Amcor Plc · NYSE:AMCR
Amcor — Shareholder Meeting (October 2004)
42 slides from Amcor's shareholder meeting presentation, October 2004
Slide 1: Amcor
Slide 2: Annual General Meeting October 2004
ANNUAL GENERAL MEETING October 2004
Slide 3: Disclaimer
Disclaimer 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 gener
Slide 4: Net Operating Profit
Net Operating Profit $M 500 431 440 400 317 300 200 2002 2003 2004 Fiscal Year Ended 30 June © Amcor Ltd 2004 Slide 4
Slide 5: Full Year Result
Full Year Result • $34 million impact from currency translation • Earnings up 10% on a constant currency basis © Amcor Ltd 2004 Slide 5
Slide 6: Amcor Australasia
AMCOR AUSTRALASIA
Slide 7: Amcor Australasia
Amcor Australasia 2004 2003 Sales $2,538m $2,456m PBITA $316.5m $282.8m • PBITA up 12% • Returns up from 15.6% to 17.3% © Amcor Ltd 2004 Slide 7
Slide 8: Sales per employees
Sales per employees Sales per Employee $’000’s $265K +30% $345K EMPLOYEES 8600 2700 SALES 8400 $m 2600 8200 2500 8000 7800 2400 EMPLOYEES SALES 7600 2300 7400 2200 7200 2100 7000 6800 2000 99/00 00/01 01/02 02/03 03/04 © Amcor Ltd 2004 Slide 8
Slide 9: Wine bottle glass plant
Wine bottle glass plant • Returns and earnings exceeding expectations • Second furnace to commence production in January 2005 • Capacity will be over 400 million bottles © Amcor Ltd 2004 Slide 9
Slide 10: Australasian performance
Australasian performance • Started the year well • Full year earnings expected to be higher © Amcor Ltd 2004 Slide 10
Slide 11: Amcor PET Packaging
AMOR PET PACKAGING
Slide 12: PET 2004 performance
PET 2004 performance • Earnings up 3.1% to US$190 million • Returns at 10.0% © Amcor Ltd 2004 Slide 12
Slide 13: European PET
European PET • Strong volume growth of 10% • Positive development of the PET beer bottle • Earnings up 20% © Amcor Ltd 2004 Slide 13
Slide 14: Latin American PET
Latin American PET • Volumes up 45% • Earnings up 25% • Acquisitions of Arca and Alcoa’s PET operations performing well © Amcor Ltd 2004 Slide 14
Slide 15: North American PET
North American PET • Overall volumes up 13.6% • Earnings down 13% • Plant closures and business restructuring underway • Canadian and US operations have been integrated © Amcor Ltd 2004 Slide 15
Slide 16: North American PET pricing initiative
North American PET pricing initiative • Prices need to better reflect costs • Contracts for higher prices on the west coast of the US effective from January 2005 • No additional plant closures in the foreseeable future © Amcor Ltd 2004 Slide 16
Slide 17: First Quarter and Outlook for PET
First Quarter and Outlook for PET • Volumes up 5% • European earnings down due to cool summer • Latin American earnings up with Brazil going well • North American earnings slightly lower than last year • Increase expected for full year earnings © Amcor Ltd 2004 Slide 17
Slide 18: Amcor Flexibles
AMOOR FLEXIBLES
Slide 19: Flexibles 2004 performance
Flexibles 2004 performance • Earnings up 5% to 78 million Euros • Returns lower at 9.6% © Amcor Ltd 2004 Slide 19
Slide 20: Flexibles
Flexibles • Three key segments – Processed foods – Fresh foods – Healthcare packaging © Amcor Ltd 2004 Slide 20
Slide 21: Fresh Food and Healthcare
Fresh Food and Healthcare • Good performance for both groups • Earnings higher • Both have started this year well • Rexam Healthcare acquisition performed strongly © Amcor Ltd 2004 Slide 21
Slide 22: Processed food
Processed food • Difficult 2003/2004 year • Operational underperformance • Substantial restructuring underway © Amcor Ltd 2004 Slide 22
Slide 23: Business group restructuring
Business group restructuring • Two plants to close • Reduction of 650 people • Cost approximately 60 million Euros • Benefits approximately 30 million Euros © Amcor Ltd 2004 Slide 23
Slide 24: First Quarter and Outlook
