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Please refer to the important disclosures and analyst certification on inside back cover of this document, or on ourwebsite www.macquarie.com/disclosures.

AUSTRALIA

AMC AU Outperform

Price (at 07:10, 18 Sep 2013 GMT) A$10.80Valuation A$ 11.24- DCF (WACC 8.0%, beta 0.9, ERP 0.1%, RFR 0.1%, TGR 0.0%) 12-month target A$ 11.24

12-month TSR % +8.3

Volatility Index Low

GICS sector Materials

Market cap A$m 13,036

30-day avg turnover A$m 51.7

Number shares on issue m 1,207

Investment fundamentalsYear end 30 Jun 2013A 2014E 2015E 2016E

Revenue m 12,425 14,253 15,175 15,974EBIT m 1,134 1,335 1,460 1,557Reported profit m 601 824 911 978

Adjusted profit m 690 824 911 978Gross cashflow m 1,193 1,344 1,440 1,514CFPS 98.9 111.4 119.3 125.5CFPS growth % 3.7 12.6 7.1 5.1PGCFPS x 10.9 9.7 9.0 8.6PGCFPS rel x 1.04 1.14 1.19 1.22EPS adj 57.2 68.3 75.5 81.1EPS adj growth % 9.0 19.5 10.5 7.4PER adj x 18.9 15.8 14.3 13.3PER rel x 1.14 1.11 1.12 1.12Total DPS 40.0 45.0 47.5 50.0

Total div yield % 3.7 4.2 4.4 4.6Franking % 0 0 0 0ROA % 9.5 10.4 11.0 11.4ROE % 20.0 22.4 23.5 23.7EV/EBITDA x 10.6 9.3 8.7 8.2Net debt/equity % 107.2 99.7 91.3 79.7P/BV x 3.6 3.5 3.3 3.1

AMC AU vs ASX 100, & rec history

Note: Recommendation timeline - if not a continuous line, then there was noMacquarie coverage at the time or there was an embargo period.

Source: FactSet, Macquarie Research, September 2013

(all figures in AUD unless noted)

18 September 2013Macquarie Securities (Australia) Limited

AmcorBerry downgrade not a direct read-thruEvent US packaging company Berry Plastics lowered Sept quarter outlook and now

expects a 10% y/y decline for EBITDA.The company cited no material

improvement in volumes which continue to track down lower y/y, similar to

recent prior quarters. Note the last few quarters have had volumes down ~2%

y/y. In addition, inventory reduction will cost the company $2-4m of EBITDA in

negative fixed cost absorption.

As per recent result, AMC is seeing generally flat volumes in both US andEurope. Rigid Plastics is 25% of AMC sales, Flexibles 51% and 24%

fibre/metal/glass. North America is 32% of sales and Western Europe 26%.

Berry Plastics is a North American plastic packaging manufacturer. It operates

through three segments: Rigid Packaging (56% of sales), Engineered

Materials (28%) and Flexible Packaging (16%). The Rigid Packaging segment

comprises Rigid Open Top and Rigid Closed Top, which includes sales

containers, foodservice items, housewares, closures, overcaps, bottles,

prescription containers and tubes. The Flexible Packaging segment consists

of high barrier, multilayer film products as well as finished flexible packages

such as printed bags and pouches.

Impact Mix and end market differentials are important when assessing global peer

results. AMC is much more beverage-exposed in the US and doesn't

have much food flexibles presence in the US(Europe is its big

market). AMC's flexibles exposure is pharma/healthcare, which are very

defensive and as per recent result, continuing to hold up well. Whilst not

positive, we believedirect read through from Berry is limited.

On the Rigid Plastics side, AMC's business is mainly beverage-related vs

Berry's Rigid Packaging business which is broader in terms of exposure (food,

beverage, general). Ithasn't been a great US summer so there is likely

to be some negative Sept Qtr volume impactfor AMC given it was a hot

summer last year (we saw this in the June quarter so likely to be some carry-

over into Q1).

Demerger in mid-December is the key catalyst over the next few months

(AGM is 24 Oct). Please refer to our most recent research for more detail:

AmcorDemerger of equals?

