Slide 1: Analyst Presentation Flexibles Europe & Americas
Analyst Presentation October, 2010 Flexibles Europe & Americas
Slide 2: Zurich office safety
Zurich office safety In case of emergency – Follow the emergency exit signs to the back side of the building – Go right and follow the marked route to the meeting point (“not guilty” restaurant) 2
Slide 3: Agenda
Agenda 1 Amcor Flexibles Europe & Americas 2 Business Units 3 Procure Plus 4 Innovation 3
Slide 4: Agenda
Agenda 1 Amcor Flexibles Europe & Americas 2 Business Units 3 Procure Plus 4 Innovation 4
Slide 5: Flexibles Europe & Americas
Flexibles Europe & Americas 5
Slide 6: Safety – LTI & RC Frequency Rates
Safety – LTI & RC Frequency Rates LTIFR RCFR 5 10 4.5 9 4 8 3.5 7 3 6 2.5 5 2 4 1.5 3 1 2 0.5 1 0 0 Jan '08 Jun '08 Jun '09 Jan '10 Jun '10 LTIFR RCFR Focused on Changing Behaviour 6
Slide 7: European competitive landscape
European competitive landscape 30% 25% 20% 15% 10% 5% 0% Amcor Constantia Sealed Air Clondalkin Wipak Mondi Huhtamaki Bemis Suedpack 7 Source: PCI Euroflex 2009 Annual
Slide 8: Flexibles Europe & Americas – Team
Flexibles Europe & Americas – Team President Amcor Flexibles Europe & Americas Peter Brues Fresh, Dairy & Caps Snacks & Confectionery EU Extrusion HP Laminates HP Foil Americas & EU Med Thomas Morin Gérard Blatrix Filip Lens Manfred Witzstrock Thomas Hauser Tom Cochran Sales & Marketing Human Resour
Slide 9: Business Priorities
Business Priorities Build on our Safety performance Focus on our Customers Commercialize key innovations Work as one teams and build a common culture Achieve our procurement targets Create clear manufacturing strategy Maximise Cash Flow 9
Slide 10: Agenda
Agenda 1 Amcor Flexibles Europe & Americas 2 Business Units 3 Procure Plus 4 Innovation 10
Slide 11: Fresh, Dairy & Capsules
Flexibles Europe & Americas Fresh, Dairy & Capsules Russia UK Ireland The Netherlands Poland Germany Czech Republic Switzerland France Portugal Italy Spain Turkey Morocco 11
Slide 12: High Performance Foil
Flexibles Europe & Americas High Performance Foil Russia UK Ireland The Netherlands Poland Germany Czech Republic Switzerland France Portugal Italy Spain Turkey Morocco 12
Slide 13: Snacks & Confectionery
Flexibles Europe & Americas Snacks & Confectionery Russia UK Ireland The Netherlands Poland Germany Czech Republic Switzerland France Portugal Italy Spain Turkey Morocco 13
Slide 14: High Performance Laminations
Flexibles Europe & Americas High Performance Laminations Russia UK Ireland The Netherlands Poland Germany Czech Republic Switzerland France Portugal Italy Spain Turkey Morocco 14
Slide 15: European Extrusion
Flexibles Europe & Americas European Extrusion Russia UK Ireland The Netherlands Poland Germany Czech Republic Switzerland France Portugal Italy Spain Turkey Morocco 15
Slide 16: Americas & European Medical
Flexibles Europe & Americas Americas & European Medical 16
Slide 17: Agenda
Agenda 1 Amcor Flexibles Europe & Americas 2 Business Units 3 Procure Plus 4 Innovation 17
Slide 18: Procure Plus and the Amcor Way
Procure Plus and the Amcor Way The Amcor Way is about our five business competencies that are the pillars for our success and is the next step in ensuring that we continue to build operational excellence and industry leading positions. Procure plus supports the low cost business competency but also
Slide 19: Procure Plus vision
Procure Plus vision The Aspiration The Goal Procurement Enablers Sustainable Value Capability Building delivery Talents • Right profiles and skills • Build world-class • Revised MIP and procurement capability in performance measurement • Capture cost savings Amcor • Adequate training opportunities o
Slide 20: Procure Plus aspirations
Procure Plus aspirations “Unique insights and competitive advantage via deeper supplier and market understanding” Market –Best Value Agreements in the packaging industry –Suppliers are Productivity partner to deliver value based on innovations and operational improvement “Sustainable “Best procureme
Slide 21: Procurement Excellence
Procurement Excellence Procurement Excellence Skilled and engaged co-workers who deliver superior value for Amcor and establish a sustainable competitive advantage for Amcor • Understanding our market • Enhancing our Procurement capabilities • Working as one team to develop a sustainable competitive
Slide 22: The integrated Procure Plus vision
The integrated Procure Plus vision Vision Procurement Excellence Advanced Capabilities LCC & Supplier Risk Global Management Sourcing Foundational Sourcing & Supplier Operating Capabilities Category Relationship Process Management Management & Management Negotiation Enablers Spend Analytics Performa
Slide 23: Enablers: Talent Management
Enablers Talent Management Talent Approach used by Amcor to recruit, develop, retain and Management reward Sales and Marketing professionals • Individual Career Profiling • Talent Review • Organizational Talent Plan • Implement Organization Action Plan • Human Resource Management System • Performanc
Slide 24: AFEA Procurement org. chart
