O-i Glass, Inc. · NYSE:OI
O-i Glass — Investor Day (September 2021)
77 slides from O-i Glass's investor day presentation, Sep 28, 2021
Slide 1: Accelerating O-I's Transformation
ACCELERATING O-I’S TRANSFORMATION 2021 INVESTOR DAY | SEPTEMBER 28, 2021
Slide 2: Welcome & Introductions
ARNAUD RANDY BURNS AUJOUANNET VP, CHIEF SVP & CHIEF SALES AND SUSTAINABILITY & MARKETING OFFICER CORPORATE AFFAIRS ANDRES LOPEZ JOHN HAUDRICH OFFICER CEO SVP & CFO VITALIANO TORNO PRESIDENT, BUSINESS WELCOME & LUDOVIC VALETTE INTRODUCTIONS VP, TECHNOLOGY OPERATIONS & ENGINEERING MARIE-LAURE CHRIS MA
Slide 3: Agenda
AG E N DA TIME (EDT) TOPIC 8:30 AM INVESTOR PRESENTATION 9:45 AM BREAK 9:55 AM Q&A 10:55 AM BREAK 11:00 AM FOCUS SESSIONS • ADVANCING ESG • ADVANCING GLASS ADVOCACY • ENABLING GROWTH AND NEW PRODUCT DEVELOPMENT 12:00PM ADJOURN 3
Slide 4: Safe Harbor Comments
S AF E H AR B O R C O M M E N T S FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking” statements related to O-I Glass, Inc. (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
Slide 5: O-I at a Glance
AT A G L A N C E DIVERSE BROAD PRODUCT PORTFOLIO CUSTOMER BASE 34% beer 19% wine 19% food 15% spirits 13% NAB 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 profitab
Slide 6: O-I Serves the Brands You Trust & Love
O - I S E RV E S T H E B R AN D S YO U T RUS T & L OV E 6 All trademarks, logos, service marks and company names are property of their respective owners.
Slide 7: Executive Summary
EXECUTIVE SUMMARY FAVORABLE ENHANCE TRANSFORMATION MAGMA MARKET VALUE
Slide 8: Accelerating Performance
AC C E LE R AT ING P E R F O RM ANCE Deliver short-term financial improvement & enable long-term profitable growth. KEY ENTERPRISE TARGETS $2.20-$2.40 $400M-$450M ~ 3.8X ~ 3.5X 1-2% $1.70-$1.75 ~ $350M Net of ~ 0.5x impact to fund Paddock 524(g) trust 0.1% 2019-2021F 2022-2024 2021F 2024 2021F 2024
Slide 9: O-I Has an Attractive Value Proposition
O - I H AS AN AT T R AC T IVE VAL UE P RO P O SIT ION MARKET, INNOVATION & ESG LEADER RESOLUTION IN THE ATTRACTIVE MAGMA OF LEGACY GLASS SEGMENT WILL UNLOCK LIABILITIES REDUCES SIGNIFICANT RISK & IMPROVES CASH GROWTH FLOW CONVERSION TRANSFORMATION IMPROVES MARGINS, EARNINGS & ROIC OPPORTUNITY FOR HI
Slide 10: Favorable Market
FAVORABLE MARKET SUMMARY FAVORABLE ENHANCE TRANSFORMATION MAGMA MARKET VALUE
Slide 11: Market Evolution
MARKET ACCELERATED WELLNESS 2017+ EVOLUTION Wellness and earth-friendly Luxury and value FAVORABLE At home living Digital and e-Commerce Glass market growth TO GLASS BRIC/EM 2000 – 2008 Growth of packaged food & beverages Returnable glass bottle systems Wine/Spirits exports POST WAR PROSPERITY Glass
Slide 12: Trends Unlock New Opportunities for Glass
