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Management pres may 2016

1. Libbey Inc. is a global leader in glass tableware, with the #1 position in the US and Western Hemisphere foodservice and retail channels. It has strong brand recognition and market share. 2. Libbey's "Own the Moment" strategy focuses on growth through innovation, improving customer focus, and business simplification. 3. Libbey has key advantages including a profitable and recurring US foodservice business, manufacturing and cost efficiencies, and a strong balance sheet and cash flow.

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May 2016
Management 1 Sherry Buck Vice President, Chief Financial Officer Bill Foley Chairman and Chief Executive Officer Kim Hunter Treasurer and Vice President, Investor Relations
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, 2015, filed on February 29, 2016, for further information. Cautionary statement 2
Agenda 3 • Company Overview 4 - 9 • Own the Moment Strategy 10 - 11 • Investment Highlights 12 - 26 • Recent Financial Performance 27 - 30 • Appendices Timeline 32 Definition and Reconciliation of Non-GAAP Measures 33 - 34
Agenda 4 • Company Overview • Own the Moment Strategy • Investment Highlights • Recent Financial Performance • Appendices Timeline Definition and Reconciliation of Non-GAAP 33 - 34 Measures 4 - 9 10 - 11 12 - 26 27 - 30 32
1. Global glass tableware leader: #2 in the world, #1 in the Western Hemisphere Favorite U.S. glassware brand and strongest unaided brand recognition 2. #1 U.S. Foodservice business drives significant recurring revenue and profitability #1 North American retail position drives consumer recognition and capacity utilization 3. Established global presence with significant growth potential 4. Cost structure optimization combined with manufacturing innovation creates significant advantage 5. Strong cash flow, liquidity and credit profile 6. Balanced approach to capital allocation Investment highlights 5
Libbey at a glance A global tableware leader selling manufactured and sourced glass, ceramic and metal tableware. #2 global glassware position, #1 in the Americas! 6 Customers are the world’s largest foodservice distributors and most recognized retail names $822.3 million of net sales in 2015 sold to Foodservice, Retail and B2B channels globally Libbey sells more than 1,000,000,000 glasses annually Products central to life and gift giving that help celebrate important moments at home, in restaurants and on vacation NYSE MKT: LBY
Libbey competes in four product categories 7 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, and other metal tableware accessories Sourced
Libbey goes to market in three key channels • Leading network of 500+ of the world’s finest U.S. distributors who sell to restaurants, bars, hotels and travel and tourism venues • #1 glass tableware supplier and #2 dinnerware and flatware supplier in the U.S. and Canada • 90% of sales are replacements, driving predictable revenue stream; beverages most profitable item for a restaurant • Customers include marketers branding Libbey glassware with company logos and reselling to breweries, distilleries, soft drink companies, craft industries and food packing companies • Companies using glass products for candle and floral applications, blender jars, mixing bowls and washing machine glass Foodservice Retail Business-to- Business (B2B) • Customers include leading mass merchants, department stores, upscale retailers, grocers and internet retailers • North America’s #1 retail supplier of casual glass beverageware and an important driver of profitable factory utilization 8 No single customer accounts for 10% or more of sales
Established industry-leading global footprint 9 West Chicago, IL Toledo, OH Shreveport, LA Monterrey, Mexico Laredo, TX Libbey Manufacturing and Warehousing / Distribution Marinha Grande, Portugal Leerdam, Netherlands Langfang, China Libbey Warehousing / Distribution MillionTotal Sq. Ft. Libbey Warehousing / Distribution Centers7 8Libbey Manufacturing Facilities6 Libbey Headquarters
Libbey is well positioned for a next phase of success 10 Recovery and reinforcement • Cost reduction and de- leveraging Substantial cost containment measures Leverage reduced to ~3x 2014 adjusted EBITDA • Continued investment to strengthen and build the business Added low cost Mexican production for North America markets Entered China for long- term opportunity Acquisition leverage + Great Recession = Stress • Acquisition-focused growth Averaging +10% annually from 2001 to 2008 • Great Recession financial stress Leverage reached unsustainably high >6x adjusted EBITDA Winning from position of strength • Libbey clearly positioned as market leader with strong profitability and cash flows • Focus on creating sustainable value for our shareholders • Three strategic levers: Grow and bolster U.S. and Canada and Latin America segments Expand margins through product innovation, price / mix, operating efficiencies, distribution expansion and business simplification Maintain disciplined capital management and return free cash flow to shareholders 2001 - 2006 2006 - 2014 2015 - 2020
11 Grow & Bolster U.S. and Canada, Latin America • Grow around core in Foodservice • Win in key accounts in Retail & B2B • Strengthen/broaden new product 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
