Amcor Plc · NYSE:AMCR
Amcor — Shareholder Meeting (October 2016)
36 slides from Amcor's shareholder meeting presentation, October 2016
Slide 1: Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016
Slide 2: Chairman
CHAIRMAN Mr Graeme Liebelt
Slide 3: Amcor safety performance
Amcor safety performance • Significant improvement in key metrics over 10 years • 59% of sites recordable case free for a period of 12 months or more • Committed to a goal of ‘no injuries’ 2013 to 2016 data excludes the demerged Australasia and Packaging Distribution (AAPD) business. All prior perio
Slide 4: Full year results – EPS up 11.3% in constant currency terms
Full year results – EPS up 11.3% in constant currency terms Constant US$ million Jun 15 Jun 16 % currency % Profit after tax 671.1 671.1 - 7.5 Earnings per share (US cents per share) 55.8 57.7 3.4 11.3 Free cash flow 298.3 311.2 4.3 Return on average funds employed (%) 20.3 21.6 1.3 Dividend per s
Slide 5: Flexibles
Flexibles • Solid performance through the year • Constant currency earnings growth of 7.2% • Margins remained strong at 12.5% • Returns increased to 25.8% • Stable volumes in developed markets • Strong growth in emerging markets • Investment in growth - 6 acquisitions and 2 greenfield plants 5
Slide 6: Rigid Plastics
Rigid Plastics • Outstanding year • Earnings 10% higher at US$352.5 million • Returns increased from 20.3% to 23.3% • Higher volumes in North America beverage • Growth in Diversified Products, Latin America and Bericap • Investing in growth through acquisitions 6
Slide 7: Strong balance sheet
Strong balance sheet • Balance sheet remains strong • Net debt US$3.8 billion • Net debt / EBITDA 2.6 times • EBITDA interest cover 8.4 times • Well positioned to pursue additional growth 7
Slide 8: Strong returns for shareholders
Strong returns for shareholders • Total Shareholder Return 210% since 1 July 2011 • Share price appreciation 145% • Dividend 65% Based on closing share price of $15.66 on 14 th October 2016 8
Slide 9: Corporate governance
Corporate governance • The Board is committed to achieving and demonstrating the highest standards of corporate governance • Ongoing program of compliance training supporting Amcor’s anti-bribery and corruption policy 9
Slide 10: Sustainability
Sustainability • Met or surpassed our EnviroAction 2015/16 targets • New EnviroAction targets set for 2018/19 • Core Partner of Ellen MacArthur Foundation’s New Plastic Economy Initiative 10
Slide 11: Chairman
CHAIRMAN Mr Graeme Liebelt
Slide 12: Managing Director & CEO
MANAGING DIRECTOR & CEO Mr Ron Delia
Slide 13: Context
Context Global operating Amcor environment position • Increasingly dynamic • Defensive and resilient • Lower growth • High performing • Substantial potential 13
Slide 14: Amcor today
Amcor today Strong foundation • Focused portfolio • Differentiated capabilities • Disciplined cash and capital deployment • Resilient shareholder value creation model 14
Slide 15: Amcor today
Amcor today Strong foundation Current operating priorities • Focused portfolio • Generating our own growth • Differentiated capabilities • Increasing agility and pace of adapting operations • Disciplined cash and capital deployment • Strengthening and engaging our team • Resilient shareholder value
Slide 16: Progress against current operating priorities
Progress against current operating priorities Accelerating improvement opportunities • Generating our own growth • Increasing agility and pace of adapting operations • Flexibles restructuring • Venezuela accounting • Strengthening and engaging our team • Global engagement survey 16
Slide 17: Progress against current operating priorities
Progress against current operating priorities Organic growth - 3 new greenfield plants Flexible Packaging Tobacco Packaging Rigid Plastics 17
Slide 18: Progress against current operating priorities
Progress against current operating priorities Acquisition growth - accelerating and broadening 18
Slide 19: Amcor strategy and growth
Amcor strategy and growth Focused portfolio (product segments) Strong businesses • Primary, consumer packaging • Good industry structure • Attractive growth including in emerging markets 19