TRENDS UNLOCK NEW OPPORTUNITIES FOR GLASS Current consumer preferences strongly favor important segments for glass. WELLNESS AND EARTH-FRIENDLY LUXURY AND VALUE AT HOME LIVING DIGITAL MEGA -TRENDS BETTER ESG CATEGORY ATTAINABLE AFFORDABLE INDULGENT EXPERIENTIAL ENTERTAIN NEXTGEN FOR YOU BLURRING LUX
Slide 13: Consumers Have a Favorable View on Glass
C O N S UM E RS H AV E A FAVO R ABLE V I E W O N G L AS S Glass is recognized as healthy, premium and earth-friendly. CONSUMERS VIEW GLASS AS HIGHLY SUSTAINABLE CONSUMER PERCEPTION RATING PERCEPTION OF FOOD & BEVERAGE CONTAINERS AS EXTREMELY/VERY ECO-FRIENDLY 7 60 HIGH 6 50 5 40 4 30 3 20 2 10 LOW 1
Slide 14: Trends Echo Glass Is More Relevant Than Ever
TRENDS ECHO GLASS IS MORE RELEVANT THAN EVER WELLNESS POSITIVE Glass is all natural and inert – it will not contaminate the product content and is the only package “generally recognized as safe” by the U.S. Food and Drug Administration PREMIUM & DIFFERENTIATED The appearance of a glass container alo
Slide 15: Glass Is an Attractive Market
G L AS S I S AN AT T R AC TIV E M AR K E T While flat during the austerity era, glass is expected to grow 1.6% CAGR as trends accelerate. PROJECTED PACKAGING GROWTH NORTH AMERICAN PACKAGING LANES (2022-2024) 4.5% HIGH GLASS AFFINITY CATEGORIES GLASS VOLUME GROWTH ALL PACKAGING VOLUME GROWTH ~ 77% of
Slide 16: O-I Is Addressing the Issues That Limited Past Growth
O-I IS ADDRESSING THE ISSUES THAT LIMITED PAST GROWTH The combination of market trends & O-I actions will enable growth. HISTORIC LIMITATIONS HOW THIS WILL CHANGE MARKET COST OVER BRANDING ACCELERATED WELLNESS MANUFACTURING MINDSET ADVANCED COMMERCIAL APPROACH HIGH FIXED COSTS EFFECTIVE AND EFFICIEN
Slide 17: O-I's Commercial Pipeline & Principles
O - I ’ S C O M M E RCIAL P I P E LINE & P R I NCIPLE S O-I has a clear set of principles to evaluate pipeline opportunities. 1.7MT HIGH IMPROV E / ALIGNMENT TO O-I’S CURRENT STRENGTHS COMMERC IAL PIPELINE GROW PROTEC T EXPAND LEADING FRANCHISE POSITION in high growth & IDENTIFY SUPPORT market in va
Slide 18: Yes! to Profitable Growth
Y E S ! TO P RO F ITABLE G ROW T H NORTH AMERICA O-I’S COMMERCIAL PRIORITIES B Spirits, Premium Beer UK O-I HAS PRIORIT IZED UP TO 1 MILLION C Food, Fragmented Categories B Spirits TONS OF EXPANSION OPPORT UNIT IES TARGET EXPANSION OPPORTUNITIES A EXPAND LEADING FRANCHISE POSITION in high growth & v
Slide 19: Transforming O-I
TRANSFORMING O-I FAVORABLE ENHANCE TRANSFORMATION MAGMA MARKET VALUE
Slide 20: O-I Required a Deep Transformation
T R AN S F O RMAT ION J O UR N E Y EFFICIENT O-I REQUIRED SUPPLY CHAIN A DEEP TRANSFORMATION FLEXIBLE, SCALABLE & SUSTAINABLE PRODUCTION Addressing the fundamentals and creating a new paradigm for glass. COST COMPETITIVE OPERATIONS OPTIMIZE STRUCTURE SIMPLE, AGILE, EFFECTIVE & ADAPTABLE ORGANIZATION
Slide 21: Substantial Progress
