Slide 1: Management Briefing, Sydney 11 December 2006
11 December 2006 Sydney Ken MacKenzie www.amcor.com
Slide 2: Introduction and presenters
(~ Introduction — Ken Mackenzie e Presentations and Q & A's from: — Jerzy Czubak ~ Peter Brues Sandwich lunch Presentations and Q & A's from: ~ Gerard Blatrix — Bill Long « Summary — Ken Mackenzie
Slide 3: Delivering shareholder value
a qe) = ge ard -A orw. F y _ The Wa shareholder value
Slide 4: Result of the program: a very different Amcor
» Result of this program is that Amcor will be a very different company » Substantial upside potential, however it will take time » The four businesses presenting today all have significant programs underway Ni
Slide 5: Amcor Rentsch & Amcor Flexibles Eastern Europe
Amcor Rentsch & Amcor Flexibles Eastern Europe 11 December 2006 Sydney Jerzy Czubak www.amcor.com
Slide 6: Tobacco market and strategy agenda
Tobacco Market Strategy for Tobacco Packaging — Overall — Western Europe — astern and Central Europe Flexibles in Eastern Europe «
Slide 7: Amcor Rentsch and Flexibles Eastern Europe
| ANCOR RENTSCH AND _PLEXIBLES EASTERN | eUROPE Tobacco W Europe Tobacco CE and Er Folding Cartons Flexibles E Europe At i om
Slide 8: Tobacco & Specialty Cartons plants
- Tobacco & Specialty Cartons | Asia China (5) Singapore Malaysia Europe 43 Plants Switzerland (2) ? © Total Sales France ° EUR 405 Mio Gormany Portugal Poland Russia Ukraine QD Avwor_ievaccs aiid Spevia ly Cer fos Plants %
Slide 9: Global Tobacco Market - Competitors
_ Global Tobacco Market-Competitors € Million 700 600 2 Global EE Europe
Slide 10: Strategy for Tobacco Packaging
« Strategy for Tobacco Packaging — Overall — Western Europe — astern and Central Europe * Flexibles in Eastern Europe
Slide 11: Global Tobacco Companies
Global TobaccoCompanies = = [ced Djarum vu garettes KT&GC C y RJ Reynolds Altadis Galianer 7 imperial | JT Ine. | BAT Co | PMI Inc. | eNTc | t t t t t i t t 1 200 400 600 800 1000 1°200 1400 17600 1800
Slide 12: Production in billion cigarettes
Production in Bio Cig @ 2000 2005 @ 2010 WE CE/Balk./Turkey EE Total
Slide 13: Retail Prices in Europe
__ Retail Prices in Europe | TURKEY. ‘This mag shows retail. prices.in.the mast popular price categories per 1,000. sticks as af March 2004. Prices im the EU's aecdssion vourtries dre substantially iower campoved with thuce im older menrher saunmteler.
Slide 14: Market Information - Western Europe
_ Market Information—Western Europe _ Consumption ° Anti-smoking campaigns — Health Warnings/Graphical Health Warnings ° Resulting in changing habits of consumers — Further penetration of Value Brands — Smuggling still a major issue Impact on cigarette manufacturers « Developing less harmful cigaret
Slide 15: Market Information - Central Europe
Consumption ° Price sensitive market — Little brand loyalty with aggressive price competition in many countries — Value brands have substantial market share — Premium segment (although small) is growing ° Ant-smoking campaigns — Future EU countries starting to initiate anti-smoking initiatives Impac
Slide 16: Market Information - Eastern Europe
Consumption ° Stabilisation of consumption in Eastern Europe ~— Recent rapid consumption growth has slowed — Development of the premium segment ° Products and packaging structure evolving - Papyrossi replaced by normal cigarettes — Hard packs replaced soft packs and growth in round corner boxes Impa
Slide 17: Flexibles in Eastern Europe
= * Flexibles in Eastern Europe
Slide 18: Regional growth and restructuring positioning
HIGH GROWTH g bs fod 4 zg 5 2 GROWTH RESTRUCTURING HIGH DOWNSCALING _ INVESTMENTS INVESTMENTS
Slide 19: Western Europe Strategy
lester Europe Strategy « Relocation of production West to East — Closure of plants in Belfast, Dublin and Spain in 2000-2005 — Redeployment of assets to Eastern Europe ~ establishing plants in Russia and Poland
