libbey inc. investor presentation...2019/01/09 · 3 ma terial provided in this presentation...

Libbey Inc. Investor Presentation

January 2019

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Joe Huhn Vice President, General Manager, U.S. and Canada • 23 years Corporate Finance Experience

• 1 year serving as Vice President, FP&A and Investor Relations

• 3 years serving as Group CFO, U.S. and Canada

• Finance Director for 8 years at Whirlpool

Jim Burmeister Senior Vice President, Chief Financial Officer • VP, Finance & Treasurer, The Anderson’s, Inc. • VP, Finance, Owens Corning

• GE Corporate Audit Staff

• Captain in the Marine Corps

Management

Bill Foley Chairman and Chief Executive Officer • Served as Chairman & CEO of Blonder Accents,

Blonder Company, LESCO Inc., and Think Well Inc.

• Director of Company Since 1994

• First 14 Years of his career at Anchor Hocking Corp.

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Material provided in this 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, 2017, filed on March 1, 2018 for further information.

This presentation includes financial information of which the Company’s independent auditors have not completed their review. 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; 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 previously filed earnings press releases.

Safe Harbor Statement

Corporate Overv iew

Libbey overview CORPORATE OVERVIEW

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Our manufacturing and supply chain platform allows us to reach customers across the globe

CORPORATE OVERVIEW

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Latin America 18%

EMEA 16%

Other 4%

U.S. & Canada 62%

2017 Net Sales by Segment

2017 Net Sales by Channel

2017 Segment EBIT

Retail 32%

B2B 26%

Foodservice 42%

Latin America 13%

EMEA 3%

U.S. & Canada 92%

Other (8%)

Our business model is designed to serve customers in three distinct channels

CORPORATE OVERVIEW

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Globally, Libbey competes in four categories of products

~87% OF SALES

Tumblers, stemware, mugs, bowls, floral, salt shakers, shot glasses, canisters, candleholders

~13% OF SALES

Bakeware, handmade tableware, blender jars, mixing bowls, floral, and candles

Plates, bowls, platters, cups, saucers, and other tableware accessories

Knives, forks, spoons, serving utensils, serving trays, pitchers, other metal tableware accessories

CORPORATE OVERVIEW

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Libbey has a strong portfolio of brands CORPORATE OVERVIEW

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• Market leader recognized for excellence by leading foodservice distributors

• Extensive product line and steady pace of innovation has enabled U.S. price increases in 43 of last 47 years

• Strong foodservice network and in-house salesforce selling to established restaurants, hospitality and tourism along with other categories

• ‘Annuity like’ revenue stream with a strong ‘installed base’ of customers reordering based on table setting placements

• Best in class service

Foodservice channel: 2017 net sales of $328M

CRISTALERIA DEL ANGEL- Equipment & Supply

CRISTALERIA MONACO- Equipment & Supply

EDWARD DON & COMPANY- Equipment & Supply

JOHN ARTIS- UK Equipment & Supply

SYSCO- Broad Line

TRIMARK- Equipment & Supply

US FOODS- Broad Line

WASSERSTROM- Equipment & Supply

WEBSTAURANT- Web-based distribution

CORPORATE OVERVIEW: FOODSERVICE

WE SELL TO THE LARGEST CUSTOMERS IN THE FOODSERVICE INDUSTRIES:

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• U.S. casual glass beverageware leader; market share in brick and mortar estimated at ~35%…more than twice the next competitor(1)

• Highly recognized brands and leading private label supplier

• New E-commerce capabilities position the company for continued leadership; ~400 SKUs online

• Extensive branded product lines including bakeware and serveware

• Established retail relationships provide a platform to launch innovative products that meet consumer wants and needs

Retail channel: 2017 net sales of $249M

STRONG RELATIONSHIPS WITH MAJOR RETAILERS:

AMAZON

BED BATH & BEYOND

CRATE & BARREL

DOLLAR TREE

IKEA

METRO

SORIANA

TARGET

TESCO

WALMART

WAYFAIR

(1) NPD and Management Estimates

CORPORATE OVERVIEW: RETAIL

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• The business-to-business channel offers diverse opportunities for growth

• Established global supplier of decorated glassware for promotions

• OEM supplier to leading appliance manufacturers

• Growing in houseware applications: decorated beverageware and glass components for candles and floral applications

Business-to-business channel: 2017 net sales of $204M

ESTABLISHED GROUP OF B2B CUSTOMERS:

BATH & BODY WORKS

DIAGEO

HEINEKEN

NEWELL

STAR SOAP & CANDLE

SUNBEAM

SYNDICATE SALES INC.

