Slide 1: 2019 Half Year Results
2019 Half Year Results For personal use only 11 February 2019 Ron Delia Managing Director & CEO Michael Casamento CFO
Slide 2: Disclaimer
Disclaimer Cautionary Statement Regarding and the expected timing of the completion satisfied or waived, including that a of the parties to the contemplated For personal use only Forward-Looking Statements of the contemplated transactions. Such governmental entity may prohibit, delay or transactions
Slide 3: Disclaimer continued
Disclaimer continued Cautionary Statement Regarding except by means of a prospectus meeting Participants in the Solicitation Non-IFRS information For personal use only Forward-Looking Statements cont. the requirements of Section 10 of the Results shown refer to underlying results Securities Act. Bem
Slide 4: Safety
Safety For personal use only Lost-time frequency rate Recordable-case frequency rate 24% fewer LTI’s than 1H18 20% fewer RC’s than 1H18 1.40 6 1.2 Acquisition 5.1 1.20 impact 5 1.0 1.00 0.9 4.1 4.0 0.9 0.9 4 Acquisition 0.8 0.8 3.4 impact 0.80 0.7 0.6 0.6 3 2.6 2.6 2.4 2.4 0.60 0.5 2.0 2.0 2.0 2 0.4
Slide 5: Half year results
For personal use only Half year results
Slide 6: Summary
Summary(1) For personal use only • Financial performance in line with expectations • Outlook for full year unchanged • Winning with customers • Multinational customers – Nespresso, Unilever • Regional customers - beverage • Advancing sustainability agenda • Progressing towards close of Bemis transac
Slide 7: Half year results
Half year results(1) For personal use only Constant • PAT and EPS 3.4% higher than last year USD million Dec 17 Dec 18 % Currency % • PBIT up 2.4% Sales revenue 4,502.2 4,551.8 1.1 4.3 • Growth delivered from both segments PBIT 513.8 509.6 (0.8) 2.4 • Cash flow and balance sheet strong PBIT margin
Slide 8: Flexibles segment
Flexibles segment (1) For personal use only Constant • PBIT up 1.9% in constant currency terms Currency USD million Dec 17 Dec 18 % % • Growth from recently acquired businesses Sales revenue 3,166 3,141 (0.8) 2.9 • Strong cost performance • USD 5 million adverse impact from normal time lag PBIT 39
Slide 9: Flexibles full year outlook for 2018/19
Flexibles full year outlook for 2018/19 For personal use only The full year earnings outlook for the Flexibles segment has not changed from the guidance provided in August 2018. In constant currency terms, the Flexibles segment is expected to deliver solid PBIT growth in the 2018/19 financial year,
Slide 10: Rigid Plastics segment
Rigid Plastics segment For personal use only • PBIT growth of 5.6% in constant currency terms Constant • Volume and mix benefits in beverage segments Currency USD million Dec 17 Dec 18 % % • Benefits from recently acquired businesses Sales revenue 1,336 1,411 5.6 7.6 • Good progress against previo
Slide 11: Rigid Plastics full year outlook for 2018/19
Rigid Plastics full year outlook for 2018/19 For personal use only The full year earnings outlook for the Rigid Plastics segment has not changed from the guidance provided in August 2018. The Rigid Plastics segment is expected to deliver solid underlying PBIT growth in the 2018/19 financial year, co
Slide 12: Cash flow
Cash flow For personal use only USD million Dec 17 Dec 18 • Strong cash generation PBITDA 695.2 678.3 • Excellent working capital performance Interest (80.7) (90.0) Tax (66.6) (62.3) • Operating cash flow up 27% on prior year Capital expenditure (187.1) (173.4) • PBITDA and operating cash flow inclu
Slide 13: Balance sheet and debt profile
Balance sheet and debt profile For personal use only Balance sheet Dec 17 Dec 18 Debt profile Dec 18 Net debt (USD million) 4,353 4,023 Fixed / floating-interest rate ratio 47% fixed Net finance costs (USD million) 101.7 107.7 Bank debt / total debt 29% bank PBITDA interest cover (x) 7.5 6.8 Undrawn
Slide 14: Substantial long term growth potential
Substantial long term For personal use only growth potential
Slide 15: Amcor Strategy
Amcor Strategy For personal use only Our businesses FOCUSED PORTFOLIO: FLEXIBLE RIGID SPECIALTY CLOSURES PACKAGING CONTAINERS CARTONS Our differentiated capabilities THE AMCOR WAY: Our winning aspiration WINNING FOR CUSTOMERS, Significant growth opportunities EMPLOYEES, INVESTORS AND THE THE leading
Slide 16: Capital allocation framework
Capital allocation framework Amcor Shareholder Value Creation Model For personal use only Dividend Growth in line with (~ USD 500m) EPS ~ 4% yield Total shareholder Strong, Reinvestment Organic EPS growth value of 10-15% defensive cash (~ USD 400m) of ~ 3-4% per annum with flow low volatility Acquis
