Libbey Inc. Investor Presentation - CJS "New Ideas" Summer Conference July 9, 2019
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Libbey Inc.
Investor Presentation
CJS “New Ideas” Summer Conference
July 9, 2019
1.
Management
Mike Bauer
Chief Executive Officer
Jim Burmeister
Senior Vice President, Chief Financial Officer
2.
Cautionary Statement
Material presented in today’s presentation includes forward-looking statements
about Libbey Inc. These statements are subject to risks and uncertainties, including
market conditions, competitive pressures, the value of the U.S. dollar and potential
significant cost increases. Please refer to the Company’s Form 10-K for fiscal year-
end December 31, 2018, filed on February 27, 2019, for further information.
This presentation may include financial information of which the Company’s
independent auditors have not completed their audit. Although the Company
believes that the assumptions upon which the financial information and its forward
looking statements are based are reasonable, it can give no assurances that these
assumptions will prove to be accurate.
This presentation also contains non-GAAP financial measures. We believe that the
Adjusted Earnings Before Interest Taxes Depreciation and Amortization, or Adjusted
EBITDA; Adjusted EBITDA margin; Trade Working Capital; Debt, net of cash to
Adjusted EBITDA; Adjusted Selling, General and Administrative expense; Return on
Invested Capital, or ROIC; and references to financial measures in constant currency
are meaningful measures for investors to compare our results from period to
period.
Reconciliations of the non-GAAP to GAAP measures may be found in the Appendix
of this presentation as well as in the previously filed earnings press releases.
3.
Corporate Overview
4.
Why Libbey? Investment Thesis
Positioned for
Global Tabletop Leader Improving Balance Sheet
Profitable Growth
•Global leader in design, production •Healthy pipeline of new products and •Positioned to increase Free Cash
and sale of tabletop products entering new business segments Flow(1) and continue to deleverage the
balance sheet
•Strong leadership with experience •Growing E-commerce business
that is aligned to the strategy •Ability to flex spending as needed
•Best in class service to highly
•Leading brands and market share diversified customer base •Capital allocation prioritizes strategic
investments and debt reduction over
returning capital to shareholders
•Licensing agreements and • Global Manufacturing Network that is
partnerships aligned to the marketplace and
strategy to improve ROIC(1) • ABL maturity extended
•Low cost production with broad
distribution •ERP will simplify go to market, •Opportunity to improve Trade
improve productivity and enable new Working Capital(1)
technology
(1) - see Appendix for definition of non-GAAP measure.
5.
Recent Developments: Moving Libbey Forward
New Leadership Provides Fresh Perspective
• Mike Bauer appointed CEO in March 2019
• Extensive leadership experience in consumer product manufacturing, with success driving profitable growth
strategies and multi-channel margin expansion initiatives
Footprint Rationalization and Fixed Asset Optimization
• Rightsizing asset footprint via announced strategic review of our China business
• Safely extending the life of our fixed assets through advanced monitoring technology
• Implementing ERP system to drive anticipated cost savings and improve production planning
Anticipate E-commerce Becoming Accretive
• Investments in e-commerce are enhancing sales mix and margins, while improving how Libbey reaches
consumers and end-users
• Expansion of e-commerce capabilities is helping uplift other sales channels, including brick and mortar retail
SG&A Cost Normalizing
• SG&A focused on supporting e-commerce, ERP and new product development has elevated spend in recent
years; expectation to return to historical levels, ~14.5%(1), through disciplined spending and structural
optimization, with uplift from ERP
Debt Refinancing Remains a Priority
• Evaluating optimal time to execute Term Loan B refinancing, addressing 2021 maturity
6.
(1) – see Appendix for definition of Adjusted SG&A Margin
CO R P O R AT E OV E RV I E W
Libbey Overview
7.
C O R P O R AT E OV E RV I E W
Our manufacturing and supply chain platform allows us
to reach customers across the globe
8.
CORPORATE OVERVIEW
Our business model is designed to serve customers in
three distinct channels
2018 Net Sales 2018 Net Sales 2018 Segment
by Channel by Segment EBIT
EMEA
Other Other
B2B 12%
EMEA 3% 3%
Retail 27%
17% Latin America
32% 22%
Latin America
Foodservice 19% U.S. & Canada
U.S. & Canada
41% 61%
63%
9.