• Drive organic growth • Develop differentiated product offerings leveraging Enhanced market insight and innovation capabilities Emerging trends New technology and sourcing resources • Improve margins • Expand into adjacent categories 12 • Improve customer focus and responsiveness Customer feedback and consistent engagement Adapting operating practices to meet customer needs • Remove non-value-added complexity Streamline supply chain network and product portfolio Improve product life-cycle management Support continuous improvement and cost reduction Match manufacturing platform to emerging trends and market conditions Own the Moment strategy: three key focus areas Growth through Innovation Customer Focus Business Simplification
1. Global glass tableware leader: #2 in the world; #1 in the Western Hemisphere Favorite U.S. glassware brand with strongest unaided brand recognition 2. #1 U.S. Foodservice business drives significant recurring revenue and profitability #1 North American retail position drives consumer recognition and capacity utilization 3. Established global presence with significant growth potential 4. Cost structure optimization combined with manufacturing innovation creates significant advantage 5. Strong cash flow, liquidity and credit profile 6. Balanced approach to capital allocation Investment highlights 13
10% global market share(1) Market leadership in U.S. and Mexico • ~60% 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) • Significant supplier in B2B segment 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 and management estimates 1 14
Favorite U.S. glassware brand and strongest unaided brand recognition 15 → The favorite U.S. Glassware Brand and strongest unaided brand recognition;(1) 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 with products ranging 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 Manufactured Sourced (1) According to survey conducted by NPD 1
#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 provide a competitive advantage • Depth and breadth of product line maximizes addressable market and highlights innovation capabilities • Installed base and high switching costs in foodservice; establishments rarely change after initial investment • Steady pace of innovation and critical profitability of beverageware lead to lower price sensitivity; U.S. and Canada foodservice business has achieved price increases in 42 of last 46 years • Sourced dinnerware and flatware provide additional growth opportunities at very attractive ROIC • Additional growth opportunities outside full-service restaurants and bars #1 in Western Hemisphere and #1 in North America2 16
#1 North America Retail Position • #1 Retail brands in U.S., Canada and Mexico(1) • 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 channel in the U.S. and Canada 2 17 #1 in Western Hemisphere and #1 in North America (1) - Casual glass beverageware category, NPD and management estimates
Established global presence with significant growth potential3 18 Grow and bolster U.S. and Canada, Latin America • 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 2015 Net Sales by Segment 2015 EBIT by Segment U.S. & Canada 75% Latin America 20% EMEA 1% Other 4% U.S. & Canada 61% Other 4% Latin America 20% EMEA 15%
3 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 enhance the presentation of the wine Unique Libbey ClearFire® formula creates brilliance & strength 19 Retail Foodservice
Full line of stemware, tumblers and specialty drinkware for retail and foodservice channels3 20 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
Be Social artisan bakeware 21 • Be Social Artisan Bakeware designed for retail channel • New Libbey-designed stoneware using sourced manufacturing Reactive blue glaze literally makes every piece unique Four essential shapes cover most baking needs • Artisan stoneware that’s dishwasher, oven and microwave safe Libbey makes oven to table beautiful 3
Launching three new “trend-right” collections in foodservice 22 Connecting to Trends & Insights Mix & Match Natural Perfectly Imperfect New matte-satin finish, organic shapes Organic shapes, earthy color variations Nostalgic patterns, “trend-right” blues & greys 3
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 – Libbey Signature™ and Masters Reserve® fine glassware • Leading proprietary furnace, manufacturing and mold technologies • Leveraging external relationships and partnerships to gain further advantage Cost optimization combined with manufacturing innovation create significant advantage4 23
Position of strength and business model drive predictable revenue stream and cash flow (1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Cash Flow 24 Historical Cumulative Adjusted Operating Cash flow (1) (MM) $(1) $105 $176 $233 $358 $432 $558 $624 2008 2009 2010 2011 2012 2013 2014 2015 5 $810 $749 $800 $817 $825 $819 $852 $822 $85 $90 $116 $113 $132 $135 $123 $116 2008 2009 2010 2011 2012 2013 2014 2015 Net Sales Adjusted EBITDA 10.5% 12.0% 14.5% 13.8% 16.0% 16.5% 14.5% 14.1% Adjusted EBITDA Margin Net Sales, Adjusted EBITDA and Margin (1) (MM)
