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 21 February 2013 The Manager - Listings Australian Securities Exchange Limited Exchange Centre
Slide 2: Half-Year Results Agenda
For personal use only Half-Year Results 21 February 2013 Agenda Results Highlights Tom Gorman, CEO Results Analysis Zlatko Todorcevski, CFO Context & Outlook Tom Gorman, CEO 2
Slide 3: Key messages
Results Highlights Key messages For personal use only • On track for solid full-year result following strong first half – Strong result in Pallets segment driven by Americas region – Continued sales revenue growth in RPCs and Containers – Maintenance of improved cost structure enables increased Reca
Slide 4: Key financial outcomes
Results Highlights Key financial outcomes For personal use only Continuing Operations Sales revenue US$2,890M 4% Operating Profit US$481M 14% Underlying Profit US$490M 7% Underlying Profit after tax US$311M 17% Underlying basic EPS US20.1¢ 12% Return on Capital Invested 15% 1pt Free Cash Flow US$177
Slide 5: Pallets – Americas and EMEA
Results Highlights Pallets – Americas: strong growth For personal use only • Sales revenue up 9% to US$1,075M – Constant currency sales revenue up 10% • Strong contribution from win-backs in CHEP USA • Profitable growth in all businesses • Underlying Profit up 20% to US$190M • Delivery of efficienci
Slide 6: Pallets Asia-Pacific and RPCs
Results Highlights Pallets – Asia-Pacific: timing impacts For personal use only • Sales revenue up 6% to US$198M – Constant currency sales revenue up 5% • Continued modest sales growth in Australia & New Zealand • Asian operations growing: South-East Asia and China profitable • Underlying Profit dow
Slide 7: Containers and Recall
Results Highlights Containers: investing for growth For personal use only • Sales revenue up 2% to US$138M – Constant currency sales revenue up 6% • Strong sales growth in Aerospace Solutions, US IBC, US Auto – Conversion of opportunities slower than anticipated • Impact of challenging automotive an
Slide 8: Results summary
For personal use only Results Analysis Zlatko Todorcevksi CFO Results Analysis Results summary Constant Continuing Operations Actual FX FX (US$M) 1H13 1H12 Change Change Sales revenue 2,889.7 2,783.0 4% 6% Underlying EBITDA 767.9 738.5 4% 7% Underlying Profit 490.0 456.3 7% 11% Operating Profit 481.
Slide 9: Group sales revenue growth; Pallets results summary
Results Analysis Group sales revenue growth (US$M) For personal use only Constant currency 15 Results Analysis Pallets: results summary Actual FX Constant FX (US$M) 1H13 1H12 Change Change Americas 1,074.7 983.8 9% 10% EMEA 669.4 672.8 (1)% 5% Asia-Pacific 198.4 187.0 6% 5% Sales revenue 1,942.5 1,8
Slide 10: Pallets Americas and EMEA Operating Profit
Results Analysis Pallets – Americas: Operating Profit (US$M) For personal use only Constant currency 17 Results Analysis Pallets – EMEA: Operating Profit (US$M) Constant currency 18
Slide 11: Pallets Asia-Pacific Operating Profit; RPCs results
Results Analysis Pallets – Asia-Pacific: Operating Profit (US$M) For personal use only 6 (5) (1) (2) 36 34 1H12 Volume/ Direct Business Other 1H13 price/mix costs development constant/ actual Constant currency 19 Results Analysis RPCs: results summary Actual FX Constant FX (US$M) 1H13 1H12 Change Ch
Slide 12: RPCs Operating Profit; Containers results
Results Analysis RPCs: Operating Profit (US$M) For personal use only Constant currency 21 Results Analysis Containers: results summary Actual FX Constant FX (US$M) 1H13 1H12 Change Change Automotive 73.2 78.7 (7)% (2)% Aerospace Solutions 24.9 17.6 41% 45% Intermediate Bulk Containers 22.0 19.3 14%
Slide 13: Containers Operating Profit; Recall results
Results Analysis Containers: Operating Profit (US$M) For personal use only Constant currency 23 Results Analysis Recall: results summary Actual FX Constant FX (US$M) 1H13 1H12 Change Change Americas 174.2 181.9 (4)% (2)% Europe 97.8 109.1 (10)% (7)% Rest of World 131.6 126.5 4% 3% Sales revenue 403.
