Slide 1: Amcor
Slide 2: Amcor share price since January 2001
Amcor share price since January 2001 $ 10.00 9.00 8.00 7.00 6.00 5.00 Jan 01 Oct 03 © Amcor Ltd 2003
Slide 3: Success drivers
Success drivers • Clear strategy • Quality management © Amcor Ltd 2003
Slide 4: Business mix
Business mix Australia & New Zealand 30% Rest of world 70% Percentage of 2003 EBITA earnings © Amcor Ltd 2003
Slide 5: Targeted market segments
Targeted market segments • Flexible packaging • PET containers • Tobacco packaging • Metal and plastic closures • Packaging distribution © Amcor Ltd 2003
Slide 6: Australia and New Zealand
Australia and New Zealand • Broad product offering • Strong relationships with the key customers © Amcor Ltd 2003
Slide 7: Consistent Earnings Per Share Growth
Consistent Earnings Per Share Growth Post Goodwill Amortisation Pre Goodwill Amortisation th 9.5% % Cents / share grow th 15.4 pound Cents / share grow Co m 45.4 mpound 50.0 42.1 Co 75.0 62.0 40.0 34.5 37.6 50.3 40.2 44.7 30.0 50.0 20.0 25.0 10.0 0.0 0.0 2000 2001 2002 2003 2000 2001 2002 2003 © Amc
Slide 8: Broad geographic spread
Broad geographic spread Australia Argentina New Zealand Brazil Belgium Canada Denmark Colombia Finland Dominican Republic France Ecuador Germany El Salvador Hungary Ireland 238 Plants Honduras Mexico Italy Puerto Rico Morocco Netherlands 42 Countries Peru United States Norway Uruguay Poland Venezuel
Slide 9: Product Leadership Innovation
Product Leadership Innovation © Amcor Ltd 2003
Slide 10: Product Leadership Innovation
Product Leadership Innovation • Develop scale in chosen market segments • Product development spend $106 million © Amcor Ltd 2003
Slide 11: Successful integration of Schmalbach-Lubeca
Successful integration of Schmalbach-Lubeca • $2.7 billion acquisition in July 2002. • Synergies ahead of targets • Volumes up 11% • Return of funds invested 10.8% © Amcor Ltd 2003
Slide 12: World leader in PET packaging
World leader in PET packaging Sales $3.3 billion 70 Plants 23 Countries © Amcor Ltd 2003
Slide 13: New wine bottle plant
New wine bottle plant • Commissioned June 2002 • Exceed expectations in manufacturing key performance indicators • Strong customer support • Construction of second furnace announced in March for completion early 2005 © Amcor Ltd 2003
Slide 14: © Amcor Ltd 2003
© Amcor Ltd 2003
Slide 15: Strong profit increase for 2003 year
Strong profit increase for 2003 year • Sales up 43% to $10.7 billion • Profit after tax up 36% to $431 million © Amcor Ltd 2003
Slide 16: Strong earnings per share growth
Strong earnings per share growth • Earnings per share up 7.8% to 45.4 cents • Earnings per share before goodwill up 23% to 62.0 cents © Amcor Ltd 2003
Slide 17: Consistent Earnings Per Share Growth
Consistent Earnings Per Share Growth Post Goodwill Amortisation Pre Goodwill Amortisation th 9.5% % Cents / share grow th 15.4 pound Cents / share grow Co m 45.4 mpound 50.0 42.1 Co 75.0 62.0 40.0 34.5 37.6 50.3 40.2 44.7 30.0 50.0 20.0 25.0 10.0 0.0 0.0 2000 2001 2002 2003 2000 2001 2002 2003 © Amc
Slide 18: Cash Flow from Operations
Cash Flow from Operations* 1.4 $m 1000 Compound CFO growth per share 19.6% pa 1.05 1.13 1.2 800 $ share 0.84 1 600 0.66 0.8 945 0.6 400 694 0.4 526 200 415 0.2 0 0 1999/00 2000/01 2001/02 2002/03 Full Year Full Year Full Year Full Year* CFO = Cash Flow from Operations CFO per share * Before signific
Slide 19: Growth benefiting shareholders
Growth benefiting shareholders • Improving share price • Dividend increased 7% to 30 cents per share © Amcor Ltd 2003
Slide 20: PBITA to Average Funds Invested
PBITA to Average Funds Invested % 16 15.0 14 12.9 12.8 9.1% Pre Tax WACC 12.2 12 11.2 11.2 10.0 10 9.6 8 6 4 2 0 96/97 * 97/98 * 98/99 99/00 00/01 01/02 02/03 © Amcor Ltd 2003
