Welcome to Amcor

1

Carolina Recycling Association Conference – March 2015

Many of the world’s leading brands entrust us to package their consumer products and enhance their reputation

We are a global leader, with a proud history

US $10 28,000

180+ 40+ 1860 S 66,000+

MANUFACTURING SITES WORLDWIDE

BILLION ANNUAL SALES CO-WORKERS GLOBALLY

COUNTRIES

OPERATIONS ACROSS

SHAREHOLDERS

BEGAN OPERATIONS IN THE

Amcor specializes in flexible and rigid plastic packaging

FLEXIBLE PACKAGING From salad bags to pharmaceuticals, our flexible packaging protects in the safest and most sustainable ways possible.

RIGID PLASTIC PACKAGING Incredibly tough and highly recyclable, our rigid plastic packaging delivers consumers convenience and security.

Western Europe • 34% of revenue • No. 1 in flexible packaging

Packaging leadership positions in our chosen markets

North America • 31% of revenue • No. 1 in rigid plastic beverage • No. 1 in medical • No. 1 in pharmaceuticals Emerging markets

• 30% revenue • High growth • No. 1 flexible packaging in Asia Pacific

• Leader in PET beverage packaging in Latin America

Australia & New Zealand • 5% of revenue • No. 1 in flexible packaging

Amcor Rigid Plastics: helping customers achieve their brand goals and building customized solutions that help them succeed

Soft drinks and water

Food

Spirits

Home and personal care

Pharmaceutical

Custom beverage

Amcor and PCR - 70 million pounds per year

Source: Method Home website

Trends in Packaging - Demand LONGER

SMALLER

PERSONAL GREENER

Extend the life of the product

Speak to me! Millennials will pay for green

Smaller and Lighter

• Desire for eco-labels

• Desire for bio-based material

• Confusion about marketing of these products

• RIC

• Keeping products fresher longer

• Reducing food waste

• Increased shelf appeal

• Thermoforms • More barrier

• Direct Print • Full body Shrink • Labels = Facts and Stories

• Direct Print • Full body Shrink • Labels = Confusion

• Less transport weight

• Less resin • More barrier • More bottles per bale

• Cheaper virgin • Central U.S. supply

• Downward price pressure on PCR

• Cheaper virgin PET

• Lower transport costs

• More PET conversion

• Downward price pressure on PCR

• 31% recycling rate in the U.S.

• Slow curbside roll-out

• Recycling Partnership and Closed Loop Fund

• EPR in Canada • Asian import volumes and quality

Trends in Packaging - Supply

OIL

VIRGIN PET

QUALITY RATES Cheaper raw

materials challenge PCR

Mechanical recycling DOES

degrade polymers

Low recycling rates are hinder bottle-to-bottle

Overcapacity of VPET will push

prices down

• Taste and color • More scrap • Storage Costs • We can blend • Some CPGs will pay a PCR premium

Amcor and PCR – Moving brands toward more use

Source: Amcor

PCR – Market Positioning

Three types of Positioning for PCR •  Company-Level Positioning •  Product Positioning •  Hybrid

Company Level

Pepsi

Product

Naked Juice

Hybrid

Method Home

Source: PepsiCo and Method Home websites

Company Level Branding

•  Company level initiatives •  Relate good deeds to all of your

products •  Specific targets for packaging •  Total amount of recycled

material used •  Carbon emission reductions

Source: PepsiCo website Source: Method Home website

Product-level PCR Branding

•  Sell sustainability and PCR as a key attribute of SKU-level product •  Creates brand trust and even “brand love” •  Willingness to go “all in” to make this work

Source: LRXD.com and PepsiCo

Hybrid Company / Product Sustainability Branding

•  Combine good deeds of company with specific product attributes

•  Can create immediate and lasting customer lifetime value

Source: Method Home website