AFEA Procurement org. chart VP Procurement L. Brunel Procure + Manager Finance Manager Synergy Director Synergy Director Directs Indirects Group Proc. Group Proc. Group Proc. Group Proc. Group Proc. Manager Manager Manager Manager Manager Resins+Films Alu+Paper Liquids Americas Indirects 24
Slide 25: Group Procurement structure - Indirects Example
Group Procurement structure- Indirects Example Group Procurement Manager Indirects Category Category Category Category Category Procurement Procurement Procurement Procurement Procurement Manager Manager Manager Manager Manager Waste/ Logistics Energy MRO Pre-Press-CAPEX Prof services Secondary Pack
Slide 26: Enablers: Systems and Performance tracking
Enablers Systems and Performance tracking Performance The systems and processes used by the business to Tracking manage the performance of Procurement across the (KPI’s, Powersteering) organisation Powersteering • Building Capabilities • Taking Actions • Used to manage procurement • Tracking Impact
Slide 27: Enablers: Procurement Systems
Enablers Procurement Systems 1/2 Procurement Processes Demand Monitor & Sourcing Procure-to-Pay Management Manage APO, other Supplier collaboration portal Procurement Savings Tracker Directs modelling tools EDI Supplier performance Spend Analytics measurement Artemis SRM TMS phase 3 TMS phase 1 & 2
Slide 28: Enablers Process: Projects definitions
Enablers Process: Projects definitions (Status and types) IDEA PLANNED IMPLEMENTED IMPACTED Ideas hopper Planned Implemented Impacted • Potential savings opportunities • Procurement action plan for • Project started with Supplier • Project secured • Not included in BU’s Budget current FY – (contract
Slide 29: Enablers Process: Savings validation by BUs
Enablers Process: Savings validation by BUs 1. IDEA Selections BU / Procurement excecutive meeting Select projects Yearly Procurement Project 5 Allocate BU’s resources Validate Procurement Budget Selection Meeting 4 2. Project acceptance & follow up Quarterly Procurement Project Review Quarter
Slide 30: Enablers Process: Projects selection and follow up
Enablers Process: Projects selection and follow up IDEA PLANNED IMPLEMENTED IMPACTED GPM CPM Procurement Project Selection During project life STT Project A 5 Project B 5 Plant Controller Project C 4 PROCUREMENT Project A Comments : Project D 5 no no CPM no Project B STT PROCESS Project E 5 Project
Slide 31: Foundational capabilities: Sourcing & Category Management 1/2
Foundational capabilities Sourcing & Category Management 1/2 Content Tools/approaches employed • Systematic sourcing approach and • General sourcing roadmap, wave planning supplier category control to analyze and • Spend forecasting develop sourcing opportunities • 7 step sourcing approach • Gemston
Slide 32: Foundational capabilities: Sourcing & Category Management 2/2
Foundational capabilities Sourcing & Category Management 2/2 Gemstone strategies Short-term strategies Long-term strategies Leverage advantage Create advantage Simple Volume Product Bundling Improvement Bundling on Product Innovation Suppliers Product Volume Supplier Specification Concentration Oper
Slide 33: Foundational capabilities: Supplier Relationship Management
Foundational capabilities Supplier Relationship Management Content • Systematic approach to strategically Best-in-class SRM plan and centrally steer relationship to its suppliers by segmenting them into different clusters Supplier Opportunity Supplier investment Open, regular and risk • Controlling
Slide 34: Foundational capabilities: Operating process management
Foundational capabilities Operating process management Content • Purchase-to-pay approach ensuring P2P approach compliance and enabling best-in-class processes from sourcing to pay Identify Contract Monitor Develop Source and Invoice opportunit and and • Definition of standard processes essential y
Slide 35: Advanced capabilities: Low cost country and global sourcing
Advanced capabilities Low cost country and global sourcing Content LCC Assessment • Systematic analysis of opportunities to expand geographic supply base outside of traditional geographic supply markets Global China • Maximize risk/value trade-offs by identifying countries with low-cost base and sta
Slide 36: Advanced capabilities: Supplier/Business Risk Management
Advanced capabilities Supplier/Business Risk Management Content • Controlling of associated supplier / Supplier risk assessment business risks • Risks taken into account such as limited capability of suppliers; market Leverage Strategic competitiveness, constraints, etc. Key criteria: High competiti
Slide 37: Agenda
Agenda 1 Amcor Flexibles Europe & Americas 2 Business Units 3 Procure Plus 4 Innovation 37
Slide 38: AFEA R&D Product Development Focus
AFEA R&D Product Development Focus • Organized by market stream and technology Films • Teams of product development managers, engineers, and key commercial leadership Industrials Pharma • Reviewing key R&D projects • Ensure overlaps are intentional R&D • Leverage global expertise to resolve Leadersh
Slide 39: Company overview
Company overview Winterbourne, UK Gent, BE Madison, WI Huizhou, China Neuhausen, CH 39
Slide 40: Amcor: Creating a new world of packaging
— 7 omcor Creating a new world of packaging