Amcor Plc · NYSE:AMCR
Amcor — Investor Day (June 2017)
48 slides from Amcor's investor day presentation, June 2017
Slide 1: Amcor Rigid Plastics Specialty Containers
Amcor Rigid Plastics Specialty Containers June 2017
Slide 2: Agenda
Agenda 02 1 Safety briefing 2 Key messages 3 Safety Performance 4 Strong Position 5 Attractive Segments 6 Substantial Growth 7 Summary
Slide 3: Key Messages
Amcor Rigid Plastics - Specialty Containers Key Messages 03 Strong Position Attractive segment With Substantial Growth Potential Well-placed and most extensive rigid plastic Well-known and diversified customer base Amcor focus segment manufacturing footprint in the Americas Good relative growth Leve
Slide 4: Safety Highlights
Amcor Rigid Plastics - Specialty Containers Safety Highlights 04 Injury Rate Trend Days Working Safe 8 7 7.2 6 5 4.6 3.91 4.05 4 3.09 3 2.2 2.02 2 1.2 1.3 1.01 0.88 0.8 1 0.44 1.01 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 RCFR LTFR LTIR – Lost Time Incident Rate RCFR – Recordable Case Frequency Rate
Slide 5: Specialty Containers footprint: 27 North American Plants
Amcor Rigid Plastics – Specialty Containers footprint 05 Tumwater, WA Queensway, ONT 27 North American Plants Brampton, ONT 9 – Specialty Containers Mississauga, ONT Ames, IA Itasca, IL Allentown, PA 15 – Beverage & Specialty Addison, IL Fairfield, CA Millville, NJ Bellevue, OH Jefferson City, MO Ba
Slide 6: Specialty Containers Leadership
Amcor Rigid Plastics - Specialty Containers Leadership A Strong Position 06 Ann O’Hara Debbie Barks VP & GM Executive Assistant Specialty Containers Suresh Krishnan Keith Clark Gary Hoeppner Brian Sullivan Sr. Director, Vice President, Vice President, Vice President, Strategy Operations Finance Spec
Slide 7: Evolution of Specialty Containers
Amcor Rigid Plastics – Evolution of Specialty Containers REVENUES ACQUIRED A Strong Position 07 US$150m US$600m US$110m US$30m US$210m
Slide 8: Plastic Moulders Limited Acquisition
Amcor Rigid Plastics – Plastic Moulders Limited Acquisition Acquisition rationale and integration 08 Generates strong returns Amcor set to grow with new customer and leverage PML’s entrepreneurial spirit and custom injection molding solutions across a broad customer base. Focused product offering, c
Slide 9: Sonoco Acquisition
Amcor Rigid Plastics – Sonoco Acquisition Acquisition rationale and integration 09 Adds US$50m PBIT by end of FY 2020 (including US$20m synergies) Amcor to build on Sonoco’s traditional food business and leverage Sonoco’s service-centric personal care business (speed to market, short runs and strong
Slide 10: Specialty Containers Growth
Amcor Rigid Plastics - Specialty Containers Growth A Strong Position 10 Revenue Growth (million USD$) Wide range of capabilities combined with broad manufacturing footprint 2010-2016 CAGR 15.7% Continued investment in world class platforms, technologies and operations Recognized leader in PET and PC
Slide 11: Attractive Segments – Amcor focus segments share key attributes
Amcor Rigid Plastics - Specialty Containers Portfolio Attractive Segments – Amcor focus segments share key attributes 11 2010 Sales Revenues: US$164M FY17 Post Sonoco Proforma: US$693M* Health care 5% HPC 5% Spirits/ Wine 20% Food Food HDPE 33% 20% End PP End Material 44% Material PET Market 56% Hea
Slide 12: Attractive Segments
Amcor Rigid Plastics - Specialty Containers Attractive Segments 12 Product & service differentiation is possible and expected Technology and innovation are keys to success Diversified customer base with broad buying criteria Strong market growth in the sub-segments where Amcor participates
Slide 13: Attractive Segments: Total Market Size and Growth
Amcor Rigid Plastics - Specialty Containers Attractive Segments 13 Total Market Size(1) Forecast Growth (2016-2020) B units CAGR ‘10-’15 “Glass to plastic” conversions are projected Spirits & Wine(1) 1.7 2.3% to continue over the next 5 years. Health & Wellness trends are key growth Food(1) 43.9 1.2
Slide 14: Key Industry Trends and Packaging Trends
Amcor Rigid Plastics - Specialty Containers Trends Attractive Segments 14 Key Industry Trends Underlying Customer Needs Associated Packaging Trends Consistent quality and service - global standards Speed-to-market solutions Total Cost of Global capabilities with local supply and proactive continuous
Slide 15: Market offers acquisition opportunities
Market offers acquisition opportunities Attractive Segments 15 Comp 1 Amcor Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Comp 7 Others Source: ARP DP Internal Research Specialty Containers’ North America sales across end markets in which Amcor participates Amcor sales based on FY16 actual plus full year acqui
Slide 16: Substantial Growth Potential - Strategy
