Orora Limited · ASX:ORA
Orora — Investor Presentation (November 2013)
29 slides from Orora's investor presentation, November 2013
Slide 1: Orora Investor Briefing
Orora Investor Briefing November 2013
Slide 2: Contents
Contents • The demerger of Orora Limited • About Orora Limited • Strategic Direction of Orora • Orora Leadership • Board & Management Teams • Summary Orora Ltd 2
Slide 3: The demerger of Orora Limited
The demerger of Orora Limited The steps to the demerger 3
Slide 4: Demerger to be completed this calendar year
Demerger to be completed this calendar year Event Date Announced intention to demerge 1 August 2013 Scheme Booklet lodged with ASX 1 November 2013 Scheme and General Meeting (SGM) 9 December 2013 Demerger effective date (last date Amcor shares will trade cum-entitlement) 17 December 2013 Orora share
Slide 5: About Orora Limited
About Orora Limited The newest global packaging brand 5
Slide 6: Orora is set up for success
Orora is set up for success • Strong, well-positioned core business • Focused portfolio & good industry structures • Stable, defensive earnings streams • Experienced Board & Executive Team with track record of performance • Cost reduction opportunities a key factor in expected near term earnings gro
Slide 7: The Orora Limited Group – A focused company
The Orora Limited Group – A focused company Orora Australasia 26 Plants 25 Distribution Sites 2 Countries FY13 Revenues $2,895 million Employees 5,700 Countries 7 Orora Packaging Distribution 10 Plants 54 Distribution Sites Orora Ltd 7 5 Countries
Slide 8: A market leader across Australasia
A market leader across Australasia Orora Australasia Scale Market 26 Plants Segment Position Plants Position 25 Distribution Sites 2 Countries Cans 6 #1 Beverage Glass 1 #2 Wine Closures 1 #2 Paper Recycled Paper 1 #2 Fibre Corrugated 12 #2 Packaging Cartons & Folding Cartons 4 #1 Sacks Sacks 1 #1 F
Slide 9: An emerging leader in North America
An emerging leader in North America Segment Sites Distribution 54 Manufacturing (Corrugators & box plants) 10 Orora Packaging Distribution FY13 Revenues $1,007 million 10 Plants 54 Distribution Sites Employees 1,900 5 Countries Countries 5 FY13 Sales by Division FY13 Sales by Region Distribution Man
Slide 10: Orora's Strategic Direction
Orora’s Strategic Direction Continued commitment to a proven, value-creating strategy
Slide 11: Focused portfolio & market leading positions
Focused portfolio & market leading positions • Orora has a focused portfolio with a strategy of targeting business segments where it has a leading position • Since 2006, Orora's Australian footprint has been reduced from 65 to 26 scale plants Defining and focusing on core businesses since 2006 2013
Slide 12: Well invested businesses
Well invested businesses Organic Growth • Third glass furnace (commissioned FY11) • NZ can line (commissioned FY12) World class recycled paper mill • >$500 million investment • $50 million cost reduction opportunity over next few years Strategic Acquisitions – close to the core “bolt-ons” • Smithfie
Slide 13: Significant "self help" earnings growth potential
Significant “self help” earnings growth potential Short to medium term priority is to deliver on the substantial cost reduction benefits over the next few years Remaining cost reduction Net cash spend Total cost Cost reduction benefit benefits expected to be remaining A$ million reduction benefit ac
Slide 14: Strong Operating Cash Flow
Strong Operating Cash Flow Operating cash flow to enhance shareholder value: Base Operating Cash Flow (A$m) (1) • Stable earnings streams with exposure to defensive end markets • Significant capital invested in recent years 127 143 160 • Proposed 60% - 70% dividend payout policy (franked as practica
Slide 15: Returns focused capital management
Returns focused capital management Total Debt Facility $1,100 million • Orora established with a strong balance sheet Net debt on demerger $700 million • Pro forma FY13 leverage – 2.9x EBITDA Drawn debt on demerger $725 million • Pro forma FY13 gearing - approx. 35% Undrawn Capacity $375 million • F
