AMCOR PLC — Annual Report 2007

Aug 28, 2007

For immediate release:

Wednesday, August 29, 2007

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RESULTS FOR 12 MONTHS ENDED JUNE 30, 2007

• Amcor announces a profit after tax and before significant items of $397.0 million.

• Operating cash flow, including the cash component of significant items and movement in working capital, of $644 million.

• The final dividend remains steady at 17 cents per share giving a full year dividend of 34 cents per share.

• Free cash flow of $325 million, after the dividend payment.

• An on-market share buy-back of $350 million.

• Profit after tax and significant items up 52% to $534 million.

AUD (mill) – AllOperations		2006		**2007 **		% Change
Sales		11,439.3		10,875.2		(4.9)
PBITDA		1,249.1		1,198.9		(4.0)
PBIT		775.7		731.9		(5.6)
PAT~~(2)~~		405.9		397.0		(2.2)
Significantitems~~(1)~~		(54.6)		136.7		350.4
PATaftersignificantitems		351.3		533.7		51.9
EPS~~(2)~~ (cents)		46.1		44.2		(4.1)
Operating cash flow~~(3)~~		522.3		643.9		23.3
Dividend (cents)		34.0		34.0		-

(1) Significant items for the current year relate mainly to the gain on disposal of the European PET Packaging business, partially offset by the Fibre Packaging Australasia recovery plan, the Flexible market sector rationalisation and asset impairments.

(2) Before significant items (3) After significant items

Key Ratios (AllOperations)		2006		**2007 **
PBIT/Averagefunds employed (%)~~(2)~~		11.3		11.3
Returnonaverage equity (%)~~(2)~~		11.7		11.2
Net debt / (Net debt plus equity) (%)~~(1)~~		46.4		44.6
NetPBITDA interest cover(times)~~(2)~~		5.1		5.6
NTApershare (AUD)		2.09		2.29

(1) All hybrids treated as debt. (2) Before significant items

Amcor Limited ABN 62 000 017 372 679 Victoria Street Abbotsford Victoria 3067 Australia Tel: 61 3 9226 9000 Fax: 61 3 9226 9050

www.amcor.com

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Segmental Analysis (Before Significant Items)	Segmental Analysis (Before Significant Items)	Segmental Analysis (Before Significant Items)	Segmental Analysis (Before Significant Items)	Segmental Analysis (Before Significant Items)
		2006			2007
	Sales AUD (mill)	PBIT AUD (mill)	ROAFE (%)	Sales AUD (mill)	PBIT AUD (mill)	ROAFE (%)
Amcor PET Packaging	3,229.8	196.9	9.2	3,064.5	195.4	9.6
Amcor Australasia	2,560.9	262.4	14.2	2,524.2	221.9	11.9
Amcor Flexibles	2,978.6	191.6	12.6	3,008.8	198.5	13.2
AmcorSunclipse	1,292.1	65.1	18.9	1,250.6	63.3	20.7
Amcor Asia	174.5	30.5	16.0	121.9	35.0	9.9
Investments / other	8.6	(42.4)	-	-	(48.2)	-
Intersegmental	(21.7)	-	-	(9.9)	-	-
Continuing operations	10,222.8	704.1	11.7	9,960.1	665.9	10.9
Discontinued operations~~(1)~~	1,216.5	71.6	8.3	915.1	66.0	17.8
TOTAL	11,439.3	775.7	11.3	10,875.2	731.9	11.3
(1) European PET Packagingforthe2006/2007years andWhite CapMetalClosures andAsianCorrugatedfor 2006.

The full year profit was 2.2% lower at $397 million, however the second half profit of $212 million was an increase of 10.7% on the second half of 2005/06.

• PET Packaging had a 35% increase in local currency terms in the second half profit, with solid growth in custom containers, improved earnings in Mexico and strong earnings growth in Europe.

• Flexibles packaging had an 11% increase in local currency terms, in the second half profit, due to improved performance at a number of plants.

• The Australasian glass and rigid businesses both delivered higher earnings for the year; however the Australasian fibre earnings were lower.

• Amcor Sunclipse, the North American distribution operations, had a solid year with returns at 20.7%.

• Amcor Asia had a solid performance with excellent progress in the growth of the 41% owned Hong Kong publiclylisted company, AMVIG.

The translation impact of the higher Australian dollar on the reported profit after tax and before significant items for the year was approximately $4 million. This was most pronounced in the second half of the year, with the impact for that period approximately $5 million.

For 2007/08 the sensitivity of profit after tax to the movement in the Australian dollar due to the translation of overseas earnings into Australian dollars for reporting purposes 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.

‘ The Way Forward’ Agenda

A key component of ‘The Way Forward’ Agenda announced in August 2005, was a review of the businesses to identify growth opportunities and create a more focussed portfolio. Progress over the past twelve months included:

Grow

The targeted growth segments are the custom PET business in North America, flexibles and tobacco packaging in emerging markets and some select segments in Australasia. Specific projects are:

• The new USD 80 million PET packaging plant at Wytheville, Virginia (USA) dedicated to PepsiCo for the manufacture of Gatorade[TM] bottles, which commenced production in March 2007;

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• A new €30 million flexibles packaging plant in Poland, dedicated to PepsiCo for the production of snack food packaging. The plant will be operational in the second quarter of calendar 2008;

• A €12 million tobacco packaging plant in the Ukraine as part of its ongoing expansion in Eastern Europe. This plant is expected to commence operations in November 2007;

• A second press at the flexibles plant in Russia has been installed and commenced operations in August 2007; and

• AMVIG, a Hong Kong publicly-listed company, in which Amcor has a 41% shareholding, announced a major tobacco packaging acquisition in China that will increase its market share in that country to around 17%.

Fix, sell and close

• The sale of the European PET operations for approximately €425 million will be completed by October 2007.

