FOR IMMEDIATE RELEASE
For more information, contact:
Chris ManuelVice President of Investor Relations
567-336-2600
Chris.Manuel@o-i.com

O-I GLASS REPORTS FULL YEAR AND FOURTH QUARTER 2020 RESULTS
Business performance exceeded company guidance
PERRYSBURG, Ohio (February 9, 2021) – O-I Glass, Inc. (“O-I”) (NYSE: OI) today reported
financial results for the full year and fourth quarter ended December 31, 2020.
“The global pandemic significantly impacted O-I’s results in 2020. Yet, business conditions
improved later in the year as market conditions stabilized. We are pleased with our fourth quarter
results as earnings and cash flows exceeded the company’s most recent outlook. Glass
shipments were consistent with prior year levels and operating and cost performance continued
to surpass expectations,” said Andres Lopez, CEO.
“The company continued to take bold structural actions to improve O-I’s business fundamentals
during 2020, despite the challenges of the pandemic. The benefit from the company’s turnaroundinitiatives to expand margins significantly exceeded O-I’s original target as efforts wereaccelerated to help mitigate the impact of the global recession. As we seek to revolutionize glass,
we continued to advance MAGMA, and the early 2021 installation in Germany represents a key
milestone that will pave the way for broader deployment in 2022 and beyond. Likewise, we are
optimizing the company’s business portfolio and capital structure through divestitures of assetsthat are not core to our strategy. Finally, the corporate modernization effort, which rebranded thecompany as O-I Glass, supported January 2020’s actions to establish a final, certain andequitable resolution of our legacy asbestos-related claims liabilities.”“We are optimistic as we enter 2021. While demand may be choppy during the pandemic,
business trends should continue to improve as markets stabilize and gradually reopen.
Additionally, our strategic actions are set to create future shareholder value, and we expect
improved earnings and cash flows in 2021,” concluded Lopez.
Full Year 2020 Results Reported Results: For the full year 2020, the company recorded earnings from continuing
operations of $1.57 per share (diluted), compared with a loss of $2.56 per share in 2019. Current
year earnings from continuing operations before income taxes were $353 million, compared toa loss of $261 million in the prior year. Both periods included items management considers not
representative of ongoing operations. Cash provided by continuing operating activities was$457 million in 2020, compared with $408 million in 2019.

1 Adjusted Earnings1: Excluding certain items management considers not representative of
ongoing operations, 2020 adjusted earnings1 were $1.22 per share, compared with the prioryear of $2.24 per share. Lower earnings primarily reflected lower sales and production levels
due to the global pandemic.
 Segment Operating Profit1: Full year 2020 segment operating profit was $678 million
compared to $856 million in 2019. Higher selling prices more than compensated for cost
inflation, but were more than offset by the impact of 4 percent lower sales volume andapproximately 7.5 percent lower production volume due to the pandemic. Turnaround initiatives,
strong operating performance and cost control measures partially offset the impact of lower
production levels.
 Cash Flows: Cash provided by continuing operating activities was $457 million in 2020,
compared with $408 million in 2019. 2020 free cash flow1 was $146 million which exceeded
the company’s guidance of more than $100 million free cash flow in 2020.
 Capital Structure: Total debt was $5.1 billion at December 31, 2020 compared to $5.6 billion
at prior year end. Net debt1 was $4.6 billion at December 31, 2020 which was down $429 million
from the prior year. Lower debt primarily reflected favorable cash flow and use of proceeds fromdivestitures partially offset by unfavorable foreign currency translation. As a result of favorable
cash flows and refinancing activities, committed liquidity exceeded $2.2 billion at year end 2020.
Fourth Quarter 2020 Results Reported Earnings: For the fourth quarter 2020, the loss from continuing operations was$0.18 per share compared to earnings of $0.20 per share (diluted) in the fourth quarter of 2019.
Current year earnings from continuing operations before income taxes were $14 million,
compared to $65 million in the prior year. Both periods included items management considers
not representative of ongoing operations.
 Adjusted Earnings: Excluding certain items management considers not representative of
ongoing operations, adjusted earnings 1 were $0.40 per share in the fourth quarter of 2020,
compared with $0.50 per share in the fourth quarter of 2019. While operating performance wasconsistent with the prior year, lower adjusted earnings primarily reflected recent divestitures.
Adjusted earnings exceeded the company’s guidance of $0.30 to $0.35 per share.
P0F

