Slide 1: O-I Earnings Call Additional Information 4th Quarter & Full Year 2008
O-I Earnings Call Additional Information 4th Quarter & Full Year 2008 January 28, 2009
Slide 2: EPS Reconciliation
EPS Reconciliation 1 2 2 1 1 EPS from continuing operations exclusive of items management considers not representative of ongoing operations. 2 EPS is calculated discretely for each period and quarterly amounts do not necessarily total the year-to-date amounts because of dilution and rounding. (0.04
Slide 3: Net Sales Reconciliation
Net Sales Reconciliation $ Millions 4Q Full Year 2007 Segment sales $1,937 $7,475 Sales volume (197) (514) Price and product mix 152 572 Currency translation (195) 275 Total reconciling items (240) 333 2008 Segment sales 1,697 7,808 Other sales 8 77 Net sales $1,705 $7,885
Slide 4: Segment Operating Profit Reconciliation
Segment Operating Profit Reconciliation $ Millions 4Q Full Year 2007 Segment operating profit $300 $1,107 Sales volume (44) (116) Price and product mix 152 572 Manufacturing and delivery (178) (468) Operating expenses (23) (28) Currency translation (24) 56 All other (26) 34 Total reconciling items (
Slide 5: Free Cash Flow
Free Cash Flow Three months ended Dec. 31 $ Millions Twelve months ended Dec. 31 2008 2007 2008 2007 $(229.7) $(18.8) Net earnings (loss) $258.3 $1,340.6 (1.1) (33.4) Gain (loss) from discontinued operations 6.8 1,041.3 (228.6) 14.6 Earnings (loss) from continuing operations 251.5 299.3 Non-cash cha
Slide 6: Free Cash Flow - Full Year 2008
Free Cash Flow - Full Year 2008 1 Other Operating Items is comprised of minority interest expense, current tax expense, net interest, other non-cash charges, and changes in other non-current assets/liabilities, less restructuring payments. 1 $Millions 346 332 86 69 38 137 238 7 128 $100 $200 $300 $4
Slide 7: Asbestos – New Filings and Pending Cases
Asbestos – New Filings and Pending Cases New Filings Pending Cases 15,000 25,000 9,000 7,000 9,000 5,000 0 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 27,000 30,000 2003 2004 2005 2006 2007 2008 11,000 14,000 19,000 32,000 29,000 35,000 0 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000
Slide 8: Asbestos – Payments and Liability
Asbestos – Payments and Liability High-temperature pipe and block insulation used in industrial applications Exited the business in 1958 – 51 years ago Less than $40 million in sales from 1948 to 1958 803 766 730 688 456 495 199 190 171 163 347 210 $0 $100 $200 $300 $400 $500 2003 2004 2005 2006 200
Slide 9: Reconciliation of GAAP to non-GAAP Items 4th Quarter 2008 and 4th Quarter 2007
Reconciliation of GAAP to non-GAAP Items 4th Quarter 2008 and 4th Quarter 2007 Net loss Three months ended Dec. 31, $ Millions, except per share amounts 2008 2007 Earnings EPS Earnings EPS Net loss $(229.7) $(1.39) $(18.8) $(0.15) Less loss from discontinued operations (1.1) (0.01) (33.4) (0.21) Ear
Slide 10: Reconciliation of GAAP to non-GAAP Items Full Year 2008 and 2007
Reconciliation of GAAP to non-GAAP Items Full Year 2008 and 2007 2.8 Twelve months ended Dec. 31, $ Millions, except per share amounts 2008 2007 Earnings EPS Earnings EPS Net earnings $258.3 $1.52 $1,340.6 $7.99 Less earnings from discontinued operations 2.8 0.02 Less gain on sale of discontinued op
Slide 11: Debt Maturity Schedule and Bank Credit Agreement
Bank Credit Agreement revolver availability is $768MM Bank Credit Agreement revolver extends through June 2012 Leverage Ratio is 2.0 (Total Debt less Cash to “Bank Credit Agreement EBITDA”) 58% Variable / 42% Fixed Weighted average cost of debt 6.9% Debt Maturity Schedule As of December 31, 2008 $ M
Slide 12: Uses of Free Cash Flow
Organic Growth 1 Selective capacity expansion in attractive and growing markets Modernizing and streamlining our footprint Acquisition Growth and margin opportunities in emerging markets Global consolidation in markets not served by O-I Share Repurchase and Dividends Return capital to shareholders D
Slide 13: Supplemental Information
January 28, 2009 Supplemental Information 4Q & FY 2008 Earnings Call Additional Information Ci
Slide 14: Foreign Currency Exchange Rate Changes
Foreign Currency Exchange Rate Changes 1Average exchange rate for the quarter 1 35 EUR v USD 1.15 1.30 1.45 1.60 4Q 1Q 2Q 3Q 4Q 2006 2007 2008 AUD v USD 0.60 0.70 0.80 0.90 1.00 4Q 1Q 2Q 3Q 4Q 2006 2007 2008 FX Translation Impact on Sales, Segment Operating Profit and EPS compared to prior year 2007