11 December 2007 Amcor Management Briefing

Ken MacKenzie

Agenda

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Introduction – Ken MacKenzie
• Presentations and Q & A’s from: – Ron Delia
– Gerard Blatrix
• Morning tea
• Presentations and Q & A’s from: – Jerzy Czubak
– Peter Brues
• Sandwich lunch
• Presentations and Q & A’s from: – Eric Bloom
– Billy Chan
• Summary – Ken Mackenzie

The Way Forward - Agenda

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EXECUTION FOCUS
Strong Customer Capital
market & market Low cost discipline
positions focused
CULTURAL CHANGE
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The Way Forward

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EXECUTION FOCUS
positionsmarket Strong and market Customer focused Low cost disciplineCapital
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Solid progress across all aspects of the agenda
Execution focus a key priority to maintain momentum
More emphasis on developing the growth agenda

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Value Plus Building Sales and Marketing Excellence

Sydney December 2007

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Value Plus Debrief

Context: Value Plus & The Way Forward

Initiative overview

Progress to date

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Value Plus and the Way Forward

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EXECUTION FOCUS
Improve
shareholder
Strong Customer
Low Capital
value
market and market
cost discipline
positions focused
CULTURAL CHANGE
– Universally acknowledged need to upgrade commercial capabilities
– Potential source of value creation and competitive advantage
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Value Plus and the Way Forward

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EXECUTION FOCUS
Improve
shareholder
Strong Customer
Low Capital
value
market and market
cost discipline
positions focused
CULTURAL CHANGE
Value Plus
…Building sales & marketing excellence across Amcor
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Objectives of Value Plus

Value Plus is an Amcor-wide, multi-year initiative to: 1. Improve returns by identifying and capturing commercial opportunities

AND

2. Upgrade the Sales & Marketing capabilities across the company

Building competitive advantage, ensuring sustainability

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Value Plus Debrief

Context: Value Plus & The Way Forward

Initiative overview Progress to date

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Holistic Value Plus initiative
Vision
Sales &
marketing
excellence
•
Strategic Marketing
Capabilities •
Value Selling/Pricing
• Customer Back Innovation
•
Transactional Pricing
•
Key Account Management
• Sales Force Effectiveness
•
Contract Management
•
Tactical Marketing
Customer & product Performance tracking
Enablers Talent
profitability (KPIs)
Voice of the Customer (VOC)
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Vision: Sales & Marketing Excellence

“Unique insights via deeper customer and market understanding”

“Best commercial talent in the packaging industry” “Sustainable Financial Impact ” “Elevated stature of Marketing & Sales” “Improved execution through upgraded commercial capabilities”

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“Voice of the Customer” (VOC)

Example

Account Support	Account Support	Account Support
	Rating	Comment
Quality of Account Support	8.0	“They are good at follow through and open communication.”
Knowledgeable About Business	8.3	“Amcor knows our business pretty well.”
Effective at Bringing Value Added Solutions	7.3	“Amcor should be more proactive in bringing new ideas to us.”
Provide Proactive Communications	8.0	“They should be more focused in our account.”
How Responsive	8.0
Problem Solving	7.3	“Amcor should help us make things work better.”

Customer Satisfaction Metrics	Customer Satisfaction Metrics	Customer Satisfaction Metrics
	Importance	Amcor
Overall customer satisfaction	--	8.0
Overall product quality	--	8.5
Delivery when requested	--	8.8
Ease of Doing Business	9.5	8.8
Value for the price	9.5	9.3
Resolves problems quickly and effectively	9.8	8.0
Responsive to price requests	9.3	9.3
Responsive to changing forecasts	9.7	9.3
Responsiveness to new development	9.3	7.7
Responsiveness to sample	9.0	8.7
Accounts receivable resolution	9.3	9.0
Order processing/ order confirmation	Insufficient data

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Talent: KPIs and dashboards

Example

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BG Pivotal Role Talent Review Performance BG Pivotal Role Talent Review Potential Group Pivotal Role Talent Review- Performance
Outcomes -current cycle Outcomes -current cycle Outcomes
131 20 16 29 21 37 254
100% 100%
100%
80% 80%
60% 80% 60%
40% 60% 40%
20% 20%
0% Aust Performance Sun FH FF Ren PET Total Exptd 40%20% 0% Head ofS&M SalesMgr KAM AM Reps Total
Meets some Meets most 0% Potential Meets some Meets most
Dvp/Meets All Exceeds Aust Sun FH FF Ren PET Total Dvp/Meets All Exceeds
Significantly exceeds Intermediate High Outstanding Significantly exceeds
Group Pivotal Role Talent In’s Recruitment Pivotal Role Talent Review Meetings -completed
Actual vs. Target Pipeline Group Pivotal Role Talent:- Outs/Net Change & planned
50
80 Pipeline
40
70 2 30 Reviews
60 20 25 completed Last Next
5040 5 43 38 42 10 20 10 12 15 SunAA 22 Feb 07Mar 07 Jun 07Jul 07
30 66 8 30 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 PET 3 Jan 07 Sep 07
20 35 FF 2 Feb 07 TBD
10 25 Invol outs (ext) Invol outs (int) FH 2 Feb 07 Aug 07
3 Lack of career opps Personal reasons Rentsch 2 Jan 07 Jul 07
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Work demands/travel Retirement
Remuneration Lack of training & dev
External Ins Internal Ins Pipeline Other Promotions
Net ins/outs
Excludes AFF Excludes AFF
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Talent: Key appointments in leadership roles

Sales & Marketing Leadership	Sales & Marketing Leadership	Council
Australasia	• Corporate • Fibre	– Michael Todd – Paul Ward
	• Flexibles	– Peter Briscoe
	• Healthcare	– Tom Cochran
Flexibles	• Food	– Andy Marko
	• Rentsch	– Marco Hilty
PET	• NABeverage • NA DPD • LA	– Bill Featherstone – Kirby Losch – Luiz Magalhaes
	• KHL	–Bernie Salvatore
Sunclipse		– Greg Hummel
	• MPP	– Art Castro

