Amcor 2017 Full Year Results 22 August 2017 Ron Delia Managing - PDF document

Amcor 2017 Full Year Results 22 August 2017 Ron Delia Managing Director & CEO Michael Casamento CFO Disclaimer Forward looking statements readers are cautioned not to place conditions of the major markets in uses these measures to assess the undue reliance on such forward looking which Amcor operates. performance of the business and This presentation contains forward- statements. believes that the information is useful to looking statements that involve These forward looking statements investors. Non-IFRS information, subjective judgment and analysis and In particular, we caution you that these speak only as of the date of this including underlying earnings and are subject to significant uncertainties, forward looking statements are based presentation. Subject to any continuing average funds employed have not risks and contingencies, many of which on management’s current economic obligations under applicable law or any been audited but have been extracted are outside the control of, and are predictions and assumptions and relevant stock exchange listing rule. from Amcor’s annual financial report. unknown to Amcor. Forward-looking business and financial projections. Amcor disclaims any obligation or statements can generally be identified Amcor’s business is subject to undertaking to publicly update or revise Full year results available by the use of forward-looking words uncertainties, risks and changes that any of the forward looking statements information such as “may”, “will”, “expect”, “intend”, may cause its actual results, in this presentation, whether as a result Amcor has today released a package “plan”, “seeks”, “estimate”, “anticipate”, performance or achievements to differ of new information, or any change in of information relating to its financial “believe”. “continue”, or similar words. materially from any future results, events conditions or circumstances on results for the full year ended 30 June performance or achievements which any statement is based. No representation, warranty or 2017. Information contained in this expressed or implied by these forward- assurance (express or implied) is given Non-IFRS information presentation should be read in looking statements. The factors that or made in relation to any forward conjunction with information contained Results shown refer to underlying may affect Amcor’s future performance looking statement by any person in the associated News Release and results unless otherwise indicated. include, among others: (including Amcor). In addition, no Webcast, available at www.amcor.com Underlying earnings is defined and representation, warranty or assurance • Changes in the legal and regulatory reconciled on slide 22. (express or implied) is given in relation regimes in which Amcor operates; Certain non-IFRS financial information to any underlying assumption or that • Changes in behaviour of Amcor’s has been presented within this any forward looking statements will be major customers; presentation. This information is achieved. Actual future events may • Changes in behaviour of Amcor’s presented to assist in making vary materially from the forward looking major competitors; appropriate comparisons with prior statement and the assumptions on • The impact of foreign currency periods and to assess the operating which the forward looking statements exchange rates; and performance of the business. Amcor are based. Given these uncertainties, • General changes in the economic 2 1

Safety Lost time frequency rate Recordable case frequency rate 1.80 8 Acquired businesses Acquired businesses 1.6 7.4 1.60 Legacy businesses Legacy businesses 7 1.40 6 1.2 5.1 1.20 5 1.00 0.9 0.9 4.1 4.0 0.8 0.8 4 3.4 0.80 0.7 0.6 0.6 2.6 3 2.4 0.5 0.60 2.0 2.0 2.0 0.40 2 0.5 0.5 1.9 1.7 0.20 1 0.00 0 2008 to 2012 data includes the demerged Orora business. 2008 to 2012 are shown inclusive of Orora. Total rates for 2015 and onwards includes acquired businesses from the first day of ownership Committed to our goal of ‘no injuries’ 3 Highlights (1) Underlying earnings unless otherwise indicated • Strong full year result • PBIT up 9% and EPS up 10% • Strong cash flow and balance sheet • Annual dividend increased to 43.0 US cents • Continued progress on strategic priorities and investments • Underpins >$100 million of PBIT growth over the next three years, in addition to organic growth and further M&A • Substantial growth opportunities across all business groups • Expecting another strong year in 2017/18 Strong full year result reflects solid progress against strategic priorities and benefits achieved from a range of growth levers in multiple regions 1. Throughout this document, references are to underlying earnings unless otherwise indicated. Earnings growth presented on a comparable basis. Refer to slide 22 for further information, including a reconciliation of statutory earnings to underlying earnings. 2

Full year results (1) • Strong PAT growth of 9.6% Constant currency US$ million � % Constant � � � Jun 16 Jun 17 ongoing • Continued margin expansion currency operations � % � � % � � � � � • Strong returns of 20.4% Sales revenue 9,421.3 9,101.0 (3.4) (2.0) 4.4 PBIT 1,055.3 1,088.2 3.1 4.8 8.6 • Strong cash flow and balance sheet PBIT margin (%) 11.2 12.0 0.8 PAT 671.1 701.2 4.5 6.6 9.6 • Net debt / PBITDA 2.7 times EPS (US cents) 57.7 60.6 5.0 7.1 10.1 • EBITDA interest cover of 7.8 times Free cash flow 311.2 245.3 Return on funds employed (%) 21.6 20.4 • Annual dividend of 43.0 cents per Annual dividend (US cents) 41.0 43.0 share Solid financial and operating performance 1. References are to underlying earnings unless otherwise indicated. Earnings growth presented on a comparable basis. Refer to slide 22 for further information, including a reconciliation of statutory earnings to underlying earnings. 5 Balanced growth across multiple dimensions (1) Sources of PBIT growth Segment PBIT - growth rate Market PBIT - organic growth rate (2) 4% 4% 9% 9% 7% 8% 5% 5% 1% Acquisitions Organic growth Total growth Venezuela Reported Flexibles Rigid Plastics Developed Markets Emerging Markets ongoing growth ongoing operations ongoing operations operations Multiple sources of growth by type, segment and market (1) Constant currency underlying earnings growth. Growth for the Rigid Plastics segment and Emerging Markets presented on a comparable basis and have been adjusted to exclude US$40 million related to elimination of Amcor’s exposure to Venezuela. (2) Excludes AMVIG and Corporate costs. 6 3

Flexibles segment • Strong constant currency PBIT growth Constant currency Euro million Jun 16 Jun 17 Reported � � % � � � % � � � • Alusa acquisition contributed €30 million Sales revenue 5,466 5,716 4.6 4.4 (US$32 million) to earnings growth PBIT (1) 681.2 738.8 8.5 8.2 • Organic growth PBIT margin % 12.5 12.9 Average funds employed 2,643 3,029 • Restructuring benefits of US$15 million (€14 million) at upper end of expected range Return on funds 25.8 24.4 employed % (1) • Total benefits increased to US$50 to US$60 million • Flexibles sales growth in Asia, North America and Europe Operating cash flow 758.9 792.4 • Tobacco Packaging customer destocking in Europe and weak market conditions in Asia Strong PBIT growth benefiting from both acquisitions and organic growth 1. References are to underlying PBIT. Refer to slide 22 for further information, including a reconciliation of statutory earnings to underlying earnings. 7 Flexibles full year outlook for 2017/18 In constant currency terms, the Flexibles segment is expected to deliver another year of strong PBIT growth in the 2017/18 financial year, compared with PBIT of €738.8 million achieved in the 2016/17 year. This outlook takes into account: • incremental restructuring benefits of approximately US$25 million to US$30 million (approximately €23 million to €28 million) • incremental net synergy benefits of US$10 million to US$15 million related to the Alusa acquisition. This amount is net of integration costs; and • modest organic growth across the Flexibles segment In the first half of 2017/18, earnings will be impacted by integration costs of approximately US$5 million related to the Alusa and Hebei Qite businesses, and will also be dependent on raw material cost development, including the timing of recovering higher raw material costs experienced in the fourth quarter of 2016/17 8 4