Slide 1: Amcor Information Slides August 2006
AMCOR INFORMATION SLIDES AUGUST 2006
Slide 2: Disclaimer
Disclaimer • 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 be ide
Slide 3: Mission, Vision and Values
MISSION, VISION AND VALUES Amcor’s Mission, Vision and Values philosophy is at the core of how we conduct our business and forms the foundation of our future direction. MISSION • To generate sustainable shareholder value – by becoming premier packaging solutions provider; creating superior customer
Slide 4: History of Amcor
HISTORY OF AMCOR VICTORIA NEW SOUTH WALES Ramsden’s Melbourne Mill AUSTRALIAN PAPER CO (1868) Collingwood (later Liverpool) Mill (1868) VICTORIAN PAPER MNFG CO FEDERAL PAPER Geelong (Fyansford) Mill (1868) MILLS Broadford Mill (1890) Botany Mill (1901) THE AUSTRALIAN PAPER THE SYDNEY PAPER MILLS MIL
Slide 5: Amcor at a Glance
AMCOR AT A GLANCE FUNDAMENTALS 1995 2005 • Leading paper & packaging • Leading packaging company company in Aust & NZ in Aust & NZ • In top 10 globally • Ranked 3 globally by sales • Largest PET producer globally Sales $6.5b 75% Aust/NZ Sales ~ $11.1b 20% Aust/NZ 25% Rest of World 80% Rest of World
Slide 6: Evolution of Amcor
EVOLUTION OF AMCOR AUSTRALIAN ACQUISITION FOCUSED PAPER PAPER & • FLEXIBLES INTERNATIONAL DIVESTMENT PACKAGING • PET PACKAGING 1995 2005 Sales $6.5b 75% Aust/NZ Sales ~ $11.1b 20% Aust/NZ 25% Rest of World 80% Rest of World 20,000 employees 24,000 employees ~ 140 plants ~ 217 plants 21 countries 34
Slide 7: Amcor at a Glance: Structure
AMCOR AT A GLANCE STRUCTURE 1995 NOW Amcor Limited Amcor Limited Containers Amcor Fibre Amcor Amcor Asia Packaging Packaging Australasia Investments Amcor 50% Kimberley- Amcor Flexibles Paper Group Clark Aust Amcor PET Amcor Group (includes 46% Spicers Paper Packaging Sunclipse Amcor Rentsch) © Amco
Slide 8: Management Structure
MANAGEMENT STRUCTURE Ken MacKenzie Managing Director & CEO Amcor Flexibles (AF) Louis Lachal Eric Bloom Billy Chan Bill Long Gerard Blatrix Peter Brues Jerzy Czubak Managing President & Managing Managing Director, President, Director, CEO, Amcor Director, Managing Director, Managing Director, Amcor
Slide 9: Operational Structure
OPERATIONAL STRUCTURE Amcor Limited Amcor Flexibles Group Amcor PET Amcor Amcor Amcor Asia Packaging Australasia Sunclipse Amcor Flexibles Amcor Rentsch • No. 1 globally • No. 1 packaging • No. 1 globally • No. 1 globally • Leading • A leading for PET company in for flexible for tobacco distribution
Slide 10: Amcor at a Glance: Global Product Mix
AMCOR AT A GLANCE GLOBAL PRODUCT MIX 1995 2005 Cans Other Closures – Metal & Plastic 8% Flexibles PET Plastic Tubes Corrugated & Paper PET Rigid Plastics 17% 35% 20% Cartons 8% Metal 4% Papers & Paper Based Packaging Flexibles 28% 80% © Amcor Ltd 2006
Slide 11: Consistent Strategy Over the Last 5 Years
CONSISTENT STRATEGY OVER THE LAST 5 YEARS Top 3 participant in our chosen markets Top five global Focused Strategy packaging company Globally recognised brand © Amcor Ltd 2006
Slide 12: Amcor's Well Defined Strategy
AMCOR’S WELL DEFINED STRATEGY Focused packaging Target high growth Develop leading company targeting segments with global or regional the food and scope for product product positions beverage industries innovation Consistent growth with low cash flow volatility and returns above the cost of capital
Slide 13: The Strategy Related to Divisions
THE STRATEGY RELATED TO DIVISIONS Internationally Focused on selective, high value added Global or regional market segments leadership positions Specialty PET Flexibles Folding Distribution Containers Cartons Australasia Product Leadership in Leadership & Broad product offering Australasia Innovatio
Slide 14: Changing Face of Amcor
CHANGING FACE OF AMCOR Divestments Acquisitions John Sands Greeting Cards Group Leigh-Mardon Printing Business 1995 Rentsch Folding Cartons – Switzerland Corrugated packaging business Europe 1996 European Flexibles Business (UCB) Paper Mill in USA 1997 Leigh Mardon Flexibles Australia Sawmilling Bus
Slide 15: Health and Safety
HEALTH AND SAFETY 15 L T 10 I 5 F R 0 1997 1998 1999 2000 2001 2002* 2003* 2004* 2005* • Amcor’s vision for safety performance - that no-one is ever injured on an Amcor site. • The “No Injuries” program was introduced in 1997 and has resulted in a massive drop of working days lost per year - from 15
Slide 16: Importance of Triple Bottom Line
