O-i Glass, Inc. · NYSE:OI
O-i Glass — Q2 2023 Earnings Presentation
23 slides from O-i Glass's earnings presentation, Aug 2, 2023
Slide 1: Second Quarter 2023 Earnings
SECOND QUARTER 2023 EARNINGS AUGUST 1, 2023
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 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 3: Overview
OVERVIEW 2Q23 aEPS of $0.88 Exceeded Management Guidance ADJUSTED EPS $1.00 2Q23 ADJUSTED EARNINGS EXCEEDED GUIDANCE AND PRIOR YEAR $0.88 Guidance: Strong net price realization in both the Americas and Europe $0.80 $0.80 - $0.85 $0.73 Solid operating performance and O-I’s margin expansion initia
Slide 4: Recent Sales Trends
RECENT SALES TRENDS 2Q23 Segment Net Sales Up 7% O-I SEGMENT NET SALES: 2Q23 VS 2Q22 CONSUMER RETAIL TRENDS 1 HIGHER PRICE MORE THAN OFFSET LOWER SALES VOLUME MIXED CONSUMPTION PATTERNS BY MARKET AND CATEGORY EXPECT TRENDS WILL BE CHOPPY 15% 15% 13% Examples of Key Markets and Categories Retail Sale
Slide 5: Long-Term Glass Growth
LONG-TERM GLASS GROWTH Fundamental Growth Amid Significant Ongoing Market Volatility FAVORABLE LONG-TERM TRENDS BENEFIT GLASS O-I LONG-TERM SALES VOLUME TRENDS 1 Premiumization; Health and wellness; Sustainability; At home dining O-I GROWING ~ 1.5% CAGR (2016-2022) Pandemic Recovery & Expansion Pr
Slide 6: 2023 Key Objectives
2023 KEY OBJECTIVES All Key Initiatives Progressing Well PRIORITIES 2023 OBJECTIVES 2023 PROGRESS MARGIN ≥ $150M net price realization (excl. margin expansion initiatives) ▲ $350M YTD net price realization ($324M excl. margin expansion initiatives) EXPANSION ≥ $100M margin expansion initiative b
Slide 7: 2Q23 Results
2Q23 RESULTS 2Q23 aEPS of $0.88 Exceeded Prior Year Results of $0.73 and Guidance of $0.80 - $0.85 KEY FINANCIAL MEASURES EARNINGS RECONCILIATION: 2Q23 VS 2Q22 $M EXCEPT MARGINS, EPS AND RATIO $M EXCEPT EPS AND MARGINS SEGMENT 2Q23 2Q22 AMERICAS EUROPE OPERATING +7% +20% -23% $M except EPS and % SEG
Slide 8: Business Outlook
BUSINESS OUTLOOK Tightening Full Year 2023 Earnings Guidance 2023 GUIDANCE DETAILS ACTUAL OUTLOOK (aEPS) 1Q 2Q 3Q 4Q FY TIGHTENED FY23 GUIDANCE PRIOR PERIOD $0.56 $0.73 $0.63 $0.38 $2.30 FX1 (0.01) 0.03 0.10 0.04 0.16 Anticipate $3.10 – $3.25 aEPS, tightened outlook vs prior range of $3.05 – $3.25
Slide 9: Consistent Progress
CONSISTENT PROGRESS Improvement Across Several Key Operating Levers PERFORMANCE TREND 3.50 6.0 5.5 3.10 - 3.25 KEY OPERATING LEVERS 3.00 5.0 Higher Net Price 4.4 Margin Expansion Initiative Benefits 2.50 Total Financial Leverage 2.30 4.0 Strong Operating and Cost Performance 2.00 1.83 3.5 Po
Slide 10: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Focused on Maximizing Stakeholder Value #1 #2 #3 IMPROVE FUND PROFITABLE RETURN VALUE TO CAPITAL STRUCTURE GROWTH SHAREHOLDERS ▲ < 3.0x leverage (2023) ▲ $630M expansion program (2022-2024) ▲ Anti-dilutive repurchases ▲ Glide path to < 2.5x leverage ▲ Continued modest p
Slide 11: Conclusion
CONCLUSION Capitalizing on Solid Business Momentum COMPELLING INVESTMENT THESIS 2Q23 RESULTS EXCEEDED PY AND GUIDANCE FY23 STRATEGIC OBJECTIVES ARE ADVANCING WELL EXPECT 2023 EARNINGS UP 35% TO 40% VS PY ANTICIPATE HIGHER PERFORMANCE IN 2024 AND BEYOND ATTRACTIVE INVESTMENT OPPORTUNITY 11
Slide 12: Appendix
APPENDIX
Slide 13: Our Sustainability Goals
OUR SUSTAINABILITY GOALS 5 0 % TA R G E T S U P P LY C H A I N S U S TA I N A B I L I T Y Increase recycled content to 50% average by 2030. O-I is taking a Achieve sustainability balance, together, by aligning our supply chain tailored approach to increase recycled content rates across its with our
Slide 14: Segment FX Impact on Earnings
SEGMENT FX IMPACT ON EARNINGS APPROXIMATE ANNUAL IMPACT ON FX RATES AT KEY POINTS EPS FROM 10% FX CHANGE Jul 31, AVG AVG 2023 2Q23 2Q22 EUR 0.33 EUR 1.10 1.09 1.06 MXN 0.07 MXN 16.75 17.63 20.02 BRL 0.03 BRL 4.73 4.96 4.96 COP 0.02 COP 3,925 4,403 3,956 Current Business Outlook is Based on FX Rates
Slide 15: 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 16: 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 the periods after June 30, 2023, to its most directly comparable GAAP financial measure, net earnings att
Slide 17: Segment Reconciliations
SEGMENT RECONCILIATIONS 2Q23 PRICE,VOLUME AND CURRENCY IMPACT ON REPORTABLE SEGMENT SALES 2Q23 PRICE, SALES VOLUME, OPERATING COSTS AND CURRENCY IMPACT ON REPORTABLE SEGMENT OPERATING PROFIT 17
Slide 18: Segment Reconciliations
SEGMENT RECONCILIATIONS JUNE YTD PRICE,VOLUME AND CURRENCY IMPACT ON REPORTABLE SEGMENT SALES JUNE YTD PRICE, SALES VOLUME, OPERATING COSTS AND CURRENCY IMPACT ON REPORTABLE SEGMENT OPERATING PROFIT 18
Slide 19: Reconciliation for Segment Operating Profit
RECONCILIATION FOR SEGMENT OPERATING PROFIT 19
Slide 20: Reconciliation to Total Financial Leverage
RECONCILIATION TO TOTAL FINANCIAL LEVERAGE 20
Slide 21: Reconciliation to Adjusted EBITDA
RECONCILIATION TO ADJUSTED EBITDA For the year ending December 31, 2023, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, adjusted EBITDA, to its most directly comparable U.S. GAAP financial measure, net earnings, because management cannot relia
Slide 22: Reconciliation to FCF & Adjusted FCF
RECONCILIATION TO FCF & ADJUSTED FCF 22
Slide 23: Additional Reconciliations
ADDITIONAL RECONCILIATIONS RECONCILIATION TO SEGMENT OPERATING PROFIT MARGIN For the year ending December 31, 2023 and subsequent periods, the company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, segment operating profit margin, to its most directly com