AMCOR PLC — Interim / Quarterly Report 2008

Feb 19, 2008

Wednesday, February 20, 2008

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For immediate release:

RESULTS FOR SIX MONTHS ENDED DECEMBER 31, 2007

• Amcor announces a profit after tax and before significant items of $185.0 million.

• Profit before interest and tax up 10.3% for continuing businesses in local currency terms.

• Operating cash flow, including the cash component of significant items and movement in working capital, of a positive $92.9 million. Free cash flow, after the payment of the dividend, of $(61.9) million.

• The interim dividend remains steady at 17 cents per share.

• Returns measured as profit before interest and tax (PBIT) to average funds employed, increased from 10.7% to 11.8%.

• Profit after tax and significant items up 30.8% to $154.0 million.

• Profit after tax and before significant items was negatively impacted by $16 million due to the impact of translating overseas earnings into Australian dollars at a higher exchange rate than for the first half of the 2006/07 year.

AUD (mill) – AllOperations		Jul / Dec 2006		**Jul / Dec 2007 **		% Change
Sales		5,472.1		4,739.2		(13.4)
PBITDA		580.6		537.5		(7.4)
PBIT		350.6		333.8		(4.8)
PAT~~(2)~~		185.0		185.0		-
Significantitems~~(1)~~		(67.3)		(31.0)		53.9
PATaftersignificantitems		117.7		154.0		30.8
EPS~~(2)~~ (cents)		20.5		21.0		2.4
Operating cash flow~~(3)~~		124.6		92.9		(25.4)
Dividend (cents)		17.0		17.0		-

(1) Significant items for the half year mainly relate to the gain on disposal of the Food Can and Aerosols business, which has been offset by the Fibre Packaging Australia recovery plan, and the Flexible market sector rationalisation

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

Key Ratios (AllOperations)		Jul / Dec 2006		**Jul / Dec 2007 **
PBIT/Averagefunds employed (%)~~(2)~~		10.7		11.8
Returnonaverage equity (%)~~(2)~~		10.4		10.4
Net debt / (Net debt plus equity) (%)~~(1)~~		45.6		39.4
NetPBITDA interest cover(times)~~(2)~~		5.6		5.9
NTApershare (AUD)		1.92		2.09

(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)	Segmental Analysis (Before Significant Items)
		Jul / Dec 2006		Jul / Dec 2007
	Sales AUD (mill)	PBIT AUD (mill)	ROAFE (%)	Sales AUD (mill)	PBIT AUD (mill)	ROAFE (%)
Amcor PET Packaging	1,530.5	95.4	9.1	1,456.0	99.3	10.6
Amcor Australasia	1,171.9	108.5	12.4	1,133.8	112.9	12.9
Amcor Flexibles	1,498.0	85.1	11.1	1,440.9	83.1	11.5
AmcorSunclipse	651.6	36.3	21.8	572.3	36.3	30.4
Amcor Asia	62.9	16.6	9.4	58.4	19.4	11.2
Investments / other	-	(27.1)	-	-	(24.9)	-
Intersegmental	(4.8)	-	-	(4.7)		-
Continuing operations	4,910.1	314.8	10.4	4,656.7	326.1	11.7
Amcor PET Packaging~~(1)~~	440.0	22.5	10.9	-	-	-
Amcor Australasia~~(2)~~	132.9	13.3	21.1	96.2	7.7	18.3
Intersegmental	(10.9)	-	-	(13.7)	-	-
Discontinued operations	562.0	35.8	13.3	82.5	7.7	18.3
TOTAL	5,472.1	350.6	10.7	4,739.2	333.8	11.8
(1) European PET Packaging. (2) Australasian Food CanandAerosols business.

Highlights

• PET Packaging achieved an 18.2% increase in PBIT, for the continuing businesses expressed in local currency terms, primarily due to the benefits from the new custom container plant at Wytheville, Virginia and ongoing improvements in the Mexican operations. Returns increased from 9.1% to 10.6%;

• Amcor Flexibles achieved a 0.8% increase in PBIT in local currency terms, with ongoing improvements in the Food and Healthcare operations, partially offset by lower earnings in the tobacco packaging business;

• Amcor Australasia achieved a 4.1% increase in earnings on a continuing business basis, with solid performance in the non-fibre businesses and the fibre operations continuing to progress the turnaround plan. A new 345,000 tonne per annum, recycled paper mill will be constructed at Botany, New South Wales. The net cost of the new mill is $230 million.

• Amcor Sunclipse, the North American distribution business, increased PBIT by 13.3% in local currency terms; and

• Amcor Asia had a solid first half with earnings up 25.0% in local currency terms.

For the 2007/08 year, the sensitivity of profit after tax to the movement in the Australian dollar, due to the translation of overseas earnings into Australia 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 US dollar to Australian dollar exchange rate in the first half of the 2006/07 year was 76.6 cents and for the first half of the 2007/08 year was 86.77 cents.

The Euro to Australian dollar exchange rate in the first half of the 2006/07 year was 59.6 cents and for the first half of the 2007/08 year was 61.5 cents.

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‘ 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 six 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 include:

• 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 the 2008 calendar year;

• A new €12 million tobacco packaging plant in the Ukraine, that recently commenced operations;

• The tobacco packaging business investing €22 million at the plants in Russia and Poland to increase capacity and enable additional value-add production at those sites. In Russia a new printing press and hot foil stamping machine will be installed and in Poland new offset capacity and additional cutting and creasing equipment is being installed;

• A second press at the flexibles plant in Russia commenced operations in August 2007;

• AMVIG, the Hong Kong publicly-listed company, in which Amcor has a 33.5% shareholding, completed the acquisition of Brilliant Circle in October. AMVIG is now the largest tobacco packaging manufacturer in China, with approximately 19% market share; and

• On the February 6, Amcor purchased 18.756 million AMVIG shares at a price of HK$9.50. This represented 1.9% of AMVIG’s share capital and increased Amcor’s shareholding in AMVIG from 33.5% to 35.4%.

