O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Q3 2013 Earnings Presentation
14 slides from O-i Glass's earnings presentation, Oct 30, 2013
Slide 1: O-I Third Quarter 2013 Earnings Presentation
O-I Third Quarter 2013 Earnings Presentation October 31, 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: Third Quarter 2013 Summary
Third Quarter 2013 Summary 2 Adjusted EPS of $0.79 14% increase over prior year Price/Mix increase of ~2% Shipments up > 2% Global wine volume gains led by Europe Strong beer sales in mature markets, flat globally Rising profitability in EU and NA driven by volume growth and cost savings SA profits
Slide 4: Regional Performance: EU and NA
Regional Performance: EU and NA 3 Volume in tonnes up ~7% Led by wine gains Catch-up in beer and food Fx boosts top line by ~5% Production volume higher Asset optimization and cost saving programs improve margins North America ($ Millions, except margin) 3Q 2013 3Q 2012 Net Sales $733 $652 Segment O
Slide 5: Regional Performance: SA and AP
Regional Performance: SA and AP 4 Shipments down ~9% Macroeconomic slowdown General strikes in Colombia temporarily idle plant Fx negatively impacts earnings Asia Pacific ($ Millions, except margin) 3Q 2013 3Q 2012 Net Sales - Fx neutral1 $282 $310 $323 Segment Operating Profit $42 $69 Segment Margi
Slide 6: Financial Review
Financial Review 5 P&L Recap Volume gains in all regions except SA Increased fixed cost absorption on higher production in EU Cost savings, particularly in EU and NA Fx headwinds Balance Sheet Recap Debt repayment of $168M Share repurchases of $10M 1 Reportable segment sales exclude the Company’s gl
Slide 7: 4Q13 Business Outlook
4Q13 Business Outlook 6 4Q13 vs. 4Q12 Comments Operational Europe Low single digit volume growth Tailwind from higher production compared to prior year Asset optimization yields continuing benefits North America Flat to low single digit volume growth Tailwind from higher production compared to prior
Slide 8: Executing on Management Priorities
Executing on Management Priorities Europe asset optimization program delivers benefits Innovation center begins operations Packaging awards recognize product innovation Strategic Affirmed free cash flow of at least $300M Disciplined capital allocation, including share buybacks in 3Q Leverage ratio i
Slide 9: Q&A
Q&A 8
Slide 10: Appendix
Appendix 9
Slide 11: Reconciliation of GAAP to Non-GAAP Items
Reconciliation of GAAP to Non-GAAP Items 10 Three months ended September 30 Nine months ended September 30 $ Millions, except per-share amts 2013 2012 2013 2012 Earnings EPS Earnings EPS Earnings EPS Earnings EPS Earnings from continuing operations $ 132 $ 0.79 $ 92 $ 0.55 $ 346 $ 2.08 $ 348 $ 2.10
Slide 12: Segment Operating Margin
Segment Operating Margin 11 (1) Segment operating profit margin is segment operating profit divided by segment net sales $ Millions (except profit margin) Net Sales: 2013 2012 2013 2012 Europe 733 $ 652 $ 2,129 $ 2,088 $ North America 529 513 1,525 1,511 South America 282 323 820 882 Asia Pacific 23
Slide 13: Free Cash Flow
Free Cash Flow 12 (1) Free Cash Flow equals cash provided by continuing operating activities less additions to property, plant and equipment. $ Millions 2013 2012 2013 2012 Net earnings 136 $ 97 $ 347 $ 359 $ Plus: Loss from discontinued ops 2 2 15 4 Earnings from continuing operations 138 99 362 36
Slide 14: Reconciliation of Credit Agreement EBITDA
Reconciliation of Credit Agreement EBITDA 13 $ Millions 9/30/2013 6/30/2013 3/31/2013 12/31/2012 9/30/2012 Earnings (loss) from continuing operations 219 $ 180 $ 178 $ 220 $ (406) $ Interest expense 245 250 255 248 255 Provision for income taxes 105 93 97 108 113 Depreciation 355 367 371 378 384 Amo