Functional heads from each business
7of 12 are new to role since 2006 (5 of 12 new to Amcor)
Active cross-business governance group – Value Plus/capability building
– Best practice sharing
– Customer/market strategies
– High potential talent

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Customer and product profitability: “Pocket margin database” (PMDB)

EXAMPLE

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Net sales
PBIT
Pocket margin
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Transaction-level “income statements” aggregate up to customer or product PBIT
“Pocket Margin” lexicon taking hold

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Customer and product profitability: Common tools

EXAMPLE

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Performance tracking: Sales rep level

EXAMPLE

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Performance Tracking: Business level

EXAMPLE

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Capability Example: Key Account Management
Supply Chain
BG/BU
Formal cross General Plant QA/Ops
Management
functional teams
ensure full
Key
organizational account
support for key manager
customers
Product
Finance
Development
Technical
Service
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Capability Example: Key Account Management
EXAMPLE
Fact-based
account planning
VOC
PMDB
X-func teams
Talent
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Capabilities: Rolled-out in ‘Waves’ across Amcor

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Wave I Wave II Wave III
Fibre Fibre NSW
Queensland
Australasia
Flexibles Fibre Vic
Flexibles NZ
and Kewdale
Food Rentsch
Food
Flexibles Healthcare NA Healthcare
Healthcare EU
NA Regional Mexico
Accounts
Key accounts
PET
NA Europe
DPD NA Regional
Accounts
Sunclipse
Kent H. Landsberg
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Value Plus Debrief

Context: Value Plus & The Way Forward

Initiative overview

Progress to date

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Progress to date: Highlights

• Enablers

New customer understanding and insights
Key recruitments and on-going talent upgrade
Granular profit data across 90% of Amcor
Performance culture intensifying in sales & marketing
Capabilities
Completed waves across 80% of Amcor
Beginning to roll-out more sophisticated approaches
Greater emphasis across the businesses on “marketing”

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11 December 2007 Sydney Gérard Blatrix

Agenda

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Overview of the Business
• Flexibles Food - an organisation geared for growth
• Update on 'The Way Forward'
• Our Strategic Priorities
• Progress on Flex1
• Sustaining Benefits and Accelerating Growth
• Sustainability offers Product Development Opportunities
• Impact of External Factors
• Conclusion

AF Food December 2007

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Overview of the Business

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Flexibles Food - €1 billion sales – 4,900 employees

27 Plants in 12 Countries

Key Market Segments and Market Share

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AF Food December 2007

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Yoghurt
Coffee
13%
21%
Produce
Conf.
21%
8%
Cheese
Ready 7%
Meals
Bread
15%
15%
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Flexible Packaging Market in Europe

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WE	CE	EE
Region	Flexibles Packaging Demand	Growth Rate
Western Europe (WE)	€8,000m	1%
Central Europe (CE)	€600m	4%
Eastern Europe (EE)	€400m	10%
Total	€9,000m

cember 2007	4

AF Food December 2007

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Product Segments
Bread
Yoghurt Ready Meals
Coffee
AF Food December 2007 5
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Product Segments
Cheese Confectionery Produce
AF Food December 2007 6
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Leading through Innovation - PushPop

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What is it? Benefits: •
PushPop is an: Innovative new packaging design •
• Differentiation Easy open
Stackable shape
• Entire surface available for printing (including top and bottom)
Flexible
Stand-up

• Stackable pack that retains its original shape and brand identity and has a wide opening

Convenience - easy open, wide opening
• Gas tight and gas flushable
• Use on any vertical form fill seal packaging machine with 4-side seal facility

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AF Food December 2007 7

Leading through Innovation - Monoflex

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What is it?

Monoweb co-extruded PP-core based blown film - can be used for direct contact seal or impulse sealing applications. Can be used on:

VFFS and HFFS packing lines
Thermoforming machines for lidding
VFFS machines with impulse sealing
Suitable for Gravure and Flexo print

Benefits:

Monoweb instead of duplex
Defined tearing properties
High puncture resistance
Low temperature sealing
Runability on high speed VFFS/HFFS
Stiffness
Cost effective
Excellent transparency or high opacity
Strong euroslot

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AF Food December 2007

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Organisation structure
Lean
Value+
MD
Manufacturing
Marketing &
Innovation
Sales & Manufacturing Capital
Talent Marketing Excellence Discipline
& Cost Control
Management
HR CFO
M&A and
Segment
Strong Project
Restructuring Participation
Team Strategy
"Flex1"
Integration of
Produce & CEE
South North & CEE
Bakery
AF Food December 2007 9
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Update on 'The Way Forward'

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•
Margins improved:
–
Price
Value Plus Impact
–
Product/Customer Mix
•
Sales slightly above last year
•
Improved cost base as a result of last year's restructuring
Working Capital continues to decrease
% 17.4
15.8
Improved 12 Improved
PBIT RoAFE
05/06 06/07 07/08
AF Food December 2007 10
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Our Strategic Priorities

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1. : Finalise and deliver benefits from 'Fix, Sell, Close' get fit programme – Flex1 Execution

2. Consolidate existing capabilities and build new ones for achieving a sustainable enhanced profitability:

Value Plus
Manufacturing Excellence
SG&A Cost Reduction (including standardisation of business processes)

3. Develop "Sweet Spots" at an above-market growth rate: – Reinforce key success factors such as Innovation and increased plant focus

4. Accelerate growth in Central and Eastern Europe:

Organic growth supported by substantial investments in Poland & Russia
– Selected acquisition targets

AF Food December 2007

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What is Flex1?

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Comprehensive programme designed to:
Strengthen market positions
– Increase weighting in the lower cost regions
– Improve alignment to customer needs and market trends
– Create a strong platform for innovation
• The first phase was the successful closure of two plants in 2006/07
• Current phase commenced in April 2007: – Cost of €60m with benefits of €30m
AF Food December 2007 12

What is Flex1?

