Amcor Plc · NYSE:AMCR
Amcor — Investor Day (June 2017)
65 slides from Amcor's investor day presentation, June 2017
Slide 1: Amcor Rigid Plastics
Amcor Rigid Plastics June 2017
Slide 2: Agenda
Agenda 02 1 Safety briefing 2 Amcor Rigid Plastics a Key Messages b Leadership Team c Business Overview d Latin America Update 3 Amcor Rigid Plastics North America f Key Messages g Business Overview 4 Summary
Slide 3: Safety – Manchester Evacuation Route
Safety – Manchester Evacuation Route 03 Safe zone Safety instructions for fire emergency: Exit through cafeteria Walk away from the building Turn left, proceed to safe zone Lobby Area
Slide 4: Staying safe: required safety behaviors for visitors
Staying safe Required safety behaviors for visitors 04 Listen to your guide and pay attention to signs. Obey all instructions (verbal or written) Take Action, Take Care! is Amcor’s safety philosophy and a cornerstone of staying safe in our site. If you see something you think is No jewelry unsafe du
Slide 5: Agenda
Agenda 05 1 Safety briefing 2 Amcor Rigid Plastics a Key Messages b Leadership Team c Business Overview d Latin America Update 3 Amcor Rigid Plastics North America f Key Messages g Business Overview 4 Summary
Slide 6: Amcor Rigid Plastics Key Messages
Amcor Rigid Plastics Key Messages 06 Safety is always the top priority Outstanding leaders committed to outperformance and delivering value to stakeholders Strong position: footprint, markets, technology and customers In attractive segments With substantial growth potential
Slide 7: Safety Highlights
Amcor Rigid Plastics Safety Highlights 07 Co-worker safety is always our top priority. Actioned hand safety as a major area for improvement. In FY16, 75% of all recordable cases were hand related. For FY17, 3.5 we have seen notable improvement. 3 Phase 1 – Hand Safety Campaign Frequency Rate 2.5 Ide
Slide 8: Safety Highlights
Amcor Rigid Plastics Safety Highlights 08 Phase 2 of the hand safety campaign will focus on awareness, behaviors and communication.
Slide 9: Experienced Americas leadership team
Experienced Americas leadership team 09 Mike Schmitt President Amcor Rigid Plastics Mike Bieringer Robert Collins Garry Noonan Ann O’Hara Ashish Saxena David Andison Vice President Vice President Vice President Vice President and Vice President and Vice President and Human Resources Procurement and
Slide 10: Comprehensive and Strategic Locations
Amcor Rigid Plastics Comprehensive and Strategic Locations A Strong Position 10 FY16 - Four Business Units Beverage - $1.58B 5 Canada Specialty Containers - $483M Post Sonoco Proforma $693M** 35 USA Latin America - $539M* 3 Mexico 1 Dominican Republic EL Salvador 2 Colombia 4 6 Venezuela Bericap Nor
Slide 11: Business Breakdown
Amcor Rigid Plastics Business Breakdown A Strong Position 11 Markets Served Revenues by Business Unit FY16 Bericap Beverage LATAM Excludes Venezuela Custom beverage Spirits Home and US$2.8 bn personal care Specialty Prior to Sonoco Acquisition Soft drinks and Food Pharmaceutical water
Slide 12: Customers
Amcor Rigid Plastics Customers A Strong Position 12 Diversified portfolio of well-known blue chip, multi-national, consumer goods companies
Slide 13: Evolution of Amcor Rigid Plastics
Evolution of Amcor Rigid Plastics A Strong Position 13 Strategic acquisitions have built a strong business in beverage and specialty segments.