• In April 2007, a major repositioning program was announced for Amcor Flexibles in Europe involving the closure of plants, headcount reductions of around 900 people and the sale of non-strategic operations. The net cash costs are €60 million with benefits of €30 million per year.

• Amcor Flexibles in Europe successfully completed the closure of two plants in Europe, one in the United Kingdom and one in Germany, with over 70% of the volumes transferred to other sites.

• The turnaround program in the Mexican PET business had an improvement in profit of $9 million US for the 2006/07 year and is on schedule to deliver a $16 million US improvement in profit over a two year period.

• The Australasian fibre turnaround program made substantial progress, with four plants closed, key equipment relocated to the remaining sites, and the headcount reduced by 335 people. Cost savings of $40 million per annum to be realised from the second half of the 2007/08 year.

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Consolidated Income Statement
AUD (mill)	2006	**2007 **
Net sales	11,439.3	10,875.2
PBITDA	1,249.1	1,198.9
- Depreciationand amortisation	(473.4)	(467.0)
Profit beforeinterest and tax	775.7	731.9
- Netinterest (ex PACRS)	(188.8)	(197.7)
- PACRSinterest	(57.8)	(17.2)
Profit before tax	529.1	517.0
- Income tax	(111.1)	(108.6)
- Minorityinterests	(12.1)	(11.4)
Profit after tax and before significant items	405.9	397.0
Consolidated Cash Flow Statement
AUD (mill)	2006	**2007 **
PBITDA	1,249.1	1,198.9
Interest	(239.6)	(203.5)
Tax	(79.1)	(80.1)
Cashsignificantitems	(26.0)	(106.2)
Base capitalexpenditure	(441.8)	(300.6)
Movementin working capital~~(1)~~	123.2	256.7
Other	(63.5)	(121.3)
**Operating cash flow **	522.3	643.9
Dividends	(308.8)	(319.2)
**Free cash flow **	213.5	324.7
Divestments	264.2	79.6
Growthcapital/ acquisitions	(69.5)	(165.7)
Proceedsfromshareissues	84.8	(310.7)
Foreignexchangerate changes	4.8	(5.7)
Movement in net debt	497.8	(77.8)
~~(1) Movement in working capital relates to continuing operations~~

Consolidated Balance Sheet
AUD (mill)	2006	**2007 **
Current assets	3,196.9	3,394.5
Property, plant and equipment	4,296.8	3,835.4
Intangibles	1,888.4	1,458.7
Investments and otherassets	516.1	453.7
Total assets	9,898.2	9,142.3
Short termdebt	690.4	1,378.6
Long termdebt	2,084.9	1,620.5
Creditors and provisions	3,052.7	2,561.9
Convertiblenotes	464.2	-
Shareholders’equity	3,606.0	3,581.3
Total liabilities and shareholders’ equity	9,898.2	9,142.3

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Final Dividend

The Directors declared an unfranked final dividend of 17 cents per share. 75% of the dividend is sourced from the Conduit Foreign Income Account for the benefit of foreign shareholders. This compares with a final dividend of 17 cents per share, 15% franked at 30 cents in the dollar for the 2005/06 year. The record date for the final dividend is September 13, 2007 and payment date will be October 5, 2007.

Significant Items

Significant items after tax for the year ended June 30, 2007 was a profit of $136.7 million, compared to a loss of $54.6 million in the 2005/06 year.

Significant items after tax for the year related to the profit on the sale of the European PET business of $245.4 million, the profit on sale of K Laser China equity investment of $8.8 million, the Fibre Packaging turnaround expense of $26.5 million, the flexibles market sector rationalisation expense of $36.7 million, the PET Packaging business integration and restructure expense of $3.5 million, asset write-offs related to the above restructuring of $55.0 million and a net gain of $4.2 million related to prior year disposed businesses.

Segmentals

During the year, the consolidated entity did not change its reportable business segments. However, the comparative information for the years ending June 30, 2006 and June 30, 2007, has been restated to report discontinued operations for the divestments of the Amcor White Cap Closures business in flexibles, the European PET packaging business in PET Packaging and the Asian corrugated business in Asia.

During the year, a detailed review of the corporate costs of the consolidated entity was undertaken and it was identified that $34.7 million (2006: $33.4 million) of the total of $82.8 million (2006: $76.0 million) was properly attributable to the results of the operating segments and as such, has been allocated based on relevant cost and service drivers.

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Profit (AllOperations)	2006 **AUD **	2007 **AUD **	% Change	2006 **USD **	2007 **USD **	% Change
Net sales (mill)	4,049	3,980	(1.7)	3,023	**3,131 **	3.6
PBIT(mill)	245.0	261.4	6.7	182.9	205.6	12.4
OperatingMargin(%)	6.1	6.6		6.1	6.6
Averagefunds employed (mill)	2,613	2,404		1,951	1,892
PBIT/AFE(%)	9.4	10.9		9.4	10.9
Average exchangerate	0.75	0.79
Profit (Continuing Businesses)	2006 **AUD **	2007 **AUD **	% Change	2006 **USD **	2007 **USD **	% Change
Net sales (mill)	3,230	3,065	(5.1)	2,411	2,411	0.0
PBIT(mill)	196.9	195.4	(0.8)	147.0	153.7	4.6
OperatingMargin(%)	6.1	6.4		6.1	6.4
Averagefunds employed (mill)	2,140	2,035		1,598	1,601
PBIT/AFE(%)	9.2	9.6		9.2	9.6
Average exchangerate	0.75	0.79
Cash Flow (AllOperations)	2006 AUD (mill)	2007 AUD (mill)	% Change	2006 USD (mill)	2007 USD (mill)	% Change
PBITDA	451.6	465.9	3.2	337.1	366.5	8.7
Base Capital Expenditure	(205.7)	(152.7)		(153.6)	(120.2)
Movementin Working Capital	24.6	177.3		18.4	139.5
Significantitems	(9.0)	(3.7)		(6.7)	(2.9)
**Operating Cash Flow **	261.5	486.8	86.2	195.2	382.9	96.2
GrowthCapital Expenditure	(13.7)	(128.9)		(10.2)	(101.4)

PET Packaging Group

Amcor PET Packaging had a strong year with improved earnings across all regions. Profit before interest and tax (PBIT) was up 12.4% to USD 205.6 million. Returns, measured as PBIT to average funds employed, increased from 9.4% to 10.9%.

