Slide 1: 2021 Half Year Results
2021 Half Year Results Ron Delia CEO Michael Casamento CFO February 2, 2021 US February 3, 2021 Australia NYSE: AMCR | ASX: AMC
Slide 2: Disclaimers
Disclaimers Cautionary Statement Regarding Forward-Looking Statements This document 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 generall
Slide 3: Safety: Committed to our goal of 'no injuries'
Safety Committed to our goal of ‘no injuries’ Recordable-case frequency rate • Staying safe and healthy – our first (per million hours worked) priority for 2021 fiscal year 4.5 4.1 4.0 4 Acquisition impacts • 29% reduction in number of injuries 3.5 3.4 3.2 compared with 1H20 3 2.6 2.6 2.8 2.4 2.5 2.
Slide 4: Key messages for today
Key messages for today Strong first half, increased guidance and shareholder returns 1. Strong first half result ahead of expectations 2. Raised guidance for fiscal 2021 EPS growth to 10-14% 3. Increased dividend and additional share repurchases 4. The Amcor investment case has never been stronger 4
Slide 5: Global leader in consumer packaging
Global leader in consumer packaging • Founded in Australia in 1860 • NYSE (AMCR) and ASX (AMC) listed • ~$17 bn market cap • FY20 sales of $12.5 bn & Adjusted EBITDA of $1.9 bn • ~230 locations, ~47,000 employees, >40 countries Western Europe Other Other 24% consumer 4% HPC 9% Global reach, Differen
Slide 6: Proven track record of financial performance
Proven track record of financial performance Fiscal 2010 - 2020 >20 +6% +8% +15% YEARS 4.6% Investment Adjusted Adjusted Average TSR grade credit EBITDA EPS CAGR Dividend Yield CAGR rating CAGR (6% DPS CAGR) Notes: 10 year CAGR based on 2010 IFRS results as reported by Amcor in AUD converted at an F
Slide 7: Amcor Shareholder Value Creation Model
7 Amcor Shareholder Value Creation Model Substantial cash flow funds multiple drivers of value for shareholders Capital expenditure (~ $500 m) EPS growth ~ 5-10% SIGNIFICANT Total ANNUAL Acquisitions / (Organic ~ 3-4%) Shareholder Value share repurchases CASH FLOW (~ $300-400 m) (EPS growth + yield)
Slide 8: The Amcor investment case has never been stronger
The Amcor investment case has never been stronger Global industry leader with proven track record and clear strategy Consistent growth from consumer and healthcare end markets Attractive and growing dividend with current yield >4% Strong balance sheet, substantial capacity to invest and many growth
Slide 9: Multiple drivers of organic growth
Multiple drivers of organic growth 1 2 Proactive Mix 3 4 Markets Management Innovation Cost Productivity Growing consumer markets End segments, Products, Differentiated products Scale and capabilities Customers Leadership positions in Growth and margin from higher Delivering innovative, more sustain
Slide 10: Comprehensive sustainability agenda
Comprehensive sustainability agenda Responsible Packaging: Waste Management Packaging Design Waste Management Consumer Participation Infrastructure Full range of sustainable packaging options Leadership roles in partnerships across the value chain Recycle ready 100% recycled Aluminum material Compos
Slide 11: Fiscal 2021 first half result summary
Fiscal 2021 first half result summary Strong result ahead of expectations EPS EBIT EBIT margin Strong cash flow & increasing shareholder returns Quarterly dividend higher than last year at 11.75 US cps +16% +8% +70bps A further $200 million of share repurchases, bringing total announced in fiscal 20
Slide 12: First half result - Flexibles segment
First half result - Flexibles segment 9% Adjusted EBIT growth compared with last year 1H20 1H21 Highlights • Adjusted EBIT growth 9% on a constant currency basis Adjusted EBIT ($m) 602 653 +9% • 4% organic growth Adjusted EBIT margin 12.4% 13.5% • 5% ($30 million) synergy benefits • Higher volumes •
Slide 13: Bemis cost synergies tracking ahead of expectations
Bemis cost synergies tracking ahead of expectations $35 million benefit in first half fiscal 2021 ~$70 million expected in fiscal 2021 (previously $50 to $70 million). Well positioned to deliver total of $180 million Annual cost synergies delivered and expected ($ million) 180 ~70 ~150 ~35 80 Delive
Slide 14: First half result - Rigid Packaging segment
First half result - Rigid Packaging segment 10% Adjusted EBIT growth compared with last year 1H20 1H21 Highlights • Adjusted organic EBIT growth of 10% on a constant Adjusted EBIT ($m) 127 134 +10% currency basis Adjusted EBIT margin 9.5% 9.9% • Higher volumes and positive mix • North America volume
Slide 15: First half results – strong cash flow & shareholder returns
First half results – strong cash flow & shareholder returns Strong cash flow, substantial capacity to invest and increasing shareholder returns Adjusted free cash flow in line with expectations and on Strong investment grade balance sheet and leverage in track to deliver >$1 bn in fiscal 2021 line w
Slide 16: Raised EPS guidance for 2021 fiscal year
Raised EPS guidance for 2021 fiscal year For fiscal 2021 the Company expects: Adjusted constant currency EPS growth of approximately 10 to 14% (previously 7 to 12%) compared to 64.2 cents in fiscal 2020 Assuming current exchange rates prevail for the remainder of the year, it is estimated that curre
Slide 17: Summary
Summary Strong first half, increased guidance and shareholder returns 1. Strong first half result ahead of expectations 2. Raised guidance for fiscal 2021 EPS growth to 10-14% 3. Increased dividend and additional share repurchases 4. The Amcor investment case has never been stronger 17 Note: Refer s
Slide 18: Appendix slides
Appendix slides 2021 First half results – supplementary schedules and reconciliations
Slide 19: FX translation impact
FX translation impact 1H21 currency impact Combined net income currency exposures(1) Total currency impact $ million Adjusted EBIT (9) EUR, 20-30% Adjusted net income (7) EUR:USD Euro strengthened vs USD, USD million impact on Average USD to EUR rate 1H21 1H21 adjusted net income 0.8473 vs 1H20 0.90
Slide 20: Historical growth: Amcor Group, Flexibles, Rigid
Historical Growth SALES Adjusted EBIT Adjusted EPS AMCOR GROUP Sales Price/ EBIT CC Organic EPS CC Growth2 Volume Synergies % CC Growth2 $m Mix $m Growth2 % cps 1H20 6,184 -2% -1% -1% 1H20 699 4% 4% 0% 1H20 29.2 11% 2H20 6,284 1% 1% 0% 2H20 798 9% 7% 2% 2H20 35.0 15% FY20 12,468 0% 0% 0% FY20 1,497
Slide 21: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 21
Slide 22: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 22
Slide 23: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures Reconciliation of adjusted EBIT by reporting segment Tw elv e months ended June 30, 2020 Rigid (1) ($ million) Flexibles Other Total Packaging Net income attributable to Amcor 612 Net income attributable to non-controlling interests 4 (Income) / loss fr
Slide 24: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 24