Slide 1: Full Year Results August 2006
Slide 2: Disclaimer
Disclaimer AAMCOR + This presentation contains forward-looking statements that involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, ‘and are unknown to, Amcor. Forward-looking statements can generall
Slide 3: Investor Presentation
Investor Presentation AMCOR Overview of results - Ken MacKenzie The way forward - Ken MacKenzie Australasia - Lou Lachal Non Australasian businesses - Ken MacKenzie Finance - Peter Day Summary - Ken MacKenzie Q&A -All
Slide 4: Full Year Results
Full Year Results Profit Summary 505/06 A% | | Positives PBITDA (AS mi) 4,249 (2.7) | | * PBITDA2.7% lower in an environment of parasm tz 7s 6 | | Seay ent PAT (AS m) 459.406 (11.5) 4 EPS 8 ) =z, 46.1 i 2 + Good recovery by year end of raw material PBIT/AFE(%) 120 11.3 eee becead : + Solid performan
Slide 5: The Way Forward
The Way Forward ————= Improve EXECUTION FOCUS eq shareholder ec value CULTURAL CHANGE + Execution priorities announced in August 2005 — Two to three year program + Significant progress in all areas over the past 12 months Substantial improvement expected over the next two to three years
Slide 6: The Way Forward — Strong Market Positions
The Way Forward — Strong Market Positions AMCOR EXECUTION FOCUS + Flexibles and tobacco packaging in emerging and attractive markets > Custom PET Assess: * Select Market segments in Australasia + Segment attractiveness i ey + As announced in August 2005 +Potential sale proceeds between $0.5 to $1.0
Slide 7: The Way Forward — Strong Market Positions
The Way Forward — Strong Market Positions = (- 7 + Opportunities to substantially improve underperforming businesses: — PET in Mexico. — PBIT improvement of more than USD15 million over two years ~ Fibre in Australasia — PBIT improvement of $60 to $80 million for a net cash outlay of approximately $
Slide 8: The Way Forward — Strong Market Positions
The Way Forward — Strong Market Positions SELL + Asset sales — White Cap Closures Asian corrugated, sacks and closures Australasia PET Review ongoing and further asset sales possible Completed asset sal
Slide 9: The Way Forward — Strong Market Positions
he Way Forward — Strong Market Positions AMCOR > (eLose >) + European Flexibles operations: = Closing two plants — Colodense in the UK and Hochheim in Germany ~ Cash costs of €32 milion — Improved earnings of €10 million in 2007/08 + PET = Two small blow molding sites in Mexico — Poland asset dispos
Slide 10: The Way Forward — Strong Market Positions
The Way Forward — Strong Market Positions EXECUTION FOCUS GROW Organic Growth Acquisitions + Custom PET + Tobacco Packaging — New plant for Gatorade in the — Increased investment US. in Vision Grande ~ Specific projects in North — Investment in K Laser ‘America in 2008/07 + Flexibles — Expansion in
Slide 11: The Way Forward — Strong Market Positions
The Way Forward — Strong Market Positions AMCOR EXECUTION FOCUS —_ [=] > Summary + Substantial progress over + Segment the past 12 months attractiveness + Competitive position (i) » Review ongoing and on > schedule
Slide 12: The Way Forward - Customer & Market Focused
The Way Forward - Customer & Market Focused Focus is on: > — Building capability in sales and marketing — Changing culture + Extensive program developed and being “rolled out” across the businesses — Wave 1 already competed in: — Flexibles Australia — PET North America — Flexibles North America ~ Su
Slide 13: The Way Forward — Lower Costs
The Way Forward — Lower Costs EXECUTION FOCUS + Operational » — Continuous cost reduction at the plant level — Improved focus and execution discipline — Substantial component of the turnarounds is lowering costs + Procurement — Focus on raw materials, energy and transport. + Overheads — Savings from
Slide 14: The Way Forward — Capital Discipline
The Way Forward — Capital Discipline EXECUTION FOCUS: = Capital discipline is managing the J cash flow and balance sheet to deliver optimal performance for shareholders + The focus is on: — Capital expenditure — Working capital — Balance sheet structure
Slide 15: Capital required for existing businesses
