Slide 1: Full Year Results Overview
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Slide 2: Group Financials Full Year Results 2004/2005
Slide 3: Disclaimer
8 = claimer se. . 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 statements can generally b
Slide 4: Agenda
Agenda * Review of the 2005 results ~ Ken MacKenzie — Lou Lachal ~ Peter Day — Summary ° Overview and direction for the future — Ken MacKenzie * Q&A © Ameor Ltd 2005
Slide 5: 2004/2005 Year
2004/2005 Year » Profit after tax up 1% to $391 million * Operating cash flow of $980 million * Significant items a loss of $269.8 million * Number of adverse impacts — Substantial cost increases -~ Slowing economic conditions — Some projects behind schedule — Trade Practices issue » Positive offset
Slide 6: Amcor PET Packaging: Sales growth 20%
US$ 225 200 « Sales growth 20% « Overall volume growth 5% _ © Custom volume growth 6% 175 150 wappiTa 125 ~@ ROAFL 400 Regional Volumes Latin America, 22% Europe, 27% 02/03 03/04 04/05 | Sales US$m 1,897 2,275 2,733 PBITA US$m 184.4 190.3 195.4 A.F.1. US$m 4,747 1,901 2,020 North PBITA/AF! % 10.6 10
Slide 7: North America: Solid year
* Solid year « Earnings slightly lower due to unrecovered cost increases and price concessions * Custom volume growth 10% and CSD/Water volumes flat « Restructuring program was successfully completed * Ongoing restructuring required — Loss of volume predominately in Canada -~ Three plants to close:
Slide 8: Latin America
Latin America ¢ Strong year with volumes up 23% e Earnings in Brazil and Argentina increased substantially « In Mexico the integration of Arca remains behind schedule * Outlook ~ Continued solid growth — Focus on execution in Mexico © Ameor Ltd 2005 AMCOR
Slide 9: Europe
Europe ° Very disappointing year with volumes down 4% and earnings substantially lower « Cool summer e German volumes and earnings well down ¢ Poor operating performances in Turkey (now closed) and Poland « Change of management * Qutlook — Modest volume growth — Focus on execution © Ameor Ltd 2005
Slide 10: PET — Key Focus
PET — Key Focus ¢ Continuing focus on cost reductions to offset margin erosion « Improving the operating performance in Mexico and Continental Europe * Capital expenditure to focus on higher returning businesses in Latin America and custom beverage © Ameor Ltd 2005
Slide 11: Amcor Flexibles
Amcor Flexibles * Sales up 7%, mainly due € 1% to raw material cost ‘00 eo increases 16 Hi _« Returns remained steady at 9.6% we PBITA wee ROAFI * Substantial raw material cost increases largely recovered « Significant cost 02/08 oxoa oains reductions achieved Sales €m 1,219 1,336 1,431 / PBITA €m 7
Slide 12: Raw Material Market Price Trends
Raw Material Market Price Trends &8§ £28 8 8 8B Ss 5Ftee JUDWAAOY JaYeW] JO xapU] so-Aew go-uer vo-das vorkew poruer codes co-dew eoruer © Ameor Ltd 2005
Slide 13: Segment Performance
Segment Performance « Processed food ~ Improvement driven through restructuring ~ Write down of the carrying value of some plants — The new plant in Russia on schedule ° Fresh food — Solid performance particularly in the produce and bread markets ~ Volumes and forward loading is good © Ameor Ltd 200
Slide 14: Segment Performance
Segment Performance ° Health — Reasonable year — Business most impacted by external forces — Raw material cost recovery — Higher euro « Americas ~ Good year in both the fresh food and medical — New capital being installed to improve value-add © Ameor Ltd 2005
Slide 15: Summary
Summary ¢ Operationally the business is better positioned than 12 months ago, however: _ European economy remains a concern ~ Raw material prices are likely to increase over the next six months ~ Processed Foods business has improved but still well below expectations ~ Fresh, Health and Americas per
Slide 16: PBITA: Amcor Rentsch and Closures
