Brambles Limited · ASX:BXB
Brambles — Investor Day (March 2012)
179 slides from Brambles's investor day presentation, Mar 20, 2012
Slide 1: Investment Market Briefing 2012 - Day one: Pallets
Investment Market Briefing 2012 Day one: Pallets Tuesday 20 March
Slide 2: Brambles
Brambles
Slide 3: Three-day overview
Agenda Three-day overview Tuesday 20 March - Pallets Wednesday 21 March - RPCs Thursday 22 March – Containers Session 1: 0830-1045 Session 1: 0800-1030 Session 1: 0830-0900 • Group Strategy Update & Pallets Overview • Overview & Strategy Update • CHEP Aerospace Solutions • EMEA & Asia-Pacific Strate
Slide 4: Currency formats
Agenda Currency formats • All currency amounts are US dollars unless stated • FX rates used are shown in footnotes 4
Slide 5: Today's agenda
Agenda Today’s agenda 0900-1030: SESSION 1 0830-0900 Group Strategy Update & Pallets Overview (Tom Gorman) EMEA & Asia-Pacific Strategy & Key Market Update 0900-0945 EMEA & Asia-Pacific Strategy & Operations Review (Dolph Westerbos) 0945-1030 Key Market Update: CHEP Western Europe (James McCarthy) 1
Slide 6: Session 1
Session 1 - Group Strategy Update & Pallets Overview - EMEA & Asia-Pacific Strategy & Operations Review - Key Market Update: CHEP Western Europe
Slide 7: Group Strategy Update & Pallets Overview
Group Strategy Update & Pallets Overview Tom Gorman, Chief Executive Officer
Slide 8: What you'll hear about this week
Group Strategy Update & Pallets Overview What you’ll hear about this week • Implementation of our diversification strategy – Geographic expansion – More products and services – New segments • Organising to deliver – Common approach – Global functions – Cost and efficiencies • The size of the prize –
Slide 9: Recap: actions to date
Group Strategy Update & Pallets Overview Recap: actions to date Strategic review Key insights Strategy launch Implementation Global Pooling • Sales concentrated on pallets/ Solutions FMCG/developed regions strategy • Opportunity to leverage scale Develop & for competitive advantage New Geo- segments
Slide 10: Strategy on a page
Group Strategy Update & Pallets Overview “Strategy on a page” Distinctive capabilities/right to play Geographic Established Customer Intellectual Network & Financial position footprint brands relationships property systems Enter Strategic sweet spot Compete Anchor customers • Common platform used by
Slide 11: Integrated supply chains
Group Strategy Update & Pallets Overview Integrated supply chains 11
Slide 12: Specialty supply chains
Group Strategy Update & Pallets Overview Specialty supply chains 12
Slide 13: Common approach to strategy
Group Strategy Update & Pallets Overview Common approach to strategy THEME ACTIONS Diversification • Enter and strengthen position in new segments • Diversify product and service portfolio • Leverage innovation and know-how across business Cost Leadership • Deliver lowest total cost solution for cus
Slide 14: Organising to deliver
Group Strategy Update & Pallets Overview Organising to deliver Business RPCs Pallets Containers segment Auto IBCs ULDs CCCs crates Customer Fresh food Consumer goods General Auto- Aero- Chem solution manufacturing motive space -ical Global expertise & solutions delivery 14
Slide 15: Product expansion progress
Group Strategy Update & Pallets Overview Product expansion progress Pooling Solutions sales revenue by segment FY10 actual FY12 forecast Medium-term potential 6% 6% 5% 10% 17% 20% 70% 77% 89% Pallets RPCs Containers Note: all data at 30 June 2011 FX rates; forecasts subject to unforeseen circumstanc
Slide 16: Compelling growth pipeline
Group Strategy Update & Pallets Overview Compelling growth pipeline Penetration and growth by segment 35 30 $18.7B 1H12 growth rate (%) 25 (1%) 20 $6.3B 15 (11%) 10 5 $9.6B (34%) 0 -5 0.5Horizon 1 Horizon 2 Horizon 3 Pallets RPCs Containers Note: Pallets data shows Brambles’ estimate of FMCG standar
Slide 17: Global Pallets
Brambles Global Pallets
Slide 18: Pallets segment structure
Group Strategy Update & Pallets Overview Pallets segment structure Segment Pallets Europe Middle East & Africa Asia-Pacific Americas Region Dolph Westerbos Peter Mackie James McCarthy CHEP Central & Eastern Europe Marianne Plumb CHEP Australia & New Zealand Arturo Cabrera CHEP Western CHEP Canada Ju
Slide 19: Pallets leadership
Group Strategy Update & Pallets Overview Pallets leadership Dolph Westerbos Peter Mackie Group President, Group President, EMEA & Asia- Americas Pacific Responsible for Responsible for global Operations global Strategic & Logistics Marketing Joined Brambles Joined Brambles 2001 2010 19
Slide 20: Pallets - Addressable opportunity by region
Group Strategy Update & Pallets Overview Pallets - Addressable opportunity by region 47% 48% 66% 11% 16% 6% 42% 36% 28% EMEA: Americas: Asia-Pacific: $4.8B $3.8B $1.0B CHEP Other poolers Unserved by poolers Note: Brambles’ estimate of addressable FMCG standard-size pallet opportunity, currently serv
Slide 21: EMEA & Asia-Pacific Strategy & Operations Review
EMEA & Asia-Pacific Strategy & Operations Review Dolph Westerbos, Group President, EMEA & Asia-Pacific
Slide 22: Overview of operations
EMEA & Asia-Pacific Strategy & Operations Review Overview of operations CHEP Western Europe Established: 1975 FY11 sales: $1,189M 1H12 growth: 1% CHEP Central & Eastern Europe Established: 2000 CHEP Australia & New Zealand FY11 sales: $46M Established: 1958 1H12 growth: 33% FY11 sales: $334M CHEP As
Slide 23: Pallets EMEA & Asia-Pacific management
EMEA & Asia-Pacific Strategy & Operations Review Pallets EMEA & Asia-Pacific Segment Pallets Europe Middle East & Africa Asia-Pacific Americas Region Dolph Westerbos Peter Mackie James McCarthy CHEP Central & Eastern Europe Marianne Plumb CHEP Australia & New Zealand Arturo Cabrera CHEP Western CHEP
Slide 24: Operational leadership team
EMEA & Asia-Pacific Strategy & Operations Review Operational leadership team Dolph Westerbos Group President, EMEA & Asia-Pacific Joined Brambles 2010 Helen Jesson CFO EMEA & Asia-Pacific Joined Brambles 2011 James McCarthy Lars Amstrup Toby Black Portrait President needed President Senior Vice Pres
Slide 25: EMEA: resilient sales revenue
EMEA & Asia-Pacific Strategy & Operations Review EMEA: resilient sales revenue 1,600 46 1,400 29 36 23 19 121 134 1,200 90 108 1H12 sales 73 Sales revenue ($M) up 3% 1,000 800 22 29 600 67 76 1,135 1,163 1,164 1,167 1,189 400 596 602 200 0 FY07 FY08 FY09 FY10 FY11 1H11 1H12 Western Europe Middle Eas
Slide 26: EMEA: margin pressure