S UB S TAN T IAL P RO G RE S S TRANSFORM AT IO N OBJECTIV ES PROGRESS 1. SIMPLE, AGILE, EFFECTIVE & ADAPTABLE ORGANIZATION INTEGRATED BUSINESS PLANNING ALIGNED WITH STRATEGY STREAMLINED ORGANIZATION REBUILT CRITICAL CAPABILITIES – COMMERCIAL, R&D, ESG STRONG COMMERCIAL PIPELINE – 1.7 MT 2. OPTIMIZE
Slide 22: Benefits of O-I's Transformation
Y E S ! TO AN AG I L E & R E S I L IE NT C O M PAN Y BENEFITS OF O-I’S TRANSFORMATION PROFITABLE ORGANIC GROWTH HIGHER EARNINGS & CASH FLOW IMPROVED MARGINS & RETURNS SUSTAINABLE BUSINESS 22
Slide 23: MAGMA
MAGMA FAVORABLE ENHANCE TRANSFORMATION MAGMA MARKET VALUE
Slide 24: MAGMA Reinvents Glass Making
MAGMA EXPAND RIGHT TO WIN WITH RAPID COLOR, SHAPE & SIZE CHANGES REINVENTS GROW WITH THE MARKET WITH SCALABLE CAPACITY GLASS MAKING AND ENHANCES ENTER NEW MARKETS WITH SCALABILITY & LOWER CAPITAL O-I’S COST EFFICIENT WITH MORE VARIABLE COST STRUCTURE CAPABILITIES AGILE THROUGH ECONOMIC CYCLES & SEAS
Slide 25: MAGMA Compared to Heritage Technology
MAGMA COMPARED TO HERITAGE TECHNOLOGY HERITAGE MAGMA REQUIRES DEDICATED FITS WITHIN INDUSTRIAL GLASS FACTORY WAREHOUSE ~ 1⁄3 height ~ 1⁄2 length REQUIRES MULTI-LINE ENABLES SINGLE-LINE MASS PRODUCTION NIMBLE SUPPLY CHAIN 25 Illustrative representations of typical Heritage production lines & MAGMA Ge
Slide 26: MAGMA Development Progressing Very Well
C L ICK TO MAGMA DEVELOPMENT E D I T M AS T E RPROGRESSING T I T LE S T Y L E VERY WELL MAGMA is being developed across three generations with specific design principles. DESIGN PRINC IPLES DEVELOPM ENT • DIGITALIZE 1 INVENT GEN 3 2025+ EXPANSION • PREDICTIVE PROCESS • ULTRA LIGHT WEIGHT 2 SIMPLIFY
Slide 27: MAGMA's Potential Benefits
M AG M A’ S P OT E N T IAL B E N E F I TS O-I expects MAGMA will significantly enhance O-I’s capabilities and competitive position. OBJECT IV ES MAGMA GEN 3 1 IMPROV EM ENT VS HERITAGE (2025+ ) 1. FLEXIBLE Achieve attractive economics at 15% lower utilization rate 2. SCALABLE New melter reduces capa
Slide 28: MAGMA in Action
M AG M A I N AC T I O N 28 Illustrative pictures of the MAGMA system in Holzminden, Germany
Slide 29: MAGMA to Improve Sustainability
M AG M A TO I M P ROV E S US TAI N ABILITY IMPROVING SUSTAINABILITY POTENTIAL CARBON IMPACT OF PRODUCT AND PROCESS OF MAGMA VS. HERITAGE SUSTAINABILITY OF GLASS CONTAINERS ALL EARTH & 100% REUSABLE & NEVER LIGHT Carbon impact (CO2 /bottle) NATURAL OCEAN RECYCLABLE CIRCULAR WASTE WEIGHT & INERT FRIEN
Slide 30: Closing the Cost Gap & Improving Returns
CLOSING THE COST GAP & IMPROVING RETURNS MAGMA can substantially close the price gap with alternative substrates and boost returns. COST COMPARISON EXPANSION HURDLE RATES (IRR) Say “YES” to FULLY LOADED COST PER UNIT 20% + more growth opportunities 15% + IRR % 10% + Heritage MAGMA Gen 3 PET Aluminum
