Slide 1: Cover letter: Copies of slides for analysts' briefing, Sydney
Brambles Limited ABN 89 118 896 021 Level 40 Gateway 1 Macquarie Place Sydney NSW 2000 Australia GPO Box 4173 Sydney NSW 2001 Tel +61 2 9256 5222 Fax +61 2 9256 5299 www.brambles.com For personal use only 16 February 2009 The Manager - Listings Australian Securities Exchange Limited Exchange Centre
Slide 2: 2009 Interim Results
For personal use only 2009 Interim Results 16 February 2009 2009 Interim Results Mike Ihlein Chief Executive Officer
Slide 3: 1H09 Overview
Delivering revenue growth despite challenging conditions Sales revenue up 4% despite challenging conditions Underlying profit in line with prior year For personal use only and margins of 23% Winning new business – sales pipeline strong Solid operating cash flow continues Demonstrates stren
Slide 4: New business delivering revenue growth
New business delivering revenue growth Revenue growth in all regions of CHEP and Recall • CHEP Americas +4% • CHEP EMEA +3% For personal use only • CHEP Asia-Pacific +1% • Recall +4% New business being won in all markets Price/mix offsetting declines in core volume in USA/Europe Success in k
Slide 5: Major initiatives to underpin future performance
Major initiatives to underpin future performance Accelerated scrapping of 7 million excess pallets in USA • Excess due to rapid and deep economic downturn For personal use only • US$99 million charge (before tax) in 1H09 (non-cash US$37 million) • Assumes lumber recovery for future repairs • Avoid
Slide 6: Rationalisation of facilities and operations across the Group
Major initiatives to underpin future performance Rationalisation of facilities and operations across the Group For personal use only • Personnel reduction of 750 (approx) over next 12 months • One-off cost of US$60 - 70 million (before tax) – mainly FY09 • Annualised savings US$40 - 50 million I
Slide 7: Underlying and Statutory operating profit
2009 Interim Results For personal use only Liz Doherty Chief Financial Officer Underlying and Statutory operating profit $USm Actual rates AIFRS 1H09 1H08 Underlying profit 469.3 497.3 Items outside the ordinary course of business: Foreign exchange gain on capital repatriation 29.9 - Restructuring c
Slide 8: Group results and sales revenue
2009 Interim Results Actual Constant 1H09 1H09 1H08 Growth For personal use only AIFRS US$m US$m US$m % Continuing operations Sales revenue 2,073.2 2,185.8 2,110.2 4 Underlying profit 469.3 496.2 497.3 0 PBT 405.6 428.0 426.4 0 PAT 270.5 285.4 293.8 (3) EPS (cents) 19.5 20.6 20.7 0 Cash flow from op
Slide 9: Underlying profit by segment
Underlying profit Actual Constant 1H09 1H09 1H08 Growth For personal use only AIFRS US$m US$m US$m % CHEP Americas 233.3 240.0 227.7 5 CHEP EMEA 170.9 183.4 189.8 (3) CHEP Asia-Pacific 28.9 34.1 45.6 (25) CHEP 433.1 457.5 463.1 (1) Recall 50.5 53.8 52.2 3 Unallocated Brambles HQ costs (14.3) (15.1)
Slide 10: CHEP EMEA and Asia-Pacific underlying profit
CHEP EMEA – Underlying profit US$m 23 12 For personal use only 9 190 9 183 1H08 Vol, Price & Mix Transport Costs Plant costs Other 1H09 All numbers are calculated at constant currency 17 CHEP Asia-Pacific – Underlying profit US$m 46 0 2 5 5 34 1H08 Vol, Price & Mix Transport Costs Plant costs Other
Slide 11: Recall
