Slide 1: Investor Presentation August 2013
For personal use only Investor Presentation August 2013
Slide 2: Disclaimer
Disclaimer For personal use only Forward looking statements 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. F
Slide 3: Cash flow; Balance sheet and debt profile
Cash flow For personal use only A$ million Jun 12 Jun 13 • Strong operating cash flow PBITDA 1,556.9 1,609.8 • Lower net capex and cash restructuring Interest (206.3) (218.2) • Continued improvement in working capital Tax (112.7) (138.0) Base net capital expenditure (398.9) (294.0) • 9.2% in 2012/13
Slide 4: Flexibles and Rigid Plastics results
Flexibles For personal use only • Strong PBIT increase Euro million Jun 12 Jun 13 % • Improved margins and returns Sales revenue 4,683 5,087 8.6 • Acquisition integrations proceeding well PBIT 526.5 589.1 11.9 • Europe & Americas operations Return on sales % 11.2 11.6 • Stable volumes AFE 2,199 2,4
Slide 5: Australasia and Packaging Distribution
Australasia and Packaging Distribution For personal use only A$ million Jun 12 Jun 13 % • Reported PBIT down 4.1% Sales revenue 2,872 2,943 2.5 • Adjusted PBIT down 2.3% PBIT 152.5 146.2 (4.1) • FY13 adjustments $(0.2) million Adjusted PBIT 149.5 146.0 (2.3) AFE 1,632 1,645 0.8 – Profit on property
Slide 6: AAPD business set up for success
AAPD business set up for success For personal use only • New recycled paper mill • Focused portfolio – Exits – Cartonboard – Metal closures • Improved cost position – Align overhead structure to focused portfolio – Streamline operating costs Benefit of $93 million with $12 million realised in 2012/1
Slide 7: Focus on delivering $81 million in cost reduction benefits
Focus on delivering $81 million in cost reduction benefits For personal use only A$ million Total cost Cost reduction Remaining Net cash reduction benefit cost reduction spend benefit achieved in benefits to be remaining FY13 realised Recycled paper mill 50.0 - 50.0 - Portfolio exits / plant closure
Slide 8: Amcor, post demerger overview
Amcor retains strong financial profile post demerger For personal use only • Remain committed to an investment grade credit rating • Strong and improving cash generating capacity • Underpins the ability to: • Progressively increase dividends • Fund growth Amcor remains very well positioned to grow 1
Slide 9: Defensive end markets; Focused on disciplined growth
Defensive end markets For personal use only Sales 4% 3% 14% 32% Beverage Food Healthcare Tobacco Packaging 14% Home & Personal care Other 33% Over 95% of sales into defensive end market segments 16 Focused on disciplined growth Disciplined growth Customer Innovation Emerging Value Acquisitions Excel
Slide 10: Emerging markets are a key opportunity for growth
Emerging markets are a key opportunity for growth For personal use only Asia South Eastern Africa • Extensive footprint America Europe • 71 plants in 28 countries and 9,500 co-workers China Brazil Russia Morocco India Chile Poland Argentina Czech Republic Indonesia • Long history of success Colombia
Slide 11: Summary
Summary For personal use only • Record result • Strong cash flow • Demerger of AAPD optimises shareholder value • AAPD well positioned for success • Amcor focused on disciplined growth Exciting opportunities for further growth 20 Full Year Results 30 June 2013 Appendix slides 10
Slide 12: Results
Results For personal use only A$ million Jun 12 Jun 13 Jun 12 Jun 13 Sales revenue 12,192.9 12,425.3 Weighted average number of shares (m) 1,213.7 1,206.1 PBITDA 1,556.9 1,609.8 EPS (cents) 52.3 57.2 Depreciation and amortisation (495.5) (476.1) PBIT/AFE (%) 15.9 16.4 PBIT 1,061.4 1,133.7 Dividend (
Slide 13: Significant items
Significant items For personal use only A$ million Jun 12 Jun 13 P&L Cash P&L Cash Australasia restructuring – Petrie mill closure - - 119.7 - Australasia restructuring – Other - - 52.0 23.2 Gain on disposal of Fairfield property - - (57.3) 4.1 Transaction, synergy costs and impairments 280.6 181.7
Slide 14: Debt profile; Amcor footprint
Debt profile For personal use only Maturity Facility Drawn at 30 June 2013(1) Net debt currency profile - June 2013 Overdrafts/Leases - 77 Commercial paper (2) 707 CY2013 955 311 CY2014 Other 793 688 Euro CY2015 12% AUD 32% 1,041 70 12% CY2016 296 296 CY2017 108 108 CY2018 491 491 CY2019 768 768 USD
Slide 15: Historic performance – Half year sales revenue and PBIT
Historic performance – Half year sales revenue For personal use only (million) Currency Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Flexibles EUR 935 869 869 1,940 2,248 2,329 2,272 2,411 2,534 2,553 Rigid USD 1,272 1,203 1,064 1,194 1,417 1,693 1,625 1,740 1,497 1,682 Plas
Slide 16: Historic performance – Average funds employed
Historic performance – Half year Average funds employed For personal use only (million) Currency Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Flexibles EUR 1,033 1,009 981 1,463 2,195 2,209 2,195 2,199 2,447 2,459 Rigid Plastics USD 1,655 1,601 1,453 1,460 1,786 1,804 1,798
Slide 17: Flexibles raw material input costs
Flexibles – raw material input costs For personal use only 200 Resins Aluminium 180 160 140 120 100 80 60 Quarterly weighted average index for Western European Polyethylene & Polypropylene resins and film, and PET film Quarterly average index for LME aluminium prices No material movement in raw mate
Slide 18: Rigid Plastics - Product mix
Rigid Plastics - Product mix For personal use only North America Sales Total Sales revenue(1) Latin America Sales revenue(1) USD 3,179 million revenue(1) USD 2,170 million USD 886 million 14% 42% 32% 36% 10% 50% 76% 18% 22% CSDW Custom Diversified Products (1) Sales for the year ended 30 June 2013.
Slide 19: Rigid Plastics – North America climatic conditions
Rigid Plastics – North America climatic conditions For personal use only Cold weather conditions in January to May 2013 vs hot weather conditions in 2012 36 Australasia and Packaging Distribution - Historic performance Sales revenue Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun
Slide 20: AAPD – Adjusted PBIT
AAPD – Adjusted PBIT For personal use only A$ million Australasia Packaging AAPD Distribution Jun 12 Jun 13 Jun 12 Jun 13 Jun 12 Jun 13 Reported PBIT 102.7 102.4 49.8 43.8 152.5 146.3 Less Petrie cartonboard mill earnings (3.0) 2.0 - - (3.0) 2.0 Less one-off items Cost reduction programs - 14.0 - -
Slide 21: Non-IFRS information
Non-IFRS information For personal use only The following notes provide further details of certain non-IFRS financial measures used throughout this presentation: Operating cash flow is cash flow from operating activities calculated in accordance with IFRS and extracted from Amcor’s annual financial s