Slide 1: Disclaimer
www.amcor.com 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 gene
Slide 2: Full Year Profit Results
Investor Presentation Overview of Results - Ken MacKenzie The Way Forward - Ken MacKenzie PET /Sunclipse/Asia - Leslie Desjardins Australasia /Flexibles - Ken MacKenzie Finance - Leslie Desjardins Summary - Ken MacKenzie Q&A - All Full Year Profit Results 06/07 07/08 ∆% PBITDA 1,198.9 1,070.1 (10.7)
Slide 3: Continuing PBIT on Constant Currency
Continuing PBIT on Constant Currency $m 06/07 07/08 ∆% Total PBIT in constant currency ($m) 731.9 705.3 (3.6) Discontinued PBIT($m) 94.2 7.6 Continuing PBIT($m) 637.7 697.7 9.4 Positive earnings momentum for the past 18 months Continuing Business PBIT Performance $m 06/07 07/08 ∆% PET PET (USD) Exce
Slide 4: Continuing Business PBIT Performance and Cash Flow
Continuing Business PBIT Performance $m 06/07 07/08 ∆% Flexibles Good results in Food & Healthcare PET (USD) 153.7 198.8 29 Restructuring program progressing Australasia (AUD) 193.7 188.5 (3) well Flexibles (€) 119.3 115.9 (3) Overtrading in tobacco packaging had a significant impact on earnings Sun
Slide 5: The Way Forward: Capital Discipline
The Way Forward Capital Discipline EXECUTION FOCUS Capital Expenditure Strong Customer Capital market and market Low cost discipline positions focused Base capital $244 million Gross spending $394 million compares to depreciation and Capital discipline continues amortisation of $413 million to impro
Slide 6: The Way Forward
The Way Forward Agenda 2006 - 2008 Strong market positions Divested $1.25 billion in assets EXECUTION FOCUS Strong market Customer and market Low cost Capital Defined “high growth” segments discipline positions focused Completing the restructuring in Flexibles Europe & Fibre packaging Developed Core
Slide 7: Procurement, Lean, Existing Platform
Customer & Market Focus Low Cost Capital Discipline Talent Procurement Lean Existing Platform Customer & Market Focus Low Cost Capital Discipline Talent Supply Chain Management Working Capital Capital Expenditure
Slide 8: Transition to Faster Growth
Customer & Market Focus Low Cost Capital Discipline Talent Co-worker Engagement People Development Performance Management Transition to Faster Growth Customer & Market Focus Low Cost Capital Discipline Talent GROWTH SEGMENTS Custom PET Flexibles & Tobacco Packaging Beverage in Australasia BOTTOM LIN
Slide 9: Amcor PET Packaging
Amcor PET Packaging 12.0% US$m 06/07 07/08 Sales 2,411 2,636 9.6% PBIT 153.7 198.8 AFE 1,601 1,651 PBIT/AFE% 9.6 12.0 Cash Flow 383 230 All data continuing operations, except cash flow 06/07 07/08 Excellent performance with PBIT up 29% PBIT US$ m Returns up from 9.6% to 12.0% Amcor PET Packaging Vol
Slide 10: Amcor's Custom Container Growth
Changing Product CSDW Custom Beverage Mix – Value Breakdown DP (Diversified Products) Total Sales: North America Sales Latin America Sales US$m 2,636 US$m 1,687 US$m 856 45% of total sales are in the custom and diversified products market Amcor’s Custom Container Growth North America Total Volume Bi
Slide 11: Custom Container Growth: Latin America
Amcor’s Custom Container Growth North America Total Volume Billions of Units PowerflexTM Patented technology 275% volume growth in 07/08 Growth above the industry average Over twenty products Two national brands Latin America Total Volumes Custom Beverage Volumes Billions of Units Millions of Units
Slide 12: Latin America and PET Packaging Strategy
Latin America Strong performance in Mexico: US$16 million improvement over the past two years Focus for Latin America: Operational improvement Cost reduction initiatives Selective growth Amcor has strong market positions and can leverage technology, manufacturing excellence and customer relationship
Slide 13: PET Packaging Strategy and Outlook
PET Packaging - Strategy CSD/Water Maintain a presence where appropriate Invest only with strategic partners in advantaged markets supported by strong commercial agreements Investment in injection favoured over blowmolding PET Packaging - Outlook Continued growth in custom beverage Further improveme
Slide 14: Amcor Sunclipse
Amcor Sunclipse 26.9% US$m 06/07 07/08 Sales 984 995 PBIT 49.8 55.0 20.7% AFE 240 204 PBIT/AFE% 20.7 26.9 Cash Flow 73 92 06/07 07/08 Stable margins Strong cash generation PBIT US$m Improvement in working capital Amcor Sunclipse Sales US$m 06/07 07/08 Distribution 761 765 Man. Products 224 221 Corru
Slide 15: Amcor Asia
Amcor Asia 10.4% SG$ m 06/07 07/08 Sales 149 152 9.9% PBIT 42.6 47.2 42.6 47.2 AFE 429 455 PBIT/AFE% 9.9 10.4 Cash Flow 22 15 06/07 07/08 Earnings growth of 11% PBIT SG$ m Amcor Asia AMVIG Earnings HK$ m 06/07 07/08 PAT 306.1 449.6 Amcor’s Equity Profit 123.8 162.6 AMVIG is China’s leading tobacco p
Slide 16: Amcor Australasia and Fibre Packaging
