Brambles Limited · ASX:BXB
Brambles — Investor Day (September 2024)
156 slides from Brambles's investor day presentation, Sep 12, 2024
Slide 1: 2024 Investor Day
2024 Investor Day 12 September 2024 San Antonio, Texas
Slide 2: Safety briefing
Safety briefing Evacuation route from stairs 2024 INVESTOR DAY 2
Slide 3: Agenda
Agenda Thursday – 12 September 2024 8.30am-9.00am Introduction & Strategy Graham Chipchase 9.00am-9.30am Financials Joaquin Gil 9:30am-10.00am Q&A on strategy & financials Graham Chipchase & Joaquin Gil 10.00am -10.30am Morning break 10.30am-11.30am Digital Transformation + Q&A Helen Lane Matt Quinn
Slide 4: Financial numbers and format
Financial numbers and format Unless otherwise stated: • All currency amounts are in US dollars • All dollar amounts are at actual foreign exchange (FX) rates, unless otherwise stated • Year-on-year percentage growth rates are in constant currency, as defined in the Glossary (see Appendix 1) • All fo
Slide 5: 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 6: Introduction and strategy
Introduction and strategy Graham Chipchase Chief Executive Officer
Slide 7: Our purpose
Our purpose Brambles’ purpose is to connect people As at 30 June 2024, Brambles: with life’s essentials, every day • Our assets, data and solutions form the backbone of the global Operated in Owned Employed Our sustainable supply chain ~60 ~350m ~13,000 • The world’s biggest Countries pallets, crate
Slide 8: Shaping Our Future transformation
Shaping Our Future transformation In 2021, we set out to optimise the existing business and build the ‘Brambles of the Future’ Our approach Transformation priorities • Organisation-wide programme 1 Transform the customer experience with a multi-year plan based on concrete, quantified initiatives 2 P
Slide 9: Today, we are a more resilient and agile market leader
Today, we are a more resilient and agile market leader positioned for future value creation Ambitious plans Improved business for ‘Brambles of fundamentals the Future’ Foundation set Compelling for next phase investor value of growth proposition 2024 INVESTOR DAY 9
Slide 10: Improved business fundamentals
Improved business fundamentals Establishing the foundations of a digitally enabled the ‘Brambles of the Future’ Improved cost- Analytics, Machine Strengthened Commenced Developing and to-serve clarity tracking and learning and workforce commercialising deploying new and pricing diagnostics automated
Slide 11: Improved business fundamentals
Improved business fundamentals A more customer-centric, commercially sophisticated business Delivering for customers Improved pricing and sales targeting • Embedded customer performance metrics • Better cost-to-serve accuracy across the organisation to enhance customer experience and competitiveness
Slide 12: Improved business fundamentals
Improved business fundamentals Efficiency through operational excellence and robust asset control Resilient and sustainable Strengthened asset control network and platforms • Improved asset recovery capabilities • Significant improvement in safety through expansion of loss recovery fleet and strateg
Slide 13: Creating value for all stakeholders
Improved business fundamentals Creating value for all stakeholders Customers DIFOT up by Complaint resolution Employees time down ‘Global Top Highest +6pts 40% Employer’ ever staff Certification engagement NPS up by Customer All time low Brambles 37.5% collaborations Injury Frequency Rate to reduce
Slide 14: Creating value for all stakeholders
Improved business fundamentals Creating value for all stakeholders Communities and Enabled the sustainable Shareholders Sales revenue CAGR Underlying Profit CAGR Certified timber the environment sources growth of 100% ~4.3m trees In FY24 +10% +15% Reduction in Recycled content by Customers saved Fre
Slide 15: Our vision for the 'Brambles of the Future'
Our vision for the ‘Brambles of the Future’ Connecting and illuminating the world’s supply networks to make them more resilient and regenerative Enhancing environment, Seamless, flexible, reliable service communities, and economies that supports partnerships with by creating regenerative customers s
Slide 16: Our future state: An effortless customer experience
Our future state: An effortless customer experience Seamless, flexible and reliable service that supports partnerships with customers What it means: Outcomes Providing an effortless customer experience, enabled by Industry leading technology, processes and capabilities, supporting mutual partnership
Slide 17: Our future state: Illuminated supply networks
Our future state: Illuminated supply networks Illuminating supply networks with data to bring innovative insights and solutions What it means: Outcomes Creating networks of data and developing insights and solutions New business lines that illuminate supply networks to reduce waste, improve the flow
Slide 18: Our future state: Operational excellence
Our future state: Operational excellence A lean, efficient circular pooling model that minimises waste and cost-to-serve What it means: Outcomes Market-leading operational and asset efficiency underpinning Customer value our competitive advantage and driving sustainable growth advantage Enhanced qua
Slide 19: Our future state: Regenerative supply networks
