Slide 1: Amcor Results & Restructuring
AMCOR RESULTS & RESTRUCTURING
Slide 2: Agenda
AGENDA ◆ 1st half results ◆ Amcor demerger – “New” Amcor – PaperlinX ◆ Summary
Slide 3: Result Highlights
RESULT HIGHLIGHTS ◆ Strong PBIT increase of 12% on continuing businesses ◆ Continued improvement in offshore operations – Europe up 31% – North America up 20% ◆ Merging Australasian packaging operations ◆ Fibre Packaging in Australasia up 15% ◆ 15% PBIT increase for APPG ◆ Acquisitions – Smurfit / S
Slide 4: Amcor Group First Half Results
AMCOR GROUP First Half Results Dec Dec % 98 99 Change Sales $m 3,249 2,983 (8.2) PBIT $m 295 307 4.2 PAT $m 153 164 7.1
Slide 5: Growth on Continuing Business Basis
AMCOR GROUP Growth on Continuing Business Basis Dec Dec % 98 * 99 Change Sales $m 2,891 2,983 3.2 PBIT $m 274 307 11.9 PAT $m 144 164 14.0 * Dec 98 comparatives adjusted for disposals
Slide 6: Group PBIT
AMCOR GROUP PBIT PBIT $m % 320 20 18 300 16 280 14 Disposed PBIT 260 12 Continuing PBIT 10 RoAFE 240 8 220 6 200 4 Dec-97 Dec-98 Dec-99 Cont ContPBIT PBIT$m$m 250 250 274 274 307 307 Total TotalPBIT PBIT$m $m 263 263 295 295 307 307 ROFE ROFE% % 10.2 10.2 11.5 11.5 13.2 13.2
Slide 7: Divisional PBIT Continual Business Basis
DIVISIONAL PBIT CONTINUAL BUSINESS BASIS Dec Dec % 98 99 Change Aust Fibre Packaging 66.5 76.4 15 Aust Containers 46.6 40.2 (14) Europe 22.1 29.0 31 North America 43.3 52.3 20 Asia 17.1 16.7 (2) APPG 70.8 81.6 15
Slide 8: Amcor Restructuring
AMCOR RESTRUCTURING Amcor New Amcor PaperlinX Packaging Company Paper & Distribution Company
Slide 9: PaperlinX
PAPERLINX PaperlinX Paper Merchanting & Investments Manufacturing Distribution • 42% Spicers • Kraft papers • Communication papers No.1 Paper & Distribution Business in Australia
Slide 10: "New Amcor"
“NEW AMCOR” Amcor Amcor Amcor Amcor Australasia Europe Investments • Fibre • Flexibles • KCA • Metal • Printed cartons • Plastic Amcor Amcor North America Asia • PET • Corrugated • Plastic • Cartons • Distribution • Plastic
Slide 11: Amcor / PaperlinX Rationale
AMCOR / PAPERLINX Rationale ◆ Globalisation of industries ◆ Move towards single focus business ◆ Businesses in strong position – Restructuring completed – Earnings improved
Slide 12: Amcor / PaperlinX Benefits
AMCOR / PAPERLINX Benefits ◆ Businesses – Pursue specific strategies independently – Increased flexibility – Improved management focus – Better capital allocation ◆ Shareholders – Improved value – Increase flexibility in investment choice
Slide 13: PaperlinX Float
PAPERLINX FLOAT Process ◆ 82% of shares allocated to existing shareholders ◆ 18% sold to retail and institutional investors ◆ Prospectus available mid March ◆ EGM 10th April ◆ Bookbuild from 12th to 14th April ◆ Listing date 17th April
Slide 14: Amcor Strategy
AMCOR STRATEGY ◆ Focussed packaging company ◆ Significant global player ◆ Strong domestic base ◆ Target returns above 15% ◆ Capital discipline ◆ E-Commerce
Slide 15: The E-Business Evolution
THE E-BUSINESS EVOLUTION Convergence Cross-Industry Supplier/ Customer Business Value convergence Transformation Industry Integration transformation achieve competitive er Channel Integrate with advantage riv customers D Brochure ware and suppliers and buying/ selling e r Enabl E-Business Leverage
Slide 16: Approach to E-Business
AMCOR APPROACH TO E-BUSINESS ◆ Opportunity assessment undertaken – Business to business approach is being adopted • Customer relationships are still key to the way we do business • A number of key initiatives identified ◆ Pilot program underway with PWC/HP – Key customers already involved in develop
Slide 17: Broad Product Based Strategy in Australasia
BROAD PRODUCT BASED STRATEGY IN AUSTRALASIA Predictable returns High market Geographic Strong cash Low cost shares spread generation Strong relationships with global Corrugated Beverage & Flexible Cartons customers Food Cans Plastics … cash generation to fund growth internationally
Slide 18: Focussed Product Based Strategy Internationally
FOCUSSED PRODUCT BASED STRATEGY INTERNATIONALLY Significant growth Higher levels Geographic opportunities Strong of technology expansion and underlying and common growth innovation customers Meet customers’ needs in more products and Specialty Flexible Printed Specialty PET locations Plastics Plasti
Slide 19: Combined International Businesses' ROFE
COMBINED INTERNATIONAL BUSINESSES’ ROFE 20 16.2 14.8 15 % 10.0 10 8.4 5.7 5 0 FY 96 FY 97 FY 98 FY 99 1st Half 00
Slide 20: Global Speciality Printed Cartons
GLOBAL SPECIALITY PRINTED CARTONS Europe Europe Sales Sales$410 $410MM France France Asia Asia Switzerland Switzerland Sales Sales$105 $105MM Poland Poland China China Germany Germany Singapore Singapore Spain Spain Malaysia Malaysia Portugal Portugal * *Russia Russia Ireland Ireland Australasia Aus
Slide 21: Global Flexibles
GLOBAL FLEXIBLES Europe Europe Asia Asia Sales Sales$485 $485MM Sales Sales$10 $10MM North North America America Holland Holland China Sales China Sales$50 $50MM Belgium Belgium Germany Germany USA USA Spain Spain Poland Poland Australasia Australasia Sales Sales$400 $400MM Plants Plants 18 18 Austr
Slide 22: Amcor's Position - Flexibles
AMCOR’S POSITION - FLEXIBLES ◆ Australia – Strong market position – Broad range of technologies ◆ Europe – Specific technologies – High value adding products – Competitive advantages
Slide 23: PET
PET PET ◆ Strong position in Canada – 90% share – Bottled water - fast growth ◆ Strong technical expertise – Licences in South & Central America – Strong growth as they move from glass to PET
Slide 24: "New Amcor"
“NEW AMCOR” Sales ($m) EBIT ($m) North North America America $52 $703 Australia $122 Asia $17 Asia $120 Australia Europe $29 Europe $1,140 $400 July/Dec Sales July/Dec EBIT $2.4 billion $220 million