PBITA 45 Sales €m PBITA €m AF.L €m PBITA/AFI % Employees 02/03 734 47.1 571 8.2 3,279 03/04 604 60.0 431 13.9 3,140 20 % 04/05 582 64.6 448 14.4 2,851 © Ameor Ltd 2005 « Amcor Rentsch — Lower sales ~ Higher operating efficiencies ~ Improved cost base ~ Preparation for graphical health warnings » Amc
Slide 17: Amcor Australasia
Amcor Australasia $m 350 20 % « Solid year « Returns 16.9% « Very strong first half but slower second half 02/03 03/04 04/05 Sales $M 2,456 2,538 2,872 PBITA $M 282.9 316.5 316.8 AFI. $M 1,816 1,832 1,876 PBITAJAFI % 15.6 17.3 16.9 Employee’s 7,113 6,756 6,510 © Ameor Ltd 2005 AMCOR
Slide 18: Performance over the past months disappointing
° Performance over the past 12 months disappointing * Impacted by substantial management changes « Volumes lower: ~ Drought, retailer supply chain strategies, customers moving volumes offshore -~ Loss of market share « Negative flow-on effect to paper mills -- Lower domestic sales -~ Higher export s
Slide 19: Fibre - Cartons
Fibre - Cartons Converting « Volumes down slightly in Australia « Continuing restructuring delivering a lower cost base * Good growth categories emerging e Margins under increasing pressure from imports and substitution Cartonboard Mill « Domestic volumes lower e Mill upgrade not yet delivering the
Slide 20: Good year overall with numerous market initiatives
« Good year overall with numerous market initiatives and internal restructuring delivering improved earnings * Resin costs largely recovered in the marketplace ¢ Benefits to flow from restructuring in New South Wales « New capital investment improving the cost position e Launch of a number of innova
Slide 21: Rigid and Glass
ee Rigid and Glass Beverage Cans « Volumes up 5% ~ Soft drink and RTD « Extension of major contracts Food Cans * Lower volumes but improved operating performance ° Significant tinplate cost increases mostly recovered « Importing industry dynamics Glass * Good sales and profit growth e Second furnace
Slide 22: Economy more subdued than months ago
« Economy more subdued than 12 months ago ¢ Good opportunities exist for improvement in all aspects of the fibre division, but these will take time ° Market and supply chain dynamics are changing « Overall there is a solid base of earnings, however the second half run rate is continuing into the cur
Slide 23: Amcor Asia
Sing $ we PRITA “@ROAFI 20 Sales $m PBITA $m AFL $m PBITA/AFI % Employees 02/03 271 33.0 299 11.0 2,797 20 % 03/704 04/05 304 329 37.2 33.7 282 315 13.2 10.7 2,833 2,469 © Ameor Ltd 2005 Overall profit 9% lower ~ Very poor second half Corrugated — Very disappointing ~ Lower margins and volumes — Ass
Slide 24: Amcor Sunclipse
Amcor Sun US$ 60 50 40 8 PBITA 39 ~~ ROAFI 20 40 0 02/03 Sales $m 761 PBITA $m 49.7 A.F.1. $m 333 PBITA/AFI% 15.0 Employees 2,367 03/04 822 40.9 323 12.6 2,204 04/05 914 41.9 334 12.7 2,105 © Ameor Ltd 2005 Earnings up 2% to US$41.9 million Solid first half — Some one off positives Particularly diff
Slide 25: Slide 25
Slide 26: Presentation Key Notes
Presentation Key Notes « Key results & significant items ° Impairments and restructuring e Borrowing costs and tax * Returns and cashflow * Capital structure and capital management « Dividends « AIFRS e« Summary © Ameor Ltd 2005
Slide 27: Key Results
Key Results $ mill (before significant items) Jun 04 Jun05 %Change Sales 10,406 11,100 6.7% PBITDA 1,286 1,298 0.9% PBITA 831 838 0.8% PBIT 704 711 1.0% ( PBT (pre PACRS) 571 573 0.4% | PAT (pre PACRS) 44g 443 0.6% PBT (post PACRS) 518 521 0.5% PAT (post PACRS) 387 394 0.9% EPS (post PACRS: cents) 4
Slide 28: Movement (before significant items)
Movement (before significant items) Sales PBITDA PBITA PBIT - fo we a Pace Vato ee i PET (post PACRS) 37 wh a “OA. | EPS (pre goodwill) #34 5.3 8 oe 7 © Amcor Ltd 2005 AMCOR
Slide 29: Significant Items