 Segment Operating Profit: Segment operating profit1 was $200 million compared to $203
million in the prior year. Higher selling prices more than offset cost inflation. Adjusted for thesale of the Australia and New Zealand (“ANZ”) business unit earlier in the year, glass container
shipments were flat with the prior year quarter reflecting market stability amid the ongoingpandemic. Strong operating performance, benefits from the company’s turnaround initiatives
to expand margins and cost control measures substantially offset the earnings dilution fromrecent divestitures.
Net sales were $1.5 billion in the fourth quarter of 2020 compared to $1.6 billion in the prior year
quarter. The ANZ divestiture reduced net sales by $153 million. After adjusting for the sale of
ANZ, average selling prices improved 2 percent and increased revenue $33 million while1

Adjusted earnings per share, free cash flow, segment operating profit, and net debt are each non-GAAP financial
measures. See tables included in this release for reconciliations to the most directly comparable GAAP measures.

2

shipments in tons were flat with the prior year. Unfavorable foreign currency translation decreased
net sales by $11 million.
Segment operating profit was $200 million in the fourth quarter of 2020 compared to $203 million
in the prior year. Operating profits in both the Americas and Europe improved on a year-over-yearbasis.
 Americas: Segment operating profit in the Americas was $127 million compared to $115 million
in the fourth quarter of 2019. Shipments in tons increased 2.4 percent. Cost inflation waselevated due to foreign currency pressure and was partially mitigated by the benefit offavorable selling prices. Savings from the company’s turnaround initiatives to expand margins
and cost reduction efforts contributed to higher year-over-year segment operating profit despite
higher plant incentive expense. Results included $8 million of unfavorable foreign currencytranslation.
 Europe: Segment operating profit in Europe was $73 million compared to $69 million in the
fourth quarter 2019. Results benefited from favorable mix as well as higher selling prices, whichmore than offset incremental cost inflation. Shipments in tons decreased 2.3 percent. Higher
operating costs reflected elevated logistics costs, inventory adjustments and plant incentive
expense. Results benefited $4 million from favorable foreign currency translation.
 Asia Pacific: Segment operating profit in Asia Pacific was $0 compared to $19 million in the
fourth quarter 2019. Results of the Asia Pacific segment have been recast to reflect only theearnings of the ANZ businesses following the sale of the business unit in July 2020. The sales
and operating results of the other businesses that historically comprised the Asia Pacificsegment and were retained by the company, have been reclassified to Other sales andRetained corporate costs and other, respectively.
Retained corporate and other costs were $47 million compared to $29 million in the prior year
quarter. Higher costs reflected the sale of the company’s interest in a soda ash joint venture during
2019, higher management incentive expense and additional research and development costs for
MAGMA partially offset by efforts to reduce costs.
Interest expense, net, was $53 million, down from $96 million in the prior year due to debt
reduction, refinancing activities and $39 million of certain items in the prior year period thatmanagement does not consider representative of ongoing operations.
In both 2020 and 2019, the company recorded several significant items impacting reported results
as presented in the table entitled Reconciliation to Adjusted Earnings. Management considers
these items not representative of ongoing operations, and they are excluded from adjusted
earnings. In 2020, the most significant items excluded from adjusted earnings were the $275
million gain on the sale of the ANZ businesses, $142 million for restructuring, asset impairment
and other costs, and $44 million of debt refinancing expense. Also excluded were $48 million of
charges for a number of other items including non-cash pension settlement charges, charges
related to the deconsolidation of Paddock and strategic transaction costs. In 2019, charges
excluded from adjusted earnings were a $595 million non-cash charge for goodwill impairment of
the North America reporting unit, $113 million for restructuring, asset impairment and other costs
and $65 million of debt refinancing expense. Also excluded were $93 million of charges for anumber of other items including corporate modernization expense, non-cash pension settlement
charges and adjustments for asbestos-related liabilities. Asset sales resulted in $107 million ofgains that were also excluded from 2019 adjusted earnings.

