Amcor Plc · NYSE:AMCR
Amcor — Investor Presentation (May 2006)
31 slides from Amcor's investor presentation, May 2006
Slide 1: Amcor Information Slides May 2006
AMCOR INFORMATION SLIDES MAY 2006
Slide 2: Disclaimer
Disclaimer • This presentation contains forward-looking statements that involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, Amcor. Forward-looking statements can generally be ide
Slide 3: Mission, Vision and Values
MISSION, VISION AND VALUES Amcor’s Mission, Vision and Values philosophy is at the core of how we conduct our business and forms the foundation of our future direction. MISSION • To generate sustainable shareholder value – by becoming premier packaging solutions provider; creating superior customer
Slide 4: History of Amcor
HISTORY OF AMCOR VICTORIA NEW SOUTH WALES Ramsden’s Melbourne Mill AUSTRALIAN PAPER CO (1868) Collingwood (later Liverpool) Mill (1868) VICTORIAN PAPER MNFG CO FEDERAL PAPER Geelong (Fyansford) Mill (1868) MILLS Broadford Mill (1890) Botany Mill (1901) THE AUSTRALIAN PAPER THE SYDNEY PAPER MILLS MIL
Slide 5: Amcor at a Glance
AMCOR AT A GLANCE FUNDAMENTALS 1995 2005 • Leading paper & packaging • Leading packaging company company in Aust & NZ in Aust & NZ • In top 10 globally • Ranked 3 globally by sales • Largest PET producer globally Sales $6.5b 75% Aust/NZ Sales ~ $11.1b 20% Aust/NZ 25% Rest of World 80% Rest of World
Slide 6: Evolution of Amcor
EVOLUTION OF AMCOR ACQUISITION FOCUSED AUSTRALIAN PAPER PAPER • FLEXIBLES INTERNATIONAL & PACKAGING DIVESTMENT • PET PACKAGING 1995 2005 Sales $6.5b 75% Aust/NZ Sales ~ $11.1b 20% Aust/NZ 25% Rest of World 80% Rest of World 20,000 employees 27,000 employees ~ 140 plants ~ 240 plants 21 countries 39
Slide 7: Amcor at a Glance: Structure
AMCOR AT A GLANCE STRUCTURE 1995 NOW Amcor Amcor Containers Amcor Fibre Amcor Amcor Asia Packaging Packaging Australasia Investments Amcor 50% Kimberley- Amcor Flexibles Paper Group Clark Aust Amcor PET Amcor Packaging Group (includes Sunclipse 46% Spicers Paper Amcor Rentsch) © Amcor Ltd 2005
Slide 8: Management Structure
MANAGEMENT STRUCTURE Ken MacKenzie Managing Director & CEO Amcor Flexibles (AF) Louis Lachal Eric Bloom Billy Chan Bill Long Gerard Blatrix Peter Brues Jerzy Czubak Managing President & Managing President, Director, CEO, Amcor Director, Managing Director, Managing Director, Managing Director, Amcor
Slide 9: Operational Structure
OPERATIONAL STRUCTURE Amcor Limited Amcor PET Amcor Flexibles Group Amcor Amcor Amcor Asia Packaging Amcor Flexibles Amcor Rentsch Australasia Sunclipse Tobacco cartons and PET packaging for Flexible and film Specialty folding Corrugated boxes, The distribution unit flexible packaging a broad range
Slide 10: Amcor at a Glance: Global Product Mix
AMCOR AT A GLANCE GLOBAL PRODUCT MIX 1995 2005 Cans Other Closures – Metal & Plastic 8% Flexibles PET Corrugated Plastic Tubes & Paper PET Rigid Plastics 16% 33% 20% Cartons 8% Metal 4% Closures 5% Papers & Paper Based Packaging Flexibles 26% 80% © Amcor Ltd 2005
Slide 11: Consistent Strategy Over the Last 5 Years
CONSISTENT STRATEGY OVER THE LAST 5 YEARS Top 3 participant in our chosen markets Top five global Focused Strategy packaging company Globally recognised brand © Amcor Ltd 2005
Slide 12: Amcor's Well Defined Strategy
AMCOR’S WELL DEFINED STRATEGY Focused packaging Target high growth Develop leading company targeting segments with global or regional the food and scope for product product positions beverage industries innovation Consistent growth with low cash flow volatility and returns above the cost of capital
Slide 13: The Strategy Related to Divisions
THE STRATEGY RELATED TO DIVISIONS Internationally Focused on selective, high value added Global or regional market segments leadership positions Rentsch Sunclipse PET Flexibles (cartons) (distribution) & Closures Australasia Product Leadership in Leadership & Broad product offering Australasia Innov
Slide 14: Changing Face of Amcor
CHANGING FACE OF AMCOR Divestments Acquisitions John Sands Greeting Cards Group Leigh-Mardon Printing Business 1995 Rentsch Folding Cartons – Switzerland Corrugated packaging business Europe 1996 European Flexibles Business (UCB) Paper Mill in USA 1997 Leigh Mardon Flexibles Australia Sawmilling Bus
Slide 15: Health and Safety
HEALTH AND SAFETY 15 L T 10 I 5 F R 0 1997 1998 1999 2000 2001 2002* 2003* 2004* 2005* • Amcor’s vision for safety performance - that no-one is ever injured on an Amcor site. • The “No Injuries” program was introduced in 1997 and has resulted in a massive drop of working days lost per year - from 15
