PR Newswire | Nov 2, 2021 04:10PM EDT

11/02 15:10 CDT

Amcor reports solid first quarter and reaffirms outlook for fiscal 2022 ZURICH, Nov. 2, 2021

ZURICH, Nov. 2, 2021 /PRNewswire/ --

Highlights - Three Months Ended September 30, 2021

* GAAP Net Income of $202 million, up 2%; GAAP earnings per share (EPS) of 13.1 cents per share, up 4%; * Adjusted EPS of 17.7 cents per share, up 12% on a comparable constant currency basis; * Adjusted EBIT of $381 million, up 7% on a comparable constant currency basis; * Increased returns to shareholders: $64 million of shares repurchased and quarterly dividend increased to 12.0 cents per share; and * Fiscal 2022 outlook reaffirmed. Adjusted EPS growth of 7-11% on a comparable constant currency basis and adjusted Free Cash Flow of $1.1-$1.2 billion.

Solid first quarter delivered in a challenging external environment

Amcor's CEO Mr. Ron Delia said: "Amcor delivered a solid first quarter resultin line with our expectations as our teams executed well in an environment ofbroad supply chain disruptions." "While sales were tempered in some parts of the business by raw material shortages, we prioritized as much as possible security of supply for our customers, recovery of higher input costs and sales mix management. We held margins flat in our Flexibles segment and navigated through a particularly dynamic and complex environment in the Rigid Packaging business to deliver another quarter of double-digit EPS growth. As a result, we are confident inour ability to meet our earnings growth and cash flow expectations and reaffirm guidance for the full 2022 fiscal year." "Regardless of short-term dynamics, we remain laser-focused on executing our strategy for long-term value creation. Over the past several years, we have established a stronger foundation for growth by strengthening our industry-leading capabilities, driving further scale advantages and leadership in every region and increasing our exposure to high value end markets. Today, Amcor is better positioned strategically than ever before, and we are confident this will enable stronger growth and sustainable value creation for all stakeholders into the future."

Key Financials(1)

Three Months Ended September 30,

GAAP results 2020 $ 2021 $ million million

Net sales 3,097 3,420

Net income 198 202

EPS (diluted US 12.6 13.1 cents)



Three Months Ended Comparable September 30, Reported constant ?% currency ?% Adjusted non-GAAP 2020 $ 2021 $ results million million

Net sales^(2) 3,097 3,420 10 1

EBITDA 460 486 6 6

EBIT 358 381 6 7

Net income 247 271 10 10

EPS (diluted US 15.8 17.7 12 12 cents)

Free Cash Flow (190) (242) (27)



(1) Adjusted non-GAAP results exclude items which are not consideredrepresentative of ongoing operations. Comparable constant currency ?% excludesthe impact of movements in foreign exchange rates and items affectingcomparability. Further details related to non-GAAP measures andreconciliations to GAAP measures can be found under "Presentation of non-GAAP information" in this release.

(2) Comparable constant currency ?% for Net sales excludes a 9% favorableimpact from the pass through of raw material costs, a 1% unfavorable impactfrom items affecting comparability and a 1% favorable currency impact.

Note: All amounts referenced throughout this document are in US dollars unlessotherwise indicated and numbers may not add up precisely to the totals provideddue to rounding.

Shareholder returns

Dividend

The Amcor Board of Directors today declared a quarterly cash dividend of 12.00 cents per share (compared with 11.75 cents per share in the same quarter last year). The dividend will be paid in US dollars to holders of Amcor's ordinary shares trading on the NYSE. Holders of CDIs trading on the ASX will receive an unfranked dividend of 16.01 Australian cents per share, which reflects the quarterly dividend of 12.00 cents per share converted at an AUD:USD average exchange rate of 0.7497 over the five trading days ended October 26, 2021.

The ex-dividend date will be November 23, 2021, the record date will be November 24, 2021 and the payment date will be December 14, 2021.

Share repurchases

Amcor repurchased 5.2 million shares (0.3% of outstanding shares) during the three months ended September 30, 2021 for a total cost of $64 million. The Company expects to allocate approximately $400 million of cash towards share repurchases in the 2022 fiscal year.