Fix / Sell / Close

• The sale of the European PET and Australasian Food Can and Aerosol operations reduced PBIT for the first half by A$22.5 million for the European PET operations and A$5.6 million for the sale of the Australasian Food Can and Aerosol businesses;

• The second phase of the restructuring of Amcor Flexibles business in Europe has commenced with the announcement of: - The closure of a flexographic plant in the UK and the relocation of its volumes to a nearby facility;

• The relocation of the extrusion operations at the plant at Ledbury in the UK to a nearby facility; and

• The closure of a film extrusion plant in Denmark.

• The second year of the US$16 million turnaround program in the Mexican PET operations continues on schedule;

• The fibre business in Australasia is undertaking a comprehensive turnaround program. The execution of the footprint changes has now been completed and the focus for the current year is to optimise benefits through improved operating efficiency; and

• A new recycled paper mill will be constructed at Botany, NSW for a net cost of $230 million. The new mill will be a low cost manufacturer of recycled paper in the Australasian market and reduce the carbon footprint for the paper manufacturing operations by 35%.

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Consolidated Income Statement
AUD (mill)	Jul / Dec 2006	Jul / Dec 2007
Net sales	5,472.1	4,739.2
PBITDA	580.6	537.5
- Depreciationand amortisation	(230.0)	(203.7)
Profit beforeinterest and tax	350.6	333.8
- Netinterest (ex PACRS)	(94.6)	(91.7)
- PACRSinterest	(9.9)	-
Profit before tax	246.1	242.1
- Income tax	(52.9)	(51.7)
- Minorityinterests	(8.2)	(5.4)
Profit after tax and before significant items	185.0	185.0

Consolidated Cash Flow Statement
AUD (mill)	Jul / Dec 2006	Jul / Dec 2007
PBITDA	580.6	537.5
Interest	(94.1)	(88.4)
Tax	(34.5)	(27.4)
Cashsignificantitems	(79.2)	(56.1)
Base capitalexpenditure	(155.2)	(99.7)
Movementin working capital~~(1)~~	(66.9)	(154.1)
Other	(26.1)	(18.9)
Operating cash flow	124.6	92.9
Dividends	(156.6)	(154.8)
Free cash flow	(32.0)	(61.9)
Divestments	39.0	970.5
Growthcapital/ acquisitions	(58.2)	(78.5)
Proceedsfromshareissues	(123.3)	(158.5)
Foreignexchangerate changes	(0.7)	(11.8)
Movement in net debt	(175.2)	659.8
~~(1)~~ ~~Movement in working capital relates to continuing operations~~

Consolidated Balance Sheet
AUD (mill)	Dec 2006	Dec **2007 **
Current assets	3,110.2	2,655.7
Property, plant and equipment	4,185.3	3,713.1
Intangibles	1,785.1	1,437.9
Investments and otherassets	535.0	549.4
Total assets	9,615.6	8,356.1
Short termdebt	975.1	619.2
Long termdebt	1,928.0	1,749.3
Creditors and provisions	2,971.6	2,558.7
Convertiblenotes	219.8	-
Shareholders’equity	3,521.1	3,428.9
Total liabilities and shareholders’ equity	9,615.6	8,356.1

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Final Dividend

The Directors declared an unfranked interim dividend of 17 cents per share. This compares with an unfranked interim dividend of 17 cents per share for the first half of 2006/07. 75% of the interim dividend is sourced from the Conduit Foreign Income Account for the benefit of foreign shareholders. The record date is March 3, 2008 and payment date will be March 31, 2008.

Significant Items

Significant items after tax for the six months ended December 31, 2007 was a loss of $31.0 million, compared to a loss of $67.3 million for the corresponding period last year.

Significant items after tax comprised the profit on the sale of the Australasian Food Can and Aerosol business of $11.2 million, the gain arising from the equity issue by AMVIG of $2.2 million, net restructuring gain in Australasia, which primarily relates to the Fibre Packaging turnaround plan, of $1.9 million and the Flexibles market sector rationalisation expense of $46.3 million.

Segmentals

During the year, the consolidated entity did not change its reportable business segments. However, the comparative information for the half year ending December 31, 2007 and June 30, 2007, has been restated to report discontinued operations for the divestments of the European PET packaging business in PET Packaging and the Australasian Food Can and Aerosols business.

