Slide 1: Full-Year 2023 Results presentation
Full-Year 2023 Results presentation 30 August 2023
Slide 2: Results highlights
1 Results highlights GRAHAM CHIPCHASE, CEO
Slide 3: FY23 results financial highlights
3 FY23 results Financial highlights financial • Sales revenue of +14% driven by price realisation to recover both operating and capital cost-to-serve increases; volumes down (2)% summary on the prior corresponding period • Underlying Profit +19% as contributions from pricing actions offset input-cos
Slide 4: Operating environment
4 Operating environment Uncertain macroeconomic conditions with early signs of moderating inflationary pressures and inefficiencies across global supply chains easing in 2H23 FY23 key market dynamics Supply chain • Retailers and manufacturers continued to hold elevated inventory levels to de-risk su
Slide 5: FY24 outlook
5 FY24 outlook Revenue growth, operating leverage and positive Free Cash Flow generation expectations in line with investor value proposition For the year ended 30 June 2024, Brambles expects: • Sales revenue growth of between 6-8% at constant currency; • Underlying Profit growth of between 9-12% at
Slide 6: Shaping Our Future transformation
6 Shaping Digital transformation demonstrating value today and shaping the Brambles of the Future Our Future • Advanced analytics capabilities including artificial intelligence and machine learning on both existing and new data, delivering benefits in removing inefficiencies from our transformation
Slide 7: Shaping Our Future scorecard
7 Shaping Our Future scorecard Asset Efficiency & Sustainability & ESG Digital Transformation Customer Business Excellence Network Productivity Outcomes Transform information and digital Deliver unrivalled value and Improve productivity and Reinvent the organisation, Pioneer regenerative supply insi
Slide 8: FY25 pathways
8 FY25 pathways Plans in place to deliver Asset Efficiency targets despite material market-related headwinds. Revised pathway for automation to support delivery of Network Productivity targets Reduce uncompensated pallet losses1 Improve pallet pool utilisation: Rollout automated repair process to by
Slide 9: Digital transformation driving new sources of value
9 Digital transformation driving new sources of value Data points and learnings to inform how digital capabilities can help shape the future of pooling and customer offering FY23 progress FY23 examples of value created FY24 priorities • 5 advanced analytics solutions live, • ‘Detect’ algorithm ident
Slide 10: FY23 Sustainability and ESG highlights
11 FY23 Sustainability and ESG highlights ESG ASSESSMENTS Significant progress made towards becoming a regenerative business #1 in DJSI Industry category Further progress towards 2025 Sustainability Targets including: • Brambles Injury Frequency Rate of 3.8 (FY22: 4.1) Maximum AAA rating, top 9% • 3
Slide 11: Financial overview
2 Financial overview NESSA O’SULLIVAN, CFO All references to growth rates, unless otherwise stated, are at constant FX rates.
Slide 12: FY23 results summary
13 FY23 results Summary US$m FY23 Change vs. FY22 • Sales revenue +14% reflecting commercial discipline in recovering both operating and capital cost-to-serve increases Continuing operations Actual FX Constant FX including higher pallet prices and longer cycle times. Volumes Sales revenue 6,076.8 10
Slide 13: FY23 Group sales revenue growth
14 FY23 Group sales revenue growth Growth driven by pricing to recover cost-to-serve increases. Volume impacted by pallet availability constraints particularly in 1H23, softness in underlying demand and some destocking in 2H23 Growth across all segments Growth weighted to price realisation FY23 Sale
Slide 14: Group profit analysis (US$m)
15 Group profit analysis (US$m) Profit growth of 19% as pricing and transformation benefits offset inflation and other operating cost increases to deliver strong earnings growth Mainly due to increased losses in Fuel and transport inflation the US business, impacted by US$(46)m, longer haulage dista
Slide 15: CHEP Americas
16 CHEP Americas Margin and ROCI improvements driven by pricing to recover input-cost inflation, higher losses driven by market dynamics and overhead investments to enable transformation benefits FY23 Change vs. FY22 FY23 performance Actual Constant • Pallets revenue +14% driven by pricing initiativ
