Amcor Plc · NYSE:AMCR
Amcor — Investor Day (September 2020)
127 slides from Amcor's investor day presentation, Sep 29, 2020
Slide 1: Investor Briefing September 29, 2020
INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 2: Disclaimers
Disclaimers Cautionary Statement Regarding Forward-Looking Statements This document contains certain statements that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are generall
Slide 3: Today's presenters
Today’s presenters INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 4: Today's Presenters
Today’s Presenters Tracey Whitehead Ron Delia David Clark Senior Vice President, Investor Relations Chief Executive Officer Vice President, Sustainability • Joined Amcor in 2009 • Joined Amcor in 2005 • Joined Amcor in 2004 • Appointed to current position in 2016 • Appointed to current position in 2
Slide 5: Today's Presenters
Today’s Presenters Eric Roegner Carmen Becker Peter Konieczny President, Amcor Rigid Packaging VP & GM, NA Specialty Containers Chief Commercial Officer • Joined Amcor in 2018 • Joined Amcor in 2020 • Joined Amcor in 2010 • Appointed to current position in 2018 • Appointed to current position in 202
Slide 6: Today's Presenters
Today’s Presenters Bill Jackson Fred Stephan Michael Zacka Chief Technology Officer, Global Flexibles President, Flexibles North America President, Flexibles EMEA • Joined Amcor in 2019 • Joined Amcor in 2019 • Joined Amcor in 2017 • Appointed to current position in 2019 • Appointed to current posit
Slide 7: Today's Presenters
Today’s Presenters Xin She Ruben Melara VP & GM, Flexibles China VP & GM, Flexibles Brazil • Joined Amcor in 2018 • Joined Amcor in 2009 • Appointed to current position in 2018 • Appointed to current position in 2019 • Prior experiences include 16 years experience at Tetra Pak and • Former Amcor pos
Slide 8: Welcome
Welcome Tracey Whitehead SVP & Head of Investor Relations INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 9: Objectives for today
Objectives for today • Provide an overview of Amcor • Clearly outline our investment case • Introduce some of our management team 9 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 10: Agenda
1 Why Invest in Amcor? Ron Delia, Chief Executive Officer 2 Sustainability David Clark, VP Sustainability 3 Amcor Rigid Packaging Eric Roegner, President Rigid Packaging Carmen Becker, VP & GM, NA Specialty Containers Q&A Session #1 Agenda 4 Amcor Flexibles Peter Konieczny, Chief Commercial Officer
Slide 11: Why Invest in Amcor?
Why Invest in Amcor? Ron Delia Chief Executive Officer INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 12: Safety
Safety Amcor Values Recordable-case frequency rate (per million hours worked) 11.2 Includes impact of acquired businesses 4.1 2.8 2.0 Committed to our goal of 0.6 No Injuries 2005 2010 2015 2020 2020 OSHA 12 INVESTOR BRIEFING Notes: Recordable cases per 1,000,000 hours worked. All data shown for a 1
Slide 13: Why invest in Amcor?
Why invest in Amcor? Global industry leader with proven track record and clear strategy Consistent growth from consumer and healthcare end markets Attractive and growing dividend with current yield >4% Strong balance sheet, substantial capacity to invest and many growth opportunities Momentum buildi
Slide 14: Global leader in consumer packaging
Global leader in consumer packaging • Founded in Australia in 1860 • NYSE (AMCR) and ASX (AMC) listed • $17.3 bn market cap, $12.5 bn sales, $1.9 bn EBITDA • ~230 locations, ~47,000 employees, >40 countries Global Industry Consistent Attractive Financial Strength Momentum Leader Growth Dividend & Ca
Slide 15: Strong track record of financial performance
Strong track record of financial performance 2010 - 2020 >20 +6% +8% +15% YEARS +4.6% Investment Adjusted Adjusted Average TSR grade credit EBITDA EPS CAGR Dividend Yield CAGR rating CAGR (6% DPS CAGR) 15 INVESTOR BRIEFING Notes: 10 year CAGR based on 2010 IFRS results as reported by Amcor in AUD co
Slide 16: Consumer packaging for food, beverage and healthcare
Consumer packaging for food, beverage and healthcare >95% of sales to consumer end markets Consistent growth Other Other 4% consumer 9% HPC 5% Food Healthcare 44% 14% $12.5 bn FY20 sales Beverage 24% 16 INVESTOR BRIEFING Notes: HPC is Home & Personal Care SEPTEMBER 29, 2020
