Slide 1: Copies of Slides for Webcast (ASX cover letter)
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 2012 The Manager - Listings Australian Securities Exchange Limited Exchange Centre
Slide 2: For personal use only
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Slide 3: First-Half Results Presentation
For personal use only First-Half Results Presentation 16 February 2012 Agenda Business Update & Results Highlights Tom Gorman, CEO Results Analysis & Outlook Greg Hayes, CFO Strategy Implementation Tom Gorman, CEO 2
Slide 4: Business Update & Results Highlights: Key discussion points
For personal use only Business Update & Results Highlights Tom Gorman, CEO Business Update & Results Highlights Key discussion points Business update • Organisation restructure completed successfully • Delivering on growth and efficiency programs • FY12 Group Underlying profit guidance tightened: US
Slide 5: Strategy scorecard
For personal use only Business Update Business Update & Results Highlights Strategy scorecard KEY INITIATIVE PROGRESS Business expansion in RPCs, Containers and emerging markets Delivering sales growth targets communicated at FY11 results 9 US$550M1 growth capex program over FY12 and FY13 US$160M of
Slide 6: Recall update
Business Update & Results Highlights Recall update For personal use only • Robust operating performance – Strong first-half result delivered – Annualised first-half net new business US$45M – On track for FY12 guidance • Divestment process – Strong bidder interest – Shortlist in place – Outcome expec
Slide 7: Key financial outcomes
Business Update & Results Highlights Key financial outcomes For personal use only Continuing operations Sales revenue US$2,366M 34% Operating profit US$372M 21% Underlying profit US$385M 23% Basic EPS 14.2 US¢ 14% Sales revenue up 9% and Underlying profit up 8% on a pro forma basis1 Dividends per sh
Slide 8: Pallets – Americas: turnaround continues
Business Update & Results Highlights Pallets – Americas: turnaround continues For personal use only • Integration of IFCO Pallet Management Services • Paramount Pallet acquisition in Canada • Sales revenue up 28% to US$984M (pro forma1 up 6%) • Growth in all CHEP regions, especially strong in Latin
Slide 9: Measures to address EMEA cost
Business Update & Results Highlights Measures to address EMEA cost For personal use only 1H12 CHALLENGE & IMPACT ACTIONS High general inflation, fuel US$14M • Increased plant and and lumber costs logistics efficiencies identified • Improved pricing to start to Development costs/sales mix US$4M flow
Slide 10: RPCs: delivering strong growth
Business Update & Results Highlights RPCs: delivering strong growth For personal use only • IFCO performing well; integration of CHEP Europe business • Pro forma1 sales revenue up 18% to US$387M • Growth in all regions from business expansion • Increased penetration, new customers, new products • Ke
Slide 11: Recall: strong first-half performance
Business Update & Results Highlights Recall: strong first-half performance For personal use only • Sales revenue up 9% to US$418M • Robust volume increase in Document Management Solutions • Carton volumes now in excess of 100 million • Strong new business wins in Americas and Europe • Operating prof
Slide 12: First-half 2012 result
Results Analysis & Outlook First-half 2012: summary profit reconciliation For personal use only (US$M) 18 67 13 453 471 372 385 Operating Significiant Underlying Discontinued Group FX adustment Group profit from items from profit operations ex. Underlying Underlying Continuing Continuing Significant
Slide 13: Sales revenue growth and Pallets results summary
Results Analysis & Outlook Sales revenue growth: continuing operations For personal use only (US$M)1 56 2,329 67 26 2,180 Pro 417 forma2 1,763 1H11 Price/mix Organic growth Net new wins 1H12 1 Constant FX basis 2 Pro forma figures assume Brambles had owned businesses acquired since 1 July 2010 for a
Slide 14: Pallets Americas and EMEA operating profit reconciliation
Results Analysis & Outlook Pallets Americas: operating profit reconciliation For personal use only (US$M)1 24 (20) (7) 32 (3) 155 129 Pro 6 forma2 123 1H11 Vol, Better Direct Other Significant 1H12 price, Everyday costs items mix 1 Constant FX basis 2 Pro forma profit reflects the EBIT reported by P
Slide 15: Pallets Asia-Pacific reconciliation; RPCs results summary
