O-i Glass, Inc. · NYSE:OI
O-i Glass — Investor Presentation (March 2021)
17 slides from O-i Glass's investor presentation, Mar 2, 2021
Slide 1: 1Q21 Capital Markets Presentation
1Q21 CAPITAL MARKETS PRESENTATION MARCH 3, 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 mea ning of Section 21E 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 ▪ Product innovation and NPD ▪ Complete the tactical divestiture program • $400 - $500M proceeds anticipated 2019 to 2021 ▪ Evaluate ex
Slide 6: Organized for Solid Execution
6 ORGANIZED FOR SOLID EXECUTION LEVERAGING ADVANCED CAPABILITIES BUILT IN RECENT YEARS Capital Structure Discipline Portfolio Optimization Management Systems Margin Expansion Marketing and Innovation Commercial Excellence ESG Breakthrough R&D People and Organization The Appendix includes more detail
Slide 7: Breakthrough R&D: MAGMA Reinvents How Glass Is Made
BREAKTHROUGH R&D MAGMA REINVENTS HOW GLASS IS MADE ● New capacity at lower capital commitment and intensity ● Total cost of ownership below legacy ● Increased scalability ● Rapid new capacity deployment and asset portability ● Production flexibility to support diversified offerings ● Competitively e
Slide 8: Re-Balancing the Packaging Dialogue
8 Our Structural Acceleration ● Enhanced Governance ● Expanded Initiatives & Goals ● Investments in Glass Advocacy & Recycling ● 2021 Sustainability report and expanded website disclosure Leading the Way ● Firsts: SBTI Emissions Target & Green Bond ● Innovating for change and sustainability with MAG
Slide 9: 2021 Business Trends and Outlook
9 2021 BUSINESS TRENDS AND 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: ~ $240M Outlook on Feb 10, 2021 The recent weather and ener
Slide 10: Conclusion
10 CONCLUSION BOLD STRUCTURAL ACTIONS TO ALIGN O - I TO FAVORABLE MARKET TRENDS AND CREATE SHAREHOLDER VALUE ■ TAKING BOLD STRUCTURAL ACTIONS TO CHANGE THE COMPANY’S BUSINESS FUNDAMENTALS ■ LEVERAGING ADVANCED CAPABILITIES TO IMPROVE PERFORMANCE AND MARGINS ■ ALIGNING GLASS WITH KEY MARKET TRENDS –
Slide 11: Financial Appendix
FINANCIAL APPENDIX
Slide 12: FX Impact on Earnings
12 FX IMPACT ON EARNINGS APPROXIMATE ANNUAL IMPACT ON FX RATES AT KEY POINTS EPS FROM 10% FX CHANGE Jan 31st Avg Avg 2021 1Q20 2020 EUR 0.13 EUR 1.21 1.10 1.15 MXN 0.04 MXN 20.35 20.74 21.56 BRL 0.03 BRL 5.44 4.64 5.21 COP 0.01 COP 3,558 3,655 3,715
Slide 13: Non-GAAP Financial Measures
13 NON - GAAP FINANCIAL MEASURES The company uses certain non - GAAP financial measures, which are measures of its historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. Management believes that its presen
Slide 14: Reconciliation for Adjusted Earnings
14 RECONCILIATION FOR ADJUSTED EARNINGS The reconciliation below describes the items that management considers not representative of ongoing operations. Unaudited 2020 2019 2020 2019 (29)$ 32$ 249$ (397)$ Items impacting cost of goods sold: Acquisition-related fair value inventory adjustments 1 Item
Slide 15: Reconciliation for Free Cash Flow
15 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
Slide 16: Organized for Solid Execution
16 ORGANIZED FOR SOLID EXECUTION LEVERAGING ADVANCED CAPABILITIES BUILT IN RECENT YEARS Management Systems • Integrated Business Planning (IBP) • End - to - end management system • Completed 3 - year implementation timeline • 3 - year rollup planning, synced with strategy • Advanced demand planning
Slide 17: O-I Sustainability Goals
17 O - I SUSTAINABILITY 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 g