Financial results - Three Months Ended September 30, 2021Segment information

Three Months Ended September 30, 2020 Three Months Ended September 30, 2021

Adjusted non-GAAPNet salesEBIT EBIT / EBIT / AverageNet salesEBIT EBIT / EBIT / Averageresults Sales %funds employed$ million Sales %funds employed $ million$ million %^(1) $ million %^(1)

Flexibles 2,400 312 13.0 % 2,634 339 12.9%

Rigid Packaging 698 72 10.3 % 786 62 7.9 %

Other (1) (27) - (20)

Total Amcor 3,097 358 11.6 %14.3 % 3,420 381 11.1% 15.6 %



(1) Average funds employed includes shareholders' equity and net debt,calculated using a four quarter average and Last Twelve Months adjusted EBIT.

Net sales for the Amcor Group increased by 10% on a reported basis, with 9% driven by price increases of approximately $285 million related to the pass through of higher raw material costs. On a comparable constant currency basis, net sales were 1% higher than the same period last year.

Overall volumes for the Amcor Group were in line with the same period last year. Price/mix had a favorable impact on net sales of 1%, which reflects growth across a range of high value end markets and a continued focus on optimizing mix.

Adjusted EBIT of $381 million was 7% higher than last year on a comparable constant currency basis.

Flexibles Comparable Three Months Ended constant September 30, Reported ?currency % ?% Adjusted non-GAAP 2020 $ 2021 $ results million million

Net sales^(1) 2,400 2,634 10 % 1 %

Adjusted EBIT 312 339 9 % 8 %

Adjusted EBIT / Sales %13.0 12.9

(1) Comparable constant currency ?% for Net sales excludes a 9% favorableimpact from the pass through of raw material costs, a 1% unfavorable impactfrom items affecting comparability and a 1% favorable currency impact.

Net sales for the Flexibles segment grew 10% on a reported basis, with 9% driven by price increases of approximately $210 million related to the pass through of higher raw material costs.

On a comparable constant currency basis, net sales were 1% higher than the prior period. Favorable price/mix of approximately 2% reflects a continued focus on the long-term strategy of managing mix and driving growth in higher value segments. Volumes were slightly lower as raw material shortages had a dampening effect on growth in some categories.

In North America, volume growth in the low single digit range was mainly driven by strength in the medical, condiments, liquid beverage, and confectionary end markets. This was partly offset by lower cheese, coffee and home and personal care volumes.

In Europe, volumes were lower than in the same period last year with higher volumes in pet food, medical, premium coffee and confectionary end markets offset by lower film and foil rollstock, snack food and pharmaceutical volumes.

Volumes continued to grow at mid single digit rates across the Asian emerging markets, with double digit growth in both China and India, partly offset by lower volumes in South East Asia. Volumes in Latin America were also lower than the prior period.

Adjusted EBIT of $339 million was 8% higher than in the prior period on a comparable constant currency basis reflecting favorable mix and strong cost performance.

The business maintained adjusted EBIT margins at 12.9% despite the time lag between the impact of higher raw material costs and related pricing actions.

Rigid Packaging Comparable Three Months Ended constant September 30, Reported ?currency % ?% Adjusted non-GAAP 2020 $ 2021 $ results million million

Net sales^(1) 698 786 13 % 1 %

Adjusted EBIT 72 62 (14) % (15) %

Adjusted EBIT / Sales %10.3 7.9

(1) Comparable constant currency ?% for Net sales excludes an 11% favorableimpact from the pass through of raw material costs and a 1% favorable currencyimpact.

Net sales for the Rigid Packaging segment grew by 13% on a reported basis, with 11% driven by price increases of approximately $75 million related to the pass through of higher raw material costs.

On a comparable constant currency basis, net sales were 1% higher than the prior period. Overall volumes were 1% higher than the prior period and price/mix had no material impact on net sales.

In North America, beverage volumes were marginally ahead of the prior year with hot fill container volumes down 1% against a strong comparative period. Specialty container volumes were lower than the prior year which benefited from strong volumes in the home and personal care category.

In Latin America, volumes grew at double digit rates with higher volumes in Argentina, Brazil and Colombia.

Adjusted EBIT of $62 million was adversely impacted by unprecedented industry wide supply chain complexity and disruptions in North America. Demand remained elevated and increasingly volatile in the beverage segment while the business continued to operate at full capacity and with historically low levels of inventory. Combined with further inflation and shortages for key raw materials, the business experienced operating inefficiencies, higher costs and constrained sales. This was partly offset by higher earnings in Latin America.

We anticipate the industry wide supply chain challenges currently experienced in North America will improve through the second half of fiscal 2022.

