Amcor Annual 2020 Amcor Report What we make matters 2020 Annual Report 2 Cover stories Differentiated primary packaging Resilient business that serves that brings value to consumers. consumer staple end markets. Increased exposure to high-value segments Amcor people’s care and focus contributed such as Healthcare and Protein. to the supply of essential products. Innovative, more sustainable products that We enable our customers to provide solutions our customers want, and consumers expect. for global trends including e-commerce. Our cover stories Annual Report 2020 Contents 3 Contents Message from the Chairman of the Board and the CEO 4 Amcor at a glance 6 Our strategy 8 Sustainability and innovation 10 Amcor fiscal 2020 operating review 13 Form 10-K 1-124 Other information 17 Reconciliation of non-GAAP measures 21 Amcor plc Head Office / UK Establishment Address: 83 Tower Road North, Warmley, Bristol, England, BS30 8XP, United Kingdom UK Overseas Company Number: BR020803 Registered Office: 3rd Floor, 44 Esplanade, St Helier, JE4 9WG, Jersey Jersey Registered Company Number: 126984, Australian Registered Body Number (ARBN): 630 385 278 www.amcor.com Annual Report 2020 4 Welcome message Message from the Chairman of the Board and the CEO Dear Shareholder, Strong financial performance Fiscal year 2020 (FY20) was a milestone year for The business posted strong financial performance in fiscal Amcor and a year with many firsts: the first year listed year 2020. Adjusted EBIT was 7% higher and adjusted on the New York Stock Exchange, the first after the earnings per share increased by 13%, both compared to transformational acquisition of Bemis and, of course, the last year and on a constant currency basis. One of the most first time operating through a pandemic that significantly important highlights has been our ability to execute and impacted economies around the world. Faced with outperform against the things we can control. On one of unprecedented circumstances, we delivered strong those controllable aspects, working capital, we achieved performance and advanced our strategic agenda. exceptional performance, which – along with higher earnings – contributed to the delivery of $1.2 billion of free cash flow Safe, healthy and resilient – a 26% improvement on the prior year. At Amcor, safety is our most important value. We take Both our Rigid Packaging and Flexible Packaging segments care of ourselves and each other so that everyone can finished the year well through a combination of organic return home safely every day. Over the years we have built growth and disciplined cost control. The Flexible Packaging a track record of consistently improving safety indicators segment, which represents close to 80% of our global sales, in the businesses we acquire. As we integrated the largest delivered double-digit EBIT growth for the year. acquisition in our history, we experienced 10% fewer The integration of the Bemis acquisition is ahead of initial injuries than the prior year and 52% of our sites worldwide expectations. In fact, in capturing synergy benefits of $80 operated injury-free for the whole year. million during the year, we surpassed our initial estimates by Such an improvement in safety was even more remarkable 30% and are well on the way to achieve our target of $180 considering Covid-19. Although we are not immune, our million in fiscal year 2021. business has demonstrated great resilience. Early on we The benefits of the acquisition are becoming increasingly identified three guiding principles: keeping our people safe visible beyond cost synergies. Bemis was a high-quality, well- and healthy; keeping our business running; and supporting invested business that is already enhancing Amcor’s results the communities where we operate. and our value proposition for customers. We have increased Our teams then demonstrated exceptional focus, our exposure to high-value segments like Healthcare and commitment and care to minimize the effects of the Protein, where our differentiated products make us the coronavirus. We implemented extensive protocols to partner of choice for customers large and small. prevent and contain infection, sharing across regions experiences and lessons learned. Our people took great Unique proposition pride knowing that their efforts contributed directly to the Amcor offers a combination of scale, geographic supply of essential food, beverage and healthcare products reach and capabilities unique in the packaging industry. for consumers. Our teams rose to the occasion and we Our global footprint is well balanced across developed cannot thank them enough. markets (primarily North America and Western Europe) and emerging markets (including China, India and the rest of Asia, as well as Eastern Europe