Slide 16: US pallets revenue
17 US pallets revenue Price and mix benefits recovered cost-to-serve increases. Volume decline due to softening consumer demand, pallet availability challenges in 1H23 and some reduction in inventories across supply chains in 2H23 US pallets revenue growth breakdown FY23 revenue growth components: (
Slide 17: CHEP EMEA
18 CHEP EMEA Operating leverage, margin uplift and continued strong ROCI FY23 Change vs. FY22 FY23 performance Actual Constant • Pallets revenue +15% driven by continued price (US$m) FX FX momentum to recover cost-to-serve increases and net new business growth across the region Europe 1,710.9 8% 16%
Slide 18: EMEA sales growth
19 EMEA sales growth Price realisation to recover cost-to-serve increases. Overall volumes flat to prior year as net new business wins offset lower issue volumes with existing customers CHEP EMEA revenue growth breakdown (constant FX) FY23 revenue growth components: • Price/mix growth of 14% largely
Slide 19: CHEP Asia-Pacific
20 CHEP Asia-Pacific Strong historical margin and ROCI performance sustained in challenging operating environment, supported by one-off insurance proceeds in year FY23 Change vs. FY22 FY23 performance Actual Constant • Pallets revenue +12% driven by a combination of price (US$m) FX FX realisation, c
Slide 20: Corporate Segment
21 Corporate Segment Higher employee-related costs including wage inflation and increased investments in capability and training to support delivery of transformation programme benefits FY23 Change vs. FY22 FY23 performance Actual Constant • Shaping Our Future investments of (US$m) FX FX US$110.6m i
Slide 21: Asset efficiency
22 Asset efficiency Pooling capex to sales ratio improved by 6pts, exceeding FY23 guidance, driven by strong revenue growth, asset productivity initiatives and destocking FY23 pooling capex of US$1,421m (accruals basis) decreased Pooling capex to sales ratio US$169m at constant currency compared to
Slide 22: Cash flow
23 Cash flow Positive Free Cash Flow generation of US$180m after funding increased dividends (US$m, actual FX) FY23 FY22 Change • Free Cash Flow before dividends of US$498.1m increased US$411.9m EBITDA1 2,082.2 1,841.5 240.7 • Operating cash flow increased by US$398.0m reflecting higher earnings and
Slide 23: Balance sheet
24 Balance sheet Continued to maintain a strong balance sheet with high levels of liquidity and interest cover • Net debt increase of US$7m reflects the benefits June 23 Jun 22 of US$180m of Free Cash Flow after dividends and ~US$40m of divested debt relating to China, offset by Net debt1 US$2,724m
Slide 24: FY24 Outlook Considerations
25 FY24 Outlook Considerations Revenue growth, operating leverage and positive Free Cash Flow • FY24 sales revenue guidance growth of between 6-8% at constant currency – Sales revenue growth weighted to pricing reflecting rollover contributions from FY23 pricing initiatives and ongoing focus on reco
Slide 25: FY24 Outlook Considerations
26 FY24 Outlook Considerations Revenue growth, operating leverage and positive Free Cash Flow • Positive Free Cash Flow before dividends of between US$450 to US$550m – Pooling capex to sales improvement of ~5-7 ppts driven by asset productivity initiatives, retailer and manufacturer progressive inve
Slide 26: Summary
27 Summary Outstanding financial and operational outcomes with ongoing investment for future success FY23 result ahead of revised guidance with strong revenue growth, operating leverage and a return to positive Free Cash Flow generation Improved pallet availability and service levels to keep custome
Slide 27: Full-Year 2023 Results presentation
Full-Year 2023 Results presentation 30 August 2023
Slide 28: Appendix
3 Appendix Brambles
Slide 29: Sales revenue by region and sector
30 Appendix 1 Brambles: Sales revenue by region and sector FY23 sales revenue by region FY23 sales revenue by sector1 India, Middle East, Eastern Türkiye, Africa Europe Asia 0.5% Other Auto 3.3% 4.2% 3.9% Packaging 10.1% 2.1% General Latin retail America 2.1% 8.9% Storage & Dist. ANZ USA & 2.0% 8.0%
Slide 30: Major currency exchange rates
31 Appendix 2 Major currency exchange rates1 USD EUR AUD GBP CAD MXN ZAR PLN BRL FY23 1.0000 1.0510 0.6750 1.2110 0.7487 0.0532 0.0566 0.2256 0.1951 Average FY22 1.0000 1.1220 0.7223 1.3264 0.7893 0.0491 0.0651 0.2424 0.1920 30 June 23 1.0000 1.0867 0.6615 1.2614 0.7547 0.0584 0.0534 0.2443 0.2059 A