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Film Extrusion Film Conversion
Film
•
Blown Extrusion Printing
•
Lamination
•
Slitting
Flex1:
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Optimisation of the whole process for Food and Healthcare Europe: • Less plants
• More technologically focused
• Consistent with growth in CEE

AF Food December 2007

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Progress on Flex1 (Fix - Close - Sell): Conversion

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Original Footprint Future Footprint
• • 36 Sites (inc. Healthcare Europe) 27 Sites
• • 13 involved in Flexo Printing 8 involved in Flexo Printing
• • 19 involved in Gravure Printing 16 involved in Gravure Printing
Already Announced: • A major restructuring in Sweden September 2007
• One plant closure in the UK (Flexo consolidation) October 2007
• One plant closure in Denmark October 2007
• Capacity investment in Poland Ongoing We are ahead of the original schedule 14

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AF Food December 2007
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Flex1 Next Steps and Expected Benefits

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1. : Next Steps

– Additional plant closures will be announced to support our strategy of moving East and consolidating Extrusion

– Investment in new equipment

– Headcount reduction of 900

– Divestment of non-strategic businesses on track

2. : Expected Benefits

– Previously announced benefit (Conversion and Extrusion) of €30m per annum confirmed

– Lower operating costs

– Increased plant focus

AF Food December 2007 15

Sustainability offers Product Development Opportunities

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NaturePlus Film - a range of recyclable, degradable, biodegradable and compostable films

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Natureflex Film
Peelable PLA Film
PLA Film, P-Plussed
MaterBi Bags
AF Food December 2007 16
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Influence of External Factors

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Oil Price/Inflation :
Raw materials are at historic highest
Food prices are increasing at double digit rate:
- Contract Management/Value+ Programme
- Market conditioned for price increase

Favourable environment to push through price increases

US$ vs. Euro :

Limited exposure of AF Food Economic Slow Down : Limited risk of reduction of volume in our traditional business

Economic Slow Down :

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AF Food December 2007
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Raw Material Market Price Trends Forecast to March 2008

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125.0
120.0
115.0
110.0
105.0
100.0
95.0
90.0
Index of Market Movement
Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08
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AF Food December 2007

Conclusion

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1. The execution programme is well on track:

Flex1 implementation
Business turn around

2. We’ve established strategic priorities and started implementation:

Capabilities development (Value Plus, Lean Manufacturing)
Growth in selected market segments - “sweet spots”
Growth in Central/Eastern Europe (organic and potential acquisitions)

3. We are preparing our business for the growth agenda:

Organisation
Talent

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AF Food December 2007

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11 December 2007 Amcor Rentsch Jerzy Czubak

Agenda

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Business Overview
European Market
• Projects
Ukraine
PepsiCo plant in Poland
Summary

Global Presence – Tobacco Packaging

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• Switzerland • France • Germany • Portugal • Poland • Russia • Ukraine Plants by Region Europe/ CIS Asia • China (10) • Singapore • Malaysia Australasia Total • Australia 20 plants	Amcor Rentsch Global Tobacco Footprint

Agenda

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Business Overview
European Market
Projects
Ukraine
PepsiCo plant in Poland
Summary

Current European Market Position

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The market in Europe continues to grow as measured by “printing machine hours”
Added complexity
- Shorter run lengths due to increased number of SKU’s
- Introduction of Graphical Health Warnings
- More value adding features including embossing and hot foil stamping
Increased production introduced to Western Europe by a major customer
Large customers continue to gain market share

Amcor has a Strong Position

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A leader in Western and Eastern Europe

– Focused on the large multinational customers

Leading the market in innovation
Value add products have had strong growth

Short Term Supply / Demand Imbalance

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Across Europe available machine hours for the industry has reduced
Additional “specialised” capabilities are required
Amcor gaining share as large customers win share

These combined factors have resulted in overtrading in Eastern Europe in the first half.

The Big Players (BAT, JTI and PMI) are Gaining Market Shares

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Demand Development by Customer in Bio Cigarettes Expected Evolution
Total market size
1.462 1.487 1.485 1.457 1.456 1.447 1.430 1.411 1.387 1.376
100%
PMI 23% 24% 25% 26% 27% 27% 27% 28% 28% 28%
JTI 13% 13%
15% 16% 17% 17% 18%
24% 24% 24%
BAT 13%
14%
15%
15%
Imperial 7% 7% 16% 16% 17%
Altadis 7% 7% 7% 7% 7% 7% 18% 18% 18%
7% 7%
7%
7% 7%
7%
13% 15% 15%
Others 37% 35%
31% 29% 26% 26% 24%
17% 15% 15%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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Source: Euromonitor (2007), team analysis

Total market: Africa and Middle East, Western and CIS (selected countries)
** Others: Bulgartabac Holding Group, Donskoi Tabak, Karelia Tobacco, Neman Tobacco…

Because of PMI Moving Business to EU and Export Business, EU Demand for HL Remains Stable

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EU
Production Volume of Cigarettes, Bio sticks
CIS
Africa and Middle East
968 965 973 931 40B PMUSA sticks
873 to PMINTL
837 817 799 825 811 797
557 563 556 549 537 537
498 505 520
464
318
232 237 247 253 239 223 224 224 225 225 233
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Total 1518 1666 1718 1689 1632 1617 1604 1579 1599 1573 1527
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Source: ERC, 2007, team analysis

Competitive Situation – Western Europe (EU)

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Market shares

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Alcan
Amcor
22%
26%
14%
MMG
Other
9%
19%
7%
4%
Fields
A&R
Wall
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Four strong manufacturers in Western Europe

Competitive Situation – CIS

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Market shares

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Other
Amcor
18%
37%
A&R
12%
Wall
8%
18% 16%
MMG Alcan
Amcor is the clear leader in 1,6
Eastern Europe
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European Tobacco Market – Summary

