Brambles Limited · ASX:BXB
Brambles — Recall Holdings — Merger or Acquisition (October 2013)
30 slides from Brambles's merger presentation, Oct 28, 2013
Slide 1: Investor Presentation
Document Management Solutions | Secure Destruction Services | Data Protection Services Investor Presentation 28 October 2013
Slide 2: Disclaimer
Disclaimer This presentation contains general information in summary form which is current as at 28 October 2013. The information contained in this presentation and any supporting materials was obtained from Recall Holdings Limited (“Recall”) and other third-party sources. This presentation and the
Slide 3: Agenda
Agenda 1 Introduction 2 Investment Highlights 3 Business Strategy 4 Financial Overview Note: All dollar amounts in the presentation are US dollars unless otherwise stated. All financials in this presentation are Pro Forma for standalone corporate costs and the impact of the acquisition of an additio
Slide 4: Key Takeaways
Key Takeaways • Leading information management solutions provider in large, growing and fragmented market — Strong market positions: global footprint in 23 countries — Stable, recurring revenue streams — Strong cash flow — Initial target dividend pay-out ratio intended to be at least 60% of NPAT — N
Slide 5: Whiteboard Marketing Video
Whiteboard Marketing Video 5
Slide 6: Service Offerings
Service Offerings Document Management Solutions Secure Destruction Services Data Protection Services (74% of FY13 Revenue) (15% of FY13 Revenue) (11% of FY13 Revenue) • Storage, indexing and retrieval • Secure collection • Offsite storage, rotation, • Business process automation • Secure destruction
Slide 7: Customer Value Proposition
Customer Value Proposition Document Retention Drivers Growing information management industry • Regulatory requirements • Litigation Recall business focus • Security Essential business records and high • Complexity of information value documents Customer Needs • Physically verifiable Comprehensive s
Slide 8: Investment Highlights
2. Investment Highlights ©2013 Recall Holdings. Proprietary & Confidential
Slide 9: Value Drivers
Value Drivers Experienced Strong Global Management Platform Team Well Diverse Positioned Customer for Growth Base Attractive Stable and Margins and Recurring Cash Flow Revenue 9
Slide 10: Strong Global Platform
Strong Global Platform Emerging markets 77 Facilities 24% of Revenue(1) 26 Facilities 8% of Revenue(1) 158 Facilities 42% of Revenue(1) 47 Facilities 26% of Revenue(1) • Global business: 308 facilities in 23 countries • Exposure to higher growth emerging markets - Enhanced through recent consolidati
Slide 11: Diverse, High Quality Customer Base
Diverse, High Quality Customer Base Customer Concentration(1) Split of Top 20 Customers Top 10 Financial services 10 – 20 Government Remainder Consulting Technology Energy Insurance • Recall services ~80% of the Fortune 100 and >65% of the Fortune 500 • Customers include multinational companies to m
Slide 12: Stable and Recurring Revenue
Stable and Recurring Revenue Historic Revenue Growth FY13 Revenue – Estimated 68% Recurring 841 874 840 763 708 11% 15% 74% Recurring Non-recurring FY09 FY10 FY11 FY12 FY13 • Storage, SDS • Activity/Transactional DMS SDS DPS • Contract terms create high switching costs • 16 of our top 20 customers w
Slide 13: Attractive Margins and Cash Flow
Attractive Margins and Cash Flow Underlying EBITDA Margins Capex ($M) Cash Flow ($M) 150 11% 12% 250 10% 10% 130 10% 200 110 169 160 90 90 85 8% 147 142 90 150 130 70 6% 98 100 50 4% 30 50 2% 10 0 -10 0% FY11 FY12 FY13 FY11 FY12 FY13 % of Revenue Operating Cash Flow¹ Underlying Profit Cash flow and
Slide 14: Well Positioned for Growth: Physical
Well Positioned for Growth: Physical • $20B per annum market size(1) • Proven ongoing demand for long-term physical storage Consistent Growth in Cartons Stored(2) Majority of $20B Market is Unvended 103M 106M 93M 98M 87M Additional Vended growth Unvended opportunity FY09 FY10 FY11 FY12 FY13 Unvended
Slide 15: Well Positioned for Growth: Digital
Well Positioned for Growth: Digital • Recall capitalising on digital growth opportunity — Business process and workflow solutions drive customer cost efficiencies — Cloud-based content management systems store, manage and back-up data — Tailored solutions help reduce risk and drive business value Re