Our future state: Regenerative supply networks Enhancing environment, communities, and economies by creating a regenerative supply network What it means: Outcomes Going beyond zero impact, pioneering regenerative supply A circular supply chains to reverse ecological degradation and enhance nature an
Slide 20: Set up for sustainable growth
Set up for Significant ‘whitespace’ in key growth markets sustainable growth USA France Germany Poland Refreshed approach to market share Whitespace opportunity Whitespace opportunity Whitespace opportunity Whitespace opportunity • Leadership position in pooling ~60% ~40% ~70% ~55% in all regions Ma
Slide 21: How we grow
How we grow Converting new business in key markets Effortless Reduce Retailer Quality and Additional Expand customer cost-to-serve advocacy availability value with existing experience customers Flawless basics: Improved retailer Collaborating Continued Digital insights Using our lower delivery and r
Slide 22: Investor value proposition
Investor value proposition Sales revenue growth Underlying Profit growth ROCI broadly Free Cash Flow and • Sustainable dividends in the mid single-digits in the high single-digits in line with strong balance sheet target to payout 50-70% of with a balance between through operational FY24 supporting
Slide 23: 2024 Investor Day
2024 Investor Day 12 September 2024 San Antonio, Texas
Slide 24: Financial overview
Financial overview Joaquin Gil Chief Financial Officer
Slide 25: Overview of financial performance since the 2021 Investor Day
Overview of financial performance since the 2021 Investor Day
Slide 26: Brambles has delivered on its investor value proposition
Brambles has delivered on its investor value proposition Outperformed mid single-digit Outperformed high single-digit Delivered on positive Free Cash Flow revenue growth component Underlying Profit growth component after funding growth and transformation investments (Revenue CAGR %) (Underlying Prof
Slide 27: Revenue growth
Revenue growth FY22 to FY24 revenue growth driven by price realisation to recover cost-to-serve Price/mix and volume contribution to Key components of FY22 to FY24 sales revenue CAGR: revenue growth CAGR 10% Price/mix1 +10% • Price realisation delivered through improved commercial terms 1% to recove
Slide 28: Supply chain investments improved customer service, safety and operating leverage
Supply chain investments improved customer service, safety and contributed to operating leverage Supply chain capital investments ~US$400m invested (FY22-FY24) Examples of key projects: Financial and non-financial benefits FY22 to FY24 • In FY24, ~65% of inspections and repairs were done through aut
Slide 29: Investments in digital are a key enabler of improved business fundamentals
Investments in digital are a key enabler of improved business fundamentals and creates the platform for future growth Digital opex investment Digital capital investment ~US$200m invested (FY22-FY24) ~US$40m invested (FY22-FY24) Key initiatives: Advanced analytics • Providing advanced analytics tool
Slide 30: Asset efficiency initiatives delivered margin expansion and improved capital intensity
Asset efficiency initiatives delivered margin expansion and structural improvements to capital intensity, driving Free Cash Flow generation IPEP normalisation in FY24 following successive years Pooling capex to sales ratio reflects structural of increases, including impact of supply chain disruption
Slide 31: Asset efficiency initiatives driving material reduction in pallet losses
Asset efficiency initiatives driving material reduction in pallet losses Enhanced physical and digitally-enabled asset efficiency model recovered and salvaged ~16 million pallets in FY24 Asset recovery Go-to Market Pallet remanufacturing ~8m pallets recovered in FY24 ~7m pallets recovered in FY24 ~1
Slide 32: Medium-term outlook and key drivers of future performance
Medium-term outlook and key drivers of future performance
Slide 33: Reaffirming Brambles' investor value proposition
Reaffirming Brambles’ investor value proposition Key drivers of future financial performance: Sales revenue growth in the mid single-digits with a balance between price realisation and volume growth with new and existing customers Underlying Profit growth in the high single-digits through operationa
Slide 34: Revenue growth
Revenue growth Growth expected to include balanced contribution from volume and price Price/mix and volume contribution to growth CAGR Key drivers of mid single-digit sales growth: 10% Pricing/mix Mid single-digit • Price realisation to recover cost-to-serve 1% growth • More dynamic pricing enabled
Slide 35: Underlying Profit margin expansion through operational and asset efficiencies
Underlying Profit margin expansion through operational and asset efficiencies Supply chain productivity Asset efficiencies Overhead productivity Incl. Shaping Our Future Corporate costs • Continued investment in automation and • Reduce uncompensated losses as a % of • Rate of growth of overhead inve
Slide 36: Network productivity key driver of operational efficiencies
Network productivity key driver of operational efficiencies Enabled by investments in supply chain initiatives Improvements in net plant and transport costs to deliver ~1pt+ of margin expansion by the end of FY28 driven by: Net plant1 and transport costs / sales revenue Plant automation • Investment