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The market in Europe continues to grow in terms of printing machine hours and value add requirements
Amcor, as the market leader, will focus on:
Building additional capacity
- Ukraine
Enhancing value add production capabilities
- Offset and Hot foil stamping
Leadership in innovation and complex production will be the key differentiating factor in the future

Strong Focus on Innovations Innovation Centre Amcor Rentsch

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Value Proposition

“One stop innovation shop” with all processes on site
“Speed to Market”
Proximity to customers and key suppliers
Modern and efficient production and converting technology
Value and cost driven customer services to generate sustainable benefits for customers and the AR Group

Switzerland is the ideal location for the Innovation Centre:

Small
Highly competent
Well equipped
Flexible
Dedicated
Highly flexible organisation

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Strong Focus on Innovations
Innovation Centre Amcor Rentsch
Switzerland is the ideal
Innovative Solutions location for the Innovation
• Centre:
Packaging shapes
•
Small
•
Packaging appearance
•
Highly competent
•
Surface treatment •
Well equipped
• •
New technologies Flexible
• New services • Dedicated
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Innovative Solutions Packaging Shapes

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Lighter Pack

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Scissor Pack

Innovative Solutions Packaging Shapes

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Accordion Pack Aqua Pack
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Innovative Solutions Packaging Shapes

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Rising Pack Take one Pack
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Innovative Solutions Packaging Appearance

Ink Technology

High gloss
Pearlescent inks
Metallic inks
Metallure inks
Laser-sensitive inks
Effect inks
Fluorescent / phosphorescent inks

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Innovative Solutions Packaging Appearance

Foil Technology

Hot Foil Stamping
• Hologram Foil
• Defraction Foil
• Holographic Security Features
• Holographic Features

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Innovative Solutions Surface Treatment

Embossing

Structured Embossing
• Relief Embossing
Pyramid
– Raised / rounded
• Embossing of lines and crest

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Contracts – Tobacco

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Russia

Master agreements with customers signed at Group Level
Sub-Agreements signed with each local Russian affiliate to comply with Russian legislation
Prices marked to, and invoiced in Euro or USD
Payments received in RUR based on Euro price at rate on date of payment per Russian Central Bank

Contracts – Tobacco

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Poland

Master agreements with customers signed at Group Level
Prices marked to Euro or USD and invoiced in PLN for local affiliates at Polish Central Bank Rate on date of invoice
Payments received in PLN based on Euro or USD price at rate on date of payment per Polish Central Bank

Agenda

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Business Overview
European Market
Projects
Ukraine
PepsiCo plant in Poland
Summary

Consumption by Country in Europe

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250
Bill Sticks 210
Ukraine – one of the largest markets in Europe
200
150 130
120
115
90
100
60
45
35
50
0
Germany Turkey Netherland Ukraine Poland Spain Romania France
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Ukraine – Project Summary

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Brownfield investment in Kharkiv, second largest city in Ukraine
Brownfield enables faster and simpler project
Project to be managed by Novgorod management
Ukraine plant will be a satellite site of Novgorod
Location has close proximity to customers in Ukraine and southern Russia
Production commencing in December 2007
Total investment $A20 mill

Progress Photos

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Factory view from the main road

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Progress Photos

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Production area
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Agenda

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Business Overview
European Market
Projects
Ukraine
PepsiCo plant in Poland
Summary

Project Overview

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€ 26 million investment in Poland
Dedicated to PepsiCo and supplying flexible packaging for the snack food market
Supported by long term contract
Snack foods are growing at 15% to 25% per annum in Eastern Europe

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Plant Visualisation
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Equipment

Most modern, fastest equipment available in the world

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An 8 colour German flexographic printing press
An Italian extrusion laminator
British slitters and packing line
Comprehensive quality control systems and data capture systems
High security site to maintain good food safety standards
Accreditations - ISO 9000 (quality), AIB (hygiene), ISO 14000 (environment), BRC
A truly world class business

Key Dates

Contract signed
Factory build started
Commissioning of machines
Commercial start-up

April 2007 September 2007 April 2008 May 2008

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Agenda

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Business Overview
European Market
• Projects
Ukraine
PepsiCo plant in Poland
Summary

Summary

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Tobacco Packaging

In Western Europe be low cost producer with well located sites
Continue to expand in growing regions of Central and Eastern Europe
Focus on complexity and innovations
Central and Eastern Europe Flexibles
Expand manufacturing footprint (leverage tobacco manufacturing facilities)
New business dimension (technology, skills, dedication) with the Pepsico plant
Support to Amcor Flexibles Food with shared services (HR; Finance, IT, Logistic) and manufacturing excellence practices

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11 December 2007 Sydney Peter Brues

Agenda

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Overview
Market
Strategy
Initiatives & Performance
Conclusion

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Overview
Market
Strategy
Initiatives & Performance
Conclusion

Global Healthcare Sites

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AF Sligo • • AF Gent
AF Winterbourne •
AF Mundelein •AF Madison •Stevens •• Mt. Holly • AF Ashland AF Leaderpack •AF Burgos •AF SPS •• AF Logroño• AF Albertazzi
• AF Puerto Rico
AF Singapore •
• AF Brazil
Sales $0.7 billion
16 Plants in 10 Countries
c. 2,200 Employees
4
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Overview
Market
Strategy
Initiatives & Performance
Conclusion

Healthcare Attractions

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Packaging cost is relatively low compared to the selling price of the entire product
Packaging often critical in protecting our customer’s products and essential in product differentiation
Customers require package characteristics that are aligned with Amcor’s competencies
The growth in this industry outpaces GDP

Medical Packaging

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34%
7%
14%
35%
10%
Amcor
Alcan
Bemis
Wipak
Other
7
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Leading Medical Device Manufacturers

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Customer	Sales	Head Office
Cardinal Health	$81 Billion	US
J&J	$53 Billion	US
Kimberly-Clark	$11 Billion	US
Baxter	$10 Billion	US
Covidien (formerly Tyco Healthcare)	$10 Billion	US

