Slide 1: Cover letter: copies of slides for investor presentation and webcast
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 18 August 2016 The Manager-Listings Australian Securities Exchange Limited Exchange Centre 20 B
Slide 2: Full-Year 2016 Results: Overview
For personal use only Full-Year 2016 Results 18 August 2016 Overview Tom Gorman, CEO 2
Slide 3: Group safety performance and key messages
Group safety performance For personal use only Brambles Injury Frequency Rate 25 (per million man hours) 20 15 10 5 0 FY12 FY13 FY14 FY15 FY16 3 Key messages Strong FY16 result, momentum expected to continue in FY17 Sales growth 8% and Underlying Profit growth 9%, in line with upgraded guidance Acce
Slide 4: CEO retirement and succession plan
For personal use only CEO retirement & succession Stephen Johns, Chairman 5 CEO retirement and succession plan Continuing to build sustainable value from a solid foundation Tom Gorman elects to retire after 7 successful years as CEO Retires as CEO and Director on 28 February 2017 Leaves the Group on
Slide 5: CEO succession plan and transition
CEO retirement and succession plan For personal use only Tom Gorman decision: Right time. Brambles in great shape. Solid foundation for succession Well-established strategy and foundation for profitable growth Brambles refocused as supply-chain logistics solutions company Expanded into new markets a
Slide 6: Highlights of FY16 result
Highlights of FY16 result For personal use only Strong underlying performance (Continuing operations) FY16 result Change vs. FY15 Actual FX Constant FX Sales revenue US$5,535M 2% 8% Operating profit US$915M (3)% 5% Profit after tax US$557M (5)% 2% Earnings per share US35.3¢ (6)% 1% Dividends per sha
Slide 7: FY16 growth trends by segment
FY16 growth trends by segment For personal use only Change in constant FX Sales revenue Underlying Profit ROCI Pallets Americas 8% 8% (0.1)pp 44% of Group sales revenue Pallets Americas (Pooled)1 9% 14% 1.1pp Pallets EMEA 6% 14% 1.2pp 24% of Group sales revenue Pallets Asia-Pacific 5% 3% 0.8pp 6% of
Slide 8: FY16 sales growth by segment
FY16 sales growth by segment For personal use only Acceleration supported by growth capex investment Pallets: developed Pallets: emerging RPCs Containers 64% of Group revenue 10% of Group revenue 18% of Group revenue 8% of Group revenue North American Recycled Net New Business Organic 16% Price/Mix
Slide 9: Group profit analysis
Group profit analysis (US$M) For personal use only Efficiencies largely offsetting cost pressures in US pallets; inflationary pressures in Latin America pallets 6 (32) (21) (5) (15) (39) 192 In line with capex to (80) support growth, primarily in Pallets and Europe RPCs Strong delivery of supply cha
Slide 10: Pallets EMEA and Asia-Pacific results analysis
Pallets EMEA: results analysis For personal use only FY16 Change vs. FY15 Underlying Profit bridge (US$M) Actual Constant (US$M) FX FX 7 (2) (3) 4 Western Europe 745 (2)% 6% (36) UK & Ireland 339 (7)% - 41 Cent & East Europe 110 8% 20% Europe 1,194 (3)% 5% 391 Africa, India & M.E. 149 (2)% 16% 355 3
Slide 11: RPCs and Containers results analysis
RPCs: results analysis For personal use only FY16 Change vs. FY15 Underlying Profit bridge (US$M) Actual Constant 6 (US$M) (12) (1) FX FX 1 (3) 22 (14) Europe 621 7% 15% North America 199 4% 4% 145 Rest of world 172 19% 38% 132 131 Sales revenue1 992 8% 16% Underlying Profit 131 0% 10% Margin 13.2%
Slide 12: Indirect cost reduction update
Indirect cost reduction update For personal use only Overhead costs / sales revenue Cumulative One Better cost reductions of 17% US$34M delivered to end of FY16 On track to deliver FY19 targets US$100M total program At least 2 percentage point reduction in 16% overheads to sales ratio to 13.5% K
Slide 13: Cash flow reconciliation and balance sheet position
Cash flow reconciliation For personal use only Change (US$M) FY16 FY15 (Actual FX) EBITDA 1,539 1,533 6 Capital expenditure (1,080) (983) (98) Proceeds from sale of property, plant and equipment 104 78 25 Working capital movement (147) 4 (151) IPEP expense 75 80 (5) Other 24 17 7 Cash Flow from Oper
Slide 14: Strategy & Outlook: executing against strategic goals
For personal use only Strategy & Outlook Tom Gorman, CEO 25 Executing against our strategic goals FY16 progress Investing in network Growth capex to support customers and leverage network position advantage Brand and go-to-market investment Creation of BXB Digital and commitment to invest US$1