During the half, a detailed review of the corporate costs of the consolidated entity was undertaken and it was identified that $17.0 million (2006/07: $16.7 million) of the total of $41.9 million (2006/07: $43.9 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 (All Operations)	Jul / Dec 2006 **AUD **	Jul / Dec 2007 **AUD **	% Change	Jul / Dec 2006 **USD **	Jul / Dec 2007 **USD **	% Change
Net sales (mill)	1,971	1,456	(26.1)	1,509	1,263	(16.3)
PBIT(mill)	118.0	99.3	(15.9)	90.4	86.2	(4.6)
OperatingMargin(%)	6.0	6.8		6.0	6.8
Averagefunds employed (mill)	2,498	1,872		1,913	1,624
PBIT/AFE(%)	9.5	10.6		9.5	10.6
Average exchangerate	0.77	0.87
Profit (Continuing Businesses)	Jul/ Dec 2006 **AUD **	Jul / Dec 2007 **AUD **	% Change	Jul / Dec 2006 **USD **	Jul / Dec 2007 **USD **	% Change
Net sales (mill)	**1,531 **	1,456	(4.9)	1,172	1,263	7.8
PBIT(mill)	95.4	99.3	4.1	72.9	86.2	18.2
OperatingMargin(%)	6.2	6.8		6.2	6.8
Averagefunds employed (mill)	2,082	1,872		1,595	1,624
PBIT/AFE(%)	9.1	10.6		9.1	10.6
Average exchangerate	0.77	0.87
Cash Flow (All Operations)	Jul / Dec 2006 AUD (mill)	Jul / Dec 2007 AUD (mill)	% Change	Jul / Dec 2006 USD (mill)	Jul / Dec 2007 USD (mill)	% Change
PBITDA	220.3	179.0	(18.7)	168.7	155.3	(7.9)
Base Capital Expenditure	(62.9)	(62.8)		(48.2)	(54.5)
Movementin Working Capital	51.0	(16.3)		39.1	(14.1)
Significantitems	(2.4)	-		(1.8)	-
**Operating Cash Flow **	206.0	99.9	(51.5)	157.8	86.7	(45.1)
GrowthCapital Expenditure	(38.0)	(41.2)		(29.1)	(35.9)

		Jul / Dec		Jul / Dec		% Change		Jul / Dec		Jul / Dec		%
Cash Flow (All Operations)		2006		2007				2006		2007		Change
		AUD (mill)		AUD (mill)				USD (mill)		USD (mill)
PBITDA		220.3		179.0		(18.7)		168.7		155.3		(7.9)
Base Capital Expenditure		(62.9)		(62.8)				(48.2)		(54.5)
Movementin Working Capital		51.0		(16.3)				39.1		(14.1)
Significantitems		(2.4)		-				(1.8)		-
**Operating Cash Flow **		206.0		99.9		(51.5)		157.8		86.7		(45.1)
GrowthCapital Expenditure		(38.0)		(41.2)				(29.1)		(35.9)

Group

Amcor PET Packaging had a strong first half performance. Profit before interest and tax (PBIT), on a continuing business basis and expressed in local currency terms, was up 18.2% to US$86.2 million. The business benefited from higher volumes and a favourable product mix with the operations in both North America and Latin America improving on the first half of the 2006/07 year.

Returns, measured as PBIT over average funds employed, increased from 9.1% to 10.6%.

Capital expenditure was US$90.4 million, comprising US$54.5 million for base capital spending and US$35.9 million for growth capital to expand capacity in the custom container market.

Working capital performance was excellent. On a continuing business basis, working capital at December 2007 was $60 million lower than at December 2006. From June 2007 to December 2007 working capital increased by $14.1 million due to seasonal impacts.

In June 2007, the European PET business was sold. For the first half of the 2006/07 year, the European PET business made US$17.5 million.

Volumes for the half were up 6.6% to 14.1 billion units. Custom container volumes, which represent 29% of the overall product mix, were up 29% over the prior year due largely to volumes associated with the new Wytheville plant in the United States. Carbonated soft drink (CSD) and water volumes were down 0.6% with volumes in this segment higher in Latin America and lower in North America.

North America

The North American business had a strong first half with solid volume growth, an improved product mix and excellent operating performance. Volumes were up 4.5% for the half, with custom containers increasing 32.6%. Custom containers represented 35.6% of the total volumes for the half. Volumes in the carbonated soft drink (CSD) and water categories were 6.4% lower reflecting the strategic decision to increase the focus on custom containers and be more selective in the CSD and water category.

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There has been substantial progress in growing the custom hot-fill category including:

• The new US $80 million facility in Wytheville, Virginia (USA), which supplies Gatorade containers is now in full production. This plant is located adjacent to a new PepsiCo filling facility, and has a capacity of over 1 billion units annually; and

• The new panel-less heat set container, PowerFlex[TM] , continues to gain momentum in the market place. More than 20 brands of premium beverages have been introduced in PowerFlex[TM] , including two national brands. Capacity is now in place to supply the package on both the East and West coasts and the business is continuing to build capacity to meet the growing demand.

During the past three years, the business in North America has undertaken a significant footprint rationalisation, together with improvements in manufacturing performance. This has positioned it with an excellent value proposition based on an efficient manufacturing platform and industry leading technology. The results in the first half reflect the benefits from this three year program.

The business has also been successful in managing the pass through of cost increases to customers. Resin cost movements, which are the largest input to the manufacturing cost, are passed onto customers via established contract mechanisms. The business has also made substantial progress in recovering energy cost increases via contractual pass through. Historically, improvements in operating efficiency have offset labour and other inflationary cost increases. Going forward these components of the cost base are expected to increase at a greater rate than in the past and it may be necessary to recover these increasing costs via higher selling prices.

Latin America

The business in Latin America also had a solid first half. Volumes were up 10%, with CSD and water up 8.5% and custom containers up 18.1%. Custom containers now comprise 16.8% of the product mix, up from 15.7% for the first half of 2006/07. The region has favourable demographics, increasing per capita income and ongoing replacement of glass with PET that combined will continue to support higher overall growth.

The operations in Mexico continue to deliver improved performance and the turnaround program remains on schedule to deliver improved earnings of US$16 million over two years. The business is now better positioned for growth and achieved solid volume growth in the first half.

Across Central and South America, earnings were up on the same period last year with strong performances in Argentina, Brazil and Venezuela. In Brazil the footprint changes to move on-site with a large customer has been successfully completed and in Venezuela there was a favourable mix shift to custom containers.

All other countries met or exceeded last year’s performance.

