Libbey Inc. is the second largest glass tableware manufacturer in the world and number one in the Americas. It has three key business channels: foodservice, retail, and business-to-business. Libbey's financial performance has improved in recent years through cost reductions and debt paydown, lowering its leverage ratio. Under its new "Own the Moment" strategy, Libbey aims to grow its Americas segment, expand margins through efficiencies, and return cash to shareholders through disciplined capital management.
3. Material presented at this meeting 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 significant cost
increases.
Please refer to the Company’s Form 10-K for
fiscal year-end December 31, 2014, filed on
March 13, 2015, for further information.
Cautionary statement
2
5. 1. Second largest tableware manufacturer in the world, #1 in the Western Hemisphere
2. #1 U.S. Foodservice business drives significant recurring revenue and profitability;
#1 North American retail position drives consumer recognition, utilization and
incremental profitability
3. Established global presence with significant growth potential
4. Cost structure optimization combined with manufacturing innovation provide
additional barriers to entry
5. Strong cash flow, liquidity and credit profile
6. Balanced approach to capital allocation
Investment highlights
4
6. Libbey at a glance
Employs approximately 6,500
associates across the globe
Libbey sells more than
1,000,000,000 glasses annually
Second largest glass tableware
manufacturer in the world!
# 1 in the Americas
In 2014, Libbey’s net sales totaled
$852.5 million. Sells into 3
channels: FS, Retail and B2B
5
Our customers represent the
world’s largest foodservice
distributors and the world’s most
recognized retail brands
7. Libbey competes in four product categories
6
Category Products Manufacturing
Glass
Tableware
• Tumblers, stemware, mugs, bowls,
floral, salt shakers, shot glasses,
canisters, candleholders
In-house
Other
Glass
Products
• Bakeware, handmade tableware,
blender jars, mixing bowls, floral,
candle, and washing machine windows
In-house
Ceramic
Dinnerware
• Plates, bowls, platters, cups, saucers,
and other tableware accessories
Sourced
Metalware
• Knives, forks, spoons, serving utensils,
serving trays, pitchers, other metal
tableware accessories
Sourced
~90%
of
sales
~10%
of
sales
8. Libbey has a broad customer base spanning
three key channels
• A network of over 500 of the world’s
finest distributors who ultimately sell
to hotels, restaurants, bars, etc.
• #1 supplier of glass tableware, #2
supplier of dinnerware/flatware in the
U.S. and Canada
• Offered entire tabletop since 1997
• 90% of sales are replacements,
driving predictable revenue stream
• Beverages are the most profitable
sales item for a restaurant
• Customers include marketers who
brand Libbey glassware with
company logos and resell to
breweries, distilleries, soft drink
companies, craft industries and food
packing companies
• Products include candle and floral
applications, blender jars, mixing
bowls, and washing machine glass
• Profitable channel. Volume provides
factory utilization
Foodservice Retail
Business-to-Business
(B2B)
• Primary customers include leading
mass merchants as well as
specialty, grocery, value-oriented
and e-tail stores
• The leading supplier of casual glass
beverageware in North America
• Strong brand recognition
• Important driver of factory utilization
7
No single customer accounts for 10% or more of sales
9. Industry-leading and customer logistics-friendly
footprint
8
West Chicago, IL
Toledo,
OH
Shreveport,
LA
Monterrey,
Mexico
Laredo, TX
Libbey Manufacturing & Warehousing / Distribution
Marinha
Grande,
Portugal
Leerdam,
Netherlands Langfang,
China
Libbey Warehousing / Distribution
Million Total Sq. Ft.
Libbey Warehousing /
Distribution Centers7 8Libbey Manufacturing
Facilities6
10. Libbey is a company with a rich history …
9
Aug 2011:
Stephanie
Streeter
becomes CEO
Jun 2006: Obtains
remaining 51%
stake in Crisa,
expanding presence
to Monterrey,
Mexico
Jan 2005: Acquires
Crisal, a glassware
manufacturer based
in Portugal
1800s 1990
Jul 2013: Celebrates
125th Anniversary in
Toledo
2002 2006 20112008 20122000
Dec 2002: Acquires Royal
Leerdam, expanding
glassware operations to
Europe
May 2012:
Refinancing
amended $100MM
ABL facility
and issuance of
$450MM 6.875%
Senior Secured
Notes
Apr 2007: Opens
Langfang, China
facility
Aug 1997:
Acquires World
Tableware and
49% of Crisa
2014
Apr 2014:
Refinancing,
including amended
$100MM ABL
Facility and new
$440MM Term
Loan B senior
secured credit
facility
1818: Libbey
founded as New
England Glass
Company in East
Cambridge, MA
s
Jun 1993:
Libbey becomes
a public company
1892:
The company
changes its name
to The Libbey
Glass Company
Oct 1995:
Acquires
Syracuse China
Aug 2011: Bill
Foley becomes
Chairman of the
Board
2015
Jan 2015:
Announce Own the
Moment strategy.