EMEA & Asia-Pacific Strategy & Operations Review EMEA: margin pressure 1H12 profit 350 30 down 8% 300 25 Underlying profit ($M) 250 20 Margin (%) 200 15 150 317 301 301 312 285 10 100 156 144 50 5 0 0 FY07 FY08 FY09 FY10 FY11 1H11 1H12 Underlying profit Margin ROCI Note: all data shown at 30 June 20
Slide 27: Asia-Pacific: solid growth trend
EMEA & Asia-Pacific Strategy & Operations Review Asia-Pacific: solid growth trend 400 29 20 350 10 15 7 1H12 sales 300 up 7% Sales revenue ($M) 250 200 13 20 317 325 326 334 150 296 100 168 173 50 0 FY07 FY08 FY09 FY10 FY11 1H11 1H12 Australia & New Zealand Asia Note: all data shown at 30 June 2011
Slide 28: Asia-Pacific: stable margins
EMEA & Asia-Pacific Strategy & Operations Review Asia-Pacific: stable margins 90 30 1H12 profit 80 up 8% 25 70 Underlying profit ($M) 60 20 Margin (%) 50 15 40 82 80 75 73 78 30 10 20 37 35 5 10 0 0 FY07 FY08 FY09 FY10 FY11 1H11 1H12 Underlying profit Margin ROCI Note: all data shown at 30 June 2011
Slide 29: Key focus areas
EMEA & Asia-Pacific Strategy & Operations Review Key focus areas Driver Response Western Europe cost pressures Focus on delivery of cost-outs & efficiencies Euro-zone economic Detailed scenario analysis & mitigation planning uncertainty Differing growth opportunities Focused strategies for developme
Slide 30: Western Europe cost pressures: recap of measures to address cost
EMEA & Asia-Pacific Strategy & Operations Review Western Europe cost pressures: recap of measures to address cost 1H12 challenge & impact Actions High general inflation, fuel and $14M • Increased plant and logistics lumber costs efficiencies identified • Improved pricing to start to flow through in
Slide 31: EMEA cost pressures: actions to improve margins
EMEA & Asia-Pacific Strategy & Operations Review EMEA cost pressures: actions to improve margins • 2-3 percentage point Underlying CHEP Europe indirect headcount profit margin improvement planned by 800 end FY14 750 • Cost reductions 700 – Global Pallets efficiencies as communicated – Continued over
Slide 32: Differing growth opportunities by region: strong and diverse portfolio
EMEA & Asia-Pacific Strategy & Operations Review Differing growth opportunities by region: strong and diverse portfolio 16% 29% 13% 60% 18% 94% 80% 7% 71% 53% 33% 12% 2% 8% 4% Western Europe: CEE: MEA: ANZ: Asia: $3.6B $1.1B $0.2B $0.6B $0.4B CHEP Other poolers Unserved by poolers Note: Brambles’ es
Slide 33: Differing growth opportunities by region: go-to-market approach
EMEA & Asia-Pacific Strategy & Operations Review Differing growth opportunities by region: go-to-market approach Customer Business Unit Go-to-market approach Western Europe • Continued conversion of white wood exchange users • Differentiation: new product & service offerings Central & Eastern Europe
Slide 34: Influence of retailers and logistics providers: deepening industry engagement
EMEA & Asia-Pacific Strategy & Operations Review Influence of retailers and logistics providers: deepening industry engagement Engagement with… Key activities Industry • Asian Advisory Board • Quarterly customer advisory panels in Europe Retailer • Last Mile Solutions Logistics service • Managed Exc
Slide 35: Emerging markets development: penetration and growth outlook
EMEA & Asia-Pacific Strategy & Operations Review Emerging markets development: penetration and growth outlook 80 70 1H12 growth rate (%) 60 $0.4B 50 (8%) 40 $1.1B 30 (4%) 20 $1.1B $0.2B (21%) 10 (71%) 0 -10 Horizon 1 Horizon 2 Horizon 3 Middle East & Central & Latin America Asia Africa Eastern Europ
Slide 36: Emerging markets development: sales revenue update
EMEA & Asia-Pacific Strategy & Operations Review Emerging markets development: sales revenue update FY11 Pallets pro forma sales revenue CEE • 12% of FY11 pro forma Pallets sales MEA 1% Asia 4% revenue 1% • Expect to continue four-year LatAm 6% compound annual growth rate of ANZ USA 31% 15% plus in
Slide 37: Emerging markets development: role of the Council
EMEA & Asia-Pacific Strategy & Operations Review Emerging markets development: role of the Council • Emerging Markets Council formed October 2011 – Enables global comparison of emerging region opportunities when allocating capital – Sharing of best practice and learnings – Tailored approach to provi
Slide 38: Strategic agenda
EMEA & Asia-Pacific Strategy & Operations Review Strategic agenda Diversification Cost leadership Go to market Middle East, Asia & Central & Europe margin improvement Key Accounts structure Eastern Europe expansion plan Product diversification in Euro-zone uncertainty Commercial Excellence establish
Slide 39: Key Market Update: CHEP Western Europe
Key Market Update: CHEP Western Europe James McCarthy, President, CHEP Western Europe
Slide 40: Western Europe overview
Key Market Update: CHEP Western Europe Western Europe overview European Key Accounts UK & Ireland Jochen Behr Joined Brambles 2008 Howard Wigham Joined Brambles 1999 Mid Europe CHEP entry: 1975 Christophe Loiseau FY11 sales: $352M Joined Brambles 2003 1H12 growth: 1% CHEP entry: 1978 FY11 sales: $36
Slide 41: European economic outlook
Key Market Update: CHEP Western Europe European economic outlook Annual retail sales volumes, deflated Unemployment (%) 120 25 110 20 15 100 10 90 5 80 0 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 2008 2009 2010 2011 '09 '09 '09 '09 '10 '10 '10 '10 '11 '11 '11 '11 UK Spain France Germany Italy
Slide 42: Inflation: fuel and lumber costs
Key Market Update: CHEP Western Europe Inflation: fuel and lumber costs European average costs 2.000 170.0 1.950 1.900 165.0 Timber (€/square metre) 1.850 160.0 Diesel (€/litre) 1.800 Impact on 1H12 result 1.750 • 15% increase in fuel $7M 155.0 1.700 • 7% increase in timber $3M 1.650 150.0 1.600 1.5
Slide 43: Western Europe: flat sales revenue
Key Market Update: CHEP Western Europe Western Europe: flat sales revenue 1400 1200 181 180 183 180 182 1000 Sales revenue ($M) 1H12 sales 315 313 303 291 up 1% 800 313 600 366 88 88 314 331 331 344 148 142 400 183 194 200 326 336 340 337 352 177 178 0 FY07 FY08 FY09 FY10 FY11 1H11 1H12 UK & Ireland
Slide 44: Key focus areas
Key Market Update: CHEP Western Europe Key focus areas Driver Response Western Europe cost pressures • Logistics & plant costs efficiencies • Overhead management and reduction Euro-zone economic • Value at risk analysis uncertainty • Mitigating operating actions Asset management, quality • Quality i
Slide 45: Western Europe cost pressures: details of key actions
Key Market Update: CHEP Western Europe Western Europe cost pressures: details of key actions Key categories 2H12 impact FY13 onwards Plant costs • Productivity investments • Network optimisation • Timber recovery • Repair automation Logistics costs • Accelerate LeanLogistics, • Network optimisation