Bericap

The majority-owned joint venture in Bericap North America is managed and reported within the PET Packaging segment. This business has one plant in Ontario, Canada and one in California in the USA. A third plant is under construction in the USA and is expected to be operational in March 2008.

The sales and margins from the plant in Canada were adversely impacted by the high Canadian dollar against the US dollar and earnings for the half were substantially lower.

Outlook

The PET Packaging outlook for the second half of the year is for continued strong performance.

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		Jul / Dec		Jul / Dec		% Change
Profit (All Operations)		2006		2007
		**AUD **		AUD
Net sales (mill)		**1,294 **		1,216		(6.0)
PBIT(mill)		121.8		120.6		(1.0)
OperatingMargin(%)		9.4		9.8
Averagefunds employed (mill)		1,869		1,830
PBIT/AFE(%)		13.0		13.2

		Jul / Dec		Jul / Dec		% Change
Profit (Continuing Operations)		2006		2007
		**AUD **		AUD
Net sales (mill)		1,172		**1,134 **		(3.2)
PBIT(mill)		108.5		112.9		4.1
OperatingMargin(%)		9.2		10.0
Averagefunds employed (mill)		1,742		1,746
PBIT/AFE(%)		12.4		12.9

		Jul / Dec		Jul / Dec		% Change
Cash Flow (All Operations)		2006		2007
		AUD (mill)		AUD (mill)
PBITDA		187.8		184.5		(1.8)
Base Capital Expenditure		(62.6)		(9.7)
Movementin Working Capital		(45.7)		(96.1)
Significantitems		(82.1)		(33.7)
**Operating Cash Flow **		(2.6)		45.0		-
GrowthCapital Expenditure		-		-

Australasian Group

Amcor Australasia had a solid first half. Profit before interest and tax (PBIT), on a continuing business basis, increased 4.1% to $112.9 million.

The Food Can and Aerosols businesses were sold on 31 October, 2007. For the first half 2006/07 these businesses contributed $13.3 million and for the four months to October 2007 contributed $7.7 million.

Returns for the continuing operations, measured as PBIT over average funds employed, increased from 12.4% to 12.9% for the half.

Cash significant items of $33.7 million related to the turnaround plan in the fibre packaging business.

Base capital expenditure for the half was $9.7 million. This comprised gross expenditure of $66.5 million and proceeds from disposals, excluding the sale of the Food Can and Aerosol business, of $56.8 million.

Working capital movement, on a continuing business basis was a $3.7 million reduction from December 2006 to December 2007 and $78.5 million increase, due to seasonal increases, from June 2007 to December 2007.

The operating cash flow for the half was $45.0 million.

Fibre

The fibre business experienced a challenging half with earnings broadly in line with the first half of the 2006/07 year.

Turnaround Plan

In August 2006, the business commenced a comprehensive program to recapitalise and rationalise the fibre operations in Australasia.

The key elements of this program were completed during the first half of the year. The pace of the program has been aggressive and included: the closure of four sites, a headcount reduction of 450 people and investment in new conversion machinery. At the same time the business undertook the installation of a new SAP/ERP system.

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This program has resulted in substantial cost reductions, which from the second half of 2007/08 will be an annualised $40 million per annum.

During this program, the business experienced significant disruptions to the operations, particularly as equipment was relocated. This resulted in a period of unacceptable delivery reliability. To address this issue, the business undertook additional overtime, increased transportation costs and outside warehousing.

Notwithstanding these efforts, volumes for the second half of the year were 8% lower, with just over half of this reduction from the operations in Victoria. There was a change of senior management in Victoria in November, and over the past four months service levels have substantially improved. Across Australia around half of the volume loss was to competition, largely smaller customers due to poor service. The balance was due to a combination of lower overall demand, customers relocating offshore or selective exit from unprofitable business.

Since October the focus has been on sustaining a high level of delivery in full, on time (DIFOT). A number of programs to address this issue have been implemented and for February the DIFOT has been 95%, up from approximately 70% in October 2007.

In the short term, this improved DIFOT performance has resulted in additional costs to the business. As the operations become more stable and manufacturing is appropriately balanced across the sites, costs will reduce. This will include improving the allocation of short and long run business and ensuring volumes, especially short run, are correctly priced.

In this period of transition it has not been possible to fully recover cost increases, especially higher wastepaper costs, through higher selling prices.

The business is determined that the volumes lost through this transition period will be recovered and there is evidence this process has commenced. As this occurs it is critical that the business maintains a high DIFOT level.

In summary, the business undertook a substantial change program that included all aspects of the operations. The timeframe was deliberately condensed which resulted in a number of service issues and manufacturing inefficiencies. This resulted in a loss of volume which was particularly acute in Victoria. The focus for the past three months has been on restoring an acceptable DIFOT level which has now been achieved.

New recycled paper mill

Amcor is committed to having a low cost, efficient corrugated box business in Australasia. The corrugated and box conversion businesses have been extensively restructured to deliver this outcome.

Amcor is announcing today, that it is investing a net $230 million in a new recycled paper mill to be located at Botany, NSW. The decision has been made to have a large scale, single site operation in Australia. The machine will have a capacity of 345,000 tonnes per annum and be capable of producing a wide range of paper grades. The ability to offer the lightest weight papers in the Australian market will substantially enhance the value proposition for customers and be an important driver in delivering more environmentally friendly packaging. After completion of the new recycled paper mill, the carbon footprint for the paper manufacturing operations will be 34% lower than the current level and the water usage will reduce by 26%.

The mill will be constructed during the next 36 months and at the end of this period the existing mill at Fairfield, Victoria will close.