Slide 15: Delivering higher returns
Delivering higher returns For personal use only FY16 ROCI: 15.3% FY16 Adjusted ROCI: 17.2%1 FY19 ROCI: 20% QUALITY - US durability program - Mitigation of input cost pressures - Pricing and sales mix improvements Average Capital Average Capital - Direct cost efficiencies Invested: Invested: - One Be
Slide 16: Outlook and key points recap
Outlook For personal use only (Continuing operations, US$M 30 June 2016 FX) FY17 Guidance1 Sales revenue2 growth 7-9% US$1,055M - US$1,075M Underlying Profit3 (reflecting growth 9-11%) Net interest costs US$105M - US$110M Effective tax rate on Underlying Profit 29.5% Growth capex US$400M 1 FY17 assu
Slide 17: Q&A
For personal use only Q&A Full-Year 2016 Results 18 August 2016
Slide 18: Glossary of terms and measures
For personal use only Appendices Appendix 1 Glossary of terms and measures Except where noted, common terms and measures used in this document are based upon the following definitions: Actual currency/FX Results translated into US dollars at the applicable actual monthly exchange rates ruling in eac
Slide 19: Glossary of terms and measures (continued)
Appendix 1 For personal use only Glossary of terms and measures (continued) Except where noted, common terms and measures used in this document are based upon the following definitions: DIN The sum in a period of: - Depreciation expense; - Irrecoverable Pooling Equipment Provision expense; and - Net
Slide 20: Underlying Profit currency reconciliation
Appendix 2 For personal use only Underlying Profit currency reconciliation (US$M) FY16 result FY16 result FY17 guidance (30 June 2015 FX) (actual FX) (30 June 2016 FX, excluding Oil & Gas1) 1,055 – 1,075 Growth: Growth: 1% 9-11% Growth: 9% 1,031 987 993 970 944 FY15 result FY16 result FY15 result FY
Slide 21: Summary of FY19 objectives
Appendix 4 For personal use only Summary of FY19 objectives Average sales revenue growth (constant FX) “High single digits” (7-9%) US$100M by FY19 One Better indirect cost reductions (vs. FY14) (US$34M delivered to date) Average Underlying Profit growth (constant FX) Positive leverage on sales growt
Slide 22: Reconciliation to statutory profit
Appendix 6 For personal use only Reconciliation to statutory profit Earnings Per (US$M, Continuing operations, Actual FX) Operating Profit Tax Profit after tax Share FY16 FY15 FY16 FY15 FY16 FY15 FY16 FY15 Underlying Profit 993.2 986.9 (256.1) (253.2) 623.1 621.8 39.5 39.7 Acquisitions related cos
Slide 23: Pallets: net plant costs and replacement capex
Appendix 8 For personal use only Pallets: net plant costs/sales revenue 46% 42% 38% 34% 30% 26% 22% FY12 FY13 FY14 FY15 FY16 Americas EMEA Asia-Pacific Total 43 Appendix 9 Pallets: Replacement capital expenditure (DIN)/sales revenue 14.0% 13.5% 13.0% 12.5% 12.0% FY12 FY13 FY14 FY15 FY16 44
Slide 24: Major currency exchange rates
Appendix 10 For personal use only Major currency exchange rates1 USD exchange rate: USD EUR GBP AUD CAD MXN ZAR CHF BRL FY16 1.0000 1.1058 1.4719 0.7270 0.7548 0.0576 0.0689 1.0146 0.2713 Average FY15 1.0000 1.1946 1.5734 0.8301 0.8505 0.0697 0.0876 1.0605 0.3748 30 June 2016 1.0000 1.1123 1.3453 0.
Slide 25: Credit facilities and debt profile
Appendix 12 For personal use only Credit facilities and debt profile Committed Uncommitted Maturity Type Debt drawn Headroom facilities facilities (US$B at 30 June 2016) <12 months Bank/USPP1/Other 0.3 0.3 0.2 0.4 1 to 2 years Bank/EMTN2/Other 1.1 0.7 0.4 2 to 3 years Bank/USPP1/Other 0.6 - 0.6 3 to
Slide 26: Capital expenditure on Property, Plant and Equipment
Appendix 14 For personal use only Capital expenditure on Property, Plant and Equipment (Accruals basis, US$M) 1,035 1,095 20 878 866 908 44 93 13 141 14 88 120 294 151 150 188 97 102 569 577 592 620 542 69 80 80 70 68 FY12 FY13 FY14 FY15 FY16 Other PP&E Replacement (DIN) Pallets growth RPCs growth C
Slide 27: Addressable opportunity: Pallets
Appendix 16a For personal use only Addressable opportunity: Pallets Total opportunity: US$4.1B US$1.3B US$4.8B US$0.3B US$1.1B Notes: Addressable opportunity reflects Brambles’ estimate of addressable FMCG standard-size opportunity in currently served countries only. The opportunity reflects an as
Slide 28: Disclaimer
Disclaimer 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 observe s