Slide 31: Improving O-I's Right to Win
I M P ROVING O - I ’ S R I G HT TO W I N MAGMA expands O-I’s right to win in its addressable market. HOW WE WILL WIN LOCAL • Faster speed to market • Faster capital deployment for growth EXPANSION OF O-I’S • Shorter product development “RIGHT TO WIN” cycle & launch O-I FOOTPRINT • Logistics improvem
Slide 32: MAGMA Enables Sustainable Growth
MAGMA ENABLES SUSTAINABLE GROWTH MAGMA will enable above market average growth long-term. ENABLING SUSTAINABLE PROFITABLE GROWTH 4% MAGMA GEN 3 > 20% IRR 2% – 3% 3% MAGMA GEN 1/2 >15% IRR (CAGR%) HERITAGE 1% – 2% 2% >10% IRR 1.1% 1% 0.1% 0% 2 O-I, As Reported 1 O-I, w/ Strategic JVs 1 O-I 2022-2024
Slide 33: Yes! to a New Paradigm for Glass
MAGMA IS A UNIQUE COMPETITIVE EDGE: MAGMA IS AN O-I INNOVATION – >100 PATENTS/APPLICATIONS WORLDWIDE MAGMA UNIQUELY ALIGNS O-I TO YES! TO A NEW EVOLVING MARKET REQUIREMENTS PARADIGM FOR MAGMA IS MORE COST EFFICIENT WITH LOWER CAPITAL INTENSITY SO O-I CAN GLASS SAY ‘YES’ TO PROFITABLE GROWTH MAGMA CA
Slide 34: Enhance Value
ENHANCE VALUE FAVORABLE ENHANCE TRANSFORMATION MAGMA MARKET VALUE
Slide 35: Building the Path to Yes! Enhance Stakeholder Value
BUILDING THE PATH TO YES! ENHANCE STAKEHOLDER VALUE FAVORABLE ENHANCE TRANSFORMATION MAGMA MARKET VALUE YES! TO YES! TO YES! TO YES! TO PROFITABLE GROWTH AN AGILE & RESILIENT COMPANY A NEW PARADIGM FOR GLASS ENHANCE VALUE Mega trends favor glass Simple, agile, effective, adaptable Flexible Profitabl
Slide 36: Driver for Value Creation
O-I HAS A CLEAR PLAN TO INCREASE VALUE O-I’s plan will unfold over two horizons. HORIZON 1 (pre Gen 3) HORIZON 2 (post Gen 3) • Accelerate performance • Fully leverage renewed business capabilities • Complete MAGMA development • Accelerate MAGMA deployment DRIVER FOR VALUE CREATION • Initiate MAGMA
Slide 37: Horizon 1: O-I's Business Plan
HORIZON 1: O-I’S BUSINESS PLAN ACCELERATE BASE PERFORMANCE & INITIATE MAGMA DEPLOYMENT MARGIN PROFITABLE EXPAND RESOLVE COMPLETE ADVANCE EXPANSION GROWTH WITH PORTFOLIO LEGACY MAGMA ESG & GLASS INITIATIVES MAGMA OPTIMIZATION LIABILITIES DEVELOPMENT ADVOCACY 37
Slide 38: Expanding in Premium Markets
1 % – 2 % C AG R P R O F I TA B L E VO L U M E G R OW T H 1 2 0 2 2 - 2 0 2 4 CAN Premium Beer UK Spirits (1 Line Extension) (up to 2 MAGMA Lines) EXPAND I NG IN PREMIUM MARKETS US Spirits ACROSS PREMIUM CATEGORIES (up to 3 MAGMA lines) WITH PREMIUM TECHNOLOGY COLOMBIA Beer, NAB Investing up to $680
Slide 39: Expand Portfolio Optimization
EXPAND PORTFOLIO OPTIMIZATION Expand portfolio optimization to $1.5B to fund MAGMA expansion and improve ROIC. PORTFOLIO OPTIMIZATION PROGRAM (2019-2024) $1,800 $1,600 1,500 OPTIMIZE IMPROVE BUSINESS $1,400 CAPITAL PORTFOLIO STRUCTURE $1,200 > 15% IRR ~ 0.7x lower $1,000 ($M) 810 Leverage Ratio $800
