AMCOR PLC — AGM Information 2007

Oct 23, 2007

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AMCOR LIMITED ANNUAL GENERAL MEETING WEDNESDAY, OCTOBER 24, 2007

MANAGING DIRECTOR’S ADDRESS

In August 2005, we announced a three year business improvement program, called ‘The Way Forward’. As Chris has already outlined, there has been considerable progress made on this agenda over the past 12 months. This morning, I will concentrate most of my presentation on updating the progress around ‘The Way Forward’ agenda. I will then give a brief summary of last year’s financial performance and finish with an overview of trading for the first quarter and the outlook for the full year.

At the 2005 Annual General Meeting, I laid out the key elements around the execution focus for ‘The Way Forward’ .

These are:

• Ensuring businesses have strong market positions;

• Building customer and market facing capabilities;

• Continuing to focus on lowering costs; and

• Developing processes to ensure a disciplined use of capital.

These priorities, together with the recognition of the need for cultural change, were developed by the senior management team two years ago.

The Way Forward is, in effect, a three year “get fit” program and two years into the program, I am pleased to report, that there has been substantial progress across all elements of the agenda.

I would now like to go through a few of the key components of ‘The Way Forward’ agenda in more detail.

Starting with strong market positions. The objective for all businesses going forward is to have strong positions in their markets through combinations of growth, market share and industry structure, as well as their ability to differentiate through technology and/or cost position.

Where this is not the case, the decision has been made to either fix, sell or close the business.

Amcor Limited ABN 62 000 017 372 679 Victoria Street Abbotsford Victoria 3067 Australia Tel: 61 3 9226 9000 Fax: 61 3 9226 6500 www.amcor.com

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For those businesses that have strong market positions, we want to accelerate their growth.

These growth areas have been identified. They are custom PET containers, Flexibles and Tobacco Packaging in emerging and attractive markets and select segments in Australasia.

Over the past year there have been a number of developments in the growth of our core businesses.

In the custom PET segment, the 80 million US dollar hot-fill technology plant in Wytheville, Virginia, commenced operations in April. This is a dedicated facility for PepsiCo and is located adjacent to their new Gatorade filling plant. It is the world’s largest and most efficient manufacturing site for this technology, with capacity of over one billion units per year.

In the tobacco packaging market, a new plant in the Ukraine is under construction and is expected to commence operations in November.

In the flexibles packaging business, a new €30 million plant is being constructed in Poland. The facility is dedicated to PepsiCo for their snack food packaging and is expected to be operational in May 2008.

The flexibles plant in Russia has doubled its capacity with the installation of a press relocated from a plant recently closed in the United Kingdom.

Finally, there has been the investment in the Hong Kong publicly-listed company, AMVIG. Since Amcor’s participation, AMVIG has developed into the largest tobacco packaging company in China with 11 manufacturing sites and a 17% market share of what is the largest tobacco packaging market in the world.

Over the past two years, Amcor has committed around $350 million to accelerated growth projects in the nominated market segments and there is a pipeline of additional opportunities currently being evaluated.

Another important component of the portfolio review is the divestment program.

For those businesses where Amcor did not have a strong market position and the prospect for improvement was limited, the decision was taken to sell the business.

Over the past two years there have been divestments amounting to $1.25 billion, including the sale of the European PET operations for €425 million and the Australasian Food Can and Aerosol business for $150 million.

Although the divestment program, as it was originally envisaged in August 2005, is now complete, the company will continue to review its portfolio of businesses with the objective of improving shareholder value.

The final element of the portfolio review has been to fix those businesses that have good market positions, but have had poor operational performance.

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In Mexico, the PET Packaging business is undertaking a two year, US $16 million operational improvement program. In the first year of this program, earnings increased by US $9 million and the business is on track to deliver the US $16 million turnaround.

The European Flexibles business is undertaking the second phase of a major restructuring of its operations. Last year, plants in Germany and the UK were successfully closed, both ahead of schedule and on budget. In April this year, the second phase of the restructuring program was announced. It is expected to have a net cash cost of €60 million and to deliver benefits of €30 million per annum.

The primary objectives of the Flexibles restructuring program are to:

• Strengthen market positions through better leverage of technology and manufacturing capabilities;

• Increase our weighting in the lower cost regions, particularly in Southern and Eastern Europe;

• Improve the alignment to customer needs and market trends; and

• Create a strong platform for innovation and continued growth.