Slide 16: Experienced Management Team
Experienced Management Team • Significant information management industry experience • Proven track record of successfully managing and growing international businesses CEO Doug Pertz Joined Recall 2013 CFO President, Americas President, ANZ President, Europe President, Asia Mark Wratten Mark Wesley
Slide 17: Business Strategy
3. Business Strategy ©2013 Recall Holdings. Proprietary & Confidential
Slide 18: Competitive Differentiation
Competitive Differentiation • Standard operating • Full chain of procedures (SOPs) custody • Dedicated account • Third-party audits management • Security breach Service Security protocols Global/ National Innovation • RFID audits: Footprint • 23 countries 99.999% accuracy • Global systems • Innovati
Slide 19: Market Drivers and Strategy Initiatives
Market Drivers and Strategy Initiatives • Gain Market Share Regulation & Litigation • Convert Unvended Growth • Expand Service Offering Initiatives • Geographic Expansion • Acquisitions Global Requirements • Sales Force Effectiveness Go To Provider Rationalisation • Global Accounts Market • Drive In
Slide 20: Examples of Key Customer Wins
Examples of Key Customer Wins Strategy Initiative Customer Type Solution Large Global Bank Gain Market Share Physical Major NZ Insurance Co Regional Law Firm Convert Unvended Physical US Healthcare Provider Top Brazilian Insurance Co Digital Solution (w/Physical) Expand Service Offering Major Austra
Slide 21: Financial Overview
4. Financial Overview ©2013 Recall Holdings. Proprietary & Confidential
Slide 22: Historical Financial Profile
Historical Financial Profile • FY12: Business prepared for sale with aggressive cost-out and low business development • FY13: Impacted by sale process, lower transactional activity, lower paper prices and normalisation of business development and other costs Underlying Profit, Underlying EBITDA and
Slide 23: Capital Structure
Capital Structure • Recall net debt at Demerger of approximately $500M • $800M multi-currency syndicated facility —Combination of three-year and five-year maturities —Covenants: — Net debt(1) to EBITDA: less than 3.5x — EBITDA to net finance costs: not less than 3.5x Net debt/FY13 Pro Forma Underlyi
Slide 24: Target Dividend Policy
Target Dividend Policy(1) • First dividend September/October 2014 • Dividends paid in Australian Dollars • Franking of dividends to the extent practicable(2) —Franking not expected until FY15 —Franking expected to be between 20% and 40% for the foreseeable future Initial target dividend pay-out rati
Slide 25: Trading Update and Outlook
Trading Update and Outlook(1) • Total 1Q14 Pro Forma Sales Revenue: $206M, up 3% in constant currency(1) —Reflects 8% growth in core DMS business: driven by growth in carton storage volumes and revenue, as well as related activities —Offset by lower revenue in SDS business: due to lower one-off serv
Slide 26: Key Takeaways
Key Takeaways • Leading information management solutions provider in large, growing and fragmented market — Strong market positions: global footprint in 23 countries — Stable, recurring revenue streams — Strong cash flow — Initial target dividend pay-out ratio intended to be at least 60% of NPAT — N
Slide 27: Investor Presentation
Document Management Solutions | Secure Destruction Services | Data Protection Services Investor Presentation 28 October 2013
Slide 28: Appendices
Appendices ©2013 Recall Holdings. Proprietary & Confidential
Slide 29: Board of Directors
Board of Directors(1) Ian Blackburne, Chairman(2) • Current Chairman of Aristocrat Leisure (ASX) and Director of Teekay Corporation (NYSE) • Former Chairman of CSR and the Australian Nuclear Science & Technology Organisation • Former Non-Executive director of Suncorp-Metway and Symbion Health Doug P
Slide 30: Key Risks Associated with an Investment in Recall
Key Risks Associated with an Investment in Recall Some of the key risks associated with Recall include(1): •Inability to maintain information security or inadequate contract management •Inability to comply with regulatory obligations (including increased governmental focus on data security and priva
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