Re-initiate dividend
and share
repurchases
11. …Libbey is entering a new phase of its development
10
Recovery and
reinforcement
• Focus on cost reduction
and de-leveraging
Took substantial cost
containment measures
Reduced leverage to
~3x 2014 adjusted
EBITDA
• Continued strengthening
and building business (by
reinvesting 2/3 of cash flow)
Mexican production
best-in-class for US
market
Entered China for long-
term opportunities
Ambitious growth
coupled with great
recession led to crisis
• Acquisition-focused growth
(on average +10% annually
from 2001 to 2008)
• Substantial increases in
leverage (up to unsustainably
high levels of 7x adjusted
EBITDA)
Winning from position
of strength
• Libbey clearly positioned as
market leader with strong
profitability and cash flows
• Focus on creating strong and
sustainable value for our
shareholders. Three
strategic levers:
Grow and bolster
Americas segment
Margin expansion
through price / mix and
operating efficiencies
Disciplined capital
management and return
cash to shareholders
2001 - 2009
2009 - 2014
2015 - 2020
12. Committed to aligning our business and financial
levers to drive strong, sustainable Total Shareholder
Return
11
1
2
3
Objective:
Deliver
sustained top-
quartile TSR for
Libbey’s
shareholders
Leverage positions of strength
to drive above market growth
and expand margins
Make strategic and
opportunistic investments to
bolster core positions
Commit to disciplined capital
management and significant
capital return to investors
Business
Strategy
Financial
Strategy
13. 1212
Grow & Bolster Americas
• Grow around core in
Foodservice
• Win in key accounts in Retail
& B2B
• Strengthen/broaden offerings
• Expand to adjacencies
• Redefine pricing/promotions
Maximize Returns in Asia
Pacific & EMEA
• Targeted investments to drive
value and differentiation
• Drive cost efficiency
• Expand presence where
under-served
• Build presence in growth
channels
Establish Foundation of
Excellence
• Supply Chain
• Talent & culture
• Commercial capabilities
• Information Technology
• Financial structure/capital
deployment
12
14. Long-term financial goals established
13
Financial Metric Goal 2018 E
Revenue growth 4% to 6% $1B +
Adjusted EBITDA margins 15% to 18% 17% to 18%
Net debt to adjusted EBITDA 2.5 to 3.0 X 2.5 to 3.0 X
ROIC Maintain 11% to 13% 12% to 14%
TSR Top quartile Top quartile
Despite recent industry choppiness, we remain committed to Own The Moment Strategy
15. Strategy focused on TSR levers
Sales
Growth
Free Cash
Flow Generation
TSR
Valuation
Multiple
TSR drivers
• Segment and geographic expansion
• Adjacent categories
• New products and innovation
• Price and promotional structures
• Working capital optimization
• Capital expenditure discipline
• Return capital to shareholders
Management levers
Margin
Expansion
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• Volume leverage
• Reduce total delivered cost
• Supply chain efficiencies
• Reduce complexity
16. 1. Second largest tableware manufacturer in the world, #1 in the Western Hemisphere
2. #1 U.S. Foodservice business drives significant recurring revenue and profitability;
#1 North American retail position drives consumer recognition, utilization and
incremental profitability
3. Established global presence with significant growth potential
4. Cost structure optimization combined with manufacturing innovation provide
additional barriers to entry
5. Strong cash flow, liquidity and credit profile
6. Balanced approach to capital allocation
Investment highlights
15
17. 10% global market share(1)
Market leadership in U.S. and Mexico
• ~58% share of U.S. foodservice glass beverageware market (1)
• ~53% share of Mexican glass tableware market (1)
• #1 casual glass beverageware position in the U.S. retail channel (2)
Leading position as producer of casual glass beverageware in the EU
Strong shelf position with major retailers:
Recognized for excellence by leading foodservice distributors:
#1 producer of casual glass beverageware in the
Western Hemisphere
(1)
(2)
Management estimate
NPD Group Retail Tracking Service
1
16
18. Strong brand portfolio1
17
→ Extensive product line ranging from tumblers to fine stemware
→ Leading producer of glass tableware in Mexico and Latin America
→ Provides an expanded presence in Europe from tumblers to stemware
→ Among the world leaders in producing and selling glass stemware
→ “Class of glass”; high performance for every occasion
→ Fine Bavarian crystal; crystal glassware specialist
→ Broad selection of unique dinnerware, flatware, hollowware
→ Broad range of dinnerware with distinctive designs and durable qualities
→ One of the world’s leading providers of high-end porcelain for foodservice
→ One of world’s foremost marketers of fine tableware, including flatware,