Slide 17: Sustainability: Capturing the opportunity
Sustainability: Capturing the opportunity 2018 – Our Pledge 2019 – Momentum building For personal use only • New Plastics Economy Global Commitment We are the first packaging company • Flexibles R&D Centre of Excellence pledging to develop all • Several new products packaging to be recyclable or reu
Slide 18: Amcor and Bemis: Creating the global leader in consumer packaging
Amcor and Bemis: Creating the global leader in consumer packaging For personal use only SPECIALTY Global leader in Leader in Rigid Global leader in CARTONS CLOSURES Sizeable player in Flexible Packaging Containers in the Specialty Cartons global Closures Americas region ~US$13bn ~US$2.2bn ~US$1bn+ S
Slide 19: Strategic rationale
Strategic rationale Stronger value proposition for customers, employees For personal use only Global and the environment Best-in-class footprint capabilities Commitment to Greater scale environmental sustainability Attractive end Management markets talent Note: Revenue in USD billion and based on CY
Slide 20: Financial rationale
Financial rationale For personal use only Substantial value creation for all shareholders Compelling Stronger Greater transaction financial Cash and tax liquidity for financial profile going free investors metrics forward 20
Slide 21: Significant cost synergy benefits
Significant cost synergy benefits Substantial cost synergy opportunity of USD 180 million p.a. (4-5% of Bemis sales)1 For personal use only Estimated synergies Estimated synergy realisation (USD m) Estimated USD 180 million cost synergies Potential for additional sources 180 of synergies2 130 40% 10
Slide 22: Stronger financial profile going forward
Stronger financial profile going forward For personal use only Stronger earnings and cash generation FY18 proforma EBITDA (USD bn)1 • Higher margins 0.6bn 180m 2.2bn • Stronger growth potential 1.4bn • Annual cash flow >USD 1 billion1 • Compelling dividend • Investment grade balance sheet • Immediat
Slide 23: Greater liquidity and cash and tax free
Greater liquidity and cash and tax free Two major global listings Increased index weighting For personal use only • Two major global listings – NYSE and • Expected inclusion and strong weighting ASX (via CDI’s)1 in the S&P500 and S&P/ASX200 indices • Existing Amcor shareholders can elect to receive
Slide 24: Progress towards closing
Progress towards closing For personal use only Transaction expected to close in the second quarter of calendar year 2019 • Integration Management Office created Integration • Staffed with 20 full time Bemis and Amcor team members • Development of detailed integration plans underway • Transaction rem
Slide 25: Summary
Summary For personal use only • Financial performance in line with expectations • Outlook for full year unchanged • Winning with customers • Advancing sustainability agenda • Progressing towards close of Bemis transaction Long term growth potential of Amcor remains substantial 25
Slide 26: Appendix slides: Half year result
Appendix slides For personal use only Half year result
Slide 27: PBIT growth
First half PBIT growth(1) result For personal use only Sources of PBIT Segment PBIT Market PBIT - organic(2) 9% 6% 2% 2% 2% 1% 0% Acquisitions Organic Reported Flexibles Rigid Developed Emerging Packaging Markets Markets (1) Growth rates expressed in constant currency terms and rounded to the neares
Slide 28: Finance and cash expectations for FY 2018/19
First half Finance and cash expectations for FY 2018/19 result For personal use only Unchanged compared with August 2018 Net financing costs USD 200 million - USD 210 million(1) • Cash costs in line with P&L charge Effective tax rate between 17.0% and 18.0% • Cash tax 85-95% of P&L charge Corporate
Slide 29: FX translation impact
First half FX translation impact result PAT currency exposures(1) For personal use only EUR:USD Euro weakened vs USD million impact Euro weakened vs USD. EUR, USD. Average USD to on PAT for 1H19 Jan 19 average USD to 30-40% EUR rate 1H19 0.8682 EUR rate 0.8693 vs 1H19 vs 1H18 0.8502 average rate of
Slide 30: Debt profile
First half Debt profile result For personal use only USD million Facility Drawn at 31 Dec 2018(1) Debt currency profile Overdrafts/leases/other - 153 Commercial paper(2) - 716 Other AUD 1% CY2019 1,379 629 20% CY2020 680 115 EUR 33% CY2021 1,120 746 CY2022 858 698 CY2023 365 365 CY2024 - - CY2025 -
Slide 31: Half yearly sales