Slide 37: Asset efficiency initiatives expected to continue reducing pallet losses
Asset efficiency initiatives expected to continue to deliver a material reduction in pallet losses by the end of FY28 Continue to rollout and expand existing initiatives Implement new initiatives Asset recovery Go-to Market • Continue the deployment and optimisation of loss recovery fleet • Implemen
Slide 38: Expected reduction in capital intensity to underpin future Free Cash Flow
Expected reduction in capital intensity to underpin future Free Cash Flow generation Targeting to reduce uncompensated pallet losses1 Targeting a pooling capital expenditure to sales ratio by ~40 to 50pts by end of FY28 compared to the FY21 baseline of ~15% to 17% for FY28 100% Includes benefit from
Slide 39: Non-pooling capital expenditure
Non-pooling capital expenditure Increased investment to support transformation and value creation Non-pooling capital expenditure FY25-FY28 non-pooling capital expenditure (excluding Serialisation+) focused on supply chain initiatives: (US$m Actual FX) Supply chain Investment between FY25-FY28 are •
Slide 40: Asset digitisation to play increasing role in creating value
Asset digitisation to play increasing role in creating value for customers and Brambles Mix and speed of implementation to reflect evolving technology and financial discipline Smart assets Serialisation+ Delivering value Key cost considerations Potential benefits Financial discipline • Continued sca
Slide 41: FY25 outlook
FY25 outlook Delivering on the investor value proposition Outlook 4-6% 8-11% US$750m- 50-70% US$500m US$850m of Underlying Profit1 Sales revenue Underlying Profit Free Cash Flow Dividend payout On-market share growth growth before dividends ratio buy-back Mid single-digit High single-digit Free Cash
Slide 42: FY26 to FY28 outlook
FY26 to FY28 outlook Delivering on the investor value proposition Outlook Other considerations Mid Capital management single-digit Sales revenue with a balance between price growth • Dividends 50-70% payout ratio realisation and volume growth with new and of Underlying Profit2 existing customers • 1
Slide 43: Strong financial position with structural improvements supporting outlook
Strong financial position with structural improvements supporting outlook Foundation set for next Ambitious plans for Confident in delivering Disciplined approach horizon of growth ‘Brambles of the Future’ compelling investor to capital allocation delivering financial value proposition returns 2024
Slide 44: 2024 Investor Day
2024 Investor Day 12 September 2024 San Antonio, Texas
Slide 45: Digital Transformation
Digital Transformation Helen Lane, Chief Digital and Group Strategy Officer Matt Quinn, Digital Business Building Transformation Lead
Slide 46: What we will cover today
What we will cover today We are creating new visibility of the flow of pallets through supply chains to enable a reduction in pallet losses, a reduction in uncompensated reuse and an improvement in the customer experience. Investments into Digital have been a significant factor in Brambles’ performa
Slide 47: How is Digital enabling the 'Brambles of the Future'?
How is Digital enabling the ‘Brambles of the Future’? Using data and insights to power smarter, more sustainable supply chains Infrastructure and technology to digitise supply chains that generate data at scale Embedding data analytics into ‘business as usual’ Combining supply chain expertise and ne
Slide 48: Supply chain leaders today ... and into the future
Supply chain leaders today … and into the future 2024 INVESTOR DAY 48
Slide 49: 60+ years of supply chain expertise supercharged with technology
60+ years of supply chain expertise supercharged with technology ... Digital investments are driving long-term competitive advantage Analytics and ~3 million data science digitised pallets tools that mature our global In ~60 countries with mix of technology, advanced analytics capability we are usin
Slide 50: ... is transforming how we operate our business
... is transforming how we operate our business 1 Customer value1 2 Productivity1 A key enabler to the recovery of ~16m pallets through Supported a +20pt increase in NPS from FY23 asset productivity initiatives in FY24 Advanced analytics tools being rolled out through AI to improve effectiveness of
Slide 51: Via a multi-layered deployment strategy
Via a multi-layered deployment strategy We have developed the infrastructure by adopting a portfolio of technologies to generate data that power our analytical engine Inject a sample of smart Instrument entire pool pallets with autonomous Targeted Serialisation with unique identifiers to Diagnostics
Slide 52: Examples of data analytics capabilities as business as usual
A selection of examples of how data analytics capabilities are Targeted Diagnostics Serialisation ‘business as usual’, enabling improvements in asset productivity Serialisation+ and customer experience1 Continuous Hub and Diagnostics Spoke Advanced Analytics AI and predictive analytics used to enabl
Slide 53: Case Study: Targeted Diagnostics
Case Study 1 Targeted Diagnostics has helped to enable the Targeted Diagnostics Serialisation recovery of ~4.4m pallets and ~US$60m annual price Serialisation+ recovery, since FY211 Continuous Diagnostics Hub and Spoke • A Targeted Diagnostics into Problem definition Data collection Data analysis Ac
