O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Investor Presentation (December 2015)
16 slides from O-i Glass's investor presentation, Dec 10, 2015
Slide 1: Safe harbor comments
Safe harbor comments Regulation G The information presented here regarding adjusted net earnings and adjusted EPS 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.
Slide 2: O-I: The only truly global glass container franchise
2 O-I: The only truly global glass container franchise Recent strategic expansion in Mexico #1 position in Europe, North America, Australia, New Zealand Mature markets Emerging markets #1 position in Latin America Leading position within Southeast Asia Foothold in China Acquisition Very strong perfo
Slide 3: Trends are supportive of glass
Diversified portfolio provides opportunity Trends are supportive of glass 3 Glass continues to be relevant in rigid packaging Premiumization trends favor glass Returnable glass containers are most economic package in emerging and growing economies Growing focus on healthier lifestyles and organic fo
Slide 4: Partnering with blue chip companies
Partnering with blue chip companies 4 Long history of collaboration Business under long-term contract Limited geographical overlap ABI packaging benefits glass Premium products and innovation Returnables in emerging mkts ABI to divest MillerCoors ABI and SABMiller each < 5% of O-I sales ABI acquisit
Slide 5: Emerging trends provide opportunity for glass packaging
Craft spirits Single vineyard wine Craft and imported beer Specialty juices Iced coffee and teas Craft soda Still and sparkling water Premium and specialty foods Private brands for premium products Emerging trends provide opportunity for glass packaging 5
Slide 6: Consistent end-market demand trends
Consistent end-market demand trends 6 Europe Stable end markets Exports outperform domestic demand Selective growth opportunities Asia Pacific Overall demand stabilization in mature markets, with uptick in wine exports Mid single-digit growth in China & SEA North America Growth in wine, spirits, pre
Slide 7: Executing on our strategy
Executing on our strategy 7 Demonstrating stability Reducing asset disruptions Stabilizing supply chain in all four regions Recent actions Strengthened asset advancement program Added Mexico to footprint Established new strategy and integration organization Completed redesign of global leadership te
Slide 8: Higher adj. EPS and FCF expected in 2016
8 Higher adj. EPS and FCF expected in 2016 Operational tailwinds more than offset non-operational headwinds 1Q16 adjusted EPS likely to be modestly higher than PY in constant currency Tailwinds: Operational Accretive investments (O-I Mexico, JV with CBI) Improved business performance End to end supp
Slide 9: Capital structure
Capital structure Deleveraging is a key priority 9 Managing debt structure Early repayment of 7.375% notes due in 2016 Acquisition-related debt at ~4.2% blended rate Capital allocation priorities Continue to invest in organic growth Deleverage Expected and temporary uptick in leverage ratio Covenant
Slide 10: Enhancing shareholder value
Enhancing shareholder value 10 Competitive Advantage Stable End Markets Global presence Unparalleled expertise Steady glass demand Consumer preference for glass Strategic Imperatives Consistent Financial Performance Balanced Capital Allocation End to end supply chain performance Successful integrati
Slide 11: Enhancing shareholder value
; A Enhancing shareholder value ene. LIFE + Global presence + Steady glass demand + Unparalleled expertise + Consumer preference for glass =~ Strategic Imperatives Consistent Financial Balanced Capital Performance Allocation + End to end supply chain + Adjusted earnings + Prudently invest in the per
Slide 12: 4Q15 guidance update
4Q15 guidance update Full year adjusted EPS of ~$2.00 and FCF of ~$200 million unchanged 12 4Q14 Adjusted EPS $0.46 Currency Impact ($0.15) Assumptions:1 EUR = 1.06; BRL = 3.85; COP = 3,104; AUD = 0.72; MXN = 16.6 4Q14 Adjusted EPS – Constant Currency $0.31 Europe Carryover pricing pressure; volume
Slide 13: Favorable trends in asbestos payments
Favorable trends in asbestos payments Outstanding cases down ~80% since 2008 Average age of claimant is >80 years old Payments in 2015 expected to be one-third lower than 2008 13 $100 $120 $140 $160 $180 $200 $220 2008 2009 2010 2011 2012 2013 2014 2015e ($ millions)
Slide 14: Pension expense headwind since 2008
Pension expense headwind since 2008 Current pension headwinds sharply contrast with pre-recession era Sustained non cash pension expense1 substantially lowers reported Company financial performance 1 Related to the “amortization of actuarial loss” component of pension expense. 2 Adjusted earnings re
Slide 15: Estimated impact from currency rate changes
Estimated impact from currency rate changes 15 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
Slide 16: Estimated impact from currency rate changes
Sass ss LIFE Estimated impact from currency rate change 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
Owens Illinois — Investor Presentation (December 2015) on 6ix