Slide 46: Western Europe cost pressures: LeanLogistics TMS implementation
Key Market Update: CHEP Western Europe Western Europe cost pressures: LeanLogistics TMS implementation Key business needs TMS solution Results • Eliminate manual interface • Integrated web portal and • Fully-automated tendering with carriers electronic data interchange system • Streamline tariff for
Slide 47: Western Europe cost pressures: plant operations savings
Key Market Update: CHEP Western Europe Western Europe cost pressures: plant operations savings Productivity increases with new/upgraded layouts and automation. Specialised CHEP timber reclaim bench/bandsaw CHEP benefits • 2H12 savings $1.5M over prior corresponding period 47
Slide 48: Euro-zone economic uncertainty: limited exposure
Key Market Update: CHEP Western Europe Euro-zone economic uncertainty: limited exposure Greece* Ireland Portugal Italy Spain FY11 sales revenue share relative to 0.7% 1.3% 3.0% 7.0% 21.5% CHEP Western Europe Headcount in country 17 44 33 69 351 Service centres (CHEP) - 1 - - 1 Service centres (third
Slide 49: Euro-zone economic uncertainty: operating response
Key Market Update: CHEP Western Europe Euro-zone economic uncertainty: operating response Risk factor Short-term action Medium-term action • Debt collection and • Collection activities enhanced: • Financing structure to minimise cash management more timely dunning and cash impact of default sweeping
Slide 50: Asset management, quality and control: incremental quality spending
Key Market Update: CHEP Western Europe Asset management, quality and control: incremental increase in quality spending, EMEA 25 $M, 30 June 2011 FX rates 20 15 10 5 26% 27% 28% 29% 0 FY09 FY10 FY11 FY12F Additional spend vs. prior Plant cost ratio year Preparatory Repair plants Consolidation, Rollou
Slide 51: Asset management, quality and control: pallet centralisation
Key Market Update: CHEP Western Europe Asset management, quality and control: pallet centralisation Before: dispersed pallet ownership After: central pallet ownership B A Central A C Co B (Belgium) C D Rental and withholding tax Pallet transfer Provides collection and/or repair service Pays inter-po
Slide 52: Diversification of service offering: Managed Exchange
Key Market Update: CHEP Western Europe Diversification of service offering: Managed Exchange 52
Slide 53: Diversification of service offering: Managed Exchange case study
Key Market Update: CHEP Western Europe Diversification of service offering: Managed Exchange case study Customer benefits Number of players/partners • Flexibility to choose appropriate service • Simplicity/reduced administration • Certainty of supply • Transport optimisation • Increased choice of pi
Slide 54: Diversification of service offering: new industry solutions
Key Market Update: CHEP Western Europe Diversification of service offering: new industry solutions Coruña Meco Zaragoza Spain production • Inditex (Zara etc) 250ki 100ki 200ki – World’s leading fashion retailer – Produces 70% in Spain – Three national distribution centres Logistics providers • One o
Slide 55: Expansion in under-penetrated regions: Mid Europe addressable opportunity
Key Market Update: CHEP Western Europe Expansion in under-penetrated regions: Mid Europe addressable opportunity 58% 83% 83% 87% 92% 9% 33% 17% 17% 13% 8% Benelux: Germany: Italy: Swi/Aut: Nordics: $0.3B $0.8B $0.5B $0.1B $0.2B CHEP Other pooler Unserved by poolers Note: Brambles’ estimate of addres
Slide 56: Expansion in under-penetrated regions: CHEP Italy retail advocacy
Key Market Update: CHEP Western Europe Expansion in under-penetrated regions: CHEP Italy retail advocacy • Benefits to retailers & 100 90 manufacturers 95 Retailer acceptance (%) 90 80 – Consistent quality 85 – Broad distribution 70 $M 80 – Security of supply 75 – Lower cost 60 70 – Sustainability 6
Slide 57: Strategic context
Key Market Update: CHEP Western Europe Strategic context Diversification Cost leadership Go to market Middle East, Asia & Central & Europe margin improvement Key Accounts structure Eastern Europe expansion plan Product diversification in Euro-zone uncertainty Commercial Excellence established market
Slide 58: Brambles
Brambles
Slide 59: Investment Market Briefing
Investment Market Briefing 2012 Day one: Pallets Tuesday 20 March
Slide 60: Session 2: Emerging Markets Strategy & Operations Review
Session 2 Emerging Markets Strategy & Operations Review
Slide 61: Deep Dive: CHEP Central & Eastern Europe
Deep Dive: CHEP Central & Eastern Europe Rod Francis, President, CHEP Central & Eastern Europe
Slide 62: Overview of operations
Deep Dive: CHEP Central & Eastern Europe Overview of operations Key CHEP office Strong and profitable established base in Poland Profitable established operations in other parts of Central Europe Turkey operations growing strongly toward profitability Warsaw Greece operations relatively resilient Pr
Slide 63: Central & Eastern Europe: strong sales revenue growth
Deep Dive: CHEP Central & Eastern Europe Central & Eastern Europe: strong sales revenue growth 50 45 5 1H12 growth 40 32% 8 35 Sales revenue ($M) 9 30 11 4 25 9 2 9 4 20 8 4 8 7 15 7 5 10 7 22 6 18 12 14 5 11 6 8 0 FY07 FY08 FY09 FY10 FY11 1H11 1H12 Poland Other Central Europe Greece Turkey Note: al
Slide 64: Market attractiveness
Deep Dive: CHEP Central & Eastern Europe Relative attractiveness of opportunities Hungary, Czech Poland Republic & Solvakia CHEP present CHEP entering Greece Turkey Currently out of scope Russia Romania & Market attractiveness Bulgaria, Baltics, Balkans Ukraine Ability to win Note: circles reflect B
Slide 65: Key focus areas
Deep Dive: CHEP Central & Eastern Europe Key focus areas Driver Strategic response Increased key account customer & Work with customers to develop sizeable pallet retailer presence pooling opportunity Modernisation of supply chain Geographic expansion into seven countries infrastructure throughout r
Slide 66: Winning proposition
Deep Dive: CHEP Central & Eastern Europe Winning proposition Customer need Our advantage Shareholder value • Minimise in-plant • Pan-European • Strengthen complexity/ coverage incumbent number of • Efficiencies to positions with key platforms whole supply chain customers • Achieve uniform through ne
Slide 67: Total addressable opportunity: $1B-plus
Deep Dive: CHEP Central & Eastern Europe Total addressable opportunity: $1B-plus 85% 88% 91% 99% 5% 5% 10% 7% 9% 1% Poland: Other Central Greece: Turkey: Romania & Baltics: $200M Europe: $90M $360M Bulgaria: $25M Balkans: $150M $160M $80M CHEP Other pooler Unserved by poolers Note: Brambles’ estimat
