Slide 1: Investment Market Briefing
Investment Market Briefing 15 – 17 September 2015 Pasadena, California
Slide 2: Safety briefing
Safety briefing N Los Robles Ave Say ol Coal rot " Staging 7 Area i SY coe SS ountain vrata paced | Fountain Foyer | t Pip : — bai D i r on, Fountain Terrace +S eet _ ae [oe [oe Courtyard 7 Staging Area . . 2 Brambles
Slide 3: Agenda
Agenda Tuesday 15 September 1600-1700 Welcome and introductory presentation Tom Gorman, CEO Fountain Ballroom 1700-1900 Drinks and dinner Courtyard 3
Slide 4: Agenda
Agenda Wednesday 16 September - morning 0730-0830 Networking breakfast Fountain Foyer/Terrace 0830-0930 Everything Begins with the Customer John Thelan, Senior Vice President, Fountain Ballroom A conversation with Costco Depots & Traffic, Costco Wholesale Chris Young, Senior Vice President, Supply C
Slide 5: Agenda
Agenda Wednesday 16 September – afternoon and evening 1300-1345 Expanding IFCO’s global position Wolfgang Orgeldinger, Fountain Ballroom RPCs global strategy update Group President, IFCO 1345-1430 Building the IFCO network in North America Dan Walsh, President, Fountain Ballroom IFCO North America o
Slide 6: Agenda
Agenda Thursday 17 September – morning and afternoon 0730-0830 Networking breakfast Fountain Foyer/Terrace 0830-0930 Outward coach transport to site tours Meet in hotel foyer 0930-1030 Visit to IFCO service centre, Rancho Cucamonga 1030-1100 Onward transport 1100-1200 Visit to CHEP service centre, R
Slide 7: Financial figures
Financial figures Throughout these presentations, unless otherwise stated: Currency is US dollars Growth rates are at Constant Currency, as defined in the Glossary (see Appendix 1) Compound annual growth rate (CAGR) is at 30 June 2015 foreign exchange rates All forward-looking statements subject to
Slide 8: 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
Slide 9: Welcome and Introduction
Welcome and Introduction Brambles
Slide 10: Tom Gorman
Tom Gorman CEO 10 Brambles
Slide 11: Investment proposition unchanged
Investment proposition unchanged We are driven by our focus on the customer …which drives superior rates of economic return (i.e. high Objectives quality of opportunity)… Annual percentage sales revenue Our customer value growth in the high single digits proposition enables a (constant FX) strong an
Slide 12: Context for our objectives
Context for our objectives We are committed to sustainable value creation The 20% objective is realistic over time and demonstrates our commitment 1 to disciplined capital allocation We are not going to prioritize a short-term financial outcome in any given year 2 if it is not in the interest of lon
Slide 13: Quantity and quality drive value
Quantity and quality drive value We are committed to creating shareholder wealth Quality 31% Shareholder Delivery of cost- Disciplined Shareholder wealth - future out efficiencies portfolio Return on Capital Invested 29% wealth - today management 27% Leveraging acquired 25% goodwill Increased 23%
Slide 14: Strategic focus areas to drive value
Strategic focus areas to drive value Enabling growth in both “quality” and “quantity” Customer collaboration and innovation programs in Investing in network support of long-term value proposition advantage US$1.5 billion of growth capital expenditure anticipated over next four years Continued
Slide 15: Redirecting cost to add value
Redirecting cost to add value Cost efficiencies are enabling reinvestment in the customer Delivery of Global Supply Chain Funding greater investment in efficiencies - Customer collaboration One Better – focus - Brand rejuvenation on reducing - Services and solutions portfolio indirect costs - Produc
Slide 16: Investing in innovation
Investing in innovation Four key themes 1 Supply-chain services 2 Omni-channel 3 Track and trace Internet of Things 4 Big data 16
Slide 17: Innovation: the Internet of Things
Innovation: the Internet of Things 500 million moving assets needn’t be dumb… Thinking From: To: differently - Track-and-trace pilots - Data-driven customer solutions - Technical feasibility - Commercial feasibility - What assumptions do we need to confirm to move forward? Proof of concept - What do
Slide 18: Guidance and outlook summary
Guidance and outlook summary Increased investment to support long-term objectives FY19 objectives Commitment remains to 20% ROCI target, prior to acquisition impacts Average Capital Invested CAGR likely to exceed original 5% expectation Organic growth investment now anticipated at US$1.5B from FY16
Slide 19: Investment Market Briefing
Investment Market Briefing 15 – 17 September 2015 Pasadena, California
Slide 20: Agenda
Agenda Wednesday 16 September - morning 0730-0830 Networking breakfast Fountain Foyer/Terrace 0830-0930 Everything Begins with the Customer John Thelan, Senior Vice President, Fountain Ballroom A conversation with Costco Depots & Traffic, Costco Wholesale Chris Young, Senior Vice President, Supply C
Slide 21: Everything Begins with the Customer
Everything Begins with the Customer
