Analyst Presentation October, Flexibles Europe & Americas

Transcription

1 Analyst Presentation October, 2010 Flexibles Europe & Americas

2 Zurich office safety In case of emergency Follow the emergency exit signs to the back side of the building Go right and follow the marked route to the meeting point ( not guilty restaurant) 2

3 Agenda Amcor Flexibles Europe & Americas Business Units Procure Plus Innovation 3

4 Agenda Amcor Flexibles Europe & Americas Business Units Procure Plus Innovation 4

5 Flexibles Europe & Americas 5

6 Safety LTI & RC Frequency Rates LTIFR Jan '08 Jun '08 Jun '09 Jan '10 Jun '10 LTIFR RCFR RCFR Focused on Changing Behaviour

7 European competitive landscape 30% 25% 20% 15% 10% 5% 0% Amcor Constantia Sealed Air Clondalkin Wipak Mondi Huhtamaki Bemis Suedpack 7 Source: PCI Euroflex 2009 Annual

8 Flexibles Europe & Americas Team President Amcor Flexibles Europe & Americas Peter Brues Fresh, Dairy & Caps Thomas Morin Snacks & Confectionery Gérard Blatrix EU Extrusion Filip Lens HP Laminates Manfred Witzstrock HP Foil Thomas Hauser Americas & EU Med Tom Cochran Sales & Marketing and Global Pharma Javier Rojo Human Resources & Communication Dea-Anne D Amico R&D, CI and EHS Bob Biasi Procurement Laurent Brunel Strategy & Integration Amy Byrick Finance & IT Simon Swann 8

9 Business Priorities Build on our Safety performance Focus on our Customers Commercialize key innovations Work as one teams and build a common culture Achieve our procurement targets Create clear manufacturing strategy Maximise Cash Flow 9

10 Agenda Amcor Flexibles Europe & Americas Business Units Procure Plus Innovation 10

11 Flexibles Europe & Americas Fresh, Dairy & Capsules UK Russia Ireland The Netherlands Germany Poland Czech Republic France Switzerland Portugal Spain Italy Turkey Morocco 11

12 Flexibles Europe & Americas High Performance Foil UK Russia Ireland The Netherlands Germany Poland Czech Republic France Switzerland Portugal Spain Italy Turkey Morocco 12

13 Flexibles Europe & Americas Snacks & Confectionery UK Russia Ireland The Netherlands Germany Poland Czech Republic France Switzerland Portugal Spain Italy Turkey Morocco 13

14 Flexibles Europe & Americas High Performance Laminations UK Russia Ireland The Netherlands Germany Poland Czech Republic France Switzerland Portugal Spain Italy Turkey Morocco 14

15 Flexibles Europe & Americas European Extrusion UK Russia Ireland The Netherlands Germany Poland Czech Republic France Switzerland Portugal Spain Italy Turkey Morocco 15

16 Flexibles Europe & Americas Americas & European Medical 16

17 Agenda Amcor Flexibles Europe & Americas Business Units Procure Plus Innovation 17

18 Procure Plus and the Amcor Way The Amcor Way is about our five business competencies that are the pillars for our success and is the next step in ensuring that we continue to build operational excellence and industry leading positions. Procure plus supports the low cost business competency but also leads to innovation for Amcor through effective supplier partnerships Amcor 2010 Confidential and Proprietary Information of Amcor Ltd

19 Procure Plus vision The Aspiration Procurement Capability Building Build world-class procurement capability in Amcor Develop unique insights into supply markets Attract and develop the best procurement talent Elevate the status of procurement Develop an Amcor Way of Procurement, that can be leveraged globally Enablers Talents Right profiles and skills Revised MIP and performance measurement Adequate training Systems Spend management Project tracking Supplier relationship management Contract management Processes Internal (procurement) Strategy building Forecasting Commodity Mgt External Interaction with functions/suppliers The Goal Sustainable Value delivery Capture cost savings opportunities of Secure supply Improve TCO Mitigate risks Enhance innovation Amcor 2010 Confidential and Proprietary Information of Amcor Ltd

20 Procure Plus aspirations Market People Unique insights and competitive advantage via deeper supplier and market understanding Best Value Agreements in the packaging industry Suppliers are Productivity partner to deliver value based on innovations and operational improvement Best procurement talent in the packaging industry Talent magnet to attract A players Top people builder via career paths and mobility planning and training/mentoring Differentiated rewards for distinctive performance Sustainable Financial Impact Culture Elevated stature of Procurement Earned place at leadership table Proactive vs. reactive Price AND value mindset Rigor and discipline at same level as our approach to manufacturing or finance Capability (Amcor Way) Improved execution through upgraded procurement capabilities Capability advantaged vs. competitors and customers Consistent tools, processes and language Amcor 2010 Confidential and Proprietary Information of Amcor Ltd