Slide 68: Customer partnership in new regions
Deep Dive: CHEP Central & Eastern Europe Customer partnership in new regions • Voice of customer Seven new – Want to use single pallet platform countries: specific pallet – Want to benefit from the use of CHEP collection services in their whole European arrangements distribution chain facilitated by
Slide 69: Risk management in new regions
Deep Dive: CHEP Central & Eastern Europe Risk management in new regions • Hub and spoke management Market entry structure • Leverage existing operational experience People capability • Proven market entry template and processes • Assets transferrable between Business environment countries; ability t
Slide 70: Turkey case study
Deep Dive: CHEP Central & Eastern Europe Turkey case study Office startup hiring, training customer visits Jul ‘09 Mar ‘10 Jul ‘10 Oct ‘10 Feb ‘11 Mar ‘11 Apr ‘11 Nov/Dec ‘11 • Annual run rate of 2.8M issues and $11.5M sales revenue from 50 customers • Collecting pallets from 1,500-plus modern and t
Slide 71: Strategic agenda
Deep Dive: CHEP Central & Eastern Europe Strategic agenda Diversification Cost leadership Go to market Middle East, Asia & Central & Europe margin improvement Key Accounts structure Eastern Europe expansion plan Product diversification in Euro-zone uncertainty Commercial Excellence established marke
Slide 72: Deep Dive: CHEP Middle East & Africa
Deep Dive: CHEP Middle East & Africa Jurie Welman, President, CHEP Middle East & Africa
Slide 73: Overview of operations
Deep Dive: CHEP Middle East & Africa Overview of operations Dubai Strongly profitable, diversified business in Southern Africa Middle East: strong sales growth in FMCG with opportunities in Containers North African countries present opportunity but currently out of scope Johannesburg Durban Cape Tow
Slide 74: CHEP MEA: strong and stable growth
Deep Dive: CHEP Middle East & Africa CHEP MEA: strong and stable growth Sales revenue trend FY11 sales revenue by segment 200 180 7 8% 160 6 1H12 15% 140 Sales revenue ($M) 5 growth 120 2 15% 1 100 4 3 80 166 142 128 60 112 95 77% 91 40 80 20 0 FY07 FY08 FY09 FY10 FY11 1H11 1H12 Pallets RPCs Contain
Slide 75: Economic context
Deep Dive: CHEP Middle East & Africa Economic context World Bank Forecasted Population Retail sector Country ease of doing growth rate (M) ($B) business (%) South Africa 50.5 82.8 32.0 5.7 Saudi Arabia 26.2 76.9 12.0 6.7 UAE 8.3 22.3 37.0 2.6 Egypt 78.8 55.0 99.0 (2.3) Algeria 35.4 15.3 136.0 3.3 Mo
Slide 76: Winning proposition
Deep Dive: CHEP Middle East & Africa Winning proposition Customer need Our advantage Shareholder value • Value • Ability to deliver • Strong customer • Quality (including safety) lowest total cost relationships allow solution high retention • Availability & reliability of supply across customer • Sc
Slide 77: Key focus areas
Deep Dive: CHEP Middle East & Africa Key focus areas Driver Strategic response Supply chain modernisation & Continued measured Middle East expansion; watching economic growth in Middle brief on North Africa East & North Africa Relative maturity of South Diversification by product & segment African p
Slide 78: Market attractiveness
Deep Dive: CHEP Middle East & Africa Relative attractiveness of opportunities South Africa CHEP established UAE CHEP developing Morocco Currently out of Market attractiveness scope Egypt Saudi Arabia Algeria Ability to win Note: circles reflect Brambles’ estimate of addressable FMCG standard-size pa
Slide 79: Middle East supply chain realities
Deep Dive: CHEP Middle East & Africa Middle East supply chain realities Double handling Vehicle utilisation White wood quality/safety Product damage Warehouse utilisation Hand-loading of trucks 79
Slide 80: Middle East implementation strategy
Deep Dive: CHEP Middle East & Africa Middle East implementation strategy Standardisation of platforms critical for effective pooling Retailer acceptance & education Reference site at leading supply chain Facilitated visits Working with Retail advocacy operator for retailers to leading warehouse Euro
Slide 81: Case study: major Middle East retailer
Deep Dive: CHEP Middle East & Africa Case study: major Middle East retailer Warehouse productivity improvement after adopting CHEP 150 Picking (pallets/man hour) 1500 Receiving rate (cases/man hour) 100 1000 120 140 50 85 500 1,100 750 450 0 0 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 800 Transport
Slide 82: South Africa: RPC growth opportunities
Deep Dive: CHEP Middle East & Africa South Africa: RPC growth opportunities RPC opportunity by sector ($M) • Largest growth opportunity for CHEP South Africa • Near-term Fresh, 28 – Create national RPC pool for all major retailers in fresh produce 14 Dairy, 40 – Expand offering to other retail categ
Slide 83: Beverage supply chain integration
Deep Dive: CHEP Middle East & Africa Beverage supply chain integration Inbound Packaging Raw material Finished goods Glass Cans supply Closures Sugar Water Syrups chain Labels Stretch & Shrink Other soft drinks Bottlers Bottler 1 Bottler 2 Bottler 3 Bottler 4 Outbound Small Pubs & supply Retail Whol
Slide 84: Strategic agenda
Deep Dive: CHEP Middle East & Africa Strategic agenda Diversification Cost leadership Go to market Middle East, Asia & Central & Europe margin improvement Key Accounts structure Eastern Europe expansion plan Product diversification in Euro-zone uncertainty Commercial Excellence established markets m
Slide 85: Deep Dive: CHEP China
Deep Dive: CHEP China John Wan, President, CHEP China
Slide 86: Overview of operations
Deep Dive: CHEP China Overview of operations Four key regions Beijing sales office based on city hubs Shanghai Wuhan HQ sales office Guangzhou sales office 86
Slide 87: CHEP China: strong growth
Deep Dive: CHEP China CHEP China: strong growth Sales revenue trend ($M) FY11 sales revenue by service 25 20 1H12 growth 28% 33% 15 23 67% 10 14 14 5 11 8 <1 3 0 FY07 FY08 FY09 FY10 FY11 1H11 1H12 Pallets Containers Note: CHEP China includes sales revenue reported through Pallets and Containers segm
Slide 88: CHEP China history
Deep Dive: CHEP China CHEP China history Won First FMCG Won Nestlé and Won Won P&G customer: Tsingtao Beer Danone Coca-Cola Won Won Chang’an Ford Mazda Tesco 2006 2008 2010 2012 Entered China: Office in Beijing Office in office in Shanghai Guangzhou Office in Wuhan 88
Slide 89: Economic context