Slide 17: Four primary packaging product segments
Four primary packaging product segments Flexible Packaging Rigid Packaging Rigid packaging 21% Specialty cartons 9% $12.5 bn Closures FY20 sales 2% Closures Specialty Cartons Flexible packaging 68% 17 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 18: Global reach, balanced geographically and scale in EMs
Global reach, balanced geographically and scale in EMs >$3 bn Emerging Markets business across 27 countries Western Europe 24% $12.5 bn Emerging FY20 sales markets 26% North America 47% ANZ Sales ($B) Plants Countries 3% Latin America 1.5 48 10 Asia 1.1 32 8 43 Eastern Europe 0.6 16 9 ~230 countries
Slide 19: Amcor Strategy
Amcor Strategy Our businesses FOCUSED & COMPLEMENTARY FLEXIBLE RIGID SPECIALTY CLOSURES PACKAGING PACKAGING CARTONS PORTFOLIO: Our differentiated capabilities THE AMCOR WAY: Our winning aspiration Significant growth opportunities WINNING FOR INVESTORS, CUSTOMERS, THE leading global packaging company
Slide 20: Portfolio evolution – Active management and optimization
Portfolio evolution – Active management and optimization Focus on maximising shareholder value and meeting evolving consumer needs 2002 2016 Rigid Packaging 2010 Rigid Schmalbach- Rigid Packaging 2019 2001 Lubeca Packaging Sonoco Global 2010 Ball Plastics 2016 Flexible Europe Flexibles Global Flexib
Slide 21: Portfolio today - Focused with leadership and scale
Portfolio today - Focused with leadership and scale Market leadership and scale positions #1 Global Flexible Healthcare Packaging #1 Flexible Packaging North America FLEXIBLE RIGID SPECIALTY CLOSURES PACKAGING PACKAGING CARTONS #1 Rigid Packaging North America Common Characteristics Multiple Paths t
Slide 22: Portfolio today – Complementary and generating synergies
Portfolio today – Complementary and generating synergies Innovation Sourcing Manufacturing Marketing Sales Flexibles Rigids Speciality Cartons Closures Talent, capability, cost and growth synergies 22 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 23: Amcor Strategy – Differentiated capabilities
Amcor Strategy – Differentiated capabilities Our businesses FOCUSED & COMPLEMENTARY FLEXIBLE RIGID SPECIALTY CLOSURES PACKAGING PACKAGING CARTONS PORTFOLIO: Our differentiated capabilities THE AMCOR WAY: Capabilities deployed consistently across Amcor creating competitive advantages that enable our
Slide 24: The Amcor Way: Commercial Excellence
The Amcor Way: Commercial Excellence ValuePlus launched in 2006 Measuring profitability at product Vision and segment level… Grow Sales & Margin Marketing Capabilities Sales Force Effectiveness …to make informed choices about mix management Key Account Management Pricing Trend for positive PM custom
Slide 25: The Amcor Way: Driving competitive advantage and financial impact
The Amcor Way: Driving competitive advantage and financial impact 12.0% 12.0% 11.6% 11.4% 11.2% 11.1% 10.9% 11.0% 9.1% 8.7% 8.1% Adjusted EBIT Margins 7.7% Amcor 6.8% Combined Amcor and Bemis FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 25 INVESTOR BRIEFING Notes: FY09 to FY18 Amcor l
Slide 26: Amcor Strategy
Amcor Strategy Our businesses FOCUSED & COMPLEMENTARY FLEXIBLE RIGID SPECIALTY CLOSURES PACKAGING PACKAGING CARTONS PORTFOLIO: Our differentiated capabilities THE AMCOR WAY: Our winning aspiration Significant growth opportunities WINNING FOR INVESTORS, CUSTOMERS, THE leading global packaging company
Slide 27: Amcor Shareholder Value Creation Model
Amcor Shareholder Value Creation Model Strong cash flow funds multiple drivers of value for shareholders Capital Organic profit expenditure growth (~ $500m) ~ 3-4% STRONG, TOTAL DEFENSIVE Dividend Historical yield SHAREHOLDER VALUE CASH FLOW (~ $750m) ~ 4-5% (EPS growth + yield) 10-15% per year Acqu
Slide 28: Strong operating performance and shareholder returns
Strong operating performance and shareholder returns Operating Performance1 Total Shareholder Returns2 12% 11% 8% 5% 2% Sales EBIT EPS EPS + dividend yield Amcor Average annual constant currency growth (FY14-FY20) Annualised TSR (FY14-FY20) 28 INVESTOR BRIEFING Notes: Orora demerger completed and fi
Slide 29: Multiple levers drive organic profit growth