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Slide 21: Relocation of production West to East
« Relocation of production West to East — Closure of plants in Belfast, Dublin and Spain in 2000-2005 — Redeployment of assets to Eastern Europe ~ establishing plants in Russia and Poland « Reducing cost base ~ Cost saving programs based on operational excellence and best practices — Investment in m
Slide 22: Robot
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Slide 23: Robot in France
_ Robot in France | oe ae Ln aan pe ; LN SS ¢ x - : y
Slide 24: Relocation of production West to East
« Relocation of production West to East Closure of plants in Belfast, Dublin and Spain in 2000-2005 Redeployment of assets to Eastern Europe — establishing plants in Russia and Poland Reducing cost base Cost saving programs based on operational excellence and best practices Investment in modern tech
Slide 25: Creative packs
Creative packs sureunseraps vicsapenss 7 o oo Lo — — oe zy
Slide 26: Graphical health warnings
* Front side as per today * Back side with picture and health warning integrated into the picture
Slide 27: Central and Eastern Europe Strategy
Central ote and: Easter Europe: _ Strategy _ °* Build on our success in Poland and Russia — First international producer in Poland (1993) and Russia (2000) — Poland is the most advanced technology producer in Eastern Europe ~ Russia is the largest tobacco packaging plant in Europe
Slide 28: Printing machines installed
No Machine Type Installed Size R4 Rotogravure Bobst Champlain 2000 R14 Rotogravure Bobst Lemanic 2001 R21 Rotogravure Bobst Lemanic 2002 R22 Rotogravure Bobst Lemanic DR55-S CH67 2003 R17 Rotogravure Bobst Lemanic 2003 STeuer FBR 2006 Speria Foilmaster 102 2006 1120 mm 820 mm 820 mm 670 mm 820 mm Un
Slide 29: Novgorod Sales Trend 2000-2006
__ Novgorod Sales Trend in 2000 - 2006 Sales Growth, “000 EUR "00 - "01 ‘04 - 02 ‘02 -'03 ‘03 - 04 ‘04-05 05-06 [@ Sates budget (000 EUR) m Actual sales
Slide 30: Central Europe and Russia
Eastern Europ Central Europe and’ Sic; AMCOR « Build on our success in Poland and Russia ~ First international producer in Poland (1993) and Russia (2000) ~ Poland is the most advanced technology producer in Eastern Europe ~ Russia is the largest tobacco packaging plant in Europe « Develop leading p
Slide 31: Ukraine - Geography
Ukraine - Geography « Location - Eastern Europe, bordering the Black Sea, between Poland, Romania, and Moldova in the west and Russia in the east « 603 700 sq km « Border countries — Belarus, Hungary, Moldova, Poland, Romania, Russia, Slovakia _— git Mies jets ey , an’ RUSSTA | | Strategic position
Slide 32: Ukraine - Economic background
_Ukraine-Economic background sits 2003 2004 2005 O4 Population (ran) aT 7 ATS 47.2 Smoking incidence (%) 33 34 35 Nominal GDP (USD bin} 56.4 61.9 nla Real GDP growth (%) 94 9 7.0 Unemployment (%) a7 8.5 8.0 Inflation (%) 5.2 a0 12.0 Average monthly salary (USD) a7 414 433 Price of 20’s cig. pack (ca
Slide 33: Ukraine market data
210 200 | 150 + 130 120 115 100 iad 60 so | 45 35 | oo oo [noo ES es e J > | é x é ss Ss £ SF xs & . FF ¢§ s a eS ¥ ? eS €
Slide 34: Ukraine - Project Summary
Ukraine - Project Summary __ e Brownfield investment in Kharkiv, second largest city in Ukraine — Brownfield enables faster and simpler project (based on Russian experience) ~ Project to be managed by Novgorod management — Ukraine plant will be a satellite site of Novgorod Location has close proximi
Slide 35: Business Overview
* Business Overview \ * Tobacco Market « Strategy for Tobacco Packaging — Overall — Western Europe — astern and Central Europe
Slide 36: Market Information - Regions
Market Information — Regions AREA SIZE MEGkM | 3580 000] 2250 000] 22 000 000 POPULATION mire) 386 205) 280 UNEMPLOYMENT RATE [% 5.3% 135% 73% GOP 10 $ 10 367 000) 7530 000) 1 665 000 GDP GROWTH Ye U,6% 45% 7 So CDP GROWTH Mo & 79 000 56 000 746 000 FLEXPACK DEMAND [BIO€ | 750] T.B0] 0.35] Source: A
