Amcor Plc · NYSE:AMCR
Amcor — Amcor Investor Conference, Edinburgh 2001
28 slides from Amcor's conference presentation, October 2001
Slide 1: Amcor Investor Conference, Edinburgh, October 2001
AMCOR INVESTOR CONFERENCE Edinburgh October 2001
Slide 2: Focused Strategy
GLOBAL FOCUSED STRATEGY PACKAGING COMPANY Rationalise & Demerge Divest non Improve restructure paper and core assets returns on-going packaging businesses
Slide 3: 170 Plants, 29 Countries, 23,000 Employees
170 Plants 29 Countries 23,000 Employees Asia 5% Sales $7 billion The Americas Europe 30% Major Products 33% Segments Aust & NZ • PET 32% • Flexibles • Tobacco Cartons • Distribution EBIT BREAKDOWN • Corrugated
Slide 4: 11.3% WACC
% 16 15.0 14 13.2 12.5 11.3% WACC 11.3 12 10.0 10 9.6 8 6 4 2 0 1997 1998 1999 2000 2001
Slide 5: Cash generation to fund growth internationally
Predictable High market Geographic Low cost returns shares spread Strong cash generation Strong Beverage & Flexible relationships Corrugated Cartons with global Food Cans Plastics customers … cash generation to fund growth internationally
Slide 6: Beverage Cans, Sacks, Food Cans
% Beverage Cans 65 Sacks 65 Food Cans 50 Corrugated Boxes 47 Folding Cartons 40 Closures 40 Flexible Plastics 30 Glass - Wine
Slide 7: Consistent growth and superior returns
Significant Higher levels Geographic growth Strong underlying of technology expansion and opportunities and common growth innovation customers Meet customers’ needs in more products and Flexible Tobacco Plastics Cartons PET Distribution locations … consistent growth and superior returns
Slide 8: New Industry Leaders Emerge
Increased Size and New Industry Leaders Emerge Market Strength Interest Need to Overcapacity From Customers Focus on in the Investors and Suppliers Specific Packaging Growing Consolidated Market Industry Segments
Slide 9: Need to create long-term sustainable advantage
Rationalisation & Restructuring 1998 2000 Growth Phase 1999 Product Leadership 2001 Need to create long-term sustainable advantage
Slide 10: Growth, Customer intimacy, Product Leadership
Growth • Customer • New Products intimacy to markets • Scale to • Margin undertake Enhancement projects Product Leadership Continuous cycle to improve market position
Slide 11: Newness to Company
High New New to the 20 10 Product % % World Products Lines Newness to Company Improvements Additions to to Existing 28 26 Existing Products % % Product Lines Cost 11 7% Re-positioning Reductions % Low Low High Newness to Market Source: Booz - Allen & Hamilton
Slide 12: Operational Excellence, Differentiate through innovation
Operational Excellence Differentiate through innovation Product Customer Leadership Intimacy
Slide 13: A culture for product leadership will be developed
• A culture for product leadership will be developed • Key metrics will be introduced and reported to the Board and shareholders • Internal disciplines established to deliver on our goals
Slide 14: Europe, North America, Asia, Australasia sales
Europe Asia Sales $2 B Sales $15 M North Holland America Belgium Germany China Sales $20 M Spain Poland Italy USA Portugal Finland Sweden Denmark UK Norway Switzerland Australasia France Sales $300 M Australia New Zealand Plants 51 Global Sales $2.4 B
Slide 15: Europe's leading flexible packaging company
Amcor Danisco Ahlstrom 67% 25% 8% Europe’s leading flexible packaging company • Sales A$2 billion • 40 plants • 14 countries
Slide 16: Consolidating Industry
$2 billion Amcor Alcan Viag-Vaw Pechiney CONSOLIDATING Constantia Teich INDUSTRY Huhtamaki-Van Leer Sealed Air Rexam 0 200 400 600 800 1000 1200 1400 1600 1800 2000 A$
Slide 17: Business on track to achieve stated financial returns by year three
Completed 100 No negative day plan surprises Business on track to achieve stated financial returns by year three • 15% PBIT/AFE • 7.5% PBIT/Sales margin
Slide 18: Four plants to close
• Four plants to close • Three other plants significantly rationalised Reduction of up to 15% in employee numbers
Slide 19: Volumes remain very good
• Volumes remain very good – 90% into food and beverage industries • Price increases being implemented – Selective increases • Volume loss through plant rationalisation and price increases less than 10%
Slide 20: $70 million synergy benefits over three years
• $70 million over three years and $28 million in the first year • Raw material purchasing – solid benefit expected • Scope for further improvements in synergy benefits
Slide 21: Distribution
• Distributes wide range of packaging and related industrial products – Corrugated Boxes – Tapes, Protective Packaging Distribution • Consistent growth over ten Sales A$ 1.7 billion years 40 Distribution • Strong growth opportunities centres 1,068 Employees
Slide 22: Leverage technical expertise and purchasing power
Leverage technical expertise and purchasing power Amcor PET Packaging Bericap - NA CNC Plastiglas (strategic alliance) Amcor Injepet Sales A$800 mill
Slide 23: Europe, Asia, Australasia sales
Europe Sales $460 M France Asia Switzerland Sales $140 M Poland China Germany Singapore Spain Malaysia Portugal Russia Ireland Australasia Plants 16 Sales $ 35 M Global Sales $635 M People 1900
Slide 24: PBITA and PBIT results
2000 2001 PBITA $m 464 542 +17.8% PBIT $m 428 500 +17.0% PAT $m 218 238 +9.5% EPS c 34.5 38.0 +10.3% PBIT/AFE % 12.5 13.2
Slide 25: KCA was a non-core asset
• KCA was a non-core asset • Price of $775 represents an historic multiple of 19 times PAT – Book value $163 million – Minimal tax payable (around $25 mill) • Flexibility to realise proceeds over two years
Slide 26: Consistent growth, low volatility
Consistent 80% Sales Geographic Raw material growth Food & prices passed Spread Beverage through Low volatility in earnings PET 32% Australia No one Tobacco customer 30% Americas Board more than 33% Europe 4% sales Aluminium 5% Asia Linerboard
Slide 27: A global leader delivering superior returns
Strict financial Growth A global Clear Strategy criteria opportunities leader delivering superior returns and CNC Glass Plant European consistent Acquisition Flexibles growth
Slide 28: Amcor Investor Conference
AMCOR INVESTOR CONFERENCE Edinburgh October 2001