6.4 4.3 3.2 3.0 3.0 2.7 3.1 3.3 2008 2009 2010 2011 2012 2013 2014 2015 1.2 1.4 2.6 2.6 3.5 4.2 5.4 6.3 2008 2009 2010 2011 2012 2013 2014 2015 Flexible capital structure includes term loan and ABL facilities • $440MM senior secured Term Loan B matures 2021 LIBOR plus 300 bps (currently 3.75%) No financial covenants $150MM accordion option • $100MM ABL facility matures 2019 LIBOR plus 150-200 bps; maturity 2019 Improved interest coverage • Significant reduction in borrowing rates since 2011 due to floating rate trend and debt agreement updates; annual interest expense reduced ~50% ($20MM) • $220MM of the Term Loan B swapped to fixed, reducing floating rate exposure to ~50:50 mix, effective January 2016 Significant deleveraging despite investments to strengthen the business • Fully funded U.S. pension in 2012, lowering annual cash contributions • ~$8MM estimated global cash contribution in 2016, approximately all to non-U.S. plans Capital structure and leverage policy provide financial flexibility 25 Adjusted EBITDA / Interest Expense Net Debt / Adjusted EBITDA 5 (1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted EBITDA and the ratio net debt/Adjusted EBITDA
• Strong cash generation and liquidity $25.6MM cash on hand at 3/31/16 $91.4MM ABL availability at 3/31/16 • Seasonal working capital needs Average $30-$35MM peak to trough swing in quarter-end working capital each year (1) • Capital expenditures on average about equal to depreciation ~$30 million growth investment for new glass manufacturing technology over 2014-2015 Flexibility to selectively review M&A opportunities • No significant long-term debt maturities until Term Loan B in 2021 Significant liquidity resources and moderate near- term funding obligations 26 $122 $136 $113 $142 $140 2011 2012 2013 2014 2015 Total of Cash and ABL Availability (MM) Cash ABL Availability 0 10 20 30 40 50 60 2011 2012 2013 2014 2015 Capital Expenditures, Depreciation & Amortization Capital Expenditures Depreciation & Amortization $Millions 5 (1) Working capital is defined as net accounts receivable plus net inventories less accounts payable as also noted in Appendix: Definition and reconciliation of non-GAAP measures
Balanced approach to capital allocation6 27 Invest in the business Maintain financial strength and flexibility Return capital to investors • Support/accelerate the organic growth of our business • Selectively consider acquisitions • New technologies and manufacturing capabilities • Other strategic initiatives • Target to return ~50% of free cash flow to shareholders for period 2015 – 2017 Over 50% distributed in 2015: $25MM • Re-initiated common dividend at annual $0.44/share in 2015 5% dividend increase for 2016 to $0.46/share • Share repurchase authorization increased to 1.5 million shares in 2015 Over 513K shares repurchased since December 2014 totaling ~$17.5MM • Long-term target leverage ratio range of 2.5x – 3.0x net debt to Adjusted EBITDA (1) • Ability to flex up or down • Plan to reduce debt in 2016 to target range; made a $5MM optional payment in Q1 2016 (1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted EBITDA and the ratio net debt/Adjusted EBITDA
Delivered solid Q1 2016 in a challenging macroeconomic environment 28 Q1 Highlights • Net sales grew 0.5% (constant currency), in line with our expectations Continued strength in foodservice, up 6.3% (constant currency) 12th consecutive quarter of foodservice volume growth despite continued restaurant traffic softness (Q1 2016 down 2-3%) • Currency impact of ~$6MM on revenue and ~$3MM on Adjusted EBITDA (1) primarily due to weaker Mexican peso • Adjusted EBITDA margin (1) was 180 bps better than prior year due to favorable price/mix, lower input costs and SG&A • Adjusted EBITDA margin (1) was 13.9%, excluding currency impact Currency Impact vs. PY $187 $183 $20 $22 $- $50 $100 $150 $200 2015 2016 Q1 Net Sales Q1 Adjusted EBITDA 10.5% 12.3% 0% 5% 10% 15% 20% 25% Adjusted EBITDA Margin Q1 Net Sales, Adjusted EBITDA and Margin (1) Millions $188 $25 (1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted EBITDA and Adjusted EBITDA Margin
We expect a continued challenging macroeconomic and competitive environment in 2016 29 2016 Earnings Outlook • Net sales growth of ~1% on a reported basis • 2016 Adjusted SG&A(1) in the low 15% range • 2016 Adjusted EBITDA(1) margin of ~14% Tailwinds + Sales growth + Natural gas Headwinds - Production activity - Rebuild variable compensation - Other benefit costs - Currency impacts (1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted SG&A and Adjusted EBITDA
Long-term financial goals 30 Financial Metric Long-term Goal Revenue growth $1B + Adjusted EBITDA margin 17% Net debt to adjusted EBITDA 2.5 to 3.0x ROIC 12% to 14% TSR Top quartile
Market Firm Net Sales 2015A Rev. Split '16E Margin FV / EBITDA P / E Net Debt / Company Cap Value 2016E 2017E N.A. Europe ROW EBITDA EBIT 2016E 2017E 2016E 2017E LTM EBITDA New ell Brands Inc $22,633 $36,396 $13,504 $16,399 70% -- 30% 18.4% 15.7% 14.6x 12.1x 16.1x 15.4x 6.3x Tupperw are Brands Corporation2,933 3,683 2,242 2,315 26 26 48 18.0 15.2 9.1 8.7 13.4 12.4 2.1 Helen of Troy Limited 2,760 3,259 1,589 1,649 84 12 4 14.6 11.1 14.0 13.2 16.2 14.9 1.9 Lifetime Brands, Inc. 246 334 599 617 79 14 8 -- -- -- -- 15.4 13.5 2.4 Mean $7,143 $10,918 $4,483 $5,245 64% 18% 22% 17.0% 14.0% 12.6x 11.3x 15.3x 14.1x 3.2x Median 2,847 3,471 1,915 1,982 74 14 19 18.0 15.2 14.0 12.1 15.8 14.2 2.2 Libbey Inc. $405 $822 $831 $848 61% 15% 25% 14.1% 8.6% 7.0x 6.7x 12.2x 10.4x 3.4x Trading at a significant discount to peers 31 Note: Forward metrics based on consensus Wall Street estimates (FactSet). Market data as of May 1, 2016. Balance sheet data as of Q1 2016. (1) Newell Brands pro forma for Jarden acquisition closed April 15, 2016. (2) Based on 497mm pro forma shares outstanding. (3) Based on pro forma debt of $13.9bn and pro forma cash of $181mm. (4) Based on pro forma LTM EBITDA of $2.2bn. (5) Revenue split based on fiscal year ended February 29, 2016. ($ in millions) (1) (5) (2) (3) (3)(4)
