Slide 1: Copies of slides for webcast
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 20 February 2017 The Manager - Listings Australian Securities Exchange Limited Exchange Centre
Slide 2: Half-Year 2017 Results: Overview & Results Highlights
For personal use only Half-Year 2017 Results 20 February 2017 Overview & Results Highlights Tom Gorman
Slide 3: Key messages and summary of 1H17 result
Key messages For personal use only Sales revenue growth of 5% at constant currency, reflecting growth in every operating segment despite some challenges Underlying Profit growth of 3% at constant currency reflecting: Strong profit growth in RPCs and Containers Lower margin in Pallet Europe reflectin
Slide 4: 1H17 growth trends by segment
1H17 growth trends by segment For personal use only Change in constant FX Sales revenue Underlying Profit ROCI1 Pallets Americas 3% (8)% (3.4)pp 44% of Group sales revenue Pallets EMEA 4% 1% (2.5)pp 25% of Group sales revenue Pallets Asia-Pacific 1% 3% 0.4pp 6% of Group sales revenue RPCs 12% 31% 1.
Slide 5: Foundations remain strong
Foundations remain strong For personal use only Overall business is in good shape Investments to support future growth are in place Innovation: BXB Digital New market entry Investment in first and last-mile solutions Strong team in place to support new leadership 7 Financial Analysis Nessa O’Sulliva
Slide 6: 1H17 sales growth and group profit analysis
1H17 sales growth For personal use only Growth across all operating segments 1H17 Sales revenue growth 1H17 Sales revenue by segment1 $142m (US$m)1 (5% of total) 13 (10% growth) 60 $1,221m (42) $538m (44% of total) (20% of total) (3% growth) (12% growth) 29 2 36 2,787 $167m 2,745 (6% of total) (1% g
Slide 7: US Pooled and Pallets Americas result analysis
US Pooled For personal use only Lower-than-expected first-half sales and increased network costs Competitive pressures impacting US Pooled sales Key drivers of growth particularly evident in second quarter US Pooled 1H margin decline 2H implications Ongoing competitive Constant-currency sales reve
Slide 8: Pallets EMEA and Asia-Pacific results analysis
Pallets EMEA: result analysis For personal use only 1H17 Change vs. 1H16 Strong European volume growth (US$m) Actual Constant in the UK and Central & Eastern FX FX Europe Western Europe 380 4% 4% UK & Ireland 156 (11)% 5% Margins impacted by: Specific price investment to support Cent & East Europe 6
Slide 9: RPCs and Containers results analysis
RPCs: results analysis For personal use only 1H17 Change vs. 1H16 RPCs account for >40% of 1H17 Actual Constant Group sales revenue growth (US$m) FX FX All regions contributed strongly to Europe 333 10% 13% sales growth North America 108 9% 9% Growth in Europe includes the rollover benefit of major
Slide 10: Profit reconciliation
Profit reconciliation For personal use only Continuing operations 1H17 1H16 1H17 significant items (US$m, actual FX) Statutory Underlying Statutory Underlying includes a US$120m non-cash impairment of Underlying profit 469 469 464 464 the investment in the Acquisitions related costs (1) (1) HGF jo
Slide 11: Cash flow reconciliation and balance sheet position
Cash flow reconciliation For personal use only (US$m) 1H17 1H16 Change EBITDA 736 717 19 Capital expenditure (557) (533) (24) Proceeds from sale of property, plant and equipment 50 47 3 Working capital movement (17) (14) (3) IPEP expense 45 40 4 Other (31) (7) (24) Cash Flow from Operations 225 251
Slide 12: Return on capital invested (ROCI)
Return on capital invested (ROCI) For personal use only Simplified & transparent updated ROCI metric Continuing operations Previous Updated Updated ROCI metric (US$m, actual FX rates) metric metric New methodology does not add Underlying Profit 469 469 back Significant Items to ACI Can be calculated
Slide 13: First impressions and management structure realignment
