O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Q3 2010 Earnings Presentation
15 slides from O-i Glass's earnings presentation, Oct 28, 2010
Slide 1: O-I Earnings Presentation Third Quarter 2010
O-I Earnings Presentation Third Quarter 2010 October 27, 2010
Slide 2: Introduction, Regulation G and Forward Looking Statements
Introduction Agenda Business discussion Financial review Business outlook Concluding remarks and Q&A Presenters Regulation G The information included in this presentation regarding adjusted net earnings relates to net earnings attributable to the Company exclusive of items management considers not r
Slide 3: Third-Quarter 2010 Results
Third-Quarter 2010 Results $0.90/sh EPS, down from 3Q09 $0.94/sh EPS excluding currency translation Total shipments down 2.4% YoY Up slightly excluding impact of contract renegotiations Improved regional mix mostly offset effect of lower volume Higher cost inflation and facility start-up costs Posit
Slide 4: Higher Margin Driven by South America
Higher Segment Operating Profit Margin Driven by South America ($millions) 3 3Q10 Business Discussion - Segment Operating Profit - Margins 17.0% $128 $64 $83 $317 $42 $308 $123 $71 $79 $35 $299 $71 $77 $113 $38 $0 $50 $100 $150 $200 $250 $300 $350 Total Europe North America South America Asia Pacifi
Slide 5: O-I Volume Up YTD Through 3Q10 Excluding Impact of Pricing Actions
O-I Volume Up YTD Through 3Q10 Excluding Impact of Pricing Actions Trends not indicative of secular shift in packaging 3Q10 Business Discussion - Volume Trends - Source: IRI/Infoscan (US), Key Customer Reported Trends 1H10 (Western Europe), Nielsen (Australia) Note: Beer in Mature Markets: North Ame
Slide 6: Improved Regional Mix Mostly Offset Impact of Lower Volume
Improved Regional Mix Mostly Offset Impact of Lower Volume 1 Reportable segment sales exclude $9 million of revenue, principally for the Company’s global equipment sales business. 2 Contractual cost pass-through provisions also include the transfer of third-party costs, such as shipping, to customer
Slide 7: Free Cash Flow Reflects Seasonal Trends, Timing of Capex
Change in FCF: 1Q10: ($72M) 2Q10: $10M 3Q10: $75M YTD: $13M Free Cash Flow Reflects Seasonal Trends, Timing of Capex (2) ($millions) 1 Free cash flow equals cash provided or used by operating activities less capital spending. 2 Other operating items is comprised of retained corporate costs, noncontr
Slide 8: Issued Eurobonds to Fund Strategic Growth
Issued Eurobonds to Fund Strategic Growth 3Q10 Financial Review - Balance Sheet and Cash Flow - Highlight of Select Balance Sheet and Cash Flow Items ($ Millions) Strategic Activities 1 Total debt less cash divided by bank credit agreement EBITDA. Current bank covenants require a maximum ratio of 3.
Slide 9: Updated Business Outlook
Updated Business Outlook (1) 1 All items are estimates; all estimates are approximate; estimates are subject to change throughout the period. Reported results can be significantly affected by changing foreign currency exchange rates. 2 The Company’s business outlook for 4Q10 does not include any pot
Slide 10: Aggressive but Achievable Targets
Aggressive but Achievable Targets $5.7B $7.5B $9.0-$9.5B 13.2% 14.6% 16-18% Revenue Segment Operating Profit Margins Key Financial Targets O-I’s Three-Year Financial Targets Strategic Events Completed (as of 3Q10) Rosario, Argentina (1 plant) Joint venture in Southeast Asia/China CIV, Brazil (3 plan
Slide 11: Appendix 3Q10
Appendix 10 3Q10 Earnings Presentation
Slide 12: Reconciliation of GAAP to non-GAAP Items (3Q10)
Reconciliation of GAAP to non-GAAP Items (3Q10) 11 Appendix Three months ended September 30 $ Millions, except per-share amounts Earnings EPS Earnings EPS Net income attributable to the Company 138.7 $ 0.84 $ 126.7 $ 0.74 $ Charges for acquisition transaction costs and fair 9.4 0.06 value inventory
Slide 13: Reconciliation of GAAP to non-GAAP Items (YTD 3Q10)
Reconciliation of GAAP to non-GAAP Items (YTD 3Q10) 12 Appendix Nine months ended September 30 $ Millions, except per-share amounts Earnings EPS Earnings EPS Net income attributable to the Company 365.1 $ 2.18 $ 321.1 $ 1.89 $ Charges for acquisition transaction costs and fair 9.4 0.06 value invento
Slide 14: Free Cash Flow
Free Cash Flow (1) Free Cash Flow equals cash provided by operating activities less capital spending. Appendix 13 $ Millions 2010 2009 2010 2009 Net earnings 150.7 $ 129.0 $ 400.0 $ 350.3 $ Non-cash charges: Depreciation and amortization 105.4 104.1 304.0 299.6 Restructuring and asset impairment - 5
Slide 15: Foreign Currency Exchange Rate Trends
Foreign Currency Exchange Rate Trends 1 Average exchange rate for the quarter. 2 Excludes the impact of remeasuring net monetary assets in Venezuela. (1) 14 Appendix FX Translation Impact on Sales, Segment Operating Profit and Non-GAAP EPS (Compared to prior year) U.S. Dollar Versus Key Currencies A