Slide 1: Fiscal 2024 Half Year Results
Fiscal 2024 Half Year Results Ron Delia CEO Michael Casamento CFO February 6, 2024 US February 7, 2024 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 North America packaging materials of acquired manufacturing businesses industry TRIR 4.1 2.7 • Industry-leading safety performance 2.0 2.8 1.5 1.3 • 17% fe
Slide 4: Key messages
Key messages 1. Second quarter and year to date earnings modestly ahead of expectations set out in October 2. Proactive actions taken to align cost base with incrementally more challenging volume dynamics 3. Reaffirming FY24 guidance 4. Confident in long term growth and value creation strategy 4
Slide 5: First half and second quarter financial summary
First half and second quarter financial summary Increased cost out in response to softer volume dynamics • Earnings modestly ahead of Net sales EBIT EPS expectations 1H24 1H24 1H24 • Demonstrating agility and a strong -8% vs pcp -6% vs pcp -10% vs pcp focus on the controllables • >$200 million benef
Slide 6: Flexibles segment
Flexibles segment Benefits from price/mix and strong cost performance partly offset soft volumes 1H23 1H24 Comparable First half highlights constant currency • Net sales reduction mainly reflects 9% lower volumes Net sales ($m) 5,591 5,049 -8% • Overall volumes impacted by continued soft demand and
Slide 7: Rigid Packaging segment
Rigid Packaging segment Soft volumes in key markets partly offset by benefits from cost actions 1H23 1H24 Comparable First half highlights constant currency • Net sales reduction mainly reflects 9% lower volumes Net sales ($m) 1,763 1,645 -8% • North America Beverage volumes impacted by continued co
Slide 8: Cash flow and balance sheet
Cash flow and balance sheet On track to deliver full year free cash flow guidance Investment grade balance sheet First half highlights Cash flow ($ million) 1H23 1H24 Adjusted EBITDA 994 913 • Adjusted Free Cash Flow >$100 million ahead of last year and in line with expectations Interest and tax pay
Slide 9: Fiscal 2024 guidance reaffirmed
Fiscal 2024 guidance reaffirmed Adjusted EPS Guidance • FY24 Adjusted EPS assumptions include: • 3Q24 Adjusted EPS down MSD, and 4Q24 Adjusted EPS up MSD compared with the prior 73.3 ~2% year in comparable constant currency terms cps up to 67-71 • Estimated net interest expense of $315 to ~2% cps $3
Slide 10: Improving earnings trajectory through 2H24
Improving earnings trajectory through 2H24 Volumes expected to improve through 2H24. Visibility to several factors that set the business up to build momentum in the second half • No further headwind from sale of Russian business • Reduced interest headwind • Benefits from structural cost initiatives
Slide 11: Multiple drivers of organic growth
Multiple drivers of 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 Premium Coffee Pet food H
Slide 12: Key messages
Key messages 1. Second quarter and year to date earnings modestly ahead of expectations set out in October 2. Proactive actions taken to align cost base with incrementally more challenging volume dynamics 3. Reaffirming FY24 guidance 4. Confident in long term growth and value creation strategy 12
Slide 13: Appendix slides
Appendix slides Supplementary schedules and reconciliations
Slide 14: FX translation impact
FX translation impact 1H24 currency impact Combined Net income currency exposures(1) Total currency impact $ million Adjusted EBIT 12 EUR 20-30% Adjusted Net income 10 EUR:USD Euro stronger vs USD, Average USD million impact on USD to EUR rate 1H24 0.9244 vs 1H24 Adjusted Net income 1H23 0.9870 6% 7
Slide 15: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 15
Slide 16: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 16
Slide 17: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 17
Slide 18: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 18