Multiple levers drive organic profit growth Markets 1 Growing consumer end markets Proactive mix management 2 End segments, Products, Customers Innovation 3 Differentiated products Cost productivity 4 Scale and capabilities 29 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 30: Multiple levers drive organic profit growth
Multiple levers drive organic profit growth Markets 1 Growing consumer end markets Proactive mix management 2 End segments, Products, Customers Innovation 3 Differentiated products Cost productivity 4 Scale and capabilities 30 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 31: Consistent growth from consumer and healthcare segments
Consistent growth from consumer and healthcare segments Premiumization Food Health & Wellness Beverage • Developed markets growth - LSD Convenience / On-the-Go • Emerging markets growth - MSD Healthcare e-Commerce Home & Personal Care Sustainability 31 INVESTOR BRIEFING Notes LSD = Low single digits
Slide 32: Long history of profitable growth in emerging markets
Long history of profitable growth in emerging markets Emerging market packaging growth drivers Amcor emerging market key success factors Lower income Inflection point • Young and growing population • Urbanisation and rising incomes • Wet market consumption of Czech France Experienced, profit focused
Slide 33: Proactive mix management
Proactive mix management Ongoing migration toward more advantaged segments Product mix eg, Higher Barrier Resealable Product mix Retortable • Multiple mix drivers Stand-Up • Informed choices on topline Segment mix Customer mix • Blended outcome contributes eg, Medical Large and Small Global and Loca
Slide 34: Global leader in healthcare – Medical and Pharma packaging
Global leader in healthcare – Medical and Pharma packaging Approaching $2bn sales across Flexibles and Rigid Packaging Medical Pharma ~50% ~50% 34 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 35: Global healthcare footprint with scale in every region
Global healthcare footprint with scale in every region 2 - UK DENMARK - 1 1 - IRELAND GERMANY - 2 1 - BELGIUM SWITZERLAND - 2 Security of supply 4 - FRANCE ITALY - 2 1 - PORTUGAL 20 - USA SPAIN - 1 1- MOROCCO Certified & qualified CHINA – 3 production facilities 1- PUERTO RICO INDIA - 1 1- COLOMBIA
Slide 36: Highly regarded innovation capabilities
Highly regarded innovation capabilities Innovation agenda driven by consumer needs Differentiation Product safety >500 Active patent families and Cost reduction Sustainability Functionality growing Shelf Life Convenience ~$100 Recognition Million Annual R&D spend 36 INVESTOR BRIEFING Notes: Patent f
Slide 37: Compelling dividend
Compelling dividend Attractive yield and history of dividend growth Attractive dividend yield +6% 10 year DPS CAGR Member of the S&P500 Dividend Aristocrats 4.7% 1.9% Amcor S&P 500 37 INVESTOR BRIEFING Notes: Dividend yield as at July 1, 2020 SEPTEMBER 29, 2020
Slide 38: Balanced capital allocation
Balanced capital allocation Buy-backs >30 acquisitions >$3 billion acquisitions since 2010 and buy-backs since 2010 Acquisitions Significant M&A pipeline across all Amcor business 38 INVESTOR BRIEFING Notes: Investment in acquisitions excludes the all-stock acquisition of Bemis in 2019 SEPTEMBER 29,
Slide 39: Bemis acquisition – delivering financial and strategic benefits
Bemis acquisition – delivering financial and strategic benefits Enhancing financial performance Delivering strategic benefits Cost synergies: FY20 $80m delivered; FY21 $50-$70m expected; High quality, well invested business $180m total expected by FY22 First year integration and synergies Contributi
Slide 40: Amcor Shareholder Value Creation Model
Amcor Shareholder Value Creation Model Strong cash flow funds multiple drivers of value for shareholders Capital Organic profit expenditure growth (~ $500m) ~ 3-4% STRONG, TOTAL DEFENSIVE Dividend Historical yield SHAREHOLDER VALUE CASH FLOW (~ $750m) ~ 4-5% (EPS growth + yield) 10-15% per year Acqu
Slide 41: Amcor Shareholder Value Creation Model
Amcor Shareholder Value Creation Model Strong cash flow funds multiple drivers of value for shareholders Capital expenditure (~ $500m) EPS growth ~5-10% STRONG, Total DEFENSIVE Acquisitions / (Organic ~ 3-4%) Shareholder Value buy-backs CASH FLOW (~ $300-400m) (EPS growth + yield) 10-15% per year Di
Slide 42: Why invest in Amcor?
