Amcor Plc · NYSE:AMCR
Amcor — Non-Deal Roadshow (August 2019)
35 slides from Amcor's roadshow presentation, Aug 30, 2019
Slide 1: Amcor Investor Presentation
30 AUGUST 2019 Amcor Investor Presentation Amcor plc (NYSE: AMCR; ASX: AMC) will be hosting investor meetings in North America and Asia in the coming weeks. The FY19 full year result presentation will be used during these meetings and is attached for information. ENDS For further information please
Slide 2: About Amcor
About Amcor Amcor is a global leader in developing and producing responsible packaging for food, beverage, pharmaceutical, medical, home- and personal-care, and other products. Amcor works with leading companies around the world to protect their products and the people who rely on them, differentiat
Slide 3: Amcor Investor Presentation September 2019
Amcor Investor Presentation September 2019 NYSE: AMCR | ASX: AMC
Slide 4: Disclaimers
Disclaimers Cautionary Statement Regarding Forward-Looking Statements This presentation contains certain statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act
Slide 5: Safety: Committed to our goal of 'no injuries'
Safety Committed to our goal of ‘no injuries’ Lost-time frequency rate Recordable-case frequency rate 6 29% fewer LTI’s than 2018 25% fewer RC’s than 2018 5.1 1.40 5 1.2 Acquisition 1.20 impact 4.1 4.0 1.0 4 Acquisition 1.00 3.4 impact 0.9 0.9 0.8 0.8 0.8 3 0.80 2.6 2.6 0.7 2.4 0.6 0.6 2.0 2.0 2.1 0
Slide 6: Key messages for today
Key messages for today Transformational 2019 financial year 1. Bemis acquisition completed 2. Base business performing well with momentum heading into 2020 3. Visibility to near term earnings growth 4. Uniquely positioned for the long term 4
Slide 7: 2019 full year results
2019 full year results
Slide 8: Full year adjusted financial results
Full year adjusted financial results(1) Solid adjusted earnings growth and shareholder returns $9.5 bn $1,075 m 11.4% $730 m Cash flow and shareholder returns $193m Cash flow after dividends +5.5% +5.7% +10 bps +9.0% Sales EBIT EBIT Net 45.5 cps $500m margin income annual share buy dividend back Gro
Slide 9: Flexibles segment
Flexibles segment Sales growth across the segment and lower costs Sales (1)(USD m) Adjusted EBIT(1) Adjusted EBIT (USD m) margin(1) 6,567 817 6,535 801 12.3% 12.4% • Sales growth in global healthcare and emerging markets • EBIT growth from businesses acquired in prior periods • Strong operating cost
Slide 10: Rigid Packaging segment
Rigid Packaging segment Beverage volume growth and favourable product mix Sales (1) (USD m) Adjusted EBIT(1) Adjusted EBIT (USD m) returns(1) (2) 2,893 308 298 16.2% 16.8% 2,788 • Volume and mix benefits in North America • Volume growth in Latin America • Benefits from previously announced restructu
Slide 11: Cash flow
Cash flow Strong cash generation Average Cash flow ($ million) Jun 18 Jun 19 working capital Net cash provided from operating activities 871.4 776.1 to sales(2) Capital expenditure (365.0) (332.2) Proceeds from asset sales 137.0 84.7 Material transaction related costs - 204.8 Adjusted free cash flow
Slide 12: Balance sheet
Balance sheet Strong balance sheet with capacity for growth Balance sheet(1) Jun 18 Jun 19 Net debt ($ million) 4,228 5,502 • Refinancing activities took place ahead of the Adjusted net finance costs ($ million) 196.9 191.1 Bemis transaction close • Outcome will result in a reduction in combined net
Slide 13: Uniquely positioned for the long term
Uniquely positioned for the long term
Slide 14: Amcor Strategy
Amcor Strategy 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, INVESTORS AND T
Slide 15: Capital allocation framework
Capital allocation framework Amcor Shareholder Value Creation Model Dividend (~ USD 750m) Historical yield of ~ 4% Strong, Total shareholder defensive cash Reinvestment Organic EPS growth value of 10-15% per (~ USD 500m) of ~ 3-4% annum with low flow volatility Acquisitions and/or buy-backs EPS grow
Slide 16: Bemis acquisition: strategic rationale
Bemis acquisition: strategic rationale Stronger value proposition for customers, employees Global and the environment Best-in-class footprint capabilities Flexibles Europe Flexibles North America $3.3bn sales Commitment to Greater scale environmental $3.3bn sales sustainability Flexibles Asia $1.3bn
Slide 17: Bemis acquisition: Cost synergies
Bemis acquisition: Cost synergies On track to deliver $180 million(1) by end of year three Generated from the following areas: Estimated realization ($m): 40% 100% 180 • Total cost synergy target and timing of 130 benefits reaffirmed. Since 11 June 20% • Quick wins identified across direct and indir
Slide 18: Redeployment of $550 million divestment proceeds