Earnings and target price revision No change.

Price catalyst

12-month price target: A$11.24 based on a DCF methodology.

Catalyst: Oct 24 AGM, Early Nov scheme docs

Action and recommendation

Outperform, $11.24 TP.

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Macquarie Private Wealth Amcor

18 September 2013 2

Source: Macquarie Research, September 2013

Amcor Limited 2010a 2011a 2012a 1H13a 2H13a 2013a 1H14e 2H14e 2014e 2015e 2016e

Sales Revenue 9,850 12,412 12,193 6,035 6,390 12,425 6,969 7,284 14,253 1 5,175 15,974

Growth 3% 26% -2% -1% 5% 2% 15% 14% 15% 6% 5%

Other Revenue 114 156 174 111 102 213 111 102 213 213 213

Total Revenue 9,964 12,568 12,367 6,146 6,492 12,638 7,080 7,386 14,466 1 5,388 16,186

EBITDA 1,214 1,514 1,557 768 842 1,610 871 957 1,828 1,960 2,063

Margin 12% 12% 13% 13% 13% 13% 13% 13% 13% 13% 13%

- Depreciation 425 472 455 220 222 442 228 231 459 466 471

EBITA 789 1043 1102 548 620 1168 643 726 1369 1494 1591

- Amortisation 30 40 40 17 17 34 17 17 34 34 34EBIT 759 1,003 1,061 531 603 1,134 626 709 1,335 1,460 1,557

Margin 7.7% 8.1% 8.7% 8.8% 9.4% 9.1% 9.0% 9.7% 9.4% 9.6% 9.7%

- Net Interest Exp 183 217 206 100 120 220 123 121 244 240 230

Pre-tax Profit 576 786 856 431 483 914 504 587 1,091 1,220 1,327

- Tax Expense 148 193 197 97 99 196 111 129 240 281 318

Tax Rate (Ord) 26% 25% 23.0% 22.5% 20.6% 21.5% 22.0% 22.0% 22.0% 23.0% 24.0%

Net Profit 428 594 659 334 384 717 393 458 851 940 1,008

+ Net Abnormals -226 -214 -222 -84 -5 -89 0 0 0 0 0

+ Net Extraordiaries 0 0 0 0 0 0 0 0 0 0 0

IFRS adjustments 0 0 0 0 0 0 0 0 0 0 0

- Minority Interests 19 23 24 12 16 28 13 14 27 29 30

Reported Profit 183 357 413 238 362 601 380 444 824 911 978

Profit Before Abnormals 409 570 635 322 368 690 380 444 824 911 978

Adj Profit (abn and amort) 409 570 635 322 368 690 380 444 824 911 978

Gross Cashflow 697 912 992 484 651 1,135 636 711 1,347 1,432 1,504

EPS (adj) 35.0 46.6 52.4 26.7 30.5 57.2 31.5 36.8 68.3 75.5 81.1

EPS Growth -19% 33% 13% 7% 11% 9.0% 18.0% 20.8% 19.5% 11% 7%

CFPS 60 74 82 40 54 94 53 59 112 119 125

DPS 29.5 35.0 37.0 19.5 20.5 40.0 22.0 23.0 45.0 48 50Franking 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

EFPOWA 1,162 1,225 1,211 1,206 1,207 1,206 1,207 1,207 1,207 1,207 1,207

Segment Contributions

Australasia and Packaging Distribution 161 160 153 83 67 146 95 92 187 218 225

Flexibles 397 621 683 345 397 742 407 462 870 945 1022

Rigid Plastics 213 243 264 123 156 279 141 181 323 343 356

Investments/Other -12 -20 -39 -19 -14 -33 -18 -27 -45 -46 -47

Total EBIT 759 1003 1061 531 607 1134 626 709 1335 1460 1557

EBIT margins

Australasia and Packaging Distribution 5.8% 5.6% 5.3% 5.6% 4.7% 5.0% 5.7% 5.9% 5.8% 6.5% 6.6%

