Slide 1: O-I Second Quarter 2014 Earnings Presentation
O-I Second Quarter 2014 Earnings Presentation July 30, 2014
Slide 2: Safe Harbor Comments
Safe Harbor Comments Regulation G The information presented above regarding adjusted net earnings relates to net earnings from continuing operations attributable to the Company exclusive of items management considers not representative of ongoing operations and does not conform to U.S. generally acc
Slide 3: Second Quarter 2014 Summary
Second Quarter 2014 Summary 2 Adjusted EPS of $0.80 Similar to prior year Shipments down 1% Ex China (retrenchment), volume +1% South America margins up more than 500 basis points Brazil volume up double digits Andean countries’ volumes begin to recover Europe operating profit similar to prior year
Slide 4: Regional Financial Performance: Europe and North America
Regional Financial Performance Europe and North America 3 Shipments up 2% Strong beer, wine and food Softness in spirits Lower price in line with deflation Lower production volume due to engineering work and furnace rebuilds North America ($ Millions) 2Q 2014 2Q 2013 Net Sales - Currency neutral1 $7
Slide 5: Regional Financial Performance: South America and Asia Pacific
Regional Financial Performance South America and Asia Pacific 4 Shipments in tonnes up 8%(2) Brazil shipments up double digits Andean demand up low-single digits Less production downtime from furnace rebuilds Asia Pacific ($ Millions) 2Q 2014 2Q 2013 Net Sales - Currency neutral1 $274 $289 $269 Segm
Slide 6: 2Q14 Segment Sales and Operating Profit
2Q14 Segment Sales and Operating Profit 5 Note: reportable segment sales exclude the Company’s global equipment business. Price up ~1%, driven by Americas Shipments down 1% Planned China plant shutdowns Beer up in EU, NA and SA FX tailwind Euro partially offset by Brazilian real and Australian dolla
Slide 7: 2Q14 Adjusted EPS Bridge
2Q14 Adjusted EPS Bridge 6 Adjusted Earnings Per Share 2Q13 $0.81 Segment operating profit (0.02) Retained corp. costs 0.02 Net interest expense ─ Non-controlling interests ─ Effective tax rate (0.01) Total reconciling (0.01) 2Q14 $0.80 Improvement in corporate costs Largely driven by lower pension
Slide 8: 3Q14 Business Outlook
3Q14 Business Outlook 7 3Q14 vs. 3Q13 Comments Operational Europe Sales volume modestly positive Asset optimization yields continuing benefits Higher production volume North America Sales volume flat Production volume lower than prior year South America Volume up mid-single digits, driven by Andean
Slide 9: Update on 2014 Guidance
Initial 2014 adjusted EPS range Factors impacting range Higher supply chain costs in North America Strong performance in South America New 2014 adjusted EPS range Update on 2014 Guidance 8 Free Cash Flow target remains approximately $350 million Adjusted EPS range narrowed to $2.85 - $3.05 $3.20 $2.
Slide 10: Executing on Management Priorities
Executing on Management Priorities Execute ongoing European asset optimization program Capture emerging market growth Commercialize product innovation (e.g., black glass, Helix®) Strategic Financial Exercise disciplined price – volume management Manage volatility of the business Reduce structural co
Slide 11: Appendix
Appendix 10
Slide 12: Price, Volume and Currency Impact on Reportable Segment Sales
Price, Volume and Currency Impact on Reportable Segment Sales 11 1 Sales negatively impacted by shut down of non-strategic flat glass business in 4Q13 2 Reportable segment sales exclude the Company’s global equipment business $ Millions Europe North America South America 1 Asia Pacific Total 2 2Q13
Slide 13: Reconciliation to Adjusted Earnings
Reconciliation to Adjusted Earnings 12 $ Millions The reconciliation below describes the items that management considers not representative of ongoing operations. Unaudited 2014 2013 2014 2013 134 $ 135 $ 236 $ 214 $ Restructuring, asset impairment and related charges - 10 Charges for note repurchas