Other Three Months Ended September 30,

Adjusted EBIT 2020 $ million2021 $ million

AMVIG (equity accounted investment, net of 3 - tax)

Corporate expenses (30) (20)

Total Other (27) (20)

Net interest and income tax expense

Net interest expense for the three months ended September 30, 2021 was $35 million and was in line with the same period last year. Tax expense for the three months ended September 30, 2021 (excluding amounts related to non-GAAP adjustments) was $73 million and was in line with the same period last year. Adjusted tax expense represents an effective tax rate of 21.2% in the current period (22.3% in the same period last year).

Free Cash Flow

Adjusted free cash outflow was $242 million and compares with an outflow of $190 million last year. The higher use of cash was mainly driven by the timing impact of higher raw material costs on working capital.

Net debt was $5,959 million at September 30, 2021. Leverage, measured as net debt divided by adjusted trailing twelve month EBITDA, was 2.9 times, in line with Amcor's expectations given the seasonality of cash flows.

Fiscal 2022 guidance

Consistent with guidance provided in August 2021, for the twelve month period ending June 30, 2022, the Company expects:

* Adjusted EPS growth of approximately 7% to 11% on a comparable constant currency basis, or approximately 79.0 to 81.0 cents per share on a reported basis assuming current exchange rates prevail through fiscal 2022. * Adjusted Free Cash Flow of approximately $1.1 to $1.2 billion. * Approximately $400 million of cash to be allocated towards share repurchases.

Amcor's guidance contemplates a range of factors which create a higher degree of uncertainty and additional complexity when estimating future financial results. Further information can be found under 'Cautionary Statement Regarding Forward-Looking Statements' in this release.

Conference Call

Amcor is hosting a conference call with investors and analysts to discuss these results on Tuesday November 2, 2021 at 5:30pm US Eastern Daylight Time / Wednesday November 3, 2021 at 8:30am Australian Eastern Daylight Time. Investors are invited to listen to a live webcast of the conference call at our website, www.amcor.com, in the "Investors" section.

Those wishing to access the call should use the following toll-free numbers, with the Conference ID 5385928:

* US & Canada - 866 211 4133 * Australia - 1800 287 011 * United Kingdom - 0800 051 7107 * Singapore - 800 852 6506 * Hong Kong - 800 901 563

From all other countries, the call can be accessed by dialing +1 647 689 6614 (toll).

A replay of the webcast will also be available in the Investors section at www.amcor.com following the call.

About Amcor

Amcor is a global leader in developing and producing responsible packaging for food, beverage, pharmaceutical, medical, home and personal-care, and other products. Amcor works with leading companies around the world to protect their products and the people who rely on them, differentiate brands, and improve supply chains through a range of flexible and rigid packaging, specialty cartons, closures and services. The Company is focused on making packaging that is increasingly light-weighted, recyclable and reusable, and made using an increasing amount of recycled content. Around 46,000 Amcor people generate $13 billion in annual sales from operations that span about 225 locations in 40-plus countries. NYSE: AMCR; ASX: AMC

www.amcor.com I LinkedIn I Facebook I Twitter I YouTube

Contact Information

Investors

Tracey Whitehead Damien Bird

Global Head of Investor Vice President Investor Relations, Amcor Relations, Amcor

+61 3 9226 9028 / +1 +61 3 9226 9070 2244785790

tracey.whitehead@amcor.comdamien.bird@amcor.com



Media - Australia Media - Europe Media - North America

James Strong Ernesto Duran Daniel Yunger

Citadel-MAGNUS Head of Global Kekst CNC Communications, Amcor

+61 448 881 174 +41 78 698 69 40 +1 212 521 4879

jstrong@citadelmagnus.com ernesto.duran@amcor.comdaniel.yunger@kekstcnc.com



Amcor plc UK Establishment Address: 83 Tower Road North, Warmley, Bristol, England, BS30 8XP, United KingdomUK Overseas Company Number: BR020803 Registered Office: 3rd Floor, 44 Esplanade, St Helier, JE4 9WG, JerseyJersey Registered Company Number: 126984, Australian Registered Body Number (ARBN): 630 385 278

