Slide 1: Investor Information Presentations cover letter
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 10 September 2010 The Manager - Listings Australian Securities Exchange Limited Exchange Centre
Slide 2: Investment Market Briefing Agenda
For personal use only Investment Market Briefing 10 September 2010 Agenda Regions and growth Latin America Arturo Cabrera Canada Mike Dimond USA SME strategy Karen Hempel Automotive Kevin Shuba LeanLogistics Dan Dershem Summary Tom Gorman 2
Slide 3: CHEP Latin America – a growth story
For personal use only CHEP Latin America Arturo Cabrera President, CHEP Latin America CHEP Latin America – a growth story Latin America region CHEP in Latin America • 400+ employees • 43 service locations CHEP performance in the region Lessons and opportunities 4
Slide 4: Region overview and CHEP presence
Region overview For personal use only 21 countries: emerging opportunity in FMCG and produce sectors Stabilizing economic conditions Highly concentrated population in capital cities • Mexico City: ~20M inhabitants • Sao Paulo: ~16M inhabitants Retail industry rapidly consolidating • Wal-Mart
Slide 5: Latin America partners and high growth economies
Latin America partners For personal use only Strong FMCG customer base 7 High growth economies Retail sales growth by country 25% 20% 15% Argentina Brazil 10% Chile Mexico 5% 0% CY06 CY07 CY08 CY09 Consistently strong rates of growth in consumer activity Source: Argentina – INDEC: Instituto Nacional
Slide 6: Latin America palletization
Latin America palletization For personal use only 7 Pallets per capita vs. GDP per capita – 2009 6 USA 5 Pallets per capita 4 3 Germany UK 2 Chile France New Zealand Italy 1 Brazil Iberia Argentina Mexico 0 0 5 10 15 20 25 30 35 40 45 50 GDP per capita (US$K) Relatively low palletization represents
Slide 7: Product expansion opportunities
Product expansion opportunities For personal use only Pallets New countries (Central America) Increased FMCG penetration RPCs Mexico fresh produce IBCs Brazil and Mexico Auto Main opportunity in Brazil containers Multiple product offerings with strong market position 11 CHEP performance an
Slide 8: Sales growth by country
Sales growth by country Argentina Brazil For personal use only Real GDP growth Real GDP growth projection* = 4% projection* = 4.5% 10 60 8 50 40 6 US$M US$M 30 4 20 2 10 0 0 FY05 FY06 FY07 FY08 FY09 FY10 FY05 FY06 FY07 FY08 FY09 FY10 Chile Real GDP growth Mexico Real GDP growth projection* = 5% proj
Slide 9: Growth in region
Growth in region For personal use only Sectors • Large • High growth potential • High degree of palletization Target high- / containerization Seek attractive growth sectors • High degree of automation geographies where with most to gain • Low cycle time we can replicate from palletization our succes
Slide 10: CHEP Canada snapshot
For personal use only CHEP Canada Mike Dimond President, CHEP Canada Canada snapshot In business for 31 years Strong, stable management team averaging 18 years of CHEP experience Over 500 hourly and salaried employees 15M cross-border shipments to and from the USA 80% of pallets repaired i
Slide 11: Quality platforms
Quality platforms For personal use only S4840A B4840A B4820A 4113 For shipments within: stringer block half IBC Canada 9 9 9 9 USA 9 9 Mexico (ISPM 15)* 9 9 19 Broad range of customers 20
Slide 12: Strong operational network
Strong operational network For personal use only 9 CHEP operated service centres 12 third-party facilities 2 wash facilities 3 TPM sites Seasonal storage and cross-docking facilities 21 National reach Major facilities: • Vancouver • Edmonton • Calgary • Winnipeg • Toronto • Montreal • Monc
Slide 13: Strong network and high penetration
Strong network and high penetration For personal use only Canada segmentation 4% Sector Penetration 9% Food and grocery 80% Durable goods 95% 25% Beverages 50% 62% (non-alcoholic) Produce 30% Food and grocery Durable goods Beverages Produce Source: CHEP internal estimates, August 2010 23 Solid finan
Slide 14: Competitive landscape
Competitive landscape For personal use only Canadian Pallet Council (CPC) • Approximately 15% penetration and declining iGPS • Attempting to launch in Canada • Limited number of northbound shipments currently • Recent government move to ban decabromine PECO • No activity in Canada 25 Growth st