The performance in the second half of the year was particularly strong with PBIT up 35.2% reflecting the benefits of the turnaround in Mexico, a strong second half in Europe and growth in custom containers in North America.

Volumes for the year were up 2% to 36.9 billion units. After a decline of 1.4% in the first half, volumes grew by 5.5% in the second half of the year. Custom containers, which account for 21.3% of the total volumes, grew by 7.4% for the year, with second half growth of 15.7%. There was also strong growth across all product segments in Europe.

Significant items before tax was a loss of USD 30.1 million, of which, USD 25.9 million related to the non-cash write-off of fixed assets. These costs are mainly associated with restructuring projects in Latin America, particularly Mexico and Brazil.

Capital expenditure was USD 221.6 million comprising USD 120.2 million in base capital spending and USD 101.4 million in growth capital. The growth capital expenditure included USD 61.6 million for the new plant at Wytheville, Virginia (USA) and the balance was for additional capacity to support growth in the custom business, including PowerFlex[TM] in North America.

Working capital reduced by USD 139.5 million. This was an outstanding result reflecting improvements across all regions, including a particularly strong performance in Europe. Although there is opportunity for further reductions, with a focus on Latin America, there will not be the same magnitude of improvement going forward.

Overall, the business generated an operating cash flow of USD 382.9 million.

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On June 29, 2007, the business reached agreement to sell the European PET business to La Seda de Barcelona S.A. for a consideration of approximately €425 million. This sale is expected to be completed in October 2007.

The tables above show the earnings and returns for the Amcor PET Packaging business with the European PET business included and excluded. The cash flow statement is for all operations including the European PET business.

Energy

Over the past 18 months, the business has moved to include clauses to recover energy cost increases in new contracts and going forward around 70% of volumes, and a higher percentage of sales, are covered for rise and fall in energy costs. Given the contracted volume now covered for movements in energy prices and the outlook for more stable prices in the current market, energy price movements are not anticipated to have a material impact on earnings in 2007/08.

North America

In North America, volumes for the year were steady. This was a strong second half performance given that volumes in the first half were 7% lower.

In the carbonated soft drink (CSD) and water segment, the decision made by a major customer in calendar 2005, to selfmanufacture PET containers from January 2006, resulted in a year-on-year reduction of around 350 million units.

Across the remaining CSD and water businesses, volumes for the year were down slightly, reflecting the ongoing strategy to realign the group’s portfolio towards higher margin business.

In the custom beverage segment, volumes were up 7% for the year and 18% in the second half. This increase was predominately due to the benefits of recent capital investment supporting growth in this market segment.

The new facility in Wytheville, Virginia (USA) supplying hot fill Gatorade[TM] containers to PepsiCo, commenced operations in March 2007. The plant, with a capacity of over one billion units annually, had an excellent start-up and is meeting operational and capacity expectations.

A number of other capital investment projects have been completed throughout the year to support targeted segments in the custom market. These include investments to support growth in the new panel-less heat-set container, PowerFlex[TM] . Currently there are 23 customers using this container for a range of applications, including iced teas and functional waters. Additional capacity is being added to meet the ongoing growth in demand for this patented container.

An important component of the higher earnings has been an ongoing improvement in operational performance, evidenced via enhanced asset utilisation and a continuing focus on operating costs.

The outlook for North America is for substantial growth in the custom hot fill business, driven predominately from the full year benefit of recent capital expenditure. A major component of this growth will come from the new plant at Wytheville, Virginia (USA).

The business will continue to be selective in the opportunities it pursues in the CSD and water markets. Going forward, it is likely that volumes in this segment will decrease as contracts relating to poor returning business will not be renewed and the manufacturing capacity will redeployed.

Latin America

In Latin America, overall volumes were up 4.1% with custom containers up 8.3% and CSD and water 3.5% higher.

Within the custom segment there was good growth in isotonic beverages across the region and solid growth in diversified products, particularly in Brazil for the food and healthcare markets.

In Mexico, the turnaround program has made excellent progress, including the rationalisation of three facilities, significant headcount reduction, lower work force turnover and improved morale, reduced reliance on third party sourcing and implementation of a disciplined cost management system. The improvement in the 2006/07 profit of USD 9.5 million was a strong performance and, given the full year benefit from the initiatives already undertaken, combined with new programs for improvement, it is anticipated the target of USD 16 million increase in profit over two years, will be achieved.

Volumes in Mexico were slightly lower due to a combination of a cooler start to the summer and some weakness in demand with major customers. It is anticipated that volumes will be modestly higher in the current year.

In Brazil, the business experienced a transitional year as it has undertaken a major restructuring to relocate blowmolding capacity onsite to the Coca-Cola facilities in the Sao Paulo area. This project is expected to be completed in October

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1. Earnings in Brazil for the year were substantially lower and it is not anticipated that there will be any material improvements in earnings until the second half of the 2007/08 year.

Elsewhere in Latin America, the business delivered solid results with generally improved volumes and earnings.

The outlook for Latin America is for a substantial increase in profit in 2007/08, driven predominately by ongoing improvements in Mexico and second half improvement in Brazil.

Europe

The European operations had a particularly strong year with profit, in euro terms, up 34% from €29.5 million to €39.4 million. In US dollar terms, the increase was 43%.

Volumes for the business were up 7.3% with strong performances across most of the plants.

The business was sold, effective June 30, 2007 to La Seda de Barcelona S.A. for an estimated price of €425 million. The book value of the net assets sold was approximately €278 million.

