Slide 1: Fiscal 2020 year to date results
Fiscal 2020 year to date results (nine months ended March 31, 2020) Ron Delia CEO Michael Casamento CFO May 11, 2020 US May 12, 2020 Australia NYSE: AMCR | ASX: AMC
Slide 2: Disclaimers
Disclaimers Cautionary Statement Regarding Forward-Looking Statements This presentation contains certain statements that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are gene
Slide 3: Safety
Safety Committed to our goal of ‘no injuries’ Recordable-case frequency rate 4.5 4.1 4.0 4 Acquisition impacts 3.5 3.4 • 54% of sites injury free for >12 months 3.3 2.9 3 2.6 2.6 • 8% reduction in number of injuries 2.5 2.4 2.1 2.0 2.0 2.0 2 • Continuing to align safety practices 1.5 1 0.5 0 Notes:
Slide 4: Key messages for today
Key messages for today To our employees around the world: “Thank You!” 1. COVID-19: Well positioned and demonstrating resilience 2. Strong YTD result and increased FY20 outlook 3. Bemis acquisition ahead of Year One expectations 4. Clear visibility to near term shareholder returns 5. Substantial opp
Slide 5: COVID-19: Guiding Principles
COVID-19: Guiding Principles Keeping our employees Contributing to relief Keeping our operations healthy efforts in our communities running Today more than ever, we are reminded that what we do matters 5
Slide 6: Playing a vital role in essential food and healthcare supply chains
Playing a vital role in essential food and healthcare supply chains >95% of sales in consumer end markets Other Other 5% consumer 9% HPC 6% $13 bn FY19 Food Healthcare 44% 12% sales by end market Beverage 24% Note: All amounts referenced throughout this document are in US dollars unless otherwise in
Slide 7: Role of food and healthcare packaging has never been clearer
Role of food and healthcare packaging has never been clearer Preserve food and healthcare products…Protect consumers…Promote brands Hygiene Convenience Automation Increased focus on critical needs 7
Slide 8: Reduced volatility from scale and geographic diversification
Reduced volatility from scale and geographic diversification 250 sites in more than 40 countries North America $13 bn FY19 Western Europe sales by region Australia NZ Asia Latam Eastern Europe ~$3 bn FY19 EM sales Presence in >25 emerging market countries Notes: Reflects FY19 combined sales revenue
Slide 9: Well positioned with financial strength
Well positioned with financial strength Strong and Strong investment grade Sustainable and consistent results balance sheet compelling dividend 3.9X 5.1% 12% Estimated FY20 2.8X 7% 5% 2.0% S&P 500 2.1% 3% Sales EBIT EPS EPS + Amcor Industry average Amcor Industry average dividend Average constant cu
Slide 10: FY20 Q3 trading details
FY20 Q3 trading details Global demand trends continue to evolve Q320 total Q320 volume positives Q320 volume negatives volume growth(1): • North America Flexibles +4% • Flexibles China and India Amcor +2% • Europe Flexibles +1% • Flexibles Latin America & Cartons • Sequential improvement Flexibles •
Slide 11: Fiscal 2020 year to date financial results
Fiscal 2020 year to date financial results (nine months ended March 31, 2020)
Slide 12: FY20 Year to date results
FY20 Year to date results(1) Organic growth and synergy benefits Cash returns to shareholders 44.7 cents $719 m $1,059 m 11.4% $367 m 11.5 cps quarterly dividend +14% +13% +7% +100bps +217 m 52 million (3.2%) shares EPS Net EBIT EBIT Free cash flow repurchased income margin Growth vs prior year (con
Slide 13: FY20 Year to date results - Flexibles segment
FY20 Year to date results(1) - Flexibles segment 7% organic growth in addition to $40 million(2) of synergies Adjusted EBIT ($m) Adjusted EBIT margin Year to date highlights • Adjusted EBIT growth 11.3% • 7% organic growth • $40 million(2) synergy benefits • Volume growth in North America and Europe
Slide 14: Bemis acquisition ahead of expectations
Bemis acquisition ahead of expectations Strategic rationale • Momentum in acquired base business • Integration mostly complete • Timing of first year synergy benefits Global footprint Greater scale Best-in-class capabilities ahead of expectations • $55m YTD(1); $80m FY20; $180m by FY22 • Delivering
Slide 15: FY20 Year to date results - Rigid Packaging segment
FY20 Year to date results(1) - Rigid Packaging segment Returned to EBIT growth in Q3 as expected after cycling a strong H1 comparative Year to date highlights Adjusted EBIT ($m) Adjusted EBIT margin • 4% EBIT growth in Q3 as expected • North America - beverage volume growth 1.7% (hot fill 5% growth)