Deep Dive: CHEP China Economic context Population Retail GDP growth GDP per person Unemployment City revenue (M) (%) (k$) (%) (B$) Shanghai 23 8.2 12.8 4.2 105 Beijing 20 8.1 12.5 1.6 107 Guangdong 104 12.7 7.8 2.6 313 Hubei 57 13.8 5.3 4.3 123 Sichuan 80 15.0 4.1 4.2 121 Chongqing 29 16.5 5.4 3.8 5
Slide 90: Winning proposition
Deep Dive: CHEP China Winning proposition Customer need Our advantage Shareholder value • Labour costs rising • Multi-national & • Forecast to be local relationships profitable • Government’s 12th as of FY13 5-year plan • Scale of network prioritises supply & asset pool • Dynamic pooling chain effic
Slide 91: Key focus areas
Deep Dive: CHEP China Key focus areas Driver Strategic response Lack of logistics equipment • Work with government authorities and industry associations to standardisation establish and promote equipment standards Manufacturers and retailers moving • Further geographic expansion to the west followin
Slide 92: China supply chain realities
Deep Dive: CHEP China China supply chain realities Lack of truck standardisation Overloading Hand-loading of trucks Long turnaround times 92
Slide 93: Actions to drive palletised flows
Deep Dive: CHEP China Actions to drive palletised flows Challenges to overcome Actions and progress • Prevalence of truck over-loading and • P&G to Walmart lane and Nestlé to Tesco hand-loading & Lotus lanes as ongoing industry showcases • Many order sizes still not enough for pallet loads • Wu-Mart
Slide 94: Working with major retailers and their suppliers
Deep Dive: CHEP China Working with major retailers and their suppliers Key event Participants Lotus palletised delivery forum Lotus and its top 50 vendors, CHEP Tesco palletised delivery forum Tesco and its top 50 vendors, CHEP Wu-Mart supply chain forum Wu-Mart and its top 30 vendors, CHEP Pichaiyu
Slide 95: Ongoing showcase: P&G and Walmart
Deep Dive: CHEP China Ongoing showcase: P&G and Walmart • One day (30%) lead time reduction in entire supply chain • 80% time reduction on loading and unloading (30 minutes vs. five hours) • 220% distribution centre throughput improvement • 60% truck turnaround time improvement • Zero incremental co
Slide 96: Government and industry engagement
Deep Dive: CHEP China Government and industry engagement Five government authorities 50+ logistics 1,000+ manufacturers 100+ retailers service providers 10+ industry associations • Numerous stakeholders engaged • Participants starting to understand total supply chain cost issues • Live showcases wit
Slide 97: Asian Advisory Board
Deep Dive: CHEP China Asian Advisory Board Jerry Hsu CEO Express Asia Pacific, Deutsche Post DHL Drina Yue Senior Vice President Asia Pacific, Western Union Frank Wong President Asia Pacific, Scholastic • Decades of experience working for multinational corporations in Asia • Meets every quarter • Pr
Slide 98: Strategic agenda
Deep Dive: CHEP China Strategic agenda Diversification Cost leadership Go to market Middle East, Asia & Central & Europe margin improvement Key Accounts structure Eastern Europe expansion plan Product diversification in Euro-zone uncertainty Commercial Excellence established markets mitigation progr
Slide 99: Brambles
Brambles
Slide 100: Investment Market Briefing
Investment Market Briefing 2012 Day one: Pallets Tuesday 20 March
Slide 101: Session 3: Americas Strategy & Operations Review
Session 3 - Americas Strategy & Operations Review - Key Market Update: CHEP USA - IFCO Pallet Management Services Overview
Slide 102: Americas Strategy & Operations Review
Americas Strategy & Operations Review Peter Mackie, Group President, Americas & Global Supply Chain
Slide 103: Overview of operations
Americas Strategy & Operations Review Overview of operations IFCO Pallet CHEP Canada Management Services Established: 1980 Acquired: 2011 FY11 sales: $233M FY11 sales: $335M 1H12 growth: 6% 1H12 growth: 9%* CHEP Latin America CHEP USA Established: 1994 Established: 1990 FY11 sales: $220M FY11 sales:
Slide 104: Pallets segment structure
Americas Strategy & Operations Review Pallets segment structure Segment Pallets Europe Middle East & Africa Asia-Pacific Americas Region Dolph Westerbos Peter Mackie James McCarthy CHEP Central & Eastern Europe Marianne Plumb CHEP Australia & New Zealand Arturo Cabrera CHEP Western CHEP Canada Jurie
Slide 105: Operational leadership team
Americas Strategy & Operations Review Operational leadership team Peter Mackie Group President Americas Joined Brambles 2001 Scott Spivey CFO Americas Joined Brambles 2008 Kim Rumph Marianne Plumb Carmelo Alonso President President Senior Vice President CHEP USA CHEP Canada Operations Joined Bramble
Slide 106: Americas: improving sales growth
Americas Strategy & Operations Review Americas: improving sales growth 2,000 3 13 17 14 1,500 161 181 220 1H12 growth 6% 192 Sales revenue ($M) 143 208 215 233 187 221 8 9 1,000 104 123 118 124 159 173 1,091 1,157 1,157 1,095 1,110 500 553 571 0 FY07 FY08 FY09 FY10 FY11 1H11 1H12 USA PMS Canada Lati
Slide 107: Americas: continued margin recovery
Americas Strategy & Operations Review Americas: continued margin recovery 500 35 450 30 400 1H12 profit Underlying profit ($M) 350 up 23% 25 300 Margin (%) 20 250 466 418 440 15 200 150 274 10 236 100 135 165 5 50 0 0 FY07 FY08 FY09 FY10 FY11 1H11 1H12 Underlying profit Margin excluding PMS ROCI Not
Slide 108: Improved margin performance
Americas Strategy & Operations Review Improved margin performance Underlying profit margin 21% 17% 18% 14% 15% 16% FY10 FY11 FY12F Pallets - Americas Pallets - Americas (ex. PMS) • Further 2 percentage point improvement expected in FY13 – Continued year-over-year Better Everyday efficiencies for CHE
Slide 109: Improving loss, cycle time and damage
Americas Strategy & Operations Review Improving loss, cycle time and damage Retailer Simple pooling “Grey” model pooling Manufacturer circuit CHEP 109
Slide 110: Improving loss, total cycle time & damage
Americas Strategy & Operations Review Improving loss, total cycle time & damage • Built detailed numeric approximation model of total pool flows • Piloting targeted improvement projects • Made improvements to current asset management activity – Appointed experienced Vice President with asset managem
Slide 111: Pooling competition reality
Americas Strategy & Operations Review Pooling competition reality Retailer Simple pooling “Grey” model pooling Manufacturer circuit Pooler XYZ 111
Slide 112: Key strategic growth initiatives
Americas Strategy & Operations Review Key strategic growth initiatives Driver Response Opportunity to expand core USA operations Leverage quality, service & go-to-market amid improving economic & competitive improvements to drive continued conditions penetration Increasing customer interest in addit
