Slide 1: 2020 First Quarter Results
2020 First Quarter Results Ron Delia Managing Director & CEO Michael Casamento CFO 7 November 2019 US 8 November 2019 Australia NYSE: AMCR | ASX: AMC
Slide 2: Disclaimers
Disclaimers Cautionary Statement Regarding Forward-Looking Statements This presentation contains certain statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act
Slide 3: Everything we do starts and ends with Safety
3 Safety Everything we do starts and ends with Safety (1) • 53% of Amcor sites injury free for >12 months (2) • Recordable Case Frequency Rate at 3.6 • Focus on aligning Bemis sites with Amcor practices (1) As of 30 September 2019 (2) Recordable cases per 1,000,000 hours worked. Based on Q1 Fiscal 2
Slide 4: Key messages for today
Key messages for today 1. Solid start to the fiscal year 2. Bemis integration on track 3. Momentum on sustainability 4. Reaffirmed fiscal 2020 outlook 4
Slide 5: First quarter results
First quarter results(1) $335m 10.7% 13.4c Quarterly dividend 11.5 cps Cashflow improved in line with expectations +110 bps Repurchased +10% +15% 5.8m shares EBIT EBIT EPS margin Growth vs prior year (constant currency) Organic growth and synergies (1) Non-GAAP measures exclude items which managemen
Slide 6: First quarter segment results
First quarter segment results(1) Flexibles Rigid Packaging $291m 12.0% $71m 9.9% • Higher sales and volumes in • Volume growth in North America North America and Western and favourable mix Europe • Volumes in line in Latin America • Synergy benefits with unfavourable mix • Strong cost management • S
Slide 7: Bemis acquisition: Cost synergies of ~$10m in the first quarter
Bemis acquisition: Cost synergies of ~$10m in the first quarter On track to deliver $180 million(1) by end of year three Generated from the following areas: Estimated realization ($m): 40% 100% 180 130 20% 40% 65 Procurement Operations G&A & other Total cost FY 2020 FY 2021 FY 2022 costs synergies S
Slide 8: Guidance for 2020 fiscal year reaffirmed
Guidance for 2020 fiscal year reaffirmed Estimated constant FY19 combined(1) FY20 currency Δ% Adjusted EPS (cps) in constant currency terms 58.2 cents 61.0 - 64.0 cents(2) 5 - 10% Pre-tax synergy benefits $65 million Cash flow after dividends (before cash integration costs) $300 - $400 million (Cash
Slide 9: Amcor Strategy
Amcor Strategy Our businesses FOCUSED PORTFOLIO: Flexible Packaging Rigid Packaging Specialty Cartons Closures Our differentiated capabilities THE AMCOR WAY: Our winning aspiration Significant THE leading growth opportunities global packaging company WINNING FOR CUSTOMERS, EMPLOYEES, INVESTORS AND T
Slide 10: Capital allocation framework
Capital allocation framework Amcor Shareholder Value Creation Model Dividend (~ $750m) Historical yield of ~ 4% Strong, Total shareholder defensive cash Reinvestment Organic EPS growth value of 10-15% per (~ $500m) of ~ 3-4% annum with low flow volatility Acquisitions and/or buy-backs EPS growth of
Slide 11: Our Sustainability “Point of View”
Our Sustainability “Point of View” There will always be a Requirements of packaging are Responsible packaging Amcor is uniquely role for packaging increasing: end of life solutions / is the answer positioned to lead the waste reduction are critical way Consumers want To Preserve food packaging to be
Slide 12: There will always be a role for packaging
There will always be a role for packaging Extending shelf life Reducing food waste Protecting the environment Food waste accounts for Refrigerated Shelf Life in days Lettuce 2-4 14 30% of food is wasted globally 8% of global GHG emissions Fresh 2-3 Alternative Plastic Grams of red meat 21 pkg, % pkg
Slide 13: Requirements are increasing: end of life solutions are critical