$ mill Jun04 Jun 05 PET restructure (20) (34) Flexibles market sector rationalisation (70) (34) (90) (68) Twinpak residual assets (10) - (100) (68) Additional significant items - (260) Tax effects 5 58 Net significant items (95) (270) © Ameor Ltd 2005
Slide 30: Additional impairments and Restructuring
io Additional impairments and Restructuring « Review of all BG’s, CGU’s and plants « Goodwill at CGU level remains supportable « Drill down identified underperforming sectors/plants $171m “impairment”, $89m accelerated depreciation = $260 mill ° Net of tax overall cost $210 mill © Ameor Ltd 2005 AMC
Slide 31: Impairments and restructuring by segment
PET Canadian Restructure - Loss of major customer Other Fiexibles Impairments across 3 plants Australasia Paper Mill Assets — accelerated depreciation Other Asia Impairment of Corrugated, Sacks and Rigid Assets Other TOTAL Tax effects Net © Ameor Ltd 2005 89 20 $m 73 49 211
Slide 32: Weighted Average Cost
Weighted Average Cost Jun 04 Jun 05 PACRS, PRIDES & Convertibles 7.9% 7.9% Other Debt Facilities -US 4.2% 5.0% - European 4.2% 4.0% - Australia 5.3% 5.7% - New Zealand 6.5% 7.3% - Asia 46% 4.9% Weighted Average Interest Rate Cost 5.3% 5.5% Other Borrowing Costs c.30bp c.30bp *Represenis weighted ave
Slide 33: Effective Tax Rate
Effective Tax Rate Jun 04 Jun 05 Tax with PACRS as interest 22.5% 22.5% Impact of PACRS (2.1%) (2.0%) Tax on Statutory Profit* 20.4% 20.5% * Before significant items Incurred tax rate is lower due to: * impact of PACRS * efficient offshore capital structures » use of tax losses, tax deductions for g
Slide 34: Earnings per share growth
GE OY om dey 4 ony oem 65 7 61.7 Compound earnings growth 7.9% pe 50.3 EPS «9 | Cents 40.2 99/00 00/01 01/02 02/03 03/04 04/05 EPS Basic pre significant items (PACRS as interest) EPS Basic pre significant items and goodwill amortisation AMCOR © Ameor Ltd 2005
Slide 35: PBITA to Average Funds Invested
PBITA to Average Funds Invested 14.0 5 12.0 5 10.0 + % 8.04 4.0 5 2.0 5 L 0.0 ‘ dl a 97/98 98/99 99/00 = 00/01 01/02 02/03 03/04 +97/98 and 98/99 are PBIT to Average Funds Employed © Amcor Lt 2005 +All calculations before significant items AMCOR
Slide 36: Cash Flow from Operations
Cash Flow from Operations 1000 + 961 980 | Cormpound CFO growth 18.8% pa | 945 800 5 694 $m_ 600 J 526 415 400 5 218 238° 200 99/00 00/01 01/02 02/03 03/04 04/05 PAT = Profit After Tax {and PACRs} CFO = Cash Flow from Operations (= PAT plus Depreciation & Amortisation plus/minus tax payments before
Slide 37: Cash Flow from Operations per share
Cash Flow from Operations 1200 7 7 1.4 Cornpound CFO growth per share 11.1% pa + 1.13 1.11 4112 712 1000 4.05 +1 800 + $m 0.66 7°8 o 600 + . > ® + 0.6 © 400 + + 04 200 + + o2 0 + ' + + + (3) 99/00 00/01 01/02 02/03 03/04 04/05 CFO = Cash Flow from Operations (= PAT pius Depreciation & Amortisation p
Slide 38: Cash Flow Summary
Cash Flow Summary $m Inflows Outflows © Ameor Ltd 2005 Work Capital increase Sustaining Capex Net Borrowing Costs Tax Dividends & PACRS Other Growth Capex/Acq/Disposals AMCOR
Slide 39: Capital Expenditure Summary
Capital Expenditure Summary $ mill Capex Acquisitions Gross Expenditure Disposals Net Capex Vision Grande Other Acquisitions © Ameor Ltd 2005
Slide 40: Working Capital Performance
Performance Average p.a. Working Working capital at period end capital/sales* Net 1300 - Acquisitions 1000 - $m 700 - 400 99/00 00/01 01/02 02/03 03/04 04/05 *After (i.e. net of) factoring and securitization of receivables AMCOR © Amcor Ltd 2005
Slide 41: Capital Structure with OBS Financing
Capital Structure with OBS Financing $ mill Jun03 Jun04 Jun05 Equity & PACRS 4,636 Net Debt* _ 2,297 6,933 OBS financings** 850 7,783 Interest cover: PBITA*** 3.7X Interest cover: PBITDA*** 6.3x 6.7x 6.4x * Includes Australian Convertibles (which converted during 1H 03/04) and PRIDES ** Off Balance
Slide 42: Dividends
