O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Q2 2015 Earnings Presentation
16 slides from O-i Glass's earnings presentation, Jul 29, 2015
Slide 1: O-I Second Quarter 2015 Earnings Presentation
O-I Second Quarter 2015 Earnings Presentation July 30, 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
Safe Harbor Comments Presentation Note Unless otherwise noted, the information presented in this presentation reflects continuing operations only. Vitro’s Food and Beverage Business Financial Information The financial information the Company provides in this presentation for Vitro’s food and beverag
Slide 4: Second quarter 2015 summary
Adjusted EPS of $0.60; within $0.55-$0.60 guidance Shipments down 1% versus strong comparable period Segment profit (constant currency1) consistent with management guidance Stable operating performance in NA and AP Project work and price pressure weigh on Europe Lower volume impacts South America Im
Slide 5: Europe and North America 2Q performance
4 Weaker Euro vs USD reduced operating profit by 17% Shipments flat to prior year Lower average selling prices Planned production downtime Asset optimization activities Heavy furnace rebuild schedule North America Europe Sales volume up ~2% Low single-digit decline in beer All other categories up Di
Slide 6: South America and Asia Pacific 2Q performance
South America and Asia Pacific 2Q performance 5 Currency headwinds reduced operating profit by 21% Shipments2 down 10% due to Brazil World Cup demand in prior year Current economic slowdown Price increases offset inflation Asia Pacific South America Stronger USD reduced operating profit by 24% Sales
Slide 7: 2Q15 Adjusted EPS bridge
2Q15 Adjusted EPS bridge 7 Adjusted Earnings Per Share 2Q14 Adjusted EPS $0.80 Currency (0.15) 2Q14 at constant currency1 0.65 Segment operating profit (0.19) Retained corporate costs 0.05 Net interest expense 0.02 Effective tax rate 0.05 Share count reduction 0.02 Total reconciling items (0.05) 2Q1
Slide 8: Purposeful capital structure management
1 Related to the “amortization of actuarial loss” component of pension expense. 2 Net interest expense is defined as interest expense less interest income, excluding charges for note repurchase premiums and write-off of deferred finance fees (excluded charges were $20 million in 2014 and $28 million
Slide 9: 3Q15 Adjusted EPS outlook
3Q15 Adjusted EPS outlook 9 3Q14 Adjusted EPS $0.75 Currency Impact ($0.15) Assumptions:1 EUR = 1.12; BRL = 3.12; COP = 2,589; AUD = 0.77 3Q14 Adjusted EPS – Constant Currency $0.60 Europe Sales volume essentially flat Lower prices due to annual contracts; similar prices to 2Q15 Carryover project wo
Slide 10: 2015 EPS and FCF guidance
2015 adjusted EPS guidance narrowed to $2.00 – $2.20 Macro pressures in Europe and Brazil 2015 FCF guidance stays ~$250 million Same level of FCF generated in 2014 in local currency terms Non-operational items offset less cash flow from working capital and operations 2015 guidance excludes potential
Slide 11: Update on proposed Vitro F&B acquisition
Update on proposed Vitro F&B acquisition 11 Clear value-added transaction Expected EPS accretion of $0.30 - $0.401 in Year 1 Expected to grow to ~$0.50 in Year 3, as synergies are realized Expected FCF accretion of >$100 million in Year 3 Transaction currently expected to close in 2H15 Vitro shareho
Slide 12: 2015 management priorities
2015 management priorities Advance leadership succession at multiple levels Execute key projects: Vitro F&B closing and integration, JV with CBI in Mexico, EU asset optimization Progression in innovation: melting and forming technology Strategic Generate strong cash flows in local currencies ~$250M
Slide 13: Appendix
Appendix 13
Slide 14: Price, volume and currency impact on reportable segment sales
Price, volume and currency impact on reportable segment sales 14 1 Reportable segment sales exclude the Company’s global equipment business $ Millions Europe North America South America Asia Pacific Total1 2Q14 Segment Sales $790 $541 $274 $184 $1,789 Currency (144) (6) (63) (27) (240) 2Q14 at const
Slide 15: Reconciliation to adjusted earnings and constant currency
Reconciliation to adjusted earnings and constant currency 15 (1) Currency effect on earnings determined by using month-end foreign currency exchange rates in the three and six month periods ended June 30, 2015 to translate the local currency results for the same periods in 2014. The reconciliation b
Slide 16: Estimated impact from currency rate changes
Estimated impact from currency rate changes 16 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