Slide 1: ASX cover letter: CHEP USA new service and quality offer
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 6 October 2009 The Manager - Listings Australian Securities Exchange Limited Exchange Centre 20
Slide 2: New Customer Service and Quality Program
For personal use only New Customer Service and Quality Program 6 October 2009 Mike Ihlein Chief Executive Officer Jim Ritchie President, CHEP USA New customer service and quality program Mike Ihlein Background to CHEP USA review Pooled wood pallet the best solution Customer service and quality
Slide 3: CHEP USA – the journey
CHEP USA – the journey For personal use only 2001 2007 PURSUE RAPID GROWTH Customer pallet performance • Buoyant economy requirements • Strong volume and • Vast majority of needs met by revenue growth CHEP average pallet quality • Margin expansion • Limited demand for high • 8% average volume perfor
Slide 4: US$160 million investment well received by customers
US$160 million investment well received by customers For personal use only Repairs up by over 50% Two thirds of issues at new US Plus specification n for your Customers moved back to CHEP “Thanks agai nt to quality commit me b a lot Positive customer feedback it make s .” our jo easier “Due
Slide 5: CHEP USA review objectives and key outcomes
CHEP USA review objectives For personal use only Best position business for medium to long term Determine optimal range of: • Service offerings • Pallet platform • Pallet quality • Service centre network requirements • Cost and pricing structures ………to best meet future customer needs 7 Key outco
Slide 6: Pooled wood pallet the best economic and environmental solution
Pooled wood pallet the best economic solution for the broad supply chain For personal use only Platform economics at given issue price Crucial variables: Higher Combined loss / scrap rate Lower • New pallet cost Lower • Turns POSITIVE RETURNS • Loss rate CHEP USA pooled wood • Damage (scrap) rate
Slide 7: Quantum shift in pallet platform; financial impacts
Better Everyday program For personal use only Quantum shift in pallet platform • Customer segmentation Cost and Service network – US Plus specification optimisation quality – US Premium specification Investment in customer service Better Everyday and relationships Pricing and Relationship • Incr
Slide 8: CHEP USA – the journey
CHEP USA – the journey For personal use only 2001 2007 2009 PURSUE INVEST TO POSITION FOR RAPID STRENGTHEN THE FUTURE GROWTH • Economic slowdown • Economic recovery • Buoyant economy – lower revenue growth • Capital discipline • Strong volume and • Evolving customer needs • Superior wood pallet reve
Slide 9: Comprehensive seven-month review; what our customers told us
Comprehensive seven-month review: Listening, understanding, testing and responding For personal use only Over 700 customer Extensive damage rate and interviews representing component-by-component over 70% of issues Interviews Extensive repair analysis with broad field trials 5 plants testing U
Slide 10: Better Everyday – service quality
Better Everyday program implementation starts now For personal use only Cost and Service network quality optimisation Better Everyday Pricing and Relationship growth quality Platform quality 17 Better Everyday – service quality Unrivalled performance standards and ease of doing business US-wide pa
Slide 11: Better Everyday – relationship and platform quality
Better Everyday – relationship quality For personal use only Significantly enhanced levels of customer engagement Increased field-based sales resources Realigned field-based organisation to improve speed and responsiveness to customer needs Proactive problem solving and value-added solutions 1
Slide 12: Platform quality – US Premium specification
Better Everyday – platform quality – US Premium specification For personal use only Quantum uplift in total pallet pool quality delivering the best overall supply chain solution ‘US Premium’ pallet specification to meet most demanding supply chain requirements • Developed in collaboration with maj
Slide 13: Better Everyday – pricing and growth; cost optimisation
Better Everyday – pricing and growth For personal use only Pricing and growth No general price increases in first 12 months of Better Everyday program Attractive pricing for lane expansion opportunities with existing customers Leverage our network capabilities and additional sales staff to pen
Slide 14: Delivering on the promise
Delivering on the promise For personal use only An effective blend of disciplined execution in FY10, with long-term planning Daily performance and productivity tracking Customer working groups to drive the next generation of innovation Experience-tested governance processes ensure deliverabl
Slide 15: Comprehensive review – clear path forward
Comprehensive review – clear path forward For personal use only Better understanding of customer future needs • Data on over 35,000 customer locations • Solutions developed with extensive customer feedback, tested and confirmed Leveraging other CHEP Regions • Capturing and deploying best practic
Slide 16: Summary
Summary For personal use only Strong business model; well positioned to benefit from economic recovery Initial quality investment in place with positive results The most comprehensive review ever in CHEP USA Wood pallet platform remains best solution Launched the Better Everyday program
Slide 17: Contact details
For personal use only Customer Service and Quality Program 6 October 2009 Mike Ihlein Chief Executive Officer Jim Ritchie President, CHEP USA Contact details Michael Roberts Vice President Investor Relations and Corporate Affairs michael.roberts@brambles.com +61 (0)2 9256 5216 James Hall Manager Inv