maturity Schedule $billions Secured Notes $ 0.0 Unsecured Notes 2.4 Bank Debt 0.8 Securitization 0.4 Others 0.1 Total $ 3.7 $billions Secured Notes $ 1.9 Unsecured Notes 2.2 Bank Debt 0.9 Securitization 0.3 Others 0.2 Total $ 5.5 2006 ($MM) 2007 ($MM) 0 100 200 300 400 500 600 700 800 900 1000
Slide 14: Summary Financials
Summary Financials $ Millions except EPS 2007 As Originally Reported Reclassified* Continuing Net sales 7,422.0 $ 6,650.4 $ 7,566.7 $ Consolidated operating profit 774.6 658.2 1,028.2 Earnings (loss) from continuing operations (27.5) (3.8) 299.3 Earnings (loss) from discontinued operations - (23.7)