Slide 15: Growth strategy: beyond the core
Growth strategy: beyond the core For personal use only Managed services • Partnering with Canada's largest non-grocery retailer, Canadian Tire • Trials underway for the management of plastic totes utilizing CHEP RFID technology Returnable Plastic Containers • Negotiating the supply of specialize
Slide 16: Wednesday presentation recap / Growth strategy
Wednesday presentation recap For personal use only Solid, blue-chip customer base Restoring customer confidence through execution New structure focused on retention and sales velocity • Removed account administration from sales World-class sales leadership team with proven track record Exp
Slide 17: CHEP USA pallet opportunity
CHEP USA pallet opportunity For personal use only Total pallet opportunity US$9.5BN “Addressable” 48x40 opportunity US$2.3BN Penetration US$1.1BN Other poolers <10% of addressable Source: Brambles internal estimates, June 2010 31 Defining the SME sector Typical characteristics of an SME customer •
Slide 18: Why focus on the SME sector?
Why focus on the SME sector? For personal use only CHEP uniquely positioned to win business in the sector • Extensive network • Responsiveness/just-in-time inventories • Retailer advocacy relationships Favorable margins compared with larger customers Lower cost to “sell” with condensed sales c
Slide 19: How we'll grow this sector / SME case study
How we’ll grow this sector For personal use only Deploy best practices and experiences from other regions Increased field sales representation Additional telesales professionals Retailer advocacy programs Marketing automation systems • Processing large volumes of lead data • Digital market
Slide 20: Summary
Summary For personal use only Significant opportunity for profitable growth Scale provides competitive advantage • Leveraging distributor advocacy Proven success in other markets Favorable margins Shorter sales cycle Positive momentum 37 Q&A
Slide 21: Automotive today
For personal use only Automotive Driven by globalization Kevin Shuba Senior Vice President, Customer Development, Brambles Automotive today Serving plants in 18 countries First automotive customer was in Australia in 1975 First global automotive flow commenced in 2001 Core value proposition:
Slide 22: Automotive core business and model
Automotive core business For personal use only Assets Foldable reusable plastic crates Customer benefit Foldable reusable plastic cubic containers Minimises handling and Bespoke reusable packaging decanting Management CHEP automotive logistics processes systems management system Eliminat
Slide 23: Case study: vehicle manufacturer in Spain
Case study: vehicle manufacturer in Spain For personal use only Cost comparison: owned packaging vs. CHEP Cost associated with owning CHEP full-service solution Savings using CHEP returnable packaging Assets investment: €213K CHEP cost: €827K Savings generated using CHEP full Cost for the CHEP full
Slide 24: Market landscape and go-to-market strategy
Market landscape For personal use only Managed Packaging transportation CHEP fills the space between logistic service providers and packaging manufacturers Cardboard Suppliers 45 Go-to-market strategy Develop current domestic auto and heavy equipment business and expand into markets where under re
Slide 25: Domestic market growth and intercontinental flows
Domestic market growth For personal use only Global automotive light vehicle production forecast, 2016 (millions) 6.4 (+33%) 2.8 (+278%) 2.4 (+63%) 2.9 (+38%) 9.8 (+79%) 2.7 (+26) 10.7 (+30%) 2.1 (+66%) 16.2 (+47%) 3.6 (+7%) 2.8 (+101%) 4.1 (+70%) 2.0 (+115%) Production of 2M+ vehicles forecast 3.7
Slide 26: Intercontinental flows / The CHEP advantage
Intercontinental automotive flows For personal use only 90% of global flows use cardboard and/or wood No sunk capital investment Change management is quicker and easier Customers prefer returnable containers Minimizes handling, waste and quality issues CHEP’s focus is on minimising suppl
Slide 27: Summary
Summary For personal use only We have a strong value proposition in the regions where we operate We have regional presence in the key markets, with intent and capability to expand The automotive and industrial equipment industry is becoming ever more global We have an unmatched global footpr
Slide 28: About LeanLogistics