Slide 14: Recall Operating Profit; Cash flow
Results Analysis Recall: Operating Profit (US$M) For personal use only Constant currency 25 Results Analysis Cash flow (US$M) 1H13 1H12 Change EBITDA 767.9 738.5 29.4 Capital expenditure (446.9) (516.2) 69.3 Proceeds from sale of PP&E 35.6 37.1 (1.5) Working capital movement (24.4) (104.7) 80.3 IPEP
Slide 15: Capex trend; strong balance sheet
Results Analysis Capital expenditure trend by segment For personal use only (US$M) actual FX, capex on PP&E, accruals basis 479 471 19 442 22 24 160 80 130 62 60 55 245 276 259 1H12 2H12 1H13 2H13 Forecast Pallets Other pooling Growth programs Recall Note: Growth programs defined as growth investmen
Slide 16: Results and strategy scorecard
For personal use only Context & Outlook Tom Gorman, CEO Context & Outlook Results and strategy scorecard FY13 target (constant currency) Progress Pooling Solutions growth on track; Sales revenue growth in all segments - Recall impacted by paper price Pallets: emerging markets sales revenue up 15%-pl
Slide 17: Intensive focus on execution; Pallets outlook
Context & Outlook Intensive focus on execution For personal use only Review & Insights Strategy Launch Implementation Delivery Diversification Global Pooling Organise Develop & Cost Leadership to deliver: interrogate Solutions key strategic fact base strategy Go To Market themes People & Leadership
Slide 18: RPCs outlook; Driving growth through Pallecon
Context & Outlook RPCs outlook For personal use only • Constant-currency sales revenue growth of 10-15% to be delivered in FY13 • Continued strong sales growth expected in subsequent years • Expansion from increased US penetration, rollout of product range • Scale efficiencies to drive improved prof
Slide 19: Containers and Recall outlook
Context & Outlook Containers outlook For personal use only • IBCs expansion plus growth in newer businesses – Aerospace Solutions: pooling and maintenance services – Expansion of US and emerging markets automotive operations – Executive appointed to lead pursuit of intercontinental opportunities • S
Slide 20: Outlook summary
Context & Outlook Outlook summary For personal use only • Subject to unforeseen circumstances and at 30 June 2012 exchange rates 1 • Continued constant currency sales revenue growth in all Pooling Solutions segments • On track to deliver FY13 Underlying Profit within tightened guidance range of US$1
Slide 21: Brambles
Brambles Brambles = e : a MOMENTUM =." ", oo" ~ B
Slide 22: Appendix 1: Glossary of terms and measures
For personal use only Appendices Appendices Appendix 1: Glossary of terms and measures Except where noted, common terms and measures used in this document are based upon the following definitions: Actual rates In the statutory financial statements, Brambles translates foreign currency results into U
Slide 23: Glossary of terms and measures (continued)
Appendices Appendix 1: Glossary of terms and measures (continued) For personal use only Except where noted, common terms and measures used in this document are based upon the following definitions: Operating Profit Operating Profit is profit before finance costs and tax, as shown in the statutory fi
Slide 24: Major currency exchange rates; Effective tax rate
Appendices Appendix 3: Major currency exchange rates For personal use only USD vs. USD EUR AUD GBP CAD ZAR 1H13 1.0000 1.2785 1.0397 1.5981 1.0058 0.1177 Average 1H12 1.0000 1.3693 1.0288 1.5865 0.9944 0.1310 31 December 12 1.0000 1.3193 1.0371 1.6174 1.0052 0.1179 As at 30 June 12 1.0000 1.2440 1.0
Slide 25: Significant Items; Credit facilities and debt profile
Appendices Appendix 5: Significant Items For personal use only (US$M) actual FX 1H13 1H12 Underlying Profit 490.0 456.3 Significant Items: Acquisition-related costs (4.5) (1.4) Restructuring & IFCO integration costs (4.1) (22.0) Recall transaction costs - (5.9) Pension costs - (5.8) Foreign exchange
Slide 26: Efficiencies and synergies; Capex by nature
Appendices Appendix 7: Efficiencies and synergies For personal use only (US$M) Actual Forecast Incremental year-on-year improvement FY15 Initiatives FY12 1H13 FY13 FY14 FY15 total IFCO RPC and PMS Integration 10 6 10 20 - 40 Operations & Logistics efficiencies 10 7 10 20 20 60 in Pallets segment Tot
Slide 27: Pooling Solutions sales revenue; Pallets by business unit
Appendices Appendix 9: Pooling Solutions 1H13 sales revenue For personal use only by segment (US$M) 138 406 Constant FX growth vs. 1H12 Pallets – Americas 10% Americas, 1,075 Pallets – EMEA 5% Asia-Pacific, 198 Pallets - Asia-Pacific 5% RPCs 10% Containers 6% EMEA, 669 51 Appendices Appendix 10: Pal
Slide 28: CHEP USA pallet rejections and plant trends
Appendices Appendix 11: CHEP USA pallet rejections For personal use only 53 Appendices Appendix 12a: CHEP USA pallet plant operations and transportation trends Plant cost ratio Transportation cost ratio (Plant costs/sales) (Transportation costs/sales) 54
Slide 29: CHEP USA productivity; CHEP Europe plant trends
Appendices Appendix 12b: CHEP USA pallet productivity trends For personal use only Control ratio New equipment issue ratio (Returns + recoveries/total issues) (Pallets purchased/total issues) 55 Appendices Appendix 13a: CHEP Europe pallet plant operations and transportation trends Plant cost ratio T
Slide 30: CHEP Europe productivity; RPCs revenue by region
Appendices Appendix 13b: CHEP Europe pallet productivity trends For personal use only Control ratio New equipment issue ratio (Returns + recoveries/total issues) (Pallets purchased/total issues) 57 Appendices Appendix 14: RPCs 1H13 sales revenue by region (US$M) 56 Constant FX growth vs. 1H12 10 Eur
Slide 31: Containers and Recall revenue by sector
Appendices Appendix 15: Containers 1H13 sales revenue For personal use only by sector (US$M) 18 Constant FX growth vs. 1H12 Automotive (2)% 22 Aerospace 45% 73 IBCs 17% CCC (10)% 25 59 Appendices Appendix 16: Recall 1H13 sales revenue by sector (US$M) 42 Constant FX growth vs. 1H12 64 Document Manag
Slide 32: Paper prices; Disclaimer
Appendices Appendix 17: Paper prices – North America For personal use only US$ 61 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
Slide 33: 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 63