+ Capital required for existing businesses ~ Maintenance spend — Cost reduction projects — Incremental growth + Depreciation $473 million XX
Slide 16: Growth capital
Base Grom “y $70 + Funding the specified growth markets — Vision Grande $55 million — Custom PET $14 million (Wytheville) + Funded by asset sale proceeds
Slide 17: Average working capital to sales ratio
XX + Average working capital to sales ratio increased from 11.0% to 11.4% due to poor performance in the first half
Slide 18: The Way Forward — Capital Discipline
he Way Forward — Capital D EXECUTION Focus Targets for 2006/07 * Base capital expenditure to be around depreciation + Spending on announced growth projects for 2006/07 approximately $130 million + Reduction in the average working capital to sales ratio Capital discipline will be a key component of t
Slide 19: Improved Cash Flow
The Way Forward — Capital Discipline Improved Cash Flow EXECUTION Focus ASm 05/06 = PBITDA 4,249 Interest (240) Tax (78) Base Capex (442) Significant items (cash component) (26) Movement in w.c. 123 Other _ (63) Operating cash flow ||") 522 Dividends 309 Free cash flow Pia 213 Divestments 264 Growth
Slide 20: The Way Forward — Capital Discipline
The Way Forward — Capital Discipline EXECUTION Focus tines + Balance sheet focus: — Appropriate structure minimising the cost of capital + Conversion of hybrid instruments to debt — Approximately $900 million over an 18 month period — Interest costs reduced by around $25 million Good progress in bal
Slide 21: The Way Forward - Summary
The Way Forward - Summary Improve shareholder value ‘cumes CULTURAL CHANGE + Substantial changes to the leadership team + New culture being developed based around the three key areas of the execution: — Customer and market focus — Capital discipline — Lowest costs + Implementation of a global talent
Slide 22: The Way Forward - Summary
he Way Forward - Summary AMCOR Improve shareholder value CULTURAL CHANGE + Excellent progress in all areas + Benefits to be realised over the next 12 to 24 months
Slide 23: Australasia results and cash flow
Cash Flow * i % sam 05606 in . PeITDA 384.2 * ‘Capital Expenditure (105.2) =r ™ * MovementinWc 135 Tew se . ‘cash Flow 2025 Sales AS m 2872 2.561 PBIT AS m 3158 2624 AE AS m 1,804 1,840 PBITIAFE % 15 43 “Al operations Employees 6510 6.408 Fibre 1331 1,264 Flexibles 444440 Rigid 797 857 TorAaL i272 2
Slide 24: Fibre performance 05/06
Fibre performance 05/06 Summary + A disappointing result with eamings substantially lower — Lower volumes. ~ Operational issues (Organisational structure change New management team ‘Comprehensive turaround plan has been developed Paper Recycled — Lower domestic volumes ~ Higher export volumes at low
Slide 25: Fibre performance 05/06
Fibre performance 05/06 Operating + Installation of SAP = Benefits in 06/07 but impost in 05/06 ~ Service levels have not been reliable + Unrecovered inflationary cost increases + Pockets of aggressive prci + Downsize in New Zealand with the loss of Fonterra + Queensland restructure underway Need to
Slide 26: Fibre Australasia — Strategic Issues
Fibre Australasia — Strategic Issues Strategic Positives + Amcor's market position + High barriers to entry + Industry structure Negatives + Low growth Characteristics + Commodity products + High complexity Requirements Low cost producer — Detailed plan to address Reliable service levels ~ SAP a maj
Slide 27: Fibre Australasia — Improvement Plan
Fibre Australasia — Improvement Plan Corrugated Queensland * Closing one site and creating low cost facility at Rocklea Victoria * Close site at Box Hill * Appropriate reinvestment in remaining sites at Scoresby and Brooklyn — Low cost plants New South Wales + New management finalising review + Rest
Slide 28: Fibre Australasia — Improvement Plan
Fibre Australasia — Improvement Plan Cartons + Upgrade equipment in New South Wales to lower costs and target new opportunities + Reallocate production across sites in New South Wales, Victoria and Queensland to improve operating efficiencies Cartonboard + Benchmarked Petrie Mill globally ~ Cost eff
Slide 29: Fibre Australasia — Improvement Plan Summary
