Brambles Limited · ASX:BXB
Brambles — FY2014 Earnings Presentation
27 slides from Brambles's earnings presentation, Aug 20, 2014
Slide 1: Full-year results
Full-year results 20 August 2014
Slide 2: Overview & Results Highlights
Overview & Results Highlights Tom Gorman, CEO 2
Slide 3: Key messages
Key messages Strategy on track and positive outlook for FY15 Sales revenue growth and Underlying Profit delivered in line with guidance Pallets: constant-currency sales and profit growth across all regions with strong operational efficiencies delivered in Europe; on track for further growth and effi
Slide 4: Key financials
Key financials Solid underlying performance (Continuing operations) FY14 result Change vs. FY13 (Actual FX) (Constant FX) Sales revenue US$5,405M 6% 7% Operating profit US$930M 5% 5% Profit after tax US$585M 5% 4% Underlying Profit US$960M 5% 6% Underlying basic earnings per share US 38.7¢ 5% 5% Ret
Slide 5: Delivery scorecard
Delivery scorecard Performance consistent with five-year targets Objective Progress FY14 constant-currency sales revenue growth of 7% Delivered US$66M delivered to FY14 (below target); US$100M of Pallets efficiencies and IFCO synergies by FY15 remainder to be delivered in FY15 Pallets EMEA Underlyin
Slide 6: Group sales revenue growth analysis
Group sales revenue growth analysis Solid contribution from all segments (US$M) 39 (31) 22 77 143 72 5,436 5,405 5,083 FY13 Pallets: Pallets: RPCs Containers Acquisitions FY14 FX FY14 net new organic volume, (excluding (constant FX) business price, mix acquisitions) 6
Slide 7: Constant-currency growth / Net new business wins (Pallets)
Net new business wins (Pallets) Momentum improving for FY15 Composition of Pallets’ sales revenue growth Implied forward contribution of prior year rollover (US$M) 7% 70 6% 60 Constant-currency growth 5% 50 4% 40 3% 30 2% 20 1% 10 0% 0 FY12 FY13 FY14 FY13 FY14 FY15 estimate Organic volume, price, mi
Slide 8: Pallets segment result summary
Pallets segment result summary ROCI improvement and strong Europe performance FY14 Change vs FY13 Improved North America and Europe underlying conditions Actual Constant US$M FX FX Net new business wins contribution Americas 2,302 4% 6% of 2% sales revenue growth EMEA 1,447 7% 5% Emerging markets co
Slide 9: RPCs segment results summary
RPCs segment results summary Sales growth improving; one-offs and short-term profit impacts FY14 Change vs FY13 Improved second-half sales momentum Actual Constant in North America US$M FX FX Strong growth contribution from all Europe 581 14% 9% other regions North America 174 7% 7% One-off impacts
Slide 10: Containers segment result summary
Containers segment result summary Improved margins with stronger sales growth outlook for FY15 FY14 Change vs FY13 7% constant-currency sales revenue Actual Constant growth without acquisitions US$M FX FX Strong full-year growth performance Automotive Solutions 162 8% 8% from CCC Pallecon Solutions
Slide 11: Financial Analysis
Financial Analysis Zlatko Todorcevski, CFO 11
Slide 12: Group operating profit growth analysis
Group operating profit growth analysis Positive performance but cost challenges remain (US$M) 25 (81) 7 141 (39) (11) 1 929 930 887 FY13 Volume, Acquisitions Operational Direct costs Other Significant FY14 FX FY14 price, mix efficiencies Items (constant FX) 12
Slide 13: Pallets asset efficiency metrics
Pallets asset efficiency metrics Improving replacement capex trend sustained Replacement/growth capex (left-hand side) and DIN ratio (right-hand side) 800 16% 14% 700 Total pooling equipment capex (US$M) 12% 600 DIN/sales revenue 10% 500 8% 6% 400 4% 300 2% 200 0% FY10 FY11 FY12 FY13 FY14 Replacemen
