Slide 1: Acquisition of Alcan Packaging Businesses – Full Year Results
For personal use only Acquisition of Alcan Packaging Businesses Full Year Results August g 18,, 2009
Slide 2: Disclaimer
Disclaimer For personal use only This Presentation is issued by Amcor Limited (ABN 62 000 017 372) (Amcor) in relation to an accelerated non-renounceable entitlement offer to subscribe for new of ordinary shares in Amcor (New Shares) to be made to eligible institutional shareholders of Amcor (Instit
Slide 3: Agenda; Acquiring Parts of Alcan Packaging
Agenda For personal use only 1. Acquisition overview and rationale 2. Alcan packaging Businesses 3. Financials 4. The new Amcor 5. Funding 6. Full Year Results y 7. Summary NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Acquiring Parts of A
Slide 4: Acquisition Highlights
Acquisition Highlights For personal use only Purchase Price • The headline purchase price of US$2,025 million is based on the last 12 months adjusted EBITDA of between US$358 to US$368 million • Price adjustment mechanism if actual last 12 months adjusted EBITDA differs from this range • Purchase pr
Slide 5: Creating a Strong Platform for Growth
Creating a Strong Platform for Growth For personal use only Shareholder Value Attractive Att ti Operational Customer Strategic fit purchase Alignment Alignment price • Flexible packaging • Synergies A$200 to • Creates global • EPS positive in FY2011 • Folding carton A$250 million by year leadership
Slide 6: Food Packaging Europe – Business Overview
Agenda For personal use only 1. Acquisition overview and rationale 2. Alcan packaging Businesses 3. Financials 4. The new Amcor 5. Funding 6. Full Year Results y 7. Summary NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Food Packaging Europ
Slide 7: Food Packaging Asia and Global Pharmaceutical Packaging
Food Packaging Asia – Business Overview For personal use only CY2008 Sales € 202 million 10 locations in 4 countries NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Global Pharmaceutical Packaging – Business Overview CY2008 Sales € 563 milli
Slide 8: Tobacco Folding Cartons and Diversified Rigid Plastic Containers
Global Folding Cartons for Tobacco – Business Overview For personal use only CY2008 Sales € 394 million 12 locations in 10 countries NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Diversified Rigid Plastic Containers CY2008 Sales € 98 milli
Slide 9: Financial performance of combined Alcan Packaging Business
Agenda For personal use only 1. Acquisition overview and rationale 2. Alcan packaging Businesses 3. Financials 4. The new Amcor 5. Funding 6. Full Year Results y 7. Summary NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Financial performanc
Slide 10: Integration – Embed The Amcor Way
Integration – Embed “The Amcor Way” For personal use only Voice of the Customer Free Cash Flow Overheads Behavioural Audits Value Plus Capital Expenditure Employee Engagement Procurement Common Standards Product Profitability Working Capital Talent Management Operational Excellence Customer Capital
Slide 11: Pro forma earnings of Combined Amcor and Alcan
Agenda For personal use only 1. Acquisition overview and rationale 2. Alcan packaging Businesses 3. Financials 4. The new Amcor 5. Funding 6. Full Year Results y 7. Summary NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Pro forma earnings o
Slide 12: Customer and Market Focus
Customer and Market Focus For personal use only Global • Improved value proposition customer • Established positions with multinational customers relationships Broad • Operations in Europe, Americas, Australasia and Asia geographic • 306 plants in 43 countries with approximately 35,000 coverage empl
Slide 13: Acquisition Price - Adjustment Mechanism
Acquisition Price - Adjustment Mechanism For personal use only • Purchase price adjustment mechanism to Adjusted LTM EBITDA Purchase EBITDA reflect actual earnings at the time of closing (US$ million) Price Multiple (US$m) – CY2009 or last twelve months (LTM) if 388 or above 2,125 ≤5.5x completion l
Slide 14: Acquisition Funding
Acquisition Funding For personal use only • Appropriate funding structure to enhance Uses of Funds High Headline Low credit profile. A$ million (US$2,125) (US$2,025) (US$1,850) Businesses acquired 2,560 2,440 2,229 • Depending on the final purchase price, funding will be via: Pension Adjustment (182
Slide 15: Proforma Capital Structure
Proforma Capital Structure For personal use only A$ million Amcor Acquisition Total 30 June 2009 • Proforma gearing of 43.4% which is below the target range of 45% to 50% Funds employed 5,719 2,281 8,000 N Nett d bt debt 2 643 2,643 830 3 473 3,473 Equity 3,076 1,451 4,527 Gearing (%)1 46.2 36.4 43.
Slide 16: Full Year Profit Results
Agenda For personal use only 1. Acquisition overview and rationale 2. Alcan packaging Businesses 3. Financials 4. The new Amcor 5. Funding 6. Full Year Results y 7. Summary NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS Full Year Profit Res
Slide 17: Continuing Business PBIT Performance
Continuing Business PBIT Performance For personal use only 2007/08 2008/09 % change • Solid performances in: Flexibles (€m) 115.9 132.2 14.1 – Flexibles Asia (SGDm) 47.2 53.2 12.7 – Asia PET (US$m) 198.8 184.8 (7.0) – PET Packaging Australasia (A$m) 188.5 113.2 (39.9) • Sunclipse impacted by weaker
Slide 18: Working Capital Performance; Amcor PET Packaging
Working Capital Performance For personal use only Period End Working Capital Average Working Capital to Sales All operations, before factoring Continuing operations, before factoring 1,516 13.3 12.4 1,105 10.8 823 9.8 9.6 683 521 04/05 05/06 06/07 07/08 08/09 04/05 05/06 06/07 07/08 08/09 A$ million
Slide 19: Amcor PET Packaging; Amcor Australasia
Amcor PET Packaging For personal use only Million Units 2007/08 2008/09 % change North America 19,243 16,725 (13.1) Latin America 9,316 9,428 1.2 BG/India 112 155 38.0 Total 28,671 26,307 (8.2) CSD/Water 19,573 17,875 (8.7) Custom 9,098 8,432 (7.3) • Custom containers 48% of total sales • Continued
Slide 20: Amcor Australasia – Key Points; Amcor Flexibles
Amcor Australasia – Key Points For personal use only Solid operational performance 2009/10 Outlook Substantial overhead reduction program Dependent on implemented i conditions economic diti Lower volumes, particularly in the second half Improved performance Two specific issues: expected in recycled
Slide 21: Amcor Flexibles – Key Points; Amcor Sunclipse
Amcor Flexibles – Key Points For personal use only Excellent performance in tobacco packaging • Volumes up 8% e e ts from • Benefits o cap capital ta eexpenditure pe d tu e Solid performances in healthcare and food flexible packaging • Benefits from restructuring program • Volumes lower, with destoc
Slide 22: Amcor Asia
Amcor Asia For personal use only 10.4% SGD million 2007/08 2008/09 8.4% Sales 152 137 PBIT 47 2 47.2 53 2 53.2 AFE 455 636 53.2 47.2 PBIT/AFE% 10.4 8.4 Cash Flow 15 38 Earnings growth of 13% Jun 08 Jun 09 37% increase from wholly-owned operations PBIT SGD million NOT FOR DISTRIBUTION OR RELEASE IN T
Slide 23: Summary
Summary For personal use only • Base businesses benefiting from strong focus on execution – Delivering results in difficult economic conditions • The Th acquisition i iti off Alcan Al Packaging P k i is i an exciting iti opportunity t it – Strategic fit – Operational alignment – Substantial synergie