Amcor Plc · NYSE:AMCR
Amcor — Investor Day (June 2017)
77 slides from Amcor's investor day presentation, June 2017
Slide 1: Day 4 presentations – June 2017 North America Analyst Trip
Day 4 presentations – June 2017 North America Analyst Trip Please note there were no new presentation materials from Day 3 Bericap North America Cowpens, South Carolina
Slide 2: Cowpens Plant Safety Briefing
Cowpens Plant Safety Briefing Required safety behaviors for visitors 02 Tornado Shelter Tornado Shelter
Slide 3: Staying safe on the shop floor
Staying safe on the shop floor Required safety behaviors for visitors 03 Take a Safety Time Out Listen to your guide and pay attention to signs. to ensure you stay safe Obey all instructions (verbal or written) at our site. If you see something you think is unsafe during your visit, Take Time Out an
Slide 4: Amcor Closures
Amcor Closures June 2017
Slide 5: Key Messages
Key Messages 02 Successful base business with proven Attractive segment Focus segment offering significant track record of organic growth Aligned to Amcor’s portfolio principles organic and acquisition growth Above-average profitability within Amcor Increasing requirement for functionality opportuni
Slide 6: Current participation in closures offers foundation for growth
Current participation in closures offers foundation for growth 03 Closure sales by BU Specialty Containers 1 Capsules 3 1 1 3 US$400m 1 Capsules Specialty Bericap NA Containers Bericap NA Combined participation in capsules and closures across three different businesses, operated separately and with
Slide 7: Current portfolio diversified in closure type, end markets and technologies
Current portfolio diversified in closure type, end markets and technologies 04 Specialty Capsules Bericap NA Containers Closure type Aluminium screw caps (STELVIN), tin and Plastic screw caps, sport caps Plastic screw caps, dropper tips polylam overcaps, champagne hoods End use markets Still and spa
Slide 8: Evolution of Amcor Closures
Evolution of Amcor Closures 05 1992 1997 2002 2008 2010 2014 2016 Amcor opens first Bericap JV (BCNA) BCNA opens BCNA opens third Amcor acquires Capsules Australia Specialty Containers closure plant in established with second plant in plant in South Capsules (seven plant demerged as augmented throug
Slide 9: Proven track record of organic growth
Proven track record of organic growth 06 FY16 Sales by End Market (US$400m) FY11 FY16 Capsules Bericap NA Specialty Containers Still Wine Sparkling Spirits CSD Water Hot Fill & Aseptic Milk & Food Industrial Pharma
Slide 10: Focus segment because Closures industry aligned to Amcor's portfolio principles
Focus segment because Closures industry aligned to Amcor’s portfolio principles 07 Focus-segment Industry characteristics features Primary packaging for Closures required for same consumer segments as current portfolio consumer segments Favorable industry structure Good structure within segments wit
Slide 11: Customers aligned with Flexibles and Rigids
Customers aligned with Flexibles and Rigids 08
Slide 12: Closure industry themes
Closure industry themes 09 Growing market with significant MNC customer presence Strong demand in pharma, personal care, homecare, wine, spirits and some food sectors Increasing requirements for functionality (e.g., safety, dosing, anti-counterfeiting) Innovation/ technology is an important lever fo
Slide 13: Large, growing industry with sizeable addressable market
Large, growing industry with sizeable addressable market 10 Market size, USD bn CAGR, % ~6% p.a. 58 Global Closures market 9 $40-45bn 44 6.7 RoW 6 20 7.8 Addressable market Asia 14 $25bn 14 3.7 Europe 12 Amcor sales $0.4bn N. America 12 15 4.1 2014 2019 Large market ($44bn, of which $25bn is conside
Slide 14: Large, growing industry serving multiple end use segments
Large, growing industry serving multiple end use segments 11 Break down of Caps & Closure market, based on global volume, 2014 End use markets Product materials Product type Cork Push-Pull Others Dispensers / Pumps Home & Personal Care Rubber Cork Plastic Screw Caps CSDW Plastic Metal Screw Pharmace
Slide 15: Amcor Closures strategy