Outlook

In the 2007/08 year, the business will benefit from:

• the new plant at Wytheville, Virginia (USA);

• other investments in the custom PET market in North America;

• ongoing improvements in Mexico; and

• improvement in Brazil, particularly in the second half of the year.

The continuing operations of the PET packaging business are expected to deliver a strong improvement in profit, in local currency terms.

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Profit (AllOperations)	2006 **AUD **	2007 AUD	% Change
Net sales (mill)	**2,561 **	2,524	(1.4)
PBIT(mill)	262.4	221.9	(15.4)
OperatingMargin(%)	10.2	8.8
Averagefunds employed (mill)	1,843	1,859
PBIT/AFE(%)	14.2	11.9
Cash Flow (AllOperations)	2006 AUD (mill)	2007 AUD (mill)	% Change
PBITDA	384.2	361.6	(5.9)
Base Capital Expenditure	(105.2)	(54.9)
Movementin Working Capital	13.5	9.1
Significantitems	-	(60.3)
**Operating Cash Flow **	292.5	255.5	(12.6)
GrowthCapital Expenditure	-	-

Australasian Group

Amcor Australasia had a mixed year with profit before interest and tax (PBIT) 15.4% lower at AUD 221.9 million. Improved earnings in the non-fibre businesses were more than offset by a reduction in earnings in the fibre operations.

After the first half profit was down 20.9%, there was improvement in the second half with the profit down 7.7% and the fourth quarter profit only slightly behind the same period last year.

Returns, measured as PBIT over average funds employed, were lower at 11.9%.

Significant items for the year were $72.8 million, of which $60.3 million was cash payments and the balance relating to asset writedowns. The significant items predominately related to the turnaround plan in fibre packaging, announced in August 2006.

Base capital expenditure for the year was $54.9 million. This comprised gross expenditure of $174 million and proceeds from disposals of $119.1 million. Capital expenditure in the fibre operations was $114 million, of which $75 million was directly attributable to the turnaround plan.

Working capital was $9 million lower giving an operating cash flow for the business of $255.5 million.

Fibre

The fibre business experienced a challenging year undertaking a major restructuring program in an environment of general market softness and rising costs. These cost increases were not recovered in the market and earnings for the year were considerably lower.

Turnaround Plan

In August 2006, a comprehensive program was announced to recapitalise and rationalise the fibre business in Australasia. Over the past 12 months, there has been substantial progress in all aspects of this agenda, however the execution of the plan is behind schedule and it is now anticipated that all the plant closures and capital reinvestment will be completed during the second quarter of 2007/08. Notwithstanding the project is slightly behind schedule, the pace of implementation has been aggressive and this has negatively impacted operational efficiencies and service levels, in the short term, resulting in higher operating costs and a modest loss of volume with smaller customers.

Corrugated

The corrugated business has undergone substantial footprint and operational changes that will result in a significantly lower cost base and a more efficient and customer-focused business.

In Queensland, three sites have been reduced to two, with the closure of a site in Brisbane and equipment relocated to the plant at Rocklea. There was also reinvestment in conversion equipment at the Rocklea site and a substantial upgrade to the plant in Northern Queensland with the installation of a Xitex, single facer corrugator scheduled to be completed by December 2007.

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In Victoria, there was also rationalisation from three sites to two, with the Box Hill site closed and equipment relocated to the Scoresby and Brooklyn plants. The Smithfield operation in New South Wales has been downsized and excess equipment relocated to the nearby plant at Revesby.

Across the retained sites there has been capital expenditure in new conversion equipment as well as substantial improvements in work practices and the combined benefit of these initiatives will be improved operating efficiencies and lower costs.

Cartons

In New South Wales, the cartons business is consolidating from two sites to one and reinvesting at the remaining site at Botany. A large format printing machine and conversion equipment have been installed to improve the operating cost base.

Paper & Board

The Spearwood Recycled Paper Mill in Western Australia closed in September 2006 and the Petrie Cartonboard Mill in Queensland, successfully absorbed some of this volume. The restructuring of the finishing section at the Petrie Mill is on target to be completed by the end of the first quarter of the 2007/08 year.

The feasibility study for a new recycled paper machine, at Botany, New South Wales, is near completion with approval to proceed anticipated in the first half of 2007/08. The target completion date remains 2009/10.

Turnaround Plan Summary

In summary, four sites have been closed, the corrugated and conversion operations recapitalised and the headcount reduced by 335. The net cash cost in 2006/07, including capital expenditure, restructuring expenses and excess property sale proceeds, was $27 million and the cost reduction benefits, forecast at $40 million per annum, will be fully realised from the end of the first half 2007/08.

Sales

The Corrugated Box business in Australia experienced difficult market conditions with volumes down 4%. Approximately half of this reduction was in the fruit and produce segment, predominately due to the impact of Cyclone Larry in Queensland and severe frosts in the Goulburn Valley in Victoria. The business also made a conscious decision to exit some unprofitable volume and experienced a modest loss of share with smaller customers due to service issues created by implementation of the turnaround plan. New Zealand volumes were down 15% due entirely to the loss of a major customer towards the end of 2005/06. Carton converting volumes were up 7.5% principally in the Australian fast food and beverage segments.

Earnings

In the corrugated business earnings were lower due to the combination of reduced volumes, unrecovered cost increases, continued pressure on prices and operating inefficiencies at some sites, partially offset by the initial benefits from the turnaround program. Price increases in Australia & New Zealand, announced in the first half to uncontracted accounts, were successfully implemented.

The carton converting business incurred one-off costs, particularly in the first half, in obtaining new business in the fast food segment. The closure of the Enfield site in New South Wales and extensive reinvestment at the Botany plant had a negative impact on performance during the last quarter. This project, which will increase capacity and lower costs, is expected to be completed by September 2007.

The recycled paper mills, that predominately supply corrugated board to the box operations, had a 4% reduction in domestic volumes which was in line with the reduction in the corrugated business. The operational performance of the mills was good, however higher wastepaper costs were not recovered in the market, and export margins were eroded by the rising Australian dollar.

