Brambles Limited · ASX:BXB
Brambles — Shareholder Meeting (November 2015)
45 slides from Brambles's shareholder meeting presentation, Nov 12, 2015
Slide 1: Annual General Meeting
Annual General Meeting 12 November 2015
Slide 2: Stephen Johns, Chairman
Stephen Johns Chairman 2 Brambles
Slide 3: Poll being held on all resolutions
A poll is being held on all resolutions at this meeting. If leaving early, place completed voting cards in the ballot boxes by the exit doors. 3
Slide 4: A strong business with a proud heritage
A strong business with a proud heritage Making our customers’ supply chains more efficient and sustainable Privileged to count world’s best-known brands as major customers Scale and breadth of network extremely hard to replicate ~500 million pallets, crates and containers Replacement value in excess
Slide 5: Focus on long-term value proposition
Focus on long-term value proposition Continued, disciplined value-adding investment, plus efficiencies Sustainable value for customers = wealth creation for shareholders Designed to sustain our value proposition for the long-term Growth capital expenditure: US$1.5 billion over next four financial ye
Slide 6: Strong FY15 result
Strong FY15 result (Continuing operations, US$M) FY15 result Change vs. FY14 Constant FX Sales revenue 5,465 8% Underlying Profit 986 10% Profit after tax 586 7% Return on Capital Invested 16% (0.5)pp Dividends per share (Australian cents) 28 4% 6
Slide 7: Dividend payout and franking
Dividend payout and franking FY15 payout ratio of 62% in Australian dollars Appropriate ratio for company with Brambles’ growth opportunities Payout ratio very susceptible to foreign exchange movements Fixed payout ratio would drive volatility in actual dividends paid Franking of 30% reflects the pr
Slide 8: Funding policy and debt ratios
Funding policy and debt ratios Key financial policy measures Net debt to EBITDA Interest cover Recent US$500 million bond raising reflects access to capital markets We maintain BBB+/Baa1 credit ratings from S&P and Moody’s 8
Slide 9: Strong sustainability credentials
Strong sustainability credentials Business model built on sustainable principles 2015 Sustainability Review released late October Highlights include: Increase in “certified” lumber to 97% Removal of 42 million kilometres of truck journeys as a result of transport collaboration program Reduction of f
Slide 10: Safety performance
Safety performance More than 14,000 people employed worldwide Year-on-year improvement in safety performance Tragically, one fatality occurred in 2015 financial year 10
Slide 11: Thank you for your attendance
Thank you for your attendance 11
Slide 12: Tom Gorman, Chief Executive Officer
Tom Gorman Chief Executive Officer 12
Slide 13: Focus areas in November 2009
Focus areas in November 2009 - Business heading in right Address pallet quality issues direction and regain customers’ trust - Growth in excess of grocery in CHEP USA sales since FY12 - Geographic expansion: 15+ new Develop a credible and well- countries understood growth strategy - Portfolio divers
Slide 14: Performance: FY10-FY15
Performance: FY10-FY15 Total shareholder Sales revenue1 +11% return2 +146% Underlying Customer Profit1 +12% satisfaction Up significantly (Net Promoter Score) Up significantly Average Capital Employee Invested1 +14% satisfaction (Brambles Employee Survey) 1 % shown are compound annual growth rates c
Slide 15: Continued focus on value creation
Continued focus on value creation High single-digit percentage growth in sales revenue (constant currency) Investment in Wealth value for creation for customers shareholders Return on Capital Invested of 20% by FY19 (prior to acquisition impacts) 15
Slide 16: Commitment to long-term delivery
Commitment to long-term delivery Multiple paths to future shareholder wealth Quantity Quality Shareholder wealth today Wealth creation 16
Slide 17: Why set objectives?