Slide 16: Cash flow in line with expectations, working capital improved
Cash flow in line with expectations, working capital improved On track to deliver >$1 billion of free cash flow in FY20 Year to date cash flow FY20 • YTD cash flow of $367 million, up $217 million and 3Q19 3Q20 FY19 ($ million) outlook(5) consistent with historic seasonality Adjusted EBITDA 957 1,37
Slide 17: Strong balance sheet and debt profile
Strong balance sheet and debt profile Industry leading, investment grade balance sheet March • Investment grade balance sheet Balance sheet 2020 • S&P: BBB, Moody’s: Baa2 Net debt ($ million) 5,984 Net interest expense ($ million) 140 • Strong balance sheet metrics EBITDA interest cover (x) 10.1 • L
Slide 18: Increased outlook for fiscal year ending June 30, 2020
Increased outlook for fiscal year ending June 30, 2020 The COVID-19 pandemic creates significantly higher degrees of uncertainty and additional complexity with regard to estimating future financial results. Assuming the Company and its supply chain partners and customers are able to continue operati
Slide 19: Near and long term drivers of shareholder value
Near and long term drivers of shareholder value
Slide 20: Consistent shareholder returns
Consistent shareholder returns Near term: controllable drivers of shareholder returns • Defensive organic growth • Sustainable, compelling dividend • $180m synergy benefits • $500m buy-back Longer term: unchanged Shareholder Value Creation Model 20
Slide 21: Sustainability: Responsible packaging is the answer
Sustainability: Responsible packaging is the answer Packaging Waste Consumer design management participation infrastructure Greenhouse gas Recycling emissions* rate (%) Flexible 5 0 packaging PET bottle 7 30 Composite carton 6 10 Aluminium can 27 66 Glass bottle 26 33 21 Source: PTIS Global. *Kg-CO2
Slide 22: Uniquely positioned, fully committed, continuing to invest $50 million
Uniquely positioned, fully committed, continuing to invest 2025 Pledge announced Jan 2018 Targeted investment: Develop all our packaging to be Increase use of post-consumer Collaborate to increase $50 million recycling rates R&D infrastructure, recyclable or recycled content worldwide manufacturing
Slide 23: Summary
Summary To our employees around the world: “Thank You!” 1. COVID-19: Well positioned and demonstrating resilience 2. Strong YTD result and increased FY20 outlook 3. Bemis acquisition ahead of Year One expectations 4. Clear visibility to near term shareholder returns 5. Substantial opportunities to c
Slide 24: Appendix slides: Amcor profile
Appendix slides Amcor profile
Slide 25: Amcor Strategy
Amcor Amcor Strategy profile Our businesses FOCUSED PORTFOLIO: Flexible Packaging Rigid Packaging Specialty Cartons Closures Our differentiated capabilities THE AMCOR WAY: Our winning aspiration Significant THE leading growth opportunities global packaging company WINNING FOR CUSTOMERS, EMPLOYEES, I
Slide 26: Global leader in primary consumer packaging
Amcor Global leader in primary consumer packaging profile • Founded in Australia in 1860 - NYSE (AMCR) and ASX (AMC) listed • $13 bn sales with ~250 plants, ~50,000 employees, 40+ countries • Global leader in flexible and rigid consumer packaging Global Scale Innovation Sustainability Strong Reach P
Slide 27: Scale position in every region
Amcor Scale position in every region profile 27% Rigid Packaging North America #1 Flexibles 46% Flexibles #1 FY19 EMEA North America #1 3% sales mix Flexibles #1 Asia Pacific 24% Rigid Packaging Latin America #1 Flexibles North America Western Europe Latin America #1 ANZ Emerging Markets Specialty C
Slide 28: Focused global portfolio
Amcor Focused global portfolio profile $13bn combined sales by product type, end market and geography Closures Other Australia Specialty 3% 14% & NZ Emerging cartons 3% markets 9% Western HPC Europe 27% 6% 24% Flexible Food Rigid packaging packaging product 44% 21% 67% Healthcare end market geograph
Slide 29: Amcor Flexibles overview
Amcor Amcor Flexibles overview profile Combined sales by Combined sales by region end market Latin America, Other 11% consumer, Europe, 17% Middle East and Home & Africa, Personal care, 6% 38% North Beverage, America, Food, 54% 8% 36% Asia Healthcare Pacific, , 15% 15% Europe, Middle East and Africa
Slide 30: Amcor Rigid Packaging overview
Amcor Amcor Rigid Packaging overview profile Sales by geography Sales by product category 19% 6% 14% 29% 28% North 13% America Latin America $2.3 bn $0.6 bn sales sales 73% 81% 37% North America Latin America Cold fill beverage Hot fill beverage Specialty containers Closures 2019 Sales 2019 Adjusted
