Slide 1: The Amcor Overview October 2005
THE AMCOR OVERVIEW OCTOBER 2005
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: Amcor at a Glance: Fundamentals
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 2 globally by sales • Largest PET producer globally Sales $6.5b 75% Aust/NZ Sales ~ $11.1b 20% Aust/NZ 80% Rest of World 25% Rest of World
Slide 5: 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 6: Amcor at a Glance: Structure
AMCOR AT A GLANCE STRUCTURE 1995 2005 Amcor Amcor Amcor Rentsch Containers Amcor Fibre Amcor Amcor Amcor Asia Packaging Packaging Flexibles Australasia & Closures Investments Amcor 50% Kimberley- Paper Group Clark Aust Amcor PET Amcor 46% Spicers Paper Packaging Sunclipse © Amcor Ltd 2005
Slide 7: Management Structure
MANAGEMENT STRUCTURE Ken MacKenzie Managing Director & CEO Ron Delia Peter Wilson Peter Day John Murray Ian Wilson Executive Executive Executive Executive Strategic General Manager, General Manager, General Manager, General Manager, Development Operations HR & Operating Finance Corporate Affairs Dir
Slide 8: Operational Structure
OPERATIONAL STRUCTURE Amcor Limited Amcor Amcor Rentsch Amcor PET Amcor Amcor Amcor Asia Flexibles & Closures Packaging Australasia Sunclipse Flexible and film Specialty folding Tobacco carton PET packaging for Corrugated boxes, The distribution unit packaging in the food cartons for tobacco, packag
Slide 9: Amcor at a Glance: Global Product Mix
AMCOR AT A GLANCE GLOBAL PRODUCT MIX 1995 2005 Cans Closures – Metal & Plastic Other Flexibles 8% PET Plastic Tubes Corrugated Rigid Plastics & Paper PET 16% 33% 20% Cartons 8% Metal 4% Closures 5% Papers & Paper Based Packaging Flexibles 26% 80% © Amcor Ltd 2005
Slide 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: Ranking of Major Global Packaging Companies by Sales Calendar 2004
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 20: 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 21: Summary
Summary Reshaping & growing Optimizing 1998 2004 2006 Australian Leading Global Paper & Global Packagin Packagin Packagin g g g Packaging Industry Company Leverage position to Company Company Consolidator improve returns Delivering good growth in both earnings and dividends © Amcor Ltd 2005
Slide 22: 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 23: 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 24: 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 25: 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 26: Amcor Closures
AMCOR CLOSURES Amcor White Key Drivers Opportunities Priorities Cap & - Low cost - Improved sales and - Further restructuring Bericap NA profits from new of cost base - Manufacturing plants in Philippines (*9% Group Sales) excellence and Poland * Rentsch & Closures - Continued improvement in base bu
Slide 27: 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 28: 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 29: Broad Global Platform
BROAD GLOBAL PLATFORM 240 plants in 39 countries Annual Sales $11.1 billion © Amcor Ltd 2005
Slide 30: Research & Technology Centres
RESEARCH & TECHNOLOGY CENTRES © Amcor Ltd 2005
Slide 31: www.amcor.com
AMCOR WWW.amcor.com