Appendices 32
We have expanded globally and have a strong portfolio of brands 33 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 $440MM Term Loan B senior secured credit facility 1818: Libbey founded as New England Glass Company in East Cambridge, MA s Jun 1993: Libbey becomes a public company 1892: The company changes its name to The Libbey Glass Company Oct 1995: Acquires Syracuse China Aug 2011: Bill Foley becomes Chairman of the Board 2015 Jan 2015: Announce Own the Moment strategy. Re-initiate dividend and share repurchases Jan 2016: Bill Foley becomes CEO and Chairman of the Board 2016
34 Definition and reconciliation of non-GAAP measures Q1 2016 Q1 2015 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 Net income (loss) 0.7$ 3.1$ 66.3$ 5.0$ 28.5$ 7.0$ 23.6$ 70.1$ (28.8)$ (80.4)$ Add: Interest expense 5.2 4.5 18.5 22.9 32.0 37.7 43.4 45.2 66.7 69.7 Provision (benefit) for income taxes (0.1) 1.3 (38.2) 8.5 13.2 5.7 1.7 11.6 2.7 6.3 Depreciation and amortization 12.1 10.2 42.7 40.4 44.0 41.5 42.2 41.1 43.2 44.4 Earnings before interest, taxes, deprecation and amortization (EBITDA) 17.9 19.1 89.3 76.8 117.7 91.9 110.9 168.0 83.8 40.0 Add: Special items before interest and taxes: Restructuring and facility closure charges - - - 1.0 6.5 - (0.1) 2.5 3.8 29.1 Severance - - - - 5.1 1.1 - - - Pension curtailment and settlement charges - - 21.7 0.8 2.3 4.3 - - 3.2 - 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 - - - - - - - - 11.9 Derivatives (0.3) 0.4 (0.2) 1.2 0.9 (0.3) (0.3) 0.8 - - Other (1) 4.9 0.2 5.3 (3.6) 5.1 - 2.5 2.8 - 4.5 Less: Accelerated depreciation expense included in special items and also in depreciation and amortization above - - - - (1.5) - - - (0.7) (0.3) Adjusted EBITDA 22.5$ 19.7$ 116.1$ 123.4$ 135.3$ 132.1$ 112.8$ 115.8$ 90.1$ 85.2$ Net sales 182.8$ 187.4$ 822.3$ 852.5$ 818.8$ 825.3$ 817.1$ 799.8$ 748.6$ 810.2$ Adjusted EBITDA Margin 12.3% 10.5% 14.1% 14.5% 16.5% 16.0% 13.8% 14.5% 12.0% 10.5% Reconciliation of Net Income (Loss) to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), Adjusted EBITDA and Adjusted EBITDA Margin (Dollars in millions) (1) Other in Q1 2016 and Q1 2015 includes $4.9 million and $0.2 million, respectively, for executive terminations. FY 2015 includes $4.3 million for reorganization charges, $0.9 million for executive termination, and $0.2 million for an environmental obligation. 2014 includes $(4.8) 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 $4.5 million fixed asset write-down charge. Adjusted EBITDA for the fiscal year ending December 31, 2016 is adjusted to exclude the impact of executive terminations and other non-recurring charges for the fiscal year ending December 31, 2016.
35 Adjusted Operating Cash Flow is defined as net cash provided by operating activities plus 2012 pension contribution (to fully fund our target obligations under ERISA), plus call premiums on senior notes and/or floating rate notes, plus debt issuance costs. Working capital is defined as net accounts receivable, plus net inventories less accounts payable. 2016 Adjusted SG&A is defined as selling, general and administrative expenses adjusted to exclude the impact of executive terminations and other non-recurring charges, if any, for the fiscal year ending December 31, 2016. Definition and reconciliation of non-GAAP measures 2015 2014 2013 2012 2011 2010 2009 2008 Adjusted EBITDA (1) 116.1$ 123.4$ 135.3$ 132.1$ 112.8$ 115.8$ 90.1$ 85.2$ Debt (2) 431.0 437.9 402.4 454.2 390.1 436.6 512.0 543.5 Plus: Unamortized discount, finance fees and warrants (2) 5.8 7.0 9.5 12.3 11.6 16.9 5.0 11.4 Less: Carrying value in excess of principal on PIK notes - - - - - - 70.2 - Less: Carrying value adjustment on debt related to the Interest Rate Agreement - - (1.3) 0.4 4.1 3.3 - - Gross Debt 436.9 444.9 413.2 466.1 397.6 450.2 446.8 554.9 Cash 49.0 60.0 42.2 67.2 58.3 76.3 55.1 13.3 Debt net of cash 387.9$ 384.9$ 371.0$ 398.9$ 339.3$ 373.9$ 391.7$ 541.6$ Debt net of cash to Adjusted EBITDA Ratio 3.3 3.1 2.7 3.0 3.0 3.2 4.3 6.4 Interest expense 18.5$ 22.9$ 32.0$ 37.7$ 43.4$ 45.2$ 66.7$ 69.7$ Adjusted EBITDA to Interest Expense Ratio 6.3 5.4 4.2 3.5 2.6 2.6 1.4 1.2 Reconciliation of Adjusted EBITDA to Debt net of cash to Adjusted EBITDA Ratio and Adjusted EBITDA to Interest Expense Ratio (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.
NYSE MKT: LBY Kimberly Hunter Treasurer and VP, Investor Relations 419-325-2612 email: khunte@libbey.com Alpha IR Group Chris Hodges & Sam Gibbons 312-445-2870 email: LBY@alpha-ir.com Additional Information visit our website: www.libbey.com 36

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Management pres may 2016

  • 1.
  • 2.
    Management 1 Sherry Buck Vice President,Chief Financial Officer Bill Foley Chairman and Chief Executive Officer Kim Hunter Treasurer and Vice President, Investor Relations
  • 3.
