Slide 1: Copies of slides for investor presentation and webcast
Brambles Limited ABN 89 118 896 021 Level 40 Gateway 1 Macquarie Place Sydney NSW 2000 Australia GPO Box 4173 Sydney NSW 2001 Tel +61 2 9256 5222 Fax +61 2 9256 5299 www.brambles.com For personal use only 16 August 2012 The Manager-Listings Australian Securities Exchange Limited Exchange Centre 20 B
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This page has been left blank intentionally For personal use only {RNG 00073790}
Slide 3: Full-Year Results; Agenda
16/08/2012 For personal use only Full-Year Results 16 August 2012 Agenda Business Update & FY12 Highlights Tom Gorman, CEO Results Analysis Greg Hayes, CFO Context & Outlook Tom Gorman, CEO 2 1
Slide 4: Business Update & FY12 Highlights: Key messages
16/08/2012 For personal use only Business Update & FY12 Highlights Tom Gorman, CEO Business Update & FY12 Highlights Key messages • FY12 Underlying profit of US$1,010M, in line with guidance – US$1,061M at 30 June 2011 foreign exchange rates – US$972M at 30 June 2012 foreign exchange rates • Growth
Slide 5: FY12 results scorecard; Key financial outcomes
16/08/2012 Business Update & FY12 Highlights FY12 results scorecard For personal use only Underlying profit of US$1,050M-US$1,080M at 30 June 2011 FX Constant currency sales revenue growth in all segments Delivery of sales targets in RPCs, Containers and emerging markets Efficiencies from IFCO
Slide 6: Continued market-share growth; Pallets – Americas
16/08/2012 Business Update & FY12 Highlights Continued market-share growth For personal use only (US$M) Net new business Net annualised new business Pallets – Americas 79 134 Pallets – EMEA 41 82 Pallets - Asia-Pacific 10 12 Total Pallets 130 228 RPCs 24 42 Containers 6 20 Total Pooling Solutions 16
Slide 7: Pallets – EMEA and Asia-Pacific
16/08/2012 Business Update & FY12 Highlights Pallets – EMEA: challenging conditions For personal use only • Sales revenue up 1% to US$1,327M • Western Europe stable amid economic volatility • Continued strong growth in Central & Eastern Europe and Middle East & Africa • Key 2H12 customer wins: Kello
Slide 8: RPCs and Containers
16/08/2012 Business Update & FY12 Highlights RPCs: delivering growth For personal use only • Sales revenue up 145% to US$760M (pro forma1 up 13%) • Growth with existing retailers, new regions and products • Strong progress with North American expansion • Key 2H12 retailer wins/expansion: Vega (Italy
Slide 9: Recall: growing revenue and profit
16/08/2012 Business Update & FY12 Highlights Recall: growing revenue and profit For personal use only • Sales revenue up 4% to US$845M • Strong sales growth in DMS on new business and volume increases • Cost efficiencies delivered • Softer paper prices and volumes in SDS business • Underlying profit
Slide 10: Results summary; Sales revenue growth
16/08/2012 Results Analysis Results summary For personal use only Continuing operations Actual FX Constant FX (US$M) FY12 FY11 Change Change Sales revenue 5,625.0 4,672.2 20% 22% Underlying EBITDA 1,561.9 1,337.0 17% 18% Underlying profit 1,009.7 857.2 18% 20% Operating profit 939.2 809.2 16% 18% Pr
Slide 11: Pallets: results summary
16/08/2012 Results Analysis Pallets: results summary For personal use only Actual FX Constant FX Pro forma1 (US$M) FY12 FY11 Change change Americas 2,041.3 1,654.8 25% 7% EMEA 1,326.8 1,318.3 4% 4% Asia-Pacific 375.8 340.0 7% 7% Sales revenue 3,743.9 3,313.1 15% 6% Underlying profit 715.0 654.9 11%
Slide 12: Pallets EMEA and Asia-Pacific: operating profit reconciliation