Slide 113: Strategic pricing initiatives
Americas Strategy & Operations Review Strategic pricing initiatives • New value creation initiatives – Example: leverage heat treat capability • Pricing structured to reflect cost to serve – Joint efficiency actions focused on value – Clarity of pipeline quality and business wins • Improvements to c
Slide 114: Americas: addressable pooling opportunity
Americas Strategy & Operations Review Americas: addressable pooling opportunity 27% 37% 14% 76% 15% 61% 48% 3% 21% USA: Latin Canada: $2.3B America: $0.4B $1.1B CHEP Other pooler Unserved by poolers Note: Brambles’ estimate of addressable FMCG standard-size pallet opportunity, currently served count
Slide 115: Canada update
Americas Strategy & Operations Review Canada update • Continue current sale pipeline progress – Converting existing core white space – Promotional pallet growth • Build go to market portfolio plan – Pooling/Canadian Pallet Council services/white wood – Block pallet and exchange solutions – Managed s
Slide 116: Latin America growth opportunity
Americas Strategy & Operations Review Latin America growth opportunity CHEP penetration by country CHEP penetration by segment 9% 25% 8% 20% 7% 6% 15% 5% 4% 10% 3% 2% 5% 1% 0% 0% Mexcio Chile Argetina Brazil Other Non-food Beverage Food Secondary Industrial FY10 FY11 FY10 FY11 Note: Brambles’ Decemb
Slide 117: Latin America growth strategy
Americas Strategy & Operations Review Latin America growth strategy Mexico City: 21.2M people • Detailed country and segment fact- base completed December 2011 – All countries – 32 sub sectors Rio de Janeiro: 12.4M people • Sector interviews and sales tests Sao Paolo: completed 19.9M people • Three
Slide 118: Strategic agenda
Americas Strategy & Operations Review Strategic agenda Diversification Cost leadership Go to market Americas growth across core Target step change Lead role in FMCG industry white space for CHEP, PMS & improvement in asset forums Paramount management Work with FMCG industry to Delivery of all integr
Slide 119: Key Market Update: CHEP USA
Key Market Update: CHEP USA Kim Rumph, President, CHEP USA
Slide 120: Business improvement journey
Key Market Update: CHEP USA Business improvement journey Increased PepsiCo Fact base & focus on returns CHEP USA pricing strategic radar strategic ConAgra strategy review returns 2009 2010 2011 2012 Acquisition of Expansion of retail IFCO Pallet sales & asset Better Everyday Launch Net Management co
Slide 121: USA: return to sales growth
Key Market Update: CHEP USA USA: return to sales growth 1,200 1,000 1,157 1,157 1,095 1H12 growth 3% Sales revenue ($M) 1,091 1,110 800 600 400 553 571 200 0 FY07 FY08 FY09 FY10 FY11 1H11 1H12 121
Slide 122: Key strategic initiatives
Key Market Update: CHEP USA Key strategic initiatives Driver Strategic response Customer requirement for new • Retailer engagement on products & services value creation • Launch of CHEP Strategic Leadership Forum Continuous requirement to • CHEP/PMS supply chain integration deliver efficiencies • 18
Slide 123: Delivering value through strategic engagement with customers
Key Market Update: CHEP USA Delivering Brambles value through strategic engagement with our customers Listen Engage Deliver CHEP Strategic Leadership End-to-end supply chain Forum Customer collaboration reviews • Collaboration on Forum for senior level transport, logistics & supply-chain leaders to
Slide 124: Delivering value through cost-to-serve analysis
Key Market Update: CHEP USA Delivering value through cost-to-serve analysis Example based on customer with high out-of-network issues Before After • High cost for customer • Lowest system cost for customer • High asset control risk • Optimal asset control risk • Negative BVA ($300,000) • Positive BV
Slide 125: SME expansion update
Key Market Update: CHEP USA SME expansion update More than 3,000 contracts won with SMEs in FY10, FY11 and 1H12 SME (<100k issues) Forward approach was a growth Continue to focus on Gross margin is opportunity with SME as channel for strong & sales and good margins, in administration profitable sale
Slide 126: A rigorous focus on asset utilisation
Key Market Update: CHEP USA A rigorous focus on asset utilisation Work with retailers to deliver mutually 1. Strengthen engagement with beneficial programs to: existing distributors • Reduce loss 2. Enhance asset collection & recovery • Increase cycle time 3. Convert non-participating • Reduce damag
Slide 127: Asset management projects
Key Market Update: CHEP USA Asset management: 18 projects Immediate actions Experiments Intermediate actions Retailers • Incentive impact review • Expand service centre • End to end studies with • Metrics & scorecards hours for customer Costco & Kroger • Advocacy for growth returns Collection • Recy
Slide 128: Case study: enhancing asset returns
Key Market Update: CHEP USA Case study: enhancing asset returns Experiment Result • Expand CHEP collection locations to facilitate • Initial trial in Chicago resulted in a 264% easier return of assets increase in asset returns • Minimise restrictions on size of • 11 new recyclers in this region now
Slide 129: Strategic agenda
Key Market Update: CHEP USA Strategic agenda Diversification Cost leadership Go to market Americas growth across core Target step change Lead role in FMCG industry white space for CHEP, PMS & improvement in asset forums Paramount management Work with FMCG industry to Delivery of all integration Cons
Slide 130: IFCO Pallet Management Services Overview
IFCO Pallet Management Services Overview Dave Russell, President, IFCO Pallet Management Services
Slide 131: Our history
IFCO Pallet Management Services Overview Our history ICE events disrupt Brambles IFCO Systems created operations acquires IFCO from PalEx/IFCO merger 1996 1998 2000 2002 2004 2006 2008 2010 2012 PalEx formation & IPO; significant M&A activity Operational roll- of regional players out of synergy oppo
Slide 132: PMS product flow
IFCO Pallet Management Services Overview PMS product flow PMS facility PMS facility Unusable material (converted to other by-products) Retail distribution Manufacturer/ centre grower/shipper Cores Loaded pallets Ready-to-go pallets 132
Slide 133: Products and services
IFCO Pallet Management Services Overview Products and services Category Description Grocery • Most common US pallet footprint (48” by 40”) Manufacturers’ • Two main quality grades (A & B) Association (GMA) • Used as primary platform for many industries pallet sales Other pallet sales • Remanufacture