WHIRLPOOL

CORPORATE OVERVIEW: B2B

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Strategy Overv iew

CREATING MOMENTUM STRATEGY

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In 2016 we implemented efforts to build a new product pipeline to drive profitable growth

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U.S. and Canada launched 647 products in 2017

U.S. and Canada region has a strong pipeline for next 3 years

• $175M pipeline through 2020

• 26 projects underway

• 450+ products launched in 2018

Sales from new products are offsetting losses from declining markets and providing growth

NEW PRODUCT DEVELOPMENT

Driving Revenue

& Margin Growth

in recent quarters

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Long-term goal is to have new products represent 8-9% of annual global net sales

• It generally takes 12-18 months to reach run rate…2017 launches are gaining momentum

• NPD is offsetting market declines and providing growth in our planning

• Global process expansion is underway 7.0%

7.2%

7.4%

7.6%

7.8%

8.0%

8.2%

8.4%

8.6%

2018 Est. 2019 Est. 2020 Est.

Global New Products % Net Sales

New products are essential for sustainable margins and growth

NEW PRODUCT DEVELOPMENT

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0

100

200

300

400

500

2014 2020 2030 2040 2050 2060

275 278 285 306 310 319

46 56 74 82 88 98

65+

Up to 64

The business of aging is becoming big business …

• 10,000 people a day are turning 65(1)

• By 2030, over 20% of the population will be 65+ years of age(2)

• Baby Boomers* have 70 percent of the nation’s disposable income and stand to inherit $15 trillion over the next 20 years(3)

• Financially, the goal is for seniors to remain independent and receive the least amount of support needed for as long as possible

*born between 1946-1964 Sources: (1) - U.S. Census Bureau (2) - Senior Housing News (3) - MetLife/Boston College Center for Retirement Research

65+ population more than 50% growth

in 16 years to 74 million

2014 2020 2030 2040 2050 2060

14.5% 16.8% 20.6% 21.7% 22.1% 23.6%

% of 65+ is Growing in the U.S.

Population by Age in the United States

$ in millions

NEW PRODUCT DEVELOPMENT: HEALTHCARE

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Ful ly Engage the Heal thcare Market

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.

Six aspects are considered in the curation and design of all products in our Intuitive Diningware collection:

Vision, Grip, Coordination, Dietary, Emotion and Safety

Intuitive Diningware™ line is designed to service the specialized needs required by healthcare facilities


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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

E-Commerce

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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 9% in 2017 to >20% by 2021

Investments supporting sales in existing brick and mortar outlets

E-COMMERCE

Omni-Channel approach is beneficial to our customers

Operat ional Excel lence

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Current State

OPERATIONAL EXCELLENCE

Significant improvements made over the last 12 months to improve our Global Manufacturing Network driving improved ROIC(1)

• We have established ourselves as the leader in servicing the customer

• 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.

Financia l Overview and Capi ta l Al locat ion

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Why Libbey? Investment Thesis Global Tabletop

Leader

•Global leader in design, production and sale of tabletop products

•Strong leadership with experience that is aligned to the strategy

•Leading brands and market share

•Licensing agreements and partnerships

•Low cost production with broad distribution

Positioned for Profitable Growth

•Best in class service to highly diversified customer base

•Healthy pipeline of new products and entering new business segments

•Growing E-commerce business

• Global Manufacturing Network that is aligned to the marketplace and strategy to improve ROIC(1)

•ERP will simplify go to market, improve productivity and enable new technology

Improving Balance Sheet

•Positioned to increase Free Cash Flow(1) and continue to deleverage the balance sheet

•Capital allocation prioritizes strategic investments and debt reduction over returning capital to shareholders

• ABL extended

•Ability to flex spending as needed

•Opportunity to improve Trade Working Capital(1)

(1) - see Appendix for definition of non-GAAP measure.