32021 Outlook
Given significant market uncertainty due to the global pandemic, the company’s business outlook
is subject to adjustment, especially if there is a material change in demand trends compared to
expectations. Currently, O-I expects full year 2021 adjusted earnings will approximate $1.55 to$1.75 per share. This outlook assumes higher selling prices that mostly compensate for cost
inflation as well as sales shipment growth in tons of 2 to 4 percent compared to 2020, representing
a partial or full volume recovery to 2019 levels. Likewise, the company expects continued benefits
from its initiatives to expand margins. These incremental savings should more than offset the
headwind from temporary cost reduction efforts in 2020 to mitigate the impact of the pandemic
that will not repeat in 2021. For the first quarter of 2021, the company anticipates adjusted
earnings in a range of $0.32 to $0.37 per share.
Cash provided by continuing operating activities is expected to approximate $615 million or higher
in 2021. The outlook assumes capital expenditures of approximately $375 million and thesuspension of all asbestos-related claims payments, pending final resolution of the Paddock
Chapter 11. The company anticipates 2021 free cash flow will approximate $240 million which isconsistent with O-I’s objective to generate an EBITDA1 to free cash flow conversion of
approximately 20 to 25 percent.
This outlook assumes foreign currency rates as of January 31, 2021, reflects the earnings dilution
on the ANZ divestiture and an effective annual tax rate of approximately 28 to 32 percent. The
earnings and cash flow guidance ranges may not fully reflect uncertainty in macroeconomic
conditions, further pandemic affects and currency rates, among other factors.
Share Repurchase Authorization
Today, O-I announced that its Board of Directors had authorized a $150 million anti-dilutive share
repurchase program for the company’s common stock that the company intends to use to offset
future incentive awards. This authorization supersedes and replaces any prior repurchaseauthorizations.
Under the repurchase program, repurchases can be made from time to time using a variety ofmethods, which may include open market purchases, privately negotiated transactions,accelerated share repurchase programs, or otherwise, all in accordance with the requirements of
the Securities and Exchange Commission and other applicable legal requirements. The specifictiming, price and size of purchases will depend on prevailing stock prices, general economic andmarket conditions, and other considerations. The repurchase program does not obligate thecompany to acquire any particular amount of its common stock, and the repurchase program may
be suspended or discontinued at any time at the company’s discretion.
The company expects to repurchase approximately $35 million of the company’s common stockin 2021.
Conference Call Scheduled for February 10, 2021

30TU

O-I CEO Andres Lopez and CFO John Haudrich will conduct a conference call to discuss thecompany’s latest results on Wednesday, February 10, 2021, at 8:00 a.m. EST. A live webcast of
the conference call, including presentation materials, will be available on the O-I website,www.o-i.com/investors, in the Webcasts and Presentations section.
U30T

4

The conference call also may be accessed by dialing 888-733-1701 (U.S. and Canada) or 706634-4943 (international) by 7:50 a.m. EST, on February 10, 2021. Ask for the O-I conference
call. A replay of the call will be available on the O-I website, www.o-i.com/investors, for a year
following the call.
30T

Contact:

30T

Sasha Sekpeh, 567-336-5128 – O-I Investor Relations

O-I news releases are available on the O-I website at www.o-i.com.
30T

30T

O-I’s first quarter 2021 earnings conference call is currently scheduled for Thursday, April 29,
2021, at 8:00 a.m. EST.
About O-I GlassAt O-I Glass, Inc. (NYSE: OI), we love glass and we’re proud to be one of the leading producers
of glass bottles and jars around the globe. Glass is not only beautiful, it’s also pure and completely
recyclable, making it the most sustainable rigid packaging material. Headquartered in Perrysburg,
Ohio (USA), O-I is the preferred partner for many of the world’s leading food and beverage brands.
We innovate in line with customers’ needs to create iconic packaging that builds brands aroundthe world. Led by our diverse team of more than 25,000 people across 72 plants in 20 countries,
O-I achieved revenues of $6.1 billion in 2020. Learn more about us:
o-i.com / Facebook / Twitter / Instagram / LinkedIn
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 and use
of certain non-GAAP financial measures, including adjusted earnings, adjusted earnings per
share, free cash flow, segment operating profit, net debt, EBITDA and EBITDA to free cash flow
conversion provide relevant and useful supplemental financial information that is widely used byanalysts and investors, as well as by management in assessing both consolidated and business
unit performance. These non-GAAP measures are reconciled to the most directly comparable
GAAP measures and should be considered supplemental in nature and should not be considered
in isolation or be construed as being more important than comparable GAAP measures.
Adjusted earnings relates to net earnings from continuing operations attributable to thecompany, exclusive of items management considers not representative of ongoing operations
because such items are not reflective of the company’s principal business activity, which is glass
container production. Adjusted earnings are divided by weighted average shares outstanding(diluted) to derive adjusted earnings per share. Segment operating profit relates to earnings fromcontinuing operations before interest expense, net, and before income taxes and is also exclusiveof items management considers not representative of ongoing operations as well as certain
retained corporate costs. Management uses adjusted earnings, adjusted earnings per share, andsegment operating profit to evaluate its period-over-period operating performance because it
believes these provide useful supplemental measures of the results of operations of its principal
business activity by excluding items that are not reflective of such operations. Adjusted earnings,
adjusted earnings per share and segment operating profit may be useful to investors in evaluating
the underlying operating performance of the company’s business as these measures eliminate
items that are not reflective of its principal business activity.

