Slide 1: Half Year Results Investor Presentation
For personal use only Half Year Results Investor Presentation 31 December, 2011 20 February 2012
Slide 2: Disclaimer
Disclaimer For personal use only Forward looking statements 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. F
Slide 3: Half year key messages
Half year key messages For personal use only • World class safety performance • Solid financial performance • EPS up 14.2%(1) • Returns increased to a record 15.1%(1) • Benefits from prior period acquisitions • Interim dividend increased by 6% to 18 cps • $150 million on-market share buy-back comple
Slide 4: Half year results
Half year results For personal use only A$ million Dec 10 Dec 11 % EPS and returns since the Alcan Packaging acquisition 45 15.1 16 40 14 Sales revenue(1) 6,175.3 6,085.3 (1.5) 35 12 R 10.3 30 O PBIT(2) 477.9 515.7 7.9 E 25 10 A P 8 F 20 PAT(2) 267.4 304.7 13.9 S 6 E 15 4 Significant items(3) (41.3
Slide 5: Business Group performance: Flexibles
For personal use only Business Group performance Flexibles PBIT return on sales Euro million Dec 10 Dec 11 % Sales revenue 2,248 2,272 1.1 12 Amcor target range 11% to 12% PBIT 198 246 24.2 10 AFE 2,195 2,195 8 PBIT/AFE % 18.0 22.4 % 6 11.0 - 10.8 11.5 Operating cash flow 109.3 201.6 84.4 4 8.8 7.6
Slide 6: Flexibles – raw material input costs
Flexibles – raw material input costs For personal use only 200 180 Average liquids price trend 160 1.20 140 120 Total basket of raw 100 80 materials costs have 60 40 trended higher during Resins Aluminium 20 1.10 the half year. Modest 0 first half impact on Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09
Slide 7: Flexibles outlook and Rigid Plastics
Flexibles outlook For personal use only • Target PBIT to sales margin of 11% to 12% • FY 2012 expected to be between 11% and 11.5% • If conditions in Europe do not deteriorate further, margins will be towards the middle of the range Margin growth in line with expectations and on track to achieve tar
Slide 8: Rigid Plastics – North America
Rigid Plastics – North America For personal use only Custom Containers Diversified products 3,500 3,158 91 (310) 250 4 231 11 2,939 216 Sales revenue (US$ millions) 3,000 200 2,500 Million units 2,000 150 1,500 100 1,000 50 500 0 0 H1 2011 Acquisitions Other H1 2012 H1 2011 Acquisitions Growth H1 20
Slide 9: Rigid Plastics outlook; Australasia and Packaging Distribution
Rigid Plastics outlook For personal use only • Solid start to the year • Assuming economic conditions remain stable, substantial earnings growth is expected for the 2012 year Earnings growth to continue in the second half 16 Australasia and Packaging Distribution PBIT $A million 120 A$ million Dec 1
Slide 10: Australasia and Packaging Distribution and outlook
Australasia and Packaging Distribution For personal use only • Fibre • Volumes in line with last year • Commissioning of Botany Mill early FY13 • Benefits from Folding Cartons rationalisation • Beverage Can • Record volume performance • Benefiting from capacity addition in NZ • Glass • 3 furnaces op
Slide 11: Half year results December 2011
For personal use only Half year results 31 December 2011 Ron Delia – Executive Vice President Finance Results A$ million Dec 10 Dec 11 Sales revenue 6,175.3 6,085.3 PBITDA 742.0 770.9 PBIT 477.9 515.7 Net interest(1) (105.0) (102.4) Income tax expense and non - (105.5) (108.6) controlling interest P
Slide 12: Significant items and cash flow
Significant items For personal use only A$ million Dec 10 Dec 11 P&L Cash P&L Cash Transaction, synergy and restructuring costs 45.2 50.5 110.5 69.0 ACCC class action 8.7 7.5 1.3 3.9 Other (8.8) 0.2 5.3 1.5 Significant items expense before related income tax benefit 45.1 58.2 117.1 74.4 Income tax b
Slide 13: Working capital performance and cash flow
Working capital performance For personal use only Amcor average working capital to sales (%) 12.9 11.7 Continued opportunities to 9.8 9.8 9.8 10.0 reduce the average working capital to sales ratio 7.2 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 24 Cash flow A$ million Dec 10 Dec 11 Operating ca
Slide 14: Capital structure and debt profile
Capital structure For personal use only A$ million Dec 10 Jun 11 Dec 11 Dec 11 vs • Committed to investment grade rating Jun 11 Funds employed 7,068 6,944 7,022 78 Net debt 3,241 3,195 3,482 287 • No substantial refinancing requirements Equity 3,827 3,749 3,540 (209) until end CY 2012 Gearing (%) 45
Slide 15: Focus turning to growth