The new mill will position Amcor as the low cost producer in the Australasian market offering a substantially improved product range and a fully integrated paper and corrugated business. The initial benefits from the new machine, through lower operating costs, are around $40 million per annum, however this is expected to increase once the full benefits of integration with the corrugated business is completed.

The outlook for the fibre business over the next four years is for substantial upside from the existing base. This will come from a combination of improved operating efficiencies in the corrugated business, the new recycled paper mill and a new kraft paper contract from April 2010.

Flexibles

The flexibles business, which consists of four operating units: polyethylene, laminations, New Zealand and multiwall sacks, had a good first half.

Sales were modestly lower due to the closure of the plant at East Tamaki, New Zealand.

In the polyethylene business, there was sound performance at the plants in Queensland and Victoria supported by ongoing good growth in the fresh food market. A new press is being installed at the plant in Moorabbin to meet growing demand. The industrial film business continues to be impacted by the high Australian dollar.

In the laminations business there has been considerable restructuring and new capital investment during the past few years. The benefits from this program are now being realised via improved operating performance.

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The business in New Zealand had a stronger half, due mainly to the closure of the loss making site at East Tamaki. Around 85% of sales from this site have been successfully transferred to plants in Australia. The barrier film business had a difficult half as the high New Zealand dollar impacted its ability to export, and the drought in Australia had a negative impact on volumes to the dairy industry.

Rigids

The rigids business had a solid first half. Volumes in beverage cans were up 2.5% as the industry continues to promote multipack soft drinks and the ready to drink category. The business has spent $33 million upgrading the end making capacity at Ballarat and installing additional capacity in Brisbane to produce new can sizes and designs, including slim line cans.

The glass wine bottle business had another strong half, with a favourable sales mix and continued productivity improvement. There continued to be good growth in the premium bottle segment, including the new diamond shaped bottle for Rosemount.

Outlook

The outlook for the Australasian business is for continued solid performance from the non-fibre operations. In the fibre operations there is a clear path for improvement that is being implemented and will deliver substantial improvements in the medium term.

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		Jul / Dec		Jul / Dec				Jul / Dec		Jul / Dec
Profit (All Operations)		2006		2007		% Change		2006		2007		% Change
		AUD		**AUD **				€		€
Net sales (mill)		1,498		1,441		(3.8)		**892 **		886		(0.7)
PBIT(mill)		85.1		83.1		(2.4)		50.7		51.1		0.8
OperatingMargin(%)		5.7		5.8				5.7		5.8
Averagefunds employed (mill)		1,538		1,440				916		885
PBIT/AFE(%)		11.1		11.5				11.1		11.5
Average exchangerate		0.60		0.61

		Jul / Dec		Jul / Dec				Jul / Dec		Jul / Dec
Cash Flow (All Operations)		2006		2007		% Change		2006		2007		% Change
		AUD (mill)		AUD (mill)				€ (mill)		€ (mill)
PBITDA		136.9		133.4		(2.6)		81.5		82.1		0.7
Base Capital Expenditure		(27.4)		(52.0)				(16.3)		(32.0)
Movementin Working Capital		(50.8)		(26.2)				(30.2)		(16.1)
Significantitems		(31.1)		(22.4)				(18.5)		(13.7)
**Operating Cash Flow **		27.6		32.8		18.8		16.5		20.3		23.0
GrowthCapital Expenditure		(0.8)		(21.5)				(0.5)		(13.2)

Flexibles Group

Amcor Flexibles had a solid first half, with profit before interest and tax (PBIT) up 0.8% to €51.1 million. Both the Food and Healthcare businesses had solid earnings improvement however earnings for the tobacco packaging operations were lower.

Returns, measured as PBIT over average funds employed, increased from 11.1% to 11.5%.

The business made substantial improvement in the management of working capital, particularly in the Food Flexibles business. Working capital at December 2007 was €44 million lower than at December 2006. From June 2007 to December 2007 working capital increased, due to seasonal impacts, by €16.1 million.

Base capital expenditure was €32 million. Growth capital spending was €13.2 million and included spending on the new tobacco packaging plant in the Ukraine and the flexibles packaging plant in Poland, which is due to commence operations in May 2008.

Significant items were €36.2 million of which €13.7million was cash. The operating cash flow for the half was €20.3 million.

Food

Amcor Flexibles Food is a pan European business consisting of 26 plants in 13 countries serving all major food market segments. The business also coordinates the wider strategy for flexible food packaging across other geographical regions.

Earnings for the half were up strongly as the business continued to lower its cost base, improve product mix and recover raw material cost increases in a timely manner. Volumes were 3% lower due in part to the closure of two plants during the second half of 2006/07 and the selective forgoing of unprofitable business.

The working capital performance for the half was excellent with the average working capital to sales ratio reducing from 14.9% to 12.1%.

A key focus for the current half is the ongoing success in the recovery of cost increases. Although raw material costs increased only modestly during the first half, the second half has commenced with more substantial increases. The business has implemented a comprehensive plan to recover raw material and other inflationary cost increases which is being accepted in the marketplace. Longer term the outlook for the cost of resin based materials is positive with substantial new capacity coming into production through calendar 2008.

A key initiative for ongoing improvement is an extensive repositioning program being undertaken by the business, named “Flex 1”. The first phase of this program was the successful closure of two plants, one in the United Kingdom and one in Germany, during the 2006/07 year. These closures were achieved ahead of schedule with costs substantially below budget and more than 75 % of the volumes retained and transferred to other sites.

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In April 2007, the remaining components of the program were 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 impact both the Food and Healthcare businesses and 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. The program targets to reduce the number of manufacturing facilities in Europe by approximately 25% with sites either closed or sold. The remaining plants will have greater scale and be more technologically focused.