The cartonboard mill volumes were slightly lower. Volumes to domestic customers were up 9% reflecting growth in the converting business but export volumes were lower. The higher Australian dollar had the dual impact of lowering export margins and reducing prices for imported board. Cost reduction initiatives and the benefit of increased domestic volumes offset these negative impacts and earnings were slightly higher.

Flexibles

The flexibles business, which consists of four operating units: polyethylene, laminations, New Zealand flexibles and multiwall sacks had a mixed year with earnings lower.

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The polyethylene business had lower overall volumes after exiting some segments of printed and commodity films and experienced import price pressure on industrial films. New capacity has been installed in Queensland and Victoria targeting growth in the food and beverage segments.

In the laminations business the rationalisation in New South Wales from two sites to one and the installation of a new gravure press were successfully completed.

In June, it was decided to close the flexibles plant at East Tamaki, New Zealand, and relocate key machinery to sites in Australia. Over 85% of volumes from this plant will be retained, mostly supplied from Australia.

The multiwall sacks business had a solid year. Volumes were 9% lower, due largely to the impact of the drought. Operationally, the restructuring of the business has been completed, resulting in an improved cost base.

In summary, although 2006/07 was a particularly difficult year, the business has implemented a number of improvement programs and completed its reinvestment agenda. Profit is anticipated to improve in 2007/08.

Rigids

The aluminium can business had a good year with increased earnings. Volumes were up 6%, mainly due to growth in the carbonated soft drink multi-packs and the ready-to-drink alcohol segment. The business is investing $33 million to satisfy ongoing market growth, as well as providing new can sizes and designs.

The glass wine bottle business had a strong year with volumes substantially higher due to the full year operation of the second furnace. The business continued to develop new premium bottles, including the new diamond shaped bottle for Rosemount. With both furnaces at full capacity, volumes and profit in 2007/08 will be broadly in line with 2006/07.

Outlook

The outlook for the Australasian business is for solid improvements in the fibre and flexibles operations with modest gains expected for the remaining operations.

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Profit (Continuing Operations)	2006	2007	% Change	2006 €	2007 €	% Change
	AUD	**AUD **
Net sales (mill)	2,979	3,009	1.0	1,827	1,809	(1.0)
PBIT(mill)	191.6	198.5	3.6	117.5	119.3	1.5
OperatingMargin(%)	6.4	6.6		6.4	6.6
Averagefunds employed (mill)	1,524	1,501		935	902
PBIT/AFE(%)	12.6	13.2		12.6	13.2
Average exchangerate	0.61	0.60
Cash Flow (AllOperations)	2006	2007	% Change	2006 € (mill)	2007 € (mill)	% Change
	AUD (mill)	AUD (mill)
PBITDA	336.5	301.6	(10.4)	206.4	181.3	(12.2)
Base Capital Expenditure	(147.8)	(76.4)		(90.7)	(45.9)
Movementin Working Capital	90.3	45.6		(11.0)	27.3
Significantitems	(18.0)	(41.0)		55.4	(24.6)
**Operating Cash Flow **	261.0	229.8	(12.0)	160.1	138.1	(13.7)
GrowthCapital Expenditure	(0.5)	(10.4)		(0.3)	(6.3)

Flexibles Group

Amcor Flexibles had a solid year with profit before interest and tax (PBIT) up 1.5% to €119.3 million. During the first half of the year, rising raw material costs negatively impacted sections of the business and PBIT in the first half was down 8.8%. In the second half of the year, profit was up 10.8%, driven predominantly by improved operating performance at a number of the plants.

Returns, measured as PBIT over average funds employed, increased from 12.6% to 13.2%.

Working capital decreased by €27.3 million, with sound contributions across all the operating divisions. As the flexibles repositioning program in Europe is implemented over the next two years, there will be opportunities for further improvements in working capital.

Base capital expenditure at €45.9 million, was below depreciation of €57.5 million. Growth capital expenditure was €6.3 million, comprising the initial investment in the new tobacco plant in the Ukraine, expansion of the flexibles plant in Russia and the initial investment in the new flexibles plant in Poland.

Significant items were €39.5 million, of which €24.6 million was cash. This related, primarily to the redundancy payments and costs associated with closing the plants in the United Kingdom and Germany.

The operating cash flow for the year was a positive €138.1 million.

Food

Amcor Flexibles Food consists of a produce and bakery division which has plants in the United Kingdom and Portugal and a processed and chilled food division with operations across Europe, including Central and Eastern Europe. The business also coordinates the wider strategy for food packaging across the flexibles operations in other regions.

Volumes for the year were 3% lower, with good growth in some segments offset by the selective withdrawal from unprofitable business especially through the process of closing two plants.

Earnings were in line with the prior year, with the focus on improved product profitability reflected in higher gross margins, however this benefit was not fully reflected in earnings due to a significant reduction in inventory, which negatively impacted overhead absorptions.

For the third consecutive year, raw material input costs increased. During the first half of the year, the rising input costs were against a backdrop of falling oil prices and were particularly difficult to recover in the marketplace. The environment was more favourable in the second half and there was only a modest impact on earnings due to unrecovered increases in input costs.

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For the current year, input costs remain at record highs and the outlook is for these levels to continue to gradually increase through the remainder of the year. The business has continued to improve its commercial skills and is well prepared for the forecast increases.

In the produce and bakery division sales volumes were higher, with improvements to product mix and good cost management ensuring the division delivered higher earnings. In the processed and chilled food division, volumes were lower, primarily due to a conscious decision not to retain the unprofitable business from the two plants closed. An improved product mix and greater focus on managing input price increases enabled the division to deliver higher earnings.

A key component for ongoing improvement is an extensive repositioning program being undertaken by the business. This program, commenced during the 2006/07 year with the successful closure of two plants, one in the United Kingdom and one in Germany. These closures were achieved ahead of schedule, with costs below budget and more than 70% of the volumes retained and transferred to other sites.