C O R P O R AT E OV E RV I E W
Globally, Libbey competes in four categories of products
~88% OF SALES
Tumblers, stemware, mugs, bowls, floral, salt shakers, shot glasses,
canisters, candleholders
Bakeware, handmade tableware, blender jars, mixing bowls, floral, and
candles
~12% OF SALES
Plates, bowls, platters, cups, saucers, and other tableware accessories
Knives, forks, spoons, serving utensils, serving
trays, pitchers, other metal tableware accessories
10.CO R P O R AT E OV E RV I E W
Foodservice channel: 2018 net sales of $328M
WE SELL TO THE LARGEST CUSTOMERS IN THE
• Market leader recognized for FOODSERVICE INDUSTRIES:
excellence by leading foodservice CRISTALERIA DEL ANGEL-
distributors Equipment & Supply
CRISTALERIA MONACO-
• Extensive product line and steady Equipment & Supply
pace of innovation has enabled U.S. EDWARD DON & COMPANY-
price increases in 44 of last 48 years Equipment & Supply
JOHN ARTIS-
• Strong foodservice network and in- UK Equipment & Supply
house salesforce selling to established SYSCO-
restaurants, hospitality and tourism Broad Line
along with other categories TRIMARK-
Equipment & Supply
• ‘Annuity like’ revenue stream with a US FOODS-
strong ‘installed base’ of customers Broad Line
reordering based on table setting WASSERSTROM-
placements Equipment & Supply
WEBSTAURANT-
• Best in class service Web-based distribution
11.CO R P O R AT E OV E RV I E W
Retail channel: 2018 net sales of $257M
• U.S. casual glass beverageware STRONG RELATIONSHIPS WITH MAJOR RETAILERS:
leader; market share in brick and
mortar estimated at ~35%…more than
twice the next competitor(1) AMAZON
• Highly recognized brands and BED BATH & BEYOND
leading private label supplier CRATE & BARREL
• New E-commerce capabilities position DOLLAR TREE
the company for continued leadership; IKEA
~400 SKUs online
METRO
• Extensive branded product lines
including bakeware and serveware SORIANA
TARGET
• Established retail relationships
provide a platform to launch TESCO
innovative products that meet WALMART
consumer wants and needs
WAYFAIR
(1) NPD and Management Estimates 12.CO R P O R AT E OV E RV I E W
Business-to-business channel: 2018 net sales of $214M
ESTABLISHED GROUP OF B2B CUSTOMERS:
• The business-to-business channel
offers diverse opportunities for BATH & BODY
growth WORKS
• Established global supplier of DIAGEO
decorated glassware for promotions HEINEKEN
• OEM supplier to leading appliance NEWELL
manufacturers STAR SOAP &
CANDLE
• Growing in houseware applications:
decorated beverageware and glass SUNBEAM
components for candles and floral SYNDICATE SALES
applications INC.
WHIRLPOOL
13.Strategy Overview
14.C R E AT I N G M O M E N T U M ST R AT E G Y
(1)
(1)
(1) - see Appendix for definition of non-GAAP measure. 15.New Product Development
Profitable Growth
16.PROFITABLE GROWTH: NEW PRODUCT DEVELOPMENT
To drive transparency on financial benefits we launched an impact metric to
measure the progress of our new products
Each quarter, we report what percentage of our sales within the
period are driven by products launched in the previous 36 months
• It takes between 12 and 18 months to achieve placement and see growth
• E-commerce accelerates the curve
• Provides an opportunity to improve gross margins
• This revenue is not 100% incremental; however, it is necessary to maintain the
health of our revenue stream, enter new markets, and offset traffic declines
• Incorporated into executive compensation metrics
A steady pipeline of new products sustains the health of our portfolio
17.PROFITABLE GROWTH: NEW PRODUCT DEVELOPMENT
Long-term goal is to have new products represent 8-9% of annual
global net sales
Global New Products % Net Sales
12.0%
• It generally takes 12-18 months to
10.0% reach run rate…2017 and early 2018
launches are gaining momentum
Long Term Target 8-9%
8.0%
6.0% • NPD is offsetting market declines and
providing growth in our planning
4.0%
2.0% • Global process expansion is underway
0.0%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
New products are essential for sustainable margins and growth
18.PROFITABLE GROWTH: NEW PRODUCT DEVELOPMENT - HEALTHCARE
Foodservice entered growing Healthcare market in 2018
• 10,000 people a day are turning 65(1) % of 65+ is Growing in the U.S.