Why invest in Amcor? Global industry leader with proven track record and clear strategy Consistent growth from consumer and healthcare end markets Attractive and growing dividend with current yield >4% Strong balance sheet, substantial capacity to invest and many growth opportunities Momentum buildi
Slide 43: Sustainability
Sustainability David Clark Vice President, Sustainability INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 44: Sustainability at Amcor
Sustainability at Amcor Our Pledge for 2025 Part of our winning aspiration Develop all our packaging to be recyclable or reusable by 2025 and our best opportunity for Significantly increase our use differentiation and growth of recycled materials in our packaging Work with others to drive consistent
Slide 45: Amcor's comprehensive sustainability strategy
Amcor’s comprehensive sustainability strategy EnviroAction – sustainable operations Recognized externally Progress since 2006 83% 33% Waste Greenhouse to disposal gas emissions intensity 100% Of sites have water management plans Strictly Confidential – for internal use only 45 INVESTOR BRIEFING SEPT
Slide 46: Amcor's Points of View on packaging sustainability
Amcor’s “Points of View” on packaging sustainability There will always be a Requirements of packaging are Responsible packaging is Amcor is uniquely role for packaging increasing: end of life solutions / the answer positioned and taking waste reduction are critical action to lead the way Consumers w
Slide 47: Amcor offers a full range of more sustainable packaging options
Amcor offers a full range of more sustainable packaging options 100% PCR Lighter weight Recycle ready Reusable Aluminium Paper Bio based materials Compostable 47 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 48: Responsible packaging is the answer
Responsible packaging is the answer Achieving less waste takes: Waste management Consumer Packaging design infrastructure participation Amcor is uniquely positioned as industry leader with Scale, Resources and Capabilities 48 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 49: Packaging design that considers the full product lifecycle
Packaging design that considers the full product lifecycle Substrate choice and product design greatly affect environmental impact Greenhouse gas emissions Current Ability to use Packaging made (Kg-CO2 equivalent) recycling rate recycled content with 100% recycled ‘000 in packaging content today Fle
Slide 50: Defining what makes packaging recyclable
Defining what makes packaging recyclable Monolayer Designed for Recycling Developing packaging Recyclable (Recycling-Ready) to be recyclable is NOT about multilayer vs monolayer Multilayer Not Recyclable 50 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 51: Smart packaging design aligns materials and recycling streams
Smart packaging design aligns materials and recycling streams Developing packaging to be Recycled recyclable IS about compatibility with Designed for Recycling existing (Recycling-Ready) and future recycling streams Recyclable Current Major Recycling Streams Designed to be recycled PET ALUMINIUM POL
Slide 52: Collaborating to develop global and regional standards for package recycling
Collaborating to develop global and regional standards for package recycling 52 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 53: Amcor on track for fully recyclable or reusable portfolio by 2025
Amcor on track for fully recyclable or reusable portfolio by 2025 % Amcor product portfolio designed to be recycled today Rigid Packaging 95% Amcor innovation agenda will get our portfolio to 100% Specialty Cartons 100% Flexible Packaging 61% 53 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 54: Recycling systems for flexible packaging are rapidly developing
PRIVATE & CONFIDENTIAL Recycling systems for flexible packaging are rapidly developing Multiple examples exist in practice and progress continues For all existing and future recycling streams No separate collection Partial collection Full collection Full collection No recycling Partial recycling Par
Slide 55: Actively partnering to accelerate change in waste management
Actively partnering to accelerate change in waste management Amcor’s goals • Support recycling infrastructure • Educate policy and funding models • Demonstrate practical solutions • Increase demand for PCR 55 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 56: A partnership example in practice: MRFF
A partnership example in practice: MRFF • Amcor is a founding member of The Materials Recovery for the Future (MRFF) - A research collaborative committed to creating recycling solutions. • MRFF led a pilot project to collect flexible packaging in a single-stream curbside recycling program in Pennsyl
Slide 57: Actively informing and educating the public
Actively informing and educating the public 57 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 58: Sustainability at Amcor
Sustainability at Amcor Our Pledge for 2025 Part of our winning aspiration Develop all our packaging to be recyclable or reusable by 2025 and our best opportunity for Significantly increase our use differentiation and growth of recycled materials in our packaging Work with others to drive consistent