Amcor Closures strategy 12 Objectives Guiding Principles Outcome Turbo-charge growth in Exploit breadth of product portfolio Accelerated sales and profit growth current businesses Innovation capability Differentiated value proposition Key account management Closer to customers System solutions (cont
Slide 16: Key messages
Key messages 13 Successful base business with proven Attractive segment Focus segment offering significant track record of organic growth Aligned to Amcor’s portfolio principles organic and acquisition growth Above average profitability within Amcor Increasing requirement for functionality offers op
Slide 17: Amcor Capsules
AMCOR CAPSULES
Slide 18: Agenda
Agenda 02 1 Safety 2 Key messages 3 Capsules today a Who we are and what we do b Our competitive positioning 4 Looking forward a Segment trends and growth opportunities b Growth strategy c Innovation
Slide 19: Safety: our first priority
Safety : our first priority 03 Our goal : zero accidents Already achieved during 700 days in 2014 and 2015 Two plants without any recordables past six years 3.30 2.30 Difficult past 12 months due to high activity in the 3.30 1.56 1.55 plants 1.45 1.31 0.00 0.00 0.00 0.00 0.78 0.73 FY11 FY12 FY13 FY1
Slide 20: Agenda
Agenda 04 1 Safety 2 Key messages 3 Capsules today a Who we are and what we do b Our competitive positioning 4 Looking forward a Segment trends and growth opportunities b Growth strategy c Innovation
Slide 21: Key Messages
Key Messages 05 Strong base business Attractive markets Substantial growth Sizeable player Conversion to wine screwcaps is potential Diverse range of premium product robust with significant headroom STELVIN franchise offerings Spirits growing, with brand Conversion to screwcaps and Innovation capabi
Slide 22: Agenda
Agenda 06 1 Safety 2 Key messages 3 Capsules today a Who we are and what we do b Our competitive positioning 4 Looking forward a Segment trends and growth opportunities b Growth strategy c Innovation
Slide 23: An innovator in wine caps since 1958
An innovator in wine caps since 1958 07 1958 1968 1990s 2000s 2010 2016 Le Bouchage Official launch of the Three French sites Expansion continues with Pechiney Emballages More than 1.7bn STELVIN Mecanique founded in STELCAP-VIN (Chalon, Saint acquisition of Capalux (St Alimentaires acquired by screw
Slide 24: Global footprint, local knowledge
Global footprint, local knowledge 08 Americas Saint Césaire Saint Seurin sur l’Isle Mareuil sur Aÿ 6 American Canyon Plants Santiago Chalon sur Saône 800 Employees France
Slide 25: Proven management team
Proven management team 09 Nicolas Freynet Amcor Capsules Managing Director (since 2011) Laurent Hainon Patrice Rigaud Arturo Martorelli Eric Vicente Plant General Manager Plant General Manager Sales & Marketing Director HR Manager Mareuil sur Ay (Fr) Saint Seurin sur l’Isle (Fr) (since 2014) (since
Slide 26: Product range
Product range 10 Closing and capping solutions for Still wines Spirits Sparkling wines
Slide 27: The STELVIN range
The STELVIN® range 11 CLOSURES LINERS OFFERS ORIGINAL EXPERT World leading brand in wine aluminium closure. A unique Choose the oxygen permeability the guarantee of quality and reliability most adapted to your wines The ultimate by STELVIN® 24 classic, trendy colors 70 2 50 2 30 2 Available within 2
Slide 28: Refine your design with a STELUXE / STELVIN LUX closure
Refine your design with a STELUXE / STELVIN®LUX closure 12 Premium appearance – smooth opening, no external threads. Aluminium shell Ultimate elegance Plastic insert
Slide 29: Rolltop & Rolltop+
Rolltop & Rolltop+ 13 Easy-to-use polylaminated overcap Wide range of design options (e.g., embossing, hot-stamping) C-cut tab for easy opening
Slide 30: LuxPrem+
LuxPrem+ The new premium 14 LuxPrem+ overcap is a premium capsule made of a thicker material offering similar look and feel to tin, which adapts to a wide range of glass profiles. The decoration process accommodates the highest brand image. Smooth opening Premium brand image Perfect fit Great altern
Slide 31: Softgard+
