Amcor Plc · NYSE:AMCR
Amcor — Investor Presentation (October 2006)
34 slides from Amcor's investor presentation, Oct 6, 2006
Slide 1: www.amcor.com
www.amcor.com
Slide 2: Analyst Presentation October 6, 2006
ANALYST PRESENTATION October 6, 2006
Slide 3: Today's Agenda
TODAY’S AGENDA 1. AMCOR Sunclipse Overview 2. Kent H. Landsberg • Montebello Facility Tour 3. St. Hart Container Tour 4. AMCOR Sunclipse • Tour • Lunch • Business Presentation 5. Adjourn – 1-1:30pm 6. Return to Marina Del Ray
Slide 4: Presentation Overview
PRESENTATION OVERVIEW • Safety • Business Overview • Market Information • Target Marketing – KHL Engineered Packaging Solutions • Execution • Strategic Initiatives • Key Success Factors • Summary
Slide 5: Safety LTI & RC Frequency Rates
Safety LTI & RC Frequency Rates LTIFR - Days RCFR - Days 5 10 4 8 3 6 2 4 1 2 0 0 Actual Actual Actual Actual Budget 02/03 03/04 04/05 05/06 06/07 LTIFR RCFR Target - LTIFR = 0.5 & RCFR = 2.5
Slide 6: Business Overview: Three Business Groups
Business Overview Three Business Groups 1. Corru-Kraft • Corrugated Manufacturing 2. Manufactured Packaging Products • Box making • Printing • Re-Distribution 3. Industrial Distribution • Packaging • Industrial Supplies
Slide 7: Business Model
Business Model Kent H. Corru-Kraft Sheet Landsber C Plants U g S T O Corrugator Sheet Plant Distribution M Competitor Competitor Competitor E R Sells To Buys From
Slide 8: Analyst Presentation October 6, 2006
ANALYST PRESENTATION October 6, 2006
Slide 9: Presentation Overview
PRESENTATION OVERVIEW • Safety • Business Overview • Market Information • Target Marketing – KHL Engineered Packaging Solutions • Execution • Strategic Initiatives • Key Success Factors • Summary
Slide 10: Organizational Structure
Organizational Structure Amcor Sunclipse North America Sales $965M Corrugators MPP Distributors 254 Co-Workers 648 Co-Workers 1,173 Co-Workers Corru Kraft II Mercury Die & Container KHL Montebello KHL San Diego KHL Hayward KHL Inland Empire Mission Corrugated St. Hart Container KHL San Jose KHL Sacr
Slide 11: Locations
Locations 12 Plants 37 Distribution Centers 2 Countries Annual Sales $965M Corrugator Plants Manufactured Products Distribution Sites
Slide 12: Market Overview
Market Overview
Slide 13: Corrugated Manufacturing Market
Corrugated Manufacturing Market California National CorruKraft 8.0% (4) CorruKraft 1% 38 Integrateds Other 16 Independents 99.0% Other 92.0% 50B Sq ft 400B Sq ft
Slide 14: Manufactured Packaging Products Market
Manufactured Packaging Products Market California MPP 4.4% OCC 2.0% Integrateds 75% Weyerhaeuser International Paper Temple Inland Smurfit Stone Packaging Corporation of America Georgia Pacific 50B Sq ft
Slide 15: Market Share - Distribution
Market Share - Distribution US Packaging Wholesale/Distribution Market 11.1% 9.1% 6.8% 2.4% 1.7% 1.2% 1.1% 0.81% 0.68% 0.62% 0.45% 0.37% 63.6% 1) Unisource 2) Xpedx 3) Bunzl 4) KHL 5) Victory Pkg 6) Stephen Gould 7) Uline 8) Tharco 9) SupplyOne 10) Pollock Pkg 11) Pioneer Pkg 12) Crown Pkg Other (+/
Slide 16: Key Market Segments
Key Market Segments Growth Base • Manufacturing …………………………………. • Contract Packaging…………………………… – Outsourcing of packaging operations is growing at an annual rate of 15% • Warehousing/Shipping……………………….. • Small Businesses……………………………... • Global Businesses……………………………. • Food & Flexible Packaging……………
Slide 17: Food Packaging
Food Packaging AMCOR
Slide 18: Target Marketing
Target Marketing Food & Flexibles 2.5% Food & Flexibles 13% Cushioning Cushioning Boxes Boxes Industrial Supplies Industrial Supplies Shipping Supplies Shipping Supplies Other 87% Other 97.5% Kent H. Landsberg Total Distribution Revenue