Slide 59: Rigid Packaging
Rigid Packaging Eric Roegner President, Amcor Rigid Packaging Carmen Becker Vice President & General Manager, North America Specialty Containers INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 60: Amcor Rigid Packaging segment overview
Amcor Rigid Packaging segment overview Comprehensive footprint in strategic locations across the Americas region Bericap, 5% Latin America, 18% $2.7bn 3 Canada FY20 sales 24 Unites States North America, 4 1 Dominican Republic Mexico 77% 1 Trinidad & Tobago El Salvador 1 5 Venezuela Colombia 3 5 Braz
Slide 61: Strong value proposition and diversified customer base
Strong value proposition and diversified customer base Amcor value proposition Select customers Scale player Diversified technologies Innovation leader Advantaged plant network 61 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 62: Amcor Rigid Packaging – Multiple levers drive organic profit growth
Amcor Rigid Packaging – Multiple levers drive organic profit growth Markets Growing formats in beverage and non-beverage end markets Growing consumer end markets Breadth and leadership in Latin America Proactive mix management Regional customers Organic EPS growth End segments, Products, Customers E
Slide 63: North America - Advantaged manufacturing network
North America - Advantaged manufacturing network Plants in close proximity to key markets and customers Leverage footprint and cost base for diversification of product and segment mix Industry leading asset productivity and unit cost position 63 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 64: North America – Significant diversification over the last 10 years
64 North America – Significant diversification over the last 10 years Balanced business mix enabled by expanded technology offering North America Gross Margin Expansion of key technologies and materials 2010 2x sales Technologies Materials mix • Injection molding • PET • Injection stretch blow moldi
Slide 65: North America – Positioned for growth in all segments
North America – Positioned for growth in all segments Food, Healthcare, HPC, Wine & Spirits Closures Beverage 65 INVESTOR BRIEFING Notes: HPC is Home & Personal Care SEPTEMBER 29, 2020
Slide 66: North America – Beverage market growing in PET format
North America – Beverage market growing in PET format PET continues to grow overall.... ....with continual new product launches North America beverage units by pack format Recent new products or package conversions LRB: +1.9% PET: +2.3% Powerade Monster Hydro Creative CY15-19 4-Yr CAGR Ultra Super S
Slide 67: Most Sustainable Package
Most Sustainable Package Key attributes of PET PCR1 Usage +60% • 100% recyclable – essentially infinite • 100% PCR1 possible and happening today +50% • Unbreakable, transparent, re-closable, hygienic • Lighter weight - lower GHG FY18 FY20 FY21 est % of total resin 8% 13% converted >200k tonnes >1 mi
Slide 68: North America - Strong growth with regional customers
North America - Strong growth with regional customers A focused approach to servicing growing regional customer base Amcor’s unique value proposition Dedicated commercial resources Speed to market Access to world class innovation Sales Focused on growth segments CAGR of 13% Small volume production p
Slide 69: Focus segment: North America pharma
Focus segment: North America pharma Growing segments with significant opportunities to differentiate through innovation Amcor’s differentiated Focus on growing value proposition segments • Ophthalmic Regulatory expertise • Nutraceuticals Speed to market • Diagnostics • Animal Health Supply continuit
Slide 70: Focus segment: Dairy, Dairy Alternatives & Meal Replacement
Focus segment: Dairy, Dairy Alternatives & Meal Replacement Well positioned in the growing single serve, innovative, value add segment Strong product portfolio Strong top-line growth • Brands repositioning products to expanded usage Sales CAGR occasions and alternative benefits 14% • Growth in new,
Slide 71: Industry leading innovation & technology
Industry leading innovation & technology What we have What we do 2 >200 • Package design and engineering Innovation Centers Product launches in FY20 • Barrier capability 170 13 • Lightweighting Patent Families Industry awards in the • Increased use of PCR past three years • Scale to support strategi
Slide 72: World class R&D and innovation capabilities
World class R&D and innovation capabilities VIDEO 72 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 73: Innovation leader - Hot fill
Innovation leader - Hot fill Well positioned as technology leader in growing hot fill segments Hot fill products Complex technologies to achieve both vacuum absorption and weight reduction • Filled at <185 degrees Fahrenheit and capped • > 60 patent families - vacuum absorption, weight reduction, •
Slide 74: Innovation Leader – Hot fill: Commercialized Examples
Innovation Leader – Hot fill Commercialized Examples Key competitive advantage delivering cost savings and design freedom 44.9g to 40.7g 35.8g to 30.1g 31.0g to 24.7g 34g to 26g 34g to 24g 38g to 34.5g 30.4g to 22g 21g to 18g Next generation technology Panel PowerFlex™ PowerStrap™ nearing commercial