5Net debt is defined as total debt less cash. Management uses net debt to analyze the liquidity of
the company.
Further, free cash flow relates to cash provided by continuing operating activities less cash
payments for property, plant and equipment. Management has historically used free cash flow toevaluate its period-over-period cash generation performance because it believes this has
provided a useful supplemental measure related to its principal business activity. EBITDA isdefined as earnings before interest, taxes, depreciation, and amortization. Free cash flow andfree cash flow to EBITDA conversion may be useful to investors to assist in understanding thecomparability of cash flows generated by the company’s principal business activity. It should not
be inferred that the entire free cash flow amount is available for discretionary expenditures, since
the company has mandatory debt service requirements and other non-discretionary expendituresthat are not deducted from the measure. Management uses non-GAAP information principally
for internal reporting, forecasting, budgeting and calculating compensation payments.
The company routinely posts important information on its website – www.o-i.com/investors.
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 Securities Act of 1933. Forward-looking
statements reflect the company’s current expectations and projections about future events at thetime, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,”“could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” andthe negatives of these words and other similar expressions generally identify forward-looking
statements.
It is possible that the company’s future financial performance may differ from expectations due toa variety of factors including, but not limited to the following: (1) the company’s ability to obtain
the benefits it anticipates from the Corporate Modernization, (2) risks inherent in, and potentiallyadverse developments related to, the Chapter 11 bankruptcy proceeding involving the company’s
wholly owned subsidiary Paddock Enterprise, LLC (“Paddock”), that could adversely affect thecompany and the company’s liquidity or results of operations, including the impact of
deconsolidating Paddock from the company’s financials, risks from asbestos-related claimant
representatives asserting claims against the company and potential for litigation and payment
demands against the company by such representatives and other third parties, (3) the amountthat will be necessary to fully and finally resolve all of Paddock’s asbestos-related claims and thecompany’s obligations to make payments to resolve such claims under the terms of its support
agreement with Paddock, (4) the company’s ability to manage its cost structure, including its
success in implementing restructuring or other plans aimed at improving the company’s operating
efficiency and working capital management, achieving cost savings, and remaining wellpositioned to address the company’s legacy liabilities, (5) the company’s ability to acquire ordivest businesses, acquire and expand plants, integrate operations of acquired businesses andachieve expected benefits from acquisitions, divestitures or expansions, (6) the company’s ability
to achieve its strategic plan, (7) foreign currency fluctuations relative to the U.S. dollar, (8)changes in capital availability or cost, including interest rate fluctuations and the ability of thecompany to refinance debt on favorable terms, (9) the general political, economic and competitive
conditions in markets and countries where the company has operations, including uncertainties
related to Brexit, economic and social conditions, disruptions in the supply chain, competitive
pricing pressures, inflation or deflation, changes in tax rates and laws, natural disasters, and6