Slide 134: Historic sales trend
IFCO Pallet Management Services Overview Historic sales trend Pro forma sales revenue ($M) FY11 pro forma sales revenue by category 400 6% 350 13% 1H12 300 sales 250 up 9% 9% 200 379 347 352 336 335 150 72% 100 173 159 50 0 GMA pallet sales Other pallet sales FY07 FY08 FY09 FY10 FY11 1H11 1H12 Servi
Slide 135: Underlying profit trend
IFCO Pallet Management Services Overview Underlying profit trend 30 1H12 8% profit up 43% 7% 25 6% 20 5% 15 4% $M 25 23 3% 10 19 19 2% 5 10 7 1% 0 0% FY08 FY09 FY10 FY11 1H11 1H12 Underlying profit Underlying profit margin Note: Underlying profit from FY08 to FY11 is based on IFCO published figures
Slide 136: Low capital relative to profit
IFCO Pallet Management Services Overview Low capital relative to profit Category $M (avg. FY11) Category $M (FY11) Current operating assets 52 Sales revenue 335 Property, plant & equipment 20 Cost of goods sold (284) Total operating assets 72 Gross margin 51 Operating liabilities (59) Overheads & ot
Slide 137: PMS plant network coverage
IFCO Pallet Management Services Overview PMS plant network coverage Network • 43 full-service recycling facilities • 64 WLMS facilities • 125 third-party recycler affiliates Assets • More than 2,800 employees • Transportation fleet of more than 5,000 • Handling 200M-plus pallets annually 137
Slide 138: PMS in context of USA pallet opportunity
IFCO Pallet Management Services Overview PMS in context of USA pallet opportunity Other Over 3,000 local operators Positioning & customer value proposition recyclers • Integrated nationwide plant network • Single-source supplier & account management CHEP, PECO & IGPS • Centralised pallet activity re
Slide 139: Case study: United States Postal Service
IFCO Pallet Management Services Overview Case study: United States Postal Service • Customer was shipping almost exclusively on owned pool of plastic pallets • IFCO PMS national network ideally placed as solution: – High volume, short lead times – Heavily centralised locations • Potential for long-t
Slide 140: Optimising reverse logistics
IFCO Pallet Management Services Overview Optimising reverse logistics Distribution centres crucial to each supply Optimising flow throughout the supply chain chain component Poolers PMS facility PMS facility Poolers Manufacturer/ Manufacturer/ Retail Retail store grower/shipper grower/shipper store
Slide 141: Integration approach
IFCO Pallet Management Services Overview Integration approach Commercial Supply chain Back office • IFCO PMS & CHEP USA • Plant network • Consolidation of certain remain separate entities optimisation: lower back-office functions • Sales teams collaborate transport & fixed costs and processes to dri
Slide 142: Key strategic initiatives
IFCO Pallet Management Services Overview Key strategic initiatives Driver Key actions Changing competitive • Expand WLMS & reverse logistics landscape: national • Leverage PMS/CHEP network & capabilities affiliates/brokers, third-party • Expand geographic footprint logistics service providers Changi
Slide 143: Strategic agenda
IFCO Pallet Management Services Overview Strategic agenda Diversification Cost leadership Go to market Americas growth across core Target step change Lead role in FMCG industry white space for CHEP, PMS & improvement in asset forums Paramount management Work with FMCG industry to Delivery of all int
Slide 144: Brambles
Brambles
Slide 145: Investment Market Briefing
Investment Market Briefing 2012 Day one: Pallets Tuesday 20 March
Slide 146: Session 4: Organising to Deliver Globally
Session 4 - Organising to Deliver Globally
Slide 147: Introduction
Introduction Tom Gorman, CEO
Slide 148: Global Functions Leadership
Introduction Global Functions Leadership Toby Black Carmelo Alonso Dan Dershem Senior Vice Senior Vice Senior Vice President, President, President, Strategic Operations Logistics Marketing Joined Brambles Joined Brambles Joined Brambles 1992 2008 2004 148
Slide 149: Strategic Marketing
Strategic Marketing Toby Black, Senior Vice President, Strategic Marketing
Slide 150: Holistic, process-driven approach to strategy execution
Strategic Marketing Holistic, process-driven approach to strategy execution Above the funnel Market strategy • New markets & geographic expansion • New products & services • Business model improvement In the funnel Marketing • Brand revitalisation • Segmentation • Lead generation Customer solutionin
Slide 151: Strategic Marketing: an enablement engine for profitable growth
Strategic Marketing Strategic Marketing: an enablement engine for profitable growth Example before Now with global structure • Individual product & service offerings • Coordinated implementation of profitable service by country & product models: i.e. Managed Exchange Diversification • Emerging marke
Slide 152: Market strategy: Managed Exchange rollout
Strategic Marketing Market strategy: Managed Exchange rollout Customer benefits • Flexibility to choose service to match specific customer needs • Cost reduction: simplicity, reduced administration; Traditional Exchange Managed Exchange transport optimisation Manufacturer Manufacturer Retailer CHEP
Slide 153: Market strategy: Managed Exchange deployment program
Strategic Marketing Market strategy: Managed Exchange deployment program Deployment Country FY09 FY10 FY11 FY12 Managed Recovery UK Managed Exchange Managed Recovery Benelux Managed Exchange Pilot Spain Managed Recovery Pilot Italy Managed Recovery Pilot Germany: quarter pallet Manag
Slide 154: Market Strategy: Last Mile Solutions
Strategic Marketing Market Strategy: Last Mile Solutions Industry challenge Our approach Retailers’ needs • Structured program of engagement across industry • Increase product in seven countries availability in-store • Reduce waste • Improve replenishment • Rigorous understanding of efficiency retai
Slide 155: Market Strategy: examples of Last Mile Solutions
Strategic Marketing Market Strategy: examples of Last Mile Solutions Accelerate sales of existing products Develop innovative products 155
Slide 156: Marketing: rigorous analysis of spend for targeted future investment
Strategic Marketing Marketing: rigorous analysis of spend for targeted future investment Collateral, materials Customer & giveaways events Sponsorship 18% 17% 15% 15% 15% 20% 17% Public External Other relations advertising Situation Plan Target • Regional silos • Develop marketing • Strategic soluti
Slide 157: Customer Solutioning: from local best practice to global capability