Slide 54: Case Study: Continuous Diagnostics
Case Study 2 Continuous Diagnostics has helped to enable the Targeted Diagnostics Serialisation recovery of ~5m pallets and enhance commercial terms, Serialisation+ since FY231 Continuous Diagnostics Hub and Spoke • CHEP USA has instrumented Network mapping Data analysis Action Model change ~0.2% of
Slide 55: Our market leading position, enhanced by Serialisation+
Our market leading position, Targeted Diagnostics Serialisation enhanced by Serialisation+ Serialisation+ Moving from data sampling to end-to-end visibility Continuous Hub and Diagnostics Spoke of every pallet enabling transformational outcomes Effortless customer experience: Precise data from every
Slide 56: Serialisation+ investments to date have yielded substantial learnings
Serialisation+ investments to date have yielded substantial learnings Targeted Diagnostics Serialisation to solve for operational and technology challenges Serialisation+ Continuous Hub and Diagnostics Spoke FY21 – FY24 Lab-based validation Field testing Pilot market proof of concept Operational • O
Slide 57: In Chile we have digitised an entire market
In Chile we have digitised an entire market and Targeted Diagnostics Serialisation captured data that is unlocking new opportunities Serialisation+ Continuous Hub and Diagnostics Spoke Automatic tagging robot attaching QR Codes in Birmingham UK, validating operational feasibility proven in Chile All
Slide 58: Additional learnings planned for FY25
Additional learnings planned for FY25 will inform investment Targeted Diagnostics Serialisation and expected returns for FY26 and beyond Serialisation+ Continuous Hub and Diagnostics Spoke FY25 Operationalising the pilot market Testing requirements for the next markets Operational • Automation testi
Slide 59: Incremental investments in Serialisation+ linked to 6-monthly stage gates
Incremental investments in Serialisation+ are linked to Targeted Diagnostics Serialisation performance vs. milestones with 6-monthly stage gates in FY25 Serialisation+ Continuous Hub and Diagnostics Spoke Performance against stage gates Stage gates Target success criteria determines the next step Un
Slide 60: Future deployment plans build on methodology and learnings
Future deployment plans build on the methodology and learnings to date Targeted Diagnostics Serialisation – test small, share learnings and scale rapidly if stage gates are met Serialisation+ Continuous Hub and Diagnostics Spoke FY21-24 Planned for FY25 and beyond PoC Targeted Scaled to 33 markets D
Slide 61: Digital Transformation has achieved positive results
Digital Transformation has achieved positive results for our business, and there’s more on the horizon … 2024 INVESTOR DAY 61
Slide 62: Digital Customer Solutions
Digital Customer Solutions Matt Quinn Digital Business Building Transformation Lead
Slide 63: A global ~US$2 trillion of waste and CO2 reduction opportunity
A global ~US$2 trillion1 of waste and ~6 billion2 tons of CO2 reduction opportunity There is an opportunity to create a leading market position by helping reduce waste and optimise global supply chains Why Brambles? Waste Throughout End-To-End Supply Chains World-leading supply chain visibility and
Slide 64: Three key insights from our customers and partners
Three key insights from our customers and partners Significant value leakage across Data is key to improved visibility There is strong demand from global supply chains impacting of the end-to-end supply chain our customers for the three customers’ revenue generation, and the insights enable Digital
Slide 65: Brambles 'right to win' across multiple value pools
Brambles ‘right to win’ across multiple value pools driven by our traditional strengths … Unparalleled scale and deep cross-sector relationships support our potential ambitions to succeed in this space Problem Solution Addressable market (US$)1 Proof of 100m delivery Reusable asset 1b optimisation E
Slide 66: Digital capabilities that illuminate global supply chains
... and underlined by digital capabilities that have a potential to illuminate global supply chains Our unique vantage allows insight generation about everything ... whenever, wherever and in whichever condition it moves on our digitised assets Data collection from smart Analysis and prioritisation
Slide 67: Our supply chain illumination platform
Our supply chain illumination platform is already enabling customers to solve multiple supply chain challenges 2024 INVESTOR DAY 67
Slide 68: Validation of product-market fit with customers and partners
We have successful validation of the product-market fit with multiple customers and partners Voice of the customer: Voice of the customer: We achieved double digit sales growth in the early What excites me is the ability to fundamentally change part of our sales window, and we got to the point how t
Slide 69: Establishing a network that facilitates insight sharing
Establishing a network that facilitates insight sharing across end-to-end supply chains and within their constituent parts Potential to bring together disparate and disconnected segments of data that enables real-time visibility and decision making Building a data and insight network Point solutions
Slide 70: Where are we now?