Slide 22: Chris Young
Chris Young Senior Vice President, Supply Chain, CHEP North America 22
Slide 23: John Thelan
John Thelan Senior Vice President, Depots & Traffic, Costco Wholesale Chief responsibilities Oversight of Costco’s cross-dock oriented distribution network (depots) 34 depots strategically located throughout North America Total 9.26M square feet 4,300 employees Oversight of all staff responsible for
Slide 24: Investment Market Briefing
Investment Market Briefing 15 – 17 September 2015 Pasadena, California
Slide 25: CHEP's Unique Global Opportunity
CHEP’s Unique Global Opportunity
Slide 26: Peter Mackie
Peter Mackie Group President, CHEP Pallets 26
Slide 27: Pallets delivery scorecard – FY15
Pallets delivery scorecard – FY15 Outstanding Europe performance offsets Americas challenges Result Change Sales revenue US$4,082M 5% Solid amid challenging economic backdrop Underlying Profit US$832M 6% Margin growth despite USA cost pressure Average Capital Invested US$3,918M 5% Broadly consistent
Slide 28: Our global Pallets portfolio
Our global Pallets portfolio A very strong platform for investment in profitable growth Penetration and return profile of Pallets business units 35% Return on Capital Invested 30% Africa, India & Middle East Asia-Pacific Europe 25% 20% North America Latin America 15% Emerging markets 10% 5% 0% 0% 2%
Slide 29: CHEP Pallets growth priorities
CHEP Pallets growth priorities Strong focus on driving development of the core 1 2 3 Invest in Seize new ground Extend global customer in existing network retention markets 29
Slide 30: Investing in customer retention
Investing in customer retention Improved customer satisfaction globally: FY13 to FY15 Legend NPS score Strong progress in top 10 markets * Excludes CHEP North America recycled pallet operations; countries in grey are countries in which Pallets operations are negligible or none, so no NPS survey was
Slide 31: Investing in customer retention
Investing in customer retention Strong comparison with global NPS benchmarks CHEP vs. Satmetrix B2B benchmarks by country, FY15 Mean ~86% of 27 Percentage of CHEP markets surveyed 13.8% 27.6% 48.3% 10.3% surveyed are at countries or above the mean Below mean Mean Upper quartile Best in class 31
Slide 32: Investing in customer retention
Investing in customer retention Simplifying the customer experience Simplification Invoicing Self-Service Transforming the invoice into a Transforming Portfolio Plus+ (CHEP’s online value-adding tool with integrated, self-service portal) to bring simplicity, speed electronic, interactive invoicing a
Slide 33: Investing in customer retention
Investing in customer retention Video: highlights of our initiatives 33
Slide 34: Investing in customer retention
Investing in customer retention Simplifying the customer experience Pricing B2B Integration Developing flexible, customer-centric and Simplification Automating customer interactions across multiple touch points to simpler pricing options reduce effort, drive transparency and increase data accuracy I
Slide 35: Investing in customer retention
Investing in customer retention Continuing to drive cost competitiveness Pallet performance and durability Plant automation Network optimization One Better indirect cost reductions Asset productivity 35
Slide 36: Investing in customer retention
Investing in customer retention Building better supply chains together 3,000 tons CO2 105 customers reduction per participating year 3,000,000 310 transport kilometres lanes… and reduction per growing year European transport collaboration € €4.7M total value generated 54,584 shipments 36
Slide 37: Seizing new ground in existing markets
Seizing new ground in existing markets Growth of base, further expansion, controlled Recycled growth Contribution to sales revenue growth: Contribution to sales revenue growth: five years to FY15 five years to FY20 12% 35% 37% 38%1 43% 8% 26% 1% Pooled growth – developed Recycled solutions Pooled gr
Slide 38: Extending our global network
Extending our global network Targeted geographic growth is a key part of our plan Legend Country of operation Under development Under investigation Entered in past five years 38
Slide 39: CHEP Pallets growth priorities
CHEP Pallets growth priorities Investments focused on driving both quantity and quality Impact: Customer Cost Strategic focus area Investment Growth/Retention satisfaction competitiveness Technology for the customer Pallet inventory Invest in customer retention Plant automation Equipment durability
Slide 40: Investment Market Briefing
Investment Market Briefing 15 – 17 September 2015 Pasadena, California
Slide 41: This is the Supply Change
This is the Supply Change Brambles
Slide 42: Kim Rumph
Kim Rumph President, CHEP North America 42
Slide 43: Evolution of CHEP North America
Evolution of CHEP North America Addressing challenges while building for the future PMS Pool Customer collaboration acquisition productivity Costco block IGPS win-backs Market pallet mandate begin differentiation Better Everyday Asset productivity program launched improvements Targeted growth 2009 2
