Amcor Plc · NYSE:AMCR
Amcor — FY2020 Earnings Presentation
25 slides from Amcor's earnings presentation, Aug 18, 2020
Slide 1: FY20 Full Year Results
Exhibit 99.2 FY20 Full Year Results Ron Delia CEO Michael Casamento CFO August 18, 2020 US & 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
Safety Committed to our goal of ‘no injuries’ Recordable-case frequency rate (per million hours worked) 4.5 4.1 4.0 4 Acquisition impacts 3.5 3.4 • 10% reduction in number of injuries 3.2 3 2.8 2.6 2.6 • 52% of sites injury free for >12 months 2.5 2.4 2.0 2.1 2 2.0 2.0 • Staying safe and healthy – o
Slide 4: Rising to the challenges of the current environment
Rising to the challenges of the current environment Employees Operations Communities Working safely and ensuring Safeguarding supply and Delivering essential products to health and well-being responding to new demand trends people in need Preserve. Protect. Promote. The role of packaging has never b
Slide 5: Key messages for today
Key messages for today Milestone 2020 financial year 1. Strong financial results, demonstrating resilience 2. Bemis acquisition ahead of expectations and enhancing performance 3. Visibility to drivers of near-term value for shareholders 4. Continued progress on advancing sustainability agenda 5. Sub
Slide 6: Strong full year FY20 results
Strong full year FY20 results Organic growth and synergy benefits Outperforming on controllables • Safety 64.2¢ $1,220m • Cost performance EPS Free Cash Flow • Working capital +13% yoy +26% yoy • Integration • Synergies $1,497m 12% EBIT EBIT +7% yoy Margin Notes: EPS, Free Cash Flow, EBIT and EBIT m
Slide 7: Bemis acquisition - financial and strategic benefits
Bemis acquisition - financial and strategic benefits First year integration and Enhancing Flexibles synergies well ahead of segment performance Long term strategic benefits expectations immediately $80m of cost synergies in High quality business Management talent year 1, 30% ahead of initial contrib
Slide 8: Substantial value delivered to shareholders in FY20
Substantial value delivered to shareholders in FY20 FY20 cash returns FY20 shareholder value above long term average range $1.2 bn 46.0 cps annual 4% dividend dividend yield 4% EPS growth 17% shareholder Organic value +26% 3.5% of 9% EPS growth shares Acquisition & Free cash flow repurchased Buy bac
Slide 9: FY20 results - H2 demonstrating resilience through COVID-19
FY20 results - H2 demonstrating resilience through COVID-19 Notwithstanding month to month volatility, volumes 1% higher in both Flexibles and Rigid Packaging segments for the six months ended 30 June 2020. Reflects Amcor’s geographic and end market diversification Geographic Diversification End Mar
Slide 10: FY20 results - Flexibles segment
FY20 results - Flexibles segment 10% EBIT growth on a constant currency basis – 5% organic growth plus $57 million of synergies Adjusted EBIT ($m) Adjusted EBIT margin Full year results highlights • Adjusted EBIT growth 10% on a constant currency basis 1,335 13.7% 1,239 12.3% • 5.2% organic growth •
Slide 11: FY20 results - Rigid Packaging segment
FY20 results - Rigid Packaging segment Resilience and earnings growth in H2 after strong Q2 comparative Adjusted EBIT ($m) Adjusted EBIT margin Full year results highlights • 3% EBIT growth in H2 on a constant currency basis, as expected 308 10.7% 10.7% 290 • Earnings growth in first, third, and fou
Slide 12: FY20 results - $1.2bn free cash flow, up 26%
FY20 results - $1.2bn free cash flow, up 26% Outstanding working capital performance, continuing to invest and return capital to shareholders Year to date cash flow FY19 FY20 ($ million) • Disciplined capex spending in light of Bemis Adjusted EBITDA 1,394 1,913 integration and COVID-19 Interest and
Slide 13: FY20 results - Strong balance sheet and debt profile
FY20 results - Strong balance sheet and debt profile Investment grade balance sheet - Flexibility and capacity to invest Balance sheet June 2020 • Strong balance sheet metrics Net debt ($ million) 5,492 • No significant maturities within 12 months Net interest expense ($ million) 185 EBITDA interest
Slide 14: Guidance for fiscal year ending June 2021
Guidance for fiscal year ending 30 June 2021 Amcor’s guidance contemplates a range of factors, however the COVID-19 pandemic creates higher degrees of uncertainty and additional complexity when estimating future financial results. For fiscal 2021, the Company expects: Adjusted constant currency EPS
Slide 15: Consistent shareholder returns
Consistent shareholder returns Near term: controllable drivers of shareholder returns • Defensive organic growth • Additional cost synergies • Sustainable, compelling dividend • EPS growth from FY20 buy-back Longer term: unchanged Shareholder Value Creation Model 15
Slide 16: Consistent performance and financial strength
Consistent performance and financial strength Strong, consistent Investment grade balance Sustainable, compelling results sheet dividend 4.7% 3.9X 12% 8% 2.9X 1.8% 5% S&P 500 4% 1.9% 2% Sales EBITDA EBIT EPS EPS + Amcor Industry average Amcor Industry average dividend CC Average (2014-2020) Leverage
Slide 17: Sustainability remains our most significant growth opportunity
Sustainability remains our most significant growth opportunity Responsible packaging is the answer Consumer Packaging design Waste management infrastructure participation Amcor is uniquely positioned as industry leader with Scale, Resources and Capabilities 17
Slide 18: Responsible packaging – Amcor uniquely positioned to lead
Responsible packaging – Amcor uniquely positioned to lead Making progress through meaningful actions Innovating Collaborating Informing Packaging design taking into account full Partner of choice with scale to maximise Technical expertise to inform and educate lifecycle environmental impacts reach a
Slide 19: Summary
Summary Milestone 2020 financial year 1. Strong financial results, demonstrating resilience 2. Bemis acquisition ahead of expectations and enhancing performance 3. Visibility to drivers of near-term value for shareholders 4. Continued progress on advancing sustainability agenda 5. Substantial opport
Slide 20: Appendix slides
Appendix slides FY20 Full year results – supplementary schedules and reconciliations
Slide 21: FX translation impact
FX translation impact FY20 currency impact Combined net income currency exposures(1) Total currency impact $ million Adjusted EBIT (31) EUR, 20-30% Adjusted net income (24) EUR:USD Euro weakened vs USD, Average USD million impact on FY USD to EUR rate FY20 0.9045 vs adjusted net income FY19 0.8767 (
Slide 22: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures (1) Includes costs associated with the Bemis acquisition. The twelve months ended June 30, 2020 and 2019 includes $58 million and $16 million respectively of acquisition related inventory fair value step-up costs. 22 (2) The twelve months ended June 30,
Slide 23: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures (1) Other includes equity in income (loss) of affiliated companies, net of tax and general corporate expenses. (2) Includes costs associated with the Bemis acquisition. The twelve months ended June 30, 2020 and 2019 includes $58 million and $16 million
Slide 24: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 24
Slide 25: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 25