weather, (10) the impact of COVID-19 and the various governmental, industry and consumer
actions related thereto, (11) the company’s ability to generate sufficient future cash flows toensure the company’s goodwill is not impaired, (12) consumer preferences for alternative formsof packaging, (13) cost and availability of raw materials, labor, energy and transportation, (14)consolidation among competitors and customers, (15) unanticipated expenditures with respect todata privacy, environmental, safety and health laws, (16) unanticipated operational disruptions,
including higher capital spending, (17) the company’s ability to further develop its sales, marketingand product development capabilities, (18) the failure of the company’s joint venture partners tomeet their obligations or commit additional capital to the joint venture, (19) the ability of thecompany and the third parties on which it relies for information technology system support toprevent and detect security breaches related to cybersecurity and data privacy, (20) changes in
U.S. trade policies, and the other risk factors discussed in the company’s Annual Report on Form
10-K for the year ended December 31, 2019, Quarterly Report on form 10-Q for the quarterly
period ended September 30, 2020 and any subsequently filed Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q or the company’s other filings with the Securities and Exchange
Commission.
It is not possible to foresee or identify all such factors. Any forward-looking statements in thisdocument are based on certain assumptions and analyses made by the company in light of its
experience and perception of historical trends, current conditions, expected future developments,and other factors it believes are appropriate in the circumstances. Forward-looking statements
are not a guarantee of future performance and actual results or developments may differ
materially from expectations. While the company continually reviews trends and uncertainties
affecting the company’s results or operations and financial condition, the company does notassume any obligation to update or supplement any particular forward-looking statements
contained in this document.

7

O‐I GLASS, INC.
Condensed Consolidated Results of Operations(Dollars in millions, except per share amounts)
Three months ended
December 31
2020
2019

Unaudited
Net sales
Cost of goods sold

$

1,497
(1,232)$

Year ended
December 31
2020
2019

1,628
(1,352)$

6,091(5,119)$6,691(5,483)Gross profit

265

276

972

1,208

Selling and administrative expense
Research, development and engineering expense
Interest expense, net
Equity earnings (losses)
Other income (expense), net (including goodwill impairment ‐ 2019) (a)

(95)
(30)
(53)
(11)
(62)

(99)
(18)
(96)
23
(21)

(403)
(75)
(265)
37
87

(439)
(68)
(311)
78
(729)

Earnings (loss) from continuing operations before income taxes

14

65

353

(261)

Provision for income taxes

(39)

(32)

(89)

(118)

Earnings (loss) from continuing operations

(25)

33

264

(379)

(1)

‐

(3)

Loss from discontinued operations
Net earnings (loss)

(25)

32

264

(382)

Net earnings attributable to noncontrolling interests

(4)

(1)

(15)

(18)

Net earnings (loss) attributable to the Company

Amounts attributable to the Company:
Earnings (loss) from continuing operations
Loss from discontinued operations
Net earnings (loss)
Basic earnings per share:
Earnings (loss) from continuing operations
Loss from discontinued operations
Net earnings (loss)

$

(29)

$

31

$

249

$

(400)

$

(29)

$

$

249

$

$

(29)

$

32
(1)
31

$

249

$

(397)
(3)
(400)

$

(0.18)

$

0.20

$

1.59

$

$

(0.18)

$

0.20

$

1.59

$

Weighted average shares outstanding (thousands)
Diluted earnings per share:
Earnings (loss) from continuing operations
Loss from discontinued operations
Net earnings (loss)
Diluted average shares (thousands)

157,274

155,747

156,806

155,250$(0.18)

$

0.20

$

1.57

$

$

(0.18)

$

0.20

$

1.57

$

157,274

156,907

158,785(2.56)(0.02)(2.58)(2.56)(0.02)(2.58)
155,250(a) On July 31, 2020, the Company completed the sale of its Australia and New Zealand ("ANZ") businesses to Visy Industries Holdings Pty Ltd. The
Company recorded a net gain of approximately $275 million in the third quarter of 2020 related to this sale.

8

O‐I GLASS, INC.
Condensed Consolidated Balance Sheet(Dollars in millions)
Unaudited
AssetsCurrent assets:
Cash and cash equivalents
Trade receivables, net
Inventories
Prepaid expenses and other current assets
Total current assets

December 31,
2020

December 31,
2019

$

$

Property, plant and equipment, net
Goodwill
Intangibles, net
Other assets
Total assets
Liabilities and Share Owners' Equity
Current liabilities:
Accounts payable
Short‐term loans and long‐term debt due within one year
Other liabilities
Total current liabilities

2,907
1,951
325
1,402

551
621
1,045
271
2,488
3,273
1,934
371
1,544

$

8,882

$

9,610

$

1,126
197
575
1,898

$

1,276
124
595
1,995

Long‐term debt
Asbestos‐related liabilities
Paddock support agreement liability
Other long‐term liabilities
Share owners' equity
Total liabilities and share owners' equity

