O-i Glass, Inc. · NYSE:OI
O-i Glass — Investor Presentation (September 2020)
15 slides from O-i Glass's investor presentation, Sep 15, 2020
Slide 1: 3Q20 Capital Markets Presentation
SEPTEMBER 16, 2020 3Q20 CAPITAL MARKETS PRESENTATION
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 Glass, Inc. at a Glance
3 FOUNDED IN 1903 As Owens Bottle Company OPERATING IN 2 REGIONS: Americas and Europe $6.2 BILLION in net sales in 2019* 5000+ direct customers O - I GLASS, INC AT A GLANCE MAGMA revolutionize glass making 72 factories 20 countries LEADING GLOBAL glass container supplier 69% OF NET SALES* from 2019
Slide 4: Executing Value Creation Thesis
1 3 2 4 EXECUTING O - I GLASS VALUE CREATION THESIS BOLD STRUCTURAL ACTIONS TO CHANGE O - I’S BUSINESS FUNDAMENTALS ● Turnaround initiatives ~ $46M benefit 1H20 ● Focus factories ~ 4% higher efficiency 1H20 ● Gen 1 MAGMA in Germany on track 1Q21 ● Pave way for Gen 1 deployment in 2022 ● Divested ANZ
Slide 5: Responding to Pandemic with Speed and Agility
5 RESPONDING TO PANDEMIC WITH SPEED AND AGILITY O - I’S 2020 COVID RESPONSE PLAN TARGETS SIGNIFICANT SAVINGS SPANNING 28 DIFFERENT LEVERS TO HELP MITIGATE IMPACT OF PANDEMIC Align Supply with Demand • Swift action • IDS ≤ PY by 3Q • Optimizing network • Reducing cost absorption Operating Efficiency
Slide 6: Shipment Trends Normalizing Across All Geographies
6 SHIPMENT TRENDS NORMALIZING ACROSS ALL GEOGRAPHIES O - I’S SHIPMENT TRENDS ARE IMPROVING AS MARKETS REOPEN AND SUPPLY CHAINS ADJUST TO SOLID UNDERLYING CONSUMPTION PATTERNS -30% -20% -10% 0% 10% Jan Feb Mar Apr May Jun Jul Aug O - I Shipment Trends (vs PY) O-I AM EU 3Q20 volumes trending flat to u
Slide 7: Business Outlook Improving
7 BUSINESS OUTLOOK IMPROVING 3Q20 SALES VOLUME OUTLOOK WHILE UNCERTANTIES REMAIN WITH COVID - 19 Given COVID - 19 uncertainties, guidance limited to sales volume outlook ● Significant earnings sensitivity to volume volatility ● Will consider reinstating financial guidance in the future when market t
Slide 8: 2020 Capital Allocation Considerations
8 2020 CAPITAL ALLOCATION CONSIDERATIONS CAPITAL ALLOCATION GUIDING PRINCIPLES (435) 112 (716) (179) 316 561 (800) (400) 0 400 800 1Q 2Q 3Q 4Q ($M) FCF Progression 2020 Qtr FCF 2019 Qtr FCF 5.5 5.4 5.6 6.0 5.6 5.0 4.5 4.8 5.0 5.3 5.5 5.8 6.0 6.3 1Q 2Q 3Q 4Q ($B) Net Debt Progression 2020 Qtr Net Deb
Slide 9: Conclusion
9 ▶ Responding to COVID - 19 with speed and agility • Strong operating performance has continued through 3Q ▶ Demand recovering as markets reopen ▶ Improving business outlook ▶ Bold actions to create long - term value ▶ Stronger, leaner O - I enterprise emerging CONCLUSION
Slide 10: Appendix
APPENDIX
Slide 11: Revolutionizing Glass: A New Business Model for Glass Packaging
REVOLUTIONIZING GLASS A NEW BUSINESS MODEL FOR GLASS PACKAGING MAGMA Development (2019 – 2022+) Generation 1 Generation 2 Generation 3 MAGMA Melter Modular end - to - end system ( melter , forming, etc ) Optimized modular end - to - end system (automation, digitization, etc ) Limited Locations Expan
Slide 12: Historic Revenues Excluding ANZ
12 HISTORIC REVENUES EXCLUDING ANZ $ millions Consolidated O - I Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 Q2 2020 LTM June 30, 2020 Net Sales $ 1,638 $ 1,756 $ 1,670 $ 1,628 $ 6,691 $ 1,561 $ 1,418 $ 6,276 ANZ Net Sales 131 122 128 153 534 123 106 510 Ongoing (Consolidated O - I less ANZ) Net
Slide 13: FX Impact on Earnings
13 FX IMPACT ON EARNINGS APPROXIMATE ANNUAL TRANSLATION IMPACT ON EPS FROM 10% FX CHANGE EUR $0.07 MXN $0.01 BRL $0.01 COP $0.01 AUD $0.00 FX RATES AT KEY POINTS AUG 31, 2020 AVG 2019 EUR 1.19 1.12 MXN 21.92 19.32 BRL 5.49 3.95 COP 3,740 3,299 AUD 0.74 0.70
Slide 14: Non-GAAP Financial Measures
14 NON - GAAP FINANCIAL MEASURES The company uses certain non - GAAP financial measures, which are measures of its historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. Management believes that its presen
Slide 15: Reconciliation for Net Debt and Quarterly Free Cash Flow
15 RECONCILIATION FOR NET DEBT RECONCILIATION FOR QUARTERLY FREE CASH FLOW Dollars in millions March 31, 2020 June 30, 2020 March 31, 2019 June 30, 2019 Sept 30, 2019 Dec 31, 2019 Cash provided by (utilized in) continuing operating activities (315)$ 181$ (595)$ (67)$ 416$ 654$ Cash payments for prop