Slide 1: 2021 First Quarter Results
2021 First Quarter Results Ron Delia CEO Michael Casamento CFO November 5, 2020 US November 6, 2020 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: Committed to our goal of 'no injuries'
Safety Committed to our goal of ‘no injuries’ Recordable-case frequency rate (per million hours worked) • Staying safe and healthy – our first 4.5 4.1 4.0 4 Acquisition priority for 2021 fiscal year impacts 3.5 3.4 3.2 • 30% reduction in number of injuries 3 2.6 2.6 2.8 2.6 compared with 1Q20 2.5 2.
Slide 4: Key messages for today
Key messages for today Outstanding first quarter results and outlook raised 1. Strong start to fiscal 2021 in Flexibles and Rigid Packaging 2. Raised EPS guidance for the 2021 fiscal year 3. The Amcor investment case has never been stronger 4
Slide 5: Outstanding first quarter results
Outstanding first quarter results Strong organic growth plus acquisition synergies +20% +9% +90bps Shareholder returns • Quarterly dividend increased to 11.75 US cps EPS EBIT EBIT margin • $150 million share buy-back announced 15.8 $358 11.6% cents million Notes: EPS, EBIT and EBIT margins presented
Slide 6: First quarter results - Flexibles segment
First quarter results - Flexibles segment 11% EBIT growth compared with last year Highlights Adjusted EBIT margin • Adjusted EBIT growth 11% on a constant currency basis Adjusted EBIT ($m) • 4% organic growth • 7% ($20 million) synergy benefits 312 13.0% 283 11.6% • Higher volumes • Low to mid singl
Slide 7: Bemis acquisition cost synergies
Bemis acquisition cost synergies Synergies on track with $50-$70 million expected in fiscal 2021 Cost synergies delivered ($ million) Total cost synergies expected ($ million) 180 130-150 20 100 80 Delivered FY20 Incremental 1Q21 Cumulative to date Cumulative by end FY21 Cumulative by end FY22 7
Slide 8: First quarter results - Rigid Packaging segment
First quarter results - Rigid Packaging segment 7% EBIT growth compared with last year Highlights Adjusted EBIT ($m) Adjusted EBIT margin • Adjusted organic EBIT growth of 7% on a constant currency basis • Higher volumes and positive mix 69 72 10.3% 9.7% • North America volumes up • Beverage volumes
Slide 9: First quarter results – cash flow, balance sheet & currency
First quarter results – cash flow, balance sheet & currency Strong financial profile and on track for adjusted free cash flow of >$1 billion in FY21 Adjusted free cash flow in line with expectations Strong investment grade balance sheet Year to date cash flow ($ million) 1Q20 1Q21 Balance sheet Sept
Slide 10: Raised EPS guidance for 2021 fiscal year
Raised EPS guidance for 2021 fiscal year For 2021 fiscal year the Company expects: Adjusted constant currency EPS growth of approximately 7 to 12% (previously 5 to 10%) compared to 64.2 cents in 2020 fiscal year Assuming current exchange rates prevail for the remainder of the year, it is estimated t
Slide 11: Why invest in Amcor?
Why invest in Amcor? As presented in Amcor’s September 2020 Investor Briefing Global industry leader with proven track record and clear strategy Consistent growth from consumer and healthcare end markets Attractive and growing dividend with current yield >4% Strong balance sheet, substantial capacit
Slide 12: Amcor Shareholder Value Creation Model
12 Amcor Shareholder Value Creation Model Strong cash flow funds multiple drivers of value for shareholders Capital expenditure (~ $500m) EPS growth ~ 5-10% STRONG, Total DEFENSIVE Acquisitions / (Organic ~ 3-4%) Shareholder Value buy-backs CASH FLOW (~ $300-400m) (EPS growth + yield) 10-15% per yea
Slide 13: Sustainability at Amcor
Sustainability at Amcor Our Pledge for 2025 Part of our winning aspiration Develop all our packaging to be recyclable or reusable by and our best opportunity for 2025 Significantly increase our use differentiation and growth of recycled materials in our packaging Work with others to drive consistent
Slide 14: Responsible packaging is the answer
Responsible packaging is the answer Achieving less waste takes: Waste management Consumer Packaging design infrastructure participation Amcor is uniquely positioned as industry leader with Scale, Resources and Capabilities 14 14
Slide 15: Innovating to deliver differentiated responsible packaging
Innovating to deliver differentiated responsible packaging Full range of responsible packaging options High performing AND designed to be recycled solutions Recycle ready Aluminum Paper AmLite Heatflex Breakthrough aluminum-free high barrier structure launched September 2020 100% recycled Compostabl
Slide 16: Summary
Summary Outstanding first quarter results and outlook raised 1. Strong start to fiscal 2021 in Flexibles and Rigid Packaging 2. Raised EPS guidance for the 2021 fiscal year 3. The Amcor investment case has never been stronger 16
Slide 17: Appendix slides
Appendix slides 2021 First quarter results – supplementary schedules and reconciliations
Slide 18: FX translation impact
FX translation impact 1Q21 currency impact Combined net income currency exposures(1) Total currency impact $ million Adjusted EBIT (6) EUR, 20-30% Adjusted net income (4) EUR:USD Euro strengthened vs USD, USD million impact on Average USD to EUR rate 1Q21 1Q21 adjusted net income 0.8558 vs 1Q20 0.89
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