Established in 1985, Shenda Group is a state-level large enterprise group in flexible plastic packaging industry in

China. The Group is specialized in the R&D, production and sale of new flexible plastic materials, and it’s one of
China’s flexible plastic packaging material production bases and the designated manufacturer of national
tobacco auxiliary materials.

Amcor’s Expansion into Emerging Markets

Amcor expands further into Chinese market with

flexible packaging acquisition
June 30, 2013 by Canadian Plastics

CopyRight©2012 Jiangsu Shenda Group Co., Ltd.

Address：Jiangsu prov. Jiangyin city Binjiang West Road 589

In a bid to expand further into the Chinese market, Australian global packaging manufacturer Amcor
Ltd. is buying the flexible packaging business of China’s Jiangsu Shenda Group Co. Ltd. for 350
million Yuan (US$57 million).

According to a statement by Melbourne-based Amcor, the acquired business is a strong fit with
its existing plant in Jiangsu province and enables sharing of overheads, optimization of
production across the sites, and operating improvements through sharing of best practices.

“Continued strong growth in consumer spending makes China one of the most attractive markets
globally. Amcor has a strong and successful position in the Chinese flexible packaging market with
nine plants, covering all the key regions,” said Amcor’s managing director and chief executive Ken
MacKenzie. “This acquisition establishes Amcor as the market leader in Eastern China, a region
that represents approximately 40% of China’s GDP. The business is a strong fit with our existing
operations and offers considerable synergy opportunities.”

Jiangsu Shenda Group operates two plants in the Jiangsu province in Eastern China; two-thirds of
its sales are to the pharmaceutical, snacks and culinary end markets.

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 “LiquiForm is an outstanding example of how Amcor is translating its deep understanding of the needs
of customers and consumers into new and improved ways of operating. Innovation is a core value for
Amcor, and this breakthrough further establishes the company as an innovation leader in the packaging
industry.

KEN Mackenzie

Amcor’s Cost Leadership Strategy:

Amcor Launches Game-Changing LiquiForm Technology

Released July 30, 2014

One step. One operation. One machine. And a step-change in efficiency and flexibility. This is
what Amcor’s launch of its breakthrough technology LiquiForm brings to the packaging market.
LiquiForm uses the consumable liquid instead of compressed air to hydraulically form and fill
the container on one machine simultaneously. By combining the forming and filling processes
into one step, LiquiForm dramatically simplifies the manufacture of rigid plastic containers for a
wide range of consumer products and significantly reduces cost and waste.

Amcor’s managing director and

CEO Ken Mackenzie says this is
“one of the most important
breakthrough technologies in
liquid packaging” seen in the last
two decades

Amcor developed the LiquiForm concept in 2006, and subsequently set up a joint venture
which owns the patented LiquiForm technology and related intellectual property. The joint
venture has signed agreements with Sidel, an industry leading manufacturer of bottling
machinery, Yoshino Kogyosho Co, Japan’s largest plastic bottle manufacturer, and Nestle
Waters. Amcor and Sidel each own a 50% interest in the joint venture. The process differs from
traditional blow moulding and filling operations in that when the preform is placed in the mould
into the preform, moulding it into the bottle shape. This results in a filled bottle, ready for
capping and labelling.

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 Amcor’s Global Alliences

Amcor enters strategic Supply Agreement with ARCA Bottling Company

Amcor has announced tha it has entered into an agreement to purchase the PET injection and blow
molding assets of Mexican firm Embotelladoras Arca, and supply PET bottles to Arca with an initial
supply agreement of eight years. Arca is the second largest Coca Cola bottling franchise in Mexico

Arca Continental is the second-largest Coca-Cola botter in Latin America and one of the largest in
the world. Within its Coca-Cola franchise territory, the company serves over 83 million consumers in
northern and western Mexico, Ecuador, Peru and northern Argentina.

The firm distributes products throughout the Northern region of Mexico. Amcor will purchase the
PET on site injection and blow molding assets of Arca for around 60$ million. This amount will be
paid in yearly installments throughout the life of the contract. Amcor currently supplies around 250
million performs to Arca annually. As a result of this agreement, Amcor will supply 100% of Arca’s
requirements, which will represent in excess of 800 million units. Amcor managing director Russell
Jones said:” This acquisition is further step forward for our Business in this region. Over the past
few years the business in Mexico has delivered substantial growth in volume and earning driven by
strong customer relationships and the conversion from glass to PET on a number of hot fill
beverages.“ Arca is the second largest Coca Cola Bottler in Mexico and it is pleasing they chose
Amcor as their partner when they decided to exit the self manufacture of PET bottles. The
acquisition price will be spread over several yearly installments and ensures that Amcor will achieve
its targeted returns by the end of the third year”

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Strategic Marketing (Flexibles Division)
Dairy Crest Pairs off with Amcor FlexCan

Dairy Crest, The largest dairy food company in the UK, has become the Latest company to choose
Amcor FlexCan from Amcor Flexibles for its new diced cheese product. Dairy crest is using the
patented innovative flexible container for it Cathedral City mature yet Mellow 200g diced cheddar

Amcor Flexcan was developed by Amcor Flexibles in partnership with German packaging machine
manufacturer ROVEMA. With manufacturing operations in 14 countries, Amcor Flexibles is the leading
flexible packaging Business in Europe and offers a comprehensive range of technological capabilities
including State-of-the-art technology

cheese. Packaging giant Amcor continues to consolidate and diversify its global business.

Amcor claims that the new pack has many benefits. It is easy to open, enclosable and it will stand
up in the fridge. Its wide opening also makes it easy to reach in and take a handful of diced cheese.
The unique design of Amcor Flexcan with its four available print surfaces provides excellent
differentiation for the Cathedral Brand in the chiller cabinet.

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 There is a Better Way to fight complexity. Creating a FOCUSED company!

Amcor Concentrates on its Core Business by Demerging

AAPD Business Units
Amcor demerged its Australasia and Packaging Distribution Business. This is a new step in the
evolution of Amcor and Management believes will lead to higher shareholder value over time.
What has been AAPD business segment within Amcor will now be known as ORORA, and will be a
separately listed company on de ASX.

It was difficult to remain a leader across a range of businesses, where each has different end
markets, products and manufacturing technologies. It is hard to operate distinct and very different
businesses. Amcor has a broad global footprint focused on Flexibles and Rigid Plastics. On the
other hand, ORORA is a regionally focused business,manufacturing fibre, metal and glass products
and a significant position in packaging Distribution (U.S.)

Shareholder value will be optimized if they are separated into 2 companies, where each are
focused on THEIR OWN UNIQUE STRATEGIC PRIORITIES AGENDAS. Each company will have its
own separate Management Team and Board.

Advantages:

-Greater Investment choice with the creation of 2 distinct ASX listed packaging companies of
substantial size.

-Increased Management Focus on two separate businesses

-Flexibility to Pursue differing strategic objectives

-The ability to adopt independent capital structures and financial policies.

Disadvantages:

- Reduced size and diversification of the Business

- Restructuring Costs

Independent Consultants have concluded that the Demerger is in the Best Interest of the
company. Shareholders will keep Amcor’s stock and receive one additional stock in the
ORORA company.

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