Market Trends:

Commodity production moved to developing countries
Rising concern of hospital infections
Production of high technology devices growing in developed countries
Increased emphasis on Form-Fill-Seal from Bags & Pouches
Increase in chronic illness and access to chronic care

Pharmaceutical Packaging

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25%
12%
50% 7%
6%
Amcor
Alcan
Klockner
Constantia
Other
9
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Leading Pharmaceutical Companies

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Customer	Sales	Head Office
Pfizer	$48 Billion	US
GlaxoSmithKline	$47 Billion	UK
Novartis	$37 Billion	CH
Merck	$23 Billion	US
Astra Zeneca	$26 Billion	US

Market Trends:

Differentiation through ease of delivery
Combat counterfeiting
Senior friendly + child resistant
Growing importance of India

Personal Care Packaging

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47%
10%
25%
18%
Amcor
Alcan
Bemis
Other
11
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Leading Personal Care Companies

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Customer	Sales	Head Office
Procter & Gamble	$68 Billion	US
Unilever	$56 Billion	UK
L’Oréal (Nestlé)	$20 ($170) Billion	F (CH)
Colgate	$12 Billion	US
Beiersdorf	$7 Billion	D

Market Trends:

Differentiation through package appearance & features
Differentiation through package ease of use
Increased emphasis on emerging markets

Key Implications for Packaging Suppliers

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Quality & Service are a minimum
Importance of Selling Skills
Importance of Innovation
Importance of Ease of Working with you
Importance of Decorating Expertise
Global Manufacturing Capabilities

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Overview
Market
Strategy
Initiatives & Performance
Conclusion

Healthcare Strategy

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Current Position Changing Environment Strategy
•
Establish a Global
•
Attractive market structure
Customers acting
•
segments Replicate strong
more globally in both
•
Amcor has strong market/customer
manufacturing and
competitive positions positions across
sourcing
geographies
•
Capture High-
Performance product
growth
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Leverage strong regional positions and extensive product portfolio to further
enhance Amcor’s leadership position
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Shifting to High Performance

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Sweet Spots Opportunity Focused Question Marks Spaces Positions Fix / Planned Exit Maximize Market Penetration Selective Share Competition

High Performance

Standard Performance

Amcor Thrust = Leverage strong customer positions and technology platforms / effective innovation and speed to market; Exploit group know-how to achieve high efficiencies as critical mass is established

Amcor Thrust = Focus market participation on selected segments and partners; execute commercial & manufacturing improvements to offset market price pressures; exit commoditized markets in a planned and appropriate manner

Global Healthcare – Market Position

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27%
25%
7%
Size $0.7B
Growth 4%
Size $1.2B
Asia (ex.J) Japan
Growth 4%
Size $0.3B $0.4B
Growth 13% 3%
11%
30%
Size $0.3B
Growth 6%
Amcor Other
17
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Overview
Market
Strategy
Initiatives & Performance
Conclusion

Key Strategic Initiatives

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: We will win by executing the following

Superior Strategic Marketing & Customer Focus
Innovate to Create Differentiated Products
Obtain an Advantaged Cost Position
Acquire and Develop Strong Talent

Innovate to Create Differentiated Products – High Barrier/Performance Laminate Platform

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Existing Customer
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Product Development
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New Product Sale

Package for Blood Testing device

High barrier lamination package

Overwrap & Bags for liquids

Extractable component expertise
Precipitate formation learning
Seal Integrity

High barrier package for Inhaler refill cartridge

Significant reduction in extractables
Increased machine speeds
Better seal strength
Sharper graphics

Advantaged Cost Positions - Progress on Flex1 Extrusion

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Change Benefit
• • Focus on 3 Strategic Sites Improved production efficiency
• and cost structure 40% decrease in lines / same •
capacity Accelerated product
• development Focused R&D facility Progress: • Investments in infrastructure underway and first lines being installed
• One plant closure in Denmark announced
• Resin rationalization trials underway We are on schedule to achieve our commitments

Performance

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Strong
PBIT
•
Profitable sales growth
• Decreasing cost base Sound
RoAFE
•
Improving capital management
Solid
Cash Flow
22
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Overview
Market
Strategy
Initiatives & Performance
Conclusion

Summary

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We will profitably grow our global leadership position through:

• Strengthening advantaged positions, leveraging regional competencies globally and maximizing growth in high-performance product segments

Creating a market facing organization that leverages global opportunities
Innovating to create differentiated products
Creating and enhancing advantaged cost positions
Developing and recruiting exceptional talent

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Analyst Presentation

December, 2007

Organizational Structure: Amcor Sunclipse North America

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Amcor Sunclipse
North America
FY08 Est. $1,000M
Corrugators MPP Group Distribution
FY08 Est.$186.5M FY08 Est.$228.8M 670 FY08 Est. $778M
283 Co-Workers Co-Workers 1,271 Co-Workers
Corru Kraft II Mercury Die & Container KHL Los Angeles KHL San Diego KHL Oakland KHL Ontario (CA-USA)
Mission Corrugated St. Hart Container KHL San Jose KHL Sacramento KHL Orange County KHL Inside Sales
Corru Kraft IV Midway Container KHL Tijuana KHL Sycamore KHL Santa Barbara KDS Packaging
Mercury Container KHL Indianapolis KHL St. Louis KHL Fresno KHL Incentive
Silicon Valley Container KHL Seattle KHL Juarez KHL Mexicali KHL Asia
MPP Brea KHL Chicago KHL Phoenix KHL El Paso KHL Europe
Sycamore Containers KHL Guadalajara KHL Dallas KHL Denver KHL EPS Northwest
Master Box Cerritos KHL Houston KHL Atlanta KHL Memphis KHL EPS Southwest
Master Box No. CA KHL Reno KHL New Jersey KHL Portland KHL EPS Chicago
Master Box Phoenix KHL EPS Atlanta
LBR Master Distribution
2
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Sunclipse Locations (North America)