21 Procurement Excellence Procurement Excellence Skilled and engaged co-workers who deliver superior value for Amcor and establish a sustainable competitive advantage for Amcor Understanding our market Enhancing our Procurement capabilities Working as one team to develop a sustainable competitive advantage for Amcor Amcor 2010 Confidential and Proprietary Information of Amcor Ltd

22 The integrated Procure Plus vision Vision Advanced Capabilities LCC & Global Sourcing Procurement Excellence Supplier Risk Management Foundational Capabilities Sourcing & Category Management Supplier Relationship Management & Negotiation Operating Process Management Enablers People Talent Spend Analytics (SDB) Performance Tracking (Powersteering) Amcor 2010 Confidential and Proprietary Information of Amcor Ltd

23 Enablers Talent Management Talent Management Approach used by Amcor to recruit, develop, retain and reward Sales and Marketing professionals Individual Career Profiling Talent Review Organizational Talent Plan Implement Organization Action Plan Human Resource Management System Performance and Potential Assessment Procurement Leadership Development Programme Amcor 2010 Confidential and Proprietary Information of Amcor Ltd

24 AFEA Procurement org. chart VP Procurement L. Brunel Procure + Manager Finance Manager Synergy Director Directs Synergy Director Indirects Group Proc. Manager Group Proc. Manager Group Proc. Manager Group Proc. Manager Group Proc. Manager Resins+Films Alu+Paper Liquids Americas Indirects 24

25 Group Procurement structure- Indirects Example Group Procurement Manager Indirects Category Procurement Manager Category Procurement Manager Category Procurement Manager Category Procurement Manager Category Procurement Manager Logistics Energy MRO Pre-Press-CAPEX Secondary Pack Waste/ Prof services Buyer Buyer Buyer Buyer Buyer Buyer Buyer Logistics Logistics Energy MRO Secondary Packaging Pre-press Prof Services 25

26 Enablers Systems and Performance tracking Performance Tracking (KPI s, Powersteering) The systems and processes used by the business to manage the performance of Procurement across the organisation Powersteering Used to manage procurement opportunities Building Capabilities Taking Actions Tracking Impact Reviewing Performance Track progress against plan Assess financial impact against targets Provide management with visibility of progress and issues Amcor 2010 Confidential and Proprietary Information of Amcor Ltd

27 Enablers Procurement Systems 1/2 Procurement Processes Demand Management Sourcing Procure-to-Pay Monitor & Manage Directs Indirects APO, other modelling tools Artemis Spend Analytics TMS phase 3 TMS phase 1 & 2 Maintenance Approval apps Travel Prof svcs Document repository, and related workflow Unstructured discussions Supplier collaboration portal EDI erfx eprocurement ecatal (compliance) Supplier connectivity Procurement team enablement SRM Supplier performance measurement Support X-Functional and X-BG teams, eg, Price Movement Tracker Link to source systems (launch-pad or mash-up) Procurement Savings Tracker 27 27

28 Enablers Process: Projects definitions (Status and types) IDEA PLANNED IMPLEMENTED IMPACTED Ideas hopper Planned Implemented Impacted Potential savings opportunities Not included in BU s Budget Procurement Monthly report FY : not reported FY+x : reported Powersteering FY : not reported Procurement action plan for current FY Project Charter defined with BU s. Agreement on : Saving calculation methodology Estimated saving value Resources identified Project started with Supplier Higher level of confidence in the negotiation outcome High savings evaluation accuracy 1 gate of DMAC process Project secured (contract signed / grade validated...) Can have Impacted savings in the future savings still based on forecasted volume FY+x : reported Project agreed in Proc. BU s FY+1 budget Plant breakdown highly recommended Plant breakdown compulsory Price Out Projects Price variation Cost Out Projects Grade Change Rebate increase Product Substitution Prebates Reengineering Rebates var (vs WC) Supplier Change One Off Insourcing Others Others 28

29 Enablers Process: Savings validation by BUs 1. IDEA Selections BU / Procurement excecutive meeting Select projects Allocate BU s resources Validate Procurement Budget Yearly Procurement Project Selection Meeting 2. Project acceptance & follow up Quarterly Procurement Project Review Follow up on projects Identify and address issues On going financial acceptance Track savings - estimated amount - Expected start impacting date Report issue Quarterly Procurement Project Review Plant by Plant monthly Project Review no? ok 3. Project financial validation Yearly control and update of Financials Update savings based on actuals Require a formal approval from finance Savings validation 29

30 Enablers Process: Projects selection and follow up IDEA PLANNED IMPLEMENTED IMPACTED PROCUREMENT STT PROCESS STT Project Charter Project A Project B Project C Project D Project E Project F PLANNED Project A Project B Project D Project E GPM Procurement Project Selection no? ok no? Comments : - Start date issue - Saving value issue - Project status issue CPM During project life Plant Controller CPM Update STT or provide justification no? ok BU & Yearly Quarterly Quarterly Quarterly PROCUREMENT MEETINGS Procurement Project Selection Meeting Procurement Project Review Procurement Project Review Procurement Project Review BU PROJECT REVIEW Project Charter Procurement Plant by Plant monthly Project Review Procurement CI PROCESS 30 R&D