    Material presented atthis 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, 2015, filed on February 29, 2016, for further information. Cautionary statement 2
  • 4.
    Agenda 3 • Company Overview4 - 9 • Own the Moment Strategy 10 - 11 • Investment Highlights 12 - 26 • Recent Financial Performance 27 - 30 • Appendices Timeline 32 Definition and Reconciliation of Non-GAAP Measures 33 - 34
  • 5.
    Agenda 4 • Company Overview •Own the Moment Strategy • Investment Highlights • Recent Financial Performance • Appendices Timeline Definition and Reconciliation of Non-GAAP 33 - 34 Measures 4 - 9 10 - 11 12 - 26 27 - 30 32
  • 6.
    1. Global glasstableware leader: #2 in the world, #1 in the Western Hemisphere Favorite U.S. glassware brand and strongest unaided brand recognition 2. #1 U.S. Foodservice business drives significant recurring revenue and profitability #1 North American retail position drives consumer recognition and capacity utilization 3. Established global presence with significant growth potential 4. Cost structure optimization combined with manufacturing innovation creates significant advantage 5. Strong cash flow, liquidity and credit profile 6. Balanced approach to capital allocation Investment highlights 5
  • 7.
    Libbey at aglance A global tableware leader selling manufactured and sourced glass, ceramic and metal tableware. #2 global glassware position, #1 in the Americas! 6 Customers are the world’s largest foodservice distributors and most recognized retail names $822.3 million of net sales in 2015 sold to Foodservice, Retail and B2B channels globally Libbey sells more than 1,000,000,000 glasses annually Products central to life and gift giving that help celebrate important moments at home, in restaurants and on vacation NYSE MKT: LBY
  • 8.
    Libbey competes infour product categories 7 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, and other metal tableware accessories Sourced
  • 9.
    Libbey goes tomarket in three key channels • Leading network of 500+ of the world’s finest U.S. distributors who sell to restaurants, bars, hotels and travel and tourism venues • #1 glass tableware supplier and #2 dinnerware and flatware supplier in the U.S. and Canada • 90% of sales are replacements, driving predictable revenue stream; beverages most profitable item for a restaurant • Customers include marketers branding Libbey glassware with company logos and reselling to breweries, distilleries, soft drink companies, craft industries and food packing companies • Companies using glass products for candle and floral applications, blender jars, mixing bowls and washing machine glass Foodservice Retail Business-to- Business (B2B) • Customers include leading mass merchants, department stores, upscale retailers, grocers and internet retailers • North America’s #1 retail supplier of casual glass beverageware and an important driver of profitable factory utilization 8 No single customer accounts for 10% or more of sales
  • 10.
    Established industry-leading globalfootprint 9 West Chicago, IL Toledo, OH Shreveport, LA Monterrey, Mexico Laredo, TX Libbey Manufacturing and Warehousing / Distribution Marinha Grande, Portugal Leerdam, Netherlands Langfang, China Libbey Warehousing / Distribution MillionTotal Sq. Ft. Libbey Warehousing / Distribution Centers7 8Libbey Manufacturing Facilities6 Libbey Headquarters
  • 11.
    Libbey is wellpositioned for a next phase of success 10 Recovery and reinforcement • Cost reduction and de- leveraging Substantial cost containment measures Leverage reduced to ~3x 2014 adjusted EBITDA • Continued investment to strengthen and build the business Added low cost Mexican production for North America markets Entered China for long- term opportunity Acquisition leverage + Great Recession = Stress • Acquisition-focused growth Averaging +10% annually from 2001 to 2008 • Great Recession financial stress Leverage reached unsustainably high >6x adjusted EBITDA Winning from position of strength • Libbey clearly positioned as market leader with strong profitability and cash flows • Focus on creating sustainable value for our shareholders • Three strategic levers: Grow and bolster U.S. and Canada and Latin America segments Expand margins through product innovation, price / mix, operating efficiencies, distribution expansion and business simplification Maintain disciplined capital management and return free cash flow to shareholders 2001 - 2006 2006 - 2014 2015 - 2020
  • 12.
    11 Grow & BolsterU.S. and Canada, Latin America • Grow around core in Foodservice • Win in key accounts in Retail & B2B • Strengthen/broaden new product 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
  • 13.
    • Drive organicgrowth • Develop differentiated product offerings leveraging Enhanced market insight and innovation capabilities Emerging trends New technology and sourcing resources • Improve margins • Expand into adjacent categories 12 • Improve customer focus and responsiveness Customer feedback and consistent engagement Adapting operating practices to meet customer needs • Remove non-value-added complexity Streamline supply chain network and product portfolio Improve product life-cycle management Support continuous improvement and cost reduction Match manufacturing platform to emerging trends and market conditions Own the Moment strategy: three key focus areas Growth through Innovation Customer Focus Business Simplification
  • 14.
    1. Global glasstableware leader: #2 in the world; #1 in the Western Hemisphere Favorite U.S. glassware brand with strongest unaided brand recognition 2. #1 U.S. Foodservice business drives significant recurring revenue and profitability #1 North American retail position drives consumer recognition and capacity utilization 3. Established global presence with significant growth potential 4. Cost structure optimization combined with manufacturing innovation creates significant advantage 5. Strong cash flow, liquidity and credit profile 6. Balanced approach to capital allocation Investment highlights 13
  • 15.