Results Analysis & Outlook Pallets Asia-Pacific: operating profit reconciliation For personal use only (US$M)1 (2) 7 (3) 33 31 1H11 Vol, Direct Other 1H12 price, costs mix 1 Constant FX basis 25 Results Analysis & Outlook RPCs: results summary Actual FX Constant FX 1H11 pro (US$M) 1H12 1H12 1H11 Cha
Slide 16: RPCs operating profit reconciliation; Containers results
Results Analysis & Outlook RPCs: operating profit reconciliation For personal use only (US$M)1 10 (5) (2) (5) 49 47 Pro 36 forma2 13 1H11 Vol, Direct Other Significant 1H12 price, costs items mix 1 Constant FX basis 2 Pro forma profit reflects the EBIT reported by IFCO RPCs in 1H11 adjusted for amor
Slide 17: Containers and Recall results
Results Analysis & Outlook Containers: operating profit reconciliation For personal use only (US$M)1 5 (2) (3) 16 16 1H11 Vol, Direct Expansion 1H12 price, costs investment mix 1 Constant FX basis 29 Results Analysis & Outlook Recall: results summary Actual FX Constant FX (US$M) 1H12 1H12 1H11 Chang
Slide 18: Recall: operating profit reconciliation
Results Analysis & Outlook Recall: operating profit reconciliation For personal use only (US$M)1 13 (5) (3) 1 (19) 59 49 1H11 Vol, Direct Other Significant 1H12 price, costs items mix 1 Constant FX basis 31 Cash Flow & Financing
Slide 19: Reconciliation: EBITDA to cash flow
Results Analysis & Outlook Reconciliation: EBITDA to cash flow For personal use only (US$M) Actual FX 1H12 1H11 Change EBITDA 636.1 511.5 124.6 Capital expenditure (478.1) (305.5) (172.6) Proceeds from disposals 36.2 39.2 (3.0) Working capital movement (75.7) (6.2) (69.5) IPEP expense 55.2 52.7 2.5
Slide 20: Financial metrics
Results Analysis & Outlook Financial metrics For personal use only (Actual FX) December 11 June 11 Net debt (US$M) 3,173.9 2,998.8 Gearing1 (%) 57.6% 55.0% (Actual FX) 1H12 1H11 Covenants EBITDA2/net finance costs (x) 8.8 10.4 3.5 (min) Net debt/EBITDA2 (x) 2.2 1.4 3.5 (max) • Undrawn committed cred
Slide 21: Guidance for FY12
Results Analysis & Outlook Guidance for FY12 For personal use only • Subject to unforeseen circumstances and economic uncertainty • Sales revenue growth in constant FX from all segments • Group Underlying profit1 guidance confirmed within tighter range: US$1,050M to US$1,080M – 30 June 2011 FX2 – As
Slide 22: Strategy scorecard
Strategy implementation Strategy scorecard For personal use only KEY INITIATIVE PROGRESS Business expansion in RPCs, Containers and emerging markets Delivering sales growth targets communicated at FY11 results 9 US$550M1 growth capex program over FY12 and FY13 US$160M of capex in 1H12 reflects growt
Slide 23: Scorecard: synergies, sales expansion and growth capex
Strategy implementation Scorecard: sales revenue expansion For personal use only GROWTH AREA AUG 11 TARGET1 1H12 RESULT1 Pallets - emerging markets At least 15% in each of FY12, FY13 9 Up 20% to US$225M About 15% (pro RPCs forma) in each of FY12, FY13 9 Up 15% to US$387M Containers - new markets (US
Slide 24: Summary: Key discussion points
For personal use only Summary Summary Key discussion points Business update • Organisation restructure completed successfully • Delivering on growth and efficiency programs • FY12 Group Underlying profit guidance tightened: US$1,050 million to US$1,080 million1 • Recall divestment process outcome ex
Slide 25: Disclaimer
For personal use only First-Half Results Presentation 16 February 2012 Disclaimer The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distrib
Slide 26: Investor Relations contacts
Investor Relations contacts For personal use only Cathy Press Group Vice President, Capital Markets cathy.press@brambles.com +61 2 9256 5241 +61 419 290 745 James Hall Senior Director, Investor Relations & Corporate Affairs james.hall@brambles.com +61 2 9256 5262 +61 401 524 645 47 Appendices
Slide 27: Appendix 1: Glossary of terms and measures
Appendices Appendix 1: Glossary of terms and measures For personal use only Except where noted, common terms and measures used in this document are based upon the following definitions: Actual rates In the statutory financial statements, Brambles translates foreign currency results into US dollars a
Slide 28: Appendix 2-3: Currency mix and effective tax rate
Appendices Appendix 2: Currency mix – Continuing operations For personal use only 1H12 currency mix at actual FX (US$M) Total USD EUR GBP AUD Other Sales revenue 2,365.5 838.8 643.6 202.4 203.2 477.5 Operating profit 371.7 103.0 102.2 46.2 20.1 100.2 Net debt1 3,173.9 1,753.5 1,328.6 43.1 101.5 (52.