31 Foundational capabilities Sourcing & Category Management 1/2 Content Systematic sourcing approach and supplier category control to analyze and develop sourcing opportunities Tools/approaches employed General sourcing roadmap, wave planning Spend forecasting 7 step sourcing approach Gemstone strategies Amcor 2010 Confidential and Proprietary Information of Amcor Ltd

32 Foundational capabilities Sourcing & Category Management 2/2 Gemstone strategies Short-term strategies Long-term strategies Simple Volume Bundling Leverage advantage Create advantage Product Improvement Bundling on Suppliers Technically Related Bundling Cost Analysis Best Price Evaluation Volume Concentration Strategic Sourcing Product Specification Improvement Joint Process Improvement / Relationship Restruct. Product Innovation Supplier Operations Improvement Process Improvement Outsourcing/ Insourcing Re-Negotiation Best Approach/ Tools New Suppliers Trading Advantages Global Sourcing Amcor 2010 Confidential and Proprietary Information of Amcor Ltd Demand/ Compliance Management Relationship Development Performance Based Relationship Demand Management Compliance Management

33 Foundational capabilities Supplier Relationship Management Content Systematic approach to strategically plan and centrally steer relationship to its suppliers by segmenting them into different clusters Controlling of the relationship and support supplier development Best-in-class SRM Supplier Segmentation Supplier investment and Assistance Open, regular communication Opportunity and risk sharing Tools/approaches employed Supplier Performance Management Negotiation Differentiate how to deal with different suppliers / supplier categories by defined criteria Invest in / provide assistance to suppliers to support their development Continuous improvement of supplier quality Engage in frequent communication with suppliers Discuss issues / opportunities Identify / track supplier risk/ opportunities Hold suppliers accountable/ reward them as appropriate Amcor 2010 Confidential and Proprietary Information of Amcor Ltd

34 Foundational capabilities Operating process management Content Purchase-to-pay approach ensuring compliance and enabling best-in-class processes from sourcing to pay Definition of standard processes essential (e.g. approval order processes) P2P approach Identify opportunit y Develop strategy Source and negotiate Contract and procure Invoice and Pay Monitor and manage Sourcing P2P Process Enablement Tools/approaches employed Compliance Management (monitor and actively manage adherence to policies and contract) Invoice control Complete visibility into all of your company s spend Create and manage bestin-class contracts for all of your categories of spend via continuous sourcing Ensure compliance with contracts and policies for all your categories of spend Enable bestin-class processes from sourcing to pay to ensure user adoption Amcor 2010 Confidential and Proprietary Information of Amcor Ltd

35 Advanced capabilities Low cost country and global sourcing Content Systematic analysis of opportunities to expand geographic supply base outside of traditional geographic supply markets Maximize risk/value trade-offs by identifying countries with low-cost base and stable supply and quality LCC Assessment Global China India Type Brazil of LCC Mexico Vietnam Poland Tools/approaches employed Slovakia; Hungary Systematic macroeconomic / product specific screening of supplier industries Regional Manufactured Goods Czech Type of Exports Services Identification of global and regional Low Cost Countries (LCC) for respective goods / services Notes: Bubble size represents the value of exports Amcor 2010 Confidential and Proprietary Information of Amcor Ltd

36 Advanced capabilities Supplier/Business Risk Management Content Controlling of associated supplier / business risks Risks taken into account such as limited capability of suppliers; market competitiveness, constraints, etc. Development of measures to account for high risk relationships Tools/approaches employed Audit of core processes Process risk assessment (understand risk probabilities; creation of risk dashboards) Quality data reporting & analysis Business impact Supplier risk assessment High Low Leverage competition Shop best price Low Key criteria: Supply risk Strategic partnership Manage risk High Market competitiveness Internal and external constraints Corporate bargaining power Key criteria: Total cost Customer value Product differentiation Technology leadership Failure Amcor 2010 Confidential and Proprietary Information of Amcor Ltd

37 Agenda Amcor Flexibles Europe & Americas Business Units Procure Plus Innovation 37

38 AFEA R&D Product Development Focus Organized by market stream and technology Films Teams of product development managers, engineers, and key commercial leadership Industrials Pharma Reviewing key R&D projects Ensure overlaps are intentional Food R&D Leadership Team Medical Leverage global expertise to resolve technical challenges Leverage technologies across multiple market streams Pet Food Home & Personal Care Overcomes challenges of geographical decentralized R&D 38

39 Company overview Madison, WI Winterbourne, UK Gent, BE Huizhou, China Neuhausen, CH 39

40 40