2014 2020 2030 2040 2050 2060
• By 2030, over 20% of the population will
14.5% 16.8% 20.6% 21.7% 22.1% 23.6%
be 65+ years of age(2)
Population by Age in
the United States
• Baby Boomers* have 70 percent of the 450
in millions
nation’s disposable `income and stand to 400
98
88
inherit $15 trillion over the next 20 350
46 56
74
82
65+
300
years(3) 250 Up to 64
200
285 306 310 319
150 275 278
• Financially, the goal is for seniors to 100
remain independent and receive the least 50
amount of support needed for as long as 0
2014 2020 2030 2040 2050 2060
possible
65+ population more than 50% growth
*born between 1946-1964
Sources: in 16 years to 74 million
(1) - U.S. Census Bureau
(2) - Senior Housing News
(3) - MetLife/Boston College Center for Retirement Research 19.PROFITABLE GROWTH: NEW PRODUCT DEVELOPMENT - HEALTHCARE
Intuitive Diningware™ line is designed to service the specialized
needs required by healthcare facilities
Six aspects are considered in the curation and design of all
products in our Intuitive Diningware collection:
Vision, Grip, Coordination, Dietary, Emotion and Safety
Libbey® Intuitive Diningware™
helps create dining experiences that are more inspiring,
accessible and dignified for all.
Our passion, perspectives and full-spectrum tableware
selection deliver insights-driven solutions that support your
success.
Fully Engage the Healthcare Market
20.PROFITABLE GROWTH: NEW PRODUCT DEVELOPMENT - HEALTHCARE
Dedicated product offerings are a perfect fit for the
Healthcare market
Comfort Bowl
• Easy to grip due to raised rim
• Discreet banded edged; helps diner scoop food easily
Donna Senior Cup and Saucer
• Wider cup handles for easier grip
• Color target saucer assisting people with reduced vision
• Low well in saucer helps protect against tipping
Constellation™ Dinnerware
• Exclusive Microban® Technology1
Ergonomic Flatware
• Knob handle for those with arthritis and limited dexterity
• Shapes facilitate easier scooping and cutting function
Infinium™ Beverageware
• Non-glass, lightweight with a textured body for added grip
1 – ConstellationTM is the first-ever porcelain dinnerware with Microban® technology, which helps to minimize bacterial growth that
contributes to the presence of stains and lingering odors; applies only to bacteria that can cause stains, odors, and product degradation 21.E-Commerce
Profitable Growth
22.E - CO MME RCE
Investment is beginning to pay off
✓ Bringing new products to market faster… at improved price
points…enhancing overall product and margin mix
✓ E-commerce sales are increasing as a percentage of total
• Example: U.S. retail sales…we expect to go from 12% in 2018 to >20% by 2021
✓ Investments supporting sales in existing brick and mortar
outlets
Omni-Channel approach is beneficial
to our customers
23.Operational Excellence
24.O P E R AT I O N A L E XC E L L E N C E
Current State
Optimize Optimize Global
Deliver Best in Class
Inventory Profile Manufacturing
Service
Network
Significant improvements made over the last 12 months to improve our Global
Manufacturing Network striving to improve ROIC(1)
• We have established ourselves as the leader in servicing the customer; On-Time and In-Full (OTIF)
orders over 90%
• We have reduced capacity on processes in the United States where we were undersold and are
using the available glass on processes that are sold out
• We have improved our commercial margin profile in all regions and are adding new capabilities to