Slide 40: Capital Redeployment
CAPITAL REDEPLOYMENT Stable net capital investment as portfolio optimization helps fund MAGMA growth investment. NET CAPITAL INVESTMENT (2022-2024) $2,000 1,950 $1,800 Average annual net investment of ~ $480M for $1,600 1,450 2022-2024 compares to the $1,400 500 historic average of ~ $425M $1,200 fo
Slide 41: Resolve Legacy Liabilities
R E S O LV E L E G AC Y L I ABILITIE S Resolve legacy liabilities to shrink $1B of risk and boost FCF conversion. USE OF PRE-LIABILITY FCF 1 100% 90% O-I plans to resolve legacy 80% liabilities that have absorbed 70% nearly half of O-I’s pre-liability free cash flow in the past decade 60% • Fund the
Slide 42: Accelerating Performance
AC C E LE R AT ING P E R F O RM ANCE Deliver short-term financial improvement & enable long-term profitable growth. KEY ENTERPRISE TARGETS $2.20-$2.40 $400M-$450M ~ 3.8X Net of aFCF deducts ~ $0.25-$0.30 maintenance ~ 3.5X impact from CapEx but not 1-2% $1.70-$1.75 divestitures and ~ $350M strategic
Slide 43: Value Creation for All Stakeholders
VAL UE C R E AT IO N F O R AL L S TAK E H O LDE RS FINANCIAL TALENT & CULTURE Grow profitably: 1-2% vol. CAGR 2022-2024, 2-3% long-term T&C as the transformation engine Improve performance: $2.20 - $2.40 aEPS by 2024 Continuously improve capabilities to enhance core disciplines Increase cash flow: $
Slide 44: Conclusion: O-I Is an Attractive Investment
CONCLUSION: O-I IS AN ATTRACTIVE INVESTMENT MARKET, TRANSFORMATION MAGMA RESOLUTION OF OPPORTUNITY FOR INNOVATION & IMPROVES MARGINS, WILL UNLOCK LEGACY LIABILITIES HIGHER VALUATION ESG LEADER EARNINGS & ROIC SIGNIFICANT REDUCES RISK & THROUGH SOLID IN THE ATTRACTIVE GROWTH IMPROVES CASH EXECUTION A
Slide 45: Accelerating O-I's Transformation
ACCELERATING O-I’S TRANSFORMATION 2021 INVESTOR DAY | SEPTEMBER 28, 2021
Slide 46: Question & Answer Session
QUESTION & ANSWER SESSION | if.
Slide 47: Review of Focus Sessions
R E V I E W O F F O C US S E S S I O N S ADVANCING ESG ADVANCING ENABLING GROWTH GLASS ADVOCACY THROUGH NEW Innovation-driven plan to advance sustainability and ESG PRODUCT Trends & consumers favor glass DEVELOPMENT Glass already has more of what we need tomorrow Rebalancing the dialogue Glass is un
Slide 48: Accelerating O-I's Transformation
ACCELERATING O-I’S TRANSFORMATION 2021 INVESTOR DAY | SEPTEMBER 28, 2021
Slide 49: Focus Session Introductions
FOCUS SESSION INTRODUCTIONS RANDY BURNS MARIE-LAURE SUSSET ASAD HAMID VP, CHIEF SUSTAINABILITY DIRECTOR, INTEGRATED VP, GLOBAL & CORPORATE AFFAIRS MARKETING MARKETING & OFFICER COMMUNICATIONS INNOVATION JOHN HAUDRICH ARNAUD AUJOUANNET CHRIS MANUEL SVP & CFO SVP & CHIEF SALES AND VP, INVESTOR MARKETI
Slide 50: Advancing ESG
FOCUS SESSION #1 ADVANCING ESG “We will achieve balance, together, by transforming what we do.”
