O-i Glass, Inc. · NYSE:OI
O-i Glass — Investor Presentation (February 2021)
16 slides from O-i Glass's investor presentation, Feb 23, 2021
Slide 1: 1Q21 Capital Markets Presentation
1Q21 CAPITAL MARKETS PRESENTATION FEBRUARY 23, 2021
Slide 2: Safe Harbor Comments
2 SAFE HARBOR COMMENTS Forward - Looking Statements This presentation contains “forward - looking” statements related to O - I Glass, Inc. (“O - I Glass” or the “company”) within the meaning of Section 21 E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of th
Slide 3: O-I at a Glance
3 $6.1 BILLION in net sales in 2020 72 factories 20 countries O - I AT A GLANCE 2020 PRODUCT PORTFOLIO 34% beer 19% wine 15% spirits 13% NAB 19% food 25,000+ employees worldwide GLASS IS THE MOST sustainable rigid packaging option Note: based on 2020 data 6,000 + direct customers MAGMA revolutionize
Slide 4: 2020 Key Accomplishments
4 2020 KEY ACCOMPLISHMENTS ■ Executing the Strategic and Tactical divestiture programs including ANZ sale; reducing debt • Anticipate total proceeds ~ $1.1B, including $677 million from ANZ and $400 - $500 million from Tactical divestitures upon complet ion ■ Improved financial flexibility despite p
Slide 5: 2021 Priorities
1 3 2 5 2021 PRIORITIES BOLD STRUCTURAL ACTIONS TO CHANGE O - I’S BUSINESS FUNDAMENTALS ▪ Validate MAGMA Gen 1 in Germany ▪ Glass advocacy campaign ▪ Reposition ESG ▪ Complete the tactical divestiture program • $400 - $500M 2019 to 2021 ▪ Evaluate expansion initiatives • Potentially funded by increm
Slide 6: Shipments Stabilize Across All Geographies
6 SHIPMENTS STABILIZE ACROSS ALL GEOGRAPHIES EXPECT SHIPMENTS WILL IMPROVE 2 - 4% IN 2021 AS POPULATION IS VACCINATED AND MARKETS GRADUALLY REOPEN -20% -15% -10% -5% 0% 5% Q1 Q2 Q3 Q4 2020 O - I Shipment Trends (vs PY) O-I AM EU Note: Volumes are on a year over year and same structure basis excludin
Slide 7: 2021 Business Outlook
7 2021 BUSINESS OUTLOOK EXPECT 2021 SALES VOLUMES, EARNINGS AND CASH FLOWS WILL SIGNIFICANTLY IMPROVE FROM 2020 LEVELS FY21 Sales Vol: + 2 to 4% 1Q21 Sales Vol: ~ Flat FY21 aEPS : $1.55 to $1.75 1Q21 aEPS : $0.32 to $0.37 FY21 FCF: ~ $240M The recent weather and energy crisis in the southern U.S. is
Slide 8: Glass: The World's Most Sustainable Package
GLASS: THE WORLD’S MOST SUSTAINABLE PACKAGE In a world where sustainability is more important than ever, we are proud to make an inherently sustainable product. ● Made from four basic, natural, inert ingredients ● Does not impact the product’s taste or integrity ● Only food contact material ‘General
Slide 9: 2020-2021 ESG Acceleration
9 2020 - 2021 ESG ACCELERATION Our Structural Acceleration ● Enhanced Rigor of Board Governance ● Appointed CSO mid - 2020 ● Established Internal Global Sustainability Network ● Created Executive Diversity & Inclusion Council and signed the CEO action pledge ● 2021 Sustainability report and expanded
Slide 10: Sustainability Goals
10 O - I SUSTAINABITLY GOALS Increase recycled content to 50% average by 2030. O - I is taking a tailored approach to increase recycled content rates across its enterprise network as rates vary significantly by geography. Renewable energy is a pillar in our strategy to lower carbon emissions. Our go
Slide 11: Conclusion
11 2020 results above most recent guidance Clear priorities for 2021 Stable demand amid ongoing pandemic 2021 results to significantly improve from prior year Glass – The worlds most sustainable package CONCLUSION Sustainability Message
Slide 12: Financial Appendix
FINANCIAL APPENDIX
Slide 13: FX Impact on Earnings
13 FX IMPACT ON EARNINGS APPROXIMATE ANNUAL IMPACT ON FX RATES AT KEY POINTS EPS FROM 10% FX CHANGE Jan 31st Avg Avg 2021 1Q20 2020 EUR 0.13 EUR 1.21 1.10 1.15 MXN 0.04 MXN 20.35 20.74 21.56 BRL 0.03 BRL 5.44 4.64 5.21 COP 0.01 COP 3,558 3,655 3,715
Slide 14: Non-GAAP Financial Measures
14 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 that its presen
Slide 15: Reconciliation for Adjusted Earnings
15 RECONCILIATION FOR ADJUSTED EARNINGS The reconciliation below describes the items that management considers not representative of ongoing operations. Unaudited 2020 2019 2020 2019 (29)$ 32$ 249$ (397)$ Items impacting cost of goods sold: Acquisition-related fair value inventory adjustments 1 Item
Slide 16: Reconciliation for Free Cash Flow
16 RECONCILIATION FOR FREE CASH FLOW Forecast for Year Ended March 31, 2020 June 30, 2020 Sept 30, 2020 Dec 31, 2020 March 31, 2019 June 30, 2019 Sept 30, 2019 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 Dec 31, 2021 Cash provided by (utilized in) continuing operating activities (315)$ 181$ 262$ 329$ (59