Flex ibles 9.0% 9.9% 11.3% 11.1% 12.1% 11.6% 11.2% 12.2% 11.7% 11.8% 11.9%

Rigid Plastics 8.3% 7.7% 8.1% 8.5% 9.5% 9.0% 8.5% 9.4% 9.0% 9.0% 9.0%

Total EBIT 7.7% 8.1% 8.7% 8.8% 9.5% 9.1% 9.0% 9.7% 9.4% 9.6% 9.7%

Cashflow Analysis

EBITDA 1,214 1,514 1,557 768 842 1,610 871 957 1,828 1,960 2,063

ch. In Working Capital -393 28 260 -161 108 -53 -205 95 -110 -127 -41

Net Interest Paid -183 -206 -206 -88 -131 -218 -123 -121 -244 -240 -230

Tax Paid -89 -148 -113 -88 -50 -138 -99 -111 -210 -260 -298

Other 235 -402 -458 -97 -57 -154 -20 -30 -50 -50 -50

Total Operating Cashflow 784 786 1,040 334 713 1,047 424 790 1,215 1,284 1,443

Capex -502 -624 -705 -261 -215 -476 -238 -246 -484 -516 -531

PPE Sale Proceeds 26 79 42 80 9 90 0 0 0 0 0

Investments Movement -2,446 -324 -115 -104 -97 -201 0 0 0 0 0

Loans Movement 3 -1 2 -1 -1 -2 0 0 0 0 0

Other 0 0 0 0 0 0 0 0 0 0 0

Total Investing Cashflow -2,918 -870 -776 -285 -304 -589 -238 -246 -484 -516 -531

Proceeds from Equity Issues 1,573 24 -188 -41 -17 -59 0 0 0 0 0

Borrow ings Movement 1,021 543 507 196 -84 112 0 0 0 0 0

Dividends Paid -286 -433 -444 -241 -237 -478 -247 -265 -513 -555 -585

Other -5 0 0 0 0 0 0 0 0 0 0

Total Financing Cashflow 2,303 134 -125 -86 -339 -425 -247 -265 -513 -555 -585

Adjustments 0 0 0 0 0 0 -6 -117 -123 -115 -94

Net Cash Movement 170 50 140 -38 70 32 -67 161 94 98 232

Balance Sheet

Cash 267 224 358 360 395 395 395 395 395 395 395

Other CA 3,279 3,436 3,371 3,399 3,803 3,803 3,855 4,520 4,520 4,839 5,083

Fixed Assets 4,801 4,497 4,668 4,596 4,883 4,883 4,893 4,908 4,908 4,958 5,018Intangibles 1,836 1,882 2,000 2,038 2,301 2,301 2,284 2,267 2,267 2,232 2,198

Other NCA 1,128 885 939 854 1,040 1,040 1,040 1,040 1,040 1,040 1,040

Total As se ts 11,310 10,924 11,335 11,246 12,421 12,421 12,466 13,130 13,130 13,464 13,734

S/T Debt (bank) 1,379 356 918 1,507 1,185 1,185 1,185 1,185 1,185 1,185 1,185

L/T Debt (bank) 1,933 3,064 2,996 2,627 3,178 3,178 3,244 3,083 3,083 2,986 2,753

Other Liabilities 3,875 3,756 4,041 3,693 4,358 4,358 4,215 4,976 4,976 5,157 5,348

