Brambles Limited · ASX:BXB
Brambles — Merger or Acquisition (November 2010)
21 slides from Brambles's merger presentation, Nov 15, 2010
Slide 1: Copies of slides for analysts' briefing
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 15 November 2010 The Manager-Listings Australian Securities Exchange Limited Exchange Centre 20
Slide 2: The next stage of growth: IFCO acquisition
For personal use only The next stage of growth: IFCO acquisition 15 November 2010 Trading update Tom Gorman, CEO 1
Slide 3: Trading update and outlook
Trading update For personal use only Sales revenue up 2%1 to US$1,426M in four months ended October 2010 (up 3% in constant currency2) Constant currency sales revenue growth in all business units • CHEP Americas: up 3% to US$530M • CHEP EMEA: up 3% to US$496M • CHEP Asia-Pacific: up 5% to US$140
Slide 4: Delivering our strategy
For personal use only Delivering our strategy Tom Gorman, CEO Highlights Unique opportunity to strengthen Brambles’ position as a global leader in pooling solutions Acquisition of scale in RPCs and pallets Consistent with strategy to expand in high-growth sectors, regions and products • Increa
Slide 5: Highlights and growth opportunity
Highlights (continued) For personal use only Enterprise value of €923M (US$1,255M1) represents multiple of 7.2x EBITDA2 EPS2 accretive from point of ownership Agreements to acquire 95.9% of target with clear path to 100% Subject to merger control clearance 1. Assumes EUR:USD of 1.36; exclude
Slide 6: Combined business profile
Combined business profile For personal use only Pro forma sales revenue of ~US$5BN in FY10 Diversity by geography, product and service offering Operations in 49 countries in six continents Leading global brands RPCs • Enhanced scale in Europe • Strong position in fast-growing RPC sector in
Slide 7: Strengthened portfolio and IFCO overview
Strengthened portfolio For personal use only Pallets Containers Large SMEs RPCs Auto IBCs Other customers Americas EMEA Asia-Pacific 11 IFCO overview A global leader in RPC pooling services • Europe, USA, South America A leading provider of pallet and logistics services in USA Strong senior ex
Slide 8: IFCO – RPCs and pallets
IFCO – RPCs and pallets For personal use only IFCO sales revenue IFCO EBIT LTM, 30 Sep ‘10 (US$772M)* LTM, 30 Sep ‘10 (US$101M)* 16% 44% 56% 84% 0% RPCs Pallets * EUR:USD 1.3282; EBIT includes US$12M unallocated corporate costs 13 IFCO – RPC operations Operations in 23 countries IFCO RPC sales rev
Slide 9: IFCO – RPC Europe and USA
IFCO – RPC Europe For personal use only Significant operations in largest IFCO RPC Europe sales revenue* region for RPCs 320 308 Opportunity for continued 2007-2009 CAGR: 4% 300 growth 281 Strong relationships with 280 retailers and growers US$M 259 260 254 Recent customer wins expected to c
Slide 10: IFCO – RPC South America
IFCO – RPC South America For personal use only IFCO RPC South America sales revenue* Well-positioned in fast-growing region 20 Long-term contract with leading 2007-2009 CAGR: 74% 15 food retailer in Brazil 15 Significant new product 12 opportunities US$M 10 5 5 4 0 2007 2008 2009 LTM * Constan
Slide 11: IFCO – pallets and USA pallet market
IFCO – pallets For personal use only Recycles, sorts and repairs IFCO pallet sales revenue ~200M white wood pallets a year Warehouse and logistics 400 management services 378 362 Low capital requirement 360 337 337 IFCO pallet summary financials 320 Full year 9 mths to US$M LTM US$M Dec 09 Sep
Slide 12: Financial analysis: transaction highlights
For personal use only Financial analysis Greg Hayes, CFO Transaction highlights Purchase price of €696M (US$947M)1 Enterprise value of €923M (US$1,255M)1 • EV/EBITDA2 of 7.2x • EV/EBIT2 of 10.6x Brambles retains all IFCO cash flows from 1 Jul ’10 Equity purchase price increases at 12% p.a. f
Slide 13: Funding and transaction considerations
Funding – enterprise value of €923M For personal use only Funded ~50% through equity over time €M US$M1 SPP and DRPs Offer price: €13.50 per share2 • A$110 million SPP • Three DRPs commencing Market cap 696 947 FY11 interim dividend • Fully underwritten Net debt 227 308 Balance of ~50% funding
Slide 14: IFCO growth momentum and assumptions
IFCO – growth momentum For personal use only 12 mths to 9 mths to 9 mths to US$M1 Dec ‘09 Sep LTM Sep ’09 Sep ‘10 Growth Sales revenue RPC 383 435 276 327 19% Pallet 337 337 257 256 Total sales revenue 720 772 533 584 EBITDA RPC 112 128 76 92 21% Pallet 23 25 18 20 Corporate (10) (12) (6) (8) Total
Slide 15: Combined Brambles/IFCO
Combined Brambles/IFCO For personal use only Pro forma FY10 combined financials FY10 EBITDA3,4 US$M Brambles1 IFCO2 Combined 11% Sales revenue 4,147 772 4,918 13% EBITDA 1,177 142 1,319 Margin (%) 28 18 27 76% EBIT 733 101 834 Margin (%) 18 13 17 CHEP 74% Recall IFCO 1. 12 months to 30 Jun ‘10 2. 12
Slide 16: Summary
Summary For personal use only Unique opportunity to strengthen Brambles’ position as a global leader in pooling solutions Acquisition of scale in RPCs and pallets Consistent with strategy to expand in high-growth sectors, regions and products • Increases scale of RPC business • Broadens custom
Slide 17: Pro forma assumptions
For personal use only Appendices Pro forma assumptions Earnings • Brambles: midpoint of statutory operating profit guidance before finance costs and tax of US$740M to US$780M (at 30 Jun ‘10 FX) • IFCO: Brambles’ forecast for IFCO’s pro forma EBITDA and EBIT for year ending 30 Jun ’11 of US$170M an
Slide 18: IFCO – consolidated financials
IFCO – consolidated financials For personal use only 9 mths to 9 mths to US$M1 2008A 2009A Sep LTM Sep ‘09 Sep ’10 Sales revenue 736 736 778 541 584 Growth (%) 6 0 6 (3) 8 EBITDA 110 129 144 90 105 Margin (%) 15 18 18 17 18 Growth (%) 2 18 11 11 16 EBIT 66 88 102 60 73 Margin (%) 9 12 13 11 13 Growt
Slide 19: IFCO – pallet financials
IFCO – pallet financials For personal use only 9 mths to 9 mths to US$M1 2008A 2009A Sep LTM Sep ‘09 Sep ’10 Sales revenue 378 337 337 257 256 Growth (%) 4 (11) 0 (12) (0) EBITDA 30 23 25 18 20 Margin (%) 8 7 8 7 8 Growth (%) 31 (24) 11 (28) 14 EBIT 24 16 18 13 15 Margin (%) 6 5 5 5 6 Growth (%) 37
Slide 20: Disclaimer statement
For personal use only The next stage of growth: IFCO acquisition 15 November 2010 Disclaimer statement 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,
Slide 21: Important information
Important information For personal use only This is neither an offer to purchase nor a solicitation of an offer to sell shares. The final terms and conditions of the offer will be published in the offer document after approval by the German Federal Financial Supervisory Authority (Bundesanstalt für