stemware and dinnerware
90% of
2014
Sales
10% of
2014
Sales
Manufactured
Sourced
19. #1 U.S. & Canada Foodservice
• 90% of Foodservice glass sales are replacements and drive a predictable revenue
stream
• Strong distribution network and in-house salesforce are a competitive advantage
• Depth and breadth of product line maximizes addressable market and highlights
innovation capabilities
• High switching costs, as food service establishments rarely change after initial
investment
• Steady pace of innovation and critical profitability of beverageware creates lower
price sensitivity; 41 of 45 years with a price increase
• Sourced dinnerware and flatware provides additional growth opportunity at very
attractive ROIC
• Additional growth opportunities outside full service restaurants and bars
#1 in Western Hemisphere and
#1 in North America2
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20. #1 North America Retail Position
• #1 Retail brand by wide margin in U.S., Canada and Mexico
• Ability to provide products across multiple price points leverages foodservice
and B2B costs and capabilities
• Important driver of factory utilization
• Enhances trend/product life and innovation platform
• Important for brand recognition and brand loyalty – can be leveraged further
• Exclusive distributor for Spiegelau glassware in retail channels in the U.S.
and Canada
2
19
#1 in Western Hemisphere and
#1 in North America
22. Established global presence with significant
growth potential3
Americas
69%
Other
4%US Sourcing
10%
EMEA
17%
2014 Sales by Segment
2014 Adj. EBITDA by Segment
Americas
79%
EMEA
10%
US Sourcing
5%
Other
6%
21
Grow and bolster Americas
• Grow around core foodservice business
• Expand in additional categories and market
segments in retail and B2B
• Strengthen and broaden product offerings
Maximize returns in Asia Pacific and EMEA
• Complements Americas’ leadership position
• EMEA: reconfigure the business through targeted
investments
• Asia Pacific: selective growth with managed
investment
Expand footprint in underserved and emerging market
segments
23. Libbey’s Perfect Collection™:
the perfect glass for celebrating…everything3
22
The perfect drink…the perfect group of friends…the perfect moment.
Shapes designed to enhance the flavor and experience.
• The right glass for the right occasion
• Captures current trends
• Packaging entices and educates
24. Libbey’s finest glassware:
“elevates the everyday into art”
A laser cut
rim ensures
a fine and
even edge
A pulled stem
creates a strong
and beautifully
seamless
transition between
bowl and stem
Reinforced flat foot
design provides
extra stability and
chip resistance
The exceptional
brightness and
clarity of the glass
enhances the
presentation of the
wine
Unique Libbey
ClearFire®
formula creates
brilliance &
strength
3
23
Retail Foodservice
25. Full line of stemware, tumblers and specialty
drinkware for retail and foodservice channels3
24
A reinvention of a classic shape
Subtle design
Harmony and balance
Gentle contours and thick sham
Modern luxury
Extraordinary angles
Free-flowing movement
Dramatic height
26. Introducing: the new Chemistry Bar for foodservice
and retail
25
3 “Offers inventive ways to create new drinks that command attention”
Mixologists formulate recipes for new cocktails
Trendy mixologist meets science geek
27. Additions of Schönwald and Reed & Barton combine with
Spiegelau and Nachtmann to create the Artistry Collection™
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3
“A complete premium tabletop offering in food service enabling greater
access to high end restaurants and travel and tourism venues”
28. Executed multiple cost reduction initiatives as part of Libbey 2015
• Workforce optimization
• Productivity improvements
• Realignment of capacity
Own the Moment continues focus on operating efficiencies
• Reduce manufacturing complexity
• End-to-end supply chain management
• Optimize manufacturing output through improved sales and operations
planning
Innovation and world class manufacturing technologies create
competitive advantage
• R&D innovation/disruptive technology – Perfect Signature and Masters
Reserve fine glassware
• Over 150 new glassware shapes and over 350 new flatware/tableware
items in 2014 alone
• Leading proprietary furnace, manufacturing and mold technologies
• Leveraging external relationships and partnerships to gain further
advantage
Cost optimization combined with manufacturing
innovation provides additional barriers to entry4
27
29. Position of strength and business model drive
predictable revenue stream and cash flow
Note: (A) Operating cash flow adjusted for the supplemental pension contribution in 2012, call premiums on senior notes, and debt
issuance costs.
