O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Q1 2016 Earnings Presentation
17 slides from O-i Glass's earnings presentation, May 2, 2016
Slide 1: Safe harbor comments
Safe harbor comments 2 Regulation G The information presented here regarding adjusted EPS relates to net earnings from continuing operations attributable to the Company (exclusive of items management considers not representative of ongoing operations) divided by weighted average shares outstanding (
Slide 2: Solid progress on strategic initiatives; raising full year guidance
Solid progress on strategic initiatives Raising full year guidance 3 Adjusted EPS1 of $0.48, up 33% in constant currency Segment operating profit margin up 150 bps vs. 1Q 2015 Higher profit in all regions on a constant currency basis Sales volumes in line with expectations Including acquisition, shi
Slide 3: Europe
Europe 4 Industry and macro environment Stable industry demand Price pressure continues, although less intense YOY Euro strengthened late in 1Q 1Q review Shipments up 1%, primarily beer Operating profit margin improvement +120 bps YOY Stronger operational performance Efficiency improvements at ~two-
Slide 4: North America
North America 5 Industry and macro environment Well balanced supply and demand Growing segments (premium and craft) continue to offset declines in megabeer 1Q review 20 bps margin improvement for legacy business Shipments on par with prior year Acquired business: $5M segment operating profit Focus a
Slide 5: Latin America
Latin America 6 Industry and macro environment Strong Mexican domestic and export demand FX begins to strengthen late in 1Q Continuing economic weakness in Brazil 1Q review Acquired business: $37M segment operating profit Legacy business shipments down 5%; Brazil weakness Price offset cost inflation
Slide 6: Asia Pacific
Asia Pacific 7 Industry and macro environment Australian wine exports improving Inflation headwinds, driven by FX 1Q review Shipments up 1%, mainly wine Modest price increase partially compensates for inflation Solid performance offsets higher engineering activity Focus areas Improving end to end su
Slide 7: Improved segment operating profit
Improved segment operating profit 8 Note: Reportable segment data excludes the Company’s global equipment business 1 Prior year translated at 1Q16 exchange rates Segment Operating Profit $ millions 1Q15 Segment Operating Profit $168 Currency (11) Negative currency impact of 7% (mainly LA) 1Q15 at co
Slide 8: Strong 1Q16 Adjusted EPS; up 33% in constant currency
Strong 1Q16 Adjusted EPS; up 33% in constant currency 9 1 See appendix for a reconciliation to unaudited adjusted earnings and constant currency. Adjusted Earnings Per Share1 1Q15 Adjusted EPS $0.44 Currency (0.08) Headwind mainly in Latin America 1Q15 at constant currency 0.36 Segment operating pro
Slide 9: Asbestos: Positive trends continue on payments; new estimation method
Asbestos: Positive trends continue on payments; accounting liability impacted by new estimation method 10 For over a decade, used 3 year horizon to estimate asbestos-related liability In 2015, SEC initiated dialogue, mainly regarding the timeframe used in our estimate Extended timeframe to 4 years f
Slide 10: 2Q16 Adjusted EPS outlook
2Q16 Adjusted EPS outlook 13 2Q15 Adjusted EPS $0.60 Currency Impact ($0.04) Assumptions:1 EUR = 1.13; BRL = 3.60; COP = 3,010; AUD = 0.77; MXN = 17.2 2Q15 Adjusted EPS in Constant Currency1 $0.56 Europe Higher sales and production volume; lower costs North America Acquisition benefits; solid legacy
Slide 11: Full year 2016 outlook: Higher adjusted EPS and FCF
Full year 2016 outlook: Higher adjusted EPS and FCF 14 Key factors for 2016 guidance Strong business performance March 31 FX rates favorable to prior guidance Reflects some risk to business performance and macro conditions ~$280M ~$300M $2.25 - $2.35 2016 Adjusted EPS guidance: $2.25-$2.35 2016 Free
Slide 12: 2016 management priorities
2016 management priorities 15 Establish and maintain revenue and operational stability Improve commercial and end-to-end supply chain performance Maximize the value of the Vitro F&B acquisition Leverage an enterprise approach and ensure accountability Strategic Improve margins and earnings Generate
Slide 13: 2016 management priorities
MMM 2016 management priorities * Establish and maintain revenue and operational stability = Improve commercial and end-to-end supply chain performance = Maximize the value of the Vitro F&B acquisition = Leverage an enterprise approach and ensure accountability = Exercise a balanced approach to volum
Slide 14: Price, volume and currency impact on reportable segment sales
Price, volume and currency impact on reportable segment sales 17 1 Reportable segment sales exclude the Company’s global equipment business $ Millions Europe North America Latin America Asia Pacific Total1 1Q15 Segment Sales $567 $470 $205 $163 $1,405 Currency (5) (2) (45) (10) (62) 1Q15 at constant
Slide 15: Reconciliation to unaudited adjusted earnings and constant currency
Reconciliation to unaudited adjusted earnings and constant currency 18 The reconciliation below describes the items that management considers not representative of ongoing operations. Unaudited 2016 2015 68 $ 71 $ Restructuring, asset impairment and related charges 19 - Gain related to cash received
Slide 16: Impact from currency rates
Impact from currency rates 19 Approx. translation impact on EPS from 10% FX change Euro $0.10 Mexican peso $0.07 Brazilian real $0.05 Colombian peso $0.03 Australian dollar $0.05
Slide 17: Impact from currency rates
MMMM impact from currency rates Euro Mexican peso Brazilian real Colombian peso Australian dollar Ci impact on EPS from 10% FX change $0.10 $0.07 $0.05 $0.03 $0.05