Slide 20: Amcor strategy and growth
Amcor strategy and growth Focused portfolio (product segments) Multiple paths to winning • Market leadership • Scale • Differentiation 20
Slide 21: Amcor strategy and growth
Amcor strategy and growth Differentiated capabilities Focused portfolio (product segments) • Competitive advantage • Leverage • Growth and productivity SALES & MARKETING INNOVATION PROCUREMENT TALENT M&A 21
Slide 22: Amcor strategy and growth
Amcor strategy and growth Focused portfolio (product segments) Differentiated capabilities SALES & MARKETING INNOVATION PROCUREMENT TALENT M&A Significant growth opportunities 22
Slide 23: Amcor strategy and growth
Amcor strategy and growth Focused portfolio (product segments) Significant growth opportunities Flexible Packaging – Americas • Differentiates Amcor as the only truly global supplier • Provides potential to grow at rates which exceed the market • Organic and acquisition growth opportunities Signific
Slide 24: Amcor strategy and growth
Amcor strategy and growth Focused portfolio (product segments) Significant growth opportunities Flexible Packaging – Asia • Increasing GDP per capita and demand for packaged goods • Increasing packaging requirements • Amcor unique customer value proposition Significant growth opportunities 24
Slide 25: Amcor strategy and growth
Amcor strategy and growth Focused portfolio (product segments) Significant growth opportunities Rigid plastic specialty containers • Ability to differentiate with broader product offering • Organic growth through conversion from other formats and new product development • Attractive set of acquisiti
Slide 26: Amcor strategy and growth
Amcor strategy and growth Focused portfolio (product segments) Differentiated capabilities SALES & MARKETING INNOVATION PROCUREMENT TALENT M&A Strong defensive cash flow 10 to 15% shareholder value creation per annum 26
Slide 27: Multiple sources of value under resilient model
Multiple sources of value under resilient model Amcor shareholder value creation model Dividend Growth in line with (~$500m) EPS ~ 4% yield Total shareholder Strong, Reinvestment Organic EPS growth value of 10-15% defensive cash (~$400m) of ~ 3-4% per annum with flow low volatility Acquisitions EPS
Slide 28: Amcor tomorrow
Amcor tomorrow Even Stronger More global More relevant More integrated 28
Slide 29: First Quarter Trading
First Quarter Trading
Slide 30: Flexibles
Flexibles • No change to full year earnings expectations for 2016/17 • Growth will be significantly weighted to the second half, with moderate growth in the first half • Volumes in developed markets weaker in Tobacco Packaging as expected • Continued volume growth across emerging markets 30
Slide 31: Rigid Plastics
Rigid Plastics • No change to earnings expectations for 2016/17 • Of the US$40 million negative impact related to Venezuela in 2016/17, US$25 million will impact the first half • Good start to the year in North American beverage, Diversified Products and Bericap businesses • Earnings growth in Latin
Slide 32: Trading summary
Trading summary • First quarter trading in line with expectations. • Reconfirming outlook comments provided in August for 2016/17 • 2016/17 full year earnings to be higher than 2015/16 in constant currency terms 32
Slide 33: Summary
Summary • Amcor in a strong position today • Many opportunities for continued improvement • Focus on creating value for all stakeholders • Delivering strong returns for shareholders 33
Slide 34: Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016
Slide 35: Underlying Results
Underlying Results Statutory result Adjustments(1) Underlying result (US$ million) 2015 2016 2015 2016 2015 2016 Sales revenue 9,611.8 9,421.3 - - 9,611.8 9,421.3 PBITDA 1,420.4 929.7 11.8 (479.6) 1,408.6 1,409.3 - Depreciation and amortisation (355.3) (354.0) - - (355.3) (354.0) PBIT 1,065.1 575.7
Slide 36: Details of adjustments
Details of adjustments US$ million Flexibles Investments / (€ million) Flexibles Rigid Plastics Other Consolidated Income statement 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 Sale of surplus land in Turkey(1) 9.2 11.8 11.8 - Flexibles Restructuring - (85.5) - (94.9) - - - - - (94.9) Change of