O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Investor Presentation (June 2017)
19 slides from O-i Glass's investor presentation, Jun 7, 2017
Slide 1: Safe Harbor Comments: Non-GAAP Financial Measures
Safe Harbor Comments 2 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
Slide 2: Forward-Looking Statements
Forward-Looking Statements This document contains "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of the Securities Act of 1933. Forward-looking statements reflect the Company's current expectation
Slide 3: Why Invest in O-I?
Why Invest in O-I? 4 Investment Thesis Global leader in glass packaging Well positioned to modestly grow volume Secular trends support glass growth Select opportunities for smarter growth Develop new business Improve commercial and end-to-end supply chain performance Demonstrable Financial Impact In
Slide 4: Advancing Our Transformational Journey: Moving from Stability to Agility
Advancing Our Transformational Journey Moving from Stability to Agility 5
Slide 5: Unparalleled Global Reach with Leading Positions in Key Global Markets
Unparalleled Global Reach with Leading Positions in Key Global Markets 6 #1 position in North America MATURE MARKETS #1 position in Australia and N. Zealand #1 position in Europe #1 position in Latin America EMERGING MARKETS Foothold in China Leading position within Southeast Asia 19 plants 17 plant
Slide 6: O-I: Strong Franchise in Growing Markets
O-I: Strong Franchise in Growing Markets 7 Trusted by the world’s leading and emerging brands Source: Euromonitor Globally, O-I markets are growing Top 10 customers represent ~35% of global sales 1% 1% 3% 5% NA EU LA AP Food & Beverage Markets 2017 – 2019 CAGR
Slide 7: O-I Sales Volume Growing
O-I Sales Volume Growing 8 2016: Global sales volumes increased 9% from prior year Year-on-year growth in all major end use categories 2017 forecast: Expecting ~1% organic volume growth
Slide 8: Favorable End Market Demand Trends Continue
Favorable End Market Demand Trends Continue 9 NORTH AMERICA EUROPE Unchanged, balanced supply and demand Non-beer segments continue to grow Mainstream beer dynamics still challenging Supply/demand dynamics essentially unchanged Solid export trends support volume trends Constructive pricing environme
Slide 9: 2017 Strategic Initiatives Continue to Boost Bottom Line
2017 Strategic Initiatives Continue to Boost Bottom Line 10 Total Systems Cost Expected to add $35M-$45M in operating profit in 2017 Delivered ~$8M in 1Q17 Focus on lowering structural cost – end-2-end supply chain cost reduction Mastering enterprise-wide replication of best practices to improve: Qu
Slide 10: No Change to Annual Guidance
No Change to Annual Guidance 2017 Targets in Line with Investor Day 11 2017 Targets Comment Adjusted EPS1 $2.40-$2.50 Consistent with I-Day target of 10% CAGR Adjusted free cash flow1 ~$365M Consistent with I-Day Debt reduction (FX neutral) ~$225M Consistent with I-Day Impact of strategic initiative
Slide 11: Pension: Steady Despite Volatile Markets and Rates
Pension: Steady Despite Volatile Markets and Rates 12 O-I pension expense and contributions continue to be stable Reducing risk profile of pension liabilities De-risking efforts reducing our sensitivity to changes in discount rates Sustained non cash pension expense reduces EPS by ~ $0.401 1 Related
Slide 12: Continued Favorable Trends in Asbestos
Continued Favorable Trends in Asbestos 13 1 year ASBESTOS PAYMENTS TOTAL EXPECTED ASBESTOS-RELATED LIABILITY1 1 The Company’s ultimate asbestos-related liability cannot be estimated with certainty. As part of its future comprehensive annual reviews, the Company will estimate its total asbestos-relat
Slide 13: 2Q17 Adjusted EPS Outlook
Note: Only FX assumptions have changed since 1Q17 earnings teleconference. 1 Adjusted EPS excludes items management does not consider representative of ongoing operations. See the table entitled Reconciliation to Adjusted Earnings and Constant Currency – 2Q 2016 in the appendix of this presentation.
Slide 14: 2Q17 Adjusted EPS Outlook
J 2Q17 Adjusted EPS Outlook Higher operational performance muted by YoY tax rate EEE Currency Impact Assumptions? EUR = 1.12; BRL = 3.26; COP = 2,915; AUD = 0.75; MXN = 18,7 te Benefits from strategic initiatives; sales flat despite fewer shipping days; Engs5 ae aniprice-cost spread kely to be flat
Slide 15: Reconciliation to Expected Adjusted Earnings – FY17 Fcst
Reconciliation to Expected Adjusted Earnings – FY17 Fcst 16
Slide 16: Reconciliation to Adjusted Free Cash Flow
Reconciliation to Adjusted Free Cash Flow 17 Note: Management defines adjusted free cash flow as cash provided by continuing operating activities less additions to property, plant and equipment plus asbestos-related payments (all components as determined in accordance with GAAP). $ Millions Unaudite
Slide 17: Reconciliation to Adjusted Earnings and Constant Currency – 2Q 2016
Reconciliation to Adjusted Earnings and Constant Currency – 2Q 2016 18
Slide 18: Impact from Currency Rates
Impact from Currency Rates 19 Approx. translation impact on EPS from 10% FX change Euro $0.10 Mexican peso $0.07 Brazilian real $0.05 Colombian peso $0.03 Australian dollar $0.05
Slide 19: Impact from Currency Rates
] impact from Currency Rates Euro Mexican peso Brazilian real Colombian peso Australian dollar Approx. translation impact on EPS from 10% FX change $0.10 $0.07 $0.05 $0.03 $0.05