Requirements are increasing: end of life solutions are critical Consumers buying more Small price to pay environmentally friendly products Today vs 5 years ago 72% <1cent US cents per bottle Next 5 years 81% or 0.45% retail price 66% of global consumers (76% of millennials) ~1cent US cents per conta
Slide 14: Responsible packaging is the answer
Responsible packaging is the answer Greenhouse gas Recycling emissions rate (Kg-CO2 equivalent) “A hysterical move to glass may be trendy but (%) ‘000 would have a dreadful impact on the carbon footprint of packaging.” Flexible -CEO Major Food and Personal Care Company packaging 5 0 “Glass and cans
Slide 15: Amcor is uniquely positioned to lead the way
Amcor is uniquely positioned to lead the way Collaborating with stakeholders…Packaging Design, Waste Management, Consumer Participation 15
Slide 16: Amcor is uniquely positioned to lead the way: innovating new products
Amcor is uniquely positioned to lead the way Innovating and developing new products Recycled content Lighter Weight Recyclable 100% PCR 21gr 18gr 200,000 tons reduction in virgin plastic by 2025 16
Slide 17: Summary
Summary Reaffirmed fiscal 2020 expectations; On track to deliver strong shareholder returns • Continued progress against our priorities • Bemis integration and synergy capture on track • Capitalising on the increasing need to develop packaging that best protects the environment 17
Slide 18: Supplementary information
Supplementary information
Slide 19: Amcor: Global leader in consumer packaging
Amcor: Global leader in consumer packaging 27% Rigid Packaging North America #1 Flexibles 46% Flexibles #1 FY19 EMEA North America #1 3% sales mix Flexibles #1 Asia Pacific 24% Rigid Packaging Latin America #1 Flexibles North America Western Europe Latin America #1 ANZ Emerging Markets Specialty Car
Slide 20: Focused global portfolio
Focused global portfolio USD 13bn combined sales by product type, end market and geography Closures Other Australia Specialty 3% 14% & NZ Emerging cartons 3% markets 9% Western HPC Europe 27% 6% 24% Flexible Food Rigid packaging packaging product 67% Healthcare end market 44% geography 21% type 12%
Slide 21: Amcor Flexibles overview
Amcor Flexibles overview Combined sales by Combined sales by region end market 11% 17% 38% 6% 36% 8% 54% 15% 15% Europe, Middle East and Africa Food Healthcare Asia Pacific Beverage North America Home & Personal care Latin America Other 2019 combined 2019 combined Plants Countries Employees sales Ad
Slide 22: Amcor Rigid Packaging overview
Amcor Rigid Packaging overview Sales by geography Sales by product category 19% 6% 14% 29% 28% North 13% America Latin America USD 2.3bn USD 0.6bn sales sales 73% 81% 37% North America Latin America Cold fill beverage Hot fill beverage Specialty containers Closures 2019 Sales 2019 Adjusted Plants Co
Slide 23: North America beverage
North America beverage North America Amcor Rigid Packaging – FY19 beverage market volume mix – FY19 100% 8% 2% 90% 80% 70% 60% 45% 50% 40% 55% 30% 20% 10% 0% ARP volumes ARP margin Source: IRI Still water All other All Other NA Still water 23
Slide 24: 2020 First Quarter Results Appendix
2020 First Quarter Results Appendix 7 November 2019 US 8 November 2019 Australia NYSE: AMCR | ASX: AMC
Slide 25: FX translation impact
FX translation impact Q120 currency impact Combined net income currency exposures(1) Total currency impact $ million Adjusted EBIT (4) Adjusted net income (3) EUR, 20-30% EUR:USD Euro weakened vs USD. Average $ million impact on USD(2), USD to EUR rate 1Q20 0.8599 vs adjusted net income for 1Q19 0.8
Slide 26: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures Reconciliation of adjusted Earnings before interest and tax (EBIT), Net income and Earnings per share (EPS) 26
Slide 27: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 27
Slide 28: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures 28