First Quarter and Outlook • Year has started strongly • Confident of recovering raw material price increases as they occur • Significant restructuring to deliver excellent returns • New plant in Novgorod, Russia • Targeting a strong increase in earnings for the 2005 year © Amcor Ltd 2004 Slide 24
Slide 25: Amcor Sunclipse North America
AMCOR SUNCLIPSE NORTH AMERICA
Slide 26: Sunclipse 2004 performance
Sunclipse 2004 performance • Earnings up 18% to US$41 million • Returns lower at 12.6% © Amcor Ltd 2004 Slide 26
Slide 27: First Quarter and Outlook
First Quarter and Outlook • Solid performance with earnings well up on last year • Two $50 per tonne increases for corrugated paper passed through • Returns of more than 15% are expected for 2004/2005 © Amcor Ltd 2004 Slide 27
Slide 28: Amcor Rentsch Amcor Closures
AMCOR RENTSCH AMCOR CLOSURES
Slide 29: Rentsch and Closures 2004 performance
Rentsch and Closures 2004 performance • Earnings up 29% to 60 million Euros • Returns at 13.9% © Amcor Ltd 2004 Slide 29
Slide 30: Amcor Rentsch
Amcor Rentsch • Another strong year with good growth in volumes and sales • The fourth press in Russia fully loaded – Fifth press due for commissioning in December © Amcor Ltd 2004 Slide 30
Slide 31: Amcor Closures
Amcor Closures • Bericap had a strong year • Amcor White Cap had a difficult year – Good progress on cost reduction initiatives • A number of significant initiatives underway to ensure an improved result in 2004/2005 • Difficult first quarter due to poor weather • A 15% price increase from January 1
Slide 32: Rentsch and Closures first quarter results
Rentsch and Closures first quarter results • First quarter results down • Tax increases on tobacco products in Europe • Full year result expected to be higher © Amcor Ltd 2004 Slide 32
Slide 33: Amcor Asia
Slide 34: Amcor Asia 2004 performance
Amcor Asia 2004 performance • Earnings up 13% to $37 Sing • Returns at 13.2% © Amcor Ltd 2004 Slide 34
Slide 35: Asia Summary
Asia Summary • Strong performance in tobacco packaging • Continued growth in flexibles • Corrugating down • Business poised to grow in improving economic conditions • Good first quarter • Targeting improved earnings and returns © Amcor Ltd 2004 Slide 35
Slide 36: Group Summary
GROUP SUMMARY © Amcor Ltd 2004 Slide 36
Slide 37: Amcor Group – First Quarter and Outlook for the Year
Amcor Group – First Quarter and Outlook for the Year • First quarter profit after tax up 5% • Targeting a combined 20% growth over the next two years • Successful implementation of resin price increases in Europe © Amcor Ltd 2004 Slide 37
Slide 38: Amcor Group – First Quarter and Outlook for the Year
Amcor Group – First Quarter and Outlook for the Year • Successful negotiations with CSD and water pricing in North America • Restructuring of PET and Flexibles businesses proceeding to schedule • Anticipated ongoing improvement in the US economy will assist Amcor Sunclipse maintain improved earnings
Slide 39: Amcor today
Amcor today • The packaging industry has and will continue to consolidate as expected • Strong positions developed in chosen markets • Enables leveraging to obtain improving returns – Scale, technology and customer relationships • Returns above cost of capital • Strong and secure cash generation fro
Slide 40: Growth and yield are possible
Growth and yield are possible • The targets for the next phase of development are: – Grow earnings off the existing asset base –Targeting 20% earnings growth over the next two years – Generate sufficient cash to both –Increase the dividends in line with earnings –Reinvest in the business for both ma
Slide 41: Summary
Summary Reshaping & growing Optimizing 1998 2004 2006 Australian Leading Global Paper & Global Packagin Packagin Packagin g g g Packaging Industry Company Leverage position to Company Company Consolidator improve returns Delivering good growth in both earnings and dividends © Amcor Ltd 2004 Slide 41
Slide 42: www.amcor.com
AMCOR WWW.amcor.comM