Slide 1: Fiscal 2023 Full Year results
Fiscal 2023 Full Year results (twelve months ended June 30, 2023) Ron Delia CEO Michael Casamento CFO August 16, 2023 US August 17, 2023 Australia NYSE: AMCR | ASX: AMC
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: Safety
Safety Guided by our values. Our number one priority Recordable-case frequency rate Amcor Values (per million hours worked) 11.2 Includes impact of acquired businesses 4.1 • 31% reduction in number of injuries 2.0 2.8 2.1 1.5 • 69% of sites injury free for >12 months 0.3 2005 2010 2015 2020 2022 202
Slide 4: Key messages
Key messages 1. Solid FY23 operating performance despite challenging market dynamics 2. Proactively taking price and cost actions 3. Expect a return to solid earnings growth in second half of FY24 4. Confident in long term growth strategy and investing to build on our strong foundation 4
Slide 5: Fiscal 2023 – Challenging macro dynamics in Q3 and Q4
Fiscal 2023 – Challenging macro dynamics in Q3 and Q4 Recovering inflation and managing costs to deliver solid operating results in a soft and volatile demand environment Net sales EBIT EPS • $1.2 billion cash returns to FY23 FY23 FY23 shareholders In line vs pcp +1% vs pcp -2% vs pcp +5% including
Slide 6: Ongoing actions on price and cost
Ongoing actions on price and cost Continuing to proactively manage the controllables to deliver ongoing benefits 1. Pricing to compensate for inflation: >$1.1bn in FY23 2. Cost productivity and flexing: Reduction of >$200m costs, including >1,200 Full Time Employees in FY23 3. Structural cost reduct
Slide 7: Flexibles segment
Flexibles segment Annual earnings growth benefited from price and cost actions Comparable Fiscal 2023 highlights FY22 FY23 constant currency • Net sales of $11.2bn includes price increases of ~$515m (5% growth) related to higher raw material costs Net sales ($m) 11,151 11,154 +1% • Net sales up 1%.
Slide 8: Rigid Packaging segment
Rigid Packaging segment Slower, more volatile demand dynamics and unfavorable mix trends in H2 FY22 FY23 Comparable Fiscal 2023 highlights constant currency • Net sales of $3.5bn include price increases of ~$260m Net sales ($m) 3,393 3,540 (3)% (8% growth) related to higher raw material costs • Nort
Slide 9: Cash flow and balance sheet
Cash flow and balance sheet Strong, investment grade balance sheet. Focused on working capital and prioritizing inventory reduction Year to date cash flow ($ million) FY22 FY23 Fiscal 2023 highlights Adjusted EBITDA 2,117 2,018 • $848 million Adjusted Free Cash Flow in line with Interest and tax pay
Slide 10: Fiscal 2024 guidance
Fiscal 2024 guidance Adjusted EPS Guidance • FY24 adjusted EPS assumptions include: • Comparable constant currency adjusted EPS expected to be down HSD-LDD% in 1H24 73.3 and up MSD% in 2H24 ~2% cps 67-71 • Estimated net interest expense of $320 to ~2% cps $340 million (pre-tax) +/- LSD% (~6%) • 1H24
Slide 11: Calendar year 2023 in context
Calendar year 2023 in context EPS growth in June 24 half trending towards LT average Comparable Constant Currency Adjusted EPS growth 12% • Calendar Year 2023 unfavorably impacted by: Up HSD% 9% 8% Challenging 2023 • Higher interest costs (~6% headwind) Up MSD% Calendar Year • Challenging demand dyn
Slide 12: Investing in multiple drivers of sustainable organic growth
Investing in multiple drivers of sustainable organic growth Priority Emerging Innovation Categories Markets >$4 bn sales in higher growth, >$3 bn Emerging Markets sales Driving value through higher value categories: across 25 countries: differentiated packaging: Healthcare Protein Hot-fill beverage
Slide 13: Priority category focus: protein packaging
Priority category focus: protein packaging ~$1.2bn global sales Amcor’s differentiated value proposition addresses requirements in this attractive, high value market for specialized, more sophisticated and sustainable solutions Comprehensive product portfolio Extensive global for fresh and processed
Slide 14: Leading the industry on Responsible Packaging
Leading the industry on Responsible Packaging Responsible Packaging: Waste management Consumer Packaging design infrastructure participation Collaborating with partners across the value chain to support development of waste management systems and consumer education 14 14
Slide 15: Key messages
Key messages 1. Solid FY23 operating performance despite challenging market dynamics 2. Proactively taking price and cost actions 3. Expect a return to solid earnings growth in second half of FY24 4. Confident in long term growth strategy and investing to build on our strong foundation 15
Slide 16: Appendix slides
Appendix slides Supplementary schedules and reconciliations
Slide 17: Strong foundation for growth & value creation
Strong foundation for growth & value creation Global leader in primary packaging for consumer staples and healthcare with a strong track record Consistent growth from priority categories, emerging markets and innovation Strong cash flow and balance sheet provide ongoing capacity to invest Increasing
Slide 18: Compelling cash returns to shareholders
Compelling cash returns to shareholders $1.2 billion cash returns in Fiscal 2023 • $431 million to repurchase ~3% of outstanding shares • Industry leading dividend increased to 49 cents per share 5.0% ~$1.9bn share repurchases since FY20 Current Dividend yield ~11% of total shares outstanding 1.8% S
Slide 19: FX translation impact
FX translation impact FY23 currency impact Combined Net income currency exposures(1) Total currency impact $ million Adjusted EBIT (42) EUR 20-30% Adjusted Net income (34) EUR:USD Euro weakened vs USD, Average USD million impact on USD to EUR rate FY23 0.9561 vs FY23 adjusted Net income FY22 0.8881
Slide 20: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 20
Slide 21: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 21
Slide 22: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 22
Slide 23: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 23