Redeployment of $550 million divestment proceeds $500 million share buy-back • Repurchase of ~ 3 percent of shares • NYSE and ASX shares repurchased in proportion to mix of shares on issue • Intend to commence repurchasing in the coming weeks $50 million strategic investments To further accelerate p
Slide 19: Sustainability: Capturing the opportunity
Sustainability: Capturing the opportunity Requirements of There will always be a packaging are increasing: Amcor is uniquely Responsible packaging is role for packaging end of life solutions / waste positioned to lead the the answer reduction are critical way Consumer packaging Belief in responsible
Slide 20: Sustainability: Momentum accelerating into 2020
Sustainability: Momentum accelerating into 2020 Amcor’s 2018 pledge Enhanced capabilities Global centre Develop of excellence all our packaging to be network recyclable or reusable by 2025 Increase use of post-consumer Broad approach to development of responsible packaging recycled content Collabora
Slide 21: Guidance for 2020 fiscal year
Guidance for 2020 fiscal year Approach to guidance for FY20 and investor communications going forward • Given FY2020 is a transition year (conversion to US GAAP, Bemis acquisition, divestments, balance sheet refinancing), additional guidance metrics have been provided for this year • Investor commun
Slide 22: Summary
Summary Long term potential of Amcor remains substantial • Transformative year in 2019 • Momentum continuing into 2020 • Bemis integration and synergy capture underway • Substantial long term potential 20
Slide 23: Supplementary information
Supplementary information
Slide 24: Amcor: Global leader in consumer packaging
Amcor: Global leader in consumer packaging 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 Car
Slide 25: Focused global portfolio profile
Amcor Focused global portfolio profile USD 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 67% Healthcare end market 44% geography
Slide 26: Amcor Flexibles overview
Amcor Amcor Flexibles overview profile Combined sales by Combined sales by region end market 11% 17% 38% 6% 36% 8% 54% 15% 15% Europe, Middle East and Africa Food Healthcare Asia Pacific Beverage North America Home & Personal care Latin America Other 2019 combined 2019 combined Plants Countries Empl
Slide 27: 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 USD 2.3bn USD 0.6bn sales sales 73% 81% 37% North America Latin America Cold fill beverage Hot fill beverage Specialty containers Closures 2019 Sales 2019 Adju
Slide 28: North America beverage
Amcor North America beverage profile North America Amcor Rigid Packaging – FY19 beverage market volume mix – FY19 100% 8% 2% 90% 80% 70% 60% 45% 50% 40% 55% 30% 20% 10% 0% ARP volumes ARP margin Source: IRI Still water All other All Other NA Still water 26
Slide 29: 2019 Full Year Results appendix
2019 Full Year Results appendix 20 August 2019 US NYSE: AMCR | ASX: AMC 21 August 2019 Australia
Slide 30: Presentation of financial results
Presentation of financial results 1. Statutory U.S. GAAP 2. Adjusted Statutory results presented under US GAAP include: Provides an understanding of the operating performance of • Amcor result for 12 months the business and the focus for today’s discussion. Includes: • Bemis result for 20 days from
Slide 31: Reporting segments
Reporting segment alignment AMCOR LIMITED AMCOR PLC BEMIS US packaging Flexibles Flexibles Latin America Packaging Reporting segments Rest of World packaging Rigids Packaging Rigid Packaging Total segment result Corporate costs General Corporate AMVIG Other P&L expenses Combined result 29
Slide 32: FX translation impact
FX translation impact FY19 currency impact Combined net income currency exposures(1) Total currency impact USD million Adjusted EBIT (41) Adjusted net income (30) EUR, 20-30% EUR:USD Euro weakened vs USD. Average USD million impact on USD(2), USD to EUR rate FY19 0.8767 vs adjusted net income for FY
Slide 33: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures Reconciliation of adjusted Earnings before interest, tax, depreciation and amortisation (EBITDA), Earnings before interest and tax (EBIT), Net income and Earnings per share (EPS) Year ended 30 June 2018 Year ended 30 June 2019 Net EPS Net EPS (USD milli
Slide 34: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures Reconciliation of adjusted EBIT by segment Year ended 30 June 2018 Year ended 30 June 2019 Rigid Rigid Flexibles Other(1) Total Flexibles Other(1) Total (USD million) Packaging Packaging Net income attributable to Amcor 575.2 430.2 Net income attributab
Slide 35: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures Reconciliation of free cash flow and adjusted free cash flow (USD million) 30 June 2018 30 June 2019 Net cash provided from operating activities 871.4 796.1 Net capital expenditure (228.0) (247.5) Material transaction related costs(1) - 204.8 Adjusted f