Slide 44: Delivery of a solid rate of growth
Delivery of a solid rate of growth … despite challenging industry conditions CHEP North America sales growth vs. underlying grocery store sales growth 8% 6% 4% 2% 0% -2% -4% -6% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Food and beverage retail sales growth (US Census Bureau) CHEP North America sales
Slide 45: Emphasis on long-term value
Emphasis on long-term value Improvement in profit despite cost headwinds Change in CHEP North America Underlying Profit margin 3.5pp (3.1)pp (3.3)pp 3.5pp 2.3pp (1.6)pp Recycled 17.1% business 18.4% Delivery of delivers high Reflects reduced loss efficiencies after ROCI but has rate as a result of i
Slide 46: Maximising Pool Productivity
Maximising Pool Productivity
Slide 47: Managing the pool sustainably
Managing the pool sustainably Continuous focus on customers’ long-term needs Customer complaints Better Everyday New pallet demand Quality Automation trends Repair costs Loss rates Recycler engagement Pallet replacement Asset Productivity Retailer collaboration Transport costs Repair costs L
Slide 48: Key product specification trends
Key product specification trends Video: inside a leading manufacturer’s automated warehouse 48
Slide 49: Key asset productivity trends
Key asset productivity trends Significant progress in managing new pallet capex CHEP USA – contractual new pallet CHEP USA – IPEP/sales revenue commitments 5 4% 4 Zero 3% commitments in FY16 Pallets (M) 3 2% 2 1% 1 0 0% FY11 FY12 FY13 FY14 FY15 FY16F FY11 FY12 FY13 FY14 FY15 49
Slide 50: Key durability actions
Key durability actions Program progressing well Clinch-nail: ~25% of pool in FY16 Nail-plate: ~60% of new pallets in FY16 50
Slide 51: Key transport industry trends
Key transport industry trends Mitigating challenging external factors Chainalytics Study to: Key conclusions Short-term outlook Validate approach CHEP is complex Cass Index projects Provide insights into Modest cost saving inflation 4% to 8% in our projections opportunities CY16 Recycled
Slide 52: Transport inflation
Transport inflation Elevated line-haul rates for the past 18 months Cass Truckload Linehaul Index: year-on-year 130 125 120 115 110 105 100 January February March April May June July August September October November December 2012 2013 2014 2015 The Cass Truckload Linehaul Index™ is an accurate, tim
Slide 53: Differentiating our Market Position
Differentiating our Market Position
Slide 54: Becoming a customer solutions provider
Becoming a customer solutions provider Shifting the conversation from the “pallet” to the “unit load” Differentiation Formalized our capabilities into segment-specific solutions Unique vs. traditional competitors Protect and win Engaging intimately with our customers Adding value across thei
Slide 55: A differentiated brand campaign
A differentiated brand campaign Launched June 2015 and running strong 55
Slide 56: Our solutions portfolio
Our solutions portfolio Video: Consumer Goods value proposition 56
Slide 57: Adding value throughout the supply chain
Adding value throughout the supply chain Solutions portfolio: customer case studies Transport collaboration Unit-load optimization “CHEP helped us save 865,000 empty Increase in product miles and reduce 2.7 million pounds of shipped per unit-load CO2” – Walmart Stores Inc., Senior with existing pall
Slide 58: Delivering Targeted Growth
Delivering Targeted Growth Brambles
Slide 59: New business driving growth
New business driving growth Market-share expansion has continued steadily CHEP North America sales revenue growth (constant currency in year) 8% 6% 4% 2% 0% FY11 FY12 FY13 FY14 FY15 -2% Like-for-like volumes Price Net new business Recycled Note: Impact of acquisitions (IFCO Pallet Management Service
Slide 60: Better positioned than ever for growth
Better positioned than ever for growth Leveraging our unique scale and solutions capability 1 Solutions portfolio Expanding 2 Segmentation the core 3 Recycled expansion 1 Fractional pallets New products and verticals 2 New retail verticals 60
Slide 61: Segmentation of opportunity
Segmentation of opportunity Targeted approach guiding our growth Protect (156 accounts) Strategic (46 accounts) 25% Global 58% Pooled sectors Total current Grocery Total current volume volume Hunting team 90% Beverage and dairy 66% Small and mid Pooled Produce and protein Pooled Current revenue pene
Slide 62: Case study: half pallet
Case study: half pallet Canned/bottled segment value proposition Merchandising solution Reduced product damage Consistent quality platform Easy to move in aisle Key successes Heavy products – canned, bottled etc Seasonal promotion adoption Supply-chain compatibility 62
Slide 63: Expanding the Recycled network
Expanding the Recycled network Riverside case study demonstrates scale of opportunity Approach Continue national network expansion through new markets and increased penetration in existing markets Area served today: Leverage existing infrastructure and low 10M pallets capital requirements Access mor
