Slide 1: Amcor Sunclipse North America Analyst Presentation
1 Amcor Sunclipse North America Analyst Presentation May 13, 2004
Slide 2: Safety Performance: LTI Frequency Rate
2 Safety Performance LTI – Frequency Rate 6 5 LTIFR (Rolling 12) 4 3 2 1 0 Dec'01 Jun'02 Dec'02 Jun'03 Dec'03 Jun'04 Distribution Corrugators MPP ASNA
Slide 3: Safety Performance: RC Frequency Rate
3 Safety Performance RC Frequency Rate 18 16 14 RCFR (Rolling 12) 12 10 8 6 4 2 0 Dec'01 Jun'02 Dec'02 Jun'03 Dec'03 Jun'04 Distribution Corrugators MPP ASNA
Slide 4: ASNA Organisational Structure
4 ASNA Organisational Structure Amcor Sunclipse North America Corrugators Manufactured Packaging Products Distributors Sales $140.3M Sales $206.9M Sales $645.9M 278 CoWorkers 747 CoWorkers 1,229 CoWorkers Corru Kraft II Mercury Die & Container KHL Montebello KHL San Diego KHL Hayward KHL Riverside M
Slide 5: Distribution Unit Locations
5 Distribution Unit Locations Northern California Fresno Hayward Sacramento Salinas San Jose Southern California Fullerton Montebello Riverside San Diego Santa Barbara Pushpins Flexibles Hubs KHL Locations
Slide 6: Manufacturing Unit Locations
6 Manufacturing Unit Locations Box Plants Alhambra Fullerton (2) Santa Ana Santa Clara San Marcos Sycamore, IL Union City Foam Fabrication/ Wood Crating La Mirada Corrugators Alhambra Buena Park (2) Fullerton
Slide 7: Sunclipse Business Model
7 Sunclipse Business Model Internal Sales % External Sales % | | Corrugators | 43.2% | | 56.8% | | Sheet Plants | 34.1% | 65.9% | | Distribution | 100% |
Slide 8: Sunclipse Business Model
8 Sunclipse Business Model Corrugator Intercompany Distribution Sales Sales $79.6M $645.9M Corrugator External Sales $60.7M Man. Pack. Products Intercompany Sales $136.4M Man. Pack. Products External Sales $70.5M Corrugator Intercompany Corrugator Exernal MPP Intercompany MPP External Distribution
Slide 9: Corrugated Market Structure
9 Corrugated Market Structure Number of Corrugators in California Southern Northern California California Integrateds 40 Integrateds 12 18 (CK 4) 26 (CK 0) Independents 6 Sheet Feeders Only Indep- CK endents 4 Integrateds 5 Independents 5 10 Corru-Kraft 4 Total 14
Slide 10: MPP Custom vs. Stock Manufactured
10 MPP Custom vs. Stock Manufactured Volume FY 1996 FY 2004 KHL Stock KHL Stock 1.9% Outside 25.6% Customers Outside 48.9% Customers 34.1% KHL Custom KHL 49.2% Custom 40.3% 1.3B Sq ft 2.4B Sq ft
Slide 11: Raw Materials
11 Raw Materials Major Suppliers 2003 Purchases International Paper 48.9 Sealed Air 24.6 McKinley Paper 23.4 Stone Container 18.6 Pactiv 9.8 Weyerhaeuser 7.4 Allan Company 6.9 AMCOR Australia 6.4 Cryovac 3.9 Airtech 3.9 Total 153.8 % of Total 33.2%
Slide 12: Distribution Sales by Category
12 Distribution Sales by Category % of Total Business Bags 3.2% 7.3% 9.9% 4.6% Lbl/Strap/Tying 3.1% Chipboard 4.6% 3.2% Other 3.0% Jan. / San. 2.9% Office & Shp Room 13.2% 1.9% Mtrl Handling Corrugated Cushioning Tape & Equipment 43.2% Flex. Pkg./ Wrapping Misc Products
Slide 13: Distribution Salesforce
13 Distribution Salesforce June 1996 Current 197 - Full commission 315 - Full commission 43 - Rookies 103 - Rookies 8 - In house 9 - In house 248 - Total 427 - Total
Slide 14: Distribution Salesforce
14 Distribution Salesforce Profile of a Kent H. Landsberg Salesperson ◆ Commission Only ◆ No Territories (People Buy From People) ◆ Unmatched Support/Infastructure – Culture – Facilities/Equipment – Computer Systems (E-Courier, CRM, Communication) – Supplier Partnerships ◆ Management, Mentoring, Sup
Slide 15: Distribution Competition
15 Distribution Competition ◆ Xpedx - $6.2B ◆ Unisource (Bain Capital - formerly GP) - $3.3B ◆ Uline - $0.6B ◆ Tharco - $0.5B ◆ SCA (Tuscarora) - $0.3B (2000) ◆ Stephen Gould - $0.3B ◆ Ernest Paper - $0.1B Competition remains focused at a local level. National accounts and multi-location opportuniti
Slide 16: Distribution Competition
16 Distribution Competition • Xpedx - Low key - Not a factor at this time • Unisource - Heavy recruitment of KHL reps - Pressure from investors - ASNA well equipped due to high service level and customer orientation • SCA - Closing / divesting some molded foam - Lately quiet • Stephen Gould - High v
Slide 17: Dashboard
17 AMCOR NORTH AMERICA Hyperion Analyzer File Edit Display Go Tools Help S fi- @ =a? # ja Forward Home Open 7 Navigate Display Tools Print Help Logout ® YB Selection criteria for daily data Selection criteria for monthly data DSO | 1007 --KHLSanDiego ||, 1007 --KHLSanDiego ¥ ae 1007 KHL San Diego Ac
Slide 18: Business Risk Assessment Summary
18 Business Risk Assessment Summary ◆ Existing Market Threats • Manufacturing Capacity Increases in So. California • Loss of Major Corrugated Customers • Unisource and Xpedx Divestitures • Competitive Reaction to Continued Expansion • Defection of Key Distribution Sales People ◆ Raw Materials • Pape
Slide 19: Future Landscape
19 Future Landscape ◆ Small to medium sized customers conducting majority of business through e-commerce ◆ Medium customers migrating to Mexico, increasing capabilities ◆ High volume customers seeking more outsourced solutions ◆ ASNA manufacturing “balanced” ◆ Continued consolidation – Tharco – Larg
Slide 20: Thank you for your time and attention
20 Amcor Sunclipse North America Thank you for your time and attention