Amcor Australasia A$m 06/07 07/08 11.2% 10.8% Sales 2,275 2,215 PBIT 193.7 188.5 AFE 1.734 1,744 PBIT/AFE% 11.2 10.8 Cash flow 256 251 All data continuing operations, except cash flow 06/07 07/08 Solid performance in glass PBIT A$m and flexibles Fibre Packaging DIFOT Performance Operational Summary
Slide 17: Corrugated Price Increase and New Recycled Paper Mill
Corrugated Price Increase Total input cost increases of $70 million over the past three years Wastepaper up more than 50% Starch, energy and freight all up between 15% to 20% Price increase of 12% to all customers Effective October 1 for non-contract customers Previous increases will be taken into c
Slide 18: Beverage Can, Flexibles and Glass
Beverage Can & Flexibles Beverage Cans Flexibles Volumes flat for the year Solid year Down 3% in the second half Improved earnings and returns Operational inefficiencies at Benefits from capital expenditure Queensland plant during upgrade Poor dairy season in New Zealand Product innovation and impro
Slide 19: Australasian Summary and Amcor Flexibles
Australasian – Summary Strategy Outlook Good industry structures Steady performance in glass and continuing flexibles Amcor number one or two in each segment Improved performance in Flexibles, Glass and Beverage Can beverage cans growing markets and businesses well capitalised Lower earnings in fibr
Slide 20: Raw Material Input Costs and European Restructure
Amcor Flexibles Raw Material Input Costs 125 110 95 Jul‐03 Jul‐04 Jul‐05 Jul‐06 Jul‐07 Jan‐03 Jan‐04 Jan‐05 Jan‐06 Jan‐07 Jan‐08 Index of Raw Material Input Costs Raw material input costs increased in 2007/08. Short term cost outlook is for stability at current high levels. European Restructure Over
Slide 21: European Restructure
European Restructure Announced Consolidation of the conversion facilities Closure of film extrusion operations at Barcelona, UK and Denmark €28 million euros investment in new extrusion equipment €25 million euros investment in Poland to increase capacity Sale of commodity film businesses in Sweden
Slide 22: Food Flexibles and Healthcare Flexibles
Food Flexibles Improved product mix Forgoing of unprofitable volumes Improving operational performance Plant efficiencies Lower SG&A costs Restructuring benefits Solid improvement in earnings for both the Food and Healthcare businesses Healthcare Flexibles Focus on improving product mix Benefits fro
Slide 23: Tobacco Packaging and Flexibles Strategy
Tobacco Packaging Overtrading in Eastern Europe Earnings rebound in 2008/09 and Russia Solid start to the current year More complex product mix with Plant start-up costs not higher value add products repeated Benefits from: Earnings down €8 million New plant in Ukraine €5 million operational Capital
Slide 24: Flexibles Outlook and Financial Highlights
Flexibles – Outlook Healthcare and Food flexibles Benefits from flexibles restructuring First year of new plant in Poland Improving product mix in Healthcare Slowing economic conditions Tobacco Packaging Strong rebound from difficult 2007/08 year Benefits from capital expenditure Strong improvement
Slide 25: Results All Operations – Before Significant Items
Results All Operations – Before Significant Items A$m June 07 June 08 Sales 10,875.2 9,316.8 PBITDA 1,198.9 1,070.1 (128.8) From: Discontinued Operations (130.5) Translation Impact (69.0) Continuing Operations 70.7 (128.8) Continuing businesses PBITDA up $71 million on a constant currency basis Resu
Slide 26: Earnings Growth and Significant Items
Earnings Growth Normalised for Discontinued Ops, Share Buy Back & Constant Currency A$m First Half Second Half Full Year PAT 06/07 185 212 397 Disc ops (PBIT) (28) (59) (87) Interest Savings on Cash Received 20 23 43 Tax 2 8 10 Net Impact of Disc Ops (after tax) (6) (28) (34) PAT 06/07 – Adjusted fo
Slide 27: Cash Flow - All Operations
Cash Flow - All Operations A$m June 07 June 08 PBITDA 1,198.9 1,070.1 Disc ops & FX impact Interest (203.5) (192.4) Lower average debt Tax (80.1) (62.8) Maintaining low tax rate Base net capital expenditure (300.6) (243.5) Cash significant items (106.2) (136.6) Restructures Movement in working capit
Slide 28: Working Capital Performance and Capital Structure
Working Capital Performance Period End Working Capital Average Working Capital to Sales % A$m 1,516 $140 million 10.8 1,105 823 683 9.8 Continuing 04/05 05/06 06/07 07/08 All operations, before factoring Capital Structure A$m June 07 June 08 +/- Equity 3,581 3,003 (578) Net debt 2,884 2,252 (632) Ba
Slide 29: Debt Profile
Debt Profile Debt Maturity Profile US Private Bank Facilities Bank A$m Placement, USD, A$670m Drawn Undrawn Total A$520m Facilities/CP AUD, A$550m < 1 year 680 271 951 1 -2 years 255 65 320 > 2 years 1,576 266 1,842 Total 2,511 602 3,113 Bank Facilities Multi Currency Eurobond, Bank Facilities A$141
Slide 30: Full Year Results Presentation August 2008
Full Year Results Presentation August 2008 Www.amcor.com