Slide 75: Amcor Rigid Packaging – Key messages
Amcor Rigid Packaging – Key messages 1. Market leader in the Americas region 2. Diversified business aligned with the most attractive growth segments 3. World class R&D infrastructure and capabilities 4. Comprehensive and strategically advantaged footprint 5. Well positioned to capitalise on growth
Slide 76: Q&A
Ron Delia Chief Executive Officer David Clark Vice President, Sustainability Q&A Eric Roegner President, Amcor Rigid Packaging Carmen Becker Vice President & General Manager, North America Specialty Containers INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 77: 5 minute break
5 minute break INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 78: Amcor Flexibles
Amcor Flexibles Peter Konieczny Chief Commercial Officer INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 79: Amcor Flexibles – Key messages
Amcor Flexibles – Key messages 1. The only player with a truly global footprint 2. Leadership and scale in every region 3. Leading in differentiated and growing segments 4. World class R&D infrastructure and capabilities 5. Multiple sources of organic and acquisition growth 79 INVESTOR BRIEFING SEPT
Slide 80: Amcor Flexibles – Segment overview
Amcor Flexibles – Segment overview Global leader with well balanced geographic footprint ANZ, 4% North Emerging America Markets $9.8bn 37% 28% sales by geography Western Europe 31% Plants Countries Employees ~180 39 ~40,000 HEAD OFFICE CORPORATE FLEXIBLES FLEXIBLES FLEXIBLES CAPSULES FLEXIBLES SPECI
Slide 81: Global Leader in Specialty Cartons
Global Leader in Specialty Cartons Net Sales $1.1 billion Plants 20 Countries 17 FY20 sales • Global leader by region • Customer relationships People ~4,300 • Innovation capability • Operational excellence North America Western Europe Emerging Markets 81 INVESTOR BRIEFING Note: Reflects FY20 sales S
Slide 82: Amcor Flexibles – Global footprint with scale in every region
Amcor Flexibles – Global footprint with scale in every region Leadership in every region with room to grow Flexibles Europe ($B) 3.3 Flexibles North America ($B) 3.4 Market Market size Amcor Competitor size ~$20bn ~$16bn Flexibles Asia ($B) Market size 1.3 ~$30bn Amcor Competitor Amcor Competitor Ma
Slide 83: Amcor Flexibles – Multiple levers drive organic profit growth
Amcor Flexibles – Multiple levers drive organic profit growth Markets Growing consumer staple end markets Growing consumer end markets Scale, breadth and leadership in emerging markets Proactive mix management Broad base of global and local customers Organic EPS growth End segments, Products, Custom
Slide 84: Amcor Global Flexibles R&D
Amcor Global Flexibles R&D Bill Jackson Chief Technology Officer, Global Flexibles INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 85: Global Flexibles Research & Development Overview
Global Flexibles Research & Development Overview What We Have What We Do 4 >350 ~50 • Global technology platforms Innovation centers Patent families Industry awards across key regions growing in last 3 years EMEA NA • Application Business development and Development and commercialization Advanced ca
Slide 86: Developing packaging for market success
Developing packaging for market success Working with customers to develop differentiated package designs VIDEO 86 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 87: Expanding our global innovation center network
Expanding our global innovation center network Global scale enables us to extend our network into Europe and Asia USA (WI) Innovation Center China Coming Soon Belgium Coming Soon Brazil Innovation Center 87 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 88: Innovating to deliver responsible packaging
Innovating to deliver responsible packaging Full range of responsible flexible packaging Global technology platforms will enable us to options available today achieve our goal of 100% Recycle ready Aluminum Paper Designed to be recycled Rigid Packaging 95% Compostable Bio based materials Specialty C
Slide 89: The challenges of design for recycling
The challenges of design for recycling Function: Heat resistance and dimensional stability crucial for Exterior layer sealing and printing Challenge: Current materials (OPET) inhibit mechanical recycling Function: Product protection against moisture, oxygen, and light Barrier layer Challenge: Common
Slide 90: Global technology platforms are delivering solutions
Global technology platforms are delivering solutions Differentiated, high performing AND designed to be recycled solutions Exterior layer Barrier layer Sealant layer Amcor solution: proprietary Amcor solution: novel Amcor solution: high speed oriented films based on polyolefins aluminum-free high ba
Slide 91: Amcor Flexibles North America
Amcor Flexibles North America Fred Stephan President INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 92: Amcor Flexibles North America overview
Amcor Flexibles North America overview Market leader with broad plant network 15 Net Sales $3.4 billion 3 3 Plants 38 Amcor Comp 1 People Flexible Packaging Comp 2 ~8,500 market: Comp 3 ~$20B Others 92 INVESTOR BRIEFING Note: all figures reflect FY20 Source: FPA, company filings, and Amcor estimates