Softgard+ The ultimate luxury 15 Luxurious touch and feel of pure tin Large range of decoration options to convey your brand equity Protection of your brand through Seamless adaptation to any bottle a range of anti-counterfeiting solutions
Slide 32: Sparkling Hoods – A broad range
Sparkling Hoods – A broad range 16 L U X É TA I N LUXPREM CHAMPTOP C H AM PA L U X E Ultimate Simply Ahead of Classic customisation luxury difference Value TIN POLYLAM POLYLAM POLYLAM EXCEPTIONAL CHOICE
Slide 33: Demonstrated growth with solid financial performance
Demonstrated growth with solid financial performance 17 FY11 to FY16 sales growth +4,2% CAGR FY11 FY16
Slide 34: Broad range of customers
© omcor | Broad range of customers BACARDL DIAGEO Constellation Brands Pernod Ricard ) ConcHa Y Toro: LVMH MOET HENNESSY . LOUIS VUITTON [Beam SUNTORY SUTTER HOME
Slide 35: Favourable competitive position in attractive markets
Favourable competitive position in attractive markets 19 Sizeable player in a competitive marketplace Long-term, key customer relationships Advantaged footprint Innovation engine Experienced team that delivers 2
Slide 36: Agenda
Agenda 20 1 Safety 2 Key messages 3 Capsules today a Who we are and what we do b Our competitive positioning 4 Looking forward a Segment trends and growth opportunities b Growth strategy c Innovation
Slide 37: Our vision
Our vision 21 Worldwide presence and international Innovative products and services culture, leader in each providing solutions to our customers of our markets Global leader, recognized as the most Innovative and customer focused provider of quality closures for wines and spirits Customer focused, f
Slide 38: Segment dynamics
Segment dynamics 22 Still Wine Trend to screwcap conversion continues at +5.7% growth globally (+8% in the U.S.) Wine overcaps (+ corks) shrinking at -3%p.a.; premium tin overcaps stable Screwcap conversion underpinned by avoidance of spoilage due to cork taint, demand for convenient packaging, new
Slide 39: Global screw-cap growth - Still Wine
Still Wine trend: Conversion to screw-caps continues 23 Closure type (global share) – Still Wine Global screw-cap growth - Still Wine 7.00 +5,7% CAGR 6.00 6% 5.00 26% 4.00 EUR AM 68% 3.00 ROW 2.00 1.00 0.00 2010 2011 2012 2013 2014 2015 Corks + Overcaps Screw Caps Other CAGRs: EUR 4.6% AM 8.6% ROW 7
Slide 40: Well positioned with headroom to grow
Well positioned with headroom to grow 24 Total Market Size (Europe and Americas) Category B units CAGR ‘10-’15 Our focus segments: Wine screwcaps Spirits Screwcaps 7.2 +2.1% Premium Spirits screwcaps Premium overcaps Spirits Overcaps 1.7 +2.2% Growing at >6% Wine Screwcaps 4.0 +5.7% Wine Overcaps 13
Slide 41: Competitive Landscape (Europe & Americas)
Competitive Landscape (Europe & Americas) 25 Amcor Competitor 1 Competitor 2 Leader in the segments we focus on Competitor 3 Competitor 4 One other sizeable player Competitor 5 Majority of competition is: Competitor 6 Privately owned Competitor 7 <$50m turnover Competitor 8 Competitor 9 1 or 2 plant
Slide 42: Growth Strategy
Growth Strategy 26 Opportunity Principles Outcomes Exploit STELVIN franchise Breadth of product portfolio Core Segments Innovation capability Key account management Accelerated sales and Innovation profit growth Field technical services Differentiated value New Segments Brand protection and consumer
Slide 43: Innovation – standing out from the crowd
Innovation – standing out from the crowd 27 Printing innovations Soft touch effect: Shiny inks Hot-stamping the velvet feel to shine
Slide 44: Amcor Capsules innovation
Amcor Capsules innovation 28 3D inks Optical brighteners: Color shifting inks, for tactile effect Match your color and gain visibility at on-premise similar to a banknote nightclubs Thermo-sensitive inks Hot-stamped hologram Static QR code show the perfect serving temperature available on overcap an
Slide 45: Exclusive on aluminium closure
The devil is in the detail Improved branding 29 Perfect alignment label / closure Exclusive on Invisible UV Spot aluminium closure Not disturbing the design UV detection cells (Adaptation on the bottling line is required)
Slide 46: Create a closure shaped to your brand