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Slide 71: Ambitious plans to scale
Ambitious plans to scale We have our first set of paying customers and a pathway to scale the opportunity to >US$100m Revenue goals US$1m US$5-10m Make Focus it real to scale >US$100m FY23 FY24 FY25 2024 INVESTOR DAY 71
Slide 72: Close
Close Investments in digital We are scaling We can extract more technology and advanced Continuous Diagnostics in value from our data analytics capability have Europe and operational over coming years, been a significant factor testing of Serialisation in through Serialisation+ and in Brambles’ fina
Slide 73: 2024 Investor Day
2024 Investor Day 12 September 2024 San Antonio, Texas
Slide 74: Network productivity
Network productivity Enrique Montañes Garcia Chief Operations Officer
Slide 75: About Brambles
About Brambles In FY24, Brambles: Employed Points of delivery Number of pallets, Number of and collection crates and containers service centres processed ~13,000 ~150,0001 ~1 billion 750+ people across ~60 countries 1 Delivery and collection points only. Not representative of all points across the n
Slide 76: How we create value for customers and Brambles
How we create value for customers and Brambles Alignment with Brambles’ vision to make networks more resilient and regenerative • Defined roadmap to net-zero • High quality platforms that meet national carbon emissions and international standards • Supporting customers to reduce • Unparalleled netwo
Slide 77: How we create value for customers and Brambles
How we create value for customers and Brambles Past Present Future 1 • Pioneering circular economy • Unparalleled coverage to meet • Secure and sustainable access to business model disrupting global manufacturer and retailer key input materials, decoupled Scale and traditional one-way model demands
Slide 78: How we create competitive advantage
How we create competitive advantage 1 2 3 Scale and Platform Process network advantage innovation automation 2024 INVESTOR DAY 78
Slide 79: The value of our network and scale
The value of our network and scale FY24 1 Scale and network advantage Delivery and collection points DIFOT North America Europe North America Europe Customer value proposition • Unparalleled coverage within regions and ~30,000 ~80,000 +4pts1 +4pts1 across the globe makes us the pooling provider of c
Slide 80: The value of our network and scale
The value of our network and scale Using advanced network mapping software to optimise network structure for: 1 Scale and network advantage • Certainty of customer fulfilment • Asset efficiency • Capacity for demand growth • Carbon footprint (e.g. achieved a 2% reduction in average delivery distance
Slide 81: The value of our network and scale
The value of our network and scale • Strategic timber sourcing: Timber strategy ensures a reliable, long-term supply of 1 Scale and network advantage sustainable timber – at a discount to market pricing – positioning us for a consistent market advantage • Technologically advanced sawmills in the US:
Slide 82: How we create competitive advantage
How we create competitive advantage 1 2 3 Scale and Platform Process network advantage innovation automation 2024 INVESTOR DAY 82
Slide 83: Platform innovation framework
Platform innovation framework Creating products that perform optimally in our customers’ supply chains, that maximise durability and positively contribute to sustainability 2 Platform innovation Standards Design Materials Innovation • Ensuring the ongoing • Subtle changes to • New materials • We mai
Slide 84: Platform innovation
Platform innovation Durability improves quality and customer experience US & EU damage rate improvement Damage rate economics (FY17 baseline) • 100bps of damage rate reduction is equivalent to a ~US$12m Underlying Profit benefit • Target to reduce pallet damage rate by ~300-400bps by FY28 vs FY24 ba
Slide 85: Platform innovation
Platform innovation Past / ongoing innovations Clinch nails in repair Strength plates on bottom deck Species optimisation Butted lead boards 2024 INVESTOR DAY 85
Slide 86: Platform innovation
Platform innovation Improving the durability of our platforms Initiative: Optimised repair technique Initiative: Double walled blocks Implementation: Introduced in the US in 2020, and adopted Implementation: Introduced in South Africa in 2024 with early by Canada, EU and LATAM in 2022. Completed imp
Slide 87: Platform innovation
Platform innovation Supply chain enabling the rollout of digital enabled platforms Autonomous tracking devices Auto-tagging QR code equipment installation in Birmingham, UK • New processes for the installation, detection and repair of autonomous tracking devices Serialisation+ • Development and inst
Slide 88: How we create competitive advantage
How we create competitive advantage 1 2 3 Scale and Platform Process network advantage innovation automation 2024 INVESTOR DAY 88
Slide 89: Automation drives value across every aspect of the business
Automation drives value across every aspect of the business It drives safety, by Technology innovation It supports consistency It improves Efficient manufacturing moving us closer to is a magnet for talent and quality: customer productivity, and reduces waste, “no manual repairs” experience becomes
Slide 90: Automation investment FY22 to FY24
Automation investment Rollout of automated repair process by end of FY25 FY22 to FY24 120 100 70 80 Number of plants Network Productivity 47 60 17 40 • Total automation investment: 36 20 0 30 ~US$270m 7 22 0 • Reduction in automated repair installations FY21 baseline FY22 FY23 FY24 FY25 vs 70 planne
Slide 91: Automation technology
Brambles’ automation journey 5.9 5.5 5.0 Outcomes Frequency Rate (BIFR) 4.1 3.8 • Investments in 2.9 automation continues Brambles Injury to improve BIFR and our progress towards Brambles’ Zero Harm Charter FY19 FY20 FY21 FY22 FY23 FY24 Phase 1: Integrated layout Phase 2: Automated repair Automation