Slide 19: Engineered Packaging Growth & Integration
Engineered Packaging Growth & Integration Leveraging the Channel Confectionary Point of Purchase Clamshells Pharmaceuticals Corrugated Cushioning Food Produce Boxes TrayBon Flexibles Packaging Industrial Stick Supplies Tape Shrink Packaging Packaging Films Machines Stretch 59,000 Customers $
Slide 20: Next Target Markets
Next Target Markets • Janitorial & Sanitary • Office Supplies • Maintenance, Repair & Operations • Promotional Items • Digital Printing
Slide 21: Execution
EXECUTION
Slide 22: Strategic Plan Summary (Fiscal 2006 through 2010)
AMCOR Sunclipse Strategic Plan Summary (Fiscal 2006 through 2010) Strategic Initiatives Respect for the Individual Service to the Customer Pursuit of Excellence • Behavior Based Safety • Value Plus • Strategic Sourcing • Engagement / Retention • Grow Inside Sales • Sun World Conversion • Performance
Slide 23: Execution Process
Execution Process • “Pursuit of Excellence” (POE) • 16 Active Projects • $4MM Impact • “DMAIC” Model – Define – Measure – Analyze – Implement – Control
Slide 24: Selected POE Projects
Selected POE Projects • Inside Sales – Benefits – Charts • Value Plus – Winning Together – Sales & Marketing Focus • Strategic Sourcing – Partnerships • BSC
Slide 25: Inside Sales – Bang For The Buck
Inside Sales – “Bang For The Buck” • Shift of Small Customer segment to “Inside Sales” has… – Increased GP% – Increased account penetration – Improved DSO – Introduced lower cost business model – Allowed Outside Sales to focus on larger customers
Slide 26: Value Plus
Value Plus • Global Sales & Marketing Upgrade Program – Tactical Marketing – Targeting Opportunities by Segment – Sales Force Effectiveness – Channel Plan – LSA – Transactional Pricing – Winning Together – Peer to Peer Pricing – Key Account Management
Slide 27: Distribution Sales Force
Distribution Sales Force Profile of a Kent H. Landsberg Salesperson • No Territories (People Buy From People) • Unmatched Support/Infrastructure – Culture – Facilities/Equipment – Computer Systems (E-Courier, CRM, Communication) – Supplier Partnerships • Management, Mentoring, Support at All Levels
Slide 28: Distribution Sales Force
Distribution Sales Force • “Rookies” – Rigorous selection process – Structured and disciplined – Training program – Basic, modest salary – Series of Performance milestones needed to achieve “Veteran” status • “Veterans” – Commission based – Highly trained – Highly motivated (no income cap) – Structu
Slide 29: Strategic Sourcing
Strategic Sourcing • Leverage National Spend – Gain competitive advantage – Unit Cost Reduction and Rebates • 7 Categories Sourced • Product Category Leaders Established • Preferred Supplier Program – “Scorecard” Implemented with 3M, Caraustar, Samuel Strapping
Slide 30: Business Service Center (BSC)
Business Service Center (BSC) • Centralization of Backoffice Support in Tempe, Arizona – Commodity Purchasing – Billing / Credit / Collections – Accounts Payable – General Ledger / Reconciliations • Improved Accountability and Focus – Management Operating System (MOS) – KPI’s • Headcount Reduction o
Slide 31: Key Success Factors
Key Success Factors • Safety • Sales Force Effectiveness – Training – Marketing Support • Sourcing – Leveraging Scale • Logistics – Hub/Spoke Efficiency • Information Technology • Evolving Business Model – Segmentation
Slide 32: Summary
Summary • Unique Business Model • Culture • Infrastructure • HUB • Information Technology • Attractive Market Opportunities • Strong Management
Slide 33: Thank You
AMCOR SUNCLIPSE NORTH AMERICA wr Se
Slide 34: www.amcor.com
www.amcor.com