Slide 14: Technology Portfolio
Amcor Rigid Plastics Technology Portfolio A Strong Position 14 Technologies gained through acquisitions diversify our capabilities and increase our offerings to customers. 2010 2016 Injection Stretch Large Injection Molding Blow Molding Injection Small Volume Footprint for 2 step Molding Injection E
Slide 15: Resin Processing
Amcor Rigid Plastics Resin Processing A Strong Position 15 While PET accounts for the majority of resin processed, acquisitions have increased our material offerings to customers. % Increase in Materials by Type 2012 - 2017 90% 31% increase in total raw 80% materials converted 70% 60% 2012 2017 50%
Slide 16: Latin America GDP Growth
Amcor Rigid Plastics – Latin America GDP Growth 16 Business conditions remain challenging in the region Amcor continues to be bullish for the long-term as the region is expected to return to solid GDP growth We continue to invest and look for well-priced acquisitions Source: Focus Economics 2017
Slide 17: Agenda
Agenda 17 1 Safety briefing 2 Amcor Rigid Plastics a Key Messages b Leadership Team c Business Overview d Latin America Update 3 Amcor Rigid Plastics North America f Key Messages g Business Overview 4 Summary
Slide 18: North America Key Messages
Amcor Rigid Plastics North America Key Messages 18 Strong Position In Attractive Segments With Substantial Growth Potential Focused on achieving no injuries Businesses focused on segments and Focus segments Seasoned and disciplined management customers that will enable delivery of Specialty Products
Slide 19: North America Footprint
Amcor Rigid Plastics – North America Footprint 19 Moncton, NB Tumwater, WA Walla Walla, WA Queensway, ONT 40 North American Plants Brampton, ONT Burlington, ONT Dunkirk, NY 9 – Specialty Containers Mississauga, ONT Kenosha, WI Mountain Top, PA Ames, IA Itasca, IL Allentown, PA 15 – Beverage & Specia
Slide 20: North America Revenue and Growth Drivers
Amcor Rigid Plastics North America A Strong Position 20 Growth Drivers Revenue Business Breakdown FY16 Organic growth with key customers Beverage: focused on the right Bericap 2010-2016 CAGR segments, sharpest cost to produce +7.8% Beverage Specialty: focused on growing Specialty segments; extensive
Slide 21: North America Packaging Trends
North America Packaging Trends Attractive Segments 21 Sustainable Packaging Collaborating with raw material supplier to provide customers with post consumer resin (PCR) solutions, including consistent supply and pricing Continuous improvement with light-weighting for all product segments Creating su
Slide 22: Substantial Growth Potential - Strategy
Amcor Rigid Plastics Substantial Growth Potential - Strategy 22 Objectives Guiding Principles Outcome Commercial excellence Strong partnerships with our key customers Be known for our industry leading innovation capabilities Organic Growth Profitable Growth Acquisitive Growth Portfolio expansion thr
Slide 23: Customer-backed innovation - Sustainability example
Customer-backed innovation - Sustainability example Substantial Growth Potential 23 Customer: Method Products Customer need: 100% rPET container for laundry detergent. Due to concentration of cleaning ingredients, laundry detergent is not compatible with PET. Amcor approach: Collaborate with Method
Slide 24: Sustainability – A growing opportunity
Sustainability – A growing opportunity Substantial Growth Potential 24 Helping people flourish and the environment thrive ARP teams focused on: 1) Strategies to increase PCR by 40% by 2020 2) Increase recovery rates of plastic materials 3) Minimize operational carbon footprint Internal communication
Slide 25: LiquiForm Group
LiquiForm Group Substantial Growth Potential 25 Current Licensees The LiquiForm technology combines bottle forming and filling into one step. Thus, providing a more efficient manufacturing process.
Slide 26: North America Key Messages
Amcor Rigid Plastics North America Key Messages 26 Strong Position In Attractive Segments With Substantial Growth Potential Focused on achieving no injuries Businesses focused on segments and Focus segments Seasoned and disciplined management customers that will enable delivery of Specialty Products
Slide 27: Beverage (North America)
Amcor Rigid Plastics Beverage (North America) June 2017
Slide 28: Agenda
Agenda 02 1 Key messages 2 Safety performance 3 Strong position 4 Attractive segments 5 Substantial growth opportunities 6 Summary
Slide 29: Beverage (North America) Key messages
Amcor Rigid Plastics – Beverage (North America) Key messages 03 Strong position In attractive segments With substantial growth potential Operational excellence is a clear Favorable environment to support growth Leverage strong customer relationships differentiator Cold Fill and Hot Fill segments gro
Slide 30: Beverage Safety highlights
Amcor Rigid Plastics – Beverage (North America) Safety highlights 04 Injury Rate Trend Years Working Safe 7 6.45 6.40 Wytheville 6 Walla Walla Tumwater Paris 5.17 Orlando 5 Napoleon Mt. Top 4 Moncton 3.81 Kona 3.92 Kenosha 3 Joplin 2.97 2.63 2.77 Franklin 2.68 Fort Worth 2 1.93 Fairfield Dunkirk 1.0
