O-I Glass, Inc. · NYSE:OI
O-I Glass — Q1 2020 Earnings Presentation
15 slides from O-I Glass's earnings presentation, March 2020
Slide 1: 1Q20 Investor Presentation
1Q20 INVESTOR P R E S E N TAT I O N
Slide 2: Safe Harbor Comments
SAFE HARBOR COMMENTS ▪ Forward-Looking Statements ▪ This press release 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: O-I at a Glance
O-I AT A GLANCE LEADING GLOBAL $6.7 BILLION 6000+ glass container supplier in net sales in 2019 direct customers FOUNDED IN 1903 ~27,500 employees As Owens Bottle Company worldwide O P E R AT I N G I N 3 R E G I O N S : 78 factories Americas, Europe and Asia-Pacific 23 countries 71% OF NET SALES GLA
Slide 4: Executing O-I Glass Investment Thesis
EXECUTING O -I GLASS INVESTMENT THESIS STRONG MARKET POSITION ◉ Leading global glass producer ◉ Strategic Blue Chip customer base ◉ Glass set to win in Green Economy REVOLUTIONIZE GLASS TURNAROUND INITIATIVES Develop and deploy MAGMA Execute turnaround initiatives BOLD STRUCTURAL ACTIONS ◉ ◉ ◉ Enabl
Slide 5: Strong Market Position: Global Presence Spanning 23 Countries
STRONG MARKET POSITION G L O B A L P R E S E N C E S PA N N I N G 2 3 C O U N T R I E S AMERICAS EUROPE ASIA PACIFIC 36 Plants & 78 Furnaces 34 Plants & 58 Furnaces 8 Plants & 15 Furnaces 17,000 Employees 8,100 Employees 2,500 Employees AM 2019 Tonnes Sold by End Use EU 2019 Tonnes Sold by End Use A
Slide 6: Strong Market Position: Stable to Improving Organic Sales Volumes
STRONG MARKET POSITION S TA B L E TO I M P R O V I N G O R G A N I C S A L E S V O L U M E S A C R O S S O - I N E T W O R K O-I Market Total O-I Organic Volume 1 3% 2019 2020 2020-2022 CAGR 2% O-I Network ▲ ▲ ---- O-I Legacy ▼ ►/▲ ►/▲ 1% Americas ▲ ► ► 0% North ▼▼ ▼▼ ▼▼ -1% Central ▲▲ ▲▲ ▲ -2% 2 3
Slide 7: Strong Market Position: Glass, the World's Most Sustainable Package
STRONG MARKET POSITION G L A S S : T H E W O R L D ’ S M O S T S U S TA I N A B L E PA C K A G E In a world where sustainability is more important than ever, we are proud to make an inherently sustainable product. ● Made from natural, readily available raw materials ● 100 percent endlessly recyclabl
Slide 8: Turnaround Initiatives
TURNAROUND INITIATIVES I M P R O V I N G O P E R AT I N G P E R F O R M A N C E REVENUE AND MIX OPTIMIZATION • Improve price and mix across select geographies, customers and categories • Secure the base while revaluing contracts and payment terms to improve cash flow • Introduce new products geared
Slide 9: Revolutionize Glass: MAGMA
REVOLUTIONIZE GLASS MAGMA REINVENTS HOW GLASS IS MADE ● New capacity at lower capital commitment and intensity ● Total cost of ownership below legacy ● Increased scalability ● Rapid new capacity deployment and asset portability ● Production flexibility to support diversified offerings ● Competitivel
Slide 10: Optimize Structure
OPTIMIZE STRUCTURE Priorities Resolution to Asbestos-related Liabilities De-risk Balance Sheet Asbestos-related claims liabilities have consumed ● Deleveraging is O-I’s top priority until leverage approaches 3x ~40% of aFCF over past 10 years ● Tactical divestitures program underway targeting $400M-
Slide 11: Financial Appendix
FINANCIAL APPENDIX
Slide 12: 2020 Segment Review
2020 SEGMENT REVIEW AMERICAS EUROPE ASIA PACIFIC Results ▲ Higher Reported Results ▼ Lower Reported Results ▲ Higher Reported Results ►Minimal impact from FX ▼Headwind from temporary items ►Minimal impact from FX ►Minimal impact from FX ▲ Higher results adjusted for temp items Net Price ▲ Constructi
Slide 13: FX Impact on Earnings
FX IMPACT ON EARNINGS APPROXIMATE ANNUAL TRANSLATION FX RATES USED FOR FY20 GUIDANCE IMPACT ON EPS FROM 10% FX CHANGE (JAN 31, 2020) EUR $0.12 EUR 1.10 MXN $0.05 MXN 18.8 BRL $0.03 BRL 4.25 COP $0.02 COP 3,413 AUD $0.02 AUD 0.67 13
Slide 14: Non-GAAP Financial Measures
NON- G AAP FINANCI AL M EASUR E S 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 present
Slide 15: Reconciliation for Adjusted Free Cash Flow
RECONCILIAT ION FOR ADJUSTED FREE CASH FLOW 15