563
623
841
270
2,297

4,945

5,435
486

471
1,167
401
$

8,882

1,130
564
$

9,610

9

O‐I GLASS, INC.
Condensed Consolidated Cash Flow
(Dollars in millions)Three months ended
December 31

Unaudited

2020
Cash flows from operating activities:
Net earnings (loss)
Loss from discontinued operations
Non‐cash charges
Depreciation and amortization
Pension expense
Restructuring, asset impairment and related charges
Charges for asbestos‐related costs
Pension settlement charges
Goodwill impairment charge
Gain on sale of equity investment
Loss (gain) on sale of ANZ businesses
Other asset impairments
Cash payments
Pension contributions
Asbestos‐related payments
Cash paid for restructuring activities
Change in components of working capital
Other, net (a)Cash provided by continuing operating activities
Cash utilized in discontinued operating activities
Total cash provided by operating activities$

Year ended
December 31

2019
(25)
‐

$

2020
32
1

$

2019
264
‐

119
8
24
‐
18
‐
‐
5
36

129
8
13
35
13
‐
(107)
‐
22

(71)
‐
(5)
221
(1)
329
‐
329

(4)
(16)
(13)
485
55
653
(1)
652

(103)

Cash flows from investing activities:
Cash payments for property, plant and equipment
Acquisitions, net of cash acquired
Contributions and advances to joint ventures
Net cash proceeds on disposal of assets
Net cash proceeds on sale of ANZ businesses, net of transaction costs
Deconsolidation of Paddock
Other, net
Cash provided by (utilized in) investing activities

(65)
‐
‐
8
‐
‐
(1)
(58)

(93)
(33)
‐
195
‐
‐
(1)
68

(311)

Cash flows from financing activities:
Changes in borrowings, net
Treasury shares repurchased
Payment of finance fees
Dividends paid
Net cash proceeds for hedging activity
Distributions to noncontrolling interests
Sale leaseback proceeds in conjunction with ANZ sale
Other, net
Cash provided by (utilized in) financing activities
Effect of exchange rate fluctuations on cash
Increase (decrease) in cash
Cash at beginning of period
Cash at end of period

(330)
‐
(1)
‐
‐
(7)
‐
‐
(338)
24
(43)
606
563

(378)
‐
(54)
(7)
‐
(10)
‐
(1)
(450)
8
278
273
551

(630)

$

$

$

(382)
3

482
38
96

509
32
69
35
26
595
(107)

26

(275)
36

22
(33)
(151)
(54)
(176)
20
408
(3)
405

(37)
(181)
111
457
457

(426)
(190)
(22)
197

10
441
(47)

4
(437)

93

$

(51)
(8)
(8)
(12)
155
(3)
(557)
19
12
551
563

215
(38)
(85)
(31)
28
(17)
(4)
68
3
39
512
551

$

(a) Other, net includes other non‐cash charges plus other changes in non‐current assets and liabilities.

10

O‐I GLASS, INC.
Reportable Segment Information(Dollars in millions)Three months ended
December 31
2020
2019

Unaudited
Net sales:
Americas
EuropeAsia Pacific
Reportable segment totals
Other
Net sales

$

$

880
589
‐
1,469
28
1,497

$

$

Year ended
December 31
2020
2019

890
553
153
1,596

$ 3,322
2,364
281
5,967

$

32
1,628

124
$ 6,091

$

$

$

3,622
2,387
534
6,543
148
6,691

Segment operating profit (a):Americas
EuropeAsia Pacific

$

127
73
‐

$

115
69
19

395
264
19

495
317
44

Reportable segment totals

200

203

678

856

Items excluded from segment operating profit:
Retained corporate costs and otherItems not considered representative of ongoing operations(b)

(47)
(86)

(29)
(13)

(145)
85

(112)
(694)

Interest expense, net
Earnings (loss) from continuing operations before income taxes

$

(53)
14

$

(96)
65

$

(265)
353

$

(311)
(261)

0.9%

4.0%

5.8%

‐3.9%

Americas
EuropeAsia Pacific

14.4%
12.4%
‐

12.9%
12.5%
12.4%

11.9%
11.2%
6.8%

13.7%
13.3%
8.2%

Reportable segment margin totals

13.6%

12.7%

11.4%

13.1%

Ratio of earnings (loss) from continuing operations before income taxes to net sales
Segment operating profit margin (c):(a)