    10% global marketshare(1) Market leadership in U.S. and Mexico • ~60% 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) • Significant supplier in B2B segment 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 and management estimates 1 14
  • 16.
    Favorite U.S. glasswarebrand and strongest unaided brand recognition 15 → The favorite U.S. Glassware Brand and strongest unaided brand recognition;(1) 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 with products ranging 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 Manufactured Sourced (1) According to survey conducted by NPD 1
  • 17.
    #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 provide a competitive advantage • Depth and breadth of product line maximizes addressable market and highlights innovation capabilities • Installed base and high switching costs in foodservice; establishments rarely change after initial investment • Steady pace of innovation and critical profitability of beverageware lead to lower price sensitivity; U.S. and Canada foodservice business has achieved price increases in 42 of last 46 years • Sourced dinnerware and flatware provide additional growth opportunities at very attractive ROIC • Additional growth opportunities outside full-service restaurants and bars #1 in Western Hemisphere and #1 in North America2 16
  • 18.
    #1 North AmericaRetail Position • #1 Retail brands in U.S., Canada and Mexico(1) • 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 channel in the U.S. and Canada 2 17 #1 in Western Hemisphere and #1 in North America (1) - Casual glass beverageware category, NPD and management estimates
  • 19.
    Established global presencewith significant growth potential3 18 Grow and bolster U.S. and Canada, Latin America • 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 2015 Net Sales by Segment 2015 EBIT by Segment U.S. & Canada 75% Latin America 20% EMEA 1% Other 4% U.S. & Canada 61% Other 4% Latin America 20% EMEA 15%
  • 20.
    3 Libbey’s finestglassware: “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 enhance the presentation of the wine Unique Libbey ClearFire® formula creates brilliance & strength 19 Retail Foodservice
  • 21.
    Full line ofstemware, tumblers and specialty drinkware for retail and foodservice channels3 20 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
  • 22.
    Be Social artisanbakeware 21 • Be Social Artisan Bakeware designed for retail channel • New Libbey-designed stoneware using sourced manufacturing Reactive blue glaze literally makes every piece unique Four essential shapes cover most baking needs • Artisan stoneware that’s dishwasher, oven and microwave safe Libbey makes oven to table beautiful 3
  • 23.
    Launching three new“trend-right” collections in foodservice 22 Connecting to Trends & Insights Mix & Match Natural Perfectly Imperfect New matte-satin finish, organic shapes Organic shapes, earthy color variations Nostalgic patterns, “trend-right” blues & greys 3
  • 24.
    Executed multiple costreduction 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 – Libbey Signature™ and Masters Reserve® fine glassware • Leading proprietary furnace, manufacturing and mold technologies • Leveraging external relationships and partnerships to gain further advantage Cost optimization combined with manufacturing innovation create significant advantage4 23
  • 25.
    Position of strengthand business model drive predictable revenue stream and cash flow (1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Cash Flow 24 Historical Cumulative Adjusted Operating Cash flow (1) (MM) $(1) $105 $176 $233 $358 $432 $558 $624 2008 2009 2010 2011 2012 2013 2014 2015 5 $810 $749 $800 $817 $825 $819 $852 $822 $85 $90 $116 $113 $132 $135 $123 $116 2008 2009 2010 2011 2012 2013 2014 2015 Net Sales Adjusted EBITDA 10.5% 12.0% 14.5% 13.8% 16.0% 16.5% 14.5% 14.1% Adjusted EBITDA Margin Net Sales, Adjusted EBITDA and Margin (1) (MM)
  • 26.
    6.4 4.3 3.2 3.0 3.02.7 3.1 3.3 2008 2009 2010 2011 2012 2013 2014 2015 1.2 1.4 2.6 2.6 3.5 4.2 5.4 6.3 2008 2009 2010 2011 2012 2013 2014 2015 Flexible capital structure includes term loan and ABL facilities • $440MM senior secured Term Loan B matures 2021 LIBOR plus 300 bps (currently 3.75%) No financial covenants $150MM accordion option • $100MM ABL facility matures 2019 LIBOR plus 150-200 bps; maturity 2019 Improved interest coverage • Significant reduction in borrowing rates since 2011 due to floating rate trend and debt agreement updates; annual interest expense reduced ~50% ($20MM) • $220MM of the Term Loan B swapped to fixed, reducing floating rate exposure to ~50:50 mix, effective January 2016 Significant deleveraging despite investments to strengthen the business • Fully funded U.S. pension in 2012, lowering annual cash contributions • ~$8MM estimated global cash contribution in 2016, approximately all to non-U.S. plans Capital structure and leverage policy provide financial flexibility 25 Adjusted EBITDA / Interest Expense Net Debt / Adjusted EBITDA 5 (1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted EBITDA and the ratio net debt/Adjusted EBITDA
  • 27.
    • Strong cashgeneration and liquidity $25.6MM cash on hand at 3/31/16 $91.4MM ABL availability at 3/31/16 • Seasonal working capital needs Average $30-$35MM peak to trough swing in quarter-end working capital each year (1) • Capital expenditures on average about equal to depreciation ~$30 million growth investment for new glass manufacturing technology over 2014-2015 Flexibility to selectively review M&A opportunities • No significant long-term debt maturities until Term Loan B in 2021 Significant liquidity resources and moderate near- term funding obligations 26 $122 $136 $113 $142 $140 2011 2012 2013 2014 2015 Total of Cash and ABL Availability (MM) Cash ABL Availability 0 10 20 30 40 50 60 2011 2012 2013 2014 2015 Capital Expenditures, Depreciation & Amortization Capital Expenditures Depreciation & Amortization $Millions 5 (1) Working capital is defined as net accounts receivable plus net inventories less accounts payable as also noted in Appendix: Definition and reconciliation of non-GAAP measures
  • 28.