Recall Actual Constant 1H09 1H09 1H08 Growth AIFRS For personal use only US$m US$m US$m % Americas 161.2 164.6 162.3 1 Europe 96.8 101.8 93.3 9* RoW 95.1 105.9 102.1 4 Sales revenue 353.1 372.3 357.7 4 Underlying profit 50.5 53.8 52.2 3 Profit margin (%) 14 14 15 * Recall Europe 1H09 sales revenue i
Slide 12: Solid cash flow
Solid cash flow AIFRS $USm Actual rates 1H09 1H08 Change Underlying profit 469.3 497.3 (28.0) Significant items within ordinary activities (54.7) - (54.7) For personal use only Depreciation and amortisation 212.8 222.6 (9.8) EBITDA 627.4 719.9 (92.5) Capital expenditure (400.1) (451.8) 51.7 Proceeds
Slide 13: Capital expenditure by business
Capital expenditure by business US$m Actual rates 1H08 $433m 1H09 $377m For personal use only 5% 10% 6% 17% 37% 41% 48% 36% CHEP Americas CHEP EMEA CHEP Asia-Pacific Recall 23 Effective tax rate Actual Actual 1H09 1H08 AIFRS US$m US$m Underlying PBT 405.6 426.4 Tax 135.1 132.6 Underlying eff
Slide 14: Financial ratios
Financial ratios AIFRS, Actual rates Dec 08 Jun 08 Closing Net Debt (US$m) 2,357.0 2,426.2 For personal use only Gearing (%) 65.3 61.1 (Net Debt/Net Debt & Equity) AIFRS, Actual rates 1H09 1H08 Covenants EBITDA* / Net finance costs (x) 9.8 10.2 x 3.5 (min) Net Debt / EBITDA* (x) 1.9 1.5 x 3.5 (max)
Slide 15: Outlook
2009 Interim Results For personal use only Mike Ihlein Chief Executive Officer Outlook Grew revenues despite challenging environment Sharp deterioration in trading conditions since AGM Volatile environment to remain for some time Difficult to provide outlook guidance with confidence New bu
Slide 16: Disclaimer statement
Disclaimer statement 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 restrict
Slide 17: Contact details and glossary of terms
Contact details Michael Roberts Vice President Investor Relations and Corporate Affairs For personal use only michael.roberts@brambles.com +61 (2) 9256 5216 +61 (0) 418 263 199 (mobile) 31 Appendix 1a Glossary of terms & measures Except where noted, common terms and measures used in this document ar
Slide 18: Glossary of terms & measures (continued)
Appendix 1b Glossary of terms & measures (continued) Except where noted, common terms and measures used in this document are based upon the following definitions: Free Cash Flow Cash flow generated after net capital expenditure, finance costs and tax, but excluding the net cost of acquisitions and p
Slide 19: CHEP USA and Europe asset productivity trends
Appendix 2b CHEP USA - Asset productivity trends Control ratio New equipment issue ratio (Returns + Recoveries / Total Issues) (Pallets purchased / Total issues) For personal use only 100% 12% 10% 98% 8% 96% 6% 4% 94% 2% 92% 0% 02 03 04 05 06 07 08 02 03 04 05 06 07 08 09 09 FY FY FY FY FY FY FY FY
Slide 20: CHEP Europe asset productivity and currency mix
Appendix 2d CHEP Europe - Asset productivity trends Control ratio New equipment issue ratio (Returns + Recoveries / Total Issues) (Pallets purchased / Total issues) For personal use only 98% 12% 10% 96% 8% 94% 6% 4% 92% 2% 90% 0% 02 03 04 05 06 07 08 02 03 04 05 06 07 08 09 09 FY FY FY FY FY FY FY 1
Slide 21: Credit facilities and debt profile
Appendix 2f Credit facilities and debt profile US$ billion Committed Maturity Type Debt drawn Headroom Facilities For personal use only < 12 months - - - - 1 – 2 years Bank 1.5 1.1 0.4 2 – 3 years Bank/USPP1 0.3 0.2 0.1 3 – 4 years Bank 0.4 0.3 0.1 4 – 5 years Bank 0.9 0.6 0.3 > 5 years USPP1 0.2 0.