Slide 64: Tomorrow's site visit
Tomorrow’s site visit Introducing CHEP’s Riverside facility Key statistics Annual recycled repairs: 3.8M Annual pooled repairs: 0.8M Building size: 78,000 square feet Employees: 113 Production shifts: 2 Transport shifts: 2 Tractors: 18 Trailers: 240 64
Slide 65: Investment Market Briefing
Investment Market Briefing 15 – 17 September 2015 Pasadena, California
Slide 66: Agenda
Agenda Wednesday 16 September – afternoon and evening 1300-1345 Expanding IFCO’s global position Wolfgang Orgeldinger, Fountain Ballroom RPCs global strategy update Group President, IFCO 1345-1430 Building the IFCO network in North America Dan Walsh, President, Fountain Ballroom IFCO North America o
Slide 67: Expanding IFCO's Global Position
Expanding IFCO’s Global Position
Slide 68: Wolfgang Orgeldinger
Wolfgang Orgeldinger Group President, IFCO 68
Slide 69: RPCs delivery scorecard FY15
RPCs delivery scorecard FY15 A successful year, in line with our strategy Result Change Sales revenue US$918M 12% Strong contribution from all regions Underlying Profit US$132M 15% Driven by European efficiencies Average Capital Invested US$1,541M 6% Strong efficiency relative to sales revenue Retur
Slide 70: Our global RPCs portfolio
Our global RPCs portfolio Strong businesses with considerable growth opportunity Penetration and return profile of RPCs business units 55% Return on Capital Invested 45% CHEP ANZ & South Africa 35% IFCO Europe (ex- intangibles) 25% IFCO IFCO South America 15% Europe IFCO North America (ex-intangible
Slide 71: Drivers of IFCO growth since acquisition
Drivers of IFCO growth since acquisition Compound annual volume growth of 11%, FY12-FY15 Share of volume growth by origin Share of volume growth by region (recollections) (recollections) Acquisitions, South New America, 0.2% verticals, 0.4% 1.1% Existing retailers, North 5.1% America, 2.7% New Europ
Slide 72: IFCO Europe FY15 recap: a great year
IFCO Europe FY15 recap: a great year Volume growth of ~12% Share of volume growth by origin Share of volume growth by country (recollections) (recollections) Other, 0.1% Other, 2.5% New UK, 5.0% Existing retailers, retailers, Germany, 6.0% 6.2% 1.7% Key retailer wins • Coop UK • European hard discou
Slide 73: Geographic expansion: South America
Geographic expansion: South America Rentapack acquisition creates step change in scale IFCO’s existing operations are well-established Key features1 and generate strong rates of growth and return Retail partners: >25 on capital Growers: >950 Employees: 434 Rentapack acquisition in Chile in May 2
Slide 74: Geographic expansion: Asia
Geographic expansion: Asia Japan acquisition with continuing pilots elsewhere IFCO Japan a well-established business, founded in 1995 as a joint venture Brambles acquired full control in August 2015 (previously 33% owned) Pilots and research continue in other key Key features Asian markets; en
Slide 75: Global trends in produce and packaging
Global trends in produce and packaging Common themes emerging with customers around the world “Omni-channel” Click-and-collect and home delivery “Dark” stores - mini distribution centres Floor space and process efficiency critical Driving demand for standardized packaging 75
Slide 76: Global trends in produce and packaging
Global trends in produce and packaging Common themes emerging with customers around the world Smaller urban stores Small store layouts with localized product mix Expect a broad assortment Limited space and aim for freshness = more frequent deliveries Pack sizes shrinking Modular, standardi
Slide 77: Global trends in produce and packaging
Global trends in produce and packaging Common themes emerging with customers around the world Differentiated point-of-sale merchandising Retailers want to utilise the advantages of market standards for packaging – and are committed to them At the same time they want to differentiate their displa
Slide 78: Global trends in produce and packaging
Global trends in produce and packaging Common themes emerging with customers around the word Global fresh produce sourcing Consumers request year-round availability of all fresh produce categories Retailers are sourcing globally for counter-season demand Western retailers competing for supply
Slide 79: Global trends in produce and packaging
Global trends in produce and packaging Common themes emerging with customers around the world Food safety Critical to wellbeing of people and sustainability of the supply chain US driving the direction globally Stricter regulations expected in all major markets 79
Slide 80: Global trends in produce and packaging
Global trends in produce and packaging Common themes emerging with customers around the world Food waste Increasing focus due to mounting impacts Pressure to reduce loss in the supply chain Retailers looking for ways to quantify improvements RPC packaging can help to reduce food waste 80
Slide 81: IFCO's response to market trends
