O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Macquarie Capital 2015 Global Metals, Mining and Materials Conference
16 slides from O-i Glass's conference presentation, Jun 10, 2015
Slide 1: Macquarie Capital 2015 Global Metals, Mining and Materials Conference
Macquarie Capital 2015 Global Metals, Mining and Materials Conference Owens-Illinois, Inc. June 10, 2015
Slide 2: Safe Harbor Comments
Safe Harbor Comments Regulation G The information presented here regarding adjusted net earnings relates to net earnings from continuing operations attributable to the Company exclusive of items management considers not representative of ongoing operations and does not conform to U.S. generally acce
Slide 3: Safe Harbor Comments: Vitro's Food and Beverage Business Financial Information
Safe Harbor Comments Vitro’s Food and Beverage Business Financial Information The financial information the Company provides in this presentation for Vitro’s food and beverage business is unaudited and incorporates significant assumptions and estimates. This presentation contains historical financia
Slide 4: O-I: The only truly global glass container franchise
O-I: The only truly global glass container franchise #1 position in Europe #1 position in North America #1 position in Oceania1 #1 position in South America Leading position within SE Asia Foothold in China Emerging markets Mature markets Strong, brand-building partnerships with blue chip companies
Slide 5: Creating Shareholder Value
Creating Shareholder Value 4 Clear Competitive Advantage Stable End Markets Global presence Unparalleled expertise Steady glass demand Consumer preference for glass Strategic Imperatives Consistent Financial Performance Balanced Capital Allocation Operational excellence Expansion in attractive marke
Slide 6: Consistent end-market demand trends
Consistent end-market demand trends 5 Europe Stable end markets Exports outperform domestic demand Asia Pacific Demand stabilizing in Oceania Mid single-digit growth in China & SEA North America Growth wine, spirits, premium food and non-alcoholic beverages Ongoing decline in megabeer – strength in
Slide 7: Acquisition of Vitro food & beverage
Acquisition of Vitro food & beverage 6 A leading Mexican multi-segment glass packaging supplier Expands our franchise into a growing, strategic geography Expands top-tier customer base High margin business, in line with O-I South America performance Broadens relationship with CBI Strong value genera
Slide 8: 2Q15 adjusted EPS outlook
2Q15 adjusted EPS1 outlook Incremental headwinds, primarily in Brazil 7 2Q14 Adjusted EPS $0.80 Currency Impact -$0.16* Assumptions*: EUR = 1.10; BRL = 3.16; COP = 2,536; AUD = 0.77 2Q14 Adj. EPS – Constant Currency $0.64* Europe Stable sales volume vs strong comparable period Timing factors: produc
Slide 9: Financial highlights
Financial highlights 8 Adjusted earnings refers to earnings from continuing operations attributable to the Company, excluding items management does not consider representative of ongoing operations. Net interest expense is defined as interest expense less interest income, excluding charges for note
Slide 10: Continued balanced approach to use of cash
Continued balanced approach to use of cash 9 Capital Investment Capital Allocation Enhance productivity and flexibility Continue strong operating profit generation Maintenance Exceed cost of capital Non-organic growth (e.g., JV with CBI; Vitro F&B) Invest in R&D, technology and innovation Strategic
Slide 11: 2015 management priorities
2015 management priorities Advance leadership succession Execute key projects: JV in Mexico, EU asset optimization, Vitro F&B acquisition, and Kalama plant integration Progression in innovation: melting and forming technology Strategic Generate strong cash flows in local currencies Target $125M of s
Slide 12: Q&A
Q&A 11
Slide 13: Appendix
Appendix 12
Slide 14: Reconciliation of GAAP to non-GAAP items
Reconciliation of GAAP to non-GAAP items 13 Year ended December 31 $ Millions, except per-share amts 2014 2013 2012 2011 Earnings (loss) from continuing operations attributable to the Company $ 98 $ 202 $ 186 $ (501) Items that management considers not representative of ongoing operations Charge to
Slide 15: Vitro F&B pro forma adjusted EBITDA and transaction multiple calculation
Vitro F&B pro forma adjusted EBITDA and transaction multiple calculation Source: Based on Vitro management estimates Vitro F&B ($ millions) Pro forma revenue (3/31/15 LTM + estimate of full year 2016 new business signed in 2014) $ 945 Pro forma adjusted EBITDA (3/31/15 LTM + estimate of full year 20
Slide 16: Estimated impact from currency rate changes
Estimated impact from currency rate changes 15 Translation impact on EPS from a 10% change compared with the U.S. dollar EU (primarily Euro): ~$0.10 SA (primarily Brazilian Real and Colombian Peso): ~$0.09 AP (primarily Australian Dollar and New Zealand Dollar): ~$0.05
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