    Balanced approach tocapital allocation6 27 Invest in the business Maintain financial strength and flexibility Return capital to investors • Support/accelerate the organic growth of our business • Selectively consider acquisitions • New technologies and manufacturing capabilities • Other strategic initiatives • Target to return ~50% of free cash flow to shareholders for period 2015 – 2017 Over 50% distributed in 2015: $25MM • Re-initiated common dividend at annual $0.44/share in 2015 5% dividend increase for 2016 to $0.46/share • Share repurchase authorization increased to 1.5 million shares in 2015 Over 513K shares repurchased since December 2014 totaling ~$17.5MM • Long-term target leverage ratio range of 2.5x – 3.0x net debt to Adjusted EBITDA (1) • Ability to flex up or down • Plan to reduce debt in 2016 to target range; made a $5MM optional payment in Q1 2016 (1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted EBITDA and the ratio net debt/Adjusted EBITDA
  • 29.
    Delivered solid Q12016 in a challenging macroeconomic environment 28 Q1 Highlights • Net sales grew 0.5% (constant currency), in line with our expectations Continued strength in foodservice, up 6.3% (constant currency) 12th consecutive quarter of foodservice volume growth despite continued restaurant traffic softness (Q1 2016 down 2-3%) • Currency impact of ~$6MM on revenue and ~$3MM on Adjusted EBITDA (1) primarily due to weaker Mexican peso • Adjusted EBITDA margin (1) was 180 bps better than prior year due to favorable price/mix, lower input costs and SG&A • Adjusted EBITDA margin (1) was 13.9%, excluding currency impact Currency Impact vs. PY $187 $183 $20 $22 $- $50 $100 $150 $200 2015 2016 Q1 Net Sales Q1 Adjusted EBITDA 10.5% 12.3% 0% 5% 10% 15% 20% 25% Adjusted EBITDA Margin Q1 Net Sales, Adjusted EBITDA and Margin (1) Millions $188 $25 (1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted EBITDA and Adjusted EBITDA Margin
  • 30.
    We expect acontinued challenging macroeconomic and competitive environment in 2016 29 2016 Earnings Outlook • Net sales growth of ~1% on a reported basis • 2016 Adjusted SG&A(1) in the low 15% range • 2016 Adjusted EBITDA(1) margin of ~14% Tailwinds + Sales growth + Natural gas Headwinds - Production activity - Rebuild variable compensation - Other benefit costs - Currency impacts (1) See Appendix: Definition and reconciliation of non-GAAP measures for details regarding calculation of Adjusted SG&A and Adjusted EBITDA
  • 31.
    Long-term financial goals 30 Financial Metric Long-termGoal Revenue growth $1B + Adjusted EBITDA margin 17% Net debt to adjusted EBITDA 2.5 to 3.0x ROIC 12% to 14% TSR Top quartile
  • 32.
    Market Firm NetSales 2015A Rev. Split '16E Margin FV / EBITDA P / E Net Debt / Company Cap Value 2016E 2017E N.A. Europe ROW EBITDA EBIT 2016E 2017E 2016E 2017E LTM EBITDA New ell Brands Inc $22,633 $36,396 $13,504 $16,399 70% -- 30% 18.4% 15.7% 14.6x 12.1x 16.1x 15.4x 6.3x Tupperw are Brands Corporation2,933 3,683 2,242 2,315 26 26 48 18.0 15.2 9.1 8.7 13.4 12.4 2.1 Helen of Troy Limited 2,760 3,259 1,589 1,649 84 12 4 14.6 11.1 14.0 13.2 16.2 14.9 1.9 Lifetime Brands, Inc. 246 334 599 617 79 14 8 -- -- -- -- 15.4 13.5 2.4 Mean $7,143 $10,918 $4,483 $5,245 64% 18% 22% 17.0% 14.0% 12.6x 11.3x 15.3x 14.1x 3.2x Median 2,847 3,471 1,915 1,982 74 14 19 18.0 15.2 14.0 12.1 15.8 14.2 2.2 Libbey Inc. $405 $822 $831 $848 61% 15% 25% 14.1% 8.6% 7.0x 6.7x 12.2x 10.4x 3.4x Trading at a significant discount to peers 31 Note: Forward metrics based on consensus Wall Street estimates (FactSet). Market data as of May 1, 2016. Balance sheet data as of Q1 2016. (1) Newell Brands pro forma for Jarden acquisition closed April 15, 2016. (2) Based on 497mm pro forma shares outstanding. (3) Based on pro forma debt of $13.9bn and pro forma cash of $181mm. (4) Based on pro forma LTM EBITDA of $2.2bn. (5) Revenue split based on fiscal year ended February 29, 2016. ($ in millions) (1) (5) (2) (3) (3)(4)
  • 33.
  • 34.