Cautionary Statement Regarding Forward-Looking Statements

This document contains certain statements that are "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified with words like "believe," "expect," "target," "project," "may," "could," "would," "approximately," "possible," "will," "should," "intend," "plan," "anticipate," "estimate," "potential," "outlook," or "continue," the negative of these words, other terms of similar meaning or the use of future dates. Such statements are based on the current expectations of the management of Amcor and are qualified by the inherent risks and uncertainties surrounding future expectations generally. Actual results could differ materially from those currently anticipated due to a number of risks and uncertainties. None of Amcor or any of its respective directors, executive officers or advisors provide any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. Risks and uncertainties that could cause actual results to differ from expectations include, but are not limited to: changes in consumer demand patterns and customer requirements; the loss of key customers, a reduction in production requirements of key customers; significant competition in the industries and regions in which Amcor operates; failure by Amcor to expand its business; failure to successfully integrate acquisitions; challenges to or the loss of Amcor's intellectual property rights; adverse impacts from the ongoing COVID-19 pandemic; challenging future global economic conditions; impact of operating internationally; price fluctuations or shortages in the availability of raw materials and other inputs; disruptions to production, supply and commercial risks; a failure in our information technology systems; an inability to attract and retain key personnel; costs and liabilities related to current and future environmental and health and safety laws and regulations; labor disputes; the possibility that the phase out of the London Interbank Offered Rate ("LIBOR") causes the interest expense to increase; foreign exchange rate risk; an increase in interest rates; a significant increase in indebtedness; failure to hedge effectively against adverse fluctuations in interest rates and foreign exchange rates; significant write-down of goodwill and/or other intangible assets; need to maintain an effective system of internal control over financial reporting; inability of the Company's insurance policies to provide adequate protections; litigation, including product liability claims; increasing scrutiny and changing expectations with respect to Amcor Environmental, Social and Governance policies resulting in increased costs; changing government regulations in environmental, health and safety matters; changes in tax laws or changes in our geographic mix of earnings; and the Company's ability to develop and successfully introduce new products; and other risks and uncertainties identified from time to time in Amcor's filings with the U.S. Securities and Exchange Commission (the "SEC"), including without limitation, those described under Item 1A. "Risk Factors" of Amcor's annual report on Form 10-K for the fiscal year ended June 30, 2021 and any subsequent quarterly reports on Form 10-Q. You can obtain copies of Amcor's filings with the SEC for free at the SEC's website (www.sec.gov). Forward-looking statements included herein are made only as of the date hereof and Amcor does not undertake any obligation to update any forward-looking statements, or any other information in this communication, as a result of new information, future developments or otherwise, or to correct any inaccuracies or omissions in them which become apparent, except as expressly required by law. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.

Presentation of non-GAAP information

Included in this release are measures of financial performance that are not calculated in accordance with U.S. GAAP. These measures include adjusted EBIT (calculated as earnings before interest and tax), adjusted net income, adjusted earnings per share, adjusted free cash flow and net debt. In arriving at these non-GAAP measures, we exclude items that either have a non-recurring impact on the income statement or which, in the judgment of our management, are items that, either as a result of their nature or size, could, were they not singled out, potentially cause investors to extrapolate future performance from an improper base. While not all inclusive, examples of these items include:

* material restructuring programs, including associated costs such as employee severance, pension and related benefits, impairment of property and equipment and other assets, accelerated depreciation, termination payments for contracts and leases, contractual obligations, and any other qualifying costs related to the restructuring plan; * material sales and earnings from disposed or ceased operations and any associated profit or loss on sale of businesses or subsidiaries; * consummated and identifiable divestitures agreed to with certain regulatory agencies as a condition of approval for Amcor's acquisition of Bemis; * impairments in goodwill and equity method investments; * material acquisition compensation and transaction costs such as due diligence expenses, professional and legal fees, and integration costs; * material purchase accounting adjustments for inventory; * amortization of acquired intangible assets from business combination; * significant property impairments, net of insurance recovery; * payments or settlements related to legal claims; and * impacts from hyperinflation accounting.

Amcor also evaluates performance on a comparable constant currency basis, which measures financial results assuming constant foreign currency exchange rates used for translation based on the average rates in effect for the comparable prior year period. In order to compute comparable constant currency results, we multiply or divide, as appropriate, current-year U.S. dollar results by the current year average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior-year average foreign exchange rates. We then adjust for other items affecting comparability. While not all inclusive, examples of items affecting comparability include the difference between sales or earnings in the current period and the prior period related to acquired, disposed, or ceased operations. Comparable constant currency net sales performance also excludes the impact from passing through movements in raw material costs.

