O-i Glass, Inc. · NYSE:OI
O-i Glass — Investor Presentation (November 2020)
16 slides from O-i Glass's investor presentation, Nov 30, 2020
Slide 1: 4Q20 Capital Markets Presentation
DECEMBER 1, 2020 4Q20 CAPITAL MARKETS PRESENTATION
Slide 2: Safe Harbor Comments
2 SAFE HARBOR COMMENTS Forward - Looking Statements This presentation contains “forward - looking” statements related to O - I Glass, Inc. (“O - I Glass” or the “company”) within the mea ning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of th
Slide 3: O-I Glass, Inc. at a Glance
3 OPERATING IN 2 REGIONS: Americas and Europe $6.2 BILLION in net sales in 2019* 5000+ direct customers O - I GLASS, INC AT A GLANCE MAGMA 72 factories 20 countries LEADING GLOBAL glass container supplier 69% OF NET SALES* from 2019 non - US operations GLASS IS THE MOST sustainable packaging option
Slide 4: Executing O-I Glass Value Creation Thesis
1 3 2 4 EXECUTING O - I GLASS VALUE CREATION THESIS BOLD STRUCTURAL ACTIONS TO CHANGE O - I’S BUSINESS FUNDAMENTALS ● Turnaround initiatives ~ $70M benefit YTD ● Increased factory efficiency, cost and flexibility ● Improve sales volumes and margin ● MAGMA Gen 1 in Germany on track 1Q21 ● Deployment
Slide 5: Responding to Pandemic with Speed and Agility
5 RESPONDING TO PANDEMIC WITH SPEED AND AGILITY O - I’S 2020 COVID RESPONSE PLAN DELIVERING SUSTAINABLE SAVINGS SPANNING 28 DIFFERENT LEVERS TO HELP MITIGATE IMPACT OF PANDEMIC Align Supply with Demand • Swift action • IDS ≤ PY • Optimizing network • Reducing cost absorption Operating Efficiency • T
Slide 6: Shipments Stabilize Across All Geographies
6 SHIPMENTS STABILIZE ACROSS ALL GEOGRAPHIES SHIPMENT TRENDS HAVE STABILIZED AND GLASS HAS ADJUSTED WELL TO CHANNEL SHIFTS FROM ON - PREMISE TO OFF - PREMISE -30% -20% -10% 0% 10% Jan Feb Mar Apr May Jun Jul Aug Sept Oct O - I Shipment Trends (vs PY) O-I AM EU Volumes slightly up in Oct and tracking
Slide 7: Improving Business Outlook
7 IMPROVING BUSINESS OUTLOOK IMPROVING BUSINESS OUTLOOK AS MARKETS STABILIZE AND RECOVER 2020 GUIDANCE 2021 PRELIMINARY THOUGHTS 4Q20 aEPS expected high end of $0.30 - $0.35 range ▲ Sales Volume: Flat to slightly favorable compared to PY ▲ Production Volume: Flat to slightly favorable compared to PY
Slide 8: 2020 Capital Allocation
8 2020 CAPITAL ALLOCATION CAPITAL ALLOCATION GUIDING PRINCIPLES (435) 112 205 (716) (179) 316 561 (800) (400) 0 400 800 1Q 2Q 3Q 4Q ($M) FCF Progression 2020 Qtr FCF 2019 Qtr FCF YTD FCF 1 AND NET DEBT 2 FAVORABLE TO PY 1 Management defines free cash flow as cash provided by continuing operating act
Slide 9: Conclusion
9 ▶ Responding to COVID - 19 with speed and agility • Strong operating performance has continued through 3Q ▶ Demand recovering as markets reopen ▶ Improving business outlook ▶ Bold actions to create long - term value ▶ Stronger, leaner O - I enterprise emerging CONCLUSION
Slide 10: Appendix
a NDIX ' we. ~APPE
Slide 11: Historic Financials (Excluding ANZ)
11 HISTORIC FINANCIALS (EXCLUDING ANZ) $ millions Consolidated O-I Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 Net Sales 1,638$ 1,756$ 1,670$ 1,628$ 6,691$ 1,561$ 1,418$ 1,616$ Adjusted EBIT (a) 176 208 185 175 744 148 62 169 EBITDA (a) 302 335 312 294 1,243 274 183 285 ANZ Net S
Slide 12: FX Impact on Earnings
12 FX IMPACT ON EARNINGS APPROXIMATE ANNUAL TRANSLATION IMPACT ON EPS FROM 10% FX CHANGE EUR $0.09 MXN $0.01 BRL $0.02 COP $0.01 FX RATES AT KEY POINTS OCT 26, 2020 AVG 2019 AVG 3Q19 EUR 1.18 1.12 1.12 MXN 20.97 19.32 19.26 BRL 5.62 3.95 3.91 COP 3,815 3,299 3,270
Slide 13: Non-GAAP Financial Measures
13 NON - GAAP FINANCIAL MEASURES The company uses certain non - GAAP financial measures, which are measures of its historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. Management believes that its presen
Slide 14: Reconciliation to Earnings from Continuing Operations Before Income Taxes
14 RECONCILIATION TO EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Unaudited 2020 2019 2020 2019 Net sales: Americas 887$ 918$ 2,442$ 2,733$ Europe 644 588 1,775 1,834 Asia Pacific 52 128 281 382 Reportable segment totals 1,583 1,634 4,498 4,949 Other 33 36 97 114 Net sales 1,616$ 1,670$ 4
Slide 15: Reconciliation for Quarterly Free Cash Flow
15 RECONCILIATION FOR QUARTERLY FREE CASH FLOW Unaudited September 30, 2020 June 30, 2020 March 31, 2020 March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Cash provided by (utilized in) continuing operating activities 262$ 181$ (315)$ (595)$ (67)$ 416$ 654$ Cash payments for property
Slide 16: Reconciliation for Adjusted Effective Tax Rate and Net Debt
16 RECONCILIATION FOR ADJUSTED EFFECTIVE TAX RATE Unaudited Three Months Ended Three Months Ended September 30, 2020 September 30, 2019 376$ (536)$ Items management considers not representative of ongoing operations (262) 663 114$ 127$ Benefit (Provision) for income taxes (B) (41)$ (31)$ Tax items m