Slide 37: European wages
Euro mSOCIAL WWAGES 4 i ip Ly oe | - Germany France Belgium © uk Finland (roland Spain Greece Poland crech Hungary Slovakia
Slide 38: Flexibles Market Information - Competitors
_ Flexibles Market Information - Competitors SALES INCEEME€ OTHERS EXPORT OTHERS SUOMINNEN SCHUR i COMFLER WODAMEX DPN MM GRAPHA BRUKPOL, LIMATON AMSUR BLITZ HAIZOPOULOS AY AMBALA! WALL BAAD EDASPAK TSA's. OTEK, KARTONSHKA BOLIGRAFG UKRPLASTIE MULTIFLE ALFAROTO MOND KETy NOROEMA, AGAS BAK AMBALA CON
Slide 39: Flexibles Market Information Trends
__Flexibles Market Information Trends * Domestic consumption growth driven by goods moving into packaged formats * Production growth in CE as a result of transfer from WE and growing consumption * Fast production growth in EE due to high investment of IKA’s and growing consumption * Exports from WE
Slide 40: Flexibles Market - CEE Expansion
n CEE __ Flexibles Market - Expansion i - Strategic Objectives: « A focused approach to technology, products and market segments ~ Product focus on confectionery, beverages, tobacco, personal care and yoghurt — Initial technology focus on gravure printing « Develop critical mass to partake in growth
Slide 41: Proposed Poland and Novgorod focus
__ Propose * Polska — Create critical mass in gravure printing ~ Focus on becoming centre of excellence for confectionery, tobacco, beverages and personal care markets ° Novgorod — Create critical mass around gravure printing ~ Focus on becoming centre of excellence for confectionery, tobacco and yo
Slide 42: Summary
« Tobacco Packaging — Continue to expand in growing regions of Central and Eastern Europe — In Western Europe be low cost producer with well located sites — Focus on product development ° Central and Eastern Europe Flexibles — Expand manufacturing footprint (leverage tobacco manufacturing facilities
Slide 43: Amcor Flexibles Healthcare
~ Amcor Flexibles Healthcare 14 December 2006 Sydney Peter Brues www.amcor.com
Slide 44: Agenda
Markets « Capabilities & Products ° Strategy ° Technology ° Summary
Slide 45: Organisational Structure
Organisational Structure President Peter Brues Exec VP Sales & Mkig. Javier Rojo VP US Healthcare CeO Tom Cochran jan Heyes VP Medical Strategy Jerry Bennish MPR Steve Slesnick
Slide 46: Global Healthcare Sites
_ Global Healthcare Sites
Slide 47: Agenda
Capabilities & Products ° Strategy ° Technology ° Summary
Slide 48: Healthcare attractions
_ Healthcare attractions ° Packaging cost is low relative to the selling price of the entire product °* Packaging often critical in protecting the customer’s products and essential in product differentiation ° Customers require package characteristics that are aligned with Amcor’s competencies ° Gro
Slide 49: Healthcare packaging types
@ Cartons Ml Labels O Leaflets OPiastic Containers @ Plastic Closures @ Piastic & Alu Tubes @ Ampoules & Vials Pumps & Aerosols @ Plastic VV Containers @ Glass Bottles
Slide 50: Global Healthcare Packaging Distribution
_ Global Healthcare Packaging Distribution _ By Region By Segment South Personal Care 8%. America Hospital B%
Slide 51: Medical packaging defined
Defined Packaging of medical products that e are sterilised within the package Customers Medical device manufacturers — Disposable Gloves — Syringes — Needles — Catheters — Dressings — Sutures Hospitals for in-house sterilisation (re-usables) 52% “eZ @ Amcor @ Alcan @ Bemis & Other 1%
Slide 52: Leading Medical Device Manufacturers
Leading Medical Device Manufacturers _ Gistomer 0 Sales Cardinal Health $74 Billion eS} Jd $47 Billion us Tyco $40 Billion us Kimberly-Clark $15 Billion US Becton Dickinson $5 Billion US Market Trends: * Commodity production moved to developing countries (e.g. bandages) + Rising concern of hospital
Slide 53: Pharmaceutical Packaging