Segment operating profit consists of consolidated earnings before interest income, interest expense, and provision forincome taxes and excludes amounts related to certain items that management considers not representative of ongoing
operations as well as certain retained corporate costs.
The Company presents information on segment operating profit because management believes that it provides
investors with a measure of operating performance separate from the level of indebtedness or other related costs ofcapital. The most directly comparable GAAP financial measure to segment operating profit is earnings from continuing
operations before income taxes. The Company presents segment operating profit because management uses themeasure, in combination with net sales and selected cash flow information, to evaluate performance and to allocate
resources.

(b)

Reference Reconciliation to Adjusted Earnings.

(c)

Segment operating profit margin is segment operating profit divided by segment net sales.

11O‐I GLASS, INC.
Reconciliation to Adjusted Earnings(Dollars in millions, except per share amounts)
The reconciliation below describes the items that management considers not representative of ongoing operations.

Earnings (loss) from continuing operations attributable to the Company

Year ended
December 31

Three months ended
December 31
2020
2019

Unaudited$

Items impacting cost of goods sold:
Acquisition‐related fair value inventory adjustments
Items impacting other selling and administrative expense:
Restructuring, asset impairment and other charges
Items impacting equity earnings (losses) :Restructuring, asset impairment and other charges
Items impacting other expense, net:
Gain on sale of ANZ businesses
Charge for asbestos‐related costs

(29)

$

2020

32

$

2019
249

$

(397)
1
2

36

36

5

Charge for goodwill impairment
Restructuring, asset impairment and other charges
Strategic transaction and corporate modernization costs
Charge for deconsolidation of Paddock
Pension settlement charges
Gain on sale of equity investment
Items impacting interest expense:
Charges for note repurchase premiums and write‐off of finance fees
Items impacting income tax:
Net benefit for income tax on items above
Tax charge recorded for certain tax adjustments
Items impacting net earnings attributable to noncontrolling interests:
Net impact of noncontrolling interests on items above

(275)
35

35

26
1

41
31

595
111
31

18

13
(107)

7

(1)

106
8
14
26

26
(107)

39

44

65

(7)
3

(13)

(13)
3

(1)

(1)

(1)

Total adjusting items (non‐GAAP)

$

92

$

47

$

(55)

$

748

Adjusted earnings (non‐GAAP)

$

63

$

79

$

194

$

351

Diluted average shares (thousands)

157,274

156,907

158,785

155,250

Earnings (loss) per share from continuing operations (diluted)$(0.18)

$

0.20

$

1.57

$

(2.56)

Adjusted earnings per share (non‐GAAP) (a)

$

0.40

$

0.50

$

1.22

$

2.24

(a) For purposes of computing adjusted earnings per share, the diluted average shares (in thousands) are 156,651 for the year ended Dec. 31, 2019.
For purposes of computing adjusted earnings per share, the diluted average shares (in thousands) are 159,824 for the three months ended Dec. 31, 2020.
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 quarter ending
March 31, 2021 or year ending December 31, 2021, to its most directly comparable GAAP financial measure, earnings from continuing operations attributable to the Company, because
management cannot reliably predict all of the necessary components of this GAAP financial measure without unreasonable efforts. Earnings from continuing operations attributable to
the Company includes several significant items, such as restructuring charges, asset impairment charges, charges for the write‐off of finance fees, and the income tax effect on suchitems. The decisions and events that typically lead to the recognition of these and other similar items are complex and inherently unpredictable, and the amount recognized for each
item can vary significantly. Accordingly, the Company is unable to provide a reconciliation of adjusted earnings and adjusted earnings per share to earnings from continuing operations
attributable to the Company or address the probable significance of the unavailable information, which could be material to the Company's future financial results.

