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 23 February 2015 The Manager - Listings Australian Securities Exchange Limited Exchange Centre
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Slide 3: Half-year results 23 February 2015
For personal use only Half-year results 23 February 2015 Overview & Results Highlights Tom Gorman, CEO 2
Slide 4: Key 1H15 result messages
Key 1H15 result messages For personal use only Solid result with full-year guidance maintained On track to deliver FY15 guidance Underlying Profit expected to be US$1,055-1,085M (30 June 2014 FX) Improved Pallets result, with leverage to bottom line Strong profit performance in Europe: supply-chain
Slide 5: Financial highlights; Delivery scorecard
Financial highlights For personal use only Solid growth with leverage from sales to Underlying Profit (Continuing operations) 1H15 result Change vs. 1H14 Actual FX Constant FX Sales revenue US$2,795M 5% 8% Operating profit US$466M 3% 7% Profit after tax US$286M 2% 6% Underlying Profit US$485M 6% 10%
Slide 6: Continued momentum; Pallets segment result summary
Continued momentum For personal use only Sales revenue: constant FX growth of 8% in 1H15 (US$M) Solid, resilient performance USD appreciation vs. despite economic and other major operating competitive pressures and currencies below-trend contribution from emerging markets 50 51 4 (81) 61 41 Ferguson
Slide 7: RPCs and Containers segment result summaries
RPCs segment results summary For personal use only Strong sales growth and improved profitability 1H15 Change vs. 1H14 All regions contribute strongly to Actual Constant sales growth, led by Europe, as (US$M) FX FX adoption of RPCs continues Europe 305 6% 11% Modest costs growth compared with North
Slide 8: Ferguson and the oil industry cycle
Ferguson and the oil industry cycle For personal use only Well-positioned to weather currently challenging conditions >70% Sales revenue from mature, producing assets Attractive fundamentals <5% Sales revenue share of largest single customer <1% Sales revenue from non-conventional oil fields Growth
Slide 9: Financial Analysis; Operating profit analysis
For personal use only Financial Analysis Zlatko Todorcevski, CFO 13 Operating profit analysis (US$M) Continued growth offsets cost challenges and enables investment Includes US$10M Positive pricing and sales mix corporate cost benefits throughout Pallets, allocated to Recall growth in RPCs 12 in 1H1
Slide 10: Pallets cost trends and outlook; Profit reconciliation
Pallets cost trends and outlook For personal use only Outlook improving but headwinds remain 1H15 performance and drivers 2H15 considerations Asset utilisation impacts in US Finalize plan for durability improvement Plant costs Global Supply Chain efficiencies Final Global Supply Chain effici
Slide 11: Cash flow reconciliation; Balance sheet position
Cash flow reconciliation For personal use only Increased capital expenditure to support growth (US$M) 1H15 1H14 Change EBITDA 763 719 45 Capital expenditure (521) (433) (88) Proceeds from sale of property, plant and equipment 38 34 4 Working capital movement (27) 27 (54) IPEP expense 42 50 (8) Other
Slide 12: Summary & Outlook; Key 2H15 focus areas
For personal use only Summary & Outlook Tom Gorman, CEO 19 Key 2H15 focus areas Short-term priorities to drive long-term value Cost – mitigate transport inflation; deploy pallet durability actions in 1 CHEP USA Brand – refresh brand in CHEP Pallets; roll-out of new customer solution 2 strategy to be
Slide 13: FY15 guidance summary
FY15 guidance1 summary For personal use only Strong sales growth with positive leverage to Underlying Profit Constant FX sales revenue growth expected to be 8% to 9% Underlying Profit of US$1,055-1,085M (30 June 2014 FX rates) Equates to growth of 9-12% compared with FY142 Includes ~US$25M forecast
Slide 14: Disclaimer
Disclaimer For personal use only The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe s
Slide 15: Appendices; Glossary of terms and measures
For personal use only Appendices Appendix 1 Glossary of terms and measures Except where noted, common terms and measures used in this document are based upon the following definitions: Actual currency/FX Results translated into US dollars at the applicable actual monthly exchange rates ruling in eac