Slide 16: Shareholder Value Creation
Continued commitment to a proven strategy Significant Strong Returns Well invested “self help” Focused portfolio operating focused capital businesses earnings cash flow management opportunity Shareholder Value Creation • Multi-year • Investment for growth • B9 benefits • Stable earnings • Sustainabl
Slide 17: Orora Leadership
Orora Leadership Board & Management Teams 17
Slide 18: Experienced Board led by Chris Roberts
Experienced Board led by Chris Roberts Chris Roberts • Current Chairman of Amcor Limited Independent Non- • Substantial knowledge of fast moving consumer products, gained through Executive Director & executive roles in Australia, New Zealand, the United Kingdom & Indonesia Chairman • Former position
Slide 19: Continue to be led by strong Executive Team
Continue to be led by strong Executive Team Managing Director & CEO Nigel Garrard Company Procurement Secretary / Packaging Paper & Cartons & Finance HR Strategy & Supply Corrugated Beverage General Distribution Recycling Sacks Chain Counsel Stuart Amanda Ann David Craig Bernie Sonny Rick Brian Davi
Slide 20: Summary
Summary 20
Slide 21: Orora is set up for success
Orora is set up for success • Strong, well-positioned core business • Focused portfolio & good industry structures • Stable, defensive earnings streams • Experienced Board & Executive Team with track record of performance • Cost reduction opportunities a key factor in expected near term earnings gro
Slide 22: Appendix
Appendix 22
Slide 23: Overview of Orora Limited businesses
Overview of Orora Limited businesses Australasia Packaging Distribution Pro Forma Revenue A$1,888m A$1,007m Pro Forma PBITDA A$193m1 A$52m Pro Forma PBIT A$106m1,2 A$44m Manufacturing plants 26 10 Countries 2 5 Employees 3,800 1,900 Fibre Beverage Packaging Distribution • The Fibre operating divisio
Slide 24: Orora Australasia
Orora Australasia Overview Sales breakdown • A portfolio of scale businesses with leading positions in their Fibre Beverage Australia New Zealand respective markets 36% 64% 13% 87% • Predominantly services the defensive food and beverage segments • 3,800 employees across 26 plants and 25 distributio
Slide 25: Orora Packaging Distribution
Orora Packaging Distribution Overview Sales breakdown • Packaging Distribution is a large North American packaging Distribution Manufacturing North America Other distributor, headquartered in Buena Park, California 14% 3% • Comprises 10 manufacturing plants and 54 distribution sites 86% 97% and 1,90
Slide 26: Historical financials
Historical financials Pro Forma Revenue (A$m) 1,888 1,007 1,879 2,895 2,823 944 1,836 938 2,774 FY11 FY12 FY13 FY11 FY12 FY13 FY11 FY12 FY13 Australasia Packaging Distribution Orora Pro Forma PBIT (A$m) 106 154 104 50 4 4 150 99 46 4 44 145 102 100 95 FY11 FY12 FY13 FY11 FY12 FY13 FY11 FY12 FY13 Aus
Slide 27: Historical Income Statement
Historical Income Statement Year ended 30 June Year ended 30 June Year ended 30 June $m 2011 2012 2013 Pro forma revenue1,2 Australasia 1,836 1,879 1,888 Packaging Distribution 938 944 1,007 Demerger Adjustments3 - - - Total 2,774 2,823 2,895 Pro forma PBITDA1,2 Australasia 196 209 210 Packaging Dis
Slide 28: Historical operating cash flows
Historical operating cash flows Year ended 30 June Year ended 30 June Year ended 30 June $m 2011 2012 2013 Pro forma PBITDA 236 252 245 Other non-cash items included in Pro Forma PBITDA 22 2 15 Change in working capital and other (36) (33) (47) Capital expenditure excluding B9 (95) (78) (53) Base op
Slide 29: Disclaimer
Disclaimer This presentation has been prepared by Amcor Limited (Amcor) in connection with the proposed demerger of Orora Limited (Orora) from Amcor (Demerger). It should be read in conjunction with the Demerger Booklet that was released to ASX on 1 November 2013 and which can be found on the Amcor