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37 Distribution Sites
7 Box Plants
4 Master Distribution Sites
3 Corrugated Plants
Distribution Hub Sites
Distribution Sites (Non Hub)
Box Plants
Master Distribution Sites
Corrugated Plants
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The Value Chain
CorruKraft MPP Group Master Box Kent H. Landsberg KHL EPS
(Corrugators) (Sheet Plants) (Master Distributor) (Distributor)
MM EE
AA NN
NN MM DD DD
UU AA II
FF SS SS CC
AA TT TT UU
CC CC EE RR SS
TT OO RR II TT
UU NN BB OO
RR VV DD UU MM
II EE II TT EE
NN RR SS II RR
GG TT TT OO
II NN
NN
GG
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The Sunclipse Business Model
50% 50%
50% 50%
Competitor Competitor Competitor
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Product Overview

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Kent H. Landsberg Co. KHL Engineered Packaging Solutions

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Corrugated
Boxes
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----- Start of picture text -----

Packaging
Supplies
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----- Start of picture text -----

Janitorial
Supplies
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----- Start of picture text -----

Promotional
Products
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----- Start of picture text -----

Packaging
Equipment
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Packaging
Materials
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CorruKraft

MPP Group

Master Box

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Corrugated
Board
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Products
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----- Start of picture text -----

Digital
Printing
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Purchase
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Redistribution
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Segment Attractiveness - Growth Projections

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Other
13%
Food & Flexibles
12% Manufacturing
38%
Contract Packaging
12%
Warehouse & Supplies
Estimated Annual Growth
25%
(2008/2009)
Manufacturing 2.9%
Contract Packaging 10.0%
Warehousing & Supplies 2.0%
Food & Flexibles 3.3%
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Market Share: Corrugators

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California – 50B SQ FT
Other CorruKraft
92% 8%
(4) 36 Integrateds
16 Independents
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Market Share: Manufactured Packaging Products

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California – 50B SQ FT
MPP
OCC
4.4%
2.0%
Integrateds
75%
Weyerhaeuser
International Paper
Temple Inland
Smurfit Stone
Packaging Corporation of America
Georgia Pacific
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Market Share - Distribution

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US Packaging Wholesale / Distribution Market

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Xpedx Bunzl
Unisource 9.1% KHL
6.7%
11.1% 2.5% Victory Package 1.7%
Stephen Gould 1.3%
Uline 3.0%
Other (+/- 7000 Co.)
64.6%
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Customer Channel Plan (Distribution)

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+
KHL SALES STRATEGIC ACCOUNTS,
REPRESENTATIVE TEAM WORLD
• Call Cycle • Multi-Location
•
• Commercial Account Team Objectives
• Freight Paid or Not • Geographic Reach
• EDI or Web Based
• EDI or Web-Based
INSIDE SALES • Landsberg.com Tiered Pricing
• Call Cycle for “Never Hads”
• Commercial Account
KHL EXPRESS
• Web Based, Pay for
Freight, Credit Card
Volume / $ Spend +
(Value-Add)
Customer’s Perceived Need
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Distribution Sales Force

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“Rookies” (90)
Rigorous, structured, disciplined training & selection process
Two year duration
High attrition rate, but better than competitors
“Veterans” (257)
High performance
Low attrition rate
Heavily supported
Inside Sales Force (27)
Same rigorous recruitment and training
Different focus, skill set
– Key component of Channel Plan 12

Sales Force Remuneration

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• Rookies

Low base wages
Expenses
Excellent benefits
Veterans
Full commission only – Percentage of Adjusted Gross Profit
– Expenses included in commissions
– Excellent benefits
• Inside Sales – Low base wages
– Commission – Small Percentage of Adjusted Gross Profit
– Excellent benefits 13

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Sales Representative Development Process
•• GraduationGraduation
•• Veteran RepresentativeVeteran Representative • 35% ROI
•• 100% Commission100% Commission • 10+ Year
•• Independent Sales CallsIndependent Sales Calls •• Self DirectedSelf Directed Commitment
•• Continuous EvaluationContinuous Evaluation
•• Quarterly ReviewQuarterly Review
•• KPIsKPIs
V •• Training Ride AlongsTraining Ride Alongs
A •• Continued Selling Edu.Continued Selling Edu.
L •• Route BookRoute Book •• Role PlayingRole Playing
U •• ProspectingProspecting •• Presentation TrainingPresentation Training
E •• RecruitingRecruiting •••• Daily MeetingsDaily MeetingsMorning CallsMorning Calls •• Socratic Sell Process Socratic Sell Process
•• AssessingAssessing •• Ride AlongsRide Alongs
•• ShadowingShadowing •• Product TrainingProduct Training
•• Inside TrainingInside Training •• Boot CampBoot Camp
•• Phone SalesPhone Sales
•• LSALSA
6 MONTHS 12 MONTHS 18 MONTHS 24 MONTHS
2 YEARS
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Sensitivities to Economic Slowdown

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Manufacturing hardest hit due to narrow focus; however is broader than it has been in the past
Gross Profit compression
Fewer, less effective price increases
Less chance to garner new customers, substitute/redesign to increase margin
Easier to hire Sales Trainees, tougher to succeed
Engineered Packaging Solutions, Strategic Accounts
& Inside Sales should provide some offset
Acquisition candidates easier to find

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15
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Summary

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Operating performance better than peers
Unique business model not easily replicated
Well positioned geographically
Low share of market presents opportunity
Distribution sales force recruitment/retention critical
New product/service opportunities
Some early wins
Execution of Channel Plan is major opportunity
Offsetting slowing economy dependent upon key strategic initiatives
Engineered Packaging Solutions
Strategic Accounts
Inside sales

AMVIG Briefing December 2007

(Stock Code : 2300)

