AMCR

• Shifting consumer preferences toward reduced packaging waste and away from petrochemicals could make parts of the portfolio obsolete or reduce demand.
• Customer consolidation increases pricing pressure, and the loss of a key customer or a reduction in their production could significantly harm sales and profitability.
• Raw material and energy price volatility, exacerbated by the Middle East conflict, may not be fully offset by pricing actions, pressuring margins.
• Failure to realize the expected $650 million in annual pre-tax cost synergies from the Berry merger could prevent the anticipated benefits of the acquisition.
• A strategic review identified ~$2.5 billion in non-core businesses for potential restructuring or sale, which may cause disruption and may not create shareholder value.
• The company faces heightened cybersecurity threats, including AI-enabled attacks, which could disrupt operations or compromise sensitive data despite existing safeguards.

We consider our plants and other physical properties, whether owned or leased, to be suitable, adequate, and of sufficient productive capacity to meet the requirements of our business. Our manufacturing plants operate at varying levels of utilization depending on the type of operation and market conditions. The breakdown of our manufacturing and support facilities at June 30, 2026, was as follows: Global Flexible Packaging Solutions Segment This segment has approximately 190 manufacturing and support facilities located in 33 countries, of which approximately 75% are owned directly by us and approximately 25% are leased from outside parties. Initial building lease terms typically provide for minimum terms in a range of two to 30 years and have one or more renewal options. Global Rigid Packaging Solutions Segment This segment has approximately 210 manufacturing and support facilities located in 33 countries, of which approximately 60% are owned directly by us and approximately 40% are leased from outside parties. Initial building lease terms typically provide for minimum terms in a range of two to 15 years and have one or more renewal options. Corporate and General Our primary executive office is located in Zurich, Switzerland. Beginning in 2027, we expect to initiate the migration and consolidation of select corporate functions to a new U.S. headquarters in Miami, Florida, aligning resources more closely with our operating footprint. We will continue to maintain corporate offices in other regions.

Refer to Note 20, "Contingencies and Legal Proceedings," of the notes to consolidated financial statements for information about legal proceedings.

• Net sales increased 57% to $23.5 billion, primarily from the Berry merger ($7.9B), favorable currency ($649M), and raw material pass-through ($240M), partially offset by a 2% organic decline.
• Net income attributable to Amcor rose 116% to $1.1 billion, driven by higher gross profit from the merger and synergies, partially offset by increased SG&A, amortization, and interest expenses.
• Gross profit margin improved to 20.0% from 18.9%, reflecting merger synergies and cost discipline; SG&A expenses rose 60% to $1.9 billion, mainly due to the merger.
• The Global Flexible Packaging segment saw a 27% sales increase and 28% Adjusted EBIT growth, while the Global Rigid Packaging segment sales more than doubled with a 170% Adjusted EBIT increase.
• Net cash from operations rose to $2.15 billion; net debt stood at $12.9 billion, and the company had $2.46 billion in undrawn credit facilities as of June 30, 2026.
• The company is targeting $530 million in pre-tax synergies from the Berry integration by June 2028 and is reviewing strategic alternatives for businesses with $2.5 billion in combined sales.

• A 1% increase in floating interest rates would adversely impact income by approximately $20 million for fiscal 2026.
• A 1% rise in key raw material prices, without customer pass-through, would increase cost of sales and reduce income by roughly $85 million.
• 51% of net sales are effectively generated in U.S. dollar functional currency entities, with the remainder exposed to foreign exchange translation risk.
• Argentina's economic volatility poses a specific risk, with a hypothetical 10% peso devaluation causing a $6 million adverse impact on monetary assets.
• The company uses derivatives like foreign exchange contracts and interest rate swaps to manage risk, but some instruments may not qualify for hedge accounting, increasing income statement volatility.
• Credit risk from financial counterparties is managed through a policy of transacting only with high-credit-quality approved institutions.

• PricewaterhouseCoopers AG opined that the financial statements fairly present Amcor's financial position and results for the years ended June 30, 2026, 2025, and 2024, in conformity with U.S. GAAP.
• The auditor also opined that Amcor maintained effective internal control over financial reporting as of June 30, 2026, based on COSO criteria.
• The critical audit matter involved the goodwill impairment assessment for the Global Rigid Packaging Solutions reporting unit, which held $6,056 million of the total $12,075 million goodwill balance.
• Auditor judgment focused on management's key assumptions in the discounted cash flow model, specifically the discount rate, market multiple, and revenue growth projections.
• The audit procedures included testing controls over the valuation and using professionals with specialized skills to evaluate the discounted cash flow model and the reasonableness of key assumptions.