| Pharmaceutical Packaging Defined *« Packaging of products which 8% have a pharmacological action ( upon the body 459 Customers * Prescription & OTC manufacturers — Blister packs (e.g. pills, capsules) 21% — Sachets (e.g. powders) @ Amcor — Onewraps (e.g. inhalers) @ Alcan @ Klockner Ei Other
Slide 54: Leading Pharmaceutical Companies
Leading Pharmaceutical Companies _ Core hese fice | "Pfizer $53 Billion us GlaxoSmithKline $39 Billion UK Novartis $28 Billion CH Merck $23 Billion us Astra Zeneca $21 Billion us Market Trends: * Differentiation through ease of delivery (patches, dissolve strips) + Combat counterfeiting + Senior fri
Slide 55: Personal Care Packaging
Personal Care Packaging Defined * Packaging of products that 20% support an individual’s ’ health, beauty and lifestyle 8% 39% Customers 33% » Cosmetic & toiletry industry mi Amcor — Sachets @ Alcan — Wipes & Bemis { Other
Slide 56: Leading personal care companies
Procter & Gamble $66 Billion eS} Unilever $54 Billion UK L’Oréal (Nestlé) $17 ($69) Billion F (CH) Colgate $10 Billion us Estée Lauder $6 Billion us Market Trends + Differentiation through package appearance & features + Differentiation through package ease of use + Increased emphasis on emerging ma
Slide 57: Key Implications for Packaging Suppliers
kagin _ Key Implications for Packaging Suppliers _ * Quality & Service are a minimum * Importance of Innovation « importance of Selling Skills « Importance of Ease of Working with you (ISO 13485, LEAN) « Importance of Decorating Expertise (colour, texture, print) » Global Manufacturing capabilities
Slide 58: Healthcare overview
Healthcare overview Markets e e Strategy Technology ° Summary e
Slide 59: Conversion of Raw Materials
__ Conversion of Raw Materials - « Raw Materials — Plastics — Polyester — Polypropylene — Polyethylene — Co-polymers — Paper — Clay Coated — Treated — Metal Barrier Materials — Aluminum Foil — Metallized Films — Aluminum Oxide Coated Films
Slide 60: Conversion of Raw Materials
__ Conversion of Raw + Gonverting Equipment — Printing Press — Flexographic Press — Rotogravure Press — Film Manufacturing — Blown Film — Cast Film — Lamination — Adhesive Laminator — Extrusion Laminator
Slide 61: Conversion of Raw Materials
_ Conversion ofRaw Materials * Finishing Requirements — $lit Rolls for Customer — Thermoforming — Vertical Form Fill & Seal — Horizontal Form Fill & Seal — Pouches or Bags — Hand Filled Kits — Fill Machines — Die Cut Lids
Slide 62: Medical Packaging - Thermoform Fill Seal
Medical Packagi Thermoform Fill Seal Applications World's largest manufacturer of thermoformable films and rnating webs for medical packaging » Forming Films « Premium Surlyn®-based films, high- strength nylon films and value-oriented films * Awide range of Mating Webs + Coated papers, Coated & dire
Slide 63: Medical Packaging Products - Peelable Webs
: Medical Packaging Products Peelable Webs Widest offering of peelable substrates for the medical packaging industry ‘Easy access-maximum protection’ « Coated papers * Coated & direct seal Tyvek” « Films & laminates « Lids for rigid and semi-rigid containers
Slide 64: Medical Packaging Products - Bags & Pouches
_ Medical Packaging Products" Bags & Pouches Designed for maximum protection against bacterial invasion . Bags Vented Unvented . Pouches Tyvek® Paper Film Foil
Slide 65: Blister Barrier Webs
Blister Barrier Webs Foil Laminates for Sachets . ee
Slide 66: Healthcare overview
Healthcare overview * Warkets ° Capabilities & Products ° Technology ° Summary
Slide 67: Current Position
Current Position (— Changing Environment Strategy « Establish an effective global * Attractive market Customers acting structure segment more globally in * Replicate strong + Amcor has strong both manufacturing market/customer positions across geographies « Capture High- Performance \. product growt
Slide 68: Healthcare overview
Healthcare overview ° Markets °« Capabilities & Products ° Strategy ° Summary
Slide 69: Technology Strategy