Slide 92: Automation journey phase 1: Integrated layout
Automation journey phase 1: Integrated layout Separated lines “Integrated Sort, Repair, Paint” lines (ISRP) Benefits • On average, 30%+ total incident reduction within 12 months after installation • Reduce need for 3-5 forklift drivers per shift • Uplift in pallet throughput of 30-40% Future investm
Slide 93: Automation journey phase 2: Automated repair
Automation journey phase 2: Automated repair “Integrum” repair cell (ADI + Klippa + Auto-nailer) Automated digital inspection Klippa Auto-nailer Benefits • Up to 1,400 repairs per day • Improved safety • Increased efficiency and flexibility • Improved pallet quality, consistency and durability Autom
Slide 94: Automation journey phase 2: Automated repair
Automation journey phase 2: Automated repair “Integrum” repair cell (ADI + Klippa + Auto-nailer) Integrum process 2024 INVESTOR DAY 94
Slide 95: Automation journey phase 3: Touchless plant
Automation journey phase 3: Touchless plant Our design principles 1. Zero human contact 2. Modular and 3. Global Early challenges with platforms scalable design applicability • 100% automated end- • Hardware that can be • Path to equipment • Touchless end-to-end management to-end process from adapte
Slide 96: Interview with a plant manager
Interview with a plant manager 2024 INVESTOR DAY 96
Slide 97: Supply chain enhancements support strategic objectives
Supply chain enhancements supports the strategic objectives of Brambles Supply chain investments Continued rollout of New platform Continuous continue to drive automation across the innovations improve optimisation of the efficiencies for the network drives safety durability and quality of network b
Slide 98: Sustainability
Sustainability Dr Juan José Freijo Chief Sustainability and Product Innovation Officer
Slide 99: Sustainability is a key component of Brambles' vision
Sustainability is a key component of Brambles’ vision • Cutting-edge sustainability Sustainability customer ambition and programme value proposition: based on regeneration • ESG risk mitigation • World-class credentials • Circular benefits • Strong focus on business value • Collaboration programmes
Slide 100: Brambles is a recognised global leader in sustainability
Brambles is a recognised global leader in sustainability #1 2nd AAA A- 4th Global Top Employer in its DJSI industry most sustainable top 10% of in its Forests and accreditation and in over 5,000 category company out of companies assessed in Climate Change top employer in companies analysed ~6,700 co
Slide 101: Our ambition / Our programme
Our ambition Our programme
Slide 102: Our sustainability vision
Our To pioneer sustainability a global vision… regenerative supply chain 2024 INVESTOR DAY 102
Slide 103: Regeneration is being adopted by market leaders
Regeneration is being adopted by market leaders Global evolution from net-zero to net positive; Predominantly focused on nature and agriculture 2024 INVESTOR DAY 103
Slide 104: Our progress
Our progress
Slide 105: Progress towards our 2025 targets
Progress towards our 2025 targets 8 already 10 progressing 3 focus areas achieved as planned • 100% renewable electricity • 100% certified timber • Waste to landfill • Carbon neutral operations • Chain-of-custody • Customer in collaboration • Science-based • 2x1 – Extra trees Targets set • Upcycled
Slide 106: Deep dive Forest Positive
Deep dive Forest Positive y fy =] — g a
Slide 107: Our Forest Positive programme is leading the way globally
Our Forest Positive programme is leading the way globally 1 2 3 Maintain 100% YoY increase in Regenerative certified sources Chain-of-Custody forestry Achieved and maintained Uninterrupted progress Enabled sustainable since 2020 since FY15 growth of 5.61m second trees since FY22 2024 INVESTOR DAY 10
Slide 108: Regenerative transformation
Regenerative transformation 2024 INVESTOR DAY 108
Slide 109: Deep dive Climate Positive
Deep dive Climate Positive Marisa Sánchez Urrea Global Head of Decarbonisation
Slide 110: Science-Based near- and long-term Targets
Brambles has adopted Science-Based near- and long-term Targets1 Subcontracted transport, new assets and repairing materials represent >80% of Brambles’ emissions Scope 1 Scope 2 Scope 3 CHEP site fuel CHEP site electricity Waste at CHEP and Outsourced service New assets and Subcontracted and fleet f
Slide 111: A solid and flexible plan to achieve 2030 and 2040 targets
We have a solid and flexible plan to achieve our 2030 and 2040 targets External dependencies influence the speed at which each lever is deployed Key dependencies Decarbonisation levers out to 2040 (Scopes reduced) Policy Technology Infrastructure Operational roadmap Forklift truck electrification (1
Slide 112: Decarbonisation performance exceeds Science-based Target requirements
Decarbonisation performance exceeds our Science-based Target requirements Main focus areas are the decoupling of capex purchases and subcontracted transport Scope 1 & 2 Global emissions (tCO2-e) Scope 3 Global emissions (tCO2-e) 45,000 1,550,000 1,500,000 40,000 -17% -7% 1,450,000 35,000 1,400,000 3
Slide 113: Business value creation
Business value creation
Slide 114: Sustainability creates tangible value in all aspects of our business
Sustainability creates tangible value in all aspects of our business Commercial Asset productivity Finance/Treasury Digital Government affairs Talent Procurement Supply Chain Diversity, Equity and Inclusion 2024 INVESTOR DAY 114
Slide 115: Our sustainability value proposition addresses customers' needs
Our sustainability value proposition addresses our customers’ needs 1 2 3 Sustainability excellence Circular economy benefits Partnership to scale-up World-class credentials Positive impact in customer targets Collaboration and innovation • Top ratings in sustainability targets • Less natural resour