support market needs
• We have invested in numerous projects to improve safety, quality, delivery and cost
(1) - see Appendix for definition of non-GAAP measure. 25.Financial Overview
26.F I N A N C I A L OV E RV I E W
2019 focuses on driving cash earnings through a disciplined
approach
$ in millions
2018 Actual 2019 Est.(1)
Revenue growth $798 $806 – $822
2.1% 1%-3%
Adjusted EBITDA margins(2) 8.9% 8.5% - 10%
Net debt to Adjusted EBITDA(2) 5.3x 4.0x – 5.0x
ROIC(2) 4.1% 4% - 6%
Capital Expenditures $45 $35-$40
(1) - These projections are based on the Company’s organic business targets and do not reflect the potential impacts of any merger, acquisition, divestiture or other corporate restructuring activity
(2) – See Appendix for non-GAAP definitions and reconciliations to nearest U.S. GAAP measure
27.F I N A N C I A L OV E RV I E W
Q1 Adjusted EBITDA(1) Walk vs. Prior Year
$ in millions
15.0
$1.0 $0.1 ($0.7)
13.0
$11.9 ($1.6)
11.0 ($0.7)
($1.0) $0.7 $9.7
9.0
Healthcare ($0.8)
7.0
5.0
Prior Year Impact of Currency Manufacturing Shipping & Utilities Benefits Other Adjusted
Sales Activity Storage EBITDA
Activity
(1) See our first-quarter 2019 press release filed on form 8-K on April 30, 2019, for a reconciliation of Adjusted EBITDA to net income (loss) 28.F I N A N C I A L OV E RV I E W
Key Financial Data
First Quarter ‘19 & ’18
Unaudited First Quarter
$ in millions, except per share data '19 '18 VPY
Net sales $ 175.0 $ 181.9 $ (6.9)
Gross profit $ 34.0 $ 33.7 $ 0.3
Gross profit margin 19.4% 18.5% 90 bps
Selling, general & administrative expenses $ 32.6 $ 31.5 $ (1.1)
Net income (loss) $ (4.5) $ (3.0) $ (1.5)
Net income (loss) margin (2.6%) (1.6%) (100) bps
Diluted EPS $ (0.20) $ (0.13) $ (0.07)
Adjusted EBITDA (1)(2) (non-GAAP) $ 9.7 $ 11.9 $ (2.2)
Adjusted EBITDA margin (1)(2) (non-GAAP) 5.6% 6.6% (100) bps
Unaudited March 31, March 31, December
$ in millions, except ratio 2019 2018 31, 2018
(1)(2)
Trade Working Capital (non-GAAP) $ 216.4 $ 215.9 $ 201.2
(1)(2)
Debt, net of cash to Adjusted EBITDA ratio (non-GAAP) 6.0 x 5.1 x 5.3 x
(1) See the Appendix for definitions of non-GAAP measures.
(2) See our first-quarter 2019 press release filed on form 8-K on April 30, 2019, for reconciliations of Adjusted EBITDA, Adjusted EBITDA Margin, Trade
Working Capital and Debt, net of cash to Adjusted EBITDA ratio to the most directly comparable U.S. GAAP measure.
29.Capital Allocation
30.F I NANC I AL OV E RV I E W
Libbey’s priorities remain: reduce debt and make strategic
investments to improve the business
Debt Reduction Repayment of debt will continue
& Capital to be a short and long-term focus
Discipline of the Company
Cash from
Operations
Strategic Investments to profitably grow
Investments the Company
31.F I N A N C I A L OV E RV I E W
Libbey has a history of reducing debt and strengthening
the balance sheet
Reducing Debt on Balance Sheet
• Outstanding debt near its lowest levels Gross Debt by Year
Millions ($)
since 2006 (acquisition of Mexico 500
$466
business); peaked at $555MM in 2008 450
$445
$437
$413 $412
• Repaid $45 million in debt since 2014 in 400 $388
$400
order to strengthen balance sheet 350
• Debt temporarily higher in 2018 driven by 300
increased inventory levels as well as 2012 2013 2014 2015 2016 2017 2018
investments in ERP and e-commerce
initiatives
32.FINANCIAL OVERVIEW
Interest expense has remained stable as debt
reduction and swap provide protection
