Creating a Strong Platform for Growth

The past 12 months have presented many challenges to Amcor’s Businesses around the world. Our ‘Way Forward’ strategy over the past four years has positioned us to be in strong financial shape to weather the tough economic conditions, and has seen us develop capabilities that will support our success in the future.

We have improved our execution focus through the disciplines of ‘The Amcor Way’: safety, customer and market focus, talent development and management, capital discipline and low cost. The benefits from this work are evident in the key metrics (when compared to our peer groups). In FY 2008/09 we initiated our ‘Procure Plus’ project. The two aims of this project are cost reduction and capability building. We want to develop ‘The Amcor Way’ of procurement that can be leveraged globally.

Looking forward, we have reaffirmed our commitment to the packaging industry with our offer to acquire certain Alcan Packaging Businesses from Rio Tinto for US$2,025 million. The offer, made on 17 August 2009, would add to our organisation approximately A$4.8 billion in sales and 14,000 employees across 80 plants in 28 countries. The strategic fit, operational alignment and substantial synergies between our organisations, combined with an attractive purchase price, make the announced acquisition an exciting opportunity for Amcor. We believe that the combined capabilities of both businesses will allow us to deliver a substantially improved value proposition for customers.

‘The Amcor Way’ has ensured we are well prepared to successfully integrate this acquisition into our organisation and embed our model into Alcan Packaging operations. The proposed acquisition will also support our stated objective of growing in our strategic business areas of flexible packaging and folding cartons packaging.