ology Strategy _ Techr e Qur goal is to offer innovation and new package concepts to our customers by focusing on fechnology platforms & new product solutions. ° To achieve these solutions we must be linked to our customers and suppliers and leverage Amcor Flexible Technology and Product Development
Slide 70: Product Development Focus Teams
Creation of Product Development Focus Teams — Sharing of Technical Expertise — Common Project Reporting System ~ Transfer of Best Practices Expanding the Plant Process Engineering Function ~ Management of Process and Product Improvements - Commercialisation Projects — Lean Manufacturing Leverage Sha
Slide 71: Product Development Focus Teams & Pilot Areas
_ Product Development Focus Teams __& Pilot Areas" AF Madison AF Mundelein a inferbourne | Four Engineers Es Four Engineers Pouching ae we F c a AF-Gent Engineers ; ra One Engineer | Bown Fifn a Four Engineers AE-Brasit ‘One Engineer
Slide 72: Technology Leadership
_ Technology Leadership _ a a Ls A es i oe ae ; - a Oy ‘ A : ae
Slide 73: Healthcare overview
Healthcare overview * Warkets ° Capabilities & Products ° Strategy ° Technology
Slide 74: Profitably grow global leadership position
We will profitably grow our global leadership position through: ° Strengthening advantaged positions, leveraging regional competencies globally and maximizing growth in high- performance product segments * Creating a market facing organization that leverages global opportunities ° innovating to crea
Slide 75: Amcor Flexibles Food
Amcor Flexibles Food 44 December 2006 Sydney Gérard Blatrix www.amcor.com
Slide 76: Agenda
° Markets & Technologies ° Management Objectives ~ Manage Cost Pressures — Deliver Profitable Growth * Summary Ml
Slide 77: Organisational Structure
__ Organisational Structure Gsiar my i. ae Mara lea Ta Tay ni ‘ie. Bee i Wf Il
Slide 78: Amcor Flexibles Food
_ AF Fo
Slide 79: Overview of Business
Overview of Business Management Objectives — Manage Cost Pressures — Deliver Profitable Growth Summary
Slide 80: European GDP growth and packaging outlook
@ European GDP growth is forecast to be 2.2% per annum for 2006-08 period compared to 1.4% per annum for 2003-05 period Western European flexible packaging is forecast to grow in line with GDP, with growth in Eastern Europe much higher at around 7% pa Consumer convenience will drive demand for highe
Slide 81: Volume Flows
Slide 82: Customer Trends
Slide 83: Ongoing consolidation
Slide 84: Amcor Flexibles Food Sales by End Use
Slide 85: Amcor Flexibles Key Markets & Customers
Slide 86: A Broad Range of Capabilities
Slide 87: Innovation is Key Lever for Growth
Slide 88: Amcor Innovation Winning Packages for Flexibles
Slide 89: Agenda
Slide 90: Management Objectives Are Clear
Slide 91: Agenda
Slide 92: Raw materials more stable but still at historically high levels
Slide 93: Plant Closure Program is Progressing to Plan
Slide 94: Agenda
Slide 95: Where & How to Compete?
Slide 96: Eastern Europe is key growth area for our customers
Slide 97: Summary for Where and How to Compete
Slide 98: Working Capital Reduction is a Key Priority
Slide 99: Capital Discipline has improved over the past two years
Slide 100: Agenda
Slide 101: Summary
Slide 102: Amcor PET Packaging
Slide 103: Agenda
Slide 104: Amcor PET Packaging
Slide 105: Organisational Structure
Slide 106: Global Market Shares
Slide 107: Reposition Portfolio
Slide 108: Agenda
Slide 109: Energy Cost Increases
Slide 110: Agenda
Slide 111: Injection Molding Productivity Evolution
Slide 112: Blowmolding Productivity Evolution
Slide 113: Machine Productivity Evolution
Slide 114: Agenda
Slide 115: Price Erosion Update
Slide 116: Agenda
Slide 117: Market Attractiveness: Custom vs CSD/Water
Slide 118: North American Heat Set PET Market Projected to Grow at 12% CAGR
Slide 119: Competitor's Market Shares & Growth
Slide 120: Market Definition
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