IFCO’s response to market trends Five key topics matter most to our customers Differentiated point-of-sale 1 merchandising Support for Southern Hemisphere 2 sourcing 3 New RPC products and services 4 Food safety Measuring cost savings, environmental 5 impact and food waste reductions 81
Slide 82: RPC customisation
RPC customisation Emerging demand for customised RPCs presents new challenges Situation Increased competition for fresh produce sales is driving some retailers to seek alternative RPC designs to differentiate their display Challenges Multiple pools increase costs for producers, retailers and poo
Slide 83: Customised pool strategy
Customised pool strategy IFCO offers custom pools to select partners Black version of lift-lock RPC Long-term agreement Mutually-agreeable production schedule “Wood look” RPC Strong retailer advocacy in North America Largest potential volume in the world 83
Slide 84: IFCO merchandising innovations
IFCO merchandising innovations Range of solutions allows customisation of standardized RPCs Shelf Strips Clips Cards 84
Slide 85: IFCO merchandising innovations
IFCO merchandising innovations Range of solutions allows customization of standardized RPCs Wraps & Racks Fresh FramesTM Promo Plates (patent pending) 85
Slide 86: Support for Southern Hemisphere sourcing
Support for Southern Hemisphere sourcing Examples of recent implementations Pears and apples from Argentina Pineapples from Costa Rica Bananas from Central America Apples and kiwis from New Zealand 86
Slide 87: New product innovations
New product innovations Demand for packaging standardization throughout fresh market Bananas UK Bread Northern and France Central Europe Germany Eggs Meat Spain Most of Europe US US Germany 87
Slide 88: New product innovations
New product innovations Examples of recent implementations 88
Slide 89: IFCO is committed to food safety
IFCO is committed to food safety Delivering safe RPCs to our customers is our top priority Strict global standards RPC cleaning process Diversey™ detergent and disinfectant guarantee Industry leadership Reusable Packaging Association best practices Dissolvable label development Continu
Slide 90: Focus areas for value creation
Focus areas for value creation Key drivers of IFCO’s financial performance Ongoing penetration and scale efficiencies in Europe Higher RPC penetration with existing accounts Retailer and segment diversification Improving scale and returns in North America Controlled expansion of South Amer
Slide 91: Building the IFCO Network in North America
Building the IFCO Network in North America
Slide 92: Dan Walsh
Dan Walsh President, IFCO North America 92
Slide 93: IFCO North America's development
IFCO North America’s development We have consistently built scale and credibility 1,500 producer locations 200M 1,000 producer locations recollections 100M 100 retail DCs recollections 20 retailers 500 producer locations 50M recollections 15 retailers 50 retail DCs 6 retailers 3 retailers 2005 2006
Slide 94: IFCO North America at a glance
IFCO North America at a glance Targeting network and scale efficiencies as we grow Long-term growth trend Network map 200 150 Portland, OR Chicago, IL 100 Fresno, CA Baldwin Park, CA 50 Rancho Cucamonga, CA Goodyear, AZ Atlanta, GA Tijuana, MX 0 San Antonio, TX Sales revenue, US$M Crates, M Wash cen
Slide 95: Addressable opportunity
Addressable opportunity Strong market potential and targeted strategy 1.2B trips 1.9B trips 2.0B trips Current retailer targets Targeted opportunity 2.3B trips Addressable opportunity Addressable retailers, Retailers addressable commodities and pack Total opportunity types only with current prod
Slide 96: Penetration and market landscape
Penetration and market landscape First-mover status is a crucial advantage Breakdown of penetration IFCO is well-established as the IFCO, Other 11% poolers, largest pooler with the most 3% extensive network Conversion from corrugate Corrugate, continues to present considerable 86% growth opportu
Slide 97: Three key areas of focus
Three key areas of focus Tackling the issues in a disciplined manner 1 Align market 2 Maintain 3 Drive positioning growth efficiency A clearly enunciated Continued customer Increased volume value proposition intimacy and penetration to Sales-force re- Retailer drive pool efficiency organis
Slide 98: Our value proposition
Our value proposition How we bring value to our North American customers Retailers Growers Supply-chain cost reduction Track record of rapid, Packaging standardization customer-centric expansion Less product damage Unique supply-chain view used to Effective merchandising anticipate trend
Slide 99: Sales force re-organisation
Sales force re-organisation Clear, focused, and aligned with our strategy IFCO North America leadership Commodity Grower sales Retail sales management New business Regional Audit and Category Key accounts development accounts compliance management 99
Slide 100: Commodity management for granular value
