O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Q3 2012 Earnings Presentation
12 slides from O-i Glass's earnings presentation, Oct 24, 2012
Slide 1: O-I Earnings Presentation Third Quarter 2012
O-I earnings presentation Third Quarter 2012
Slide 2: Introduction, Agenda, Regulation G and Forward Looking Statements
1 Introduction Agenda Financial review Business discussion and outlook Concluding remarks and Q&A Presenters Regulation G The information presented above regarding adjusted net earnings relates to net earnings attributable to the Company exclusive of items management considers not representative of
Slide 3: Improved Price Spread Offset by Production Curtailments
2 Improved Price Spread Offset by Production Curtailments Financial review 1 Reportable segment sales exclude $5 million and $15 million in 3Q12 and 3Q11, respectively, principally for the Company’s global equipment sales business. 2 Contractual cost-pass through provision primarily relates to North
Slide 4: Balance Sheet, Cash Flow and Capital Structure
3 Balance Sheet, Cash Flow and Capital Structure Financial review ($ Millions) 1 Total debt less cash divided by bank credit agreement EBITDA. See appendix for EBITDA reconciliations. Current bank covenants allow for a maximum ratio of 4.0x. 2 Free cash flow is defined as cash provided by continuing
Slide 5: Segment Profit up in all Regions except Europe
4 Segment Profit up in all Regions except Europe Business discussion ($ Millions) Segment Operating Profit Total Operating Profit $245M in 3Q12 Down $23M from 3Q11 ($268M) $5M unfavorable Fx impact $74 $75 $27 $69 $111 $67 $23 $67 $0 $25 $50 $75 $100 $125 Europe North America Asia Pacific South Amer
Slide 6: 4Q12 Business Outlook
4Q12 Business Outlook Favorable / Unfavorable Impact on Earnings 4Q12 vs 4Q11 Comments Operational Europe Sales volumes down ~10% with steeper decline in production Price increases recovering inflation North America Sales volumes ~flat Production levels down given inventory building in 4Q11 Asia Pac
Slide 7: European Asset Optimization Framework
6 European Asset Optimization Framework Improve asset efficiency and capabilities in O-I’s largest region Improve alignment with European market and customer needs Addressing assets with higher cost structures, including rationalization Invest for improved throughput, capability and quality Initial
Slide 8: Concluding Remarks and Q&A
7 Concluding Remarks and Q&A 3Q12 results in-line with expectations Actions result in good free cash flow generation On track to deliver at least $250M of Free Cash Flow in 2012 Debt paydown remains as primary capital allocation priority European asset optimization program already underway Investor
Slide 9: Appendix
Appendix
Slide 10: Reconciliation of GAAP to non-GAAP Items
9 Reconciliation of GAAP to non-GAAP Items Three months ended September 30 Nine months ended September 30$ Millions, except per-share amts 2012 2011 2012 2011 Earnings EPS Earnings EPS Earnings EPS Earnings EPS Earnings from continuing operations $ 92 $ 0.55 $ 119 $ 0.72 $ 348 $ 2.10 $ 273 $ 1.64 at
Slide 11: Free Cash Flow
10 Free Cash Flow (1) Free cash flow is cash provided by continuing operating activities less capital spending. Three months ended Nine months ended $ Millions Sept 30 Sept 30 2012 2011 2012 2011 Net earnings $ 97 $ 120 $ 359 $ 286 Plus: Loss (gain) from disc. operations 2 3 4 2 Earnings from contin
Slide 12: Reconciliation of Credit Agreement EBITDA
Reconciliation of Credit Agreement EBITDA 11 $ Millions 2012 2011 Earnings from continuing operations attributable to the Company (426) $ 200 $ Interest expense 255 348 Provision for income taxes 113 78 Depreciation 384 410 Amortization of intangibles 29 17 EBITDA 355 1,053 Adjustments in accordance