O-i Glass, Inc. · NYSE:OI
O-i Glass — Q3 2021 Earnings Presentation
14 slides from O-i Glass's earnings presentation, Nov 9, 2021
Slide 1: 3Q21 Capital Markets Presentation
3Q21 CAPITAL MARKETS PRESENTATION NOVEMBER 9, 2021
Slide 2: Safe Harbor Comments
SAFE HARBOR COMMENTS FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking” statements related to O-I Glass, Inc. (the “company”) 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.
Slide 3: At a Glance
AT A G L A N C E DIVERSE BROAD PRODUCT PORTFOLIO CUSTOMER BASE 34% beer 19% wine 19% food 15% spirits 13% NAB 6,000+ direct customers GLASS IS THE MOST MAGMA SUSTAINABLE PACKAGE reimagines glass making to all natural, endlessly recyclable, support customer aspirations NEVER trash and enable profitab
Slide 4: 2021 Priorities Highlights
A DVA N C I N G B O L D P L A N TO C H A N G E B U S I N E S S F U N DA M E N TA L S 2021 PRIORITIES HIGHLIGHTS ❶ MARGIN EXPANSION – STRONG OPERATING PERFORMANCE AND COST EFFICIENCIES $50M initiative benefits $50M benefits YTD; Expect savings will approximate ~$60M Improve performance in North Ameri
Slide 5: I-Day 2021: Building the Path to Yes! Enhance Stakeholder Value
I-DAY 2021: BUILDING THE PATH TO YES! ENHANCE STAKEHOLDER VALUE FAVORABLE ENHANCE TRANSFORMATION MAGMA MARKET VALUE YES! TO YES! TO YES! TO YES! TO PROFITABLE GROWTH AN AGILE & RESILIENT COMPANY A NEW PARADIGM FOR GLASS ENHANCE VALUE Mega trends favor glass Simple, agile, effective, adaptable Flexib
Slide 6: Glass Is an Attractive Market
GL A S S IS A N ATT R ACT IVE M A R K ET While flat during the austerity era, glass is expected to grow 1.6% CAGR as trends accelerate. PROJECTED PACKAGING GROWTH NORTH AMERICAN PACKAGING LANES (2022-2024) 4.5% HIGH GLASS AFFINITY CATEGORIES GLASS VOLUME GROWTH ALL PACKAGING VOLUME GROWTH ~ 77% of 1
Slide 7: MAGMA's Potential Benefits
M AGMA ’ S POT E N T IAL B E NE F ITS O-I expects MAGMA will significantly enhance O-I’s capabilities and competitive position. OBJECTIVES MAGMA GEN 3 1 IMPROVEMENT VS HERITAGE (2025+) 1. FLEXIBLE Achieve attractive economics at 15% lower utilization rate 2. SCALABLE New melter reduces capacity per
Slide 8: Business Outlook
BUS IN E SS O U TL OOK 2021 2022 2024 Outlook as of October 26, 2021 Prelim Thoughts as of October 26, 2021 Targets from September 28, 2021 I-Day • Volume1: up 4+% in FY21 • Volume1: up 0-1% • Volume1: 1-2% CAGR 2022-2024 o Volumes stable in 4Q21 o Limited risk that system wide inflation will slow d
Slide 9: Conclusion: O-I Is an Attractive Investment
CONCLUSION: O-I IS AN ATTRACTIVE INVESTMENT MARKET, TRANSFORMATION MAGMA RESOLUTION OF OPPORTUNITY FOR INNOVATION & IMPROVES MARGINS, WILL UNLOCK LEGACY LIABILITIES HIGHER VALUATION ESG LEADER EARNINGS & ROIC SIGNIFICANT REDUCES RISK & THROUGH SOLID IN THE ATTRACTIVE GROWTH IMPROVES CASH EXECUTION A
Slide 10: Financial Appendix
FINANCIAL APPENDIX
Slide 11: Segment FX Impact on Earnings
SE GM E N T FX I MPACT O N E A R N INGS APPROXIMATE ANNUAL IMPACT ON FX RATES AT KEY POINTS EPS FROM 10% FX CHANGE Oct 22, AVG AVG AVG AVG 2021 3Q21 3Q20 4Q20 2020 EUR 0.13 EUR 1.16 1.18 1.18 1.20 1.15 MXN 0.04 MXN 20.18 20.16 22.08 20.44 21.56 BRL 0.04 BRL 5.65 5.23 5.39 5.43 5.21 COP 0.02 COP 3,77
Slide 12: Non-GAAP Financial Measures
N O N -GAA P F IN A N CIA L M E AS UR ES 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
Slide 13: Additional Reconciliations
A D D IT IONAL RE C O N CILIAT IO NS The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measures, adjusted earnings and adjusted earnings per share, for the year ending December 31, 2021 and all periods after, to its most directly comparable GAAP financial
Slide 14: O-I Sustainability Goals
O -I S US TA IN A BILI TY GOA L S Increase recycled content to 50% Reduce the amount of natural average by 2030. O-I is taking a resource used and reduce the We are committed to reducing tailored approach to increase generation of waste by reuse our global water usage 25% by recycled content rates a