Slide 1: Copies of slides for analysts' briefing, Sydney
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 19 August 2010 The Manager - Listings Australian Securities Exchange Limited Exchange Centre 20
Slide 2: 2010 full-year results presentation: discussion topics
For personal use only 2010 full-year results presentation 19 August 2010 Discussion topics Business update Tom Gorman, CEO FY10 results analysis Greg Hayes, CFO Outlook Looking forward – growth Tom Gorman, CEO opportunities 2 1
Slide 3: Business update: key messages
For personal use only Business update Tom Gorman, CEO Key messages 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 4
Slide 4: Financial highlights
Financial highlights For personal use only % change % change (actual (constant US$M FY10 FY09 FX rates) currency)* Sales revenue 4,146.8 4,018.6 3% – Statutory operating 724.5 718.2 1% (3%) profit Statutory profit after tax 443.9 434.0 2% (1%) Earnings per share (US 31.8 32.6 (2%) (6%) cents)** Fr
Slide 5: Business unit highlights (continued) and Better Everyday progress
Business unit highlights (continued) For personal use only CHEP Asia-Pacific • Australia resilient and growing • Strong growth in China and India • Ongoing efficiency focus Recall • Robust profit growth • Strong sales pipeline • Improving margins and return on capital 7 Better Everyday progress
Slide 6: CHEP USA quality costs and business wins
CHEP USA quality costs For personal use only Ongoing Component FY10 FY11 FY12 US$M (per year) October ‘09 Pre-Better Everyday 37 - - - forecast Better Everyday fast-track 30 50 30 - Better Everyday ongoing 50 50 50 50 Total 117 100 80 50 FY10 outcome/ Total 108.5 95 55 25 revised forecast Reduction
Slide 7: Results overview
For personal use only Results analysis Greg Hayes, CFO Results overview Actual Constant currency FY10 FY10 FY09 Growth US$M US$M US$M % Sales revenue 4,146.8 4,015.4 4,018.6 – Underlying profit 733.4 703.4 900.6 (22) Statutory operating profit 724.5 694.0 718.2 (3) Profit before tax 614.9 585.9 597.
Slide 8: Significant items
Significant items For personal use only FY10 FY09 Actual rates US$M US$M Underlying profit 733.4 900.6 Items within ordinary activities, but unusual due to size and nature: CHEP USA pallet quality program - (77.4) Walmart net transition impact - (29.0) Items outside the ordinary course of business:
Slide 9: CHEP overview by region; Americas sales revenue
CHEP – overview by region For personal use only Actual Constant US$M FY10 FY10 FY09 Growth % Americas 1,533.6 1,510.3 1,556.9 (3) EMEA 1,482.6 1,470.8 1,452.6 1 Asia-Pacific 390.9 334.4 323.4 3 Sales revenue 3,407.1 3,315.5 3,332.9 (1) Statutory operating profit 637.9 609.1 573.4 6 Profit margin (%)
Slide 10: Americas sales revenue highlights and operating profit
Americas – sales revenue highlights For personal use only US$M, actual rates Growth vs. FY09 58 USA 5% Canada 3% Latin America 5% Other 5% 1,471 Pallets RPC Automotive Other 96% <1% <1% 4% Growth % calculated on constant currency basis 17 Americas – statutory operating profit US$M 229 (42) 204 227 (
Slide 11: EMEA sales revenue and highlights
EMEA – sales revenue For personal use only US$M 30 1,471 11 (23) 1,453 FY09 Price, mix Organic volume Net new business FY10 All numbers are calculated at constant currency 19 EMEA – sales revenue highlights US$M, actual rates Growth vs. FY09 12 UK & Ireland 0% 99 Iberia 3% 109 France 2% CEE 25% MEA
Slide 12: EMEA operating profit; Asia-Pacific sales revenue
