Amcor Plc · NYSE:AMCR
Amcor — Investor Presentation (June 2016)
30 slides from Amcor's investor presentation, June 2016
Slide 1: Amcor Flexibles Americas Investor Presentation
Amcor Flexibles Americas Investor Presentation June 2016
Slide 2: Agenda
Agenda 1 Safety Briefing 2 Introduction to AFA 3 AFA North America Business Update 4 AFA South America Business Update 5 Innovation Agenda 2
Slide 3: Key Messages
Key Messages Global flexible packaging sales by Dedicated organization created in 2015 to focus on the Americas geography flexible packaging market Europe Flexibles market roughly equivalent in size to European market but with higher 26% Americas 25% projected growth rates Projected Growth Rates Inv
Slide 4: Flexibles Americas Footprint
Flexibles Americas Footprint Flexibles Americas 16 plants 7 countries 10 USA 1 Puerto Rico 1 Colombia 1 Brazil 1 Peru 1 Chile 1 Argentina 4
Slide 5: Flexibles Americas sales by production source & end market
Flexibles Americas sales by production source & end market Balanced production footprint Attractive mix of end markets to serve customers’ needs Other 16% Food 38% North America, By Production 57% By End South Source Market America, 43% Healthcare 46% 5
Slide 6: Flexibles Americas market position
Flexibles Americas market position Leading producers: Leading producers: North America South America Amcor Amcor <5% 9% Comp 1 Comp A 15% 6% Comp B 4% Others Comp C 58% Comp 2 3% 10% Others 75% Comp D 3% Comp 3 8% Comp 4 6% Significant opportunity to accelerate growth in the Americas region Source:
Slide 7: Flexibles Americas: A focused strategy
Flexibles Americas A focused strategy Our key growth drivers: Smart investments The best people Global resources with a local We’re expanding our footprint in North Our talent will be the best in the perspective and South America, through business. Supported by ongoing training We’ll grow with our g
Slide 8: Agenda
Agenda 1 Safety Briefing 2 Introduction to AFA 3 AFA North America Business Update 4 AFA South America Business Update 5 Innovation Agenda 8
Slide 9: North America Packaging Trends
North America Packaging Trends Overall flexible packaging …and consumers are Aging demographics to drive Many products in Amcor’s demand is growing… showing preference for growth in pharma, medical, portfolio are already US flexible packaging high-value add packaging, and hospital packaging position
Slide 10: Flexibles North America Executive Summary
Flexibles North America Executive Summary Where to Play Customers: Strengthen relationships with key customers in Pharmaceutical and Fresh Produce segments and expanding global key account relationships for food packaging applications Segments: Focus on segments outpacing market growth, including Nu
Slide 11: Fresh Produce: AF Yuba City and AF Hagerstown
Fresh Produce: AF Yuba City and AF Hagerstown Deluxe acquisition strengthens position in an attractive growth market Growth opportunities in fresh produce… Fresh produce segment sales are ~$250mil with expected aggregate growth rate of 4% p.a. (2012-2017). Segments like Salad Tray Lidstock, Bagged F
Slide 12: AF Yuba City and AF Hagerstown
AF Yuba City and AF Hagerstown A good strategic fit Combined Amcor Participation in US Fresh Produce(1) All Other, Amcor, 28% 18% East coast and west coast Competitor 3, Yuba City, CA facilities to serve customers Hagerstown, MD 17% across the U.S. Competitor 2, Competitor 1, 18% 19% Source: Freedon
Slide 13: Medical North America Executive Summary
Medical North America Executive Summary Where to Play Customers: Deepen relationships with North American medical device manufacturers and hospital sterilization packaging Segments: Focus on segments where Amcor can capitalize on its innovation and vertical integration Specialty products: Grow compe
Slide 14: Medical North America
Medical North America Short-term headwinds… Average medical product usage is down ~4% for 2015 vs 2014 Hospitals continue trend of consolidation, looking for synergies, cost reductions, and inventory reductions More costs pushed to the patient, resulting in fewer elective surgeries …with a positive
Slide 15: Growing our share of the North American flexible packaging market
Growing our share of the North American flexible packaging market … to achieve further Leveraging Amcor’s growth through: strengths… Local production to Technology and product stimulate broader segment portfolio to meet consumer participation expectations Providing attractive value Experience in hig