Commodity management for granular value Develop strategic commodity conversion goals Focus on top 5 retailers and commodity “super groups” Compliance Strategy Prioritize year-round business utilizing surplus inventory Continuously evaluate conversions to ensure compliance Deliver to Retail
Slide 101: Commodity management for granular value
Commodity management for granular value Implement regional audit team on monthly schedule Distribute weekly compliance report to sales Compliance Strategy Coordinate and track top compliance opportunities Present fact-based value propositions (sales and Deliver to commodity management) Basel
Slide 102: Supply-chain analysis tool
Supply-chain analysis tool Cost evaluation tool developed with CalPoly State University Time-trial results Location Activity RPCs vs. cardboard Slotting 9% faster Order picking and palletizing 50% faster Distribution center Stretch wrapping 38% faster Loading 19% faster Unloading No significant diff
Slide 103: Retailer merchandising differentiation
Retailer merchandising differentiation Case study: Walmart wood-grain RPC Excited about the opportunity to partner with Walmart – an opportunity to ignite meaningful advocacy and reinforce value Commitment to a quality product that will perform in the supply chain and support Walmart’s merchandi
Slide 104: Case study: Cajas Agricolas
Case study: Cajas Agricolas Distribution partnership drives strong growth in Mexico Opportunity Collaboration Result Mexico exports to US = 650M Distribution partnership with Steady volume growth in annual issue potential Cajas Agricolas Mexico: +15% FY14 to FY15 Majority small to mid-size
Slide 105: Tomorrow's site visit
Tomorrow’s site visit Introducing IFCO’s Rancho Cucamonga facility Key statistics Annual RPCs washed: 83M Building size: 208,000 square feet Employees: 250 Production shifts: 3 Weekly operations: 24/7 In-line tunnel wash machines: 5 105
Slide 106: Focus areas for value creation
Focus areas for value creation Key drivers of IFCO North America performance Effective delivery of our value proposition Higher RPC penetration with existing accounts Continued retailer, market and segment diversification Price discipline Network efficiencies through scale 106
Slide 107: Investment Market Briefing
Investment Market Briefing 15 – 17 September 2015 Pasadena, California
Slide 108: Executing our Global Containers Strategy
Executing our Global Containers Strategy
Slide 109: Jason Rabbino
Jason Rabbino Group President, Containers and Head of Strategy 109
Slide 110: Containers: a diversified portfolio
Containers: a diversified portfolio Value creation in four distinct supply chains Return profile of Containers business units 35% Automotive Return on Capital Invested IBCs - ex-intangibles 25% Oil & Gas - ex intangibles 15% 5% IBCs Oil & Gas -5% LeanLogistics Aerospace -15% -10% -5% 0% 5%Growth in1
Slide 111: Containers delivery scorecard – FY15
Containers delivery scorecard – FY15 Results reflect diversity and portfolio building investments Result Change Excluding Reported acquisitions Sales revenue US$466M 31% 4% Heavily weighted to acquisitions Underlying Profit US$59M 72% 10% Strong sales to profit leverage Average Capital Invested US$8
Slide 112: Market and competitive dynamics
Market and competitive dynamics Continuing evolution in our four supply chains Market dynamics Competitive environment Highly fragmented Generally steady demand IBCs Cardboard and drums the dominant Capex pressures driving pooling interest competition US focus on maximizing production Ow
Slide 113: Strategy update: IBCs
Strategy update: IBCs Three strategies to expand growth and profitability 1 2 3 New verticals and Globally leveraging Intercontinental new poolable proven solutions and geographic container offerings and talent expansion 113
Slide 114: IBC key progress areas
IBC key progress areas Good execution on core strategies New verticals and new Trialing new protein bin with several top US producers poolable container types >US$50M opportunity largely in cardboard today Innovation programs must pass tight ROCI and operations review before rollout Globally l
Slide 115: Intercontinental case study: Rana Meal
Intercontinental case study: Rana Meal Rana Meal solution implemented successfully CHEP recently began shipping 2M liters of fresh basil Rana is the No. 1 filled pasta paste per year from Italy to the USA company in Europe Rana Meal Basil Sauce Before: palletized metal drum After: CHEP reusable cont
Slide 116: Strategy update: Automotive
Strategy update: Automotive Becoming one global business in line with customer needs Background North America: Build on first OEM win to accelerate growth Long-term sluggish market in EMEA coupled with Australian Europe: Retain and extend core wind-down creates material customers, improve pricing,
Slide 117: Intercontinental case study: Automotive
Intercontinental case study: Automotive Honeywell signed and in process for Q2 FY15 launch CHEP pooled solution for annual movement of Leading global tier-one >100,000 turbo-chargers from China and India to automotive supplier Europe and Mexico Before: one-way packaging After: CHEP reusable containe