Slide 116: More than 3,000 sustainability certificates delivered in FY24
EUROPE EUROPE EUROPE LATAM Panidor Newlat Food S.p.A Coca-Cola Europacific Nestlé 21,549 followers 19,937 followers Partners 15,552,623 followers 604,192 followers The pallet reuse model allows for We’re proud to unveil our 2023 Did you know that in 2023 we have We continue to move towards a more su
Slide 117: The circularity index unlocks collaboration opportunities
The circularity index unlocks collaboration opportunities The circularity index goes beyond the current pallet, opening tangible collaboration opportunities with customers to advance to ideal circularity by: Savings Savings • Reducing damage CO2 emissions (CO2e) • Decrease losses • Shorten cycle tim
Slide 118: Sustainability customer interview: Refresco
Brambles 264 Ses Sustainability ant ; ay. > Ww Minna Lyijynen > ; Head of Group Sustainability SS Refresco . ‘s Y » aN es - Brambles \* AN . ah Vary % wit \. WS 2024 INVESTOR DAY 118
Slide 119: Sustainability is a clear differentiator vs. competition
Sustainability is a clear differentiator vs. competition Competitors chasing CHEP credibility with unsubstantiated claims and minor recognitions US US Whitewood Competitor 1 Competitor 2 Pooling services model – investing in more durable, reusable assets Recycling Bold Aspiration – ‘Regenerati
Slide 120: The future of the programme
The future of the programme
Slide 121: New trends shaping the future of corporate sustainability
New trends are shaping the future of corporate sustainability Nature, Climate and Exploring digital Supply chain Reporting and biodiversity and Scope 3 sustainability integration transparency regeneration Source: Leading business sustainability trends in 2024 that are shaping the future. Institute o
Slide 122: Our future 2030 programme
Our future 2030 programme Guiding principles to maintain global leadership • Advance in regeneration • Inclusion of nature/biodiversity • Sustainability in digital and product innovation • Leverage our leadership position Boost customer collaboration programmes 2024 INVESTOR DAY 122
Slide 123: 2024 Investor Day
2024 Investor Day 12 September 2024 San Antonio, Texas
Slide 124: Bringing transformation to life through North America
Bringing transformation to life through North America David Cuenca Chief Executive Officer, North America
Slide 125: CHEP North America overview
CHEP North America overview Structurally better business with a clear path to deliver growth and create incremental value for customers and Brambles • Significant whitespace for volume conversion ~US$3.0b ~47% • Enhanced commercial capabilities and value proposition will enable profitable volume con
Slide 126: FY21-FY24: Transformed the business through market volatility
FY21-FY24: Transformed the business through extraordinary market volatility Customer Commercial Network Asset • Embedded customer • Improved sales capabilities, • Invested in high-return • Improved asset protection centricity as a core value including commercial supply chain projects activities to i
Slide 127: Transformed the North America business through extraordinary market volatility
Transformed the North America business through extraordinary market volatility Customer Network +36pts ~80% +4pts ~65% 6pts dynamic load DIFOT production via reduction NPS improvement1 tracking2 improvement1 automated lines2 in BIFR3 Asset Sustainability 19% 9pts ~16,000 95% 100% tonnes total reduct
Slide 128: Transitioning to a new market environment
Transitioning to a new market environment Labour Data and Consumer Retail and Sustainability Competition technology manufacturing Wage growth Proliferation Cost of living Demand for Wider awareness Whitewood and labour of artificial increases greater upstream among consumers, inventories and availab
Slide 129: North America will continue to be a key contributor
North America will continue to be a key contributor to Brambles’ investor value proposition FY25-FY28 Outlook Mid single-digit High single-digit Strong revenue growth Underlying Profit growth cash flow generation • Increased contribution from • Supply chain excellence and • Asset productivity struct
Slide 130: CHEP North America strategic focus areas
CHEP North America strategic focus areas 1 2 3 4 Customer centricity Network and growth Innovation Asset efficiency productivity Our fundamentals People Digital Transformation Sustainability Solution design INVESTOR DAY 2024 130
Slide 131: Customer centricity and growth
Customer centricity and growth Drew Merrill Senior Vice President, Sales, Marketing, & Customer Experience, CHEP USA
Slide 132: Voice of the customer driving innovation
Voice of the customer driving innovation for a seamless customer experience Account • Automated alerts FY24 vs. FY23 Health Metric Point changes • Proactive account health reviews • Anomaly detection tool for customer data management Delivered in full, on time +4 Order • POAS - Proactive orders as a
Slide 133: Significant whitespace to drive profitable volume growth
Significant whitespace to drive profitable volume growth • Near-term whitespace accessible with existing products and sales efforts • Medium-term accessible with moderate intervention and potential USchannel addressable expansion market US whitespace addressability •% of pallet issues Long-term (940
Slide 134: Accelerating the most attractive categories
Accelerating the most attractive categories with the strongest right to win Growth prioritisation framework • Prioritisation framework criteria: Fresh Produce – Category attractiveness: Fresh Foods Non-Alc Bev relative pooling potential Paper – Right to win: relative share position Category attracti
Slide 135: Leveraging our customer value proposition to drive whitewood conversion