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Agenda

Industry Features & Outlook
Company Profile
Financial Analysis
• Strategy

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Chinese tobacco industry

Largest in the world
Consumption approximately 2.1 trillion cigarettes
Monopoly structure

– Cigarette manufacturing in China a protected monopoly

Government owned
The cigarette manufacturing industry is fully owned and controlled by the Chinese government
Quota system – Production of each cigarette manufacturers is based on a quota system
Growth market
The volume growth for cigarette production is 3-5% per year
– Sales value growth is double digit

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Industry rationalisation

Government led rationalisation began in 2000

– Number of cigarette manufacturers reduced from about 180 to 20 – Number of cigarette brands to be reduced from over 1,800 to around 60

• Focus is on building brands and value

– High volume with at least 1 million master cases

– High margin with RMB10 billion tax and profit contributions

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AMVIG strategy

Lead rationalisation of the tobacco packaging industry
Amcor three years ago had around 3% share
Vision Grande (as AMVIG was named then) had about 5% share
Build relationship with CNTC and STMA
Focus on acquisitions
Target “winning” manufacturers and brands
Establish / maintain joint ventures with customers where it makes sense

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AMVIG today

Focused
Specialises in cigarette packaging printing in China
• Scale
Largest in tobacco packaging printing production capacity in China with around 17% market share following Brilliant Circle acquisition
• Footprint
Well positioned with 10 cigarette packaging printing factories and 4 noncigarette packaging printing plants across China
• Enhancing value
Manufacturing laminated papers which are a major raw material for cigarette packaging printing
• Profitable
Most profitable tobacco packaging printer in China

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Brilliant Circle profile

One of the largest cigarette packaging printers in PRC
Joint ventures with cigarette manufacturers and CNTC
Established cigarette packaging businesses in Hunan, Hubei, Anhui, Guizhou and Shenzhen
4 cigarette packaging printing operations and 2 laminated paper operations, capacity over 3M master cases
Designed and printed cigarette packaging for 5 of the top 10 tobacco groups, which include Hunan, Anhui, Hubei, Guizhou and Jiangsu
• Mainly serve the top and high end brands, such as Baisha ( 白沙 ), Fu Rong Wang ( 芙蓉王 ), Hong Jin Long ( 紅金龍 ), Huang Guo Shu ( 黃果樹 ), Huang Shan ( 黃山 ) and Yi Ping Huang Shan ( 一品黃山 )

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Acquisition terms

Acquired 100% at 7.5x PE
Transaction completed in October 2007

• Funded principally via new share issue plus small amount of cash – Cash payment of HK$155.5M

Issue 200M AMVIG’s new shares at HK$7.00 per share

• 3 yrs of profit guaranteed at total of HK$630M with first year not less than HK$200M

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Geographical coverage

14 Manufacturing Plants

AMVIG

Beijing
Qingdao
Nanjing
Kunming
Shenzhen (2 plants)
Bengbu
Xiangfan

Beijing

Qingdao Xian Bengbu Nanjing Xiangfan Changde Zhaotong Huizhou Kunming Dongguan Shenzhen

Changde

To commence late 2007

Dongguan

Non-cigarette packaging printing plants

Huizhou
Xian
Changde
Zhaotong

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Substantial Value Creation AMVIG has number one position

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Turnover
Production
Profitability NO.1
capacity
Output
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AMVIG’s market share increases from 9% up to 17%
Major printer to 7 of the top 10 tobacco groups
Supplier to 6 of the top 10 brands in PRC

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Financial results – key figures

(HK$ Million)	2006 Interim	2007 Interim	Change
Turnover	404.1	891.3	+121%
Gross Profit	110.5	266.9	+142%
Profit from operations	66.7	162.5	+144%
Share of results of associates
• Nanjing	19.1	21.9	+15%
• Kunming	23.9	-
Profit before taxation	102.7	180.2	+75%
Profit after taxation	90.1	151.7	+68%
Profit attributable to equity holders	83.5	139.3	+67%

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Financial results

Turnover

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1400
1200
1000
800 761.9
600
885.4
400
132.3
264.9
200
251.2 237.2
139.3 129.4
0
2005 2006 1H 2006 1H 2007
Laminated Paper Cigarette Packaging
HK$M
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Financial results

Net Profit after Tax

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320
250.3
280
240
181.4
200
160
112.2
120 166.8 139.3
80
83.5
40 69.2
0
2005 2006 1H 2007
First Half Second Half
HK$M
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Earnings per Share

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----- Start of picture text -----

38.1
40 34.8
35
30
25 23.4 22.0
20
15 17.8
14.7
10 12.8
5
0
2005 2006 1H 2007
First Half Second Half
HK Cents
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Dividends

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18.5
20
12.8
8.5
10 7.0
2.8
12.8
7.0
7.2 7 0
0
2005 2006 1H 2007
Interim Dividend Final Dividend Special Dividend
HK cents per share
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Turnover by products

Cigarette Packages

Laminated Paper

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160
139
1200 129
120 108
1000
762 74
800
612 80 87
600 74
400 265 31
40
200 42
34 34
0 0
1H 2006 1H 2006 1H 2007 1H 2006 1H 2006 1H 2007
HK$ M
HK$ M
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Sales to Nanjing plant (48% associate of the Group)
Turnover for Kunming, Beijing and Qingdao plants were semi-annualised in June 2006 for comparative purpose
** Excludes sales to Kunming plant
Sales to Kunming plant (31.5% associate of the Group before June 2006)
External sales

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Gross margin

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Focus on
high volume To remain
To become
together No.1 most
50
No.1 printer
42 with high profitable
in China
40 margin in China
32
30 product
27
30
20
10
0 Change
FY 2005 1H 2006 FY 2006 1H 2007 of product
mix
Gross Margin
%
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Product mix – first half 2007

Sales Mix

Gross Profit Margin (%)

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17%
53%
30%
Mid - High End Mid End Mid - Low End
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50
38%
40
28%
30
21%
20
10
0
Mid - Low End Mid End High End
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To become the No.1 in the tobacco packaging printing specialist, AMVIG will focus on different types of product to increase the market share and remain the most profitable in the industry