Slide 16: Glossary of terms and measures (continued)
Appendix 1 For personal use only Glossary of terms and measures (continued) Except where noted, common terms and measures used in this document are based upon the following definitions: DIN The sum in a period of: - Depreciation expense; - Irrecoverable Pooling Equipment Provision expense; and - Net
Slide 17: 1H15 sales revenue by segment and industry sector; ROCI
Appendix 2 For personal use only 1H15 sales revenue by segment and industry sector Pallets - emerging RPCs, 17% markets, 10% Automotive, 3% IBCs, 2% Oil & Gas, 2% Aerospace, 1% Pallets - developed markets, 64% 29 Appendix 3 Return on Capital Invested (ROCI) 25% 20% 15% 10% 5% FY10 FY11 FY12 FY13 FY1
Slide 18: Overhead costs/sales revenue; 1H15 currency mix
Appendix 4 For personal use only Overhead costs/sales revenue 20% 18% 16% 14% 12% FY10 FY11 FY12 FY13 FY14 1H14 1H15 31 Appendix 5 1H15 currency mix (US$M) Total USD EUR GBP AUD Other Pallets 2,091 901 406 184 141 459 RPCs 471 94 223 37 42 75 Containers 233 34 73 58 29 39 Sales revenue 2,795 1,029 7
Slide 19: Major currency exchange rates; Effective tax rate
Appendix 6 For personal use only Major currency exchange rates USD exchange rate: USD EUR GBP AUD CAD MXN ZAR 1H15 1.0000 1.2759 1.6180 0.8832 0.8959 0.0736 0.0911 Average 1H14 1.0000 1.3488 1.5923 0.9115 0.9546 0.0765 0.0984 31 Dec 14 1.0000 1.2157 1.5559 0.8182 0.8616 0.0679 0.0864 As at 30 Jun 14
Slide 20: Credit facilities and debt profile; Pallets net new business wins
Appendix 8 For personal use only Credit facilities and debt profile Committed Uncommitted Maturity Type Debt drawn Headroom facilities facilities (US$B at 31 Dec 2014) <12 months Bank/144A2/Other 0.3 0.3 0.3 0.3 1 to 2 years Bank/USPP1/Other 0.5 - 0.4 0.1 2 to 3 years Bank/Other 0.9 - 0.3 0.6 3 to 4
Slide 21: Pallets: net plant and transport costs/sales revenue
Appendix 10 For personal use only Pallets: net plant costs/sales revenue 43% 38% 33% 28% 23% FY10 FY11 FY12 FY13 FY14 1H14 1H15 Americas EMEA Asia-Pacific Total 37 Appendix 11 Pallets: net transport costs/sales revenue 21% 19% 17% 15% 13% 11% FY10 FY11 FY12 FY13 FY14 1H14 1H15 Americas EMEA Asia-Pac
Slide 22: Pallets: replacement vs maintenance capex; sales revenue/ACI
Appendix 12 For personal use only Pallets: replacement capex vs. maintenance capex 800 14% 700 12% 600 10% 500 8% 400 300 6% 200 4% 100 2% 0 0% FY10 FY11 FY12 FY13 FY14 1H14 1H15 Replacement capex (US$M, LHS) Growth capex (US$M, LHS) DIN/sales revenue (RHS) Note: data excludes USA recycled pallet op
Slide 23: CHEP USA and Europe pallet productivity trends
Appendix 14a For personal use only CHEP USA pallet productivity trends (B4840) Control ratio New equipment issue ratio (Returns + recoveries/total issues) (Pallets purchased/total issues) 100% 8% 6% 98% 4% 96% 2% 94% 0% FY10 FY11 FY12 FY13 FY14 1H15 FY10 FY11 FY12 FY13 FY14 1H15 41 Appendix 14b CHEP
Slide 24: Pallets Americas and EMEA: Underlying Profit analysis
Appendix 15a For personal use only Pallets Americas: Underlying Profit analysis (US$M) 3 27 (41) (5) Asset recovery and utilisation impacts (pallet damage, 206 transport costs) Freight inflation (capacity 195 constraints) 190 Higher depreciation 1H14 Volume, Global Direct 1H15 FX 1H15 price, mix Sup
Slide 25: Pallets Asia-Pacific and RPCs: Underlying Profit analysis
Appendix 15c For personal use only Pallets Asia-Pacific: Underlying Profit analysis (US$M) 1 (1) (1) (1) 4 37 36 34 1H14 Volume, Global Direct Other 1H15 FX 1H15 price, mix Supply costs (constant FX) Chain 45 Appendix 15d RPCs: Underlying Profit analysis (US$M) (3) (1) (2) 15 69 67 58 1H14 Volume, D
Slide 26: Containers Underlying Profit analysis; Ferguson historical results vs oil price
Appendix 15e For personal use only Containers: Underlying Profit analysis (US$M) (1) 12 32 31 1 (1) 2 18 1H14 Volume, Direct Other Acquisitions 1H15 FX 1H15 price, mix costs (constant FX) 47 Appendix 16 Ferguson Group historical results (right axis) vs. oil price (left axis) 160 120 140 100 Sales re
Slide 27: Half-year results
For personal use only Half-year results www.brambles.com