Slide 1: Disclaimers: Cautionary Statement Regarding Forward-Looking Statements
Disclaimers Cautionary Statement Regarding Forward-Looking Statements This presentation contains certain statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act
Slide 2: Safety
Safety Everything we do starts and ends with Safety (1) • • • 53% of Amcor sites injury free for >12 months (2) Recordable Case Frequency Rate at 3.6 Focus on aligning Bemis sites with Amcor practices (1)As of 30 September 2019 (2)Recordable cases per 1,000,000 hours worked. Based on Q1 Fiscal 2020
Slide 3: Key messages for today
Key messages for today 1. 2. 3. 4. Solid start to the fiscal year Bemis integration on track Momentum on sustainability Reaffirmed fiscal 2020 outlook 4
Slide 4: First quarter results
results(1) First quarter 10.7% $335m 13.4c Quarterly dividend 11.5 cps Cashflow improved in line with expectations Repurchased 5.8m shares +110 bps EBIT margin +10% EBIT +15% EPS Growth vs prior year (constant currency) Organic growth and synergies (1)Non-GAAP measures exclude items which management
Slide 5: First quarter segment results
results(1) First quarter segment $291m 12.0% $71m 9.9% • Volume growth in North America and favourable mix Volumes in line in Latin America with unfavourable mix Strong cost management • Higher sales and volumes in North America and Western Europe Synergy benefits Strong cost management • • • • +110
Slide 6: Bemis acquisition: cost synergies track to deliver $180 million
Bemis acquisition: Cost synergies of ~$10m in the first quarter track to deliver $180 million(1) On by end of year three Estimated realization ($m): Generated from the following areas: 100% 40% 180 FY 2020FY 2021 FY 2022 ProcurementOperationsG&A & other costs Total cost synergies Synergy momentum an
Slide 7: Guidance for 2020 fiscal year reaffirmed
Guidance for 2020 fiscal year reaffirmed In Rigid Packaging, Q2 FY2019 results benefited from exceptionally strong volume and mix during what is typically the seasona lly low quarter for the year. As a result, the company expects Rigid Packaging’s earnings in Q2 FY2020 to be lower than the prior yea
Slide 8: Amcor Strategy
Amcor Strategy Flexible Packaging Rigid Packaging Specialty Cartons Closures 9 THE leading global packaging company Our winning aspiration WINNING FOR CUSTOMERS, EMPLOYEES, INVESTORS AND THE ENVIRONMENT: Our differentiated capabilities THE AMCOR WAY: Our businesses FOCUSED PORTFOLIO:
Slide 9: Capital allocation framework
Capital allocation framework Amcor Shareholder Value Creation Model Dividend (~ $750m) Historical yield of ~ 4% Strong, defensive cash flow Total shareholder value of 10-15% per annum with low volatility Reinvestment (~ $500m) Organic EPS growth of ~ 3-4% Acquisitions and/or buy-backs (~ $300-400m)
Slide 10: Our Sustainability Point of View
Our Sustainability “Point of View” There will always be a role for packaging Amcor is uniquely positioned to lead the way Requirements of packaging are increasing: end of life solutions / waste reduction are critical Responsible packaging is the answer Consumers want packaging to be: To innovate and
Slide 11: There will always be a role for packaging
There will always be a role for packaging Extending shelf life Reducing food waste Protecting the environment Food waste accounts for 8% of global GHG emissions Refrigerated Shelf Life in days 30% of food is wasted globally 4 Lettuce 14 3 Fresh red meat 21 If it were a country, food waste would be r
Slide 12: Requirements are increasing: end of life solutions are critical
Requirements are increasing: end of life solutions are critical Consumers environmentally buying more Small price to pay friendly products <1cent Today vs 5 years ago US cents per bottle or 0.45% retail price 81% Next 5 years ~1cent 66%of global consumers (76% of millennials) US cents per container
Slide 13: Responsible packaging is the answer
Responsible packaging is the answer Greenhouse gas emissions (Kg-CO2 equivalent) ‘000 Recycling rate (%) “A hysterical move to glass may be trendy but would have a dreadful impact on the carbon footprint of packaging.” -CEO Major Food and Personal Care Company Flexible packaging 5 0 “Glass and cans
Slide 14: Amcor is uniquely positioned to lead the way: collaborating with stakeholders
Amcor is uniquely positioned to lead the way Collaborating with stakeholders...Packaging Design, Waste Management, Consumer Participation THE RECYCLING PARTNERSHIP ELLEN MACARTHUR FOUNDATION MATERIALS RECOVERY FOR THE FUTURE amcor 15
