O-i Glass, Inc. · NYSE:OI
O-i Glass — Q1 2021 Earnings Presentation
21 slides from O-i Glass's earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021 Earnings
FIRST QUARTER 2021 EARNINGS APRIL 29, 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: Overview
OV E RV I EW RESULTS CONSISTENT WITH GUIDANCE DESPITE SEVERE WEATHER • 1Q21 aEPS1 was $0.35 compared to original guidance of $0.32 – $0.37 FAVORABLE UNDERLYING PERFORMANCE ACROSS BUSINESS LEVERS • Benefit of higher price offset cost inflation excluding weather related energy surcharges • 1Q21 shipme
Slide 4: Shipments Stabilize Across All Geographies
S H I P ME N TS S TAB I LIZ E AC RO S S AL L G E O G RAPHIE S EXPECTED VOLUME GROWTH: ≥ 15% 1Q21; 3% – 4% FY21 O-I SHIPMENT TRENDS (VS PY) EST. FOOD & BEV CONSUMPTION TRENDS BY CHANNEL 5% Pandemic 150 disruption 0% 125 111 108 103 Consumption Index 100 100 100 -5% 75 -10% O-I and Americas up 51 ~1.5
Slide 5: Enabling a New Period of Prosperity
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 ENABLING A NEW PERIOD OF PROSPERITY 2021 PRIORITIES 1Q21 HIGHLIGHTS ❶ MARGIN EXPANSION – STRONG OPERATING PERFORMANCE AND COST EFFICIENCIES $50M gross initiative benefits $35M benefits YTD, accelerated activity give
Slide 6: Glass: The World's Most Sustainable Package
G L AS S : T H E WO R L D’S M O S T S US TAI N ABLE PAC K AG E CONSUMERS VIEW GLASS AS HIGHLY SUSTAINABLE SURVEY OF CONSUMER VIEWS ON SUSTAINABILITY OF PACKAGING SUBSTRATES In a world where SUSTAINABILITY is more important than ever, we are proud to make an inherently SUSTAINABLE product. • Made fro
Slide 7: 1Q21 Results
1 Q 2 1 R E S ULT S EARNINGS IN LINE WITH ORIGINAL GUIDANCE 1Q21 aEPS WAS $0.35 VS. $0.41 IN PY AND $0.32 – $0.37 GUIDANCE SEGMENT • At mid-point of guidance range OPERATING PROFIT1 ($M) aEPS • Benefit of margin expansion initiatives substantially offset impact of severe weather in U.S./MX 1Q20 AS R
Slide 8: 1Q21 Segment Review
1Q21 SEGMENT REVIEW HIGHER PROFITS IN EUROPE WHILE AMERIC AS IMPACTED BY SEVERE WEATHER AMERICAS EUROPE ASIA PACIFIC1 SEGMENT SEGMENT SEGMENT OPERATING OPERATING OPERATING ($M) PROFIT COMMENTS PROFIT COMMENTS PROFIT COMMENTS 1Q20 $103 $61 $12 FX 4 6 — Divestitures — — (12) ▼ ANZ sale SUBTOTAL $107 $
Slide 9: FY21 FCF and Net Debt
2 0 2 1 F C F A N D C A P I TA L S T RU C T U R E FY21 FCF1 AND NET DEBT2 FAVORABLE TO PY HIGHER FCF AND LOWER NET DEBT FCF Progression 800 GUIDING PRINCIPLE PROGRESS 561 400 316 264 Maximize Free Cash Flow1 112 205 ($M) 0 FY21 FCF ~ $240M (20-25% conversion) 1Q21 FCF ($149)M vs ($435)M in PY DSO/DP
Slide 10: 2021 Business Outlook
2 0 2 1 BUS I N E S S O UT L O O K IMPROVING OUTLOOK AS MARKETS STABILIZE AND RECOVER 2Q21 EARNINGS OUTLOOK (aEPS) 2Q21 GUIDANCE: $0.45 – $0.50 aEPS COMPARED TO $0.01 IN PY 2Q • Prior year results reflected significant disruption due to the onset of the pandemic 2Q20 AS REPORTED $0.01 • Higher selli
Slide 11: Conclusion