During the first half there was substantial progress in this program. In the United Kingdom (UK), consolidation of two flexographic printing sites has commenced with the closure of the site in Ilkeston and relocation of the volume to a nearby site at Evesham. This process will be complete by the end of the 2007/08 year. The Evesham plant will double in size, delivering improved operating efficiencies and a lower cost base, ensuring its long term viability.

In Lund, Sweden there is a restructuring plan, to be completed by the end of the 2007/08 year, to reduce the headcount by 100 and realign the plant around core technologies with a smaller range of conversion capabilities. To further align the manufacturing base with market requirements, the pharmaceutical related business will be gradually transferred to other sites.

In film extrusion the number of sites will be reduced from 9 to 3 during the next two years. This will deliver substantial improvement to operating costs and result in a 40% decrease in the number of extrusion lines without reducing the overall manufacturing capacity. The business is also undertaking extensive resin rationalisation trials that will reduce complexity, increase run lengths and increase resin procurement leverage for the extrusion operations.

The first step in this program is the closure of the film extrusion operations at Lyngby in Denmark. The volumes from this plant will be transferred to other extrusion locations and the site will close in the first quarter of the 2008/09 year. The UK extrusion activities will also be rationalised with the Ledbury extrusion operations relocated to the extrusion plant at Ilkeston.

Further announcements regarding plant rationalisation will be made during the coming six months.

An important component of future growth is expansion into Central and Eastern Europe supporting the increasing number of multinational customers building capacity in the region. The plants in Russia and Poland achieved combined volume growth of 15% for the half.

The new €30 million plant in Poland, dedicated to PepsiCo for snack food products, remains on schedule 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.

Healthcare

Amcor Flexibles Healthcare comprises Amcor’s flexible packaging activities in the Americas and healthcare flexible 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 employs over 2,200 co-workers at 16 manufacturing facilities in 10 countries. In addition, the group co-ordinates strategy and commercial activity with Amcor’s healthcare flexible packaging activities in Asia.

There was a solid improvement in earnings for the half, driven by continued improvement in product mix as well as significant improvements in manufacturing performance.

In the Americas sales increased 5%. The focus on sales and marketing excellence is helping the business get closer to its customers and developing a collaborative, cross functional approach to commercial decisions.

The European business increased sales by 2%. The increase reflected solid gains in high-performance products, offset by a move away from non-contributing standard products.

Although raw material costs increased during the period, they were successfully recovered with minimal impact to earnings. The business has comprehensive plans to recover increases in both raw materials and other inflationary costs in the current half.

As part of the joint European footprint project undertaken with Amcor Flexibles Food, the business is making significant investments at key extrusion sites. These investments will lead to more efficient plants with lower overhead costs and stronger technical capabilities. The benefits of these investments are expected to begin to accrue in the 2008/09 financial year.

Amcor Rentsch

Amcor Rentsch has strategic leadership of Amcor’s global tobacco packaging business and operational responsibility for the plants in Europe. The business has six plants focused on tobacco cartons.

Sales for the half were flat at €152 million, however this figure includes the impact of closing the specialty carton plant in Switzerland in November 2007. Sales in the tobacco cartons were up 0.8%.

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During the half there was a significant shift in the business mix to more complex products especially in Russia and Eastern Europe. The key drivers for this increasing complexity are:

• More value adding features, including embossing and hot foil stamping, as consumer preference moves to higher value brands;

• Introduction of Graphical Health Warnings (GHW); and

• Shorter run lengths due to an increased number of SKU’s.

Amcor Rentsch is well positioned to manage this complexity and has been successful in securing new business. In the short term, the increased complexity together with significant new products entering the portfolio has resulted in regional overtrading.

Consequently, due to a lack of suitable manufacturing capacity in the markets where demand is growing, it has been necessary in the short term to outsource production to third party manufacturers in Western Europe for supply into Eastern Europe and Russia. Amcor Rentsch absorbed much of the additional costs for this manufacturing including substantial transportation costs.

During the half, cigarette production in Western Europe has increased with a major customer transferring volumes from the US to Europe. Amcor Rentsch has been successful in obtaining some of this volume.

Finally demand in Eastern Europe and Russia continued to expand and Amcor Rentsch was contracted for 100% supply for a product that has experienced considerably stronger growth than anticipated.

In summary:

• The available machine hours across the tobacco packaging industry has reduced due to increased complexity and there are additional cigarettes being manufactured in Western Europe;

• Amcor Rentsch has experienced strong growth in demand for more complex products in Eastern Europe and Russia;

• There was higher than anticipated growth in other products in Russia; and

• All this resulted in a short term reduction in earnings due to subcontracting to third parties and lower operating efficiencies.

To address these capacity constraints in Eastern Europe and Russia the business is investing €22 million at the plants in Russia and Poland to increase capacity and enable additional value add production at those sites.

In Russia, a new printing press and hot foil stamping machine will be installed. The new press will add capacity to meet the growing market demand, as well as improve the operating efficiency. The hot foil stamping machine will enable production of more complex and innovative products.

In Poland, new offset capacity has been installed to meet growing demands for the complex short run volumes and additional cutting and creasing equipment installed to improve manufacturing efficiency.

The new plant in the Ukraine has commenced production and in the short term will supply both the local market as well as export volumes to other regions in Eastern Europe and Russia.

Strategically this is an attractive market segment that has developed an excellent manufacturing footprint focusing on complexity and value added products. The outlook for 2008/09 is for considerable earnings improvement as the business benefits from the new capital expenditure and a full year from the plant in the Ukraine.

