O-i Glass, Inc. · NYSE:OI
O-i Glass — Q1 2022 Earnings Presentation
21 slides from O-i Glass's earnings presentation, Apr 26, 2022
Slide 1: First Quarter 2022 Earnings
FIRST QUARTER 2022 EARNINGS APRIL 26,2022
Slide 2: Safe Harbor Comments
SAFE HARBOR COMMENTS FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking” statements related to O-I Glass, Inc. (“O-I” or 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
Slide 3: Overview: 1Q22 Results Exceeded Guidance and Prior Year
OV E RV I EW 1Q22 RESULTS EXCEEDED GUIDANCE AND PRIOR YEAR • 1Q22 aEPS1 was $0.56 compared to guidance of $0.38-$0.43 and prior year of $0.35 STRONG YEAR-OVER-YEAR • Stronger than anticipated shipment and production levels PERFORMANCE IMPROVEMENT (1Q22 VS 1Q21) FAVORABLE PERFORMANCE ACROSS ALL KEY B
Slide 4: Shipments Exceeded Pre-pandemic Levels
S AL E S VO L UM E T R E N DS Shipments Exceeded Pre-pandemic Levels SALES VOLUME TREND (IN TONS, ADJUSTED FOR DIVESTITURES) 1Q22: STRONG DEMAND EXCEEDED EXPECTATIONS 25% • Shipments (in tons) increased 6.4% vs 1Q21 (AM +3.1% and EU +9.9%) • Continued strong demand trend started in 4Q21; 1Q22 +5.2%1
Slide 5: 2022 Key Objectives: Accelerating O-I's Transformation
2022 KEY OBJECTIVES Accelerating O-I’s Transformation PRIORITIES 2022 KEY OBJECTIVES PROGRESS MARGIN Higher selling prices offset PY unfav Net Price and 2022 inflation ▲ Fav 1Q22 Net Price, on track to achieve FY22 guidance EXPANSION ≥ $50M margin expansion initiative benefits ▲ $8M 1Q22 initiat
Slide 6: Agility Amid Elevated Uncertainty / Volatility
AG I L I T Y A M I D E L E VAT E D U N C E RTA I N T Y / VO L AT I L I T Y SUPPLY AGILITY Long-term structural approach to cost management COMMERCIAL AGILITY Implementing 2nd price increase amid elevated cost inflation OPERATIONAL AGILITY Increase speed / efficiency to support strong demand FINANCIA
Slide 7: Earnings Improved Significantly from PY and Exceeded Guidance
1Q22 RESULTS VS. 1Q21 Earnings Improved Significantly from PY and Exceeded Guidance SEGMENT AMERICAS EUROPE OPERATING EARNINGS UP SIGNIFICANTLY FROM PRIOR YEAR ($M Except aEPS and Margins) SEGMENT SEGMENT PROFIT1 aEPS • Favorable net price, sales volume and operating performance 1Q21 AS REPORTED $10
Slide 8: FY Financial Priorities: Higher FCF and Lower Financial Leverage
F Y 2 2 F I N AN CIAL P R I O RITIE S HIGHER FCF 1 AND LOWER FINANCIAL LEVERAGE 3 Fund Expansion, Improve Balance Sheet FCF $400 GUIDING PRINCIPLE PROGRESS 205 213 264 $200 112 117 101 OPTIMIZE FCF1 and aFCF1 $0 ($M) Generate ≥ $125M FCF & $350M aFCF in 2022 ▲ 1Q22 FCF fav to historic levels 25%
Slide 9: Expect 2Q22 Earnings In line with PY
BUS I N E S S O UT L O O K Expect 2Q22 Earnings In line with PY 2Q22 EARNINGS OUTLOOK (aEPS) 2Q21 AS REPORTED $0.54 FX1 ▼ 2Q22 OUTLOOK: HIGHER EARNINGS Divestitures2 / Paddock Tableware & LeParfait sale ▼ 524(g) trust funding 2Q22 • aEPS: $0.55-$0.60 vs $0.54 in 2Q21 SUBTOTAL ~ $0.50 • Continued fav
Slide 10: Conclusion
C O N CLUS ION • 1Q22 RESULTS EXCEEDED GUIDANCE AND PRIOR YEAR • FAVORABLE 1Q22 PERFORMANCE ACROSS KEY BUSINESS LEVERS • FOCUSED ON NEAR-TERM CATALYSTS TO ACCELERATE O-I’S TRANSFORMATION • EXPECT IMPROVING RESULTS IN 2022 10
Slide 11: Appendix
APPENDIX
Slide 12: Paddock Chapter – Progress and Update
PAD D OCK C H AP TE R 1 1 – P RO G RE S S AN D UP DAT E 1 Vote certified – April 25th; Confirmation hearing – May 16th • Phase 1: Paddock files for bankruptcy protection in Delaware and obtains initial relief • Phase II: Paddock informally negotiates with the Asbestos Claimants’ Committee and Future
Slide 13: O-I ESG Goals
O - I E S G G OAL S Increase recycled content to 50% Reduce the amount of natural average by 2030. O-I is taking a resource used and reduce the We are committed to reducing tailored approach to increase generation of waste by reuse our global water usage 25% by recycled content rates across its and
Slide 14: Segment FX Impact on Earnings
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 22, AVG AVG 2022 1Q22 1Q21 EUR 0.16 EUR 1.08 1.12 1.20 MXN 0.06 MXN 20.21 20.43 20.64 BRL 0.04 BRL 4.62 5.10 5.58 COP 0.01 COP 3,774 3,870 3,627 14
Slide 15: 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 16: Reconciliation to Adjusted Earnings
R E C O N C I L I AT I O N TO A D J U S T E D E A R N I N G S 16
Slide 17: 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 Total Net sales for reportable segments- 1Q21 $ 837 $ 639 $ 1,476 Effects of changing foreign currency rates (a) 5 (42) (37) Price 80 60 140 Sales volume &
Slide 18: Reconciliation for Segment Operating Profit
R E C O NCILIATIO N F O R S E G M E N T O P E R AT ING P RO F IT 18
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 19
Slide 20: Reconciliation to Financial Leverage
R E C O N C I L I AT I O N TO F I N A N C I A L L E V E R AG E 20
Slide 21: Additional Reconciliations
AD D I TIO NAL R E C O NCILIATIO NS RECONCILIATION TO EBITDA RECONCILIATION TO FREE CASH FLOW & ADJUSTED FREE CASH FLOW 21