Leveraging our customer value proposition to drive whitewood conversion Size and scale of the network Consistently delivers high quality pallets Lowest total cost of ownership Helps achieve sustainability goals Delivers value-added solutions 2024 INVESTOR DAY 135
Slide 136: Hear from TreeHouse Foods
Hear from TreeHouse Foods how our customer value proposition makes us their supply chain partner of choice Jim O’Rourke Chief Procurement Officer & Senior Vice President, TreeHouse Foods INVESTOR DAY 2024 136
Slide 137: Innovation
Innovation Vishal Patell Senior Vice President, Strategy & Transformation, Americas
Slide 138: Collaborating to deliver differentiated customer value
Collaborating to deliver differentiated customer value Customer solutions FY22-FY24 achievements Transport collaboration Eliminated ~12 million empty miles Managed recovery Reduced CO2 emissions by 16,000+ tonnes Hosted 120 customer engagements at Unit load testing CHEP’s certified testing centre Ze
Slide 139: Innovation in action: Digital Customer Solution Case Study
Innovation in action: Digital Customer Solution Case Study • Green Garden, a seed supplier with promotional stands Creating value for the customer at thousands of retailer locations could not accurately • Faster activation delivered a double-digit year-on-year verify the arrival of their goods at th
Slide 140: Becoming a better, data-driven organisation
Becoming a better, data-driven organisation Leveraging data tools and analytics to optimise business performance and enhance customer insights and value creation Customer value Productivity Customer experience Digital Customer Solutions Cost-to-serve clarity Asset efficiency and recovery and recover
Slide 141: Asset efficiency
Asset efficiency Vishal Patell Senior Vice President, Strategy & Transformation, Americas
Slide 142: Initiatives driving asset efficiency improvements
Initiatives driving asset efficiency improvements Initiatives (FY21-FY24) Outcomes (since FY21) Actioning leakage reduction via Continuous ~6m pallet losses prevented and Targeted Diagnostics Engaging with NPDs1 to increase collection points, enable growth and provide differentiation ~2.9m more pall
Slide 143: How Continuous and Targeted Diagnostics illuminate leakage
How Continuous and Targeted Diagnostics help illuminate leakage and improve asset efficiency 1 Leverage smart assets to distinguish types Examples: • Identified and stopped of flows and derive 800,000 unauthorised potential leads exchanges between a single supplier and retailer, resulting 2 Insights
Slide 144: Retail Value Framework
Retail Value Framework: Expansion of retail partnerships to drive asset efficiency and growth Customer value Outcomes Collaboration and joint business planning • 42% of target volume addressed, with 58% to be addressed by continuing to rollout the Retailer Value Framework Pallet quality • Collaborat
Slide 145: How a digital control model will unlock greater asset efficiency
How a digital control model will unlock greater asset efficiency Enables the North America business to deliver further reduction in uncompensated losses1 beyond the targeted 30% compared to the FY21 baseline by FY28 Digital twin AI-enabled digital Fully digitised account (digitised pallet control to
Slide 146: Network productivity
Network productivity Tyler Vassar Senior Vice President, Supply Chain CHEP North America
Slide 147: Invested US$310m over four years to create a more resilient supply chain
Invested US$310m over the last four years to create a more resilient supply chain Safety Quality and durability Customer fulfilment Operational excellence Protect our People Quality products that meet Customer centric fulfilment Drive efficiency throughout customer requirements the supply chain • Pe
Slide 148: FY25 and beyond
FY25 and beyond Innovating solutions to improve safety, quality and customer experience Safety Advancing safety technology Reducing the risk for all injuries Quality and durability Development of Advanced solutions that fully address next generation automation both the top and bottom decks by FY28 C
Slide 149: Bringing transformation to life through North America
Bringing transformation to life through North America David Cuenca Chief Executive Officer, North America
Slide 150: CHEP North America key takeaways
CHEP North America key takeaways • Safety and customer-centric culture is in our DNA • Ample whitespace for growth with the right Customer strategy and capabilities to deliver centricity and growth Innovation • Disciplined asset efficiency and supply chain excellence to enhance competitiveness • Str
Slide 151: 2024 Investor Day
2024 Investor Day 12 September 2024 San Antonio, Texas
Slide 152: Appendix
Appendix
Slide 153: Glossary
Glossary Except where noted, common terms and measures used in this document are based upon the following definitions: Actual currency/Actual FX Current period results (excluding hyperinflationary economies) translated into US dollars at the applicable actual monthly exchange rates ruling in each pe
Slide 154: Glossary
Glossary Except where noted, common terms and measures used in this document are based upon the following definitions: CRM Customer Relationship Management EBITDA Underlying Profit from continuing operations after adding back depreciation, amortisation and IPEP expense EPS Profit after finance costs
Slide 155: Glossary
Glossary Except where noted, common terms and measures used in this document are based upon the following definitions: ML Machine Learning MSCI Morgan Stanley Capital International, is an investment research firm that provides stock indexes, portfolio risk and performance analytics, and governance t
Slide 156: Investor and media contacts
Investor and media contacts Investors Media Raluca Chiriacescu Sandra Tang Vice President, Investor Relations Group External Communications Lead +44 7810 658044 +61 404 066 107 raluca.chiriacescu@brambles.com sandra.tang@brambles.com Suk Hee Lee Director, Investor Relations +61 433 343 888 sukhee.le