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Continuous improvement; return to long-term financial goals by 2021

Goal 2017 Actual 2018 Est.(1) 2021 Est.(1)

Revenue growth 2% to 5% $782 (1.5%)

$790 – $805 1%-3%

$840 - $900 4 – year CAGR ~2-3%

Adjusted EBITDA margins(2) 14% to 16% 9.0% ~10%

~14% - 15% $118 - $135

Net debt to Adjusted EBITDA(2) 2.0x to 3.0x 5.1x 4.0x – 4.5x 2.3x - 2.7x

ROIC(2) Maintain 11% to 13%

4.0% 5% - 6% 10% - 12%

Capital Expenditures

$45 - $55 $48 ~$50 $45 - $55

(1) - These projections are based on the Company’s organic business targets as of Q3 ‘18 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

$ in millions

FINANCIAL OVERVIEW

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A history of reducing debt

Reducing Debt on Balance Sheet • Outstanding debt at its lowest levels since

2006

• Repaid over $55 million in debt over the

last 3 years in order to strengthen balance

sheet

$466

$413

$445 $437

$412

$388

300

350

400

450

500

2012 2013 2014 2015 2016 2017

Gross Debt by Year Millions ($)

FINANCIAL OVERVIEW

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Interest expense remains stable as debt reduction and swap provide protection

• Term Loan B • LIBOR plus 300 bps (currently 5.1%) • Maturity 2021 • No financial covenants • $150MM accordion option

• Interest Rate Swaps • Providing interest protection in a rising

rate environment • $220MM fixed at 4.8575%(1) through

early 2020 • $200MM fixed at 6.19%(1) 2020

through 2025

Capital Structure

• $100MM ABL Credit Facility • LIBOR plus 150-200 bps • Maturity 2022

$23

$18 $21 $20

0.00

0.50

1.00

1.50

2.00

0

5

10

15

20

25

30

2014 2015 2016 2017

Interest Expense vs. Federal Funds Rate Millions ($) Fed Funds Rate %

FINANCIAL OVERVIEW

(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.

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Thank you for your interest in Libbey

• Our next communication will be Q4 earnings in late February

• This presentation is available on our website

Appendix

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2018 Third-quarter Highlights

New products drove approximately $15.9MM of sales, or 8.3% of net sales

E-commerce sales represented approximately 12.0% of total U.S. & Canada retail sales; an increase of 46% versus prior year

U.S. & Canada foodservice continues to outperform the market in 2018; 4.7% sales growth versus declining traffic of (1.3%)1 during the quarter, attributed to high level of customer service

Latin America and EMEA improved profitability for fifth consecutive quarter

Sales up 13% in our Other segment (Asia Pacific region) where segment EBIT margin improved from (25%) to 13%

(1) Source: Black Box

(2) See our third-quarter 2018 press release filed on form 8-K on November 6, 2018, for reconciliations of Adjusted EBITDA to the most directly

comparable U.S. GAAP measure.

($ in millions)

Third Quarter

2018

Net Sales Y-O-Y Change Y-O-Y Constant Currency

$190.8 1.8 % 2.9%

Adjusted EBITDA2

Y-O-Y Change Y-O-Y Constant Currency

$16.1 (19.6 %)

(5.0%)

THIRD QUARTER RESULTS

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Key Financial Data Third Quarter ‘18 & ‘17


(1) See the Appendix for reconciliations and definitions of non-GAAP measures.

Unaudited

$ in millions, except per share data '18 '17 VPY '18 '17 VPY

Net sales 190.8$ 187.3$ 3.5$ 586.2$ 557.8$ 28.4$

Gross profit 37.2$ 38.0$ (0.8)$ 117.4$ 110.6$ 6.8$

Gross profit margin 19.5% 20.3% (0.8%) 20.0% 19.8% 0.2%

Selling, general & administrative expenses 33.3$ 29.5$ 3.8$ 98.4$ 96.9$ 1.5$

Net income (loss) (5.0)$ (78.8)$ 73.8$ (3.9)$ (86.2)$ 82.3$

Net income (loss) margin (2.6%) (42.1%) 39.5% (0.7%) (15.5%) 14.8%

Diluted EPS (0.22)$ (3.57)$ 3.35$ (0.18)$ (3.92)$ 3.74$

Adjusted EBITDA (1)

(non-GAAP) 16.1$ 20.0$ (3.9)$ 54.8$ 46.4$ 8.4$

Adjusted EBITDA margin(1)

(non-GAAP) 8.4% 10.7% (2.3%) 9.3% 8.3% 1.0%

Unaudited

$ in millions, except ratio

September

30, 2018

December

31, 2017

September

30, 2017

Trade Working Capital (1)

(non-GAAP) 228.7$ 199.5$ 215.6$

Debt, net of cash to Adjusted EBITDA ratio (1)