16/08/2012 Results Analysis Pallets EMEA: operating profit reconciliation For personal use only (US$M, constant FX) 19 Results Analysis Pallets Asia-Pacific: operating profit reconciliation (US$M, constant FX) 20 10
Slide 13: RPCs: results summary
16/08/2012 Results Analysis RPCs: results summary For personal use only Actual FX Constant FX (US$M) FY12 FY11 Pro forma1 change Europe 489.5 169.5 16% North America 138.3 33.2 16% South America 24.1 6.1 22% ANZ & South Africa 107.6 101.2 6% Sales revenue 759.5 310.0 15% Underlying profit 125.5 53.8
Slide 14: Containers: results summary
16/08/2012 Results Analysis Containers: results summary For personal use only Actual FX Constant FX Pro forma1 (US$M) FY12 FY11 Change change Automotive 154.8 149.1 6% 6% CCC 37.9 38.2 - - IBCs 43.1 33.7 29% 12% Aerospace Solutions 40.8 12.8 211% 3% Sales revenue 276.6 233.8 20% 5% Operating / Under
Slide 15: Recall: results summary
16/08/2012 Results Analysis Recall: results summary For personal use only Actual FX Constant FX (US$M) FY12 FY11 Change Americas 370.7 361.9 4% Europe 218.9 208.5 7% Rest of World 255.4 244.9 1% Sales revenue 845.0 815.3 4% Underlying profit 174.2 145.3 19% Margin 21% 18% 2pp Return on capital inves
Slide 16: Reconciliation: EBITDA to cash flow
16/08/2012 Results Analysis Reconciliation: EBITDA to cash flow For personal use only (US$M, actual FX) FY12 FY11 Change EBITDA 1,561.9 1,337.0 224.9 Capital expenditure (949.4) (764.7) (184.7) Proceeds from sale of P,P&E 93.5 100.8 (7.3) Working capital movement (107.9) (14.8) (93.1) IPEP expense 1
Slide 17: Strong balance sheet
16/08/2012 Results Analysis Strong balance sheet For personal use only (Actual FX) June 12 June 11 Net debt (US$M) 2,690 2,999 Gearing1 (%) 49.5 55.0 (Actual FX) FY12 FY11 Covenants EBITDA/net finance costs (x) 10.3 10.5 3.5 (min) Net debt/EBITDA (x) 1.7 2.2 3.5 (max) Undrawn committed credit facili
Slide 18: Pallets outlook: developed operations
16/08/2012 Context & Outlook Pallets outlook: developed operations For personal use only • Continued net new business wins expected in all regions • Focus on delivery of efficiencies – Global operations and logistics savings – IFCO integration synergies – Final Better Everyday efficiencies • Focus o
Slide 19: Pallets outlook: emerging markets; RPCs outlook
16/08/2012 Context & Outlook Pallets outlook: emerging markets For personal use only • On track to deliver 15% constant currency sales revenue growth • Margins to improve as scale builds in Asia and CEE • Continued expansion with major customers 1 CHEP Pallets sales revenue excludes IFCO Pallet Mana
Slide 20: Containers outlook; Recall outlook
16/08/2012 Context & Outlook Containers outlook For personal use only • Global focus and leadership under new Group President appointed May 2012 • Further doubling of sales revenue in FY13 in new ventures (Aerospace, US IBC and US Auto) – Strong sales momentum in CHEP Aerospace Solutions and US IBCs
Slide 21: Outlook summary
16/08/2012 Context & Outlook Outlook summary For personal use only • Subject to unforeseen events and ongoing economic uncertainty • Continued constant currency sales revenue growth in all segments • Underlying profit: US$1,010M to US$1,070M – 30 June 2012 foreign exchange rates – Represents growth
Slide 22: Appendices
16/08/2012 For personal use only Appendices 20
Slide 23: Appendix 1: Glossary of terms and measures
16/08/2012 Appendices Appendix 1: Glossary of terms and measures For personal use only Except where noted, common terms and measures used in this document are based upon the following definitions: Actual rates In the statutory financial statements, Brambles translates foreign currency results into U
Slide 24: Appendix 2 & 3: Currency mix; exchange rates
