Amcor Plc · NYSE:AMCR
Amcor — Credit Suisse Asian Investment Conference 2019
38 slides from Amcor's conference presentation, March 2019
Slide 1: Credit Suisse Asian Investment Conference
Credit Suisse Asian Investment Conference Ron Delia Managing Director & CEO March 2019
Slide 2: Disclaimer
Disclaimer Cautionary Statement Regarding and the expected timing of the completion satisfied or waived, including that a of the parties to the contemplated Forward-Looking Statements of the contemplated transactions. Such governmental entity may prohibit, delay or transactions; transaction costs; a
Slide 3: Disclaimer continued
Disclaimer continued Cautionary Statement Regarding law. No offer of securities will be made In connection with the scheme of directors and executive officers is set forth Forward-Looking Statements cont. except by means of a prospectus meeting arrangement, which is part of the in its Annual Report
Slide 4: Safety
Safety Lost-time frequency rate Recordable-case frequency rate 24% fewer LTI’s than 1H18 20% fewer RC’s than 1H18 1.40 6 1.2 Acquisition 5.1 1.20 impact 5 1.0 1.00 0.9 4.1 4.0 0.9 0.9 4 Acquisition 0.8 0.8 3.4 impact 0.80 0.7 0.6 0.6 3 2.6 2.6 2.4 2.4 0.60 0.5 2.0 2.0 2.0 2 0.40 0.20 1 0.00 0 Commit
Slide 5: Key messages
Key messages 1 Amcor: Uniquely Positioned and High Performing 2 Clear Strategy and Significant Growth Potential 3 Bemis transaction: Substantial Value Creation Opportunity 5
Slide 6: Amcor overview
Amcor overview • Founded in Australia in 1860s Focused portfolio of high value • USD 9bn sales, AUD 17bn market cap, ASX listed packaging for consumer staples • Global leader: flexible and rigid plastic consumer packaging • ~195 plants, ~33,000 employees, 40+ countries 4% 6% 13% 14% 37% 4% USD 9bn U
Slide 7: Geographic diversification, global reach and local presence
Geographic diversification, global reach AND local presence Sales by Sales by emerging and Emerging market sales geographic region developed markets by country Asia Pacific 15% Emerging Europe, markets Middle 30% East & Africa USD 9bn USD 9bn USD 3bn 41% sales sales sales Developed Americas markets
Slide 8: Strong financial metrics and consistent margin improvement
Strong financial metrics and consistent margin improvement EBIT margins 12.0% 11.6% 10.9% 11.1% 11.2% 9.1% 8.7% 8.1% 7.7% 7.1% 6.8% 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Return on Average Funds Employed 19.0 11.8 Estimated pre-tax WACC 2007/08 2008/0
Slide 9: Key messages
Key messages 1 Amcor: Uniquely Positioned and High Performing 2 Clear Strategy and Significant Growth Potential 3 Bemis transaction: Substantial Value Creation Opportunity 9
Slide 10: Amcor Strategy
Amcor Strategy Our businesses FOCUSED PORTFOLIO: FLEXIBLE RIGID SPECIALTY CLOSURES PACKAGING CONTAINERS CARTONS Our differentiated capabilities THE AMCOR WAY: Our winning aspiration WINNING FOR CUSTOMERS, Significant growth opportunities EMPLOYEES, INVESTORS AND THE THE leading global packaging comp
Slide 11: Capital allocation framework
Capital allocation framework Amcor Shareholder Value Creation Model Dividend Growth in line with (~ USD 500m) EPS ~ 4% yield Total shareholder Strong, Reinvestment Organic EPS growth value of 10-15% defensive cash (~ USD 400m) of ~ 3-4% per annum with flow low volatility Acquisitions EPS growth of ~
Slide 12: Sustainability: Capturing the opportunity
Sustainability: Capturing the opportunity There will always be a Requirements of Responsible packaging Amcor is uniquely role for packaging packaging are increasing: is the answer positioned to lead the end of life solutions / way waste reduction is critical To Protect Consumer packaging Belief in r
Slide 13: Sustainability: Capturing the opportunity
