O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Investor Presentation (June 2019)
16 slides from O-i Glass's investor presentation, Jun 6, 2019
Slide 1: Safe Harbor Comments
2 SAFE HARBOR COMMENTS Forward-Looking Statements This document contains "forward-looking" statements 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. Forward-looking statements reflect the Compan
Slide 2: Why O-I? Execution of our 3-year plan implies ~12% FCF yield
Execution of our 3-year plan implies ~12% FCF Yield 3 WHY O-I? Leading glass packaging company with global reach to partner with growing CPG brands Glass to benefit from megatrends like premiumization and sustainability Executing sound strategy by enabling profitable growth and reducing structural c
Slide 3: O-I is structurally better positioned today to enable future value creation
4 O-I IS STRUCTURALLY BETTER POSITIONED TODAY TO ENABLE FUTURE VALUE CREATION Increased aEPS1 ~36% Integrating acquisitions ADJUSTED Free Cash flow2 ~$395M average Margin expansion +180 basis points SALES VOLUME GROWTH 12% for O-I Network De-risking Reduced legacy liabilities ~16% Share Repurchase $
Slide 4: Delivering on our transformation beyond 2021
5 DELIVERING ON OUR TRANSFORMATION BEYOND 2021 Grow and expand given favorable market trends Structural cost improvement Sustainability Breakthrough technology Capital allocation New business model for glass enabled by technology Continued momentum Simplified, agile organization 2019-2021 De-risk ba
Slide 5: Secured 80% of expected cumulative volume target
SECURED 80%1 of EXPECTED 3 year cumulative volume target 6 5% JV Investments 3% Core Organic 10% Cumulative Volume Growth Target 2018-21 Cumulative 3 Year Growth of O-I Combined Network Glass Container Shipments TYPE TARGET SECURED SOURCE Organic Growth 300bps 150 bps Several strategic customer agre
Slide 6: MAGMA Breakthrough Innovation
7 MAGMA Breakthrough Innovation Reimagine how glass can be made: New capacity at lower capital commitment and intensity Total cost of ownership below legacy Increased scalability Rapid new capacity deployment and asset portability Production flexibility to support diversified offerings Competitively
Slide 7: Disciplined Capital Allocation
8 DISCIPLINED CAPITAL ALLOCATION Fund Strategy CapEx: Prioritizing spend on strategic initiatives Inorganic growth: Deprioritized after Nueva Fanal De-risk Balance Sheet Deleveraging: A top priority to reach ~3.0x by 2021 Asbestos: De-risking plan on track Divestitures: Actively engaged on several p
Slide 8: 2019 – 2021 Objectives
9 2019 – 2021 OBJECTIVES* Volume growth +10% growth including volume with strategic customers; and potential bolt-on acquisitions MARGIN GAIN ~100 bps BALANCED CAPITAL ALLOCATION Driving net leverage to ~3.0x year-end 2021 balanced with share repurchase and paying dividends ~10% aeps CAGR Stronger b
Slide 9: Key Conclusions
10 Key Conclusions Foundation set to enable growth Strong competitive position as preferred global glass supplier Positioned to capture future volume growth in glass Premiumization and sustainability enables glass growth MAGMA represents a breakthrough technology Disciplined capital allocation proce
Slide 10: Key Conclusions
KEY CONCLUSIONS Foundation set to enable growth Strong competitive position as preferred global glass supplier Positioned to capture future volume growth in glass Premiumization and sustainability enables glass growth MAGMA represents a breakthrough technology Disciplined capital allocation process
Slide 11: Non-GAAP Financial Measures
12 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 presentati
Slide 12: Reconciliation for Earnings from Continuing Operations Before Income Taxes
14 Reconciliation FOR Earnings from Continuing Operations Before Income Taxes Note: For all periods after 2018, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measures, Segment operating profit and Segment operating profit margin, to its most directly
Slide 13: Reconciliation for Adjusted Earnings
15 RECONCILIATION FOR ADJUSTED EARNINGS Note: For all periods after 2018, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, adjusted earnings and adjusted earnings per share to its most directly comparable GAAP financial measure, earnings from co
Slide 14: Reconciliation for Estimated Adjusted Free Cash Flow & Adjusted Free Cash Flow
16 RECONCILIATION FOR ESTIMATED ADJUSTED FREE CASH FLOW & ADJUSTED FREE CASH FLOW Note: For all periods after 2019, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, Adjusted free cash flow, to its most directly comparable U.S. GAAP financial mea
Slide 15: Reconciliation for Leverage Ratio
17 RECONCILIATION FOR LEVERAGE RATIO Note: For all periods after 2019, 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 financial measure, Net Earnings, becau
Slide 16: Reconciliation for Leverage Ratio
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