• Term Loan B Capital Structure
• LIBOR plus 300 bps (currently 5.4%) Interest Expense vs. Federal Funds Rate
• Maturity 2021 30 Millions ($)
Fed Funds Rate %
3.00
• No financial covenants 25 $23 $22 2.50
$21 $20
• $150MM accordion option 20 $18 2.00
15 1.50
• Interest Rate Swaps 10 1.00
• Providing interest protection in a rising 5 0.50
0 0.00
rate environment 2014 2015 2016 2017 2018
• $220MM fixed at 4.8575%(1) through early
2020 • $100MM ABL Credit Facility
• $200MM fixed at 6.19%(1) 2020 through • LIBOR plus 150-200 bps
2025 • Maturity 2022
(1) – The swap interest rates are calculated using the current credit spread of 300bps on the Term Loan B. This credit spread is
subject to change when the current debt is refinanced. 33.Appendix
34.First Quarter 2019 Results
35.2019 First-quarter Highlights
▪ Gross profit improvement, a result of improved pricing, First Quarter
lower depreciation and solid operational execution 2019
($ in millions)
▪ Continued execution of Creating Momentum Strategy
through continued challenged economic conditions Net Sales $175.0
Y-O-Y Change (3.8 %)
Y-O-Y Constant Currency (1) (2.1 %)
▪ E-commerce sales represented approximately 13% of
total U.S. & Canada retail sales; an increase of 39% Gross Profit $34.0
versus prior year Y-O-Y Change +0.9 %
Y-O-Y Constant Currency (1) +2.8 %
▪ New products drove approximately $12.5MM of sales, Y-O-Y Margin Change +90 bps
or 7.1% of net sales Adjusted EBITDA(2) $9.7
Y-O-Y Change (18.4 %)
▪ On-time and in-full (OTIF) remained strong; well over Y-O-Y Constant Currency (1) (18.8 %)
90% Y-O-Y Margin Change (100 bps)
(1) See the Appendix for definitions of non-GAAP constant currency measures.
(2) See our first-quarter 2019 press release filed on form 8-K on April 30, 2019, for reconciliations of Adjusted EBITDA to the most directly comparable U.S. GAAP
measure.
36.International Housewares Show
▪ Introduction of over 135 new products, including 60 into the
beverageware category
▪ New innovative lids for our Bakeware and Storageware products based
on consumer insights from focus group research
▪ Trendy textured and patterned products in our floral and candle
categories
37.First-quarter Progress in E-commerce
▪ Sales represented approximately
13 percent of US and Canada retail
sales
▪ Experiencing nearly 100 percent
on-time shipping for our orders
being fulfilled through our 3PLs
▪ Launch of Intuitive Dining
healthcare line on the digital
platform, 27 SKUs available today
38.$ in millions
Q1 2019 Net Sales of $175.0 vs. $181.9 in Q1 2018
U.S. & Canada Latin America
$115 $50
$3.0 ($2.8) $1.8 $109.9
$107.9
$45
$105
$40
$35 $34.3 ($2.1)
$95 ($0.7) ($1.1) $30.4
$30
$85 $25
Q1 '18 Retail Foodservice B2B Q1 '19 Q1 '18 Retail Foodservice B2B Q1 '19
Net Sales Net Sales Net Sales Net Sales
EMEA Other
$50 $40
$45 $30
$40
$20
$35 $32.2 ($1.2) ($0.8) $7.4 $0.1 ($0.9)
$30
($2.1)
$28.0 $10 $0.0 $6.6
$25 $0
Q1 '18 Retail Foodservice B2B Q1 '19 Q1 '18 Retail Foodservice B2B Q1 '19
Net Sales Net Sales Net Sales Net Sales
39.2019 Outlook from Q1 2019 Earnings Call
▪ Net Sales increase in the low-single digits, compared to
2018
▪ Adjusted EBITDA margin(1) between 8.5%-10%
▪ Capital Expenditures and ERP capital(2) in the range of
$35 - $40 million
▪ SG&A ~16% of net sales
(1) See our first-quarter 2019 press release filed on form 8-K on April 30, 2019, for a reconciliation of Net Income Margin to Adjusted EBITDA Margin. 40.