Why set objectives? Publicly-stated objectives are a rallying cry for 1 employees: they help us gain alignment with our people Better to be judged by our objectives, based on our 2 understanding of our business, than externally developed expectations 17
Slide 18: Three themes for delivery
Three themes for delivery Customer-centricity Accountability Driving innovation 18
Slide 19: Annual General Meeting
Annual General Meeting 12 November 2015
Slide 20: Tony Froggatt, Remuneration Committee Chairman
Tony Froggatt Chairman of the Remuneration Committee 20
Slide 21: What I will cover
What I will cover Brambles’ executive remuneration structure Outcomes for FY15, including share vesting MyShare employee share ownership scheme 21
Slide 22: Executive remuneration policy
Executive remuneration policy Objectives Attract and retain high-calibre executives Incentivise executives to achieve challenging performance levels Reward successful business strategy implementation Align executive rewards with creation of shareholder value Feedback received from our major stakehol
Slide 23: Senior executive remuneration structure
Senior executive remuneration structure At risk remuneration (76%) Fixed remuneration (24%) At risk LTI shares (32%) Salary Vesting over three years, Fixed salary Superannuation, car, performance hurdles for shares At risk LTI healthcare, etc. related to TSR and sales shares revenue/BVA At risk At r
Slide 24: FY15 remuneration outcomes
FY15 remuneration outcomes Modest salary increases for senior executives Short-term bonus and deferred share awards reflected company performance Long-term incentives (LTIs) vested at 57.1% No increase in Non-Executive Director fees Comprehensive review of our remuneration strategy in 2015 re- affir
Slide 25: MyShare update
MyShare update Brambles strongly committed to employee share ownership Since initial launch in 2008, more than 3,000 employees in 40 countries have elected to participate MyShare employees now own 2.85 million Brambles shares 25
Slide 26: Final comment – remuneration
Final comment – remuneration Brambles’ remuneration strategy continues to support the business strategy. Our remuneration policy is designed to reward executives for the creation of shareholder value. 26
Slide 27: Annual General Meeting
Annual General Meeting 12 November 2015
Slide 28: How to ask a question
How to ask a question Go to a designated microphone Show your green voting card or blue non-voting card Give the attendant your name Wait until you have been introduced to the meeting 28
Slide 29: Voting procedure
Voting procedure Discretionary proxy votes given to Chairman will be cast in favour of each item of business 29
Slide 30: Item 1
Item 1 To consider and receive the Financial Report, Directors’ Report and Auditors’ Report for Brambles and the Group for the year ended 30 June 2015. 30
Slide 31: Item 2
Item 2 As an ordinary resolution To adopt the Remuneration Report for Brambles and the Group for the year ended 30 June 2015. 31
Slide 32: Proxies and direct votes received
Proxies and direct votes received Item 2 To adopt the Remuneration Report For Discretionary Against Abstain Proxy votes 1,167,711,326 5,918,335 11,980,356 6,647,230 Direct votes 13,142,458 - 1,663,538 - Total 1,180,853,784 5,918,335 13,643,894 6,647,230 98.37% 0.49% 1.14% 32
Slide 33: Mark your voting card
Mark your voting card Item 2 To adopt the Remuneration Report 33
Slide 34: Election of Scott Perkins
Election of Scott Perkins 34 Brambles
Slide 35: Item 3
Item 3 As an ordinary resolution That Mr Scott Redvers Perkins be elected to the Board of Brambles. 35
Slide 36: Proxies and direct votes received
Proxies and direct votes received Item 3 That Mr Scott Redvers Perkins be elected to the Board of Brambles. For Discretionary Against Abstain Proxy votes 1,179,895,836 5,949,606 1,281,204 5,178,793 Direct votes 14,506,966 - 304,429 - Total 1,194,402,802 5,949,606 1,585,633 5,178,793 99.38% 0.50% 0.1
Slide 37: Mark your voting card
Mark your voting card Item 3 That Mr Scott Redvers Perkins be elected to the Board of Brambles. 37
Slide 38: Re-election of Carolyn Kay
Re-election of Carolyn Kay 38
Slide 39: Item 4
Item 4 As an ordinary resolution That Ms Sarah Carolyn Hailes Kay be re-elected to the Board of Brambles. 39
Slide 40: Proxies and direct votes received
Proxies and direct votes received Item 4 That Ms Sarah Carolyn Hailes Kay be re-elected to the Board of Brambles. For Discretionary Against Abstain Proxy votes 1,178,413,654 5,949,224 2,751,650 5,190,911 Direct votes 14,550,423 - 264,932 - Total 1,192,964,077 5,949,224 3,016,582 5,190,911 99.25% 0.4
Slide 41: Mark your voting card
Mark your voting card Item 4 That Ms Sarah Carolyn Hailes Kay be re-elected to the Board of Brambles. 41
Slide 42: Please deposit your voting cards at the exit
Please deposit your voting cards at the exit 42
Slide 43: The poll has now closed
The poll has now closed 43 Brambles
Slide 44: Annual General Meeting
Annual General Meeting 12 November 2015
Slide 45: 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