IMPORTANCE OF “TRIPLE BOTTOM LINE” • Amcor is committed to the concepts of sustainability. • Long term economic performance is linked to environmental & social performance. • Member of the World Business Council for Sustainable Development and the Dow Jones Sustainability Index. • Amcor was one of t
Slide 17: EPS Returns
EPS RETURNS 65 61.7 Compound earnings growth 7.9% pa 59.4 58.9 60 Compound earnings growth 5.3% pa 55 50.3 EPS 50 Cents 44.7 45.3 44.7 44.5 45 42.1 40.2 40 37.6 34.5 35 30 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 good
Slide 18: Earnings Per Share Growth
EARNINGS PER SHARE GROWTH Post Goodwill Amortisation Pre Goodwill Amortisation th 5.3% grow th 7.9% pound grow Co m mpound Co Cents / share 50.0 42.1 45.4 44.7 44.5 Cents / share 75.0 62.0 59.4 58.9 40.0 34.5 37.6 50.3 30.0 50.0 40.2 44.7 20.0 25.0 10.0 0.0 0.0 2000 2001 2002 2003 2004 2005 2000 200
Slide 19: PBITA to Average Funds Invested
PBITA TO AVERAGE FUNDS INVESTED 9.5% Pre Tax WACC Target – 15% % 14.0 12.9 12.8 12.2 12.0 11.1 11.1 10.9 11.2 10.0 10.0 8.0 6.0 4.0 2.0 0.0 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 •97/98 and 98/99 are PBIT to Average Funds Employed •All calculations before significant items © Amcor Ltd 2006
Slide 20: Ranking of Major Global Packaging Companies by Sales
RANKING OF MAJOR GLOBAL PACKAGING COMPANIES BY SALES CALENDAR 2004 Tetra Pak Smurfit-Stone Container Amcor International Paper¹ Crown Holdings Toyo Seikan² Owens-Illinois Alcan Packaging Rexam Ball - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2004 Sales (US$) Notes: 1 Packaging Div
Slide 21: Well Positioned for Future Growth
WELL POSITIONED FOR FUTURE GROWTH Clear & consistent strategy Growth opportunities Strong businesses Manage growth while Strong cash flows generating strong cash Sound balance flows sheet Global packaging leader Quality management © Amcor Ltd 2006
Slide 22: Summary
SUMMARY V1 Reshaping & growing Optimizing 1998 2004 2006 Australian Leading Global Paper & Global Packaging Packaging Packaging Company Company Packaging Industry Leverage position Company Consolidator to improve returns Delivering good growth in both earnings and dividends © Amcor Ltd 2006
Slide 23: Broad Global Platform
BROAD GLOBAL PLATFORM 217 plants in 34 countries Annual Sales $11.1 billion © Amcor Ltd 2006
Slide 24: Amcor PET Packaging
AMCOR PET PACKAGING Key Drivers Opportunities Priorities - product innovation & - strong volume growth - management of resin cost Amcor PET technology - custom pass-through and pricing Packaging - manufacturing - CSD / water - deliver acquisition excellence - continued earnings synergies, including
Slide 25: Amcor Flexibles Group
AMCOR FLEXIBLES GROUP Amcor Key Drivers Opportunities Priorities Flexibles - market leadership - margins will continue - deliver acquisition synergies - geographic spread to improve - implement market focussed & Amcor - product range - Rexam acquisition organisation - strong global customer performi
Slide 26: Amcor Australasia
AMCOR AUSTRALASIA Key Drivers Opportunities Priorities - product breadth & - gradual recovery from - lowering cost base via Amcor leadership the drought restructuring Australasia - operational - investments: - product innovation (23% excellence - 2nd wine bottle plant of Group Sales ) - Petrie mill
Slide 27: Amcor Asia
AMCOR ASIA Key Drivers Opportunities Priorities - Global economic - Business positioned - Tight control of costs Amcor Asia activity well for recovery ( 2% - Volume growth - Growth in tobacco / - Manage margins of Group Sales ) flexibles © Amcor Ltd 2006
Slide 28: Amcor Sunclipse
AMCOR SUNCLIPSE Key Drivers Opportunities Priorities - Economic activity - Well positioned for - tight control of costs Amcor in the USA economic upturn Sunclipse - Continued expansion - minimise new capex outside California (11% of Group Sales ) - USD50/tonne increase - manage margins in liner boar
Slide 29: Our Global Presence: PET Packaging
OUR GLOBAL PRESENCE PET PACKAGING © Amcor Ltd 2006
Slide 30: Our Global Presence: Flexibles
OUR GLOBAL PRESENCE FLEXIBLES © Amcor Ltd 2006
Slide 31: Our Global Presence: Tobacco & Specialty Cartons
OUR GLOBAL PRESENCE TOBACCO & SPECIALTY CARTONS © Amcor Ltd 2006
Slide 32: Our Global Presence: Corrugated Distribution
OUR GLOBAL PRESENCE CORRUGATED DISTRIBUTION © Amcor Ltd 2006
Slide 33: Amcor's Operations in Australia Map
AMCOR’S OPERATIONS IN AUSTRALIA MAP © Amcor Ltd 2006
Slide 34: www.amcor.com
AMCOR WWW.amcor.com