Slide 51: 51
51
Slide 52: Sustainability Goals
S US TAI N AB ILIT Y G OAL S Increase recycled content to 50% Reduce the amount of natural average by 2030. O-I is taking a resources used and reduce the We are committed to reducing tailored approach to increase generation of waste by reuse our global water usage 25% by recycled content rates acros
Slide 53: Innovating Every Part of Our Process for Sustainability
INNOVATING EVERY PART OF OUR PROCESS FOR SUSTAINABILITY TSC TOTAL ENERGY- RELATED PROJECTS G.O.A.T. PROGRESS 129 13 FURNACES ALREADY OUTFITTED 36 FURNACES EARMARKED PROJECTS IN 2017 FOR DEPLOYMENT BETWEEN 2022 & 2030 261 PROJECTS IN 2018 SCOPE 1 & 2 EMISSIONS 480 PROJECTS IN 2019 50% RECYCLED GLASS
Slide 54: A Circular Economy Success
GLASS: SUSTAINABILITY ATTRIBUTES OTHERS MAY NEVER HAVE A CIRCULAR ECONOMY SUCCESS A Glass Bottle for SICILY, from SICILY PRODUCED IN SICILY at O-I Marsala, the only MADE FROM plant rooted in Sicily Very high rate of recycled glass (90%), collected UNIQUELY IN SICILY Locally sourced raw materials Sim
Slide 55: Make Glass Recycling Available in 100% of Our Locations
C L ICK TO SOCIAL ENGAGEMENT E D I T M AS T EWITH R T I T LE ENVIRONMENTAL STYLE IMPACT MAKE GLASS RECYCLING AVAILABLE IN 100% OF OUR LOCATIONS We see tremendous opportunity to positively impact the planet and communities where we operate. We will collaborate with customers, NGOs, suppliers and loca
Slide 56: Advancing ESG Q&A
FOCUS SESSION #1 ADVANCING ESG “We will achieve balance, together, by transforming what we do.” Q&A
Slide 57: Advancing Glass Advocacy
FOCUS SESSION #2 ADVANCING GLASS ADVOCACY
Slide 58: Igniting the Relevance of Glass
IGNITING THE RELEVANCE OF GLASS GLASS ADVOCAC Y SETS THE STAGE FOR INCREM ENTAL VOLUME MORE BRANDS MORE CONSUMERS PACKAGING IN GLASS CHOOSING GLASS 58
Slide 59: Through a Disruptive Approach
T H RO UG H A D I S RUPT IVE AP P ROACH TRADIT IONAL OUR CURRENT METHOD OLOGY F I N D I N G T H E M O S T E N G AG I N G , R E L E VA N T A N D I M PAC T F U L WAY TO R A I S E AWA R E N E S S O N T H E B E N E F I T S O F G L A S S SINGLE-MINDED MESSAGE ELEVATE THE CONSUMER SUSTAINABILITY BETTER FO
Slide 60: To Drive Impact in Twelve Months
TO D R I VE I M PACT IN TWELVE MONTHS INCREASED RELEVANCE. 1.1B IMPRESSIONS IMPROVED 93M ON AVERAGE ENGAGEMENT. AMERICANS REACHED 8.5x HIGHER IMPACT. 6PT LIFT IN PURCHASE INTENT 6X HIGHER THAN PLATFORM BENCHMARKS 2.4PT DIRECTIONAL LIFT ON IN-STORE SALES #TEAMGLASS 60
Slide 61: Advancing Glass Advocacy Q&A
FOCUS SESSION #2 ADVANCING GLASS ADVOCACY Q&A
Slide 62: Enabling Growth & New Product Development
FOCUS SESSION #3 ENABLING GROWTH & NEW PRODUCT DEVELOPMENT
Slide 63: Brand Building at the Core of Our Innovation
BRAND BUILDING AT THE CORE OF OUR INNOVATION BRAND PHILOSOPHY BUILDING AT THE CORE OF OUR INNOVATION PHILOSOPHY ENGINEERING EMOTIONS ENGINEERING EMOTIONS BRAND UNIQUE INSIGHTS BRAND JOINT STORY AND GLASS AND EXPANSION VALUE PERSONALITY ATTRIBUTES EXPERTISE AND GROWTH CREATION 63
Slide 64: Glass Is More in Demand Than Ever