Slide 21: Breakdown by business segment
Breakdown by business segment Australasia 30% Flexibles 17% Asia Rentsch & PET Closures 34% Sunclipse Percentage of 2003 EBITA earnings © Amcor Ltd 2003
Slide 22: Volume Growth 11%
Volume Growth 11% Unit volume increase from 24.9 billion in 2002 to 27.7 billion in 2003 © Amcor Ltd 2003
Slide 23: PET Packaging
Amcor PET Packaging • Profit before interest, tax and goodwill amortisation up 30% to $318.6 million • Returns on average funds invested 10.8% © Amcor Ltd 2003
Slide 24: North America
North America Europe/ Unit volume split by region Asia 31% North America 54% Latin America 15% • Volumes up 23% in the United States and 12% in Canada • In the United States – CSD and water up 11% – Bottled water growth greater than 45%. – Custom growth 25% • Strong growth in isotonics and sports dr
Slide 25: Latin America
Latin America Europe/ Asia Unit volume split by region 31% North America 54% Latin America 15% • Outstanding result in Mexico – Strong growth in isotonic sport drinks • Regional profit up 25% on a like for like basis © Amcor Ltd 2003
Slide 26: Europe/Asia
Europe/Asia Europe/ Unit volume split by region Asia 31% North America 54% Latin America 15% • Volume growth 4% for the year – Second half growth 6% – Volume growth in custom 19% • Strong volume growth in the UK, Spain and France © Amcor Ltd 2003
Slide 27: Australasia
Amcor Australasia • Profit before interest tax and goodwill amortisation up 11% to $283 million • Return on average funds invested 15.6% © Amcor Ltd 2003
Slide 28: Fibre packaging
Fibre packaging • Volumes up 6% • Substantial restructuring underway © Amcor Ltd 2003
Slide 29: Australasia
Amcor Australasia • Solid performances across other business units • Drought impacted some business units • New wine bottle plant had an excellent first year © Amcor Ltd 2003
Slide 30: Flexibles
Amcor Flexibles • Profit before interest, tax and goodwill amortisation up 43% to $133 million • Return on funds invested up from 8.6% to 11.0% © Amcor Ltd 2003
Slide 31: Flexibles
Amcor Flexibles • Successful restructuring of operations – Five plants closed – Headcount reduction of 900 • Improved EBITA to sales margin from 4.7% to 6.2% © Amcor Ltd 2003
Slide 32: Sunclipse
Amcor Sunclipse • Difficult year, impacted by the poor economic conditions in the US • Gross margins maintained of 25.5% • Return on average funds invested 15.0% © Amcor Ltd 2003
Slide 33: Rentsch and Closures
Amcor Rentsch and Closures • Profit before interest, tax and goodwill amortisation up 73% to $84 million • Return on average funds invested 8.2% © Amcor Ltd 2003
Slide 34: Rentsch and Closures
Amcor Rentsch and Closures • Strong performance from Amcor Rentsch – Ongoing growth in Russia • Closures impacted by deposit legislation in Germany © Amcor Ltd 2003
Slide 35: Asia
Amcor Asia • Profit before interest, tax and goodwill amortisation down 28% • Return on average funds invested 11% • SARS virus severely impacted results in the second half © Amcor Ltd 2003
Slide 36: Subsequent events
Subsequent events • Acquisition of 28% minority position in Amcor Flexibles Europe • Purchase price $173 million • Multiple of 6.3 times trailing EBITDA • Secures 100% future growth in Amcor Flexibles Europe © Amcor Ltd 2003
Slide 37: Rexam's Plant Locations
Rexam’s Plant Locations Rexam Locationsh USA : Mundelein, Illinois Madison, Wisconsin Mt.Holly, New Ashland, Massachusetts Jersey Europe: Sligo, Ireland Winterbourne, UK Coulommiers, France Latin America: Cidra, Puerto Rico Sao Paolo, Brazil Asia: Singapore Sales $390 million © Amcor Ltd 2003
Slide 38: Amcor and Rexam Healthcare
