Amcor Plc · NYSE:AMCR
Amcor — Baird Global Industrial Conference 2018
30 slides from Amcor's conference presentation, November 2018
Slide 1: Baird Global Industrial Conference
Baird Global Industrial Conference Ron Delia Managing Director & CEO November 2018
Slide 2: Disclaimer
Disclaimer Cautionary Statement Regarding expected timing of the completion of the satisfied or waived, including that a of the parties to the contemplated Forward-Looking Statements contemplated transactions. Such governmental entity may prohibit, delay or transactions; transaction costs; actual or
Slide 3: Disclaimer continued
Disclaimer continued Cautionary Statement Regarding Forward- Important Additional Information Will Be Participants in the Solicitation Non-IFRS information Looking Statements cont. Filed with the SEC Results shown refer to underlying results Bemis, Amcor, New Amcor and their You can obtain copies of
Slide 4: Safety
Safety Lost-time frequency rate Recordable-case frequency rate 1.80 8 7.4 1.6 1.60 7 Acquisition 1.40 impact 1.2 6 1.20 1.0 5.1 Acquisition 5 1.00 impact 0.9 0.9 0.9 4.1 0.8 4.0 0.8 4 0.80 0.7 3.4 0.6 0.6 2.6 0.60 0.5 3 2.4 2.6 2.5 2.0 2.0 2.0 0.40 2 0.20 1 0.00 0 Committed to our goal of ‘no injuri
Slide 5: Key messages
Key messages 1 Amcor: Uniquely Positioned and High Performing 2 FY19 Outlook and 1Q19 trading update 3 Clear Strategy and Significant Growth Potential 4 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 15bn 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 41% Developed Americas markets 44% 70% Europe, Middle East & Africa Ameri
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: FY2019 update summary – 2018 AGM (11 Oct 2018)
FY2019 update summary – 2018 AGM (11 Oct 2018) • Good start to FY2019 • First quarter in line with expectations • No change to outlook comments provided in August • Reconfirmed solid constant currency PBIT growth(2) expectations for Rigid Plastics and Flexibles segments Expect constant currency earn
Slide 10: Amcor strategy
Amcor strategy Our businesses FOCUSED PORTFOLIO: FLEXIBLE RIGID PLASTIC 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 packag
Slide 11: Amcor shareholder value creation model
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 ~ 2-7% and/or buy-backs (~ USD
Slide 12: Sustainability: leading by example
Sustainability: leading by example We are the first packaging company pledging to develop all packaging to be recyclable or reusable by 2025 Develop all our packaging to be recyclable or reusable by 2025 Significantly increase our use of recycled materials in our packaging Work with others to drive
Slide 13: Amcor and Bemis combination
Amcor and Bemis combination Amcor and Bemis combination to create the global leader in consumer packaging ...Stronger value proposition for customers, employees and the environment …Substantial value creation for all shareholders …Two proud histories, one great future 13
Slide 14: Creating the global leader in consumer packaging
Creating the global leader in consumer packaging SPECIALTY Global leader in Leader in Rigid Plastics Global leader in CARTONS CLOSURES Sizeable player in Flexible Packaging Americas region Specialty Cartons global Closures ~USD 13bn ~USD 2.2bn ~USD 1bn+ SALES EBITDA1 CASH FLOW2 Regulatory approvals,
Slide 15: Strategic rationale
Strategic rationale Stronger value proposition for customers, employees and the environment Greater scale to Increased exposure Best-in-class Comprehensive better serve to attractive end operating and global footprint customers in every markets & product innovation region segments capabilities Conti
Slide 16: The global leader in flexible packaging
Flexible The global leader in flexible packaging packaging Comprehensive global flexible packaging footprint Amcor Flexibles1 Bemis2 Combined company USD 5bn USD 4bn ~110 plants ~50 plants USD 9bn ~160 plants North America Latin America Asia Pacific EMEA 1. Based on CY17 revenues, excluding specialt
Slide 17: Leadership positions and scale in all key regions
Flexible Leadership positions and scale in all key regions packaging Flexibles North America Flexibles Europe 0.3 2.8 3.4 3.2 Flexibles Asia 2.9 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 18: 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 19: Financial rationale
Financial rationale Substantial value creation for all shareholders Compelling Stronger Greater transaction financial Cash and tax liquidity for financial profile going free investors metrics forward 19
Slide 20: Compelling transaction financial metrics
Compelling transaction financial metrics Substantial cost synergy opportunity of USD 180 million p.a. by the end of year 31 Estimated synergies • Cost synergies = USD 180m Estimated US$180 million cost synergies Potential for additional sources • Revenue synergies2 = Potential upside of synergies2 •
Slide 21: Amcor - stronger financial profile going forward
Amcor - stronger financial profile going forward Stronger earnings and cash generation FY18 proforma EBITDA (USD bn) • Revenues of USD 13bn; EBITDA of USD 2.2 bn1 • Higher margins 0.6bn 180m 2.2bn • Stronger growth potential • Investment grade balance sheet 1.4bn • Annual free cash flow >USD 1 billi
Slide 22: Summary
Summary 1 Amcor: Uniquely Positioned and High Performing 2 FY19 Outlook and 1Q19 trading update 3 Clear Strategy and Significant Growth Potential 4 Bemis transaction: Substantial Value Creation Opportunity 22
Slide 23: Appendix slides
Baird Global Industrial Conference Ron Delia Managing Director & CEO Appendix slides
Slide 24: Leadership positions and scale in key segments
Leadership positions and scale in key segments Flexibles Rigid Plastics EMEA 1° North America 1° Flexibles 1° Asia Pacific Rigid Plastics 1° Latin America Flexibles Latin America 1° Specialty Cartons, 1° Global Flexibles Europe, Flexibles Flexibles Asia Rigid Plastics Specialty Cartons USD billion a
Slide 25: Amcor reporting segment overview
Amcor reporting segment overview Flexibles Rigids 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 2018 Sales: USD 2.8b
Slide 26: Amcor Flexibles overview
Amcor Flexibles overview Sales by business Sales by end group market 3% 19% 20% 40% 4% USD 6.5bn 47% USD 6.5bn sales 5% sales 13% 11% 18% 20% Flexibles EMEA Flexibles Asia Pacific Food Healthcare Flexibles Americas Specialty Cartons Beverage Home & Personal care Capsules Foil & Industrial Other Note
Slide 27: Flexibles historical growth
Amcor Flexibles historical growth 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 FY17 FY18 PBI
Slide 28: Amcor Rigid Plastics overview
Amcor Rigid Plastics overview Sales by business North America sales unit by category 5% 7% 19% 29% 30% USD 2.8bn USD 2.3bn 51% sales sales 24% 34% North America beverage CSDW North America specialty containers Custom Latin America Specialty containers BCNA JV BCNA JV Notes: Based on FY18 sales reven
Slide 29: Rigid Plastics historical growth
Amcor Rigid Plastics historical growth PBIT margins and RoAFE near doubled in the last decade 17.0% 16.0% 14.0% 12.0% PBIT Margin % 9.6% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 PBIT Margin % 29
Slide 30: Amcor 2018 financial results
Amcor 2018 financial results Statutory result Adjustments(1) Underlying result USD million 2017 2018 2017 2018 2017 2018 Sales revenue 9,101.0 9,319.1 - - 9,101.0 9,319.1 PBITDA 1,311.5 1,441.8 (135.5) - 1,447.0 1,441.8 - Depreciation and amortisation (358.8) (356.3) - - (358.8) (356.3) PBIT 952.7 1