• In April 2007, the remaining component of the program was outlined with the main objectives being to:

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

• increase weighting in lower cost regions, particularly in Southern and Eastern Europe;

• improve alignment to customer needs and market trends; and

• create a strong platform for innovation and continued growth.

The project will deliver an estimated PBIT benefit of €30 million per annum, from the 2009/10 year, for an estimated net cash cost of €60 million. The overall headcount reduction, excluding divested sites, will be around 900 out of a total workforce of 7,600.

There are substantial opportunities to improve operating efficiencies, including reduction in waste and better management of plant loadings and overtime. The repositioning project will assist in realising these benefits as well as lowering the “sales and general administration” costs.

An important component of the growth of the Amcor Flexibles Food business is the ongoing expansion into Central and Eastern Europe. During the year there were a number of important developments in this region.

The flexibles plant in Novgorod, Russia successfully commissioned a second printing press, effectively doubling its capacity in this high growth market. With the increasing number of multinational customers building capacity in Russia the objective is to fully utilise this new machine over the next two years.

The new €30 million plant in Poland, dedicated to PepsiCo for snack food products, has commenced construction and is anticipated to be operational in May 2008. This plant will be a global leader in extrusion lamination and is ideally located in a high growth, low cost region.

The outlook for the Amcor Flexibles Food business is positive, with most plants currently experiencing good loadings and a solid forward order book. The business is undertaking a major repositioning project and the challenge for the current year is to maintain commercial and operational focus during a period of substantial change for a number of sites.

It is anticipated that if the current conditions prevail for the remainder of the year, Amcor Flexibles Food should deliver a solid increase in profit.

Healthcare

Amcor Flexibles Healthcare comprises Amcor’s flexible packaging activities in the Americas and healthcare packaging plants in Europe. Amcor Flexibles Healthcare is a global leader in flexible packaging for the medical, personal care and pharmaceutical markets. Headquartered in Chicago, USA, it has over 2,200 employees at 16 manufacturing facilities in 10 countries. In addition, the group coordinates strategy and commercial activity with the flexible healthcare activities in Asia.

The business is well positioned in attractive market segments and leverages its strong regional positions and product portfolio to focus growth on the more technically demanding, high-performance products.

There has been extensive development of customer and market facing capabilities over the past two years including the appointment of external recruits to key positions. These improvements, combined with substantial improvements in the manufacturing performance at some sites, enabled the business to achieve a solid improvement in earnings.

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Raw material costs increased during the year. In particular aluminium foil, which is used extensively in healthcare applications, was substantially higher for the year. These increased costs were successfully recovered in a timely manner with a minimal impact on earnings.

In the Americas, sales were 2% higher, with a larger increase in earnings due to an improved operational performance and enhanced product mix.

The USD 13 million new press and laminator at the Madison, Wisconsin facility was commissioned in March 2007. This press creates the opportunity to pursue growth in the high-decoration markets, particularly personal care and pharmaceutical applications. The strategy is to leverage off the strong technical know how and established customer relationships in Europe to grow sales in North America.

The European business increased sales by 2%. Earnings increased by a larger percentage due to a combination of improved operating performance and increasing prices for low margin business.

The European team has achieved a similar level of success to the Americas business in improving sales and marketing capability and this has been a key element in improving the product mix through a better understanding of the customer value proposition.

As part of the joint European repositioning project undertaken with Amcor Flexibles Food, the business is planning for significant investments at key sites during the coming year. These investments will improve plant efficiencies, lower overhead costs and strengthen technical capabilities. The benefits of these investments will be evident in the 2008/09 financial year.

The outlook for Amcor Flexibles Healthcare is for improved profit and higher returns, driven by continued improvements in customer focus, benefits from innovation to create differentiated products and enhanced cost positions through the European restructuring program.

Amcor Rentsch

Amcor Rentsch has leadership of Amcor’s global tobacco packaging business and operational responsibility for the plants in Europe. The business has seven plants, with six focused on tobacco cartons and one dedicated to the specialty cartons business for hair colorants, cosmetics and confectionery markets.

Sales for the year were down 1.9 % to €341.5 million. Earnings were lower, predominately due to losses at the specialty cartons plant in Switzerland. This plant is in the process of being closed and the business is exiting the specialty markets as they are no longer considered core.

In the tobacco carton segment, although volumes were lower, there was an improvement in product mix with more technically demanding packaging designs that required a range of value-add features. This trend has been driven by changing consumer preference to higher value brands. The increase in complexity is a substantial opportunity for the business, especially in Eastern Europe, as it enables the business to leverage its superior technological capabilities and improve the value proposition to the customer.

The business continues to prepare for the introduction of graphical health warnings that will be progressively introduced across the EU. Belgium moved to graphical health warnings in 2007 and Switzerland and Romania have indicated that they will implement them from January 1, 2008.

Construction of the new plant in Kharkiv, Ukraine continues on schedule. Production is planned to begin in November 2007.

The outlook for the business is good and profit is expected to be higher. The business will benefit from the closure of the loss-making plant in Switzerland, increased volumes of higher value-add cartons and from additional business opportunities in Ukraine after production start up.

Outlook

The outlook for the Flexibles business is for improved profit in all divisions, expressed in local currency terms. The magnitude of the improvement depends upon the continued recovery in earnings at the underperforming plants, the ability to pass on increasing costs in a timely manner and ongoing solid capacity utilisation.