Amcor and Rexam Healthcare Combined businesses Sales $535 million Plants 16 Countries 12 Rexam Locations USA: Mundelein, Illinois Amcor Healthcare Sites g Madison, Wisconsin Mt.Holly, New Jersey Europe: AF Transpac, Gent, Belgium Ashland, Massachusetts AF Albertazzi, Soliera, Italy Europe: AF Leader
Slide 39: Rexam Healthcare Flexibles
Rexam Healthcare Flexibles • Purchase Rexam Healthcare Flexibles for $330 million • Equating to a last twelve months EBITDA multiple of 6.5x • Year three return on funds invested of >15% • Positive incremental earnings in year one © Amcor Ltd 2003
Slide 40: Safety
Safety © Amcor Ltd 2003
Slide 41: Lost time injury frequency rate
Lost time injury frequency rate 20 15.1 15 10 8.9 6.3 4.7 5 4.0 3.8 3.3 0 1997 1998 1999 2000 2001 2002 2003 © Amcor Ltd 2003
Slide 42: Environment
) AMCOR Environment ENVIRONMENT COMMITMENT FUTURE © Amcor Ltd 2003
Slide 43: Environment
Environment • 15 sites certified in past year for ISO14001 • Total of 41 sites now certified for ISO14001 • Committed to recycling • Supporter of the National Packaging Covenant © Amcor Ltd 2003
Slide 44: © Amcor Ltd 2003
© Amcor Ltd 2003
Slide 45: PET Packaging
Amcor PET Packaging • Volumes up 15% – Europe volumes up 19% – North American volumes up 16% – Latin America volumes up 4% • Profit before interest, tax and goodwill amortisation up 9% in local currency terms © Amcor Ltd 2003
Slide 46: PET Packaging
Amcor PET Packaging • PET beer bottle introduced to the German market • Alcoa’s Latin American PET acquisition effective October 1 © Amcor Ltd 2003
Slide 47: Australasia
Amcor Australasia • Profit before interest, tax and goodwill amortisation up 12% • Strong performance from Fibre Packaging • Wine bottle plant performing well © Amcor Ltd 2003
Slide 48: Flexibles
Amcor Flexibles • Profit before interest, tax and goodwill amortisation up 6% in local currency terms • Sales margins continue to improve • Mixed conditions across Europe – UK and southern region performing well – Poor economic conditions in Germany © Amcor Ltd 2003
Slide 49: Sunclipse
Amcor Sunclipse • Profit before interest, tax and goodwill amortisation down 32% in local currency terms • Little improvement in the US economy • Earnings likely to be flat for the current year © Amcor Ltd 2003
Slide 50: Rentsch and Closures
Amcor Rentsch and Closures • Profit before interest, tax and goodwill amortisation up 11% in local currency terms • Amcor Rentsch strong start to the year • Amcor Closures managing costs base © Amcor Ltd 2003
Slide 51: Asia
Amcor Asia • Profit before interest, tax and goodwill amortisation down 17% in local currency terms • Improvement from lows of SARS virus impact • Tobacco up on last year • Flexibles in line • Corrugated down, especially in Malaysia © Amcor Ltd 2003
Slide 52: Amcor group
Amcor group • Profit after tax up 4% • Impacted by strong Australian dollar – First quarter this year exchange rate 66 cents to $US – First quarter last year 55 cents to $US • Less impact for balance of the year © Amcor Ltd 2003
Slide 53: Amcor group
Amcor group • Targeting earnings growth for the full year • Benefits from recently completed acquisitions – Rexam Healthcare Flexibles – Alcoa PET in Latin America © Amcor Ltd 2003
Slide 54: Conclusion
Conclusion • 2003 was another very successful year • Key drivers for success – Consistent strategy – Strict financial disciplines © Amcor Ltd 2003
Slide 55: Conclusion
Conclusion • Successful integration of $2.7 billion acquisition of Schmalbach-Lubeca • Strong local management © Amcor Ltd 2003
Slide 56: A global leader in packaging
A global leader in packaging © Amcor Ltd 2003
Slide 57: © Amcor Ltd 2003
© Amcor Ltd 2003