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
• The 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 equity-accounted profit after tax from the investment in AMVIG.

As AMVIG has not yet reported its half year earnings to 30 June 2009, the profit taken up in Amcor Asia’s full year earnings is the actual result for the six months to 31 December 2008, plus management’s estimate of earnings for the period January to June 2009, based on publicly available information. Any adjustment required following the announcement of AMVIG’s profit will be taken up in Amcor Asia’s 2009/10 first half results.

During the year, Amcor’s ownership in AMVIG increased from 35.4% to 38.9%. This increase was primarily due to Amcor investing HK$700 million to acquire 78.3 million shares in AMVIG at a price of HK$8.94 per share.

CONSOLIDATED ENTITIES

For the controlled entities, PBIT for the year was 37.2% higher at SG$15.5 million. Returns, measured as PBIT over average funds employed, increased from 15.5% to 28.2%.

The wholly-owned tobacco packaging operations continued to deliver sound operating performance and benefited from the upgrading of the printing capabilities at the plant in Malaysia. The business experienced strong volumes in the first half of the year, however volumes were weaker in the second half due to the loss of some important contract volumes. Although these volumes are being replaced, it is likely that volumes in 2009/10 will be lower.

The flexibles operations continued to deliver solid earnings with the new plant in Southern China creating the opportunity for more accelerated growth in the region.

FOOTNOTE

The funds invested in AMVIG, as reported in Amcor’s accounts at 30 June 2009, consist of cash payments of SG$281 million to purchase 424.5 million shares in the publicly-listed company at an average price of HK$5.01 per share, together with the injection of the two tobacco packaging operations in China (Beijing and Qingdao), which had a carrying value of SG$69 million.

The carrying value of AMVIG at 30 June 2009 in Amcor’s accounts is SG$589.9 million, with the difference between this amount and the invested funds being predominantly accounting adjustments for ‘fair value market up-lift’ at the time of exercising options to acquire additional shares.