Finally, the Australasian Fibre business is undertaking a comprehensive $300 million recapitalisation and restructuring program. Over the past 12 months there has been considerable progress across the program with a number of plants closed, a substantial headcount reduction, significant capital investment in new equipment and the relocation of machines from those plants closed to the remaining sites.

The ambitious pace of activity over the past year resulted in some slippage in operational efficiencies and customer service levels. This had a negative impact on earnings in the 2006/07 year and some loss of volume with smaller customers.

However, these issues are now largely behind the Fibre business and it is anticipated that the cost reductions forecasted of $40 million per annum, will be reflected in the second half run rate.

Another important component of ‘The Way Forward’ agenda is capital discipline.

Put simply, this is about improving the management of the cash flow and balance sheet to deliver improved performance for shareholders. The clear priorities are capital expenditure, working capital and the structure of the balance sheet.

We look at our capital spending from two perspectives.

The first is base capital. This is the “stay in business” spend for the existing asset base and is targeted to be approximately equal to the annual depreciation expense. Spending at this level is sufficient to continually rejuvenate the existing asset base as well as deliver growth of around GDP.

Any spending beyond the base capital is truly discretionary and will be targeted only on those markets which have strong underlying growth and where Amcor has

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an advantaged position. These markets are custom PET containers, Flexibles and Tobacco Packaging in emerging and attractive markets and select segments in Australasia.

Working capital is another critical element of the capital discipline program.

For the 2006/07 period, the movement in working capital was a decrease of $257 million and over the past two years there has been a reduction in working capital of $380 million.

This represents a reduction in the average working capital to sales ratio over the same two year period from 13.3% to 9.9%. This is a significant improvement over the historic performance of Amcor.

The result of improved discipline in both capital expenditure and working capital helped deliver a positive operating cash flow of $644 million.

After the dividend of $319 million, there was a positive free cash flow of $325 million. This is the second consecutive year of strong free cash flow and it is our aim to have a positive free cash flow again this year.

The final elements of ‘The Way Forward’ agenda relate to our cultural change program.

People are our most valuable resource and processes have been implemented to better calibrate performance and potential to ensure the benefits from improved operational execution and enhanced market positions are retained.

Since initiating this talent management process 18 months ago, of the top 77 positions in the company, 44 people are new to their role of which 21 have been external appointments and 23 have been internal promotions.

Moving now to the full year results.

Although full year earnings in 2006/07 were down 2%, there was a strong improvement in the second half of the year with earnings for that period up 11%.

This marked a turning point for the company as the benefits from ‘The Way Forward’ agenda began to be reflected in improved earnings and returns and this trend is expected to continue in the current year.

The highlight for last year was the strong cash flow of $644 million and represents the second consecutive year of excellent cash generation.

It is the company’s focus to deliver strong operating cash flow as we improve earnings and returns.

Discussing now, the key issues relating to each of the business units.

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The PET operations had a good year, with profit before interest and tax, up 12.4% to US $206 million.

The business continues to focus on growing the higher value, more technically demanding hot-fill segment. Demand in this segment is being driven by growth in health and wellness beverages and for the year volumes were 7% higher, with 18% growth in the second half.

In Latin America, overall volumes were 4% higher and custom containers were up 8%.

A key focus for the year was the restructuring programs in Mexico and Brazil. As I mentioned previously, the program in Mexico is on schedule to deliver a US $16 million improvement over two years and in Brazil, earnings are expected to improve in the second half of the current year.

Turning now to Australasia.

The overall profit before interest and tax was down 15%. This was the only business group in our global portfolio that did not show year on year improvement.

The Australasian business is made up of both fibre and non-fibre packaging businesses.

Although the non-fibre operations of glass, flexibles and rigids had another solid year, this good performance was more than offset by a difficult year in the fibre operations.

Volumes in the fibre operations in Australia were down 4%. Approximately three quarters of this volume reduction was due to seasonal factors in the fruit and produce segment, more specifically, Cyclone Larry in Queensland, severe frosts in the Goulburn Valley in Victoria and ongoing drought conditions nationally. There was also a modest loss of market share with smaller customers due to the service issues created by the implementation of the turnaround plan.

With the turnaround program now largely complete these service issues have been addressed.

Moving now to the Flexibles business, this business consists of the food and healthcare operations, as well as tobacco cartons.

Earnings for the year were up 1.5%, however similar to the PET packaging business, the Flexibles operations had a good finish to the year with earnings 11% higher in the second half.

In the first half of the year, rising input costs were particularly difficult to recover as they were occurring at a time when oil prices were falling. This resulted in some under-recovery of cost increases for that period. In the second half of the year the input cost environment was more benign and this was a positive contributor to improved earnings.