Fibre Australasia — Improvement Plan Summary Actions + Close corrugated plant at Box Hill + Upgrade other Victorian sites + Close paper plant in Spearwood + Restructuring at Petrie Mill + Improve operating efficiencies in New ‘South Wales corrugated + Upgrade manufacturing in cartons New South Wales
Slide 30: Flexibles and Rigid Packaging 05/06
Flexibles and Rigid Packaging 05/06 Rigid Packaging Beverage cans + Volumes up 6% + Strong growth in multipack soft drink market Food cans + Good earings growth in challenging market Glass * Strong year + Second furnace now at full capacity + Volumes up 13% Flexibles Packaging Solid year Recovery of
Slide 31: Australasian outlook
Australasian outlook Strategically + Generally good industry structure ‘across the businesses + Amcor is number one or two in each ‘segment + Non fibre business is generally well capitalised and low cost + Fibre requires restructuring and capital on recycled paper + Opportunities to improve kraft su
Slide 32: Amcor PET Packaging
Amcor PET Packaging Earnings & Returns Sales USDm 2,772 PBITUSOm 194.8, AFEUSDm 1,847 PBITIAFE% 10.5% Employees’ 6,177 Cash Flow * usp m 05106 PEITDA 3374 Capital Expenditure (183.6) MovementinWc 18.4 Sigoificant items (6.7) Cash Flow ill 195.2 Growth Capital (10.2) "All operations Volumes Billion U
Slide 33: Energy Costs
Energy Costs Issues All costs experienced inflationary pressure, however energy was the most significant Energy is a key input cost, representing over 15% of non- material operating costs Most existing contracts have not provided for energy cost recovery Contracts typically three to five years, dura
Slide 34: North America
North America AMCOR Positives Offsets + Substantial profit improvement + Rising inflationary pressures, especially + Custom volume growth 26% energy costs in the second half ae + Limited short-term abilty for inflationary Coutnuet success with new cout tase + Ongoing industry wide capital discipline
Slide 35: Latin America
Latin America Positives + Overall volume growth 10% * Custom volume growth 37%, reflecting strong market position supporting growth in Gatorade * Ongoing substitution from glass to PET Packaging Mexico Improvement Plan + New management + Footprint changes — Closing two small blowmolding plants + Imp
Slide 36: Europe
AMCOR Positives Increased earnings ~ Strong second half Improved operating efficiencies in ‘Westen European plants UK operations delivered another strong result Sale of the loss-making Poland operation Continued good performance from the PET recycling operations Continued cost management and overhea
Slide 37: PET Packaging - Summary
PET Packaging - Summary Strategic Operational + Custom PET is an attractive market + Recovery of energy cost increases segment + Improvement in Mexico — Favourable industry structure * Benefits from capital expenditure in ~ Higher barriers to entry custom PET ~ Continued good growth + Continued focu
Slide 38: Amcor Flexibles
Amcor Flexibles Earnings & Returns * emo Sales €m 4787 PBITEm: 427 AFEEm 928 PBITIAFE % 124 Employees 8,390 {Continuing operations Cash Flow * em 05/06, PBITDA 208.4 Capital Expenditure (80.7) MovementinWC 55.4 Significant items (11) cash Flow 1604 Growth Capital (0.3) {All operations Sales * em 041
Slide 39: Input Costs
Input Costs AMCOR Raw Material Market Price Trends: “ge 3 e888 8 a2 BEEGEG Raw material input costs rose substantially through the year with further increases expected over the next few months Index of Market Movements é
Slide 40: Flexibles - Healthcare
Flexibles - Healthcare Positives Offsets + Strong performance in the Americas + Poor performance in the medical film with sales up 9% and improved profits segment + Good management of volatile input + Some operating inefficiencies in the costs in North America combining of two sites in Burgos, Spain
Slide 41: Flexibles - Food
Flexibles - Food Positives + First half overtrading in bread and produce resolved with new capacity + Substantial improvement in processed + Raw materials foods + There remains overcapacity in some + Improved plant performance, ‘segments however returns remain * Ongoing footprint review unsatisfacto
Slide 42: Flexibles - Tobacco Packaging and Eastern Europe