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Profit (AllOperations)	2006	2007	% Change	2006 **USD **	2007 **USD **	% Change
	**AUD **	**AUD **
Net sales (mill)	**1,292 **	**1,251 **	(3.2)	965	**984 **	2.0
PBIT(mill)	65.1	63.3	(2.8)	48.6	49.8	2.5
OperatingMargin(%)	5.0	5.1		5.0	5.1
Averagefunds employed (mill)	344	306		257	240
PBIT/AFE(%)	18.9	20.7		18.9	20.7
Average exchangerate	0.75	0.79
Cash Flow (AllOperations)	2006 AUD (mill)	2007 AUD (mill)	% Change	2006	2007	% Change
				USD (mill)	USD (mill)
PBITDA	78.4	76.6	(2.3)	58.5	60.3	3.1
Base Capital Expenditure	(12.2)	(5.4)		(9.1)	(4.2)
Movementin Working Capital	(9.9)	21.6		(7.4)	17.0
Significantitems	-	-		-	-
**Operating Cash Flow **	56.3	92.8	64.8	42.0	73.1	74.0
GrowthCapital Expenditure	-	-		-	-

Sunclipse Group

Amcor Sunclipse had a solid year with profit before interest and tax (PBIT) up 2.5% to USD 49.8 million. Returns, measured as PBIT over average funds employed, increased from 18.9% to 20.7%.

Sales for the year were up 2.0% to USD 984 million, predominately due to increased volumes in the first half of the financial year.

Base capital expenditure for the year was USD 4.2 million, compared to depreciation of USD 10.5 million.

Working capital reduced by USD 17.0 million. This improvement was, in part, driven by the increased focus from the new Business Services Centre that was established in Tempe, Arizona.

The operating cash flow, after the movement in working capital and capital expenditure, was USD 73.1 million.

The full year result reflected a strong performance in the first half of the year; however operating conditions in the second half were more difficult. This was due to a number of factors, including:

• weaker economic conditions negatively impacting volumes across a wide range of industries and regions; and

• prolonged frosts in Northern California which damaged large portions of the citrus crop. This market is supplied by the large integrated paper manufacturers. With lower volumes in one of their key markets, they moved aggressively into smaller accounts, which represent a substantial percentage of Amcor Sunclipse’s volumes.

Although linerboard costs remained steady during the year, the average was higher than in 2006/07. There were a number of attempts to increase linerboard prices over the past six months; however with weaker economic conditions these attempts have not been successful.

A number of costs that increased sharply in the prior year, including freight and distribution, stabilised in 2006/07. Consequently, there was minimal impact on margins from under-recovery of rising input costs.

Group Outlook

The outlook for Amcor Sunclipse is positive. The economy in the United States remains uncertain amid increasing concerns about home and automobile sales and poor performance in some parts of the mortgage industry.

Should the current level of economic activity be maintained for the balance of the year, profit for Amcor Sunclipse is anticipated to improve.

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		2006		2007		% Change		2006		2007		% Change
Profit -Consolidated Entities		**AUD **		**AUD **				**SGD **		**SGD **
Net sales (mill)		175		122		(30.3)		215		149		(30.7)
PBIT(mill)		20.7		13.2		(36.2)		25.5		16.1		(36.9)
OperatingMargin(%)		11.8		10.8				11.8		10.8
Averagefunds employed (mill)		96		68				118		83
PBIT/AFE(%)		21.6		19.4				21.6		19.4
Average exchangerate		1.23		1.22

		2006		2007		% Change		2006		2007		% Change
Equity Accounted Profit		**AUD **		**AUD **				**SGD **		**SGD **
PAT(mill)		9.8		21.8		122.4		12.1		26.5		119.0
AFE~~(2)~~ (mill)		78		162				96		197
AFE~~(1)~~ (mill)		94		284				116		346
PAT/AFE~~(2)~~(%)		12.6		13.5				12.6		13.5
PAT/AFE~~(1)~~ (%)		10.4		7.7				10.4		7.7

~~(1) Including AMVIG fair value~~

(2) Excluding AMVIG fair value

		2006		2007		% Change		2006		2007		% Change
Cash Flow (AllOperations)		AUD (mill)		AUD (mill)				SGD (mill)		SGD (mill)
PBITDA(consolidated entities)		21.9		17.2				26.9		21.1
Dividendsreceived		2.0		5.3				2.4		6.4
Base Capital Expenditure		0.6		(11.1)				0.7		(13.5)
Movementin Working Capital		0.2		6.9				0.2		8.4
Significantitems		-		-				-		-
**Operating Cash Flow **		24.7		18.3		(25.8)		30.2		22.4		(25.8)
GrowthCapital Expenditure		(55.3)		(26.4)				(68.0)		(32.2)

Asian Group

Amcor Asia consists of:

• two wholly-owned tobacco packaging plants (one in Singapore and one in Malaysia);

• three wholly-owned flexible packaging plants (two in China and one in Singapore); and

• a 41.05% investment in the Hong Kong publicly-listed company, AMVIG Holdings Limited (AMVIG).

The profits, shown in the tables above, are split between the PBIT for the consolidated entities and the equity accounted profit after tax from investments.

The equity accounted profit after tax for the year increased 119% from SGD 12.1 million to SGD 26.5 million due to a combination of a 56% increase in the profit after tax for AMVIG and an increase in Amcor’s share of that profit from 25.9% to 40.4%.

For the controlled entities, profit before interest and tax (PBIT) for the year was SGD 16.1 million, down from SGD 25.5 million in 2005/06 due to the sale of the two Chinese tobacco carton plants to AMVIG in February 2006. Returns, measured as PBIT to average funds employed, were 19.4%.

Consolidated entities

The tobacco packaging operations had a solid year. Sales were higher as new business was secured across the region and the plant in Malaysia has upgraded its print capabilities in preparation for that country’s move to implement graphical health warnings on tobacco packaging from 2008.

The three flexibles plants also delivered a sound performance. The plant in Southern China has successfully relocated its operations to a new site to better enable future expansion while the plant in Beijing achieved solid growth in sales and higher earnings.

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AMVIG Holdings Limited

On August 16, 2007, AMVIG announced its half year unaudited profit for the six months to June 2007 of HKD 139.3 million. For the 12 months to June 2007, AMVIG’s reported profit was HKD 306.1million.