EMEA – statutory operating profit For personal use only US$M 36 319 287 (1) (18) 2 13 FY09 Vol, price, mix Quality Direct costs Other Significant FY10 items All numbers are calculated at constant currency 21 Asia-Pacific – sales revenue US$M 8 (12) 15 334 323 FY09 Price, mix Organic volume Net new b
Slide 13: Asia-Pacific sales revenue highlights and operating profit
Asia-Pacific – sales revenue highlights For personal use only US$M, actual rates Growth vs. FY09 33 Australia 1% 26 NZ 1% China 77% 63 Other 31% 269 Pallets RPC Automotive Other 69% 16% 7% 8% Growth % calculated on constant currency basis 23 Asia-Pacific – statutory operating profit US$M 3 63 3 (1)
Slide 14: Recall overview
For personal use only Recall Recall – overview Actual Constant US$M FY10 FY10 FY09 Growth % Americas 335.3 326.1 313.3 4 Europe 188.7 187.4 188.9 (1) RoW 215.7 186.4 183.5 2 Sales revenue 739.7 699.9 685.7 2 Statutory operating profit 123.1 114.0 95.9 19 Profit margin (%) 17 16 14 Growth % calculate
Slide 15: Recall sales revenue and service lines
Recall – sales revenue For personal use only US$M 17 700 8 (11) 686 FY09 Price, mix Organic vol Net new business FY10 All numbers are calculated at constant currency 27 Recall – sales revenue by service line US$M, actual rates Growth vs. FY09 73 DMS 4% SDS 4% 146 DPS 1% 521 2H Growth vs. 2H09 DMS 5%
Slide 16: Recall operating profit; cash flow and finance
Recall – statutory operating profit For personal use only US$M 8 (8) 7 114 11 96 FY09 Vol, price, mix Direct costs Other Significant items FY10 All numbers are calculated at constant currency 29 Cash flow and finance 15
Slide 17: Cash flow strength and financial position
Cash flow strength For personal use only US$M actual rates FY10 FY09 Change EBITDA 1,177.4 1,212.6 (35.2) Capital expenditure (496.5) (683.8) 187.3 Proceeds from disposals 88.0 104.6 (16.6) Working capital movement 14.7 25.8 (11.1) Irrecoverable pooling equipment provision 111.2 97.8 13.4 Provisions
Slide 18: Outlook
For personal use only Outlook Outlook FY11 guidance, subject to unforeseen circumstances and ongoing economic uncertainty • Sales growth in all business units • Continued quality investment, storage cost • Statutory operating profit: US$740M to US$780M* • Interest cost approximately US$115M • Lowe
Slide 19: Looking forward – growth opportunities; core strengths
For personal use only Looking forward – growth opportunities Tom Gorman, CEO Core strengths Global footprint Local networks Intellectual property Customer franchises Financial position 36 18
Slide 20: Current initiatives and emerging markets
Current initiatives For personal use only Geographic expansion • Emerging markets CHEP USA continuous improvement • Small and mid-sized company opportunity Product scope expansion Global growth platforms • Automotive • LeanLogistics 37 Emerging markets China and India • FY10 sales revenue
Slide 21: CHEP USA pallet opportunity and SME penetration
CHEP USA pallet opportunity For personal use only Source: Brambles internal estimates, June 2010 39 SME customer penetration CHEP USA – contracts won and lost in FY10 Annualised sales revenue impact (US$M) Issue Pre-Better Post-Better Total # contracts volumes Everyday Everyday won <100K 8.7 20.8 29
Slide 22: Expanding product scope; served sectors USA
Expanding product scope For personal use only Outside of full-size pallets, CHEP is under-penetrated in other pooled platforms in all regions • Alternative pallet sizes • Reusable plastic containers • Intermediate bulk containers • Automotive • Other services The opportunity for expansion is pot
Slide 23: Served sectors Australia; automotive opportunity