C O N CLUS ION 1Q21 results in line with guidance despite weather issues Fav underlying performance across all business levers Advancing bold plan to change O-I’s business fundamentals Improving business outlook and volume growth 11
Slide 12: Financial Appendix
ae). FINANCIAL APPENDIX
Slide 13: 1Q21 Segment FX Impact on Earnings
1 Q 2 1 S E G M E N T F X I M PACT O N E AR N I N GS APPROXIMATE ANNUAL IMPACT ON FX RATES AT KEY POINTS EPS FROM 10% FX CHANGE Apr 27st AVG Avg Avg 2021 1Q21 2020 2Q20 EUR 0.09 EUR 1.21 1.20 1.15 1.11 MXN 0.03 MXN 20.04 20.64 21.56 22.98 BRL 0.03 BRL 5.45 5.58 5.21 5.38 COP 0.01 COP 3,716 3,627 3,7
Slide 14: Non-GAAP Financial Measures
N O N - GAAP F I N AN CIAL M E AS UR E S 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 15: Reconciliation to Earnings Before Income Taxes
R E C O N C I L I AT I O N TO E A R N I N G S B E F O R E I N C O M E TA X E S Three months ended Unaudited March 31 2021 2020 Net sales: Americas $ 837 $ 831 Europe 639 576 Asia Pacific - 123 Reportable segment totals 1,476 1,530 Other 24 31 Net sales $ 1,500 $ 1,561 (a) Segment operating profit :
Slide 16: Segment Reconciliations
S E G M E N T R E C O N CILIAT IONS 1Q PRICE,VOLUME AND CURRENCY IMPACT ON REPORTABLE SEGMENT SALES Three months ended March 31 Americas Europe Asia Pacific Total Net sales for reportable segments- 1Q20 $ 831 $ 576 $ 123 $ 1,530 Effects of changing foreign currency rates (a) (13) 48 35 Price 26 2 28
Slide 17: Reconciliation for Net Debt
R E C O N C I L I AT I O N F O R N E T D E B T Forecast for Three Months Ended Year Ended March 31, March 31, June 30, Sept 30, Dec 31, March 31, June 30, Sept 30, Dec 31, 2021 2020 2020 2020 2020 2019 2019 2019 2019 Dec 31, 2021 Total debt $ 5,348 $ 6,398 $ 6,507 $ 5,375 $ 5,142 $ 5,911 $ 6,331 $ 5
Slide 18: EBITDA and Free Cash Flow Reconciliations
E B I T DA AN D F R E E C AS H F L OW R E C O NCILIATIO NS RECONCILIATION TO EBIDTA The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measures, EBITDA, for the quarter ending June 30, 2021 and the year ending December 31, 2021, to its most directly compar
Slide 19: Reconciliation for Adjusted Effective Tax Rate
R E C O N C I L I AT I O N F O R A D J U S T E D E F F E C T I V E TA X R AT E Unaudited Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Earnings before income taxes (A) $ (65) $ 81 Items management considers not representative of ongoing operations 154 14 Adjusted Earnings (loss
Slide 20: Reconciliation for Adjusted Earnings
R E C O NCILIATIO N F O R AD J US T E D E AR N I N GS The reconciliation below describes the items that management considers not representative of ongoing operations. Unaudited Three months ended March 31, 2021 March 31, 2020 Net earnings (loss) attributable to the Company $ (97) $ 50 Items impactin
Slide 21: Reconciliation for 2Q20 Adjusted Earnings
R E C O NCILIATIO N F O R 2 Q 2 0 AD J US T E D E AR N I N GS Three months ended Unaudited June 30 2020 Earnings (loss) from continuing operations attributable to the Company $ (101) Items impacting other expense, net: Restructuring, asset impairment and other charges 71 Strategic transaction costs