Flexibles - Tobacco Packaging and Eastern Europe Positives Offsets + Continued strong performance in + Slowing growth in Eastern Europe Eastern European tobacco packaging + Continued restructuring in Western + Transition to graphical health warnings Europe on schedule + Solid customer support for fl
Slide 43: Flexibles - Summary
Flexibles - Summary Strategic + Healthcare + Attractive market segment + Need to establish global approach to ‘customers and sourcing + Food + Processed segment low growth in ‘Western Europe + Fresh segment attractive with good growth + In general, Western Europe remains challenging + Tobacco Packag
Slide 44: Amcor Sunclipse
AMCOR Cash Flow * Sales uso m oss || usom —o4ins \" % | | perros 58.5 | | Distribution 718 | Capital Expenditure (9.1) | | Man. Products 209, | Movement inWC (7.4) | | Corrugated 174 174 cl = | | cosh ai 42 | | eliminations (187) (192) ™ \; TOTAL 914 965 ee en Soles usom 918 ss parrusom 410 ae APEUs
Slide 45: Amcor Asia
Earnings & Returns Cash Flow * Sales socom x be som ess || scom owns ose _ PBITDA 479 TobaccoPack 146 132 =|. 7 iva Capital Expenditure — 0.7 Flexibles 46 85 ink Movement in WC 02 Other 36 28 ind Cash Flow! 48. TOTAL 228 215 . in Growth Capital (68) Sales ScDm “328 215 Parrscom 233 367 AFESGDm 200 2
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Slide 47: Group Financials
Slide 48: Presentation Key Notes
Presentation Key Notes AMCOR + Key results and significant items + Earnings analysis * Cash flow * Capital structure + AIFRS impacts + Summary All data is on AIFRS basis unless indicated otherwise
Slide 49: Key Results June 2006 — All Operations
Key Results 30 June 2006 — All Oper: AMCOR AS m (before significants) June05 June 06 _%Change Sales 11,099.6 11,439.3 3.1% PBITDA 1,283.6 1,249.1 (2.7) % PBIT 821.8 775.7 (8.6) % Borrowing costs (incl PACRS) (218.7) (246.6) (12.8)% PBT 603.1 529.1 (12.3) % Tax and Minorities (144.3) (123.2) 14.6% PA
Slide 50: Continuing and Discontinued Operations Results
AMCOR A$ m (before significants) Total Discontinued Continuing Operations Operations Sales 11,439.3 401.3 11,038.0 PBITDA 1,249.1 49.2 1,199.9 PBIT 775.7 276 748.1 Borrowing costs (246.6) (4.4) (242.2) Tax (111.1) (2.9) (108.2) PAT Pre-Significant items 418.0) 203 397.7 AMCOR 20.3 Minorities 12.1 0.
Slide 51: Bridge Presentation June 2006
Bridge Presentation 30 June 2006 ASm Total Discontinued Continuing Operations _ Operations ‘Amcor C4059 203 385.6 Minorities 12.1 0.0 12.4 PAT Pre — Significant 20.3 397.7 Significant Items (63.1) (1.0) Tax Effect 93 16.0 Net Significants (53.8) 15.0 ‘Amcor (53.8) (0.8) Minorities 0.0 158 Net Signif
Slide 52: Reconciliation to Statutory Results
Reconciliation to Statutory Results ASm Total Discontinued Continuing Operations _ Operations Net sales 11,439.3 401.3 11,038.0 Elimination adjustment to continuing operations =~ (39) 39 Statutory sales revenue ees 3974 Profit after Tax 379.2 (33.5) 4127 Elimination adjustment to continuing operatio
Slide 53: Significant Items
Significant Items Asm June 06 Fair value gain from options & dilution 445 Profit on sale of tobacco businesses 52.3 Overall gain from Vision Grande ransaclonn 96.8 Asian corrugated loss on sale & impairment (32.1) Closures loss on sale & impairment (34.0) Flexibles Europe restructure & impairment (7
Slide 54: Significant Items
Significant Items Asm June 06 Fair value gain from options & dilution 44.5 Profit on sale of tobacco businesses 52.3 Overall gain from Vision Grande ransaclonn 96.8 Asian corrugated loss on sale & impairment (32.1) Closures loss on sale & impairment (34.0) Flexibles Europe restructure & impairment (
Slide 55: Borrowing Costs Bridge June to June
Borrowing Costs Bridge June 05 to June 06 AMCOR A$m June 05 June06 %Change Base line costs 166.4 166.4 Higher interest rates 10.0 Credit rating impact 3.0 Other net changes 94 es a (13)% PACRS interest 52.3 48.1 PACRS conversion disc & costs 97 Ze) 246.6 = (13) % All Operations
Slide 56: Borrowing Rates — Exit Rates
Borrowing Rates — Exit Rates AMCOR Weighted Average Cost at Period End June 05 June 06 PACRS. 8.6% 9.7% PRIDES 7.3% 7.3% Other Debt Facilities -US 5.0% 5.8% - Europe 4.0% 4.0% - Australia 5.7% 7.0% - New Zealand 7.3% 7.6% - Asia 4.9% 4.0% Weighted Average Cost 5.5% 5.5% Other Borrowing Costs 30bps 2
