Slide 1: Full Year Results 30 June 2010 Investor Presentation
For personal use only Full Year Results 30 June 2010 Investor Presentation August 26, 2010
Slide 2: Disclaimer
Disclaimer For personal use only Forward looking statements 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. F
Slide 3: Key messages and full year results
Key messages For personal use only • Improved result in difficult economic conditions • Strong free cash flow • Alcan Packaging integration “on track” • Ball Plastics Packaging acquisition creates additional opportunity Business performance and acquisition integration as expected 3 Full year results
Slide 4: Operating cash flow – A$567 million
Operating cash flow – A$567 million For personal use only Amcor average working capital to sales (%) A$ million Jun 09 Jun 10 PBITDA(1) 1,088.7 1,213.9 13.3 12.4 Operating cash flow(2) 419.6 566.8 10.8 Dividend (288.5) (286.2) 9.8 9.6 Free cash flow(3) 131.1 280.6 7.9 (1) Before significant items (2
Slide 5: Alcan Packaging integration
For personal use only Alcan Packaging integration Alcan Packaging integration New transformational opportunities Cost Customer Operating synergies value model Culture 9 4
Slide 6: Culture and cost synergies
Culture For personal use only • Cultural integration is the most important task New transformational • Embedding of “The Amcor Way” opportunities • Organisational structure implemented quickly Cost Customer Operating • Extensive on-boarding of new co-workers synergies value model Culture Strong cult
Slide 7: Customer value and operating model
Customer value For personal use only • Customers supportive New • Engagement on new value proposition transformational opportunities • No volume impact to date • Customer decisions will be key input to plant Cost Customer Operating synergies value model rationalisation strategy Culture Positive feed
Slide 8: New transformational opportunities and integration summary
New transformational opportunities For personal use only • New opportunities to capture value New • Customer and market insights transformational opportunities • Global supply network • Unique value chain models Cost Customer Operating synergies value model • Proprietary technology development Cultu
Slide 9: Business Group performance: Flexibles
For personal use only Business Group performance Flexibles Euro million Jun 09 Jun 10 17.2% Sales 1,804 2,809 14.7% PBIT 148.5 252.3 252.3 AFE 1,009 1,463 PBIT/AFE % 14.7 17.2 148.5 Operating cash flow 133.5 276.5 • Solid five months for new businesses • Returns increased to 17.2% Jun 09 Jun 10 • Pr
Slide 10: Flexibles raw material input costs and Rigid Plastics
Flexibles – raw material input costs For personal use only 180 170 160 150 140 130 120 110 100 90 80 Apr-06 Jan-06 Oct-06 Jan-09 Apr-09 Jul-09 Oct-09 Apr-04 Jul-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-04 Jul-04 Oct-04 Jan-05 Apr-05 Oct-05 Jan-08 Apr-08 Jul-08 Oct-08 Jul-05 Jan-10 Apr-10 Jul-10 Resins Alu
Slide 11: Rigid Plastics
Rigid Plastics For personal use only • North American earnings lower • Custom volumes 10% lower • 6.6% higher in the fourth quarter vs pcp • CSDW volumes 11% lower • Latin American earnings substantially higher • Custom volumes up 5.7% • Leveraged to volume growth • Benefits from Ball Plastics acqui
Slide 12: Australasia and Packaging Distribution
Australasia and Packaging Distribution For personal use only A$ million Jun 09 Jun 10 10.0% Sales 2,985 2,800 8.2% PBIT 140.6 161.2 161.2 AFE 1,713 1,605 140.6 PBIT/AFE % 8.2 10.0 Operating cash flow 270.1 183.4 • Higher earnings in all businesses • H2 2010 earnings up 56% on H2 2009 Jun 09 Jun 10 •
Slide 13: Full year results – Results
Full year results For personal use only 30 June 2010 Leslie Desjardins – Executive Vice President Finance Results A$ million Jun 09 Jun 10 Proforma 2010 (1) Sales 9,535.4 9,849.5 PBITDA (1) 1,088.7 1,213.9 PBIT (1) 646.6 759.2 886 Net interest (181.7) (183.4) Tax & minorities (104.4) (166.6) PAT (1)
Slide 14: 2010 Proforma PBIT
2010 Proforma PBIT For personal use only Amcor Group Flexibles Group (A$ million) (Euro million) Reported 2010 PBIT 759.2 252.3 Less 2010 synergies (17.3) (11.0) Less Tobepal/ Add Medflex (1) (11.6) (7.4) Adjusted 2010 PBIT 730.3 233.9 Alcan Packaging earnings - December 2009 half (2) 138.5 88.0 Alc
Slide 15: Cash flow and working capital performance