Slide 16: Importance of Triple Bottom Line
IMPORTANCE OF “TRIPLE BOTTOM LINE” • Amcor is committed to the concepts of sustainability. • Long term economic performance is linked to environmental & social performance. • Member of the World Business Council for Sustainable Development and the Dow Jones Sustainability Index. • Amcor was one of t
Slide 17: EPS Returns
EPS RETURNS 65 61.7 Compound earnings growth 7.9% pa 59.4 58.9 60 Compound earnings growth 5.3% pa 55 50.3 EPS 50 Cents 44.7 45.3 44.7 44.5 45 42.1 40.2 40 37.6 34.5 35 30 99/00 00/01 01/02 02/03 03/04 04/05 EPS Basic pre significant items (PACRS as interest) EPS Basic pre significant items and good
Slide 18: Earnings Per Share Growth
EARNINGS PER SHARE GROWTH Post Goodwill Amortisation Pre Goodwill Amortisation th 5 . 3% d grow th 7. 9% poun grow Com p ound Com Cents / share 50.0 45.4 44.7 44.5 42.1 Cents / share 75.0 37.6 62.0 59.4 58.9 40.0 34.5 50.3 30.0 50.0 40.2 44.7 20.0 25.0 10.0 0.0 0.0 2000 2001 2002 2003 2004 2005 2004
Slide 19: PBITA to Average Funds Invested
PBITA TO AVERAGE FUNDS INVESTED 9.5% Pre Tax WACC Target – 15% % 14.0 12.9 12.8 12.2 12.0 11.1 11.1 10.9 11.2 10.0 10.0 8.0 6.0 4.0 2.0 0.0 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 •97/98 and 98/99 are PBIT to Average Funds Employed •All calculations before significant items © Amcor Ltd 2005
Slide 20: Ranking of Major Global Packaging Companies by Sales
RANKING OF MAJOR GLOBAL PACKAGING COMPANIES BY SALES CALENDAR 2004 Tetra Pak Smurfit-Stone Container Amcor International Paper¹ Crown Holdings Toyo Seikan² Owens-Illinois Alcan Packaging Rexam Ball - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2004 Sales (US$) Notes: 1 Packaging Div
Slide 21: Well Positioned for Future Growth
WELL POSITIONED FOR FUTURE GROWTH Clear & consistent strategy Growth opportunities Strong businesses Manage growth while Strong cash flows generating strong cash Sound balance flows sheet Global packaging leader Quality management © Amcor Ltd 2005
Slide 22: Summary
SUMMARY Reshaping & growing Way Forward 1998 2005 2006 Australian Leading International Paper & Global Packaging Packaging Packaging Company Company Company Packaging Industry Leverage position to Consolidator improve returns © Amcor Ltd 2005
Slide 23: Broad Global Platform
BROAD GLOBAL PLATFORM 224 plants in 36 countries Annual Sales $11.1 billion © Amcor Ltd 2005
Slide 24: Amcor PET Packaging
AMCOR PET PACKAGING Key Drivers Opportunities Priorities - product innovation & - strong volume growth - management of resin cost Amcor PET technology - custom pass-through and pricing Packaging - manufacturing - CSD / water - deliver acquisition excellence - continued earnings synergies, including
Slide 25: Amcor Flexibles
AMCOR FLEXIBLES Key Drivers Opportunities Priorities - market leadership - margins will continue - deliver acquisition Amcor - geographic spread to improve synergies Flexibles - product range - Rexam acquisition - implement market (22% performing well focussed organisation of Group Sales ) - improve
Slide 26: Amcor Australasia
AMCOR AUSTRALASIA Key Drivers Opportunities Priorities - product breadth & - gradual recovery from - lowering cost base via Amcor leadership the drought restructuring Australasia - operational - investments: - product innovation (23% excellence - 2nd wine bottle plant of Group Sales ) - Petrie mill
Slide 27: Amcor Asia
AMCOR ASIA Key Drivers Opportunities Priorities - Global economic - Business positioned - Tight control of costs Amcor Asia activity well for recovery ( 2% - Volume growth - Growth in tobacco / - Manage margins of Group Sales ) flexibles © Amcor Ltd 2005
Slide 28: Amcor Rentsch
AMCOR RENTSCH Key Drivers Opportunities Priorities Amcor Rentsch - Strong global - Strong growth in - Capacity optimisation customer Eastern Europe and and rationalisation in (*9% Group Sales) relationships Russia Western Europe * Rentsch & Closures - Health warnings on tobacco packaging © Amcor Ltd
Slide 29: Amcor Sunclipse
AMCOR SUNCLIPSE Key Drivers Opportunities Priorities - Economic activity - Well positioned for - tight control of costs Amcor in the USA economic upturn Sunclipse - Continued expansion - minimise new capex (11% outside California of Group Sales ) - USD50/tonne increase - manage margins in liner boar
Slide 30: Our Global Presence: Flexibles
OUR GLOBAL PRESENCE FLEXIBLES © Amcor Ltd 2005
Slide 31: www.amcor.com
AMCOR WWW.amcor.com