First half Half yearly sales result For personal use only Flexibles Rigid Plastics USD million Dec 17 Dec 18 USD million Dec 17 Dec 18 Europe, Middle East and Africa 1,580 1,566 North America 984 1,033 Americas 414 418 Latin America 279 304 Specialty Cartons 605 613 Bericap 73 74 Asia Pacific 610 59
Slide 32: Appendix slides: Amcor profile
Appendix slides For personal use only Amcor profile
Slide 33: Leadership positions and scale in key segments
Amcor Leadership positions and scale in key segments profile For personal use only Flexibles Rigid packaging EMEA 1° North America 1° Flexibles 1° Asia Pacific Rigid packaging 1° Latin America Flexibles Latin America 1° Specialty Cartons, 1° Global Flexibles Europe, Flexibles Flexibles Asia Rigid pa
Slide 34: Focused global portfolio
Amcor Focused global portfolio profile USD 9.3 billion annual sales by product type, end market and geography For personal use only Closures Australia 4% Specialty Other & NZ cartons 20% 5% Emerging 13% markets Food Western 30% HPC 37% Europe product 4% 32% Flexible end market geography Rigid segmen
Slide 35: Reporting segment overview
Amcor Reporting segment overview profile For personal use only Flexibles Rigid Packaging Flexibles Europe, Middle Flexibles Americas North America Beverage Latin America East and Africa North America Specialty Flexibles Asia Pacific Specialty Cartons Bericap NA (JV) Containers 2018 Sales: USD 6.5bn
Slide 36: Amcor Flexibles overview
Amcor Amcor Flexibles overview profile For personal use only Sales by business Sales by end group market 19% 20% 40% 4% USD 6.5bn USD 6.5bn 13% 50% sales 5% sales 11% 18% 20% Europe, Middle East and Africa Food Healthcare Asia Pacific Beverage Home & Personal care Americas Foil & Industrial Other Gl
Slide 37: Amcor Flexibles historical growth
Amcor Amcor Flexibles historical growth profile PBIT margins and RoAFE near doubled in the last decade For personal use only 24.1% 18.0% 16.0% 13.1% 12.9% 12.8% PBIT Margin % 14.0% 12.1% 12.5% 12.5% 12.0% 11.2% 11.6% 9.8% 10.0% 9.0% 8.4% 8.0% 6.6% 6.6% 6.0% 4.0% 2.0% 0.0% FY07 FY08 FY09 FY10 FY11 FY
Slide 38: Amcor Rigid Packaging overview
Amcor Amcor Rigid Packaging overview profile Sales by Sales by category For personal use only geography 7% 29% North 30% America 19% USD 2.3bn sales USD 2.8bn 34% sales 81% 16% Latin 13% America USD 533m North America Latin America sales 71% Cold fill beverage Hot fill beverage Specialty containers
Slide 39: Amcor Rigid Plastics historical growth
Amcor Amcor Rigid Plastics historical growth profile PBIT margins and RoAFE near doubled in the last decade For personal use only 17.0% 16.0% 14.0% 11.9% 12.0% 11.2% PBIT Margin % 10.5% 9.6% 9.3% 9.7% 10.0% 9.0% 8.3% 8.1% 7.5% 7.5% 7.7% 8.0% 6.4% 6.0% 4.0% 2.0% 0.0% FY07 FY08 FY09 FY10 FY11 FY12 FY1
Slide 40: North America beverage market - format mix
Amcor North America beverage market - format mix profile For personal use only Year ended 31 Dec 2017 Year ended 31 Dec 2018 Growth (Billion units) Units Share % Units Share % Units % Share bps Aluminium cans 40.2 34.2 41.0 34.1 1.9 (10) PET containers 72.3 61.5 74.1 61.8 2.6 30 Glass 1.7 1.4 1.6 1.
Slide 41: Supplemental schedules
Supplemental schedules First half result For personal use only Statutory result Adjustments(1) Underlying result USD million 1H18 1H19 1H18 1H19 1H18 1H19 Sales revenue 4,502.2 4,551.8 - - 4,502.2 4,551.8 PBITDA 695.2 609.5 - (68.8) 695.2 678.3 - Depreciation and amortisation (181.4) (168.7) - - (18
Slide 42: Supplemental schedules: details of adjustments
Supplemental First half result schedules For personal use only USD million Flexibles Investments / EUR million Flexibles Rigid Plastics Other Consolidated Details of adjustments 1H18 1H19 1H18 1H19 1H18 1H19 1H18 1H19 1H18 1H19 Segment restructuring - - - - - (37.7) - - - (37.7) Bemis transaction an
Slide 43: Supplemental schedules: other income and restructuring costs
Supplemental First half result schedules For personal use only Other income (USD million) 1H19 1H18 Net gain on disposal of property, plant and equipment 32.9 30.4 Curtailment gains, settlements and plan amendments 5.1 5.2 Rebates, incentives and claims 18.5 0.5 Other 17.9 11.6 Other income 74.3 47.
Slide 44: Supplemental schedules: non-IFRS measures notes
Supplemental First half result schedules The following notes provide further details of certain non-IFRS financial measures used throughout this presentation: For personal use only Operating cash flow is cash flow from operating activities calculated in accordance with IFRS and extracted from Amcor’