(2) See New Accounting Standards Adopted in the Quarterly Report filed May 1, 2019 on Form 10-Q for the quarter-ended March 31, 2019.GAAP & Non-GAAP
Reconciliations
41.Definition and reconciliation of non-GAAP measures
Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) and Adjusted
EBITDA Margin
(Dollars in millions)
Q1 2019 Q1 2018 FY 2018 FY 2017 FY 2016 FY 2015 FY 2014
Net income (loss) (U.S. GAAP) $ (4.5) $ (3.0) $ (8.0) $ (93.4) $ 10.1 $ 66.3 $ 5.0
Add:
Interest expense $ 5.6 $ 5.1 $ 22.0 $ 20.4 $ 20.9 $ 18.5 $ 22.9
Provision (benefit) for income taxes (1.3) (2.1) 10.3 15.8 17.7 (38.2) 8.5
Depreciation and amortization 9.9 11.9 44.3 45.5 48.5 42.7 40.4
Add: Special items before interest and taxes:
Restructuring and facility closure charges - - - - - - 1.0
Pension curtailment and settlement charges - - - - 0.2 21.7 0.8
Loss on redemption of debt - - - - - - 47.2
Abandoned property - - - - - - -
Goodwill impairment charges - - - 79.7 - - -
Product portfolio optimization - - - - 5.7 - -
(1)
Other - - 2.3 2.5 8.5 5.3 (3.5)
Adjusted EBITDA (non-GAAP) $ 9.7 $ 11.9 $ 71.0 $ 70.6 $ 111.6 $ 116.3 $ 122.1
$ 119.2
Net sales $ 175.0 $ 181.9 $ 797.9 $ 781.8 $ 793.4 $ 822.3 $ 852.5
Net income (loss) margin (U.S. GAAP) (2.6%) (1.6%) (1.0%) (11.9%) 1.3% 8.1% 0.6%
Adjusted EBITDA Margin (non-GAAP) 5.6% 6.6% 8.9% 9.0% 14.1% 14.1% 14.3%
(1) 2018 includes $2.3 million for legal and professional fees associated with a strategic initiative. 2017 includes $2.5 million for reorganization charges. 2016 includes $4.1
million for work stoppage and $4.4 million for executive terminations. 2015 includes $4.2 million for reorganization charges, $0.9 million for executive termination, and $0.2
million for an environmental obligation. 2014 includes $(4.7) million for furnace malfunction net proceeds, $0.9 million for executive retirement charges, and $0.3 million for an
environmental obligation.
Adjusted EBITDA excludes special items that Libbey believes are not reflective of our core operating performance.
42.Definition and reconciliation of non-GAAP
measures
Computation of Adjusted EBITDA to Debt net of cash to Adjusted EBITDA Ratio
(Dollars in millions)
LTM Q1 LTM Q1
2019 2018 FY 2018 FY 2017 FY 2016 FY 2015 FY 2014
Adjusted EBITDA (1) (non-GAAP) $ 68.8 $ 76.2 $ 71.0 $ 70.6 $ 111.6 $ 116.3 $ 122.1
(2)
Debt reported on balance sheet (U.S. GAAP) $ 422.0 $ 412.4 $ 397.7 $ 384.4 $ 407.8 $ 431.0 $ 437.9
(2)
Plus: Unamortized discount and finance fees 2.1 3.1 2.4 3.3 4.5 5.8 7.0
Less: Carrying value adjustment on debt related to the Interest
Rate Agreement - - - - - - -
Gross Debt 424.1 415.5 400.1 387.7 412.3 436.9 444.9
Less: Cash and cash equivalents 15.0 25.7 25.1 24.7 61.0 49.0 60.0
Debt net of cash $ 409.2 $ 389.7 $ 375.0 $ 363.0 $ 351.3 $ 387.9 $ 384.9
Debt net of cash to Adjusted EBITDA Ratio (non-GAAP) 6.0 5.1 5.3 5.1 3.1 3.3 3.2
(1) - See prior page for calculation and reconciliation to net income.
(2) - All years reflect retrospective adoption of ASU 2015-03 and 2015-15, which presents debt issuance costs of senior debt as a reduction to the liability.