16/08/2012 Appendices Appendix 2: FY12 currency mix For personal use only (US$M, actual FX) Total USD EUR GBP AUD Other Pallets 3,743.9 1,551.3 786.7 337.6 299.7 768.6 RPCs 759.5 138.3 366.4 48.2 70.8 135.8 Containers 276.6 39.5 103.5 21.1 44.0 68.5 Recall 845.0 252.1 117.1 45.7 199.9 230.2 Total sa
Slide 25: Underlying profit reconciliation; Effective tax rate
16/08/2012 Appendices Appendix 4: FY12 Underlying profit reconciliation For personal use only (US$M) 45 Appendices Appendix 5: Effective tax rate Continuing operations FY12 FY11 (US$M) Actual FX Statutory Underlying Statutory Underlying Profit before tax 787.2 857.7 681.7 729.7 Tax expense 212.3 233
Slide 26: Significant items; Credit facilities and debt profile
16/08/2012 Appendices Appendix 6: Significant items For personal use only (US$M) Actual FX FY12 FY11 Underlying profit 1,009.7 857.2 Significant items: Acquisition-related costs (2.8) (19.1) Restructuring costs (37.0) (3.4) IFCO integration costs (16.2) (25.5) Pension costs (5.8) - Foreign exchange
Slide 27: Capex breakdown; Pooling Solutions revenue by segment
16/08/2012 Appendices Appendix 8: Capital expenditure breakdown by nature For personal use only (accruals basis) (US$M) FY11 FY12 Total US$822M Total US$921M Note: Property, plant and equipment cash capex in FY12 was US$949M compared with US$765M in FY11 49 Appendices Appendix 9: Pooling Solutions F
Slide 28: Pallets sales by Customer Business Unit; PMS impact
16/08/2012 Appendices Appendix 10: Pallets FY12 sales revenue by Customer Business Unit For personal use only (US$M) Pro forma growth1 vs. FY11 USA 5% 41 Canada 6% 335 Latin America 18% 54 135 LeanLogistics 14% Other Western Pallet Management Services1 9% Europe, 358 1,167 Western Europe 2% UK & Ire
Slide 29: FY12 sales growth in CHEP USA; pallet rejections
16/08/2012 Appendices Appendix 12: FY12 sales growth in CHEP USA For personal use only Annualised issue Net annualised new business Contracts (#) volumes (US$M) <100K 25 1,227 100K-500K 9 12 500K+ 50 3 Total wins 84 1,242 Losses (36) (10) Net 48 1,232 53 Appendices Appendix 13: CHEP USA pallet rejec
Slide 30: CHEP USA plant operations and productivity trends
16/08/2012 Appendices Appendix 14a: CHEP USA pallet plant operations and For personal use only transportation trends Plant cost ratio Transportation cost ratio (Plant costs/sales) (Transportation costs/sales) 55 Appendices Appendix 14b: CHEP USA pallet productivity trends Control ratio New equipment
Slide 31: CHEP Europe plant operations and productivity trends
16/08/2012 Appendices Appendix 15a: CHEP Europe pallet plant operations and For personal use only transportation trends Plant cost ratio Transportation cost ratio (Plant costs/sales) (Transportation costs/sales) 57 Appendices Appendix 15b: CHEP Europe pallet productivity trends Control ratio New equ
Slide 32: RPCs and Containers sales revenue breakdown
16/08/2012 Appendices Appendix 16: RPCs FY12 sales revenue by region For personal use only (US$M) Pro forma growth1 vs. FY12 24 Europe 16% North America 16% South America 22% ANZ & South Africa 6% 1 Pro forma figures assume Brambles had owned businesses acquired since 1 July 2010 for all of this per
Slide 33: Recall sales by sector; Paper prices – North America
16/08/2012 Appendices Appendix 18: Recall FY12 sales revenue by sector For personal use only (US$M) Growth1 vs. FY12 Document Management 7% Solutions Secure Destruction (6)% Services Data Protections 2% Services 1 Growth is at constant FX 61 Appendices Appendix 19: Paper prices – North America US$ 6
Slide 34: Disclaimer
16/08/2012 Disclaimer For personal use only The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about an