28
Net Sales
($ MM)
Historical Cumulative Adj
Operating Cash flow
2008 – 2014(A)
($ MM)
810
749
800
817
825
819
852
2008 2009 2010 2011 2012 2013 2014 (1)
105
176
233
358
432
558
2008 2009 2010 2011 2012 2013 2014
5
30. 6.4
4.3
3.3 3.0 3.0 2.7 3.1
2008 2009 2010 2011 2012 2013 2014
1.2 1.4
2.5 2.6
3.5
4.2
5.4
2008 2009 2010 2011 2012 2013 2014
Significant deleveraging despite investments to strengthen the
business
• Fully funded supplemental U.S. pension in 2012 lowered
annual cash contributions ~$15MM
• Capex investments similar to D&A on average; now able to
invest in growth technology for future success
Meaningful liquidity
• $83.7MM available under ABL at 9/30/15
• $30.1MM cash on balance sheet at 9/30/15
Significant reduction in interest rates since 2011
• Annual interest expense reduced ~ 50% ($20MM)
Capital structure
• Senior secured credit facility $440MM; maturity 2021
LIBOR plus 300 bps (currently 3.75%)
No financial covenants
$150MM accordion option
• $100MM ABL credit facility
LIBOR plus 150-200 bps; maturity 2019
Capital structure and liquidity remains strong5
29
Adj. EBITDA / Interest Expense
Net Debt / Adj. EBITDA
31. Balanced approach to capital allocation6
30
Invest in
the
business
Maintain
financial
strength
and
flexibility
Return
capital to
investors
• Support/accelerate organic growth
• New technologies & manufacturing capabilities
• Acquisitions aligned with strategy
• Other strategic initiatives
• Re-initiated quarterly dividend
$0.11 per share, highest in company history
1.5% yield on day of initiation
• Share repurchases through 10b5-1
Authorization increased to 1.5M shares in January 2015
Repurchased over 447K shares as of September 30, 2015
Expect to return ~50% of free cash flow to shareholders
over next three years
• Strong & flexible balance sheet
• Long-term net debt to Adjusted EBITDA target of 2.5x –
3.0x, with ability to flex up or down
32. $216.0
$201.8
$214.4
$-
$50
$100
$150
$200
$250
3rd Quarter 2014 3rd Quarter 2015
Millions
Net Sales
As reported Currency impact vs PY
Q3 YoY comparison: preserved adjusted EBITDA
margins in a challenging environment
31
Q3 Highlights:
• Foodservice channel remains
strong with 8.4% constant
currency growth
• Adjusted EBITDA margin driven
by favorable price / mix and
lower input costs
$31.7
$30.9
$35.1
$-
$5
$10
$15
$20
$25
$30
$35
$40
3rd Quarter 2014 3rd Quarter 2015
Millions
Adjusted EBITDA
As reported Currency impact vs PY
14.7%
15.3%
17.4%
0%
5%
10%
15%
20%
3rd Quarter 2014 3rd Quarter 2015
Adjusted EBITDA Margin
As Reported Currency impact vs PY
33. $621.1
$603.1
$637.9
$-
$100
$200
$300
$400
$500
$600
$700
Nine Months Ended 2014 Nine Months Ended 2015
Millions
Net Sales
As reported Currency impact vs PY
September YTD YoY comparison: net sales growth of
2.7% adjusted for currency
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2.7% Constant Currency Growth
Full Year Outlook:
• Net sales growth of approximately
1% on a constant currency basis
• Adjusted EBITDA margins of
approximately 14.0%
$92.7
$85.1
$95.1
$-
$20
$40
$60
$80
$100
Nine Months Ended 2014 Nine Months Ended 2015
Millions
Adjusted EBITDA
As reported Currency impact vs PY
14.9%
14.1%
15.8%
0%
5%
10%
15%
20%
Nine Months Ended 2014 Nine Months Ended 2015
Adjusted EBITDA Margin
As Reported Currency impact vs PY