(non-GAAP) 5.0 x 5.1 x 5.5 x

Third Quarter Year-to-Date

Q3 2018 Net Sales of $190.8 vs. $187.3 in Q3 2017

33

$ in millions U.S. & Canada

Other EMEA

Latin America

$6.0 $6.8 $0.8

$0

$2

$4

$6

$8

$10

Q3 '17 Net Sales Sales Increase Q3 '18 Net Sales

$33.7 $33.3 ( $0.5) $0.4 ( $0.3)

$20

$25

$30

$35

$40

Q3 '17 Net

Sales

Retail Foodservice B2B Q3 '18 Net

Sales

$35.3 $35.4 $1.1 ( $0.6) ( $0.4)

$30

$35

$40

Q3 '17 Net

Sales


Sales

$112.3

$115.3

$0.0

$2.6 $0.4

$110

$112

$114

$116

Q3 '17 Net

Sales


Sales


YTD 2018 Net Sales of $586.2 vs. $557.8 in YTD 2017

34

$ in millions U.S. & Canada

Other EMEA

Latin America

$21.7 $20.8

(0.9)

$15

$20

$25

Q3 '17 YTD Net Sales Sales Decline Q3 '18 YTD Net Sales

$90.1

$103.7

$4.9

$3.6

$5.1

$85

$90

$95

$100

$105

Q3 '17 YTD

Net Sales

Retail Foodservice B2B Q3 '18 YTD

Net Sales

$102.6

$110.0

$4.0 ( $0.1)

$3.5

$100

$105

$110

$115

Q3 '17 YTD

Net Sales


Net Sales

$343.5

$351.7

$0.7

$4.0

$3.5

$340

$345

$350

$355

$360

Q3 '17 YTD

Net Sales


Net Sales


$46.4

$54.8

$15.0 $2.2 ($10.1)

($1.7) $3.0

$35.0

$45.0

$55.0

$65.0

Prior Year Impact of Sales/ FCM Currency Operating Activity Benefits Other Adjusted EBITDA

Q3 '18 YTD Adjusted EBITDA vs. Prior Year $MM

$20.0

$16.1

$4.5 ($2.9)

($0.1)

($4.3)

($1.1)

10.0

15.0

20.0

25.0

30.0

Prior Year Impact of Sales/ FCM Currency Operating Activity Benefits Other Adjusted EBITDA

Q3 '18 QTD Adjusted EBITDA vs. Prior Year $MM

Adjusted EBITDA(1) Walk

35

$ in millions

Store and Ship ($2.4MM)

Downtime ($1.4MM)

Reduced E-commerce

spend $4.4MM

Downtime ($3.9MM)

Store and Ship ($3.5MM)


(1) - See the Appendix for a reconciliation of Adjusted EBITDA to net income (loss).

Definition and reconciliation of non-GAAP measures

Q3 2018 Q3 2017 FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010

Net income (loss) (U.S. GAAP) (5.0)$ (78.8)$ (93.4)$ 10.1$ 66.3$ 5.0$ 28.5$ 7.0$ 23.6$ 70.1$

Add:

Interest expense 5.7$ 5.1$ 20.4$ 20.9$ 18.5$ 22.9$ 32.0$ 37.7$ 43.4$ 45.2$

Provision (benefit) for income taxes 1.8 2.7 15.8 17.7 (38.2) 8.5 13.2 5.7 1.7 11.6

Depreciation and amortization 11.3 11.2 45.5 48.5 42.7 40.4 44.0 41.5 42.2 41.1

Add: Special items before interest and taxes:

Restructuring and facility closure charges - - - - - 1.0 6.5 - (0.1) 2.5

Severance - - - - - - - 5.1 1.1 -

Pension curtailment and settlement charges - - - 0.2 21.7 0.8 2.3 4.3 - -

Loss (gain) on redemption of debt - - - - - 47.2 2.5 31.1 2.8 (58.3)

Abandoned property - - - - - - 1.8 - 2.7 -

Gain on sale of assets - - - - - - - - (6.8) -

Goodwill and intangible impairment charges - 79.7 79.7 - - - - - - -

Product portfolio optimization - - - 5.7 - - - - - -

Other (1)

2.3 - 2.5 8.5 5.3 (3.5) 5.1 - 2.5 2.8

Less: Accelerated depreciation expense included in special items

and also in depreciation and amortization above - - - - - - (1.5) - - -

Adjusted EBITDA (non-GAAP) 16.1$ 20.0$ 70.6$ 111.6$ 116.3$ 122.1$ 134.4$ 132.4$ 113.1$ 115.0$ 119.2$