Strategic Marketing Customer Solutioning: from local best practice to global capability Winning capability Translated Global team Global solutioning in South Africa to EMEA launched skill set Drive value and continuous improvement Global capability build Deployed toolkit in Asia Structure & USA esta
Slide 158: Commercial Excellence: repositioning the team's capability
Strategic Marketing Commercial Excellence: repositioning the team’s capability Capability assessment Implementation Findings of third-party analysis of time allocation of 416 sales people We are here Execution of Global 20% country plans deployment Administration Travel Customer contact 20% 60% Prog
Slide 159: Key accounts: global account management for P&G
Strategic Marketing Key accounts: global account management for P&G The opportunity Our approach • One of our largest global customers • Established strategy and organised • Significant growth opportunity to deliver globally • Key entry customer for emerging • Developed multi-level relationships mar
Slide 160: Key focus areas: next 18 months
Strategic Marketing Key focus areas: next 18 months • Completion of strategy refresh for major Pallets countries • Installation of global project execution capability • Completion of brand revitalization and initiate marketing transformation • Driving of efficiency and cost leadership into go-to-mar
Slide 161: Operations & Logistics
Operations & Logistics Carmelo Alonso, Senior Vice President, Operations Dan Dershem, Senior Vice President, Logistics
Slide 162: Global transformation program
Operations & Logistics Global transformation program Operations & Logistics capabilities coming together to drive efficiency, innovation & continuous process improvement $1.8B in direct cost per annum Standardised Plant Plant Logistics automated network operations optimisation processes optimisation
Slide 163: Previous, disparate structure
Operations & Logistics Previous, disparate structure • Operations & Logistics controlled by region • Multiple standard operating procedures • Different “best practice” in each country • Scope & scale determined by individual region size • Duplication of infrastructure within each region • Efficienci
Slide 164: Global organisation structure
Operations & Logistics Global organisation structure Safety Network planning Plant Quality operations Process • Operations & Logistics managed centrally Procurement engineering • Global standard operating procedures • Shared best practices • Prioritise actions based on global impact • Leverage globa
Slide 165: Operations agenda
Operations & Logistics Operations agenda Function Mission Network planning Optimise supply chain network to achieve lowest cost Plant operations Standardise processes & drive automation Process engineering Standardise processes & drive automation Procurement Leverage scale in buying raw materials &
Slide 166: Logistics agenda
Operations & Logistics Logistics agenda Function Mission Standardise flows, leverage technology & collaborate with Logistics operations transport partners to drive efficiency Maximise effectiveness of stocks & flows planning based on Stocks & flows planning detailed forecasting & customer collaborat
Slide 167: Delivery model and principles: five techniques
Operations & Logistics Delivery model and principles Adopt technology Standardised automated processes Centralise organisation Four focus areas Five techniques Plant network optimisation Value for Leverage scale Brambles & Plant operations customers efficiencies Share best practice Logistics optimis
Slide 168: Execution of efficiency programs
Operations & Logistics Execution of efficiency programs Standardised Plant Plant Value for Focus network Logistics Brambles & automated operations area optimisation processes efficiencies optimisation customers Best in class benchmarking $95M Saving $22M $20M $40M $13M total 168
Slide 169: Standard automated processes: inkjet brand marking
Operations & Logistics Standard automated processes: inkjet brand marking No global standard New global standard Consistent results Inconsistent results 169
Slide 170: Standard automated processes: raised nail elimination
Operations & Logistics Standard automated processes: raised nail elimination No global standard New global standard Australia: hydraulic press Europe: weighted rollers - Proven design - Low cost - Multiple pallet types - Simplified operation - Minimal maintenance Manual process USA: pneumatic press
Slide 171: Plant operations efficiencies: board removal automation
Operations & Logistics Plant operations efficiencies: board removal automation Milling machine (APERO) - High capacity system - Integrated with robotic re-assembly - UK install June 2012 - South Africa install (similar system) April 2012 Robotic shears (KLIPPA) - Medium capacity system - Manual reas
Slide 172: Plant network optimisation: facility rationalisation at Salt Lake City
Operations & Logistics Plant network optimisation: facility rationalisation at Salt Lake City Before After Cost driver Reduction (miles) (miles) PMS average 67.7 43.1 24.6 length of haul CHEP average 89.3 37.3 52.0 length of haul Weighted average 81.9 39.3 42.6 length of haul # facilities 2 2 - Cost
Slide 173: Logistics optimisation: LeanLogistics rollout
Operations & Logistics Logistics optimisation: LeanLogistics rollout • Innovation and new product offerings • Geographic expansion with CHEP • Commercial expansion with CHEP customers 173
Slide 174: Product quality improvements
Operations & Logistics Product quality improvements Quality spending increase vs. FY07 base 120 $M, 30 June 2011 FX 100 80 60 40 20 0 FY08 FY09 FY10 FY11 FY12F Americas EMEA USA: 76% reduction in rejections EMEA: 33% reduction in rejections Critical to Quality (CTQ) standards development & simplific
Slide 175: Product quality journey
Operations & Logistics Product quality journey Better understand critical Design & implement Operate in line elements of tools & equipment to with globally success for improve delivery of monitored customers critical elements best practices Ongoing focus on Critical to 2012 2013 Quality (CTQ) standa
Slide 176: Video: process improvements
Operations & Logistics Video: process improvements 176
Slide 177: Delivery on track
Operations & Logistics Delivery on track Annualised savings FY12 $15M FY13 $37M FY14 $78M FY15 $95M Standardised automation Plant network optimisation Plant operations efficiencies Logistics optimisation 177
Slide 178: Brambles
Brambles
Slide 179: Investment Market Briefing
Investment Market Briefing 2012 Day one: Pallets Tuesday 20 March