Create a closure shaped to your brand 30 We can create differentiating closures fitting your brand design requirements We are happy to work with your design agency
Slide 47: Bombay Sapphire: Standing out with a uniquely designed closure
Bombay Sapphire: Standing out with a uniquely designed closure 31 BRIEF Create a unique aluminium closure to highlight the premium status of Bombay Sapphire AMCOR’S ANSWER As an expert in aluminium shaping, Amcor Capsules conceived a distinctive ‘T’ shape closure for Bombay Sapphire Gin The custom-s
Slide 48: Benedictine: From tradition to technology, in style
Benedictine: From tradition to technology, in style 32 BRIEF Replicate the shape of the cork stopper (with lead strip) in an aluminium closure Ensure ease of opening, even with the high liqueur sugar content AMCOR’S ANSWER With unique capabilities in aluminium shaping, Amcor Capsules conceived a dis
Slide 49: Counterfeiting in the news
Counterfeiting in the news 33
Slide 50: Wines and spirits: Fighting against fraud and counterfeiting
Wines and spirits: Fighting against fraud and counterfeiting 34 H O W C A N A B R A N D B E P R O T E C T E D T H R O U G H I T S PA C K A G I N G ? DETECTION AUTHENTICATION Make a packaging element difficult to copy Make a packaging element difficult to re-use Prevention - Intricate designs, specif
Slide 51: Visible authentication solutions
Visible authentication solutions 35 n n n n SHIFTING INKS HOLOGRAMS MICRO-RELIEF MICRO-EMBOSSING Same closure Different design changing with the angle
Slide 52: Our solutions of connected capsules
Our solutions of connected capsules 36 KEY BENEFITS ENGAGE RUN PROMOTIONS TA R G E T PROTECT CONSUMERS E F F I C I E N T LY C AM PA I G N S YOUR BRAND
Slide 53: Electronic highly secure tag incorporated into a premium capsule
37 Electronic highly secure tag incorporated into Millions of unique printed codes a premium capsule Targeting standard and premium wine and spirits Targeting super and ultra-premium spirits and wine brands in need of efficient promotions and brands in need for brand protection consumer engagement A
Slide 54: NFC tag integrated in premium overcap
38 ENGAGE PROTECT TRACK & CONSUMERS YOUR BRAND TRACE The software provided by AMCOR integrates the NFC Selinko offers a secure and tag in its most premium integrated platform for overcap to provide a quality authentication, traceability carefree ready-to-cap and direct-marketing services solution
Slide 55: by Kezzler & Amcor
Max by Kezzler Q Amcor DESIGNED TO GROW CONSUMER ENGAGEMENT AND LOYALTY
Slide 56: In summary
In summary 40 Well-positioned to exploit growth in target segments Industry-leading product portfolio with premium image Innovation capability that addresses industry trends Track record of delivering organic growth 2
Slide 57: Bericap North America (BCNA)
Bericap North America (BCNA)
Slide 58: Agenda
Agenda 02 1 Safety 2 Introduction to Bericap North America a Key Messages b The Joint Venture c Strong Position d Attractive Segment e Substantial Growth Potential f Case Studies g Summary
Slide 59: Bericap safety overview
© amcor | Bericap safety overview Frequency Range mom RCFR extee LTIFR 39.4 Z One 0 03/04A O4/05A O5/06A O6/07A O7/08A O8/09A O9MOA 10/11A 11/12A 1243A 13/14A 14/15A 15/16 1617 YTD
Slide 60: Agenda
Agenda 04 1 Safety 2 Introduction to Bericap North America a Key Messages b The Joint Venture c Strong Position d Attractive Segment e Substantial Growth Potential f Case Studies g Summary
Slide 61: Bericap North America – 50/50 joint venture
Bericap North America – 50/50 joint venture Key messages 05 Strong Position In Attractive Segments With Substantial Growth Potential BCNA is an integral part of Bericap’s global Strong foundation in the North American Part of Amcor’s closure focus segment footprint beverage sector Driving growth wit
Slide 62: Our partner - The Bericap Group
Our partner - The Bericap Group A strong position 06 Family owned with strong Innovation oriented Global presence Quality driven customer commitment In-house manufacturing of One of few global manufacturers Manufacturing excellence injection moulds of plastic caps and closures with through continuou
Slide 63: 23 plants in 20 countries
