Slide 1: Formation of Oil & Gas Containers Joint Venture
Formation of Oil & Gas Containers Joint Venture 5 August 2016
Slide 2: Transaction rationale
Transaction rationale Ferguson Group and CHEP Catalyst & Chemical Containers (CCC) combined with Hoover Container Solutions to form HFG HFG to be independent 50:50 joint venture between Brambles and Hoover shareholders (mainly First Reserve and Hoover management) Creates the second-largest global pr
Slide 3: Key benefits to Brambles
Key benefits to Brambles 1 Creates the #2 global player without additional capital outlay Substantial synergy opportunities – Accretive to underlying 2 EPS as synergies realised 3 Optionality over scale/capital allocation/future ownership 4 Creates independent self-funding platform for growth 3
Slide 4: Overview of HFG
Overview of HFG Strong footprint in key global regions: North America, North Sea, Latin America, Middle East, Australia, South-East Asia 78 dedicated facilities, more than 110,000 high-quality rental units and approximately 500 employees Pro forma sales revenue US$217M and EBITDA US$86M (CY15) Eight
Slide 5: Creation of a global business with scale
Creation of a global business with scale HFG combined, complementary footprint Fleet size1 Locations1 Ferguson 20,000 27 CCC 25,000 35 Hoover 67,000 16 1 Estimated as of Dec-15. Total 112,000 78 5
Slide 6: Disciplined capital allocation focus
Disciplined capital allocation focus Managing the portfolio for maximisation of value Asia-Pacific Auto Legend AIME CHEP Europe IFCO Return on Capital Invested Containers North America Latin America Europe IBCs South America LeanLogistics Oil & Gas Aerospace North America Average Capital Invested gr
Slide 7: Financing overview
Financing overview Brambles to own 50% equity in HFG, with 50% owned by Hoover shareholders Relative ownership of HFG calculated at broadly equal EBITDA multiples for Hoover and Brambles’ Oil & Gas businesses Brambles to receive additional consideration of ~US$75M1 (US$40M cash upfront and the balan
Slide 8: Brambles accounting impacts
Brambles accounting impacts FY16 results from Oil & Gas (i.e. Ferguson and CCC) accounted for in Continuing Operations Transaction costs of ~US$7M recognised as Significant Items over the FY16 and FY17 periods Post completion, Brambles will equity account 50% share in HFG going forward: Income state
Slide 9: Oil & Gas asset impairment
Oil & Gas asset impairment US$38M impairment charge to be recognised against the value of Brambles’ Oil & Gas assets as at 30 June 2016 Impairment reflects current market conditions in the Oil & Gas sector Non-cash in nature, to be accounted for as a Significant Item in FY16 FY16 guidance remains un
Slide 10: Key points recap
Key points recap 1 Creates the #2 global player without additional capital outlay Substantial synergy opportunities – Accretive to underlying 2 EPS as synergies realised 3 Disciplined capital allocation 4 Optionality over future ownership 10
Slide 11: Formation of Oil & Gas Joint Venture
Formation of Oil & Gas Joint Venture 5 August 2016
Slide 12: Appendices
Appendices Brambles
Slide 13: Appendix i: Statutory income statement impact
Appendix i Statutory income statement impact Sales Revenue Remove contributions from Oil & Gas business Operating Expense Share of results of JVs Recognise 50% share of HFG post-tax profit and Associates Operating Profit Recognise interest revenue on $150M shareholder loan and Net Finance Costs defe
Slide 14: Appendix ii: Pro forma December 2015 balance sheet
Appendix ii Brambles unaudited pro forma December 2015 balance sheet (US$M, actual FX rates) Brambles Deconsolidate Equity accounting of Brambles actual Ferguson and CCC HFG / financing impacts pro forma1 Cash and cash equivalents 238 (7) - 231 Other current assets 1,203 (28) - 1,175 Non-current rec
Slide 15: Appendix ii: HFG unaudited pro-forma CY15 financials
Appendix ii HFG unaudited pro-forma CY15 financials Indicative revenue contribution US$M CY15 Revenue 217 Rental (72%) Brambles Oil & Gas 112 Sales (16%) Hoover 105 Service/Other (12%) EBITDA 86 North America (49%) North Sea (25%) Asia Pacific (14%) Other Europe (4%) Mid. East / N. Africa (3%) South
Slide 16: Disclaimer
Disclaimer The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions. This
Slide 17: Investor Relations contacts
Investor Relations contacts Raluca Chiriacescu Manager, Investor Relations raluca.chiriacescu@brambles.com +61 2 9256 5211 +61 427 791 189 17