Slide 31: North America Beverage – market share by package format
Amcor North America Beverage – market share by package format profile PET containers maintaining share in modestly growing North American market Non-alcoholic LRB retail sales by package format 57.5% 56.9% 57.5% 56.2% 57.8% 54.7% 54.9% 55.5% 53.3% 53.1% 52.9% • North American LRB market growth • 1.1
Slide 32: Appendix slides: Sustainability
Appendix slides Sustainability
Slide 33: Our Sustainability “Point of View”
Our Sustainability “Point of View” Sustainability There will always be a Requirements of packaging are Responsible packaging Amcor is uniquely role for packaging increasing: end of life solutions / is the answer positioned and taking waste reduction are critical action to lead the way Consumers want
Slide 34: There will always be a role for packaging
Sustainability There will always be a role for packaging Extending shelf life Reducing food waste Protecting the environment Food waste accounts for Refrigerated Shelf Life in days Lettuce 2-4 14 30% of food is wasted globally 8% of global GHG emissions Fresh 2-3 Alternative Plastic Grams of red mea
Slide 35: Requirements are increasing: end of life solutions are critical
Sustainability Requirements are increasing: end of life solutions are critical Consumers buying more Small price to pay environmentally friendly products Today vs 5 years ago 72% <1cent US cents per bottle Next 5 years 81% or 0.45% retail price 66% of global consumers (76% of millennials) ~1cent US
Slide 36: Responsible packaging is the answer
Responsible packaging is the answer Packaging Waste Consumer design management participation infrastructure Greenhouse gas Recycling emissions* rate (%) Flexible 5 0 packaging PET bottle 7 30 Composite carton 6 10 Aluminium can 27 66 Glass bottle 26 33 36 Source: PTIS Global. *Kg-CO2 equivalent, ‘00
Slide 37: Uniquely positioned and taking action: Innovation
Sustainability Uniquely positioned and taking action: Innovation Lighter Weight Recyclable 37
Slide 38: Uniquely positioned and taking action: Innovation
Sustainability Uniquely positioned and taking action: Innovation Recycled content Light Weight Recyclable 100% PCR 21gr 18gr 38
Slide 39: Uniquely positioned and taking action: Innovation
Sustainability Uniquely positioned and taking action: Innovation Existing product Conversion from Brand relaunch in now 100% recycled glass to 100% PET PET recycled PET Continued innovation: >200k tonnes less virgin resin used p.a. by 2025 Effective markets: >1 million tonnes recycled resin demand c
Slide 40: Uniquely positioned and taking action: Collaborating and informing
Sustainability Uniquely positioned and taking action: Collaborating and informing Bilateral top-to-top customer summits 40
Slide 41: Fiscal 2020 YTD results – supplementary schedules and reconciliations
Appendix slides Fiscal 2020 YTD results – supplementary schedules and reconciliations
Slide 42: Bemis acquisition: On track for $80m of synergies in FY20
Bemis acquisition: On track for $80m of synergies in FY20 Year to date cost synergies of ~$55(1) million; Integration progressing well and continue to expect $180 million(2) by end of fiscal 2022 Expected from the following areas: Estimated realization ($m): 40% 100% 180 130 20% 80 40% 55 55 55 Proc
Slide 43: FX translation impact
FX translation impact YTD currency impact Combined net income currency exposures(1) Total currency impact $ million Adjusted EBIT (17) EUR, 20-30% Adjusted net income (13) EUR:USD Euro weakened vs USD, Average USD million impact on YTD USD to EUR rate YTD20 0.9032 vs adjusted net income YTD19 0.8721
Slide 44: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures (1) Includes costs associated with the Bemis acquisition. The nine months ended March 31, 2020 includes $58 million of acquisition related inventory fair value step-up recognized in the September 2019 quarter. 44 (2) The nine months ended March 31, 2020
Slide 45: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 45
Slide 46: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures (1) Other includes equity in income (loss) of affiliated companies, net of tax and general corporate expenses. (2) Includes costs associated with the Bemis acquisition. The nine months ended March 31, 2020 includes $58 million of acquisition related inv
Slide 47: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 47