Outlook

The Flexibles business is encountering an environment of rising input costs and the possibility of slowing economic conditions making the outlook over the next few months more uncertain than in previous periods. The results for January and the first half of February have been consistent with the same period last year.

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Profit (All Operations)	Jul / Dec 2006 **AUD **	Jul / Dec 2007 **AUD **	% Change	Jul / Dec 2006 **USD **	Jul / Dec 2007 **USD **	% Change
Net sales (mill)	**652 **	572	(12.3)	499	**497 **	(0.4)
PBIT(mill)	36.3	36.3	-	27.8	31.5	13.3
OperatingMargin(%)	5.6	6.3		5.6	6.3
Averagefunds employed (mill)	334	238		255	207
PBIT/AFE(%)	21.8	30.4		21.8	30.4
Average exchangerate	0.77	0.87
Cash Flow (All Operations)	Jul / Dec 2006 AUD (mill)	Jul / Dec 2007 AUD (mill)	% Change	Jul / Dec 2006 USD (mill)	Jul / Dec 2007 USD (mill)	% Change
PBITDA	43.0	43.3	0.7	32.9	37.6	14.3
Base Capital Expenditure	(2.2)	29.2		(1.7)	25.3
Movementin Working Capital	2.6	(15.1)		2.0	(13.1)
Significantitems	-	-		-	-
**Operating Cash Flow **	43.4	57.4	32.3	33.2	49.8	50.0
GrowthCapital Expenditure	-	(0.1)		-	(0.1)

Sunclipse Group

Amcor Sunclipse had a solid first half with reported profit before interest and tax (PBIT) up 13.3% to US$31.5 million.

Returns measured as PBIT over average funds employed, increased from 21.8% to 30.4%.

The PBIT result included a positive impact from the sale and lease back of the Amcor Sunclipse head office, partly offset by writedowns on IT systems and other one-off expenses. Adjusting for this benefit, underlying earnings were in line with the first half last year.

Base capital expenditure was $0.9 million. There were also proceeds from the sale of land of US$26.2 million. Working capital at December 2007 was US$4.7 million lower than at December 2006. From June 2007 to December 2007 working capital increased, due to seasonal impacts, by US$13.1 million.

The half year result reflected solid operating performance in an environment of rising costs and more difficult economic conditions. The distribution business had a good half and although sales were flat the gross margin improved. The success of building new sales channels has improved the efficiency of the 350 sales representatives and over time should assist in increasing market share, particularly in California.

The rising oil price, which was $96 per barrel in November 2007 compared to $60 per barrel in November 2006, lead to increased costs for a range of products including polypropylene, strapping and protective packaging. Linerboard costs also increased $40 per tonne in September 2007 resulting in box price increases of around 10%. The business has spent considerable effort during the past two years to build processes and systems to successfully manage volatility in input costs. This helped ensure that cost increases in the corrugated board and distribution divisions were passed on in a timely manner.

The manufactured products group, which takes corrugated board and converts it into boxes, had a difficult half. It was impacted by a particularly competitive environment in the Californian box market making it difficult to fully recover cost increases in a timely manner.

The corrugated business had a solid half with good operating efficiency and sales in line with the first half of 2006/07.

Outlook

The economic outlook in the United States remains uncertain and should it deteriorate from current levels, this could impact earnings. The results for January and the first half of February have been consistent with the same period last year.

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		Jul / Dec		Jul / Dec		% Change		Jul / Dec		Jul / Dec		% Change
Profit - Consolidated Entities		2006		2007				2006		2007
		**AUD **		**AUD **				**SGD **		**SGD **
Net sales (mill)		63		58		(7.9)		76		75		(1.3)
PBIT(mill)		6.2		5.7		(8.1)		7.5		7.4		(1.3)
OperatingMargin(%)		9.9		9.8				9.9		9.8
Averagefunds employed (mill)		59.9		58.0				71.8		74.5
PBIT/AFE(%)		20.8		19.8				20.8		19.8
Average exchangerate		1.20		1.29
		Jul / Dec		Jul / Dec		% Change		Jul / Dec		Jul / Dec		% Change
Profit after tax from		2006		2007				2006		2007
investment in AMVIG		**AUD **		**AUD **				**SGD **		**SGD **
PAT(mill)		10.4		13.7		31.7		12.5		17.6		40.8
AFE~~(2)~~ (mill)		136.0		139.5				163.6		180.0
AFE~~(1)~~ (mill)		294.7		287.1				353.6		370.4
PAT/AFE~~(2)~~(%)		15.3		19.6				15.3		19.6
PAT/AFE~~(1)~~ (%)		7.1		9.5				7.1		9.5

~~(1) Including AMVIG fair value~~

(2) Excluding AMVIG fair value

		Jul / Dec		Jul / Dec		% Change		Jul / Dec		Jul / Dec		% Change
Cash Flow (All Operations)		2006		2007				2006		2007
		AUD (mill)		AUD (mill)				SGD (mill)		SGD (mill)
PBITDA(consolidated entities)		8.5		7.7		(9.4)		10.2		9.9		(2.9)
Dividendsreceived		-		3.4				-		4.4
Base Capital Expenditure		1.1		(2.4)				1.3		(3.1)
Movementin Working Capital		1.3		(1.1)				1.6		(1.4)
Significantitems		-		-				-		-
**Operating Cash Flow **		10.9		7.6		(30.3)		13.1		9.8		(25.2)
GrowthCapital Expenditure		(19.4)		(15.7)				(23.3)		(20.2)

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 35.4% 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 profit after tax from the investment in AMVIG.