Cash flow For personal use only A$ million June 09 June 10 Operating cash flow 420 567 Dividends (289) (286) Free cash flow 131 281 Acquisitions (net of divestments) / growth capex (320) (2,701) Proceeds from share issues 29 1,571 Foreign exchange rate changes 3 (26) Increase in net debt (157) (875)
Slide 16: Significant items and capital structure
Significant items For personal use only A$ million Jun 10 Transaction and integration costs associated with the Alcan Packaging acquisition 115 Costs to achieve synergies associated with the Alcan Packaging acquisition 58 Brazil tax amnesty program 20 Flex 1 / Other restructuring 56 Legal costs and
Slide 17: Refinancing update and debt profile
Refinancing Update For personal use only • Substantial progress in 2009/10 • USPP - US$850 million - 7,9,12 years at an average interest rate of 5.7% • Subsequent to year end • Renewed A$100 million bi-lateral facility • €150 million private placement for 5 and 10 years at 3.4% and 5.0% respectively
Slide 18: Amcor Group – 2011 earnings key considerations
Amcor Group – 2011 earnings key considerations For personal use only • Proforma 2010 PBIT of $886(1) based on 2010 average exchange rates • Proforma 2010 PBIT of $846(2) based on spot rates of 69 Euros and 90 US cents. • Key drivers for 2011 earnings: • Alcan Packaging synergies – PBIT benefit expec
Slide 19: The new Amcor and growth opportunities
The new Amcor For personal use only Proforma FY10 Sales Proforma FY10 Sales Rigid Australia Plastics Western NZ 22% Europe 18% Flexibles 54% 37% Emerging Markets Fibre, 17% Metal & Glass 24% Nth America 28% Focused portfolio Global footprint 35 Substantial earnings growth opportunities • Emerging ma
Slide 20: Summary
Summary For personal use only • Improved financial results • Strong free cash flow • Alcan Packaging integration on track Creating a new • Substantial growth opportunities world of packaging • An exciting year for Amcor 37 Appendix slides Full year results 30 June 2010 19
Slide 21: Amcor Flexibles Asia Pacific
For personal use only Amcor Flexibles Asia Pacific Full year results 30 June 2010 Flexibles Asia Pacific Key Features: • 19 Flexibles Packaging plants in seven countries • Eight legacy Amcor and 11 legacy Alcan plants • 2010 proforma sales approximately A$750 mill • Number 1 position in ANZ, China a
Slide 22: Asia Pacific is the largest and fastest growing region
Asia Pacific is the largest and fastest growing region For personal use only Asia-Pacific 4,000 6.0% 5.0% 3,000 4.0% 56% of 5.5% pa 2,000 global growth 3.0% population 2.0% 1,000 1.0% 0 0.0% Popn 5yr GDP%pa Data Source: EIU, July 2010 56% of the world’s population growing at 5.5% per annum 42 80% of
Slide 23: Three very different markets for Flexibles packaging
Three very different markets for Flexibles packaging For personal use only Market #1: High Growth, Developing Market #3 : Low Growth, Mature South Korea Accessible market size: A$7 bill 3 • China : $3.8 bill, India : $1.2 bill, SEA : $2.0 bill China Accessible market size: A$5.6Bn Japan Characterist
Slide 24: Historic performance – Half year sales
Historic performance – Half year sales 2008/09 & 2009/10 For personal use only Sales (million) Currency Dec 08 Jun 09 Dec 09 Jun 10 Proforma FY2010 (3) Flexibles (1) EUR 935 869 869 1,940 Rigid Plastics USD 1,272 1,203 1,064 1,194 Australasia and Packaging AUD 1,564 1,421 1,398 1,402 Distribution In
Slide 25: Historic performance – Half year AFE
Historic performance – Half year AFE 2008/09 & 2009/10 For personal use only Average Funds Employed Currency Dec 08 Jun 09 Dec 09 Jun 10 (million) Flexibles (1) EUR 1,033 1,009 981 1,463 Rigid Plastics USD 1,655 1,601 1,453 1,460 Australasia and Packaging AUD 1,732 1,713 1,575 1,605 Distribution Inv
Slide 26: Rigid Plastics – Historic performance half year
Rigid Plastics – Historic performance half year For personal use only Sales Dec 08 Jun 09 Dec 09 Jun 10 USD million North America 761 763 573 742 Latin America 469 393 447 395 Bericap 40 43 42 53 BG/India 2 4 2 4 Total 1,272 1,203 1,064 1,194 49 Amcor Rigid Plastics product mix North America Sales (
Slide 27: Australasia and Packaging Distribution
Australasia and Packaging Distribution For personal use only Sales A$ million Dec 08 Jun 09 Dec 09 Jun 10 Fibre 631 593 607 607 Rigids 336 291 328 312 Packaging 597 537 463 483 Distribution (1) Total 1,564 1,421 1,398 1,402 1. Packaging Distribution is made up of: A$ million Dec 08 Jun 09 Dec 09 Jun