About LeanLogistics For personal use only Established:1999 and acquired by Brambles: 2008 North American leader in Transportation Management Systems (TMS) delivered as Software-as-a-Service (SaaS) Processes over US$5BN in transportation expense annually Customer value proposition: reduce cos
Slide 29: Introduction to LeanLogistics solutions
Introduction to LeanLogistics solutions For personal use only Our solution leverages one the industry’s largest transportation networks and TMS technology to reduce cost and improve service Common customer pain points: How we help: Sourcing of carriers Access to large carrier network Transpo
Slide 30: Our full range of leading solutions
Our full range of leading solutions For personal use only Technology Services On-demand TMS® Client services Procurement Managed transportation Planning Transportation Services Execution management Appointment scheduling network Benchmarking and procurement Settlement GreenLanes™ Visibility Network
Slide 31: On-Demand TMS demo
On-Demand TMS demo For personal use only 59 Market presence Convergence of service, network data and technology Managed Installed transportation software 60
Slide 32: Market in transition
Market in transition For personal use only Supply chain sourcing strategies grow in demand Source: Gartner Research – Annual Supply Chain Conference June 2010 61 Our market environment today… Supply chain management is becoming more of a global capability Global financial crisis had significant
Slide 33: Brambles assets and expansion opportunities
Brambles assets For personal use only Asset categories Impact Geographic coverage Global North America Customer entry Supply chain – senior level Supply chain – senior level Operational expertise Global North America Thousands (FMCG, automotive, 65 (FMCG, retail, pharma, Customers retail) automotive
Slide 34: Global expansion / Working with CHEP
Global expansion For personal use only Positioned uniquely to be a significant participant in new geographies Multi-billion dollar industry that has not been fully leveraged Currently working on conducting a global market assessment Areas of priority in phase one are: • Europe • Australia •
Slide 35: Summary
Summary For personal use only Investment in growth initiatives: • To be a leader in supply chain solutions • Leveraging current expertise, infrastructure, and customer footprint • Significant cost savings to CHEP within the supply chain • Enhancing customer satisfaction while maintaining operation
Slide 36: Summing up – FY10 recap
For personal use only Summing up Tom Gorman, CEO, Brambles FY10 recap Put together the leadership team Established priorities Put cadence in place Development of strategic process Identification of growth opportunities 70
Slide 37: FY10 result recap and core strengths
FY10 result recap For personal use only Delivering on commitments • Quality improvement • Cost disciplines • Emerging market growth Stable, resilient business in volatile market conditions • Improvement in second-half performance Strong cash flow and balance sheet 71 Core strengths Global fo
Slide 38: Where to from here?
Where to from here? For personal use only CHEP • Continued focus on customers and innovation – Net Promoter Score – Pallet Test Track • Strengthen US operations • Grow in new segments (e.g. SME) • Expand circle of influence (USA Advisory Board) • Product and platform diversification • LeanLogistic
Slide 39: Organizing to deliver / USA Advisory Board
Organizing to deliver – CHEP For personal use only Brambles Americas’ growth CHEP Americas – Platform and USA Jim Ritchie service expansion Advisory Board USA SME CHEP CHEP Canada LeanLogistics – strategy – automotive – – Mike Dimond Dan Dershem Karen Hempel Kevin Shuba CHEP Latin Other America – pl
Slide 40: The size of the prize – CHEP USA
The size of the prize – CHEP USA For personal use only ~US$12BN ~US$1.1BN Total pallet Other 16% opportunity US$9.5BN Auto 11% IBCs 19% “Addressable” pooled 48x40 opportunity US$2.3BN 100% Plastic bins 11% Penetration US$1.1BN RPCs 23% Other poolers Pallets 20% <10% of addressable Market CHEP Source
Slide 41: Disclaimer statement
Disclaimer statement 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 and
Slide 42: Investment Market Briefing September 2010
For personal use only Investment Market Briefing 10 September 2010