Slide 93: Leading in differentiated and growing segments
Leading in differentiated and growing segments Broad Product Offering Meat Cheese Medical Condiments $3.4bn FY20 sales Pharma by segment Coffee, Tea, Culinary Ready Meals Select Customers Pet Care Other 93 INVESTOR BRIEFING Other primarily includes snacks & confectionary, Home & Personal care and ot
Slide 94: Success with large and small customers
Success with large and small customers Capabilities to service a broad customer base Flexibles North America customers Large accounts >850 • Broad penetration * • Enabled by portfolio depth, scale • Unique global supply capabilities Small to medium customer accounts • Growing small business portfoli
Slide 95: Leader in high barrier meat packaging
Leader in high barrier meat packaging Amcor’s leading position in North America leverageable globally Drivers of growth in protein segment Amcor’s differentiated value proposition • Protein diet • Premiumization Innovation addressing Best-in-class R&D • Retail case-ready formats market dynamics capa
Slide 96: Automating fresh meat packaging
Automating fresh meat packaging New risks require forward thinking solutions Shrink rollstock helps deliver automated packaging solutions for fresh food manufacturers 96 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 97: Leader in high barrier cheese packaging
Leader in high barrier cheese packaging Amcor’s differentiated value proposition Packaging design to enable diverse consumer usage occasions Partnerships with small and large customers Best-in-class expertise and R&D capabilities Opportunity Driving Dynamics Consumer Trends Retailer Needs Customer D
Slide 98: Leader in medical packaging
Leader in medical packaging Well established position in North America and strong offering for customers Attractive, growing segments Amcor’s differentiated value proposition • Injection systems • Cardiovascular Highest quality Global footprint, standards local mindset • Diagnostics • Sterile fluids
Slide 99: Innovation leader in North America
Innovation leader in North America 99 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 100: Amcor Flexibles Europe, Middle East & Africa
Amcor Flexibles Europe, Middle East & Africa Michael Zacka President, Amcor Flexibles Europe, Middle East & Africa INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 101: Amcor Flexibles Europe, Middle East & Africa overview
Amcor Flexibles Europe, Middle East & Africa overview Market leader with an extensive regional footprint 12 France 7 UK 2 Poland Net Sales 4 Germany 1 Russia $3.3 billion 4 Spain 1 Finland 4 Italy 1 Turkey Plants 4 South Africa 1 Czech Republic 58 3 Switzerland 1 Romania 3 Portugal 3 Belgium Countri
Slide 102: Leading in differentiated and growing segments
Leading in differentiated and growing segments Broad Product Offering Pharma Snacks Pet Care Coffee $3.3bn FY20 Cheese sales by Medical segment Beverage Dairy Select Customers Ready Meals Meat Other 102 INVESTOR BRIEFING Other primarily includes snacks & confectionary, Home & Personal care and other
Slide 103: Success with large and small customers
Success with large and small customers Capabilities to service a broad customer base Flexibles Europe, Middle East & Africa customers >6,000 Large customers * • Enabled by portfolio breadth and extensive footprint • Ability to leverage unique global supply capabilities Small customers • Enabled by e
Slide 104: Leader in pharmaceutical packaging
Leader in pharmaceutical packaging Strong position in a high value segment with attractive growth rates Attractive, growing segment Amcor’s differentiated value proposition • Ageing population • Brand protection Strong partnerships Regulatory expertise • Compliance complexity • Patient adherence and
Slide 105: Leader in pet food packaging
Leader in pet food packaging Attractive segment and opportunities to leverage portfolio globally Attractive, growing segment Amcor’s differentiated value proposition • Premiumization • E-commerce growth Strong partnerships Broad product range • Resealability • Easy opening and emptying Strategic loc
Slide 106: Leader in coffee systems and premium coffee packaging
Leader in coffee systems and premium coffee packaging Strong customer relationships and strategically located footprint Attractive, growing segment Amcor’s differentiated value proposition • Premiumization • Convenience Strong partnerships Actively investing • At home consumption • Aluminium recycla
Slide 107: Innovation leader in Europe
Innovation leader in Europe Pet Care Snacks & Confectionery Protein Dairy Coffee Healthcare 107 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 108: Amcor Flexibles Asia Pacific
Amcor Flexibles Asia Pacific Michael Zacka President, Amcor Flexibles Europe, Middle East & Africa Xin She Vice President & General Manager, China INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 109: Amcor Flexibles Asia Pacific overview
