O-i Glass, Inc. · NYSE:OI
O-i Glass — Q4 2024 Earnings Presentation
23 slides from O-i Glass's earnings presentation, Feb 5, 2025
Slide 1: Full Year and Fourth Quarter 2024 Earnings
FULL YEAR AND FOURTH QUARTER 2024 EARNINGS FEBRUARY 4, 2025
Slide 2: Safe Harbor Comments and Forward-Looking Statements
SAFE HARBOR COMMENTS AND 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 Secu
Slide 3: Overview
OVERVIEW WORKING ACROSS THE VALUE CHAIN TO DRIVE A SOLID RECOVERY IN 2025 ► CHALLENGING MARKET CONDITIONS IMPACTED FY24 PERFORMANCE ► 4Q24 EARNINGS DOWN FROM PY BUT ACTING WITH AGILITY AS MARKETS STABILIZE ► RAPIDLY IMPLEMENTING FIT TO WIN TO IMPROVE FUTURE EARNINGS AND CASH FLOW ► EXPECT SOLID EARN
Slide 4: Challenging Market Conditions Impacted FY24 Performance
CHALLENGING MARKET CONDITIONS IMPACTED FY24 PERFORMANCE SLUGGISH DEMAND, COMPETITIVE ENVIRONMENT AND INVENTORY MANAGEMENT ACTIONS DROVE LOWER RESULTS 2024 KEY PERFORMANCE METRICS Most Recent Guidance: 3.9x $0.70 - $0.80 7,105 1,452 3.09 130 688 2.8x +2% 6,531 617 1,100 0.81 Selling prices down 2% an
Slide 5: Lower 4Q24 Earnings but Markets Stabilizing and Better Cost Performance
LOWER 4Q24 EARNINGS BUT MARKETS STABILIZING AND BETTER COST PERFORMANCE UNFAVORABLE NET PRICE AND INTEREST / TAXES PARTIALLY OFFSET BY FAVORABLE COST PERFORMANCE aEPS SEGMENT OPERATING PROFIT AMERICAS +5% (in tons) 19 96 93 0.12 5 (5) (16) ($M) 0.07 (aEPS) 0.08 EUROPE (0.12) 75 (0.17) (0.02) (0.05)
Slide 6: Market Demand Conditions Are Stabilizing
MARKET DEMAND CONDITIONS ARE STABILIZING 4Q24 SALES VOLUME WAS FLAT YoY AND CONSISTENT WITH MOST RECENT MANAGEMENT GUIDANCE O-I GLASS DEMAND TRENDS ANNUAL TREND QUARTERLY TREND YoY Change in O-I and O-I + JV Shipments (in tons)¹ YoY Change in O-I Shipments (in tons)¹ 20% 20% 15% 15% Most Recent Guid
Slide 7: Rapidly Implementing Fit to Win to Improve Performance
RAPIDLY IMPLEMENTING FIT TO WIN TO IMPROVE PERFORMANCE FOCUSED ON “PHASE A” INITIATIVES EXPECTED TO GENERATE SAVINGS OF $175M - $200M IN 2025 AND ≥ $300M BY 2027 EXPECTED COST BENEFITS ($M) FIT TO WIN INITIATIVES 2024 20251 Target COMMENTS 1 PHASE A 25 175-200 ≥ 300 Reshaping SG&A 14 100 200 • Actio
Slide 8: Expect Solid Recovery in 2025 Driven by Fit to Win Initiative Benefits
EXPECT SOLID RECOVERY IN 2025 DRIVEN BY FIT TO WIN INITIATIVE BENEFITS HIGHER EARNINGS AND FCF FROM “SELF HELP” INITIATIVES WHILE COMMERCIAL OUTLOOK REMAINS CAUTIOUS 2025 GUIDANCE 2025 BUSINESS DRIVERS 2024 2025E 2025 vs 2024 BUSINESS DRIVER ▲ Fav ▼Unfav 2025 COMMENTS Adjusted EPS $0.81 $1.20 - $1.5
Slide 9: Conclusion: Value Creation Roadmap
CONCLUSION INVESTOR DAY VALUE CREATION ROADMAP Horizon 3 STRATEGIC OPTIONALITY Horizon 2 1 Setting The Stage For A Solid Recovery In 2025 & Beyond BUILD VALUE MOMENTUM FUTURE Horizon 1 O-I EP FIT TO WIN CAPTURE 2 Rapidly Implementing Fit To Win Priorities CURRENT O-I EP CAPTURE 3 Determined to Impro
Slide 10: Appendix
APPENDIX
Slide 11: Summary Financial Results: FY24 vs FY23
SUMMARY FINANCIAL RESULTS: FY24 VS FY23 NET SALES SEGMENT OPERATING PROFIT $M except EPS and % AMERICAS EUROPE CORP TOTAL AMERICAS EUROPE TOTAL aEPS FY23 $ 3,865 $ 3,117 $ 123 $ 7,105 $511 $682 $1,193 $3.09 % Margin 13.2% 21.9% 17.1% FX (71) 1 - (70) 3 (2) 1 0.01 SUBTOTAL $ 3,794 $3,118 $123 $7,035