Slide 57: Group Cash Flow - All Operations
Group Cash Flow - All Operations June 05 June 06__ Comment PBITDA 1,283.6 1,249.1 Interest (207.2) (239.6) <——— Tax (115.5) (79.1) ———— Cash significant items (61.8) (26.0) Base capital expenditure (603.7) (4418) <——— Movement in working capital ar 1232, <—___ Other (64.3) (635) <——— Operating cash
Slide 58: Management/Statutory Cash Presentation 2006
Management/Statutory Cash Presentation 2006 Management Format Statutory Format PBITDA Interest Tax Cash significant items Base capital expenditure Movement in working capital Other Operating Coatneaam Dividends Divestments Growth Capital/acquisitions Proceeds from share issue Foreign exchange rate c
Slide 59: Working Capital
AMCOR MM Business Group working capital at period end Averape working Capital/Sales ‘AS m z 1400 14 1200 13 1000 12 800 "1 600 400 10 02/03, 03/04 4/05 05/06 02/03 AGAAP, thereafter AIFRS- All operations
Slide 60: Return on Average Funds Employed
Return on Average Funds Employed AMCOR % 14.0 | 9.6% Pre Tax WACC {Target 15% } 12.0 12.0 10.0 8.0 6.0 40 20 02103 03104 04/05 05/06 ‘Bofors Significant amis 02/03 and 03/04 AGAAP: thereafter AIFRS All Operations
Slide 61: PBIT and RoAFE by Operations
eee June 2005 June 2006 PBIT RoAFE PBIT RoAFE Total Operations 821.8 12.0% 775.7 41.3% Discontinued Operations 303 7.6% 276 6.5% Continuing Operations 791.5 12.3% 748.1 11.6%
Slide 62: Capital Structure
Capital Structure AMCOR ASm June 05 June 06 Equity 3,381” 3,572 Convertible Securities 898 464 Net Debt 2,574 2,661 Balance Sheet Capital 6,853 6,697 OBS items* 525 470 Total Capital Mss 7,167 Gearing on Balance Sheet 50.7% 46.7% Gearing + OBS items* 54.2% 50.2% Interest cover: PBITDA** 5.9x 5.1x (1
Slide 63: Financial Summary
Financial Summary + Resilient underlying operating PAT result + Interest expense and cover ratio will improve * Tax rate maintained and sustainable + Cash flow has improved * Working capital performance better + Capital expenditure discipline in place + Gearing at conservative end of target range +
Slide 64: Summary
Summary * Key issues understood + Execution plan established ~ Strategic ~ Operational + Benefits from execution to take time + Stability of earnings and cash flow + Short term negative issues to continue —Input costs + Modest expectations for current year + Substantial upside in earnings and return
Slide 65: Appendices
Slide 66: Reconciling PAT to cash
Reconciling PAT to cas' AMCOR A$ m June 06 Reported PAT after minorities 405.9 Add back minorities 12.1 Significant items before minorities (38.8) Statutory profit 6h Depreciation & amortisation 473.4 a 852.6 Movement in working capital 123.2 Other (net tax, provisions, other) (11.7) Net cash from o
Slide 67: Reconciling statutory PAT to Net Cash From operations
Reconciling statutory PAT to Net Cash From SMCOR. $m 04/05 05/06 Reported PAT (incl SI) — (statutory) 258.4 Depreciation & amortisation 461.9 473.4 Non cash SI 272.6 38.1 Non cash borrowing costs 45 TA Non cash tax (43.1) 67 Other (64.2) (63.6) Movement in WC 47 123.2 Net cash from operations. (stat
Slide 68: Continuing Operations Results
AS m (before significants) June05 June 06 %Change Sales 10,636.0 11,038. 3.4% PBITDA 1,230.9 11999 (2.5) % PBIT 7915 748.1 (5.5) % Borrowing costs (incl PACRS) (212.9) (242.2) (13.8) % PBT 578.6 505.9 (12.6) % Tax and Minorities (139.6) (120.3) 13.8% PAT 439.0 385.6 (12.2) %
Slide 69: Continuing & Discontinued Operations
Continuing & Discontinued Operations AMCOR Profit Closing Cash Notes to & Balance Flow Accounts Loss Sheet Continuing Operations v v x v Discontinued Operations) N/A x v Total — All Operations v v v v ¥ = Disclosures in statutory accounts and press releases x = Not separately identified in statutory
Slide 70: Searchable text section of graphics
Searchable text section of graphics shown above [LOGO] [GRAPHIC] Full Year Results August 2006 www.amcor.com Disclaimer • This presentation contains forward-looking statements that involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of