Slide 14: Pallets plant cost ratio
Pallets plant cost ratio Efficiencies in Europe offset by high US repair costs Plant costs to sales revenue 44% 40% 36% 32% 28% 24% FY10 FY11 FY12 FY13 FY14 Americas Americas ex. PMS EMEA Asia-Pacific Total 14
Slide 15: Pallets Americas operating profit analysis
Pallets Americas operating profit analysis Asset management improvement driving higher repair costs (US$M) 13 (45) Reduced IPEP expense 48 9 (12) (9) Higher repair intensity Transport and depreciation 428 415 419 Profitable sales growth in CHEP Margin contraction in PMS FY13 Volume, Operational Dire
Slide 16: Pallets EMEA operating profit analysis
Pallets EMEA operating profit analysis Strong result; positive operating leverage (US$M) Ahead of target with supply-chain efficiencies 7 15 8 (1) (8) 41 Impairments to enable introduction of German quarter pallet 330 323 Positive operating leverage 268 Stronger organic conditions Pricing and mix be
Slide 17: RPCs operating profit analysis
RPCs operating profit analysis Second-half rebound in sales growth (US$M) Increased depreciation Higher plant and transport costs 26 (20) (19) <1 (1) IFCO CEO/CFO retirement Higher marketing costs South America impairment 138 Investment for growth 125 124 Organic volume growth in all regions Strong
Slide 18: Improved operating cash flow
Improved operating cash flow Solid result driven by EBITDA and working capital movement (US$M) FY14 FY13 Change EBITDA 1,488 1,409 79 Capital expenditure (854) (846) (8) Proceeds from sale of PP&E 78 100 (22) Working capital movement 11 (49) 60 IPEP expense 88 102 (14) Provisions/other 17 (19) 36 Ca
Slide 19: Strong balance sheet position
Strong balance sheet position Supported by recent €500M European medium-term note issue June 2014 June 2013 Net debt (US$) 2,362 2,714 Average term of committed facilities (years) 4.1 3.6 FY141 FY132 EBITDA/net finance costs (x) 13.2 14.6 Net debt/EBITDA (x) 1.59 1.68 1 For FY14, based on continuing
Slide 20: One Better program execution
One Better program execution Three key streams driving a more sustainable business ~30% of US$100M cost-outs cost-outs delivered delivered vs. FY14 At least 2 percentage point reduction in Aligning procurement activities overheads to sales Better Buying revenue ratio Focus on both direct and indirec
Slide 21: Strategy & Outlook
Strategy & Outlook Tom Gorman, CEO 21
Slide 22: A long-term perspective
A long-term perspective Driving performance beyond the current horizon 1 2 Embedded investment proposition and five-year plan: One Better enablement - Maintain network advantage - High single digit constant-currency X 7 percentage sales revenue growth - ROCI expansion to 20% by FY19 ( ) ial us Prote
Slide 23: Assessing the portfolio
Assessing the portfolio Ongoing emphasis on execution to create value CHEP Middle East RPCs ANZ & & Africa (Pallets) South Africa CHEP Catalyst & Chemical Containers FY14 sales revenue growth -------> Moremature <5 hse eee ee ee CHEP Pallecon Solutions CHEP Australia & New Zealand (Pallets) IFCO Sou
Slide 24: Outlook for FY15
Outlook for FY151 Strong profitable growth with leverage to bottom line Sales revenue in line with five-year target High single digit percentage growth, at constant currency Underlying Profit of US$1,030M to US$1,060M (30 June 2014 FX rates) Equates to growth of 7% to 10%2 Incremental improvement in
Slide 25: Q&A
Q&A
Slide 26: Disclaimer
Disclaimer 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 observe such restrictions. This
Slide 27: www.brambles.com
Brambles one — . one business -\one team 4 www.brambles.com