Slide 1: Capital Markets Presentation Fourth Quarter 2024
CAPITAL MARKETS PRESENTATION Fourth Quarter 2024
Slide 2: Presenters
PRESENTERS Gordon Hardie John Haudrich President and CEO SVP and CFO 2
Slide 3: Safe Harbor Comments
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 meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 27A of the Securiti
Slide 4: O-I at a Glance
O-I AT A GLANCE GLOBAL LEADER IN GLASS PACKAGING FOCUSED ON WINNING WITH CUSTOMERS, IMPROVING ECONOMIC PROFIT, AND INCREASING THE VALUE OF THE COMPANY 36 glass containers manufactured in 2023 6,000 Sustainability Leadership ~23,000 employees #1 BILLION customers across a broad product portfolio is d
Slide 5: O-I Serves the Brands You Trust and Love
O-I SERVES THE BRANDS YOU TRUST AND LOVE LEADING CUSTOMER RELATIONSHIPS, DESIGN CAPABILITIES AND SERVICE LEVELS 5
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW PRIVILEGED FOOTPRINT WITH DEEP TECHNICAL AND MANUFACTURING CAPABILITIES 2023 AMERICAS EU Category Mix Net Sales ($B) $3.9 $3.1 $7.1 Beer 32% # Plants 32 34 68 # Countries 7 10 19 Wine 19% Long Term Contracts 75% 35% 55% Food 17% Long Term CAGR1 -1% to +2% 0% to 1% 0% to 1% NAB 16%
Slide 7: Competitive Glass Offering Leverages Mega Trends
COMPETITIVE GLASS OFFERING LEVERAGES MEGA TRENDS Increased demand Health and CPG innovation Glass is the most for premium wellness favors and diversification sustainable rigid beverages glass over plastics of product portfolios packaging Glass Metal Plastics 7 Favorable Neutral Unfavorable
Slide 8: Value Creation Roadmap
VALUE CREATION ROADMAP IMPROVEMENT DRIVEN BY ‘SELF HELP’ RATHER THAN MARKET RECOVERY ECONOMIC PROFIT MINDSET CAPTURING MORE OF THE ECONOMIC PROFIT PRELIMINARY 2027 TARGETS¹ IN THE PACKAGING VALUE CHAIN Horizon 3 (2028+) STRATEGIC Sustainable aEBITDA ≥ $1.45B OPTIONALITY Horizon 2 BUILD VALUE FCF ≥ 5
Slide 9: Horizon 1: Fit to Win
HORIZON 1: FIT TO WIN EXPECT ≥ $175M OF SAVINGS IN 2025 OF ≥ $300 MILLION PHASE A TARGET SAVINGS BY 2027 BENEFITS MILESTONES 2027 Target: >$300M SAVINGS • Rapidly reducing excess inventory: – Curtailed 18% of capacity in 3Q24; IDS down 17% to 59 (low 50s by FYE24) PHASE A • Initial Network Optimizat
Slide 10: Monetizing MAGMA
MONETIZING MAGMA MAGMA CONTINUES TO ADVANCE WITH INCREASED FOCUS ON ACCELERATING ECONOMIC PROFIT GEN 2 MAGMA GREENFIELD (Bowling Green, KY) ► MAGMA CORE TECHNOLOGY WORKS ► RAMPING UP MAGMA GEN 2 GREENFIELD IN BOWLING GREEN ► ACCELERATING MAGMA TO ECONOMIC PROFIT 10
Slide 11: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION FCF PROFILE (PRIOR TO ASBESTOS PAYMENTS) 2013 - 2022 More than $1.5B was spent on 2023 asbestos-related GET FIT TO WIN payments 48% 52% IMPROVE CAPITAL STRUCTURE 100% Asbestos-related payments Unencumbered cash Unencumbered cash RETURN VALUE TO SHAREHOLDERS FOLLOWING F
Slide 12: Current Market Update
CURRENT MARKET UPDATE O-I IS NOT UPDATING GUIDANCE MARKETS GRADUALLY IMPROVING AMID SLUGGISH CONSUMER CONSUMPTION TRENDS FIT TO WIN EXPECTED TO DRIVE HIGHER 2025 EARNINGS AND CASH FLOW • Cautious on commercial factors until see clear signs of improved consumption • Anticipate ~ $175 million of favor
Slide 13: Key Catalysts
CONCLUSION 1 O-I Is The Global Leader In Glass Packaging KEY CATALYSTS 2 Setting The Stage For Solid Recovery In 2025 and Beyond • Execute Fit to Win Program 3 Rapidly Implementing Initial Fit To Win Priorities • Drive Capital Discipline • Deliver Profitable Growth 4 Determined to Improve Company Va
Slide 14: Appendix
APPENDIX
Slide 15: Historic Financial Performance
HISTORIC FINANCIAL PERFORMANCE SALES ($B) aEPS $6,856 $7,105 $3.09 $6,091 $6,357 $2.30 $1.83 $1.22 2020 2021 2022 2023 2020 2021 2022 2023 FCF AND CAPEX ($M) FINANCIAL LEVERAGE ~ 50% $688 Strategic$800 5.5 CapEx $700 $539 $600 4.4 $398 $500 3.5 $311 $400 2.9 $300 2.5 $282 $200 $236 $100 $146 $130 $-
Slide 16: Our Sustainability Goals
OUR SUSTAINABILITY GOALS ZERO INJURIES SUPPLY CHAIN SUSTAINABILITY As part of our journey toward zero injuries, we are Achieve sustainability balance, together, by aligning committed to a 50% improvement of our Total our supply chain with our 2030 sustainability vision Recordable Incident Rate (TRIR
Slide 17: Non-GAAP Financial Measures
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 presentation
Slide 18: Reconciliation to Adjusted Earnings
RECONCILIATION TO ADJUSTED EARNINGS The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, adjusted earnings and adjusted earnings per share, for periods beyond the year ended December 31, 2023 to its most directly comparable GAAP financial measure, N
Slide 19: Reconciliation for Segment Operating Profit
RECONCILIATION FOR SEGMENT OPERATING PROFIT 19
Slide 20: Reconciliation to Net Debt and Financial Leverage Ratios
RECONCILIATION TO NET DEBT AND FINANCIAL LEVERAGE RATIOS 20
Slide 21: Free Cash Flow Profile (Prior to Asbestos Payments) Reconciliation
FREE CASH FLOW PROFILE (PRIOR TO ASBESTOS PAYMENTS) RECONCILIATION 21
Slide 22: Reconciliation to Free Cash Flow
RECONCILIATION TO FREE CASH FLOW The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measures, free cash flow, for all periods after December 31, 2024 to its most directly comparable U.S. GAAP financial measure, cash provided by operating activities, withou
Slide 23: Additional Reconciliation
ADDITIONAL RECONCILIATION RECONCILIATION TO FINANCIAL AND NET DEBT LEVERAGE RATIOS For the periods ending after December 31, 2023, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measures, total financial leverage ratio and net debt leverage ratio, whic