GLASS IS MORE IN DEMAND THAN EVER PREMIUM Outperforms in highest margin, most attractive tiers Price Index: RTD Coffee 120 Sparkling Water 180 RETAIL PRODUCTIVITY Higher velocities and productivity per point of distribution Velocity Index: RTD Coffee 160 Sparkling Water 650 SHARE OF PROFIT POOL Unlo
Slide 65: US Beer & Hard Seltzer
US BEER & HARD SELTZER Consumers looking for novel experiences cannot find them in traditional beer bottles. GLASS STILL PREFERRED, BUT NEEDS HAVE EVOLVED • Younger consumers and new liquids • Experimentation and novelty are king THEMES DRIVING CRAFT BEER & HARD SELTZERS • Creation • Connection • De
Slide 66: Horizon Catalyst
HORIZON HORIZON CATALYST 66 66 INTRODUCING THE CATALYST COLLECTION
Slide 67: Disrupting the Narrative
DISRUPTING THE NARRATIVE Consumer perception of beer in glass radically FIND changes with the new catalyst collection. YOUR Traditional Beer Bottle Catalyst Snifter Drinktainer FIT 90 Which design from 80 The Catalyst Collection 70 is right for your brand? Consumer Perception 60 50 40 30 20 10 0 Imp
Slide 68: High Impact Innovation
HIGH IMPACT INNOVATION BUILT ON INSIGHTS. OBJECTIVES ENABLES BRAND 20% BUILDING. REVENUE FROM NPD ENHANCES GLASS 110 RELEVANCY. PRICE INDEX VS BASE DRIVES PROFITABLE 30% GROWTH. NPD FROM GLOBAL INITIATIVES 68
Slide 69: Enabling Growth & New Product Development Q&A
FOCUS SESSION #3 ENABLING GROWTH & NEW PRODUCT DEVELOPMENT Q&A
Slide 70: Engineering Emotions
ENGINEERING EMOTIONS
Slide 71: Financial Appendix
FINANCIAL APPENDIX
Slide 72: 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 73: Reconciliation for Adjusted Earnings & aEPS
RECONCILIATION FOR ADJUSTED EARNINGS & aEPS The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measures, adjusted earnings and adjusted earnings per share, for the year ending December 31, 2021 and all periods after, to its most directly comparable GAAP fi
Slide 74: Reconciliation for FCF & Pre-Liability FCF
RECONCILIATION FOR FCF & PRE-LIABILITY FCF Year ended December 31, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F Cash from continuing operating activities $ 505 $ 580 $ 700 $ 698 $ 612 $ 758 $ 724 $ 793 $ 408 $ 457 $ 660 Cash payments for property, plant and equipment 285 290 361 369 402 4
Slide 75: Reconciliation to FCF and Adjusted FCF
RECONCILIATION TO FCF AND ADJUSTED FCF Unaudited Forecasted Year Ended December 31, 2021 Cash provided by operating activities $ 660 Cash payments for maintenance-related property, plant and equipment 310 Adjusted Free Cash Flow (non-GAAP) $ 350 Cash payments for strategic-related property, plant an
Slide 76: Reconciliation for Leverage Ratio & Net Debt
RECONCILIATION FOR LEVERAGE RATIO & NET DEBT For the year ending December 31, 2021 and all periods after, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, net debt divided by Credit Agreement EBITDA, to its most directly comparable U.S. GAAP fin
Slide 77: Other Key Assumptions: 2022-2024
OTHER KEY ASSUMPTIONS: 2022-2024 Corporate Retained & Other ~ $40 million/quarter Effective Tax Rate ~ 30%-32% Average Interest Rate ~ 4.5%-5.0% APPROXIMATE ANNUAL IMPACT ON FX RATES AT KEY POINTS EPS FROM 10% FX CHANGE Aug 31, Aug YTD Aug YTD AVG 2021 2021 2020 2020 EUR 0.13 EUR 1.18 1.20 1.13 1.15