Amcor Rigid Plastics - Specialty Containers Substantial Growth Potential - Strategy 16 Objectives Guiding Principles Outcome Winning sub-segments: High growth Market and trend focus: Rigids adoption Focus on chosen Entry barriers Consumer Goods growth sub-segments consumer goods Customers that value
Slide 17: Innovations
Amcor Rigid Plastics - Specialty Containers Innovations Substantial Growth Potential 17 Food Spirits & Wine HealthCare Home & Personal Care
Slide 18: Key Messages
Amcor Rigid Plastics - Specialty Containers Key Messages 18 Strong Position Attractive segment With Substantial Growth Potential Well-placed and most extensive rigid plastic Well-known and diversified customer base Amcor focus segment manufacturing footprint in the Americas Good relative growth Leve
Slide 19: Flexibles Americas
Amcor Flexibles Americas Investor Presentation June 2017
Slide 20: Agenda
Agenda 02 1 Safety briefing 2 Introduction to Amcor Flexibles Americas 3 AFA South America business update 4 AFA North America business update 5 Innovation agenda
Slide 21: In Case of Fire Alarm
Westin Wheeling evacuation route 03 You’re here In Case of Fire Alarm Keep Calm Follow the instructions given by your host
Slide 22: Agenda
Agenda 04 1 Safety briefing 2 Introduction to Amcor Flexibles Americas 3 AFA South America business update 4 AFA North America business update 5 Innovation agenda
Slide 23: Flexibles Americas safety KPIs: LTIFR, RCFR & IFR
Flexibles Americas safety KPIs: LTIFR, RCFR & IFR 05 RCFR; Dec 16; 6.49 LTIFR; Dec 16; 3.33 IFR; Dec 16; 2.16 FOCUSED ON CHANGING BEHAVIOR Rolling 12 months (Jan 2016 – Dec 2016) incl. Alusa – LTIFR 3.33, RCFR 6.49 ,IFR 2.16 Note: Graph shows IFR calculation based on consolidated data. Starting 1st
Slide 24: Key messages
Key messages 06 Dedicated organization created in Leveraging Amcor’s strengths Solid foundation for continued growth 2015 to focus on the attractive Initial footprint gaps have been Deluxe and Alusa acquisitions were a strong start Americas flexible packaging market addressed with Deluxe and Alusa A
Slide 25: Flexibles Americas footprint
Flexibles Americas footprint 07 11 USA Flexibles Americas 16 plants 6 countries 1 COLOMBIA PERU 1 1 BRAZIL CHILE 1 1 ARGENTINA
Slide 26: Experienced Americas leadership team
Experienced Americas leadership team 08 Tom Cochran President Amcor Flexibles Americas Tracy Scott Brad Herbolsheimer Jehanzeb Noor Alex Zalesky Chris Cosgrove Daniel Sula Vice President VP & GM VP & GM, Healthcare NA VP & GM Vice President General Counsel Manufacturing Flexibles North Global Commer
Slide 27: Continued growth: Where we've been, recent acquisitions
Flexibles Americas Continued growth 09 Where we’ve been… Recent acquisitions… After the creation of the business group, Amcor Flexibles Americas has expanded significantly through acquisitions and continues to actively seek strategic growth opportunities within attractive packaging markets in its re
Slide 28: Flexibles Americas market position
Flexibles Americas market position Significant opportunity to accelerate growth in the Americas region 10 Global flexible packaging sales by geography Leading producers: North America Amcor Comp 1 Comp 2 Comp 3 Comp 4 Others Americas Leading producers: South America Asia Europe Amcor Comp A Projecte
Slide 29: Flexibles Americas sales by production source & end market
Flexibles Americas sales by production source & end market 11 Balanced production footprint to serve Attractive mix of end markets customers’ needs South America 42% North America 58% Other 17% Food 38% By Production By End Market Source Healthcare 45%
Slide 30: Profitable Growth: A focused strategy
Flexibles Americas A focused strategy 12 Through innovation, simplification and customer focus, we’re going to significantly grow sales and PBIT to develop a strong leadership position in flexible packaging in the Americas Objectives Guiding Principles Outcome Smart investments We’re expanding our f
Slide 31: Agenda
Agenda 13 1 Safety briefing 2 Introduction to Amcor Flexibles Americas 3 AFA South America business update 4 AFA North America business update 5 Innovation agenda
Slide 32: Flexibles South America sales by production source & destination
Flexibles South America sales by production source & destination 14 Multiple production sites… …to serve all key markets in Latin America Brazil Peru Mexico & Other Peru Colombia Colombia By Production Brazil By Destination Source Argentina Argentina Chile Chile Source: Internal financials as of H1-
Slide 33: Alusa Update
Alusa Update An ambitious growth agenda based on synergies, innovation, and customer focus 15 Meeting our objectives… …through an aggressive integration plan Opportunity to become #1 player in South America with a platform for regional growth Align the Organization - supported by Alusa’s strong capa
