Slide 1: Amcor Full Year Results Investor Presentation
For personal use only Amcor Full Year Results Investor Presentation Ron Delia – Managing Director & CEO Michael Casamento – Acting CFO
Slide 2: Disclaimer
Disclaimer For personal use only Forward looking statements readers are cautioned not to place conditions of the major markets in Non-IFRS information This presentation contains forward- undue reliance on such forward looking which Amcor operates. Certain non-IFRS financial information looking state
Slide 3: Overview and full year results – continuing operations
Overview For personal use only Strong result with constant currency EPS up 7.5% Organic growth remained subdued Record returns of 20.5% Continued margin expansion Strong free cash flow enabling: • Dividend increase to 40.0 US cents • US$500 million on-market share buy-back Solid foundation to build
Slide 4: Amcor shareholder value creation model
Amcor shareholder value creation model For personal use only Dividend Growth in line with (~$500m) EPS ~ 4% Total shareholder Strong, Reinvestment Organic EPS growth value of 10-15% defensive cash (~$400m) of ~ 3-4% (Sales - 70% DMs & per annum with flow 30% EMs) low volatility Acquisitions EPS grow
Slide 5: Cash flow and balance sheet
Cash flow US$ million Jun 14 Jun 15 Comments For personal use only PBITDA 1,458.0 1,420.4 Up 3.4% on a constant currency basis Interest (194.3) (165.8) Tax (136.9) (154.7) 80-90% of P&L tax Capital expenditure (332.6) (323.0) In line with D&A including restructuring costs (1) Average working capital
Slide 6: Flexibles
Flexibles For personal use only • PBIT up 2.9%(1) in constant currency terms Reported Adjusted(1) Euro million Jun 14 Jun 15 % % • Operating margin increased from 12.1% to 12.3% (2) Sales revenue 4,996 5,232 4.7 1.0 • Negative impact of CHF:EUR strength Europe and Americas PBIT 606.2 652.1 7.6 2.9
Slide 7: Rigid Plastics
Rigid Plastics For personal use only • Strong earnings performance, PBIT up 7.7% USD million Jun 14 Jun 15 % • Return on funds employed increased to 20.3% Sales revenue 3,192 3,317 3.9 North America beverage • Volumes up 2.3% and earnings higher PBIT 298.2 321.3 7.7 • Overall favourable product mix
Slide 8: Where to from here…. Amcor Today – Position of Strength
Where to from here…. For personal use only Amcor Today – Position of Strength • Focused portfolio – leadership positions, good industry structure, significant Emerging Market exposure • Differentiated capabilities – “The Amcor Way” • Disciplined cash and capital deployment • Resilient shareholder va
Slide 9: Operating Environment and Opportunities for Amcor
Operating Environment – Increasingly Dynamic For personal use only • Lower growth relative to longer term trends • Shorter cycle / more rapid change • Fast, bold customer/competitor/supplier reactions Amcor will need to continually adapt and evolve to capture opportunities 16 Opportunities for Amcor
Slide 10: Summary
Summary For personal use only Strong result with constant currency EPS up 7.5% Organic growth remained subdued Record returns of 20.5% Continued margin expansion Strong free cash flow enabling: • Dividend increase to 40.0 US cents • US$500 million on-market share buy-back Solid foundation to build o
Slide 11: Shareholder value creation of 12.7%
Shareholder value creation of 12.7% Contribution to PBIT growth Contribution to Shareholder Value For personal use only 14.0% Underlying organic performance: 5.2% 12.7% Emerging markets growth 6% 12.0% Developed markets subdued but stable 10.0% 0.3% 7.5% 8.0% 1.2% 6.0% 6.0% 1% 5% 1% 4.0% 3% 2.0% 0.0
Slide 12: Full year results – continuing operations
Full year results – continuing operations For personal use only • Strong constant currency earnings growth Constant US$ million Jun 14 Jun 15 % currency • Key drivers % Sales revenue 9,964.5 9,611.8 (3.5) 2.0 • Strong benefits from acquisitions • Underlying organic growth: PBIT 1,082.1 1,065.1 (1.
Slide 13: FX Translation impact and cash flow
FX Translation impact For personal use only % of PAT by currency(1) Euro:USD Depreciation against US$ million impact July 15 spot rate Euro, 25% USD FY 15 on PAT for FY 15(2) depreciation against FY 15 average 13% 24.0 10% USD & USD linked, 50% Other currency basket(3):USD Depreciation against US$ m
Slide 14: Finance and cash expectations – FY16
Finance and cash expectations – FY16 For personal use only Net financing costs between US$165 and US$175 million • Cash costs in line with P&L charge Effective tax rate between 21% and 23% • Cash tax 80-90% of P&L charge Corporate costs US$75 – US$80 million Cash reinvested into the business equal t
Slide 15: Proforma debt profile and focused portfolio
Proforma debt profile Drawn at 30 For personal use only US$ million Facility(1) June 2015(2) Debt currency profile Overdrafts/Leases 79 Commercial paper(3) 837 Other CY2015 56 56 15% CY2016 355 343 Euro 32% CY2017 100 100 AUD CY2018 1,312 796 9% CY2019 1,365 615 CY2020 677 112 CY2021 277 277 CY2022
Slide 16: Focused portfolio – by substrate and end market
Focused portfolio – by substrate and end market FY15 sales by substrate FY15 sales by end market For personal use only Aluminium Home & Personal Other 14% care 2% 3% Healthcare Food 14% 32% Fibre 14% Tobacco Packaging 14% Plastics 72% Beverage 34% Common substrates Defensive end markets 30 Historic
Slide 17: Historic performance – Half yearly PBIT
Historic performance – Half yearly PBIT For personal use only Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun (million) 08 09 09 10 10 11 11 12 12 13 13 14 14 15 Flexibles € 69 80 81 171 198 252 246 281 280 308 289 317 308 344 Rigid US$ 82 103 82 104 101 139 117 156 128 159 128 170 139 182 P
Slide 18: Flexibles – Historic performance half yearly sales
Flexibles – Historic performance half yearly sales For personal use only Sales Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun € million 08 09 09 10 10 11 11 12 12 13 13 14 14 15 Europe and 654 620 589 1,360 1,552 1,604 1,492 1,558 1,503 1,563 1,475 1,556 1,497 1,631 Americas Tobacco 180 162
Slide 19: Rigid Plastics – Historic performance half yearly sales
Rigid Plastics – Historic performance half yearly sales For personal use only Sales Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun US$ 08 09 09 10 10 11 11 12 12 13 13 14 14 15 million North America 845 834 647 815 982 1,203 1,104 1,245 998 1,172 963 1,150 965 1,113 Latin America 385 322 37
Slide 20: Rigid Plastics – North America; Investments / other
Rigid Plastics – North America Custom Containers Diversified Products For personal use only 8,000 166 500 (4) 13 7,000 450 6,000 400 Sales revenue (US$ millions) 350 5,000 Million units 300 7,279 4,000 7,075 474 250 465 3,000 200 150 2,000 100 1,000 50 0 0 FY 2014 Growth FY 2015 FY 2014 Raw material
Slide 21: Historical acquisitions
Historical acquisitions Business group Country Completion Currency Acquisition price EBITDA Acquired sales Synergy: For personal use only date (Local currency Multiple (Local currency Acquired millions) millions) sales Alcan Packaging Flexibles Global H2 2010 USD 1,948 5.1 4,100 5% Alcan Medical Fle