Slide 31: FY23 currency mix
32 Appendix 3 FY23 currency mix (US$m) Total USD EUR AUD GBP CAD MXN ZAR PLN BRL Other1 Sales revenue 6,076.8 2,486.8 1,245.3 425.7 408.5 377.3 370.0 179.3 119.0 81.9 383.0 FY23 share 100% 41% 21% 7% 7% 6% 6% 3% 2% 1% 6% FY22 share 100% 40% 21% 7% 7% 6% 5% 4% 2% 1% 7% Net debt2 2,724 1,236 1,553 (28
Slide 32: Credit facilities and debt profile
33 Appendix 4 Credit facilities and debt profile Committed Uncommitted Maturity Type1 Debt drawn Headroom facilities facilities (US$b at 30 June 2023) <12 months Bank/EMTN2 0.7 0.3 0.6 0.4 1 to 2 years Bank 0.2 - - 0.2 2 to 3 years Bank/144A3 0.6 - 0.5 0.1 3 to 4 years Bank - - - - 4 to 5 years Bank
Slide 33: Net plant and transport costs/sales revenue
34 Appendix 5 Net plant and transport costs/sales revenue Net plant cost/sales revenue Net transport cost/sales revenue (before NA lumber surcharge1) (Net of transport & fuel surcharges) FY23 FY22 FY23 FY22 CHEP Americas 38.0% 38.7% 19.6% 23.2% CHEP EMEA 23.6% 25.2% 21.7% 22.7% CHEP Asia-Pacific2 30
Slide 34: CHEP Americas: Underlying Profit analysis
35 Appendix 6a CHEP Americas: Underlying Profit analysis (US$m) (7) (172) (43) (38) 479 (40) (88) 0 573 573 482 FY22 Volume, North America Plant costs Transport Depreciation IPEP Other 3 FY23 FX FY23 Underlying price, surcharge costs Underlying Underlying Profit mix1 income 2 Profit Profit (Constant
Slide 35: CHEP EMEA: Underlying Profit analysis
36 Appendix 6b CHEP EMEA: Underlying Profit analysis (US$m) (48) (45) (32) (16) 292 (68) (37) 544 507 461 FY22 Volume, Plant costs Transport Depreciation IPEP Other 2 FY23 FX FY23 Underlying price, costs Underlying Underlying 1 Profit mix Profit Profit (Constant FX) (Actual FX) 1 Sales growth net of
Slide 36: CHEP Asia-Pacific: Underlying Profit analysis
37 Appendix 6c CHEP Asia-Pacific: Underlying Profit analysis (US$m) (6) (5) (3) 8 44 (13) (13) 194 181 169 2 FY22 Volume, Plant Transport Depreciation Other AU Flood FY23 FX FY23 Underlying price, costs costs Proceeds Underlying Underlying Profit mix1 Profit Profit (Constant FX) (Actual FX) 1 Sales
Slide 37: Capital expenditure on Property, Plant and Equipment
38 Appendix 7a Capital expenditure on Property, Plant and Equipment (Accruals basis, US$m) 1,811 Methodology 142 • ‘Replacement’ capex is calculated as the sum 1,567 of equipment purchases resulting from asset 146 losses and asset scraps in the period 1,219 • ‘Growth and other’ includes capex relati
Slide 38: Regional asset efficiency (pooling capex to sales ratio)
39 Appendix 7b Regional asset efficiency (pooling capex to sales ratio) North America Latin America EMEA 28.6% 32.7% 39.7% 23.1% 23.8% 23.2% 26.7% 27.0% 25.6% 16.4% 17.6% 16.9% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 • FY21 increase largely due to impact of lumber • Increase in F
Slide 39: Change in constant currency reporting of hyperinflation economies
40 Appendix 8 Change in constant currency reporting of hyperinflation economies - impact on previously reported constant FX sales revenue growth Change in Methodology Brambles Group • During 4Q23, Brambles updated its methodology for translating Sales revenue growth at constant FX rates 1Q231 1H23 9
Slide 40: Glossary of terms and measures
41 Appendix 9 Glossary of terms and measures Except where noted, common terms and measures used in this document are based upon the following definitions: Actual currency/Actual FX Current period results (excluding hyperinflationary economies) translated into US dollars at the applicable actual mont
Slide 41: Glossary of terms and measures
42 Appendix 9 Glossary of terms and measures Except where noted, common terms and measures used in this document are based upon the following definitions: Like-for-like revenue Sales revenue in the reporting period relating to volume performance of the same products with the same customers as the pr
Slide 42: Disclaimer
43 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. T
Slide 43: Investor & media contacts
44 Investor & Investors: media contacts Raluca Chiriacescu Vice President, Investor Relations +44 7810 658044 raluca.chiriacescu@brambles.com Suk Hee Lee Director, Investor Relations +61 433 343 888 sukhee.lee@brambles.com Media: Sandra Tang Senior Manager, Media & Communications +61 404 066 107 san