Net Assets 4,124 3,749 3,380 3,420 3,701 3,701 3,823 3,886 3,886 4,137 4,448

S/H Funds 4,068 3,688 3,291 3,337 3,607 3,607 3,716 3,765 3,765 3,988 4,269

Min Interests 56 60 89 83 94 94 107 121 121 150 180

Total Equity 4,124 3,749 3,380 3,420 3,701 3,701 3,823 3,886 3,886 4,137 4,448

Net Debt/Equity 74% 85% 105% 110% 107% 107% 106% 100% 100% 91% 80%

ND:ND+E 42% 46% 51.3% 52.5% 51.7% 52% 51% 50% 50% 48% 44%

EBITDA: Int cover (x) 6.6 7.0 7.6 7.7 7.0 7.3 7.1 7.9 7.5 8.2 8.9

EBIT Int Cover (x) 4.1 4.6 5.2 5.3 5.0 5.2 5.1 5.8 5.5 6.1 6.8

RoE (%) 10% 16% 20% 20% 21% 19% 21% 24% 22% 23% 23%

RoA (%) 7% 9% 9% 9.4% 9.7% 9.1% 10.1% 10.8% 10.2% 10.8% 11.3%

A$:US$ 0.880 0.991 1.032 1.033 0.998 1.016 0.905 0.890 0.897 0.865 0.857

A$:Euro 0.635 0.726 0.772 0.802 0.766 0.784 0.707 0.696 0.701 0.660 0.622

Net debt 3044 3195 3556 3774 3968 3968 4034 3873 3873 3775 3543Net debt to EBITDA 2.5 2.1 2.3 2.5 2.4 2.5 2.3 2.0 2.1 1.9 1.7

Total debt to EBITDA 2.7 2.3 2.5 2.7 2.6 2.7 2.5 2.2 2.3 2.1 1.9

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Macquarie Private Wealth Amcor

18 September 2013 3

Important disclosures:

Recommendation definitions

Macquarie - Australia/New ZealandOutperformreturn >3% in excess of benchmark returnNeutralreturn within 3% of benchmark returnUnderperformreturn >3% below benchmark return

Benchmark return is determined by long term nominalGDP growth plus 12 month forward market dividendyield

Macquarie Asia/EuropeOutperformexpected return >+10%

Neutralexpected return from -10% to +10%Underperformexpected return +10%Neutralexpected return from -10% to +10%Underperformexpected return 5% in excess of benchmark returnNeutralreturn within 5% of benchmark returnUnderperformreturn >5% below benchmark return

Macquarie - USAOutperform (Buy)return >5% in excess of Russell3000 index returnNeutral (Hold)return within 5% of Russell 3000 indexreturnUnderperform (Sell)return >5% below Russell 3000index return

Volatility index definition*

This is calculated from the volatility of historicalprice movements.

Very highhighest riskStock should beexpected to move up or down 60100% in a year

investors should be aware this stock is highlyspeculative.

Highstock should be expected to move up ordown at least 4060% in a yearinvestors shouldbe aware this stock could be speculative.

Mediumstock should be expected to move upor down at least 3040% in a year.

Lowmediumstock should be expected tomove up or down at least 2530% in a year.

Lowstock should be expected to move up ordown at least 1525% in a year.* Applicable to Asia/Australian/NZ/Canada stocksonly

Recommendations 12 monthsNote:Quant recommendations may differ fromFundamental Analyst recommendations

Financial definitions

All "Adjusted" data items have had the followingadjustments made:

Added back: goodwill amortisation, provision forcatastrophe reserves, IFRS derivatives & hedging,IFRS impairments & IFRS interest expenseExcluded: non recurring items, asset revals, propertyrevals, appraisal value uplift, preference dividends &minority interests

EPS= adjusted net profit / efpowa*ROA= adjusted ebit / average total assetsROA Banks/Insurance= adjusted net profit /averagetotal assetsROE= adjusted net profit / average shareholders fundsGross cashflow= adjusted net profit + depreciation*equivalent fully paid ordinary weighted averagenumber of shares

All Reported numbers for Australian/NZ listed stocksare modelled under IFRS (International FinancialReporting Standards).

Recommendation proportions For quarter ending 30 June 2013

AU/NZ Asia RSA USA CA EUROutperform 49.80% 57.68% 48.05% 41.13% 61.75% 47.10% (for US coverage by MCUSA, 8.12% of stocks followed are investment banking clients)Neutral 39.85% 24.45% 42.86% 54.70% 34.42% 30.89% (for US coverage by MCUSA, 6.60% of stocks followed are investment banking clients)Underperform 10.35% 17.87% 9.09% 4.17% 3.83% 22.01% (for US coverage by MCUSA, 0.00% of stocks followed are investment banking clients)