First impressions For personal use only Excellent business with a sustainable competitive advantage Met with key operational leaders in the USA, Europe and Australia High-performance culture with a clear focus on the customer Depth of knowledge and industry-leading expertise across the organisation
Slide 14: FY17 guidance and strategic focus
FY17 guidance For personal use only Change on previous FY17 Guidance guidance Sales revenue growth Constant-currency growth in line (constant FX) with 1H17 Underlying Profit Flat to FY16 (constant FX) Net interest costs Unchanged Circa. US$100m Effective tax rate on Underlying Unchanged 29.5% Profit
Slide 15: Financial focus
Financial focus For personal use only For a business like Brambles, ROCI1 at or around current levels is attractive and strikes the appropriate balance between financial returns and growth Previously articulated FY19 ROCI target has been withdrawn Group will no longer provide medium-term targets ROC
Slide 16: Sales revenue by region and sector
For personal use only Appendices Appendix 1 Sales revenue by region and sector 1H17 sales revenue by region 1H17 sales revenue by sector Africa, India & Eastern Packaging, Latin Europe Asia ex-Japan Auto, 2.8% Middle East 2.1% Other, America 2.7% 0.9% 3.7% 7.3% 5.5% General retail, 2.0% Japan Storag
Slide 17: Detailed reconciliation of Underlying to statutory earnings
Appendix 2 For personal use only Detailed reconciliation of Underlying to statutory earnings Operating Earnings Per Continuing operations Tax Profit after tax Profit Share (US$m, Actual FX) 1H17 1H16 1H17 1H16 1H17 1H16 1H17 1H16 Underlying Profit 468.9 464.0 (123.3) (115.6) 295.3 294.3 18.6 18.7
Slide 18: Currency mix and credit facilities and debt profile
Appendix 4 For personal use only 1H17 currency mix (US$m) Total USD EUR GBP AUD CAD ZAR MXN BRL CHF PLN Other1 Pallets 2,064 960 381 147 130 134 57 72 31 5 28 118 RPCs 539 107 254 35 43 1 11 - 6 29 1 52 Containers 142 19 61 29 20 1 5 - 1 - - 6 Sales revenue 2,745 1,086 696 211 193 136 73 72 38 34 29
Slide 19: Capital expenditure and pallet net transport cost
Appendix 6 For personal use only Capital expenditure on Property, Plant and Equipment (Accruals basis, US$m) 981 1,065 865 857 21 895 14 93 10 11 141 88 151 120 294 150 188 97 531 528 102 12 7 52 58 140 116 534 562 568 571 590 292 321 68 78 79 68 66 35 26 FY12 FY13 FY14 FY15 FY16 1H16 1H17 Other PP&
Slide 20: Pallets net plant costs and Americas profit analysis
Appendix 8 For personal use only Pallets: net plant costs/sales revenue 46% 42% 38% 34% 30% 26% 22% FY12 FY13 FY14 FY15 FY16 1H16 1H17 Americas EMEA Asia-Pacific Total 37 Appendix 9a Pallets Americas: Underlying profit analysis (US$m) (11) 30 (13) (15) (6) (3) 205 190 187 1H16 Volume, Depreciation N
Slide 21: Pallets EMEA and Asia-Pacific underlying profit analysis
Appendix 9b For personal use only Pallets EMEA: Underlying profit analysis (US$m) (7) 1 (4) 14 (3) (5) 176 177 172 1H16 Volume, Depreciation Net plant Net transport Other 1H17: FX 1H17: actual price, mix costs costs constant FX FX 39 Appendix 9c Pallets Asia-Pacific: Underlying profit analysis (US$m
Slide 22: RPCs and Containers underlying profit analysis
Appendix 9d For personal use only RPCs: Underlying profit analysis (US$m) (6) 4 (2) 2 (0) 20 76 76 58 1H16 Volume, Depreciation Net plant Net transport Other 1H17: FX 1H17: actual price, mix costs costs constant FX FX 41 Appendix 9e Containers: Underlying profit analysis (US$m) (1) (1) (3) 0 11 20 2
Slide 23: Glossary of terms and measures
Appendix 10 For personal use only 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.
Slide 24: Glossary of terms and measures (continued)
Appendix 10 For personal use only Glossary of terms and measures (continued) 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 ov
Slide 25: Investor Relations contacts
Investor Relations contacts For personal use only Sean O’Sullivan Vice President, Investor Relations Sean.osullivan@brambles.com +61 2 9256 5262 +61 412 139 711 Raluca Chiriacescu Director, Investor Relations raluca.chiriacescu@brambles.com +61 2 9256 5211 +61 427 791 189 47