Slide 1: Amcor
Amcor Ron Delia, Executive Vice President Finance
Slide 2: Disclaimer
Disclaimer 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. Forward-looking stateme
Slide 3: Amcor Safety Performance
Amcor Safety Performance RCFR LTIFR 12 10.2 3 • World class safety performance 10 8.4 2.5 • LTIFR at 0.8 2.4 7.4 8 2 1.9 • Recordable frequency rate at 3.2 6 5.1 1.5 1.6 4.1 4.0 3.1 3.2 • Improvement of 69% over past 7 years 4 1.2 1 0.9 0.8 0.8 2 0.7 0.5 0 0 RCFR LTIFR *Six months ended 31 December
Slide 4: Half year results
Half year results • Strong earnings growth A$ million Dec 11 Dec 12 % • Improved shareholder returns Sales revenue 6,085.3 6,034.9 (0.8) • Solid volumes PBIT 515.7 531.1 3.0 • Stable underlying volumes in developed markets PAT 304.7 322.0 5.7 • Growth in emerging markets Significant items (99.8) (8
Slide 5: Flexibles margin expansion
Flexibles margin expansion 12 Flexibles EBIT margin 10 11.1% Opportunities for further % Ebit return on sales margin expansion within 8 the Flexibles business • Simplification and 6 standardisation 6.0% • Faster growth in high 4 performance products 2 Alcan Amcor • Drive innovation as a key value di
Slide 6: Rigid Plastics earnings and returns
Rigid Plastics earnings and returns 300 18 280 15.5% 16 13.3% Targeted growth in 260 13.2% 14 attractive 240 11.5% 12 markets/segment % RoAFE 220 • Diversified Products US$m 10 200 8 • Innovation leadership 180 & manufacturing 6 160 excellence 140 4 • Broad range of 120 2 technologies, materials 100
Slide 7: Transformation of Australian business
Transformation of Australian business • The Australasian business has been transformed over a number of years: • More focused business portfolio • Built capabilities – “The Amcor Way” • Invested to strengthen core business – Organic growth – Step change in recycled paper manufacture – Acquisitions •
Slide 8: Broad diversification in 2006
Broad diversification in 2006 Segment Plants People Beverage cans 6 Glass 1 Aerosols 2 Metal cans 5 PET 2 Plastic and metal closures 1 Sacks 3 Cartonboard 1 Cartons 8 Corrugated (incl paper) 22 Flexibles 10 65 6,500 Diversification not sustainable in the face of changing operating environment 8
Slide 9: Focused and strengthened businesses
Focused and strengthened businesses Define and focus on core businesses Invest to strengthen core businesses Divest Metal Can Close Petrie Organic growth PET Plastic closures • Third glass furnace • NZ Can line Aerosol Spearwood mill Step change in recycled paper Metal closures F6, B7, B8 • State of
Slide 10: Strong, well positioned core businesses
Strong, well positioned core businesses Segment Position Plants Market Market position share (top 2) Beverage Cans 6 #1 100% Glass 1 #2 87% Wine closures 1 #2 93% Paper & Recycled paper 1 #2 93% recycling Recycling Fibre Corrugated 12 #2 82% packaging Cartons & Folding cartons 4 #1 56% Sacks Sacks 1
Slide 11: Significant Australasian earnings growth opportunities
Significant Australasian earnings growth opportunities* Segment Position PBIT A$ million Botany recycled paper mill Cost savings 50 Petrie Plant closure 13 Thomastown Plant closure 5 68 • Further upsides • Improved recycled paper quality • Organisational alignment opportunity Substantial benefits fr
Slide 12: EPS growth now driven by disciplined cash deployment
EPS growth now driven by disciplined cash deployment 1800 1600 1400 FY2013 + • Global leadership positions A$m PBITDA 1200 • Improved industry structure 1000 FY 2010 - 2012 • Higher margins and returns 800 Jun 08 – Dec 09 Step up in margins and Defensive earnings returns via industry Has resulted in
Slide 13: Focused on disciplined growth
Focused on disciplined growth Disciplined growth Customer Innovation Emerging Value Acquisitions Excellence Markets Proposition Capital management Strong cash flow Superior shareholder The Amcor Way operating model returns with low volatility Outperformance 13
Slide 14: Focused on disciplined growth
Focused on disciplined growth Disciplined growth Customer Innovation Emerging Value Acquisitions Excellence Markets Proposition Capital management Strong cash flow Superior shareholder The Amcor Way operating model returns with low volatility Outperformance 14
Slide 15: Shorewood acquisition
Shorewood acquisition Manufacturing facilities • Improves global footprint • Assets in South Korea, China, USA and Mexico North America Asia – Expands position in Asia – Builds position in Mexico – Improves cost position in USA Sacheon-Si, • Strong returns of more than 20% Danville, VA Korea • US$11
Slide 16: Emerging markets sales 18% CAGR since 2000
Emerging markets sales 18% CAGR since 2000 H1 13 % of Business Group sales H1 13 emerging markets sales in Emerging markets by region 35% 30% 29% Asia* 30% Eastern 31% 25% Europe & Russia 20% 32% 15% 10% 5% Latin America 0% 37% Rigid Plastics Flexibles* CAGR 2000-2013 CAGR 2000-2013 Asia (Flexibles)
Slide 17: Packaging spend accelerates as wealth increases
Packaging spend accelerates as wealth increases Predominantly: Asia South America Switzerland Germany UK Eastern Europe / Russia Packaging spend per Australia US Japan Hungary Poland Chile capita Bulgaria South Africa Turkey Serbia Brazil Predominantly: Predominantly: Mexico Romania North America Af
Slide 18: Consistent growth, low volatility and strong TSR
Consistent growth, low volatility and strong TSR • Organic growth 3-4% per annum • Benefits over the next two years from completed capital projects and acquisitions • Recycled paper mill • Shorewood and Aperio acquisitions • Progressive dividend policy – up 8% H1 13 • Strong growth in cash flows cre
Slide 19: Amcor
Amcor Ron Delia, Executive Vice President Finance