34. Libbey fundamentals remain strong despite
currency headwinds and lower traffic
33
WHAT’S WORKING IMPROVEMENT AREAS
• Growing share in important foodservice
channel: +8.2% year to date constant currency
• Sourcing business achieved 15 consecutive
quarters of growth
• Preserved margins in challenging Q3 market
environment: price mix and lower input costs
• Positive response from customers on new
products
• Strong liquidity: $114 MM availability (cash +
ABL)
• Returning greater than 50% FCF to shareholders
• Overcome shortfalls in selected retail channel
accounts
• Improve production efficiencies to further
protect and expand margin
• Reduce inventory with focus on sell-through,
product transitions and downtime
• Manage volume / margin trade-off in a more
competitive environment
35. Libbey: creating shareholder value now and
in the future
34
• Leading market positions and strong brand portfolio
• Superior production footprint and execution capabilities
• Strategies in place to drive growth
• Strong cash flow, liquidity and credit profile
• Balanced capital allocation: flexibility to invest in the business and
return capital to shareholders
Libbey TSR: achieving top quartile performance
Libbey S&P 1500 Peer*
1-Year 24% -2% 9%
3-Year 27% 10% 15%
5-Year 20% 11% 13%
*Peers include: Anhui Deli, Ball Corporation, Blyth, Inc., Carlisle Companies, Fujan Guanfu MHW, Helen of Troy, Ishizuka
Glass, Jarden, Lancaster Colony, Lifetime Brands, Mastrad, Nadir Figueiredo, Newell Rubbermaid, Ocean Glass, Owens-
Illinois, Sisecam, Srithai Superware, Tupperware, Villeroy & Boch, Vitro, and Zhejiang Supor
Note: Data calculated as of September 30, 2015.
36. Market Firm Net Sales 2014A Rev. Split '15E Margin FV / EBITDA P / E Net Debt /
Company Cap Value 2014A 2015E N.A. Europe ROW EBITDA EBIT 2015E 2016E 2015E 2016E LTM EBITDA
Newell Rubbermaid Inc. $11,850 $14,463 $5,727 $5,914 74% 12% 14% 17.3% 14.4% 14.1x 13.0x 20.3x 18.4x 2.8x
Jarden Corporation 10,643 15,855 8,285 8,670 61 -- 39 14.4 11.9 12.7 10.2 17.7 15.2 3.9
Tupperware Brands Corporation 2,922 3,718 2,606 2,307 25 28 47 17.4 15.0 9.3 8.8 13.1 12.4 2.0
Helen of Troy Limited 2,906 3,458 1,402 1,516 84 13 4 14.6 11.4 15.6 14.7 18.1 16.8 2.0
Lifetime Brands, Inc. 198 327 586 598 74 -- 26 -- -- -- -- 14.5 10.2 4.2
Mean $5,704 $7,564 $3,721 $3,801 64% 17% 26% 15.9% 13.2% 12.9x 11.7x 16.7x 14.6x 3.0x
Median 2,922 3,718 2,606 2,307 74 13 26 16.0 13.2 13.4 11.6 17.7 15.2 2.8
Libbey Inc. $566 $1,005 $852 $818 79% 17% 4% 13.9% 8.7% 8.8x 8.0x 11.9x 12.4x 3.6x
Libbey still trading at a discount to peers
35
Note: Forward metrics based on consensus Wall Street estimates (FactSet). Market data as of November 6, 2015. Balance sheet data as of Q3 2015.
(1) Incorporates 10mm shares of common stock issued as a part of Jarden’s October 15, 2015 public offering to fund a portion of the Jostens acquisition announced October 14, 2015.
(2) Includes $500mm of debt raised in October 2015 to fund a portion of the Jostens acquisition.
(3) LTM EBITDA pro forma for ~$200mm of Jostens EBITDA.
(1)(2) (2)(3)
($ in millions)
37. Additional Information
NYSE MKT: LBY
Alpha IR Group
Chris Hodges & Sam Gibbons
312-445-2870
email: LBY@alpha-ir.com
visit our website: www.libbey.com
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