Bericap’s Global Footprint A strong position 07 23 plants in 20 countries
Slide 64: Bericap and Amcor
Bericap and Amcor A strong position 08 Bericap’s European expansion Bericap’s global expansion Bericap and Amcor collaboration 1926 - 1995 1996 - Present 1992 – Amcor manufactures closures in Canada (Crown Licensee); Current Burlington, Ontario plant 1926 – Germany 1996 – Asia 1951 – France 1997 – C
Slide 65: Bericap North America – Strategic locations
Bericap North America – Strategic locations A strong position 09 Burlington, ONT Ontario, CA Cowpens, SC Mexico City, Mexico (under development)
Slide 66: The BCNA leadership team
The BCNA leadership team A strong position 10 Dave Andison President &COO Bericap North America Mike Lubrick Mary Lou Bednarski Jennifer Hackett Dave Watson Director of Engineering, Human Resource Manager, Director of Sales, Director, North America North America Beverage Closures Business Developmen
Slide 67: Track record of growth
Track record of growth A strong position - Offering customers value creating innovations 11 Revenue Revenue growth driven by: Global Customer Access Leverage Amcor’s customer relationships 2011- Integral part of Bericap’s global footprint 2016 CAGR +6.4% Technology Leader Adding value through weight
Slide 68: Product mix
Product mix A strong position - Healthy segment mix 12 FY16 Sales Volume FY16 Revenue 17.5B US$158 units CSD Water Flat Water Sports Edible Oil Motor Oils & Gabletop Juice Ag. Chem Traded Industrials
Slide 69: Supplying a diverse customer base
Supplying a diverse customer base A strong position 13
Slide 70: Categories served
Categories served Attractive segments 14 BEVERAGES PACKAGING INDUSTRY: EDIBLE SAUCES & AUTOMOTIVE CHEMICAL CSD, MINERAL WATER, METAL, GLASS, CARTON, OIL DRESSINGS INDUSTRY INDUSTRY JETS, BEER, MILK, HOD BLOW MOULDED, PAILS
Slide 71: BCNA and the U.S. Closure Market
BCNA and the U.S. Closure Market Substantial growth potential - Room to grow, opportunity to diversify 15 Plastic Closures - Million Units US Market BCNA Share All others Competitor 1 Bericap Water 62,790 7,885 12.6% Competitor 2 CSD 26,270 3,467 13.2% Wine and Spirits 2,455 0 0.0% Competitor 3 Frui
Slide 72: Industry-leading lightweight designs
Industry-leading lightweight designs Substantial growth potential - Supporting our customer’s sustainability and cost reduction goals 16 2002 2007 2015 CO2 emission (tons) Electricity 174 306 389 Resin 150 279 401 emission (t) Total 324 585 790 CO2 emission (kg CO2/1.000 CO2 Vol. in bn 23,9 44,4 73,
Slide 73: Case study – Delivery of value to the North American CSD market
Case study – Delivery of value to the North American CSD market 17 Supporting Cost Savings & Sustainability Benefits Traditional 2-piece First introduction PP closure with of 1-piece HDPE separate EVA liner closure to NA CSD market Conversion of 1810 closure to Bericap’s “Super Shorty” design 17% re
Slide 74: More than 500k lbs. of material savings annually
Case study – Canadian isotonic sportscap (hotfill) 18 More than 500k lbs. of material savings annually Double seal technology enabled bottle weight reduction from 45g to 40.5g Closure weight decreased from 9.4g to 8.2g Eliminate silicon valve Eliminated IHS seal Eliminated T/E shrink wrap Consumer f
Slide 75: Case Study - Industrial North America Market Shift
Case Study - Industrial 19 BCNA Supporting BWay’s strategy to convert North America from a pail market to a jerry can market North America Market Shift
Slide 76: BCNA Strategy
BCNA Strategy Substantial growth potential - Strategy 20 Objectives Guiding Principles Outcome Grow North American Expanded share of the North American Industry leading lightweight designs base in beverage beverage market Footprint across all of North America market (including Mexico) Greater partic
Slide 77: Bericap North America – 50/50 Joint Venture
Bericap North America – 50/50 Joint Venture Key messages 21 Strong Position … In Attractive Segments … With Substantial Growth Potential BCNA is an integral part of Bericap’s Strong foundation in the North Part of Amcor’s closure focus segment global footprint American beverage sector Driving growth