Slide 1: FY22 First Quarter Results
FY22 First Quarter Results Ron Delia CEO Michael Casamento CFO November 2, 2021 US November 3, 2021 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: Committed to our goal of 'no injuries'
Safety Committed to our goal of ‘no injuries’ Recordable-case frequency rate Amcor Values (per million hours worked) 11.2 Includes impact of acquired businesses 4.1 • 16% reduction in number of injuries 2.0 2.8 2.2 2.0 • 62% of sites injury free for >12 months 0.4 2005 2010 2015 2020 2021 1Q22 1Q22
Slide 4: Key messages
Key messages 1. Navigating well in a challenging external environment 2. Solid first quarter in line with expectations 3. Fiscal 2022 guidance reaffirmed 4. Strong foundation and strategy for growth and value creation 4
Slide 5: Solid first quarter financial result
Solid first quarter financial result Earnings growth and increased returns to shareholders Revenue EBIT EPS Focused on the right priorities • Security of supply for customers • Price to recover inflation $3,420M $381M 17.7 cents • Optimize mix • Cost management +1% +7% +12% $64 million of shares rep
Slide 6: Flexibles segment
Flexibles segment Strong margin management and earnings growth 1Q21 1Q22 Comparable First quarter highlights constant currency • Sales of $2.6bn includes price increases of ~$210 Net sales ($m) 2,400 2,634 +1% million (9% growth) related to higher raw material costs Adjusted EBIT ($m) 312 339 +8% •
Slide 7: Rigid Packaging segment
Rigid Packaging segment Earnings impacted by supply chain constraints 1Q21 1Q22 Comparable First quarter highlights constant currency • North America - Beverage volumes in line; Specialty Container volumes lower Net sales ($m) 698 786 +1% • Latin America - Volumes up DD and earnings higher Adjusted
Slide 8: Cashflow, balance sheet & cash returns to shareholders
Cashflow, balance sheet & cash returns to shareholders Balance sheet capacity to invest, execute M&A and return cash to shareholders Year to date cash flow ($ million) 1Q21 1Q22 First quarter highlights Adjusted EBITDA 460 486 • Growing EBITDA Interest and tax payments (125) (54) • Working capital i
Slide 9: Guidance for fiscal year ending June 2022 reaffirmed
Guidance for fiscal year ending 30 June 2022 reaffirmed For fiscal 2022 the Company continues to expect: Adjusted EPS growth of approximately 7 to 11% on a comparable constant currency basis, or approximately 79.0 to 81.0 cents per share on a reported basis assuming current exchange rates prevail th
Slide 10: Strong foundation for growth and value creation
Strong foundation for growth and value creation Global industry leader with proven track record and clear strategy Consistent growth from consumer and healthcare end markets Attractive and growing dividend with current yield ~4% Growing cash flow and strong balance sheet provides ongoing capacity to
Slide 11: Amcor Shareholder Value Creation Model
11 Amcor Shareholder Value Creation Model Substantial cash flow funds multiple drivers of value for shareholders Capital expenditure (~ $500 m) EPS growth SIGNIFICANT ~ 5-10% Total ANNUAL Acquisitions / Shareholder Value share repurchases CASH FLOW (~ $300-400 m) (EPS growth + yield) 10-15% per year
Slide 12: Multiple levers drive organic profit growth
Multiple levers drive organic profit growth Higher growth, higher value segments Emerging markets Innovation Healthcare, protein, coffee, pet food, >$3bn emerging markets business across Differentiated products hot fill beverage 27 countries Volume growth & margin expansion in higher value segments
Slide 13: Sustainability: Amcor's greatest opportunity for growth and differentiation
Sustainability: Amcor’s greatest opportunity for growth and differentiation Responsible Packaging: Waste management Consumer Packaging design infrastructure participation Leveraging scale and capabilities to meet growing demand for more sustainable packaging Circular bottle to bottle Food grade flex
Slide 14: Key messages
Key messages 1. Navigating well through a challenging external environment 2. Solid first quarter in line with expectations 3. Reaffirmed fiscal 2022 guidance 4. Strong foundation and strategy for growth and value creation 14
Slide 15: Appendix slides
Appendix slides 2022 First Quarter results – supplementary schedules and reconciliations
Slide 16: Focused global portfolio
Focused global portfolio $12.9 bn combined sales by product type, end market and geography Closures Western Other Other 2% Europe Cartons consumer 4% 9% Rigids 24% 9% 21% HPC 7% Food product end 44% Healthcare geography Emerging type 12% market markets 26% North America 47% Flexibles Beverage ANZ 68
Slide 17: FX translation impact
FX translation impact 1Q22 currency impact Combined net income currency exposures(1) Total currency impact $ million Adjusted EBIT 2 EUR, 20-30% Adjusted net income 2 EUR:USD Euro strengthened vs USD, USD million impact on FY Average USD to EUR rate 1Q22 adjusted net income 0.8482 vs 1Q21 0.8558 1%
Slide 18: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 18
Slide 19: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 19
Slide 20: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 20