Slide 15: Amcor is uniquely positioned to lead the way: innovating new products
Amcor is uniquely positioned to lead the way Innovating and developing new products Recycled content Lighter Weight Recyclable 100% PCR 21gr 18gr 200,000 tons reduction in virgin plastic by 2025 16
Slide 16: Summary
Summary Reaffirmed fiscal 2020 expectations; On track to deliver strong shareholder returns • • Continued progress against our priorities Bemis integration and synergy capture on track Capitalising on the increasing need to develop packaging that best protects the environment • 17
Slide 17: Summary
Summary Reaffirmed fiscal 2020 expectations; On track to deliver strong shareholder returns Continued progress against our priorities Bemis integration and synergy capture on track Capitalising on the increasing need to develop packaging that best protects the environment Qamcor
Slide 18: Amcor: Global leader in consumer packaging
Amcor: Global leader in consumer packaging 27% Rigid Packaging North America #1 Flexibles EMEA 46% FY19 sales mix #1 Flexibles North America #1 3% Flexibles Asia Pacific #1 24% Rigid Packaging Latin America #1 North America ANZ Western Europe Emerging Markets Flexibles Latin America #1 Specialty Car
Slide 19: Focused global portfolio
Focused global portfolio USD 13bn combined sales by product type, end market and geography os 3% ust alia Other 14% Special cartons 9% & Z Emerging markets 27% Western Europe 24% PC Flexible packaging 67% Food 44% Rigid packaging 21% product type end market geography Healthcare 12% Beverage 24% Nort
Slide 20: Amcor Flexibles overview
Amcor Flexibles overview Combined sales by region Combined sales by end market 11% 17% 38% 8% 54% 36% 15% 15% Food Healthcare Beverage Home & Personal care Other Europe, Middle East and Africa Asia Pacific North America Latin America Notes: Reflects FY19 combined sales revenue which excludes results
Slide 21: Amcor Rigid Packaging overview
Amcor Rigid Packaging overview Sales by geography Sales by product category 6% 19% 14% 29% North America USD 2.3bn sales 28% 13% Latin America USD 0.6bn sales 73% 81% 37% North America Latin America Cold fill beverage Hot fill beverage Specialty containers Closures Notes: Non-GAAP measures exclude i
Slide 22: North America beverage
North America beverage North America beverage market volume mix – FY19 Amcor Rigid Packaging – FY19 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 45% 55% ARP volumes ARP margin Source: IRI Still water All other All Other NA Still water 23 8% 2%
Slide 23: Appendix
2020 First Appendix Quarter Results 7 November 2 8 November 2 NYSE: AMCR | ASX: AMC
Slide 24: FX translation impact
FX translation impact Combined net income exposures(1) currency Q120 currency impact EUR, 20-30% USD(2), 45-55% Other currencies(3), 20-30% (1) Approximate range based on FY19 estimated combined adjusted net income by currency. (2)Includes all businesses effectively managed as USD functional currenc
Slide 25: Reconciliations of non-GAAP financial measures: adjusted EBIT, net income and EPS
Reconciliations of non-GAAP financial measures Reconciliation of adjusted Earnings before interest and tax (EBIT), Net income and Earnings per share (EPS) us Net 7.7 7.7 0.4 2.5 2.5 0.2 Impairment in equity method investments 68.3 68.3 4.2 (1) Includes costs associated with the Bemis acquisition. (2
Slide 26: Reconciliation of adjusted EBIT by reporting segment
Reconciliations of non-GAAP financial measures Reconciliation of adjusted EBIT by reporting segment Three months ended 30 September 2018 Three months ended 30 September 2019 8,641 1,765 (91) 10,315 (1) (2) (3) Other includes equity in income (loss) of affiliated companies, net of tax and generalcorp
Slide 27: Reconciliation of adjusted free cash flow and cash flow after dividends
Reconciliations of non-GAAP financial measures Reconciliation of adjusted free cash flow and cash flow after dividends Three months ended 30 September 2018111 Three months ended 30 September 2019 ($million) Net cash provided from operating activities Net capital expenditure Material transaction rela
Slide 28: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures Reconciliation of adjusted free cash flow and cash flow after dividends Three months ended Three months ended ($ million) 30 September 2018" 30 September 2019 Net cash provided from operating activities (305.8) (89.4) Net capital expenditure (1128) (115