    We have expandedglobally and have a strong portfolio of brands 33 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 $440MM Term Loan B senior secured credit facility 1818: Libbey founded as New England Glass Company in East Cambridge, MA s Jun 1993: Libbey becomes a public company 1892: The company changes its name to The Libbey Glass Company Oct 1995: Acquires Syracuse China Aug 2011: Bill Foley becomes Chairman of the Board 2015 Jan 2015: Announce Own the Moment strategy. Re-initiate dividend and share repurchases Jan 2016: Bill Foley becomes CEO and Chairman of the Board 2016
  • 35.
    34 Definition and reconciliationof non-GAAP measures Q1 2016 Q1 2015 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 Net income (loss) 0.7$ 3.1$ 66.3$ 5.0$ 28.5$ 7.0$ 23.6$ 70.1$ (28.8)$ (80.4)$ Add: Interest expense 5.2 4.5 18.5 22.9 32.0 37.7 43.4 45.2 66.7 69.7 Provision (benefit) for income taxes (0.1) 1.3 (38.2) 8.5 13.2 5.7 1.7 11.6 2.7 6.3 Depreciation and amortization 12.1 10.2 42.7 40.4 44.0 41.5 42.2 41.1 43.2 44.4 Earnings before interest, taxes, deprecation and amortization (EBITDA) 17.9 19.1 89.3 76.8 117.7 91.9 110.9 168.0 83.8 40.0 Add: Special items before interest and taxes: Restructuring and facility closure charges - - - 1.0 6.5 - (0.1) 2.5 3.8 29.1 Severance - - - - 5.1 1.1 - - - Pension curtailment and settlement charges - - 21.7 0.8 2.3 4.3 - - 3.2 - 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 - - - - - - - - 11.9 Derivatives (0.3) 0.4 (0.2) 1.2 0.9 (0.3) (0.3) 0.8 - - Other (1) 4.9 0.2 5.3 (3.6) 5.1 - 2.5 2.8 - 4.5 Less: Accelerated depreciation expense included in special items and also in depreciation and amortization above - - - - (1.5) - - - (0.7) (0.3) Adjusted EBITDA 22.5$ 19.7$ 116.1$ 123.4$ 135.3$ 132.1$ 112.8$ 115.8$ 90.1$ 85.2$ Net sales 182.8$ 187.4$ 822.3$ 852.5$ 818.8$ 825.3$ 817.1$ 799.8$ 748.6$ 810.2$ Adjusted EBITDA Margin 12.3% 10.5% 14.1% 14.5% 16.5% 16.0% 13.8% 14.5% 12.0% 10.5% Reconciliation of Net Income (Loss) to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), Adjusted EBITDA and Adjusted EBITDA Margin (Dollars in millions) (1) Other in Q1 2016 and Q1 2015 includes $4.9 million and $0.2 million, respectively, for executive terminations. FY 2015 includes $4.3 million for reorganization charges, $0.9 million for executive termination, and $0.2 million for an environmental obligation. 2014 includes $(4.8) 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 $4.5 million fixed asset write-down charge. Adjusted EBITDA for the fiscal year ending December 31, 2016 is adjusted to exclude the impact of executive terminations and other non-recurring charges for the fiscal year ending December 31, 2016.
  • 36.
    35 Adjusted Operating CashFlow is defined as net cash provided by operating activities plus 2012 pension contribution (to fully fund our target obligations under ERISA), plus call premiums on senior notes and/or floating rate notes, plus debt issuance costs. Working capital is defined as net accounts receivable, plus net inventories less accounts payable. 2016 Adjusted SG&A is defined as selling, general and administrative expenses adjusted to exclude the impact of executive terminations and other non-recurring charges, if any, for the fiscal year ending December 31, 2016. Definition and reconciliation of non-GAAP measures 2015 2014 2013 2012 2011 2010 2009 2008 Adjusted EBITDA (1) 116.1$ 123.4$ 135.3$ 132.1$ 112.8$ 115.8$ 90.1$ 85.2$ Debt (2) 431.0 437.9 402.4 454.2 390.1 436.6 512.0 543.5 Plus: Unamortized discount, finance fees and warrants (2) 5.8 7.0 9.5 12.3 11.6 16.9 5.0 11.4 Less: Carrying value in excess of principal on PIK notes - - - - - - 70.2 - Less: Carrying value adjustment on debt related to the Interest Rate Agreement - - (1.3) 0.4 4.1 3.3 - - Gross Debt 436.9 444.9 413.2 466.1 397.6 450.2 446.8 554.9 Cash 49.0 60.0 42.2 67.2 58.3 76.3 55.1 13.3 Debt net of cash 387.9$ 384.9$ 371.0$ 398.9$ 339.3$ 373.9$ 391.7$ 541.6$ Debt net of cash to Adjusted EBITDA Ratio 3.3 3.1 2.7 3.0 3.0 3.2 4.3 6.4 Interest expense 18.5$ 22.9$ 32.0$ 37.7$ 43.4$ 45.2$ 66.7$ 69.7$ Adjusted EBITDA to Interest Expense Ratio 6.3 5.4 4.2 3.5 2.6 2.6 1.4 1.2 Reconciliation of Adjusted EBITDA to Debt net of cash to Adjusted EBITDA Ratio and Adjusted EBITDA to Interest Expense Ratio (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.
  • 37.
    NYSE MKT: LBY KimberlyHunter Treasurer and VP, Investor Relations 419-325-2612 email: khunte@libbey.com Alpha IR Group Chris Hodges & Sam Gibbons 312-445-2870 email: LBY@alpha-ir.com Additional Information visit our website: www.libbey.com 36