O-I Glass (OI) Citi’s 2024 Basic Materials Conference summary

Business overview and market positioning

• Operates 68 plants in 19 countries, serving thousands of customers in food and beverage packaging.

• Strong presence in both Americas and Europe, with advanced technical and manufacturing capabilities.

• 55% of business from large multinationals with long-term contracts; remainder from regional/local customers.

• European glass demand expected to grow ~1% annually; Latin America seen as a key growth area.

• Glass packaging preferred for premiumization, safety, and sustainability, supporting long-term demand.

Strategic transformation and Fit to Win program

• Fit to Win program targets end-to-end business review, cost reduction, and enhanced competitiveness.

• Three-horizon plan: immediate cost actions, mid-term growth, and long-term strategic optionality.

• By 2027, aims for $1.45B adjusted EBITDA, 5%+ free cash flow margin, and 2%+ economic spread over cost of capital.

• At least $300M in savings targeted by 2027, with $175M by 2025; 18% inventory reduction achieved in Q3.

• Streamlining structure, closing unprofitable capacity, and shifting accountability to local markets.

Operational and financial discipline

• Focus on economic profit, capital efficiency, and strict return criteria (minimum 10.5% return).

• All business leaders now accountable for P&L, balance sheet, and cash flow.

• Free cash flow profile improved post-asbestos liability resolution; all cash now available for value creation.

• Capital allocation prioritized for transformation, structure improvement, and eventual shareholder returns.