12

O‐I GLASS, INC.
Changes in Net Sales and Segment Operating Profit for Reportable Segments(Dollars in millions)
UnauditedThree months ended December 31,
EuropeAsia Pacific

Americas
Net sales for reportable segments‐ 2019
Effects of changing foreign currency rates (a)PriceSales volume & mix
Divestiture (ANZ)
Total reconciling items
Net sales for reportable segments‐ 2020

Segment operating profit ‐ 2019
Effects of changing foreign currency rates (a)Net Price (net of cost inflation)
Sales volume & mix
Operating costs
Divestiture (ANZ)
Total reconciling items
Segment operating profit ‐ 2020

$

$

890
(47)
19
18
(10)
880

Americas
$
115
(8)
(9)
6
23

$

12
127

$

$

Segment operating profit ‐ 2019
Effects of changing foreign currency rates (a)Net Price (net of cost inflation)
Sales volume & mix
Operating costs
Divestiture (ANZ)
Total reconciling items
Segment operating profit ‐ 2020

$

$

3,622
(204)
30
(126)
(300)
3,322

Americas
$
495
(19)
(38)
(54)
11

$

(100)
395

36
589

$

153

$

$

(153)
(153)
‐

$

Three months ended December 31,
EuropeAsia Pacific
$
69
$
19
4
15
(3)
(12)
(19)
4
(19)
$
73
$
‐

$

$

$

$

2,387
41
51
(115)
(23)
2,364

$

$

534
(17)
(7)
(229)
(253)
281

Year ended December 31,
EuropeAsia Pacific
317
$
44
1
(1)
51
(10)
(27)
(2)
(78)
12
(24)
(53)
(25)
264
$
19

1,596
(11)
33
4
(153)
(127)
1,469

Total
$

203
(4)
6
3
11
(19)
(3)
200

$

Year ended December 31,
EuropeAsia Pacific

Americas
Net sales for reportable segments‐ 2019
Effects of changing foreign currency rates (a)PriceSales volume & mix
Divestiture (ANZ)
Total reconciling items
Net sales for reportable segments‐ 2020

553
36
14
(14)

Total

Total
$

$

6,543
(180)
81
(248)
(229)
(576)
5,967

Total
$

856
(19)
3
(83)
(55)
(24)
(178)
678

$

(a) Currency effect on net sales and segment operating profit determined by using 2020 foreign currency exchange rates totranslate 2019 local currency results.

13

Unaudited
O‐I GLASS, INC.
Reconciliation to Free Cash Flow
(Dollars in millions)Year Ended
December 31, 2020
Cash provided by (utilized in) continuing operating activities
Cash payments for property, plant and equipment
Free cash flow (non‐GAAP)

$
$

457
(311)
146

Forecast for Year Ended
December 31, 2021
$
$

615
(375)
240

O‐I GLASS, INC.
Reconciliation to EBITDA

The Company is unable to present a quantitative reconciliation of its forward‐looking non‐GAAP measures, EBITDA, for the year ending December 31, 2021, to its most directly comparable GAAP
financial measures, earnings (loss) from continuing operations attributable to the Company because management cannot reliably predict all of the necessary components of this GAAP financial
measure without unreasonable efforts. Earnings (loss) from continuing operations attributable to the Company includes several significant items, such as restructuring charges, asset impairment
charges, charges for the write‐off of finance fees and the income tax effect on such items. The decisions and events that typically lead to the recognition of these and other similar items arecomplex and inherently unpredictable, and the amount recognized for each item can vary significantly. Accordingly, the Company is unable to provide a reconciliation of EBITDA to earnings (loss)
from continuing operations attributable to the Company or address the probable significance of the unavailable information, which could be material to the Company's future financial results.

O‐I GLASS, INC.
Reconciliation to Net Debt
Unaudited

Total debt
Cash and cash equivalents
Net Debt

December 31, 2020

December 31, 2019

$

$

$

5,142
563
4,579

$

5,559
551
5,008

O‐I GLASS, INC.
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, 2021,
to its most directly comparable GAAP financial measure, provision for income taxes divided by earnings (loss) from continuing operations before income taxes, because
management cannot reliably predict all of the necessary components of these GAAP financial measures without unreasonable efforts. Earnings (loss) from continuing
operations before income taxes includes several significant items, such as restructuring charges, asset impairment charges, charges for the write‐off of finance fees, andthe provision for income taxes would include the income tax effect on such items. The decisions and events that typically lead to the recognition of these and other similar
items are complex and inherently unpredictable, and the amount recognized for each item can vary significantly. Accordingly, the Company is unable to provide areconciliation of adjusted effective tax rate to earnings (loss) from continuing operations before income taxes divided by provision for income taxes or address the probable significanceof the unavailable information, which could be material to the Company's future financial results.

14