and Latin America). We have built best-in-class innovation capabilities to satisfy the growing needs of consumers. Annual Report 2020 Welcome message 5 The pandemic has made more evident the value Looking ahead packaging brings to consumers’ everyday life – from We are well positioned to deliver strong value for hygiene and sterilization to extended shelf life and portion shareholders over the long term. This past year underlined control – and reinforced our belief that there will always the resilient nature of our business, which serves customers be a role for packaging. Consumers’ increasing demand in defensive, consumer staple healthcare, food and for more sustainable packaged products will continue to beverage end markets. Through relentless preparation, shape the industry and reward those companies who lead rigor and focus on areas under our control, we were able the way forward. The answer is responsible packaging that to continue delivering earnings growth under volatile offers differentiated functionality while minimizing waste macro-economic conditions. in the environment. Our positive momentum sets us up very well for the A responsible packaging system will require innovative future. We will continue to rely on our care for each packaging design, improvements to waste management other’s health and safety, our talented teams, our partnership infrastructure and increased consumer participation. In with customers, our unique innovation capabilities and fiscal year 2020 we maintained our focus on sustainability our expertise on sustainability. despite the challenging operating environment and took meaningful actions on each of those three dimensions. Ultimately, our aspiration remains to be the leading global packaging company for our shareholders, our employees, We also made clear progress against our pledge for all our customers and the environment. As always, we thank our packaging to be recyclable or reusable by 2025, to you for your continued support as we accelerate forward. significantly increase our use of recycled materials and to help drive greater recycling of packaging around the world. Sustainability remains Amcor’s most exciting long-term organic growth opportunity. Creating value Our business generates strong, consistent cash flow Graeme Liebelt and we create value for shareholders in three ways: Chairman - Organic earnings growth supported by disciplined capital expenditure - An attractive, growing dividend paid quarterly - Acquisitions and share buy-backs, as reflected in the synergy benefits from the Bemis acquisition and a $500 million share buy-back completed in fiscal year 2020. Through those three factors, including accretion delivered from that $500 million share buy-back, Amcor provided Ron Delia shareholders a total return of 17% in fiscal year 2020, CEO exceeding our long-term average of 12% per year. Annual Report 2020 6 Amcor at a glance Amcor at a glance Global sales USD Employees 12.5 billion ~47,000 40+ Countries 78% 22% ~230 Flexibles Rigid Sites packaging Global sales by region Flexibles Amcor’s Flexibles business has a global presence and is one of the world’s largest 47% 24% developers and suppliers of flexible packaging and specialty folding cartons. North Western America Europe Overview 2020 Sales USD9.8 billion • Number of plants ~180 Countries 39 • Employees ~40,000 26% 3% End markets The business develops and produces flexible Emerging Australia & packaging for food, beverage, pharmaceutical, markets New Zealand medical, home- and personal-care, and other products. Rigid Packaging Amcor’s Rigid Packaging business is one of the world’s largest suppliers of plastic containers and closures. Overview 2020 Sales USD2.7 billion • Number of plants ~50 Countries 11 • Employees ~6,000 End markets The business develops and produces rigid containers and closures for food, beverage, spirits, home- and personal-care, and healthcare products. Annual Report 2020 Amcor at a glance 7 Amcor winning strategy Winning Aspiration To be THE leading global packaging company Focused Portfolio Flexible Rigid Specialty Closures Packaging Packaging Cartons The Amcor Way Differentiated capabilities that enable us to win: Talent Commercial Operational Innovation Cash and Excellence Leadership Capital Discipline Shareholder Value Creation We generate strong cash flow and redeploy it to consistently create superior shareholder value: Dividend ~4% (~ USD 750m) Historical yield Strong, Total shareholder value Reinvestment ~3-4% defensive of 10-15% per annum (~ USD 500m) Organic EPS cash flow growth with low volatility Acquisitions and/or buy-backs ~2-7% (~ USD 300-400m) EPS growth Annual Report 2020 8 Our strategy Our strategy Annual Report 2020 Our strategy 9 Amcor is a global Focused portfolio Summary