Company Specific Disclosures:Macquarie and its affiliates collectively and beneficially own or control 1% or more of any class of Amcor Limited's equity securities. Risk Disclosure:

Any inability to compete successfully in their markets may harm the business. This could be a result of many factors which may include geographic mixand introduction of improved products or service offerrings by competitors.The results of operations may be materially affected by global economicconditions generally, including conditions in financial markets.The company is exposed to market risks, such as changes in interest rates, foreignexchange rates and input prices. From time to time, the company will enter into transactions, including transactions in derivative instruments, to managecertain of these exposures.Important disclosure information regarding the subject companies covered in this report is available at www.macquarie.com/disclosures.

Analyst Certification: The views expressed in this research reflect the personal views of the analyst(s) about the subject securities or issuers and no

part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations or views in thisresearch. The analyst principally responsible for the preparation of this research receives compensation based on overall revenues of Macquarie GroupLtd (ABN 94 122 169 279, AFSL No. 318062) (MGL) and its related entities (the Macquarie Group) and has taken reasonable care to achieve andmaintain independence and objectivity in making any recommendations.

General Disclosure: This research has been issued by Macquarie Securities (Australia) Limited (ABN 58 002 832 126, AFSL No. 238947) a Participantof the Australian Securities Exchange (ASX) and Chi-X Australia Pty Limited. This research is distributed in Australia by Macquarie Equities Limited(ABN 41 002 574 923, AFSL No. 237504) ("MEL"), a Participant of the ASX, and in New Zealand by Macquarie Equities New Zealand Limited (MENZ)an NZX Firm. Macquarie Private Wealths services in New Zealand are provided by MENZ. Macquarie Bank Limited (ABN 46 008 583 542, AFS L No.237502) (MBL) is a company incorporated in Australia and authorised under the Banking Act 1959 (Australia) to conduct banking business in Australia.None of MBL, MGL or MENZ is registered as a bank in New Zealand by the Reserve Bank of New Zealand under the Reserve Bank of New Zealand Act1989.Any MGL subsidiary noted in this research, apart from MBL, is not an authorised deposit-taking institution for the purposes of the Banking Act1959 (Australia) and that subsidiarys obligations do not represent deposits or other liabilities of MBL. MBL does not guaran tee or otherwise provideassurance in respect of the obligations of that subsidiary, unless noted otherwise.

This research is general advice and does not take account of your objectives, financial situation or needs. Before acting on this general advice, you

should consider the appropriateness of the advice having regard to your situation. We recommend you obtain financial, legal and taxation advice beforemaking any financial investment decision. This research has been prepared for the use of the clients of the Macquarie Group and must not be copied,either in whole or in part, or distributed to any other person. If you are not the intended recipient, you must not use or disclose this research in any way.If you received it in error, please tell us immediately by return e-mail and delete the document. We do not guarantee the integrity of any e-mails orattached files and are not responsible for any changes made to them by any other person. Nothing in this research shall be construed as a solicitation tobuy or sell any security or product, or to engage in or refrain from engaging in any transaction. This research is based on information obtained fromsources believed to be reliable, but the Macquarie Group does not make any representation or warranty that it is accurate, complete or up to date. Weaccept no obligation to correct or update the information or opinions in i t. Opinions expressed are subject to change without notice. The MacquarieGroup accepts no liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this research and/or furthercommunication in relation to this research. The Macquarie Group produces a variety of research products, recommendations contained in one type ofresearch product may differ from recommendations contained in other types of research. The Macquarie Group has established and implemented aconflicts policy at group level, which may be revised and updated from time to time, pursuant to regulatory requirements; which sets out how we mustseek to identify and manage all material conflicts of interest. The Macquarie Group, its officers and employees may have conflicting roles in the financialproducts referred to in this research and, as such, may effect transactions which are not consistent with the recommendations (if any) in this research.The Macquarie Group may receive fees, brokerage or commissions for acting in those capacities and the reader should assume that this is the case.The Macquarie Groups employees or officers may provide oral or written opinions to i ts clients which are contrary to the opinions expressed in thisresearch.

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