Slide 1: Full Year Results Investor Presentation
For personal use only Full Year Results Investor Presentation “Confidence in the future” 30 June 2011 22 August, 2011
Slide 2: Disclaimer
Disclaimer For personal use only Forward looking statements 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. F
Slide 3: Key messages
Key messages For personal use only • World class safety performance • Solid financial performance • Profit after tax (before SI’s) up 39% • Record earnings in Flexibles and Rigid Plastics • Challenging operating environment in Australia • Benefits from Alcan acquisition exceeding expectation and ahe
Slide 4: Full year results
Full year results For personal use only A$ million Jun 10 Jun 11 % 1400 PBIT A$ million 1200 77 (126) Sales 9,849.5 12,412.3 26.0 42 142 (35) 1,003 PBIT (1) 759.2 1,003.2 32.1 1000 886 17 PAT (1) 409.2 570.3 39.4 800 759 EPS (cents)(1) 35.2 46.5 32.1 600 PBIT(1)/AFE(%) 12.4 14.1 400 Dividend (cents
Slide 5: Operating cash flow and Alcan Packaging acquisition
Operating cash flow For personal use only A$ million Jun 10 Jun 11 PBITDA(1) 1,213.9 1,514.2 Operating cash 566.8 440.0 flow(2) Dividend (286.2) (433.0) Free cash flow(3) 280.6 7.0 (1) Before significant items (2) After significant items (3) Before growth capital expenditure Positive operating cash
Slide 6: Flexibles business group performance
For personal use only Business Group performance Flexibles PBIT € million € million Jun 10 Jun 11 500 13 (25) 27 450 91 Sales 2,809 4,577 400 333 11 PBIT 252.3 450.2 300 AFE 1,463 2,209 200 PBIT/AFE % 17.2 20.4 Operating cash flow 276.5 448.9 100 0 Proforma FY FY 2010 FY 2011 Earnings Other net Raw
Slide 7: Raw material input costs and Flexibles
Raw material input costs For personal use only 200 Resins Aluminium 180 Under recovery 160 140 120 100 80 Quarterly weighted average index for Western European Polyethylene & Polypropylene resins and film, and PET film Quarterly average index for LME aluminium prices Annualised raw materials increas
Slide 8: Flexibles outlook and Rigid Plastics
Flexibles – outlook For personal use only • Target margin range of 11-12% • FY 2012 earnings growth drivers are: • Full year benefit of synergies realised to date • Benefits from remaining synergy projects • Further benefits from implementing “The Amcor Way” operating model • More benign movements i
Slide 9: Rigid Plastics – North America
Rigid Plastics – North America For personal use only Custom beverage container volumes Diversified products revenue 8,000 7,221 450 416 862 232 7,000 691 Sales revenue (US$ millions) 400 6,000 5,668 350 5,000 300 Million units 250 4,000 174 10 200 3,000 150 2,000 100 1,000 50 0 0 FY 2010 Growth Acqu
Slide 10: Rigid Plastics outlook and Australasia
Rigid Plastics – outlook For personal use only • Modest growth in North American beverage volumes • Difficult summer comparative as 2010 was particularly hot • US economic conditions remain subdued • Benefits of North American restructuring program • Particularly evident in the second half of the ye
Slide 11: 2011 Australian operating conditions
2011 Australian operating conditions For personal use only Weather • Cool and wet summer • Flooding in Eastern Australia (November 2010 - February 2011) • Cyclone Yasi (February 2011) High Australian dollar • Direct impact on trade exposed cartons business • Indirect impact on customer demand Genera
Slide 12: Australasia and Packaging Distribution outlook
Australasia and Packaging Distribution outlook For personal use only • Substantially higher volumes in the glass business • Beverage can earnings dependent on weather through summer months • Loss of banana volumes and continued impact of weak economic conditions in the corrugated business • Underlyi
Slide 13: Results and significant items
