Brambles Limited · ASX:BXB
Brambles — UBS Australasia Conference 2015
17 slides from Brambles's conference presentation, Nov 17, 2015
Slide 1: UBS Australasia Conference
UBS Australasia Conference 17 November 2015 Tom Gorman CEO
Slide 2: Investor value proposition
Investor value proposition …which drives superior rates of economic return (i.e. high quality of opportunity)… Objectives Annual percentage sales revenue Our customer value growth in the high single digits proposition enables a (constant FX) strong and sustainable competitive advantage… Consistent i
Slide 3: Context for our objectives
Context for our objectives We are committed to sustainable value creation 1 The 20% objective is realistic over time and demonstrates our commitment to disciplined capital allocation 2 We are not going to prioritize a short-term financial outcome in any given year if it is not in the interest of lon
Slide 4: Network advantage – an example
Pallets – Global Network advantage – an example CHEP Europe case study Service centers “TPM” facilities Manufacturers Retailers Manufacturers’ flows Collections 4
Slide 5: Addressable opportunity: Pallets
Addressable opportunity: Pallets Considerable unserved opportunity exists in all markets US$4.1B US$1.3B US$4.8B US$0.3B US$1.1B Notes: Addressable opportunity reflects Brambles’ estimate of addressable FMCG standard-size opportunity in currently served countries only. 38% 33% The opportunity refl
Slide 6: More investment to drive value
More investment to drive value Organic growth capex opportunity to FY19 of US$1.5B Approximate organic growth capex expectations by year (US$M) 600 500 400 300 200 100 0 FY15 FY16F FY17F FY18F FY19F Pallets RPCs Containers Group 6
Slide 7: Use of capital to support value creation
Use of capital to support value creation A summary of our historic use of capital Use of capital FY11-FY15 average FY16 trend Replacement pooling ~US$560M - Average five-year ROCI, ex goodwill, has capex been 22% - Incremental upside from asset utilization, operating margin improvements Organic grow
Slide 8: Key contributors: improving ROCI
Key contributors: improving ROCI Multiple factors will drive higher returns Other efficiencies Upside to operating Some examples: performance One Better program US$1.5 billion organic Amortisation of Some examples: identified intangibles growth capex to FY19 CHEP North America Asset utilisat
Slide 9: Five-year “quantity” and “quality” trend
Five-year “quantity” and “quality” trend Average Capital Invested vs. Return on Capital Invested (continuing operations) 7,000 25% 6,000 20% 5,000 US$M 15% 4,000 3,000 10% 2,000 5% 1,000 0 0% FY11 FY12 FY13 FY14 FY15 Average Capital Invested (LHS) Return on Capital Invested (RHS) ROCI excluding inta
Slide 10: 1Q16 trading update
1Q16 trading update Constant-currency sales revenue growth of 8% Segment Sales revenue Growth vs. 1Q15 Growth vs. 1Q15 (US$M) (actual FX) (constant FX) Pallets – Americas 583.1 2% 7% Pallets – Europe, Middle East & Africa 326.6 (8)% 6% Pallets – Asia-Pacific 74.1 (16)% 5% Total Pallets 983.8 (3)% 6%
Slide 11: FY16 guidance summary
FY16 guidance summary As stated at FY15 results in August Sales revenue and Underlying Profit growth expected in range of 6% to 8% at constant FX rates Translates to Underlying Profit of US$1,000-1,020M at 30 June 2015 FX rates ROCI to be down slightly, reflecting short-term impact of increased inve
Slide 12: UBS Australasia Conference
UBS Australasia Conference 17 November 2015 Tom Gorman CEO
Slide 13: Glossary of terms and measures
Glossary of terms and measures Except where noted, common terms and measures used in this document are based upon the following definitions: Actual currency/FX Results translated into US dollars at the applicable actual monthly exchange rates ruling in each period. Average Capital Invested Average C
Slide 14: Glossary of terms and measures
Glossary of terms and measures Except where noted, common terms and measures used in this document are based upon the following definitions: DIN The sum in a period of: - Depreciation expense; - Irrecoverable Pooling Equipment Provision expense; and - Net book value of compensated assets and scraps
Slide 15: Glossary of terms and measures
Glossary of terms and measures Except where noted, common terms and measures used in this document are based upon the following definitions: Net new business The sales revenue impact in the reporting period from business won or lost in that period and over the previous financial year, included acros
Slide 16: Investor Relations contacts
Investor Relations contacts James Hall Vice President, Investor Relations & Corporate Affairs james.hall@brambles.com +61 2 9256 5262 +61 401 524 645 Raluca Chiriacescu Manager, Investor Relations raluca.chiriacescu@brambles.com +61 2 9256 5211 +61 427 791 189 16
Slide 17: 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