Slide 1: O-I Earnings Call 3rd Quarter 2007
O-I Earnings Call 3rd Quarter 2007 October 25, 2007
Slide 2: Third Quarter Highlights
Third Quarter Highlights During the Quarter: Sold plastics business for $1.825 billion – gain of $1.072 billion Reduced net debt (total debt less cash and short term investments) by $2.0 billion Profitability study led to initial asset impairment and restructuring charge of $62 million 3rd Quarter 2
Slide 3: Reconciliation of GAAP to non-GAAP Items
Reconciliation of GAAP to non-GAAP Items 3rd Quarter 2007 and 3rd Quarter 2006 $ Millions, except per share amounts Three months ended Sept. 30, Earnings EPS Earnings EPS Net earnings 1,156.5 $ 6.86 $ 8.4 $ 0.02 $ Less gain/earnings from discontinued operations 1,080.9 6.41 0.3 - Earnings from conti
Slide 4: Net Sales Reconciliation Glass Containers
Net Sales Reconciliation Glass Containers $ Millions Glass Containers 3Q 2007 YTD Sept 30, 2007 1,717.5 $ 2006 Net sales 4,951.0 $ 1.2 Sales volume 143.6 95.9 Price and product mix 230.4 113.8 Currency translation 284.4 210.9 Total reconciling items 658.4 1,928.4 $ 2007 Net sales 5,609.4 $
Slide 5: Segment Operating Profit Reconciliation
Segment Operating Profit Reconciliation $ Millions 3Q 2007 YTD Sept. 30, 2007 207.6 $ 2006 Glass Segment Operating Profit 594.0 $ 0.3 Sales volume 39.1 91.4 Price and product mix 223.9 19.6 Productivity and production volume 77.5 (29.6) Manufacturing inflation net of cost savings (101.2) (1.1) Wareh
Slide 6: EPS Reconciliation 3rd Quarter 2006 vs. 3rd Quarter 2007
EPS Reconciliation 3rd Quarter 2006 vs. 3rd Quarter 2007 0.26 $ 2007 Reconciling items: Sales volume 0.00 Price and product mix 0.32 Productivity and production volume 0.07 Manufacturing inflation net of cost savings (0.10) Warehouse, delivery and other cost of sales (0.00) Operating expenses 0.03 C
Slide 7: Free Cash Flow
Free Cash Flow ¹ Excludes $12.2 million in 3Q 2007 and $24.4 million in 9 months YTD of assets recorded under the capital lease for the factory in Peru. 2 Management defines Free Cash Flow as cash provided by continuing operating activities plus collections on receivables arising from securitization
Slide 8: Management Working Capital
Management Working Capital (1) Management working capital = accounts receivable, plus inventory and repair parts, less accounts payable. (2) The working capital values prior to 4Q 2005 have been adjusted to reflect the European accounts receivable securitization program, which was off balance sheet
Slide 9: Debt Maturity Schedule
Debt Maturity Schedule As of September 30, 2007 $ Millions Short-term loans and long-term debt reclassified as short-term or due within one year: 8.875% due 2009(a) $ 567 8.75% due 2012(b) 625 7.35% due 2008 250 Other Short Term(c) 420 Total $1,862 Total cash and short term investments: $1,605 (a) T