Results For personal use only A$ million Jun 10 Jun 11 Sales 9,849.5 12,412.3 PBITDA (1) 1,213.9 1,514.2 PBIT (1) 759.2 1,003.2 Net interest (183.4) (217.1) Tax & minorities (166.6) (215.8) PAT (1) 409.2 570.3 Weighted ave number of shares (m) 1,161.4 1,225.2 Basic EPS (1) (cents) 35.2 46.5 • Return
Slide 14: Cash flow and working capital performance
Cash flow For personal use only A$ million Jun 10 Jun 11 Variance PBITDA (1) 1,214 1,514 300 Interest (183) (206) (23) Tax (89) (148) (59) Base net capital expenditure (287) (362) (75) Movement in working capital 60 (27) (87) Cash significant items (144) (267) (123) Other (4) (64) (60) Operating cas
Slide 15: Cash flow and capital structure
Cash flow For personal use only A$ million June 10 June 11 Operating cash flow 567 440 Dividends (286) (433) Free cash flow 281 7 Acquisitions (net of divestments) / growth capex (2,701) (524) Movements in share capital 1,571 21 Other (including foreign exchange rate changes) (26) (50) Increase in n
Slide 16: Debt profile
Debt profile For personal use only Jun 10 Jun 11 July 2011 proceeds from Current debt 1,379 356 sale of Glass Tubing Non-current debt maturity profile 6.5 years 5.6 years business will offset share Fixed / floating interest rate ratio 61% fixed 63% fixed Bank debt / total debt 36% 32% buy-back payme
Slide 17: Focus turning to growth
Focus turning to growth For personal use only 2013+ 2010-2012 Deliver growth from innovation Deliver benefits and accelerating from demand in transformational emerging markets 2005-2009 acquisitions Improve execution capabilities and focus portfolio 32 Building innovation excellence to drive growth
Slide 18: Emerging markets presence
Emerging markets presence - 65 plants, 24 countries, 8,000 co-workers For personal use only • Established footprint Asia South America Eastern Europe • Presence since early 1990’s BrazilChina Brazil Russia • Experienced local management India Chile Poland • Strong customer relationships Indonesia Ar
Slide 19: Summary
Summary For personal use only • 2011 performance very strong • Benefits from Alcan acquisition exceeding expectation • Underpins earnings growth in the next two years • Key driver for long term value creation is strong free cash flow • Focus turning to growth Confidence in the future 36 Appendix sli
Slide 20: Historic performance – sales, PBIT, AFE
Historic performance – Full year sales For personal use only Sales (million) Currency Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Flexibles EUR 935 869 869 1,940 2,248 2,329 Rigid Plastics USD 1,272 1,203 1,064 1,194 1,417 1,693 Australasia and AUD 1,564 1,421 1,398 1,402 1,470 1,366 Packaging Distrib
Slide 21: Historic performance – AFE and Flexibles
Historic performance – Full year AFE For personal use only Average Funds Currency Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Employed (million) Flexibles EUR 1,033 1,009 981 1,463 2,195 2,209 Rigid Plastics USD 1,655 1,601 1,453 1,460 1,786 1,804 Australasia and AUD 1,732 1,713 1,575 1,605 1,679 1,59
Slide 22: Rigid Plastics historic performance and product mix
Rigid Plastics – Historic performance full year For personal use only Sales Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 USD million North 845 834 647 815 982 1,203 America South 385 322 373 322 380 419 America Bericap 40 43 42 53 52 64 BG/India 2 4 2 4 3 7 Total 1,272 1,203 1,064 1,194 1,417 1,693 42
Slide 23: Australasia and Packaging Distribution; The new Amcor
Australasia and Packaging Distribution full year For personal use only Sales A$ Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 million Fibre 631 593 607 607 603 581 Rigids 336 291 328 312 386 329 Packaging 597 537 463 483 481 456 Distribution Total 1,564 1,421 1,398 1,402 1,470 1,366 44 The new Amcor FY