O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Q1 2013 Earnings Presentation
14 slides from O-i Glass's earnings presentation, Apr 23, 2013
Slide 1: O-I First Quarter 2013 Earnings Presentation
O-I First Quarter 2013 Earnings Presentation April 24, 2013
Slide 2: Safe Harbor Comments
Safe Harbor Comments 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 ongoing operations and does not conform to U.S. generally accepted accounting principles
Slide 3: First Quarter 2013 Summary
First Quarter 2013 Summary 2 Adjusted EPS of $0.60 Price increased 2% Covered cost inflation Shipments down 5%, driven by Europe and fewer shipping days in the quarter Initiatives to mitigate production volatility reduced fixed cost absorption in 1Q13 Rising profitability in South America Volume gro
Slide 4: P&L Review
P&L Review 3 1Q13 Recap Price covered inflation Volume decline in line with expectations Initial benefits from global cost reduction initiatives outweighed by lower fixed cost absorption 1 Reportable segment sales exclude the Company’s global equipment business. 2 Primarily relates to unabsorbed fix
Slide 5: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow 4 Leverage Ratio (Net debt to EBITDA)(1) 1 Total debt less cash divided by bank credit agreement EBITDA. See appendix for EBITDA reconciliations. Current bank covenants allow for a maximum ratio of 4.0x. 2 Free cash flow is defined as cash provided by continuing operating a
Slide 6: Regional Performance
Regional Performance 6 Shipments up ~4%, broad-based gains in most countries Logistics savings from new furnace in Brazil in 4Q12 Fewer furnace rebuilds Asia Pacific ($ Millions, except margin) 1Q 2013 1Q 2012 Net Sales - Fx neutral1 $269 $290 $277 Segment Operating Profit $53 $38 Segment Margin 19.
Slide 7: 2Q13 Business Outlook
2Q13 Business Outlook 7 2Q13 vs 2Q12 Comments Operational Europe Flat volume as wine gains offset by macro softness Cost inflation offset by price Moderate headwind from overproduction in prior year North America Stable shipment levels Production similar to prior year Asia Pacific Volume up low sing
Slide 8: Management Priorities
Management Priorities Execute European asset optimization program Capture emerging market growth, aided by product innovation R&D investments focused on manufacturing efficiencies Strategic Deliver earnings and cash flow targets Strengthen financial flexibility Disciplined capital allocation, with f
Slide 9: Q&A
Q&A 9
Slide 10: Appendix
Appendix 10
Slide 11: Reconciliation of GAAP to Non-GAAP Items
Reconciliation of GAAP to Non-GAAP Items 11 9 Three months ended March 31 $ Millions, except per-share amts Earnings EPS Earnings EPS Earnings from continuing operations 79 $ 0.48 $ 122 $ 0.73 $ attributable to the Company · Restructuring, asset impairment and related charges 0.05 · Charges for note
Slide 12: Segment Operating Margin
Segment Operating Margin 12 (1) Segment operating profit margin is segment operating profit divided by segment net sales $ Millions (except profit margin) Net Sales: 2013 2012 Europe 650 $ 705 $ North America 469 482 South America 269 277 Asia Pacific 247 257 Segment Operating Profit: Europe 59 $ 10
Slide 13: Free Cash Flow
Free Cash Flow 13 (1) Free Cash Flow equals cash provided by continuing operating activities less additions to property, plant and equipment. $ Millions 2013 2012 Net earnings 74 $ 125 $ Plus: Loss from discontinued ops 10 1 Earnings from continuing operations 84 126 Non-cash charges: Depreciation a
Slide 14: Reconciliation of Credit Agreement EBITDA
Reconciliation of Credit Agreement EBITDA 14 $ Millions 3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012 Earnings (loss) from continuing operations 178 $ 220 $ (406) $ (382) $ (442) $ Interest expense 255 248 255 264 302 Provision for income taxes 97 108 113 110 101 Depreciation 371 378 384 388 40