Amcor Flexibles Asia Pacific overview The leading flexible packaging producer with the broadest regional coverage Net Sales India $1.3 billion SEA China Plants FY20 Sales 40 ANZ Countries 9 Country participation People ~8,000 9 4 2 2 Amcor Comp 1 Comp 2 Comp 3 Note: all figures reflect FY20. Country
Slide 110: Leading in differentiated and growing segments
Leading in differentiated and growing segments Broad Product Offering Healthcare Snacks & confectionary Protein $1.3bn FY20 sales by Home & personal care segment Beverage Select Customers Specialty laminates & films Global Other Sales Local value by customer type Regional 110 INVESTOR BRIEFING Other
Slide 111: Customer partnerships in high growth markets
Customer partnerships in high growth markets Amcor Value Proposition – dedicated investments and shared innovation agenda Amcor Flexibles Philippines Amcor Flexibles India Amcor Flexibles Singapore Commissioned October 2016 Commissioned December 2018 Commissioned March 2020 111 INVESTOR BRIEFING SEP
Slide 112: Focus: China
Focus: China Largest player and with national footprint Net Sales Plants People Select customers $600 million 13 ~3,500 Beijing Office Jiangyin Propack (JY) F H T Shijia Zhuang Qite (QT) F Jiangyin Shenlong (SL) F $600m Jiangyin Shenheng (SH) T sales by segment Suzhou Chengdu Qingyang (BSZ) H (CD) F
Slide 113: Focus: China
Focus: China Well positioned in a large market with exciting growth opportunities • Largest scale player in the market • Trusted global brand • Strong customer relationships • Footprint to supply locally across China • Access to world class innovation • Field technical service capabilities • Sustain
Slide 114: Focus: China
Focus: China Significant focus on local customers and supporting multinationals Global Sales value by customer type Local & National 114 INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 115: Amcor Flexibles Latin America
Amcor Flexibles Latin America Peter Konieczny Chief Commercial Officer Ruben Melara Vice President & General Manager, Brazil INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 116: Amcor Flexibles Latin America
Amcor Flexibles Latin America The leading flexible packaging producer in Latin America with the broadest coverage Net Sales Chile Colombia $0.8 billion Brazil Mexico Plants FY20 20 Sales Argentina Countries Peru 6 Country participation People ~6,500 6 1 4 1 Amcor Comp 1 Comp 2 Comp 3 Note: all figur
Slide 117: Leading in differentiated and growing segments
Leading in differentiated and growing segments Broad Product Offering Home & Personal Care Healthcare $0.8bn FY20 Liquid Foods sales by segment Proteins Shelf Stable Select Customers Global Other Sales value by customer Local type Regional 117 INVESTOR BRIEFING Other primarily includes thermoformed
Slide 118: Focus: Brazil
Focus: Brazil Leading supplier of flexibles and thermoforming with national footprint Leading customers Net Sales Plants People Other Home & Personal $0.4 billion 12 ~3,100 care Margarine FY20 Shelf Segment Stable Sales Liquid Healthcare Foods Proteins & Dairy Others Tubes Thermo- Technologies formi
Slide 119: Focus: Brazil
Focus: Brazil Gaining momentum in a large scale market and well positioned for further growth • Profitable business and gaining momentum • Significantly improved cost structure • Simplified portfolio • Solid base to grow in healthcare, protein and pet care • Investments in strengthening customer par
Slide 120: Focus: Brazil
Focus: Brazil Unique customer value proposition driving growth Innovation Technologies Multinationals P&G laundry IML technology for margarine tubs Resealable printed lid for Proteins Ready-meals flowpack Predilecta Sacciali “mason jar” shape: Award Material conversion glass to flexible pouch 120 IN
Slide 121: Q&A
Ron Delia Chief Executive Officer David Clark Vice President, Sustainability Peter Konieczny Chief Commercial Officer Bill Jackson Q&A Chief Technology Officer Fred Stephan President, Amcor Flexibles North America Michael Zacka President, Amcor Flexibles Europe, Middle East & Africa Xin She Vice Pre
Slide 122: Closing Remarks
Closing Remarks Ron Delia Chief Executive Officer INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 123: Why invest in Amcor?
Why invest in Amcor? Global industry leader with proven track record and clear strategy Consistent growth from consumer and healthcare end markets Attractive and growing dividend with current yield >4% Strong balance sheet, substantial capacity to invest and many growth opportunities Momentum buildi
Slide 124: Appendix slides
Appendix slides INVESTOR BRIEFING SEPTEMBER 29, 2020
Slide 125: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures (1) Includes costs associated with the Bemis acquisition. The twelve months ended June 30, 2020 and 2019 includes $58 million and $16 million respectively of acquisition INVESTOR BRIEFING related inventory fair value step-up costs. (2) The twelve months
Slide 126: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures (1) Other includes equity in income (loss) of affiliated companies, net of tax and general corporate expenses. INVESTOR BRIEFING (2) Includes costs associated with the Bemis acquisition. The twelve months ended June 30, 2020 and 2019 includes $58 millio
Slide 127: Investor Briefing September 29, 2020
INVESTOR BRIEFING SEPTEMBER 29, 2020