For personal use only Focus turning to growth 31 December 2011 Ken MacKenzie – Managing Director and Chief Executive Officer 28 Focus turning to Growth DISCIPLINED GROWTH Customer Innovation Emerging value Excellence Acquisitions markets proposition Superior CAPITAL MANAGEMENT shareholder Strong cas
Slide 16: Customer value proposition; Innovation Excellence
Customer value proposition For personal use only DISCIPLINED GROWTH Customer value Innovation Excellence Acquisitions Emerging markets Continue to improve the customer proposition value proposition • Unique customer insights • Market leading positions • Broad geographic footprint • Organisational ca
Slide 17: Acquisitions and Emerging markets
Acquisitions For personal use only DISCIPLINED Disciplined GROWTH Growth Customer Innovation Emerging Customer value proposition Value Excellence Innovative Excellence Acquisitions Acquisitions markets Emerging Markets Opportunities in all markets & regions Proposition Strong Cash Flow Focus on • Im
Slide 18: Focus turning to growth / Summary
Focus turning to growth For personal use only DISCIPLINED GROWTH Customer Innovation Emerging value Excellence Acquisitions markets proposition Superior CAPITAL MANAGEMENT shareholder Strong cash flow returns with low volatility PROPRIETARY OPERATING MODEL THE AMCOR WAY 34 Summary 31 December 2011 K
Slide 19: Summary
Summary For personal use only • Strong first half result • Profit increased 14% • Increased dividend and share buy-back completed • Benefits from transformational acquisitions continue • Strong cash flow creates options for growing shareholder returns Focused on disciplined growth 36 Appendix slides
Slide 20: Historic performance – Half year sales revenue and PBIT
Historic performance – Half year sales revenue For personal use only (million) Currency Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Flexibles EUR 935 869 869 1,940 2,248 2,329 2,272 Rigid Plastics USD 1,272 1,203 1,064 1,194 1,417 1,693 1,625 Australasia and AUD 1,564 1,421 1,398 1,402 1,470 1,
Slide 21: Historic performance – Half year AFE
Historic performance – Half year AFE For personal use only Average Funds Currency Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Employed (million) Flexibles EUR 1,033 1,009 981 1,463 2,195 2,209 2,195 Rigid Plastics USD 1,655 1,601 1,453 1,460 1,786 1,804 1,798 Australasia and AUD 1,732 1,713 1,5
Slide 22: Rigid Plastics – Historic performance half year
Rigid Plastics – Historic performance half year For personal use only Sales revenue Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 USD million North America 761 763 573 742 916 1,203 1,104 Latin America 469 393 447 395 446 419 460 Bericap 40 43 42 53 52 64 58 BG/India 2 4 2 4 3 7 3 Total 1,272 1,2
Slide 23: Australasia and Packaging Distribution; Botany Recycled Paper Machine
Australasia and Packaging Distribution For personal use only Sales revenue Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 A$ million Fibre 631 593 607 607 603 581 608 Rigids 336 291 328 312 386 329 401 Packaging 597 537 463 483 481 456 470 Distribution Total 1,564 1,421 1,398 1,402 1,470 1,366 1,4
Slide 24: Botany Paper Mill
Botany Paper Mill For personal use only 46 Substantial benefits • Lower costs • Savings of $40 million per annum by year three • Improved paper quality Substantially • Strength, printability, consistency improved value • Light weighting proposition that • New market opportunities creates a different
Slide 25: Sustainability
Sustainability For personal use only • Significantly improved environmental impact • 34% reduction in energy usage • 26% reduction in water usage • 75% reduction in waste to landfill Creates a lower • Less paper for the same performance carbon footprint with • Up to 20% reduction benefits to custome
Slide 26: Investments / Other; Amcor footprint
Investments / Other For personal use only PBIT (million) Currency FY10 H1 11 FY 11 H1 12 AMVIG AUD 31.3 17.1 34.0 15.4 Glass Tubing AUD 4.7 8.5 18.4 - Corporate costs AUD (47.9) (31.6) (72.2) (31.5) Total AUD (11.9) (6.0) (19.8) (16.1) 50 Amcor footprint H1 2012 sales H1 2012 sales Australia, Rigid
Slide 27: Consolidated income statement
Consolidated income statement For personal use only A$ million Dec 10 Dec 11 Sales revenue 6,175.3 6,085.3 PBITDA 742.0 770.9 Depreciation and amortisation (264.1) (255.2) PBIT 477.9 515.7 Net finance costs (105.0) (102.4) Profit before tax 372.9 413.3 Income tax expense (95.3) (97.9) Non-controllin