Slide 1: FY23 Half Year Results
FY23 Half Year Results Ron Delia CEO Michael Casamento CFO February 7, 2023 US February 8, 2023 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
Safety Guided by our values. Our number one priority Recordable-case frequency rate Amcor Values (per million hours worked) 11.2 Includes impact of acquired businesses 4.1 • 24% reduction in number of injuries in 1H23 2.0 2.8 2.1 1.5 • 65% of sites injury free for > 12 months 0.3 2005 2010 2015 2020
Slide 4: Key messages
Key messages 1. Strong quarter and year to date financial performance delivered amid ongoing challenges in the macroeconomic environment 2. Amcor well positioned with a strong, resilient portfolio 3. Fiscal 2023 guidance ranges maintained, however, more cautious on demand outlook 4. Focused on execu
Slide 5: Strong year to date and quarter financial performance
Strong year to date and quarter financial performance Strong operating leverage. Focused on execution, recovering inflation and managing costs 1H23 2Q23 Net sales $7,354m +2% $3,642m +1% • ~$400 million first half cash Net sales (+12% including 10% pass through (+9% including 8% pass through of retu
Slide 6: Flexibles segment
Flexibles segment Solid sales growth and price/mix benefits. Strong cost performance 1H22 1H23 Comparable First half fiscal 2023 highlights constant currency • Net sales of $5.6bn includes price increases of ~$460m Net sales ($m) 5,347 5,591 +3% (9% growth) related to higher raw material costs Adjus
Slide 7: Rigid Packaging segment
Rigid Packaging segment Improved operating cost performance 1H22 1H23 Comparable First half fiscal 2023 highlights constant currency • Net sales of $1.8bn include price increases of ~$210m Net sales ($m) 1,580 1,763 (1)% (13% growth) from higher raw material costs Adjusted EBIT ($m) 117 123 +7% • No
Slide 8: Cash flow and balance sheet
Cash flow and balance sheet Strong balance sheet and December quarter free cash flow in line with last year Year to date cash flow ($ million) 1H22 1H23 First half fiscal 2023 highlights Adjusted EBITDA 976 994 • Strong, investment grade balance sheet Interest and tax payments (157) (203) Capital ex
Slide 9: Fiscal 2023 guidance
Fiscal 2023 guidance Adjusted EPS Guidance • More cautious on demand outlook entering the Previously second half 80.5 (~2%) • FY23 adjusted EPS assumptions include: ~2% cps Previously (~4%) (~5%) • Estimated net interest expense of $240 to $260 77–81 million (pre tax) 5-10% (~3%) cps • Reduced earni
Slide 10: Investing in multiple drivers of sustainable organic growth
Investing in multiple drivers of sustainable organic growth Priority Emerging Innovation Segments Markets >$4 bn sales in higher growth, >$3 bn Emerging Markets sales Driving value through higher value segments: across 27 countries: differentiated packaging: Healthcare Protein Hot-fill beverage Prem
Slide 11: Global healthcare packaging leader – Medical and Pharmaceutical
Global healthcare packaging leader – Medical and Pharmaceutical Approaching $2bn sales Globally recognised products and technology Global footprint, global scale platforms across Flexible and Rigid Packaging 26 sites globally Medical Pharma 50% 50% 8 11 6 1 ▪ Europe ▪ Emerging Markets ▪ North Americ
Slide 12: Substantial opportunities to grow our healthcare business
Substantial opportunities to grow our healthcare business Leveraging global footprint, product and technology platforms with best in class capabilities Large, Growing Market Global leverage M&A Multi-billion dollar global addressable market Leveraging North American expertise Acquisition of MDK adds
Slide 13: Leading the industry on Responsible Packaging
Leading the industry on Responsible Packaging Responsible Packaging: Waste management Consumer Packaging design infrastructure participation Innovating to meet growing demand for Investing in recycled content differentiated, more sustainable products 13 13
Slide 14: Strong foundation for growth & value creation
Strong foundation for growth & value creation Global leader in primary packaging for consumer staples and healthcare with a strong track record Consistent growth from priority segments, emerging markets and innovation Strong cash flow and balance sheet provide ongoing capacity to invest Increasing i
Slide 15: Key messages
Key messages 1. Strong quarter and year to date financial performance delivered amid ongoing challenges in the macroeconomic environment 2. Amcor well positioned with a strong, resilient portfolio 3. Fiscal 2023 guidance ranges maintained, however, more cautious on demand outlook 4. Focused on execu
Slide 16: Appendix slides
Appendix slides Supplementary schedules and reconciliations
Slide 17: FX translation impact
FX translation impact 1H23 currency impact Combined Net income currency exposures(1) Total currency impact $ million Adjusted EBIT (35) EUR 20-30% Adjusted Net income (29) EUR:USD Euro weakened vs USD, Average USD million impact on USD to EUR rate 1H23 0.9870 vs 1H23 adjusted Net income 1H22 0.8615
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
Slide 21: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 21
Slide 22: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 22