Net sales 190.8$ 187.3$ 781.8$ 793.4$ 822.3$ 852.5$ 818.8$ 825.3$ 817.1$ 799.8$

Net income (loss) margin (U.S. GAAP) -2.6% -42.1% (11.9%) 1.3% 8.1% 0.6% 3.5% 0.8% 2.9% 8.8%

Adjusted EBITDA Margin (non-GAAP) 8.4% 10.7% 9.0% 14.1% 14.1% 14.3% 16.4% 16.0% 13.8% 14.4%

Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) and Adjusted EBITDA Margin

(Dollars in millions)

(1) Q3 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. 2013 includes $4.4 million of furnace malfunction charges and $0.7 million

for executive retirement charges. 2011 includes $2.7 million for CEO transition expenses, $(1.0) million for an equipment credit and an $0.8 million write-down of unutilized fixed assets. 2010 includes $2.7

million of fixed asset write-down charges, $1.0 million in expenses related to a secondary stock offering and a $(0.9) million insurance claim recovery. 2008 includes a $4.5 million fixed asset write-down

Adjusted EBITDA excludes special items that Libbey believes are not reflective of our core operating performance.


LTM Q3

2018

LTM Q3

2017 FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010

Adjusted EBITDA (1)

(non-GAAP) 78.9$ 69.9$ 70.6$ 111.6$ 116.3$ 122.1$ 134.4$ 132.4$ 113.1$ 115.0$

Debt reported on balance sheet(2)

(U.S. GAAP) 410.7$ 398.9$ 384.4$ 407.8$ 431.0$ 437.9$ 402.4$ 454.2$ 390.1$ 436.6$

Plus: Unamortized discount, finance fees and warrants (2)

2.6 3.6 3.3 4.5 5.8 7.0 9.5 12.3 11.6 16.9

Less: Carrying value in excess of principal on PIK notes - - - - - - - - - -

Less: Carrying value adjustment on debt related to the Interest

Rate Agreement - - - - - - (1.3) 0.4 4.1 3.3

Gross Debt 413.3 402.5 387.7 412.3 436.9 444.9 413.2 466.1 397.6 450.2

Less: Cash and cash equivalents 19.1 21.6 24.7 61.0 49.0 60.0 42.2 67.2 58.3 76.3

Debt net of cash 394.2$ 380.9$ 363.0$ 351.3$ 387.9$ 384.9$ 371.0$ 398.9$ 339.3$ 373.9$

Debt net of cash to Adjusted EBITDA Ratio (non-GAAP) 5.0 5.5 5.1 3.1 3.3 3.2 2.8 3.0 3.0 3.3

Computation of Adjusted EBITDA to Debt net of cash to Adjusted EBITDA Ratio and Adjusted EBITDA

(Dollars in millions)

(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.

FY 2017

Reported income from operations (53.7)$

Add: Adjustments

Goodwill Impairment 79.7$

Reorganization/ Restructuring Charges 2.5

Adjusted income from operations 28.5

Factor to apply taxes 65%

After tax adjusted income from operations 18.5$

Reported property, plant and equipment, net 265.7$

Accounts receivable 90.0

Inventories 187.9

Less: Accounts payable 78.3

Reported Trade Working Capital 199.5$

Total Invested Capital 465.2$

ROIC 4.0%

Calculation of Return on Invested Capital (ROIC)

(dollars in millions)


Definitions – Other Non-GAAP Measures

Trade Working Capital is defined as net accounts receivable plus net inventory less accounts payable.

Return On Invested Capital (ROIC) is defined as after tax income from operations (using a 35% tax rate), adjusted for special items, over ending Trade Working Capital plus net book value of property, plant and equipment

Constant currency references regarding net sales reflect a simple mathematical translation of local currency results using the comparable prior period’s currency conversion rate. Constant currency references regarding Segment EBIT, Adjusted EBITDA and Adjusted EBITDA Margin comprise a simple mathematical translation of local 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 denominated in a currency other than the functional currency. Our currency market risks include currency fluctuations relative to the U.S. dollar, Canadian dollar, Mexican peso, euro and RMB. Free Cash Flow is defined as net cash provided by operating activities plus net cash provided by (used in) investing activities.

Discla imer

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; 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

of uncertainty and risk due to a variety of factors.

libbey inc. investor presentation...2019/01/09 · 3 ma terial provided in this presentation...

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