Slide 118: Strategy update: Oil & Gas
Strategy update: Oil & Gas Current view on value creation priorities November 2014 focus areas Progress Tanks and chemical containers 7% constant FX sales growth (Ferguson, pro forma) Organic 1 Customer demand: DNV certification Tank fleet up 38% since June 14 growth Expansion of value-add
Slide 119: Meeting our value creation commitments
Meeting our value creation commitments Key drivers to improve Containers’ growth and returns Improved range of solution offerings Accelerating organic New sales incentive plans and leadership growth Centralizing marketing best practices, rolling out salesforce.com Integrating into Brambles P
Slide 120: Our Evolving Containers Offering in North America
Our Evolving Containers Offering in North America
Slide 121: Drew Merrill
Drew Merrill Vice President, General Manager, CHEP Container Solutions, North America 121
Slide 122: Snapshot of our business
Snapshot of our business Solid rates of growth and high customer loyalty Automotive and IBC North America sales Key business features 40 revenue (US$M) ~90 employees 150 customers 30 ~400k units We have never lost an IBC customer 20 Key partners 10 0 FY11 FY12 FY13 FY14 FY15 1 Compound annua
Slide 123: Evolution of automotive strategy
Evolution of automotive strategy Emphasis on growth of managed services model Strategic rationale Key activities and current priorities Broaden point-of-entry opportunities with auto-makers Quicken rollout of managed services given and tier suppliers in a market dominated by owned 1 pools… early suc
Slide 124: IBC – Americas growth strategy
IBC – Americas growth strategy Simple three-step plan – disciplined execution is the key 1 2 3 Entrench and expand core liquid Expand dry, protein Export US IBC offering and bulk food IBC expertise into Latin - Dairy offering American markets - SCDI1 - Beverage 1 Sauces, condiments, dressings and in
Slide 125: Quick-hit innovations
Quick-hit innovations Differentiators that can be drivers of growth Tote heater pad Bag winder Air assist liner Bin evacuation Bladeless agitator system Liquefies edible fats Wrings out excess Automatic inflating Automated Air-based pre-mixing and oils viscous product air bladder compression tool de
Slide 126: Case study: L'Oréal
Case study: L'Oréal IBC solution reduced cost and increased efficiency L'Oréal’s plant in Florence, Kentucky produces all of L'Oréal’s shampoos in North America. CHEP provided L'Oréal with a cost- effective and efficient IBC solution for shipping promotional shampoo product to off-site co-packers. B
Slide 127: IBC – Americas growth strategy
IBC – Americas growth strategy Simple objectives that require disciplined execution Priority: Develop custom bin to optimize pooling dynamics meat Engage large beef and pork players through existing pallet relationships Expand dry, Priority: protein and bulk Leverage Transpac expertise and cus
Slide 128: Case study: HACCP tracking program
Case study: HACCP tracking program Video: Darifair is an early adopter of this solution 128
Slide 129: Investment Market Briefing
Investment Market Briefing 15 – 17 September 2015 Pasadena, California
Slide 130: Leveraging our Network Advantage for Value
Leveraging our Network Advantage for Value
Slide 131: Zlatko Todorcevski
Zlatko Todorcevski Chief Financial Officer 131
Slide 132: Five-year trend in "quantity" and "quality"
Five-year trend in “quantity” and “quality” We have almost doubled in size while maintaining returns Average Capital Invested vs. Return on Capital Invested (continuing operations) 7,000 25% 6,000 20% 5,000 US$M 4,000 15% 3,000 10% 2,000 5% 1,000 0 0% FY11 FY12 FY13 FY14 FY15 Average Capital Investe
Slide 133: Pallets – ROCI profile and drivers
Pallets – ROCI profile and drivers Targeting upside from a strong position 25% Key value drivers Growth Investment in well-established businesses Direct costs mitigation in Americas region Underlying Profit margin Focus on cost and asset utilisation efficiency FY14 20% FY11 FY15 FY13 FY12 FY10
Slide 134: RPCs – ROCI profile and drivers
RPCs – ROCI profile and drivers Investing in building our global position 25% 12% ROCI frontier 20% ROCI frontier Underlying Profit margin FY10 20% FY11 FY13 FY15,ex-intangibles FY12 15% FY15 Key value drivers FY14 Superb growth platform in Europe, ANZ, South Africa Investing for long-term scale
Slide 135: Containers – ROCI profile and drivers
Containers – ROCI profile and drivers Many opportunities in our diverse portfolio 25% Key value drivers Growth strategy for global automotive operations Underlying Profit margin Scale efficiency in newer operations, intercontinental 20% Strong growth in high-returning IBC operations FY10 15% F
Slide 136: We have forecast US$1.5B in growth capex
We have forecast US$1.5B in growth capex Allocated to drive value now and in the long-term Return on Capital Invested, ex-intangibles Asia-Pacific Auto Europe AIME Legend North America CHEP IFCO Containers Europe Oil & Gas IBCs Latin America Other Value frontier Aerospace North America Growth in Ave