Served sectors – Australia For personal use only Opportunity and penetration estimate ~US$1BN ~US$0.3BN ~US$1BN ~US$0.3BN Transport (5%) 6% 6% 18% Auto 18% Other 6% 4% Industrial 17% 6% Auto (4%) 5% 11% IBCs 15% 22% Plastic bins 10% FMCG 41% RPCs 15% 30% 68% Pallets 38% Fresh 31% 24% Market CHEP Mar
Slide 24: Intercontinental automotive flows; LeanLogistics opportunity
Intercontinental automotive flows For personal use only CHEP automotive penetration vs. assessed opportunity EMEA Light vehicle FY10 sales production, USA, Light vehicle revenue: US$99M production, 2016*: 10M Containers: 11M China, 2016*: 16M Americas FY10 sales Intercontinental Intercontinental rev
Slide 25: Myth of the paperless office; bridge between paper and digital
Myth of the “paperless office” For personal use only Six key growth drivers: Global physical document • Regulation and oversight management opportunity*** • Outsourcing 6% • Identity theft and privacy concerns • Corporate sustainability 28% • Globalisation • Digitisation 1975: Xerox introduces t
Slide 26: Summary
Summary For personal use only Solid result, strong financial position CHEP opportunities • Global footprint • CHEP USA growth momentum • Product and platform expansion • Global automotive • LeanLogistics Recall opportunities • Strong growth in underlying business • Bridging paper and digital 4
Slide 27: Disclaimer statement
For personal use only 2010 full-year results Analyst presentation 19 August 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 28: Contact details
Contact details For personal use only Cathy Press Group Vice President, Capital Markets cathy.press@brambles.com +61 2 9256 5241 +61 419 290 745 James Hall Director, Investor Relations & External Communications james.hall@brambles.com +61 2 9256 5262 +61 401 524 645 53 Appendices 27
Slide 29: Glossary of terms and measures
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, foreign currency results are translated into US dollars at the applicable
Slide 30: CHEP USA plant operations and productivity trends
Appendix 2A CHEP USA – plant operations and transportation trends For personal use only Plant cost ratio* Transportation cost ratio (Plant costs / Sales) (Transportation costs / Sales) 45% 33% 40% 35% 28% 30% 23% 25% 20% 18% 02 03 04 05 06 07 08 09 10 2 3 4 5 6 7 8 9 0 0 0 0 0 0 0 0 0 1 FY FY FY FY
Slide 31: CHEP Europe plant operations and productivity trends
Appendix 3A CHEP Europe – plant operations and transportation trends For personal use only Plant cost ratio Transportation cost ratio (Plant costs / sales) (Transportation costs / sales) 35% 28% 30% 24% 25% 20% 20% 16% 2 3 4 5 6 7 8 9 0 02 03 04 05 06 07 08 09 10 0 0 0 0 0 0 0 0 1 FY FY FY FY FY FY
Slide 32: Currency mix and effective tax rate
Appendix 4 Currency mix For personal use only FY10 Currency mix at Actual FX rates US$M Total USD EUR GBP AUD Other Sales revenue 4,146.8 1,366.2 1,058.1 395.4 501.6 825.5 Statutory operating 724.5 127.0 198.1 86.7 97.3 215.4 profit Net debt 1 1,759.3 1,581.2 266.8 (130.0) 34.3 7.0 1 Net debt shown
Slide 33: Credit facilities and debt profile; capital expenditure
Appendix 6 Credit facilities and debt profile For personal use only US$BN Committed Maturity Type Debt drawn Headroom facilities < 12 months Bank 0.3 0.2 0.1 1 – 2 years Bank/144A¹/USPP² 0.8 0.3 0.5 2 – 3 years Bank 0.7 0.1 0.6 3 – 4 years Bank 0.9 0.2 0.7 4 – 5 years 144A¹/USPP² 0.4 0.4 - > 5 years
Slide 34: Paper prices; CHEP sales revenue by service line
Appendix 8 Paper prices – North America For personal use only US$M Actual rates 250 210 Price per ton 170 130 90 50 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 65 Appendix 9 CHEP – sales revenue by service line US$M, actual rates Growth vs. FY09 101 128