Sustainability: Capturing the opportunity 2018 – Our Pledge 2019 – Momentum building • New Plastics Economy Global Commitment We are the first packaging company • Flexibles R&D Centre of Excellence pledging to develop all • Several new products packaging to be recyclable or reusable • Multiple partn
Slide 14: Key messages
Key messages 1 Amcor: Uniquely Positioned and High Performing 2 Clear Strategy and Significant Growth Potential 3 Bemis transaction: Substantial Value Creation Opportunity 14
Slide 15: Amcor and Bemis: Creating the global leader in consumer packaging
Amcor and Bemis: Creating the global leader in consumer packaging Global leader in Leader in Rigid Global leader in Sizeable player in Flexible Packaging Containers in the Specialty Cartons global Closures Americas region ~US$13bn ~US$2.1bn >US$1.2bn COMBINED SALES COMBINED PBITDA1 COMBINED CASH FLO
Slide 16: Strategic rationale
Strategic rationale Stronger value proposition for customers, employees and the environment Attractive end Global footprint Greater scale markets Depth of Best-in-class Sustainability management capabilities commitment talent 16
Slide 17: Global flexible packaging footprint
Global flexible packaging footprint Amcor Flexibles1 Bemis2 Combined global flexible packaging footprint 9% 8% 7% 5% 13% 37% 37% USD 5bn USD 4bn ~110 plants 24% ~50 plants USD 9bn 60% ~160 plants 74% 16% 10% North America Latin America Asia Pacific Europe, Middle East and Africa 1. Based on revenues
Slide 18: Flexible packaging leadership positions and scale in all key regions
Flexible packaging leadership positions and scale in all key regions Flexibles North America Flexibles Europe 0.3 2.9 3.3 3.3 3.0 Flexibles Asia 0.5 0.2 Amcor Bemis Combined company Amcor Bemis Combined company 1.4 1.2 Flexibles Latin America Amcor Bemis Combined company 0.5 0.9 0.4 Amcor Bemis Comb
Slide 19: Best-in-class capabilities…greater differentiation…global platform
Best-in-class capabilities…greater differentiation…global platform Amcor brings: Bemis brings: • The Amcor Way • Material science and technology • Strong relationships with Global Key Accounts • R&D resources and infrastructure • Profitable Emerging Markets • Participation in attractive segments • T
Slide 20: Financial rationale
Financial rationale Substantial value creation expected for all shareholders Compelling Stronger Greater transaction financial Cash and tax liquidity for financial profile going free1 investors metrics forward 1. Refer footnote 4, slide 23. 20
Slide 21: Significant cost synergy benefits
Significant cost synergy benefits Substantial expected cost synergy opportunity of USD 180 million p.a. (4-5% of Bemis sales)1 Estimated USD 180 million pre-tax annual cost synergies Generated from the following areas: Estimated realization (USDm): 180 40% 100% 130 20% 65 40% Procurement Operations
Slide 22: Stronger financial profile going forward
Stronger financial profile going forward Stronger earnings and cash generation expected FY18 proforma Adjusted PBITDA (USD) • Higher margins 0.6bn 180m 2.1bn • Stronger growth potential 1.4bn • Combined annual operating cash flow >USD 1.2 billion1 • Competitive, progressive dividend • Expected to in
Slide 23: Greater liquidity and cash and tax free
Greater liquidity and cash and tax free Two major global listings Increased index weighting • Two major global listings – NYSE and • Expected inclusion and strong weighting ASX (via CDIs)1 in the S&P500 and S&P/ASX200 indices3 • Existing Amcor shareholders can elect to receive CDIs or NYSE shares •
Slide 24: Substantial progress towards closing
Substantial progress towards closing • Amcor and Bemis Shareholder meetings planned for Thursday 2 May 2019 Key Dates • Transaction expected to be implemented on Wednesday 15 May 2019 Shareholder • Filed with regulators in Australia and the US documentation • Transaction subject to approvals in the
Slide 25: Key messages