Management has used and uses these measures internally for planning, forecasting and evaluating the performance of the Company's reporting segments and certain of the measures are used as a component of Amcor's board of directors' measurement of Amcor's performance for incentive compensation purposes. Amcor believes that these non-GAAP measures are useful to enable investors to perform comparisons of current and historical performance of the Company. For each of these non-GAAP financial measures, a reconciliation to the most directly comparable U.S. GAAP financial measure has been provided herein. These non-GAAP financial measures should not be construed as an alternative to results determined in accordance with U.S. GAAP. The Company provides guidance on a non-GAAP basis as we are unable to predict with reasonable certainty the ultimate outcome and timing of certain significant forward-looking items without unreasonable effort. These items include but are not limited to the impact of foreign exchange translation, restructuring program costs, asset impairments, possible gains and losses on the sale of assets, and certain tax related events. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP earnings and cash flow measures for the guidance period.

Dividends

Amcor has received a waiver from the ASX's settlement operating rules, which will allow the Company to defer processing conversions between its ordinary share and CDI registers from November 23, 2021 to November 24, 2021, inclusive.

U.S. GAAP Condensed Consolidated Statements of Income (Unaudited)

Three Months Ended September 30,

($ million) 2020 2021

Net sales 3,097 3,420

Cost of sales (2,443) (2,770)

Gross profit 654 650

Selling, general, and administrative expenses (329) (313)

Research and development expenses (26) (25)

Restructuring and related expenses, net (23) (8)

Other expenses, net - (8)

Operating income 276 296

Interest expense, net (37) (35)

Other non-operating income, net 3 5

Income before income taxes and equity in income of 242 266 affiliated companies

Income tax expense (61) (63)

Equity in income of affiliated companies, net of 19 - tax

Net income 200 203

Net income attributable to non-controlling (2) (1) interests

Net income attributable to Amcor plc 198 202

USD:EUR FX rate 0.8558 0.8482



Basic earnings per share attributable to Amcor 0.127 0.131

Diluted earnings per share attributable to Amcor 0.126 0.131

Weighted average number of shares outstanding - 1,561 1,530 Basic

Weighted average number of shares outstanding - 1,566 1,534 Diluted

U.S. GAAP Condensed Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended September 30,

($ million) 2020 2021

Net income 200 203

Depreciation, amortization and impairment 145 177

Changes in operating assets and liabilities (439) (562)

Other non-cash items (16) 70

Net cash used in operating activities (110) (112)

Purchase of property, plant and equipment and other (114) (145) intangible assets

Proceeds from sale of property, plant and equipment 3 - and other intangible assets

Proceeds from divestitures 138 -

Net debt proceeds 258 364

Dividends paid (188) (183)

Share buy-back/cancellations - (64)

Share purchases, net of proceeds received 5 (49)

Other, including effects of exchange rate on cash and22 (28) cash equivalents

Net increase (decrease) in cash and cash equivalents 14 (217)

Cash and cash equivalents at the beginning of the 743 850 year

Cash and cash equivalents at the end of the period 757 633

U.S. GAAP Condensed Consolidated Balance Sheets (Unaudited)

($ million) June 30, September 30, 2021 2021

Cash and cash equivalents 850 633

Trade receivables, net 1,864 1,938

Inventories, net 1,991 2,113

Property, plant and equipment, net 3,761 3,701

Goodwill and other intangible assets, net 7,254 7,177

Other assets 1,468 1,482

Total assets 17,188 17,044

Trade payables 2,574 2,412

Short-term debt and current portion of 103 68 long-term debt

Long-term debt, less current portion 6,186 6,524

Accruals and other liabilities 3,504 3,335

Shareholders equity 4,821 4,705

Total liabilities and shareholders' equity 17,188 17,044



Reconciliation of Non-GAAP Measures

Reconciliation of adjusted Earnings before interest, tax, depreciation and amortization (EBITDA), Earnings before interest and tax (EBIT), Net income, and Earnings per share (EPS)

Three Months Ended September 30, 2020 Three Months Ended September 30, 2021

EPS EPS Net (Diluted Net (Diluted ($ million) EBITDA EBIT Income EBITDAEBIT Income US US cents) cents)

Net income attributable to Amcor 198 198 198 12.6 202 202 202 13.1

Net income attributable to non-controlling interests2 2 1 1

Tax expense 61 61 63 63

Interest expense, net 37 37 35 35

Depreciation and amortization 143 146

EBITDA, EBIT, Net income and EPS 441 298 198 12.6 447 301 202 13.1

Material restructuring and related costs 14 14 14 0.9 7 7 7 0.5

Net gain on disposals^(1) (9) (9) (9) (0.6) - - - -

Material transaction and other costs^(2) 9 9 9 0.6 2 2 2 0.2

Material impact of hyperinflation 4 4 4 0.3 2 2 2 0.1

Property and other losses, net^(3) - - - - 28 28 28 1.8

Amortization of acquired intangibles 41 41 2.6 41 41 2.7

Tax effect of above items (10) (0.6) (11) (0.7)