Slide 31: Beverage footprint
Amcor Rigid Plastics – Beverage footprint 05 Tumwater, WA Moncton, NB Walla Walla, WA North American Plants Brampton, ONT 15 – Beverage & Specialty Dunkirk, NY Kenosha, WI Itasca, IL Mountain Top, PA 10 – Beverage On or Near-sites Napoleon, OH Ames, IA Allentown, PA Fairfield, CA Batavia, IL Bellevu
Slide 32: Beverage – Operational excellence
Amcor Rigid Plastics Beverage – Operational excellence A strong position 06 KEY PILLARS STRENGTHS 1 Manufacturing Network Broad North American footprint Plant locations in most key regional markets 2 Asset Productivity Strong injection asset base Productive and high quality blow molding asset 3 Proc
Slide 33: Beverage leadership
Amcor Rigid Plastics – Beverage leadership A strong position 07 Larry Weber Gail Ray VP & GM Executive Assistant Beverage Steve Sahl Tod Eberle Doug Wrathall Denise Hansen VP, Operations Engineering VP, Quality Systems and VP, Supply Chain VP, Human Resources Engineering Systems Operations Dean Mart
Slide 34: Beverage growth
Amcor Rigid Plastics – Beverage growth A strong position 08 Revenue Growth ($M) Growth Drivers FY2016 Hot Fill Growth Hot Fill MS 11% Cold Fill SS 47% Sport Drinks: strong organic growth from leading brands / new 2010-2016 entrant in BodyArmor Hot Fill SS 26% CAGR 5.8% RTD Tea: category success from
Slide 35: Beverage categories served
Amcor Rigid Plastics – Beverage categories served A strong position 09 Hot Fill Cold Fill
Slide 36: Beverage trends
Amcor Rigid Plastics – Beverage trends Attractive segments 10 Beverage market trends Underlying customer needs Associated packaging trends On the Go Single serve & dispensing features Changing Premium-ization Packaging needs to be right sized for lifestyles & Variety consumers, their families, and s
Slide 37: Beverage market landscape
Amcor Rigid Plastics – Beverage market landscape Attractive segments 11 Other HF Total US Market Size – PET (2016) HF Isotonics B units CAGR ‘10-’16 NA Beverage Hot Fill (PET) 15B 2.3% Market by Other CF Type Plain Isotonics 9.4B 4.9% Water Juice 3.3B -4.2% CSD RTD Tea 1.5B 23.0% Enhanced Water 0.8B
Slide 38: CSD landscape
Amcor Rigid Plastics – CSD landscape Attractive segments 12 Based on unit volume Based on fluid ounces By PET bottle type Multi Serve PET (>24 oz) Bottles Aluminum PET Aluminum Bottles Cans Cans Single Serve (<24 oz) 65 billion CSD units were sold in PET has surpassed cans with more Convenience pack
Slide 39: Substantial growth potential - Strategy
Amcor Rigid Plastics – Beverage (North America) Substantial growth potential - Strategy 13 Objectives Guiding Principles Outcome Pursue multiple growth Continued development of tailored account plans for Increase focus on customers: key customers paths by offering Continued focus on RBU and small vo
Slide 40: Beverage segments and models
Amcor Rigid Plastics – Beverage segments and models Substantial growth potential 14 New segments Innovative business models Premium fluid dairy Regional business unit Launching new stock portfolio / Aligning with Aseptic Focused approach to winning through capturing OEMs profitable segment Energy de
Slide 41: Beverage increasingly focused on small brands
Amcor Rigid Plastics – Beverage increasingly focused on small brands Substantial Growth Potential 15 As non-alcoholic beverage landscape embraces the transition to “healthier and better for you products,” emerging brands have gained significant share Source: First Beverage Corp, IRI
Slide 42: Beverage regional business unit
Amcor Rigid Plastics – Beverage regional business unit Substantial growth potential 16 A growing regional market requires a focused approach Winning through capturing profitable segment Dedicated cross-functional support Strong commercial resources and programs Unique points of differentiation with
Slide 43: Value Added Services (VAS) Model
Amcor Rigid Plastics – Beverage innovative business models Substantial growth potential 17 Value Added Services (VAS) Model Integral part of future value creation and will result in building even closer customer relationships Leverage customer projects and results to get in front of senior customer
Slide 44: Small Volume Production Platform (SVPP)
Amcor Rigid Plastics – Beverage manufacturing platforms Substantial growth potential 18 Small Volume Production Platform (SVPP) Scalable solutions Unique platform that enables customers access to Amcor’s suite of capabilities as well as our manufacturing network Offers a cost effective way to launch
Slide 45: Beverage innovations
Amcor Rigid Plastics – Beverage innovations Substantial growth potential 19 Hot Fill Cold Fill
Slide 46: Beverage (North America) Key messages
Amcor Rigid Plastics – Beverage (North America) Key messages 20 Strong position In attractive segments With substantial growth potential Operational excellence is a clear Favorable environment to support growth Leverage strong customer relationships differentiator Cold Fill and Hot Fill segments gro