Slide 12: Summary Financial Results: 4Q24 vs 4Q23
SUMMARY FINANCIAL RESULTS: 4Q24 VS 4Q23 NET SALES SEGMENT OPERATING PROFIT $M except EPS and % AMERICAS EUROPE CORP TOTAL AMERICAS EUROPE TOTAL aEPS 4Q23 $ 922 $ 689 $ 30 $ 1,641 $93 $75 $168 $0.12 % Margin 10.1% 10.9% 10.4% FX (60) (14) - (74) (5) (1) (6) (0.02) SUBTOTAL $ 862 $675 $30 $1,567 $88 $
Slide 13: FX Assumptions and FX/Volume aEPS Sensitivities
FX ASSUMPTIONS AND FX/VOLUME aEPS SENSITIVITIES APPROXIMATE ANNUAL IMPACT ON FX RATES AT KEY POINTS EPS FROM 10% FX CHANGE Jan 31, AVG AVG AVG 2025 4Q24 4Q23 FY24 EUR 0.19 EUR 1.04 1.06 1.09 1.08 MXN 0.06 MXN 20.68 20.43 17.45 18.58 BRL 0.02 BRL 5.84 5.98 4.93 5.45 COP 0.02 COP 4,205 4,410 3,965 4,0
Slide 14: 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 15: 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 ending after December 31, 2024 to its most directly comparable GAAP financial measure, net ea
Slide 16: Segment Reconciliations
SEGMENT RECONCILIATIONS 4Q24 PRICE, SALES VOLUME AND CURRENCY IMPACT ON REPORTABLE SEGMENT SALES 4Q24 PRICE, SALES VOLUME, OPERATING COSTS AND CURRENCY IMPACT ON REPORTABLE SEGMENT OPERATING PROFIT 16 (a) Currency effect on net sales and segment operating profit determined by using 2024 foreign curr
Slide 17: Segment Reconciliations
SEGMENT RECONCILIATIONS FULL YEAR 2024 PRICE, SALES VOLUME AND CURRENCY IMPACT ON REPORTABLE SEGMENT SALES FULL YEAR 2024 PRICE, SALES VOLUME, OPERATING COSTS AND CURRENCY IMPACT ON REPORTABLE SEGMENT OPERATING PROFIT 17 (a) Currency effect on net sales and segment operating profit determined by usi
Slide 18: Reconciliation for Segment Operating Profit
RECONCILIATION FOR SEGMENT OPERATING PROFIT 18
Slide 19: Reconciliation to Net Debt Leverage Ratio
RECONCILIATION TO NET DEBT LEVERAGE RATIO For the year ending December 31, 2025, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, net debt leverage ratio, which is defined as total debt less cash divided by Adjusted EBITDA, to its most directly
Slide 20: Reconciliation to Adjusted EBITDA
RECONCILIATION TO ADJUSTED EBITDA For the year ending December 31, 2025 and later periods, 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 attributable t
Slide 21: Reconciliation to Economic Profit and Economic Spread Percentage
RECONCILIATION TO ECONOMIC PROFIT AND ECONOMIC SPREAD PERCENTAGE For the year ending December 31, 2025 and later periods, the Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, economic profit and economic spread percentage, to its most directly compa
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, 2025 to its most directly comparable U.S. GAAP financial measure, cash provided by operating activities, withou
Slide 23: Reconciliation to Adjusted Effective Tax Rate
RECONCILIATION TO ADJUSTED EFFECTIVE TAX RATE The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, adjusted effective tax rate, for the year ending December 31, 2025, to its most directly comparable GAAP financial measure, provision for income taxes