Slide 34: Agenda
Agenda 16 1 Safety briefing 2 Introduction to Amcor Flexibles Americas 3 AFA South America business update 4 AFA North America business update 5 Innovation agenda
Slide 35: Flexibles North America footprint and sales by end market
Flexibles North Americas footprint 17 AFA sales by end market HPC Other Produce ASHLAND, MA Medical Devices MADISON, WI MILWAKEE, WI MOUNT HOLLY, NJ Food YUBA City, CA MUNDELEIN, IL HAGERSTOWN, MD Converters SHELBYVILLE, KY COMMERCE, CA ASHEVILLE, NY Hospitals Pharma Flexibles North America CIDRA, P
Slide 36: North America packaging trends
North America packaging trends 18 Overall flexible packaging …and consumers are Aging demographics to drive Many products in Amcor’s demand is growing… showing preference for high- growth in pharma, medical, and portfolio are already value add packaging, hospital packaging positioned to address thes
Slide 37: Market trends create growth opportunities
Market trends create growth opportunities 19 End use segment Product platforms PBIT% PBIT% Growth % Growth % For example: For example: • Ambient Meals • HPC • Blister Webs • Lidding Laminates • Cereals • Medical • Breather Bags • Low Barrier Laminates • Coffee & Tea • Pet Food • Die Cut Lidding • Me
Slide 38: Flexibles North America business unit executive summary
Flexibles North America business unit Executive summary 20 Where to Play AFA sales by end market Customers: Strengthen relationships with key customers in fast moving consumer segments and expand global key account relationships for food packaging applications HPC Other Segments: Focus on segments o
Slide 39: Fresh produce: Amcor Flexibles Yuba City and Hagerstown
Fresh produce: Amcor Flexibles Yuba City and Amcor Flexibles Hagerstown 21 Packaging Formats Deluxe Packages acquisition strengthens Amcor’s position in attractive growth regions & segments Bagged Salads Salad Tray Bagged Bagged Lidstock Fruit Vegetables Growth opportunities in fresh produce… Growth
Slide 40: Healthcare North America business unit executive summary
Healthcare North America business unit Executive summary 22 AFA sales by end market Where to Play Customers: Deepen relationships with North American medical device and sterile fluid HPC Other manufacturers Produce Segments: Focus on segments where Amcor can capitalize on its innovation and vertical
Slide 41: Growing our share of the North American flexible packaging market
Growing our share of the North American flexible packaging market 23 Leveraging Amcor’s … to achieve further strengths… growth through: Technology and product Local production to stimulate portfolio to meet consumer broader segment participation expectations Providing attractive value Experience in
Slide 42: Agenda
Agenda 24 1 Safety briefing 2 Introduction to Amcor Flexibles Americas 3 AFA South America business update 4 AFA North America business update 5 Innovation agenda
Slide 43: Innovation focus areas / customer needs
Amcor Flexibles Americas’ innovation focus areas & capabilities 25 Innovation focus areas / customer needs Total Cost of Differentiation Product Safety Sustainability Ownership
Slide 44: Innovation capabilities
Amcor Flexibles Americas’ innovation focus areas & capabilities 26 Innovation capabilities Manufacturing & Design Material Science Processes
Slide 45: Adding value through innovation: Fortis and recycled pouches
Adding value through innovation 27 Amcor Fortis® sterile barrier packaging Pouches from post-consumer recycled material (in development) Amcor’s patent pending bag addresses our medical device customers’ Amcor is pushing the limits of recycled and monofilm content for performance and cost needs. A d
Slide 46: Adding value through innovation: StayClean and AmPaper
Adding value through innovation 28 Amcor StayClean™ for drug ampules AmPaper Amcor’s StayClean product has been developed to target the AmPaper lacquer is a specific coating added to the surface of the packaging packaging of highly sensitive Pharmaceutical products that otherwise to allow for a tact
Slide 47: Becoming the Americas leader in flexible packaging
Becoming the Americas leader in flexible packaging 29 11 USA Leveraging Amcor’s … to achieve strengths… growth through: Long-term, wide-ranging relationships Targeted investments with multi-national companies 1 COLOMBIA New products to meet local needs Global product offering Bolt-on M&A Innovation
Slide 48: Summary
Summary 30 Amcor Flexibles Americas was created to focus on growth in the Americas, where Amcor has significant opportunity to grow We’re off to a good start with the Deluxe and Alusa acquisitions and are generating meaningful organic growth from legacy operations Amcor Flexibles Americas will conti