Dividends © Ameor Ltd 2005 Final dividend 17c (34c FY - up 6.3% on pcp) Final dividend franked 22% (25% for full year) Future franking likely to be <20% No DRP discount on final dividend DRP not dilutive to eps Payout ratio 57.7% pre-goodwill , pre significants Future dividend growth aligned to prof
Slide 43: Impact of AIFRS
impact of AIFRS « Goodwill * Share based payments * Pensions * Leases and securitisations * Restoration provisions, start up costs, grants * Tax effect accounting « Equity: debt classifications « No overall economic or cash flow impact © Ameor Ltd 2005
Slide 44: Reconciliation AGAAP to AIFRS 04/05
Reconciliation AGAAP to AIFRS 04/05 AGAAP net profit after tax (Pre PACRS) PACRS distribution treated as interest AGAAP net profit after tax (post PACRS) « Amortisation of goodwill * ‘Tax loss utilisation adjustment to goodwill * Pensions expense « Share based payments * Startup costs » Government g
Slide 45: AIFRS Impact on Balance Sheet
io AIFRS Impact on Bz Reconciliation AGAAP Adjustments AIFRS Current Assets 3,337 158” 3,495 Non Current Assets 6,562 383° 6,945 9,899 541 10.440 Current Liabilities 3,094 162° 3,256 Non Current Liabilities 2,442 751° 3,193 5,536 913 6,449 Equity 4,363 (372) 3,991 Receivables securitisation Employee
Slide 46: Financial Summary
Financial Summary * Cash flow remains strong ° Tax rate position maintained « Recent working capital pressure absorbed & managed « Matching currency of assets & liabilities « Debt maturity profile remains strong « Financial flexibility in capital structure * Commitment to capital management © Ameor
Slide 47: The 2004/2005 year was particularly difficult
* The 2004/2005 year was particularly difficult e The second half and more specifically the fourth quarter run rate was poor « This run rate continues into the first half of the 2005/ 2006 year « Some key determinants for earnings in 2005/2006 remain uncertain and volatile « Not possible to give gui
Slide 48: The Way Forward
The Way Forward Returns PBITA/AFI Sales % 26 42 $ billion . i . ¢ For the past five years ° ; growth has had priority * over returns 40 * Returns are the priority e Good opportunities exist to deliver more value from our platform of businesses go0 «(O01 §=— T0223) O34 dE © Ameor Ltd 2005
Slide 49: The Way Forward
The Way Forward © Ameor Ltd 2005 AMCOR
Slide 50: The Way Forward — Strong Market Positions
The Way Forward — Strong Market Positions © Ameor Ltd 2005 * Review ongoing Potential sale proceeds between $0.5 to $1.0 billion -Asset write downs $210 million -Further possible restructuring $100 to $150 million
Slide 51: The Way Forward — Customer & Market Focused
The Way Forward — Customer & Market Focused ° Need to develop unique insights via a deeper understanding of customer and market needs — Differentiated offer ~ First mover advantage « Need to upgrade commercial capability © Ameor Ltd 2005 AMCOR
Slide 52: Business group initiatives and global leverage
e Continue to pursue business group initiatives ~ Operating efficiencies — Capital upgrades ~ Manufacturing footprint * Drive new opportunities from global leverage — Sharing best practice ~ Overhead reductions ~— Procurement © Ameor Ltd 2005 AMCOR
Slide 53: The Way Forward — Capital Discipline
The Way Forward — Capital Discipline » Manage investment spending by: ~ Having a more focussed portfolio ~ Better understanding the market segments and customer needs -~ Continuing to reduce costs * Focus on returns ~ PBIT to Average Funds Employed ~ Cash to shareholders Returns PBIT/AFE % 18 2000 2
Slide 54: The Way Forward — Cultural Change
The Way Forward — Cultural Change od CULTURAL CHANGE « Improvement in execution will require cultural change ~ Dynamic -~ Lean ~ “One” company * Building our people is as important as Safety and ROAFE © Ameor Ltd 2005 AMCOR
Slide 55: Summary
Summary © Ameor Ltd 2005 AMCOR