43.Definition and reconciliation of non-GAAP
measures Definitions – Other Non-GAAP Measures
▪ Adjusted EBITDA and Adjusted EBITDA Margin
Calculation of Return on Invested Capital (ROIC) ‒ U.S. GAAP net income (loss) plus interest expense, provision for income
(dollars in millions) taxes, depreciation and amortization, and special items, when
applicable, that Libbey believes are not reflective of our core operating
FY 2018 performance
Reported income from operations $ 27.0 ▪ Adjusted SG&A and Adjusted SG&A Margin
Add: Adjustments ‒ U.S. GAAP selling, general and administrative expenses less special
items that Libbey believes are not reflective of our core operating
Legal and professional fees associated with a strategic initiative 2.3
performance
Adjusted income from operations 29.4
Factor to apply taxes 65%
▪ Trade Working Capital
‒ Net accounts receivable plus net inventories less accounts payable
After tax adjusted income from operations $ 19.1
▪ Debt, Net of Cash to Adjusted EBITDA Ratio
‒ Gross debt before unamortized discount and finance fees, less cash and
cash equivalents, divided by last twelve months Adjusted EBITDA
Reported property, plant and equipment, net $ 265.0 (defined above)
▪ Constant Currency
Accounts receivable 84.0 ‒ Constant currency references regarding net sales reflect a simple
Inventories 192.1 mathematical translation of local currency results using the comparable
Less: Accounts payable 74.8 prior period’s currency conversion rate
Reported Trade Working Capital $ 201.2 ‒ Constant currency references regarding Adjusted EBITDA and Adjusted
EBITDA Margin comprise a simple mathematical translation of local
Total Invested Capital $ 466.2 currency results using the comparable prior period’s currency
conversion rate plus the transactional impact of changes in exchange
rates from revenues, expenses and assets and liabilities that are
ROIC 4.1% denominated in a currency other than the functional currency
44.Disclaimer
45.This presentation is being shared by Libbey Inc. (the “Company”) for informational purposes only and is not, and may not be relied on in any manner as, legal, tax, investment, accounting or other advice. This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation (Reform Act of 1995, that involve a number of risks and uncertainties. These statements relate to future events, the Company’s future financial performance with respect to the Company’s financial condition, results of operations, business plans and strategies, operating efficiencies or synergies, competitive positions, growth opportunities for existing products, plans and objectives of the Company’s management, capital expenditures and other matters. These statements involve known and unknown risks, significant uncertainties and other factors (many of which are beyond the control of the Company) that may cause the Company or the Company’s industry’s actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek” or “continue” or the negative of those terms or other comparable terminology. These statements are only predictions and actual results may differ from predictions and such differences may be material. Any forward-looking statements that we make in this presentation speak only as of the date this presentation is given, and we undertake no obligation to update such statements. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data. Although we base these forward-looking statements on assumptions that we believe are reasonable when made, we caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition, liquidity, prospects, growth, strategies, position in the market and the development of the industry in which we operate may differ materially from those described in or suggested by the forward-looking statements contained in this presentation. In addition, even if our results of operations, financial condition, liquidity, prospects, growth, strategies, position in the market and the development of the industry in which we operate are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. The Company advises you that in the normal course of its business it evaluates potential strategic opportunities that may be available from time to time, including acquisitions, dispositions, mergers, private equity financings and other corporate transactions. The Company’s evaluation of such opportunities may involve discussions and negotiations with interested parties concerning the proposed terms and conditions of a potential transaction. As a matter of policy, the Company does not comment on such matters unless negotiations with interested parties have advanced to the point where they would be material to a reasonable investor and the Company is legally obligated to disclose such negotiations. This presentation and today’s prepared remarks contain non-GAAP financial measures. We believe that the Adjusted Earnings Before Interest Taxes Depreciation and Amortization, or Adjusted EBITDA; Adjusted EBITDA margin; Adjusted Selling, General & Administrative Expense (Adjusted SG&A); Trade Working Capital; Debt, net of cash to Adjusted EBITDA; Return on Invested Capital, or ROIC; and references to sales in constant currency are meaningful measures for investors to compare our results from period to period. Reconciliations of the non-GAAP to GAAP measures may be found in the Appendix of this presentation as well as in the earnings press release and the supplemental financials. This presentation also contains estimates and other statistical data made by independent parties and by the Company relating to market size and growth and other industry data. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. The Company has not independently verified the statistical and other industry data generated by independent parties and contained in this presentation and, accordingly, it cannot guarantee their accuracy or completeness. In addition, projections, assumptions and estimates of its future performance and the future performance of the industries in which it operates are necessarily subject to a high degree 46. of uncertainty and risk due to a variety of factors.
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