Key messages 1 Amcor: Uniquely Positioned and High Performing 2 Clear Strategy and Significant Growth Potential 3 Bemis transaction: Substantial Value Creation Opportunity 25
Slide 26: Appendix slides: Amcor and Bemis combination
Appendix slides Amcor and Bemis combination
Slide 27: Strategic rationale
Amcor and Bemis Strategic rationale combination Stronger value proposition for customers, employees and the environment • Unique, truly global flexible packaging supplier Global footprint • Comprehensive flexible packaging footprint across all key regions • Broad and profitable emerging markets busi
Slide 28: Financial rationale
Amcor and Bemis Financial rationale combination Substantial value creation expected for all shareholders • All-stock acquisition at an implied value in line with Amcor’s trading EV/PBITDA multiple, pre synergies Compelling transaction metrics • US$180 million of pre-tax annual cost synergies by the
Slide 29: Bemis overview
Amcor and Bemis Bemis overview combination • Founded in Missouri in 1858 • US$4bn sales; US$5bn market cap; NYSE listed • Leading position in flexible packaging $ • ~54 plants, ~15,700 employees, 12 countries 8% 5% 5% 29% 13% 49% US$4bn US$4bn US$4bn sales sales sales 13% 74% 9% 95% Meat & cheese Da
Slide 30: Appendix slides: Amcor profile
Appendix slides Amcor profile
Slide 31: Reporting segment overview
Amcor Reporting segment overview profile Flexibles Rigid Packaging Flexibles Europe, Middle Flexibles Americas North America Beverage Latin America East and Africa North America Specialty Flexibles Asia Pacific Specialty Cartons Bericap NA (JV) Containers 2018 Sales: USD 6.5bn Employees: ~26,000 201
Slide 32: Amcor Flexibles overview
Amcor Amcor Flexibles overview profile Sales by business Sales by end group market 19% 20% 40% 4% USD 6.5bn USD 6.5bn 13% 50% sales 5% sales 11% 18% 20% Europe, Middle East and Africa Food Healthcare Asia Pacific Beverage Home & Personal care Americas Foil & Industrial Other Global Specialty Cartons
Slide 33: Amcor Flexibles historical growth profile
Amcor Amcor Flexibles historical growth profile PBIT margins and RoAFE near doubled in the last decade 24.1% 18.0% 16.0% 13.1% 12.9% 12.8% PBIT Margin % 14.0% 12.1% 12.5% 12.5% 12.0% 11.2% 11.6% 9.8% 10.0% 9.0% 8.4% 8.0% 6.6% 6.6% 6.0% 4.0% 2.0% 0.0% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Slide 34: Amcor Rigid Packaging overview
Amcor Amcor Rigid Packaging overview profile Sales by Sales by category geography 7% 29% North 30% America 19% USD 2.3bn sales USD 2.8bn 34% sales 81% 16% Latin 13% America USD 533m North America Latin America sales 71% Cold fill beverage Hot fill beverage Specialty containers Closures Notes: Based
Slide 35: Amcor Rigid Plastics historical growth profile
Amcor Amcor Rigid Plastics historical growth profile PBIT margins and RoAFE near doubled in the last decade 17.0% 16.0% 14.0% 11.9% 12.0% 11.2% PBIT Margin % 10.5% 9.6% 9.3% 9.7% 10.0% 9.0% 8.3% 8.1% 7.5% 7.5% 7.7% 8.0% 6.4% 6.0% 4.0% 2.0% 0.0% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Slide 36: Reconciliations of US GAAP to Adjusted US GAAP financial information
Reconciliations of US GAAP to Adjusted US GAAP financial information
Slide 37: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures Included in this presentation are measures of financial performance that are not defined by U.S. GAAP. Each of these measures is used in evaluating Amcor’s operating performance and certain of the measures are used as a component of Amcor’s board of dir
Slide 38: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures Year ended 30 June 2018 US$ million Amcor Bemis US GAAP net income attributable to Amcor Limited / Bemis Company Inc 575.2 109.2 Add: Net income (loss) attributable to non controlling interests 11.4 - US GAAP net income 586.6 109.2 Add: Income tax expen
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