Slide 137: Long-term opportunity mapping
Long-term opportunity mapping An assessment of value creation beyond short-term returns Comparative net present values of opportunities (illustrative) 40% Consuming cash Generating cash Example organic expansion 30% ROCI at maturity opportunity - existing market 20% Example organic expansion Time to
Slide 138: Disciplined approach to investing
Disciplined approach to investing Assessing comparative returns and risk by opportunity type Spread of Return on Capital Invested by opportunity group Various Brambles business units, FY14 – FY20F (illustrative) 40% 30% 7-year average ROCI Average 20% BVA neutral 10% Average Average 0% -10% -20% Org
Slide 139: Tom Gorman
Tom Gorman CEO 139 Brambles
Slide 140: Closing Remarks
Closing Remarks Brambles
Slide 141: Investment Market Briefing
Investment Market Briefing 15 – 17 September 2015 Pasadena, California
Slide 142: Agenda
Agenda Thursday 17 September – morning and afternoon 0730-0830 Networking breakfast Fountain Foyer/Terrace 0830-0930 Outward coach transport to site tours Meet in hotel foyer 0930-1030 Visit to IFCO service centre, Rancho Cucamonga 1030-1100 Onward transport 1100-1200 Visit to CHEP service centre, R
Slide 143: Investment Market Briefing
Investment Market Briefing 15 – 17 September 2015 Pasadena, California
Slide 144: Appendices
Appendices Brambles
Slide 145: Glossary of terms and measures
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 each period. Average Capital Investe
Slide 146: Glossary of terms and measures (continued)
Appendix 1 Glossary of terms and measures (continued) Except where noted, common terms and measures used in this document are based upon the following definitions: Constant currency/FX Current period results translated into US dollars at the actual monthly exchange rates applicable in the comparable
Slide 147: Glossary of terms and measures (continued)
Appendix 1 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 over the previous financi
Slide 148: FY15 currency mix
Appendix 2a FY15 currency mix (US$M) Total USD EUR GBP AUD CAD MXN ZAR CHF BRL Other1 Pallets 4,082 1,818 761 349 264 274 155 112 11 66 271 RPCs 918 192 426 74 80 - - 23 55 13 55 Containers 466 69 145 86 66 14 - 12 22 2 50 Sales revenue 5,465 2,079 1,332 509 410 288 155 147 88 81 376 Share 100% 38.0
Slide 149: Major currency exchange rates
Appendix 2b Major currency exchange rates1 USD exchange rate: USD EUR GBP AUD CAD MXN ZAR CHF BRL FY15 1.0000 1.1946 1.5734 0.8301 0.8505 0.0697 0.0876 1.0605 0.3748 Average FY14 1.0000 1.3587 1.6331 0.9142 0.9334 0.0765 0.0961 1.1089 0.4373 30 Jun 15 1.0000 1.1220 1.5729 0.7673 0.8056 0.0637 0.0816
Slide 150: Brambles Employee Survey results
Appendix 3 Brambles Employee Survey results 100 95 90 85 80 75 % 70 65 60 55 50 2006 2008 2009 2011 2012 2013 2014 2015 Engagement Participation High performance norm - Engagement 150
Slide 151: Our Sustainability framework
Appendix 4a Our Sustainability framework 100% certified timber 20% CO2 reduction Zero waste to landfill 3 volunteering days Supply chain collaboration available per employee projects Education Food Security Leveraging our Environmental circular pooling model projects 151
Slide 152: A sustainable impact on our customers' supply chains
Appendix 4b A sustainable impact on our customers’ supply chains
Slide 153: External recognition for our Sustainability efforts
Appendix 4c External recognition for our Sustainability efforts • Included in DJSI World Index, recognizing our Group as one of the top 10% responding companies in 2015 • DJSI’s Industry Mover Sustainability award • Included in FTSE4Good listing • Year-on-year improvement on Carbon Disclosure Projec
Slide 154: Pallets: Addressable opportunity
Appendix 5a Pallets: Addressable opportunity US$4.1B US$1.3B Notes: North America opportunity reflects Brambles’ estimate of total 48x40 pooled and recycled 38% pallet flows in the USA and Canada. Latin America opportunity reflects Brambles’ 74% 7% estimate of addressable FMCG standard-size 15%
Slide 155: Pallets: addressable opportunity
Appendix 5b Pallets: addressable opportunity Notes: US$4.8B US$0.3B US$1.1B Addressable opportunity reflects Brambles’ estimate of addressable FMCG standard-size 33% opportunity in currently served countries only. 48% The opportunity reflects an assessment of the 64% current opportunity based on t
Slide 156: IFCO RPCs: addressable opportunity
Appendix 5c IFCO RPCs: addressable opportunity US$3.7B US$1.7B US$62M Notes: Addressable opportunity: Brambles’ estimates 22% of fresh produce RPC opportunity (grocery sector only), based on recollection volumes 49% from retailers. Opportunity includes served 30% countries only and, in emerging ma
Slide 157: Investment Market Briefing
Investment Market Briefing 15 – 17 September 2015 Pasadena, California
Slide 158: 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 +61 427 791 189 158