Slide 47: Glossary
Glossary 21 Non-Alcoholic Post Consumer Single Serve Beverage Recycled Amcor Rigid Value Added Multi-Serve Plastics Services Carbonated Soft Supervisory Drinks & Water / Control and Data Ready-to-drink Cold Fill Acquisition Voice of the Regional Hot Fill Customer Business Unit
Slide 48: Research, Development and Advanced Engineering
Amcor Rigid Plastics Research, Development and Advanced Engineering June 2017
Slide 49: Agenda
Agenda 02 1 Leadership team 2 Key Messages a Strong track record supporting substantial growth potential b Creative AND aligned with customer needs c Agile with strong capabilities 3 Summary
Slide 50: Research, development and advanced engineering Leadership team
Research, development and advanced engineering Leadership team 03 Brian Carvill Marie Letson VP, Research, Development Executive Assistance and Advanced Engineering Mike Enayah Open Laurie Goetz Nilton Mattos Director, Director, Product Director, Technical Director, Product Industrial Design Develop
Slide 51: Research, development and advanced engineering Key messages
Amcor Rigid Plastics Research, development and advanced engineering Key messages 04 Strong track record supporting Creative AND aligned with Agile with strong capabilities substantial growth potential customer needs Utilizing technology roadmaps to focus 23% of revenue from products launched 120 cus
Slide 52: Customers served
© omcor | Customers served & PEPSICO voREAL @Mast (Lean sys) Pinnacle = EP 2 BACARDI BAUSCH +LOMB KraftHeinz method - oS nen Campbell SUTTER fly, "2x NOME 6a
Slide 53: Proactive design – Surprise and Delight
Proactive design – “Surprise and Delight” Strong track record supporting substantial growth potential 06
Slide 54: Premiumization through Closures: ROPP Quantum
Premiumization through Closures Strong track record supporting substantial growth potential 07 ROPP Quantum For Spirits and Wine
Slide 55: Customer Product Development
Customer Product Development Creative AND aligned with customer needs 08
Slide 56: Customer Product Development
Customer Product Development Creative AND aligned with customer needs 09 Body Armor Blue Waters Tylenol Club Barefoot Wine Pack
Slide 57: Lightweighting Roadmap
Lightweighting Roadmap Agile with strong capabilities 10
Slide 58: Sustainable packaging - Lightweighting
Sustainable packaging - Lightweighting Agile with strong capabilities 11 PowerStrapTM Oliva New HF base tech Creative design for ergo grip Designed for robust LW finish / base filling performance Lightest HF bottle in the a Americas
Slide 59: Sustainable packaging - Lightweighting
Sustainable packaging - Lightweighting Agile with strong capabilities 12 GOJO Pandora 2Ltr LW Collapses for easy dispensing Unique design to reinforce body New base/PF for ultra Lightweight panels supported by and enable light weighting lightweight columns Anti-creasing feet
Slide 60: R&D roadmap example – Performance wide mouth
R&D roadmap example – Performance wide mouth Agile with strong capabilities 13 2bn ARP has commercialized Apex63 and is finalizing development of the 82mm size. Continued focus on light-weighting & higher temperature capability. Alternative Materials Retort We are here 1.5bn Higher Temp PET Pasteuri
Slide 61: Sustainable packaging - material conversions
Sustainable packaging - material conversions Agile with strong capabilities 14 Alternate to cans Conversion from HPDE Conversion from Tetra PET bottle for new Monster segment New LATAM platform investment Premiumization through PET Dairy portfolio Stock offering of PET designs Conversion from glass
Slide 62: Sustainable packaging – Recycle, reuse, bio-resins
Sustainable packaging – Recycle, reuse, bio-resins Agile with strong capabilities 15 Recycle Reuse Bio-resins 100% PCR Refillable PET Renewable Polymers
Slide 63: Innovation through partnerships
Innovation through partnerships Agile with strong capabilities 16 Injection Machinery Resins and Barriers Research Institute Enabling technology for Collaboration with supplier for barrier Collaboration with top-tier research advancement of next generation for the ketchup market institute for green
Slide 64: New process technologies
New process technologies Agile with strong capabilities 17 Compression Blow Forming Amcor Versatile Tooling LiquiForm / Form Fill Solutions Lower cost to produce Flexible small-scale injection tooling Utilize product itself to form container Higher part consistency and quality allows for low cost cu
Slide 65: Research, development and advanced engineering Key messages
Amcor Rigid Plastics Research, development and advanced engineering Key messages 18 Strong track record supporting Creative AND aligned with Agile with strong capabilities substantial growth potential customer needs Utilizing technology roadmaps to focus 25% of revenue from products launched 120 cus