Amcor’s share of this profit for the 2006/07 year was HKD 123.8 million (SGD 24.5 million). At June 30, 2007, Amcor owned 41.05% of AMVIG Holdings Limited.

On June 13, 2007, AMVIG entered into an agreement to purchase the assets of one of the largest cigarette packaging printers in China, Brilliant Circle. The consideration for this acquisition is HKD 1.55 billion, made up of the allotment of 200 million shares and a cash payment of HKD 155 million.

Approval for the acquisition will be put to shareholders of AMVIG at an Extraordinary General Meeting. Should the acquisition be approved by shareholders, Amcor’s holding in AMVIG will reduce to around 32.8%.

AMVIG has established a broad manufacturing footprint in China, with five plants located in key production regions. The proposed acquisition of Brilliant Circle will double this footprint to 11 plants and AMVIG will be the largest tobacco carton manufacturer in China, with an estimated market share of 17%.

This acquisition will create the opportunity for AMVIG to leverage its manufacturing skills and technical know-how to become the most cost efficient and innovative producer of tobacco cartons in China.

Further details regarding AMVIG’s results are available on its website www.amvig.com.

Outlook

The wholly-owned tobacco carton and flexible packaging operations are expected to deliver improved profits in the 2007/08 year.

AMVIG is expected to increase its profit substantially following the anticipated completion of the Brilliant Circle acquisition. Amcor’s equity accounted profit will not increase at the same rate due to the resulting dilution in Amcor’s shareholding from 41% to around 32%.

Footnote

The funds invested in AMVIG in Amcor’s accounts consist of cash payments of SGD 117 million to purchase shares in the publicly-listed company at an average price of HKD 2.74 per share, together with the injection of the two tobacco packaging operations in China, (Beijing and Qingdao), which had a carrying value of SGD 69 million.

The carrying value of AMVIG, at June 30, 2007, in Amcor’s accounts is SGD 358.5 million, with the difference between this amount and the invested funds being, predominately an accounting adjustment for “fair value market up-lift” at the time of exercising options to acquire additional shares.

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Significant Items
AUD(mill)	2006	2007
Consolidated significant items
Significant items before related income tax expense
Income
Gain arisingon disposal of PET Europe business	-	247.5
Gain arisingon disposal of equityinvestment in K Laser	-	15.1
Fair valuegains on derivatives related to AMVIG acquisition	32.0	-
Gain arisingfrom associate’s equityissue AMVIG	12.5	-
Gain arisingon disposal of controlled entities to AMVIG	52.3	-
Expense
PET business integration and restructure	(7.9)	(5.3)
Australasian restructuring	-	(60.3)
Flexibles market sector rationalisation	(53.7)	(47.1)
Disposal of Asian corrugated,sacks and closures business	(7.2)	(4.0)
Closures business restructure and loss on disposal	(20.8)	9.0
Asset impairments	(66.8)	(64.0)
Onerous leases and curtailment ofpension funds	(4.5)	-
Significant items before related income tax expense	(64.1)	90.9
Income tax on significant items	25.3	45.8
Significant items after related income tax expense	(38.8)	136.7
Significant items attributable to:
Members of Amcor Limited	(54.6)	136.7
Minorityinterest	15.8	-
	(38.8)	136.7

**Details of Consolidated Significant Items Before Income Tax **	**Details of Consolidated Significant Items Before Income Tax **	**Details of Consolidated Significant Items Before Income Tax **	**Details of Consolidated Significant Items Before Income Tax **	**Details of Consolidated Significant Items Before Income Tax **
AUD (mill)	Redundancy	Plant Closure	Disposal of Controlled Entities	Other (a)	Asset Impairments	**Total **
PET	(0.3)	(5.0)	247.5	-	(32.9)	209.3
Australasia	(43.5)	(16.8)	-	-	(12.5)	(72.8)
Flexibles	(15.3)	(31.8)	-	-	(18.6)	(65.7)
Sunclipse	-	-	-	-	-	-
Asia	-	-	(4.0)	15.1	-	11.1
Closures	-	-	9.0	-	-	9.0
**Total **	(59.1)	(53.6)	252.5	15.1	(64.0)	90.9
(a) Includes thegain arisingon disposal of the equityinvestment in K Laser.

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	2007 Cash Flow By Business Group – AllOperations	2007 Cash Flow By Business Group – AllOperations	2007 Cash Flow By Business Group – AllOperations	2007 Cash Flow By Business Group – AllOperations	2007 Cash Flow By Business Group – AllOperations
AUD(mill)	PET	Australasia	Flexibles	Sunclipse	Asia	Corporate	Consolidated
PBITDA	465.9	361.6	301.6	76.6	39.0	(45.8)	1,198.9
Interest	-	-	-	-	-	(203.5)	(203.5)
Tax	-	-	-	-	-	(80.1)	(80.1)
Base capital expenditure	(152.7)	(54.9)	(76.4)	(5.4)	(11.1)	(0.1)	(300.6)
Cash significant items	(3.7)	(60.3)	(41.0)	-	-	(1.2)	(106.2)
(Increase) / decrease in working capital	177.3	9.1	45.6	21.6	6.9	(3.8)	256.7
Other items	-	-	-	-	(16.5)	(104.8)	(121.3)
Operating cash flow	486.8	255.5	229.8	92.8	18.3	(439.3)	643.9
Dividends Paid	(13.5)	-	-	-	-	(305.7)	(319.2)
Free cash flow	473.3	255.5	229.8	92.8	18.3	(745.0)	324.7
Divestments / acquisitions	-	20.5	-	-	54.8	4.3	79.6
Growth capital expenditure	(128.9)	-	(10.4)	-	(26.4)	-	(165.7)
Net proceeds from shareissues	-	-	-	-	-	(310.7)	(310.7)
Foreign exchange rate changes	-	-	-	-	-	(5.7)	(5.7)
Net cashgenerated	344.4	276.0	219.4	92.8	46.7	(1,057.1)	(77.8)
Increase in net debt							(77.8)

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