Adjusted EBITDA, EBIT, Net income and EPS 460 358 247 15.8 486 381 271 17.7



Reconciliation of adjusted growth to comparable constant currency growth

% growth - Adjusted EBITDA, EBIT, Net income, and EPS 6 6 10 12

% items affecting comparability^(4) 1 1 1 1

% currency impact (1) (1) (1) (1)

% comparable constant currency growth 6 7 10 12



(1) The three months ended September 30, 2020 includes $15 million gainrealized upon disposal of AMVIG and losses on disposal of other non-corebusinesses.

(2) Includes costs associated with the Bemis acquisition.

(3) Property and other losses, net includes property and related businesslosses primarily associated with the destruction of the Company's Durban, SouthAfrica facility during general civil unrest in July 2021 net of insurancerecovery deemed probable for incurred losses.

(4) Reflects the impact of disposed and ceased operations.

Reconciliation of adjusted EBIT by reporting segment

Three Months Ended September 30, Three Months Ended September 30, 2020 2021

($ million) FlexiblesRigid OtherTotal FlexiblesRigid OtherTotal Packaging^(1) Packaging^(1)

Net income attributable to 198 202 Amcor

Net income attributable to 2 1 non-controlling interests

Tax expense 61 63

Interest 37 35 expense, net

EBIT 258 58 (17)298 264 59 (22)301

Material restructuring 6 8 1 14 7 - - 7 and related costs

Net (gain) / loss on 6 - (15)(9) - - - - disposals^(2)

Material transaction and3 1 5 9 - - 2 2 other costs^(3)

Material impact of - 4 - 4 - 2 - 2 hyperinflation

Property and other losses, - - - - 28 - - 28 net^(4)

Amortization of acquired 40 1 - 41 40 1 - 41 intangibles

Adjusted EBIT 312 72 (27)358 339 62 (20)381

Adjusted EBIT /13.0% 10.3 % 11.6%12.9% 7.9 % 11.1%sales %



Reconciliation of adjusted growth to comparable constant currency growth

% growth - 9 (14) 6 Adjusted EBIT

% items affecting - - 1 comparability^ (5)

% currency (1) (1) (1) impact

% comparable constant 8 (15) 7 currency

(1) Other includes equity in income of affiliated companies, net of tax andgeneral corporate expenses.

(2) The three months ended September 30, 2020 includes $15 million gainrealized upon disposal of AMVIG and losses on disposal of other non-corebusinesses.

(3) Includes costs associated with the Bemis acquisition.

(4) Property and other losses, net includes property and related businesslosses primarily associated with the destruction of the Company's Durban, SouthAfrica, facility during general civil unrest in July 2021 net of insurancerecovery deemed probable for incurred losses.

(5) Reflects the impact of disposed and ceased operations.

Reconciliations of adjusted Free Cash Flow

Three Months Ended September 30,

($ million) 2020 2021

Net cash used in operating activities (110) (112)

Purchase of property, plant, and equipment and other (114) (145) intangible assets

Proceeds from sale of property, plant, and equipment and 3 - other intangible assets

Material transaction and integration related costs 31 15

Adjusted Free Cash Flow^(1) (190) (242)



(1) Adjusted Free Cash Flow excludes material transaction and integration related cash costs because these cash flows are not considered to be directly related to ongoing operations.



Three Months Ended September 30,

($ million) 2020 2021

Adjusted EBITDA 460 486

Interest (paid)/received, net (18) 1

Income tax paid (107) (55)

Purchase of property, plant and equipment and other (114) (145) intangible assets

Proceeds from sale of property, plant and equipment and 3 - other intangible assets

Movement in working capital (416) (512)

Other 3 (17)

Adjusted Free Cash Flow^(1) (190) (242)



(1) Adjusted Free Cash Flow excludes material transaction and integration related cash costs because these cash flows are not considered to be directly related to ongoing operations.

Reconciliation of net debt

($ million) June 30, September 30, 2021 2021

Cash and cash equivalents (850) (633)

Short-term debt 98 63

Current portion of long-term debt 5 5

Long-term debt excluding current portion of 6,186 6,524 long-term debt

Net debt 5,439 5,959

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SOURCE Amcor