As AMVIG has not yet reported its full year earnings to 31 December 2007, the profit taken up in Amcor Asia’s half year earnings is management’s estimate of earnings, based on publicly available information. Any adjustment required following AMVIG’s profit announcement, will be taken up in Amcor Asia’s full year results.

During the half, Amcor’s ownership of AMVIG reduced from 41.05% to 33.5%. This reduction in ownership was due to AMVIG issuing 200 million shares as part payment of the Brilliant Circle acquisition, completed in October 2007. On the 6th February Amcor purchased 18.756 million shares representing 1.9% of AMVIG’s share capital at a price of HK$9.50, increasing it’s shareholding in AMVIG to 35.4%.

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Consolidated entities

For the controlled entities, PBIT for the year was in line with the prior year at SGD 7.4 million. Returns measured as PBIT over average funds employed were 19.8%.

The tobacco packaging business had a solid first half improving the product mix and benefiting from the recent capital investment at the plant in Malaysia. The business is well positioned to meet changing needs in the market place including the move to graphical health warnings in Malaysia.

The flexibles operations also delivered a sound result although slightly below the first half last year. The plant in Southern China completed the relocation to a new facility during the half and this negatively impacted earnings. The new facility, with larger and more modern equipment, has created the opportunity for more accelerated growth in the region.

Footnote

The funds invested in AMVIG in Amcor’s accounts consist of cash payments of SGD 126 million to purchase 327.5 million shares in the publicly-listed company at an average price of HK$ 3.22 per share, together with the injection of the two tobacco packaging operations in China (Beijing and Qingdao), which had a carrying value of Sing$69 million.

The carrying value of AMVIG at December 31, 2007 in Amcor’s accounts is SGD 365.7 million, with the difference between this amount and the invested funds being predominately on accounting adjustments for “fair value market up lift” at the time of exercising options to acquire additional shares.

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Significant Items (TBF)
AUD (mill)	Jul / Dec 2006	Jul / Dec **2007 **
Consolidated significant items
Significant items before related income tax expense
Income
Closures businessgain on disposal and impairment	6.8	-
Gains arisingfrom associate’s equityissue	-	2.2
Disposal of Australasian Food Can & Aerosols business	-	11.7
Expense
PET business integration and restructure	(6.1)	-
Australasian restructuring	(67.4)	(4.1)
Flexibles market sector rationalisation	(31.3)	(58.8)
Significant items before related income tax expense	(98.0)	(49.0)
Income tax on significant items	30.7	18.0
Significant items after related income tax expense	(67.3)	(31.0)
Significant items attributable to:
Members of Amcor Limited	(67.3)	(31.0)
Minorityinterest	-	-

**Details of Consolidated **	**Details of Consolidated **	**Significant Items Before Income Tax Jul / Dec 2007 **	**Significant Items Before Income Tax Jul / Dec 2007 **	**Significant Items Before Income Tax Jul / Dec 2007 **	**Significant Items Before Income Tax Jul / Dec 2007 **
AUD (mill)	Redundancy	Plant Closure	Disposal of Controlled Entities	Other (a)	Asset Impairments	**Total **
PET	-	-	-	-	-	-
Australasia	(7.6)	(9.3)	11.7	12.8	-	7.6
Flexibles	(28.6)	(14.3)	-	(5.6)	(10.3)	(58.8)
Sunclipse	-	-	-	-	-	-
Asia	-	-	-	2.2	-	2.2
Closures	-	-	-	-	-	-
**Total **	(36.2)	(23.6)	11.7	9.4	(10.3)	(49.0)
(a) Includes thegain onpropertydisposals in Australasia.

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	Jul / Dec 2007 Cash Flow By Business Group – All	Jul / Dec 2007 Cash Flow By Business Group – All	Jul / Dec 2007 Cash Flow By Business Group – All	Jul / Dec 2007 Cash Flow By Business Group – All	Operations	Operations
AUD(mill)	PET	Australasia	Flexibles	Sunclipse	Asia	Corporate	Consolidated
PBITDA	179.0	184.5	133.4	43.3	21.4	(24.1)	537.5
Interest	-	-	-	-	-	(88.4)	(88.4)
Tax	-	-	-	-	-	(27.4)	(27.4)
Base capital expenditure	(62.8)	(9.7)	(52.0)	29.2	(2.4)	(2.0)	(99.7)
Cash significant items	-	(33.7)	(22.4)	-	-	-	(56.1)
(Increase) / decrease in working capital	(16.3)	(96.1)	(26.2)	(15.1)	(1.1)	0.7	(154.1)
Other items	-	-	-	-	(10.3)	(8.6)	(18.9)
Operating cash flow	99.9	45.0	32.8	57.4	7.6	(149.8)	92.9
Dividends Paid	(3.6)	(0.9)	-	-	-	(150.3)	(154.8)
Free cash flow	96.3	44.1	32.8	57.4	7.6	(300.1)	(61.9)
Divestments *	823.1	145.7	1.7	-	-	-	970.5
Growth capital expenditure/acquisitions	(41.2)	-	(21.5)	(0.1)	(15.7)	-	(78.5)
Net proceeds from share issues	7.2	(3.5)	-	-	-	(162.2)	(158.5)
Foreign exchange rate changes	-	-	-	-	-	(11.8)	(11.8)
Net cashgenerated	885.4	186.3	13.0	57.3	(8.1)	(474.1)	659.8
Decrease in net debt							659.8

• Divestments include the return of $112 million of the $177 million in cash (as disclosed in the Full Year accounts) that the European PET Packaging business held on disposal. This cash was returned to Amcor via the repayment of inter-company loans in the period to closing.

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