Slide 16: Agenda
Agenda 1 Safety Briefing 2 Introduction to AFA 3 AFA North America Business Update 4 AFA South America Business Update 5 Innovation Agenda 16
Slide 17: South America packaging trends
South America packaging trends Demographics skewing young and urban Young, growing population Acquisitions Increasing urbanization (both completed Per capita consumption of packaging still well below US and European levels and in the pipeline) position Amcor as a leader in South America Our customer
Slide 18: South America packaging market
South America packaging market Cigarettes & Other Pet foods tobacco 19% Coffee & tea Dried & dehydrated Brazil Pharma foods 48% Other non- Peru foods 6% Packaging Packaging Fresh & Market by Toiletries/ processed Chile Country hygiene Demand by meat & fish 7% ($4.8b) End Market Sugar & chocolate Col
Slide 19: Amcor's South American footprint
Amcor’s South American footprint With the acquisition of Alusa, Amcor is now the leading flexibles packaging business in South America, backed by... Strong, long-standing relationships with large multinational and regional customers Film extrusion, lamination, flexographic and gravure printing Combi
Slide 20: Flexibles South America sales by production source & destination
Flexibles South America sales by production source & destination Multiple production sites… …to serve all key markets in Central & South America Brazil Other Peru Colombia Peru Venezuela Costa Rica By Production By Source Destination Brazil Argentina Colombia Argentina Chile Chile 20
Slide 21: Broad range of product offering
Flexibles South America sales mix by end market Broad range of product offering… Food Health & Personal Pet Food Other Care 15’ Rev: 57% 15’ Rev: 31% 15’ Rev: 5% 15’ Rev: 7% …With value added …Supported by vertically integrated operations & product development expertise product features Vertically i
Slide 22: Alusa acquisition – strategic rationale
Alusa acquisition – strategic rationale Opportunity to become #1 player in South America with a platform for regional growth - supported by Alusa’s strong capabilities and talent Unique opportunity to substantially Achieve immediate scale and leverage the experience of other Amcor businesses in the
Slide 23: Alusa Integration
Alusa Integration An ambitious growth agenda based on synergies, innovation, and customer focus Stay Safe Introduce Amcor Manage the Noise Safety culture Customer Focus Implement Amcor and Regular communication to industry best standards Strengthen and grow keep all stakeholders Goal = Zero Injuries
Slide 24: Becoming the South American leader in flexible packaging
Becoming the South American leader in flexible packaging Leveraging Amcor’s strengths… … to achieve Long-term, wide-ranging growth through: relationships with multi- Targeted investments national companies New products to meet Global product offering local needs Innovation and Bolt-on M&A simplifica
Slide 25: Agenda
Agenda 1 Safety Briefing 2 Introduction to AFA 3 AFA North America Business Update 4 AFA South America Business Update 5 Innovation Agenda 25
Slide 26: AFA's Innovation Focus Areas & Capabilities
AFA’s Innovation Focus Areas & Capabilities Innovation focus areas / customer needs Product Total Cost of Sustainability Differentiation Safety Ownership 26
Slide 27: AFA's Innovation Focus Areas & Capabilities
AFA’s Innovation Focus Areas & Capabilities Innovation capabilities Material Manufacturing Design Science & Processes 27
Slide 28: Adding value through innovation
Adding value through innovation HPC pouches from post-consumer Retort pouches(on the market) recycled material (in development) Latin America represents a big market for retort pouches. 25% of the South American flexibles market is HPC, and Amcor Amcor’s high-performance, cost-competitive solutions
Slide 29: Adding value through innovation
Adding value through innovation AmLite transparent barriers AOF Blister Lidding Amcor’s extensive experience in micro-thin, high barrier coating Amcor Opening Feature is the most senior-friendly, produces a more environmentally friendly, and consumer friendly child-resistant push through blister lid
Slide 30: Summary
Summary AFA was created to focus on growth in the Americas, where Amcor has significant opportunity to grow We’re off to a good start with the Deluxe and Alusa acquisitions this year AFA will continue to focus on growing in the right segments – the ones where we can add value for our customers We ha