Slide 29: Appendix 4-5: Significant items; Discontinued operations
Appendices Appendix 4: Significant items – Continuing operations For personal use only (US$M) Actual FX 1H12 1H11 Underlying profit 385.1 313.7 Significant items: Acquisition-related costs (1.4) (6.9) Restructuring & IFCO integration costs (7.9) - Pension costs (5.8) - Foreign exchange gain on capit
Slide 30: Appendix 6-7: Credit facilities, debt profile and capex
Appendices For personal use only Appendix 6: Credit facilities and debt profile (US$B) at 31 December 2011 Committed Uncommitted Maturity Type Debt drawn Headroom facilities facilities < 12 months Bank/Other - 0.2 0.1 0.1 1 – 2 years Bank/Other 0.6 - 0.2 0.4 2 – 3 years Bank/USPP¹/Other 1.0 - 0.8 0.
Slide 31: Appendix 8-9: Sales revenue by segment and business unit
Appendices Appendix 8: Pooling Solutions 1H12 sales revenue by segment For personal use only (US$M) Growth vs. 1H11 135 Pallets – Americas1 6% 387 Pallets – EMEA 3% Pallets - Asia-Pacific 7% Americas, 984 Asia-Pacific, 187 RPCs1 15% Containers 26% EMEA, 673 1 Pro forma assumes Brambles owned busines
Slide 32: Appendix 10-11: PMS impact; CHEP USA pallet rejections
Appendices Appendix 10: Analysis of PMS 1H12 impact on Pallets - Americas For personal use only Pallets -Americas Pallets - (US$M) Actual FX PMS (excluding PMS) Americas Sales 811.1 172.7 983.8 Underlying profit 149.8 8.5 158.3 Underlying profit margin 18% 5% 16% Average capital invested 1,759.7 326
Slide 33: Appendix 12: CHEP USA plant and productivity trends
Appendices Appendix 12a: CHEP USA pallet plant operations and transportation For personal use only trends Plant cost ratio Transportation cost ratio (Plant costs/sales) (Transportation costs/sales) 45% 32% 40% 28% 35% 24% 30% 20% 25% 20% 16% FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 1
Slide 34: Appendix 13: CHEP Europe plant and productivity trends
Appendices Appendix 13a: CHEP Europe pallet plant operations and transportation For personal use only trends Plant cost ratio Transportation cost ratio (Plant costs/sales) (Transportation costs/sales) 32% 30% 30% 28% 28% 26% 26% 24% 24% 22% 22% 20% 20% FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09
Slide 35: Appendix 14-15: RPCs and Containers sales by region
Appendices Appendix 14: RPCs 1H12 sales revenue by region For personal use only (US$M) 52 Pro forma growth1 vs 1H11 13 Europe 16% North America 18% 70 South America 19% 252 ANZ & South Africa 8% 1 Pro forma assumes Brambles owned businesses acquired since 1 July 2010 for all of the prior correspondi