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Turnover by locations

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Turnover HK$ 404 million Turnover HK$ 891 million
1H 2006
1H 2007
4% 4%
25%
25%
35%
48%
13%
46%
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Shenzhen Kunming Qingdao Beijing

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Utilisation of plants

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100 100 100 100
100 90
85
90 80
80 70
70
60 50 50
50
40
30
20
10
0
Kunming Qingdao Nanjing Beijing Shenzhen
2006 1H 2007
%
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Strategy

Remain a focused tobacco packaging specialist

• Grow aggressively through organic projects and bolt on acquisitions – By 2011 target sales of HK$ 6 billion – Dongguan plant is on track to commence production in the next couple of months

• Leverage economy of scale – Integration and cost reduction • Centralised procurement

Sharing of resources

• Benchmarking

Develop relationship with CNTC

– Requires demonstrating AMVIG is clearly the best manufacturer in China

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AMVIG Disclaimer

• This presentation contains forward-looking statements that involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, AMVIG. Forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “seeks”, “estimate”, “anticipate”, “believe”, “continue”, or similar words.

• No representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking statement by any person (including AMVIG). In addition, no representation, warranty or assurance (express or implied) is given in relation to any underlying assumption or that any forward-looking statements will be achieved. Actual future events may vary materially from the forwardlooking statements and the assumptions on which the forward-looking statements are based. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

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AMVIG Disclaimer (cont)

In particular, we caution you that these forward-looking statements are subject to uncertainties, risks and changes that may cause its actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. The factors that may affect AMVIG’s future performance include, among others:
changes in the legal and regulatory regimes in which AMVIG operates;
changes in behaviour of AMVIG’s major customers;
changes in behaviour of AMVIG’s major competitors;
the impact of foreign currency exchange rates; and
general changes in the economic conditions of the major markets in which AMVIG operates.
These forward-looking statements speak only as of the date of this presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, AMVIG disclaims any obligation or undertaking to publicly update or revise any of the forward looking statements in this presentation, whether as a result of new information, or any change in events, conditions or circumstances on which any such statement is based.

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11 December 2007 Summary

Ken MacKenzie

Key messages summary

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EXECUTION FOCUS Value Plus
positionsmarket Strong and market Customer focused Low cost disciplineCapital – Customer Focused culture
– Value vs Volume
• Food Flexibles – Flex 1
– Accelerating growth where the business has strong value propositions
• Tobacco packaging – Growth in Russia and Eastern Europe
– Leading in innovation and ability to manage complexity

Key messages summary

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EXECUTION FOCUS •
Healthcare
positionsmarket Strong and market Customer focused Low cost disciplineCapital
–
An integrated and innovative global healthcare
business
•
Sunclipse
–
Unique business model
–
Managing costs through the cycle
•
AMVIG
–
Growth via ongoing consolidation and organic
opportunities
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Summary

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EXECUTION FOCUS •
positionsmarket Strong and market Customer focused Low cost disciplineCapital Across all businesses there has been improvement in:
–
Customer focus
–
Capital discipline
–
Talent management
•
The Way Forward agenda designed to deliver
permanent changes rather than short term fixes
–
It is about systematically working through issues and
establishing comprehensive change agendas
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Summary

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EXECUTION FOCUS •
positionsmarket Strong and market Customer focused Low cost disciplineCapital Two years into The Way Forward agenda:
–
Businesses are better positioned
–
Balance sheet is strong
–
Upside is beginning to be realised in earnings
•
This will be increasingly evident in 2007/08 and beyond
•
The next phase is to increase the emphasis on the
growth agenda
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11 December 2007 Summary

Ken MacKenzie

AI assistant

AMCOR PLC — Investor Presentation 2007

64373_rns_2007-12-10_0bec9889-ddfb-4648-9eea-821a9a2ad0ec.pdf

Agenda

The Way Forward - Agenda

The Way Forward

AND

Talent: KPIs and dashboards

Example

EXAMPLE

• Enablers

Agenda

Overview of the Business

27 Plants in 12 Countries

Key Market Segments and Market Share

Flexible Packaging Market in Europe

Leading through Innovation - PushPop

Leading through Innovation - Monoflex

Update on 'The Way Forward'

Our Strategic Priorities

What is Flex1?

What is Flex1?

Progress on Flex1 (Fix - Close - Sell): Conversion

Flex1 Next Steps and Expected Benefits

Sustainability offers Product Development Opportunities

Influence of External Factors

Raw Material Market Price Trends Forecast to March 2008

Conclusion

Agenda

Global Presence – Tobacco Packaging

Agenda

Current European Market Position

Amcor has a Strong Position

Short Term Supply / Demand Imbalance

The Big Players (BAT, JTI and PMI) are Gaining Market Shares

Competitive Situation – Western Europe (EU)

Market shares

Competitive Situation – CIS

Market shares

European Tobacco Market – Summary

Value Proposition

Innovative Solutions Packaging Shapes

Ink Technology

Foil Technology

Innovative Solutions Surface Treatment

Embossing

Contracts – Tobacco

Russia

Contracts – Tobacco

Poland

Agenda

Consumption by Country in Europe

Ukraine – Project Summary

Progress Photos

Progress Photos

Agenda

Project Overview

Equipment

Key Dates

Agenda

Summary

Agenda

Global Healthcare Sites

Healthcare Attractions

Medical Packaging

Leading Medical Device Manufacturers

Market Trends:

Pharmaceutical Packaging

Leading Pharmaceutical Companies

Market Trends:

Personal Care Packaging

Leading Personal Care Companies

Market Trends:

Key Implications for Packaging Suppliers

Healthcare Strategy

Shifting to High Performance

High Performance

Standard Performance

Global Healthcare – Market Position

Key Strategic Initiatives

AMCOR PLC Investor Presentation 2007