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Amcor Sunclipse had a solid year with increased earnings and returns. After a strong first half with earnings up 19%, the second half was more challenging, with reduced demand in a number of market segments.

Amcor Asia consists of three wholly-owned flexible packaging plants and two wholly-owned tobacco carton plants. It also has responsibility for Amcor’s investment in the Hong Kong publicly listed company AMVIG. Amcor currently owns 42% of AMVIG, however this will reduce to 33.4% following the completion of AMVIG’s acquisition of the third player in the market, Brilliant Circle.

Last year, the wholly-owned tobacco and flexibles operations delivered continued improvements and the flexibles plant in Southern China was successfully relocated to a new site to better enable future expansion of that business.

AMVIG delivered a 56% increase in earnings for the year reflecting the strong ongoing growth in its operations.

Outlook

Turning now to the first quarter’s trading and the outlook for the balance of the year.

For each of the business units, the operating performance for the first quarter has been consistent with the outlook comments made at the full year results announcement in August.

The PET Packaging operations have had a solid start to the year with volumes higher than the same period last year. The full year outlook is for the continuing operations to deliver a strong improvement in profit, in local currency terms.

In Amcor Australasia, the non-fibre businesses continue to perform well, while in the fibre operations, the benefits from the restructuring program are starting to be realised. It is anticipated that the run-rate of $40 million per annum in cost reduction will be achieved in the second half of the 2007/08 year. However, we remain concerned about the ongoing soft volumes in the important fruit and produce sector.

In the flexibles business, the healthcare and food operations have had a solid start to the year. The tobacco packaging operations have been overtrading, with volumes exceeding expectations. Unfortunately, this has resulted in higher costs and plant inefficiencies which have had a negative impact on results. As the year progresses, this situation will improve, especially once the new plant in the Ukraine commences operations.

In Flexible packaging, raw material input costs have continued to increase since June and are now at record highs. These costs are expected to stabilise at current levels provided the oil price does not increase further.

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Notwithstanding the higher raw material input costs and overtrading in tobacco packaging, it is anticipated that full year earnings in the flexibles business, expressed in local currency terms, will be higher.

Amcor Sunclipse has had a solid start to the year. Although overall activity is generally lower than for the same period last year, this is being offset by ongoing operational improvements. Should the current level of economic activity be maintained for the balance of the year, it is anticipated that local currency earnings will be higher.

In Amcor Asia, the wholly-owned tobacco carton and flexibles packaging operations have had a solid start to the year and full year earnings are expected to be higher.

In summary, the first quarter earnings for each of the business units are at or ahead of the same period last year, expressed in local currency terms, and on a continuing business basis. For the full year it is anticipated that this trend will continue.

All of my outlook comments on the business units have been based on local currency terms.

The actual reported profit, expressed in Australian dollar terms, will depend on the translation of the overseas earnings into Australian dollars.

The sensitivity to reported earnings due to the translation impact of the higher Australian dollar on the reported profit after tax, is approximately $3 million for every one cent movement against the US dollar and approximately $2 million for every one cent movement against the euro.

Last year the average exchange rate against the US dollar was 79 cents and 60 cents against the euro. For the first three months of the current year, the average has been 85 cents against the US dollar and 62 cents against the euro. The current exchange rate against the US dollar is 90 cents.

Should the current US dollar rate of 90 cents and euro rate of 63 cents continue for the balance of the year, it is anticipated that the negative foreign currency translation impact on profit after tax earnings will be around $35 million.

To conclude, there are a number of key messages to leave you with today.

The first is that Amcor is changing and this is evident in the 2006/07 results.

The benefits from reinvestment in the nominated growth segments, which have largely been organic, are now being realised.

Following the divestment program, Amcor’s portfolio is more focused on those market segments where we can win.

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The three turnaround programs are in various stages of completion, however we are confident that the cost reductions and operational improvements anticipated will be realised.

The disciplines around all aspects of capital expenditure and cash flow are continuously improving and the benefits are evident in the results over the past two years.

The culture is changing. There has been important progress in talent management and these changes will help underpin the sustainability of improvements in all the other areas.

The second half of 2006/07 year was a turning point for the company with the efforts of the past two years being translated into improved earnings.

For the current year there has been solid performance in the first quarter with all segments at or ahead of the same period last year on a local currency and continuing business basis. It is anticipated that this improving trend will continue across all the business units for the balance of the year.

Ken MacKenzie MANAGING DIRECTOR

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