Slide 1: 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 22 August 2013 The Manager-Listings Australian Securities Exchange Limited Exchange Centre 20 B
Slide 2: Full-Year Results
For personal use only Full-Year Results 22 August 2013 Agenda Highlights of the Year Tom Gorman, CEO Analysis & Outlook Zlatko Todorcevski, CFO Strategic Context Tom Gorman, CEO 2
Slide 3: Key Messages
Key Messages Key messages For personal use only • Underlying Profit delivered within guidance range • Strong improvement in operating cash flow • Pooling Solutions – Continued sales growth in all regions led by Pallets Americas, RPCs – Improving sales mix and operational efficiencies – Asset efficie
Slide 4: Key FY13 financial outcomes and delivery scorecard
Highlights of the Year Key FY13 financial outcomes For personal use only Sales revenue US$5,890M 5% Operating profit US$1,011M 8% Profit after tax1 US$641M 11% Basic EPS1 US41.2¢ 6% Underlying Profit US$1,057M 5% Free cash flow1 US$509M US$329M Dividends per share A27.0¢ A1.0¢ 1Includes contribution
Slide 5: Continued strong sales revenue growth
Highlights of the Year Continued strong sales revenue growth (US$M) For personal use only 54 (25) (98) 88 115 131 5,988 5,890 5,625 FY12 Pallets - net Pallets - RPCs and Acquisitions Recall FY13 FX FY13 actual new wins other Containers Constant currency 7 Highlights of the Year Ongoing new business
Slide 6: Operational highlights: Pallets Americas and EMEA
Highlights of the Year Operational highlights: Pallets – Americas For personal use only • Sales revenue up 8% to US$2,206M • Strong contribution from all businesses – Led by CHEP USA customer wins – Supported by growth in all other businesses • Underlying Profit up 15% to US$419M – Operational effic
Slide 7: Operational highlights: Pallets Asia-Pacific and RPCs
Highlights of the Year Operational highlights: Pallets – Asia-Pacific For personal use only • Sales revenue up 4% to US$392M – Constant currency sales revenue up 5% • Modest growth amid subdued economic conditions in ANZ • Operations in Asia continue to grow • Underlying Profit up 3% to US$79M – Con
Slide 8: Operational highlights: Containers and Recall
Highlights of the Year Operational highlights: Containers For personal use only • Sales revenue up 18% to US$326M – Constant currency sales revenue up 20% • Pallecon operations acquired in December 2012 • New business wins in CHEP Aerospace Solutions, US IBC • Weak industry conditions in Australian
Slide 9: Analysis & Outlook: Results summary
For personal use only Analysis & Outlook Zlatko Todorcevksi CFO Analysis & Outlook Results summary Constant Continuing operations Actual FX FX (US$M) FY13 FY12 Change Change Sales revenue 5,889.9 5,625.0 5% 6% Underlying Profit 1,057.2 1,009.7 5% 7% Operating profit 1,011.2 939.2 8% 10% Profit after
Slide 10: Pallets: results summary and Americas operating profit
Analysis & Outlook Pallets: results summary For personal use only Actual FX Constant FX (US$M) FY13 FY12 Change Change Americas 2,205.8 2,041.3 8% 8% EMEA 1,346.8 1,326.8 2% 5% Asia-Pacific 391.8 375.8 4% 5% Sales revenue 3,944.4 3,743.9 5% 7% Operating profit 760.0 691.4 10% 12% Significant Items 2
Slide 11: Pallets EMEA and Asia-Pacific operating profit
Analysis & Outlook Pallets – EMEA: operating profit (US$M) For personal use only 7 (6) 43 (23) (9) (13) 0 281 269 268 FY12 Volume/ Efficiencies Business Other Significant FY13 FX FY13 price/mix development Items actual Constant currency 19 Analysis & Outlook Pallets – Asia-Pacific: operating profit
Slide 12: RPCs: results summary and operating profit
Analysis & Outlook RPCs: results summary For personal use only Actual FX Constant FX (US$M) FY13 FY12 Change Change Europe 510.9 489.5 4% 8% North America 162.7 138.3 18% 18% South America 21.9 24.1 (9)% 3% ANZ & South Africa 117.3 107.6 9% 12% Sales revenue 812.8 759.5 7% 10% Operating profit 138.4
Slide 13: Containers: results summary and operating profit
Analysis & Outlook Containers: results summary For personal use only Actual FX Constant FX (US$M) FY13 FY12 Change Change Automotive Solutions 150.2 154.8 (3)% - Pallecon Solutions 78.3 43.1 82% 85% Aerospace Solutions 59.3 40.8 45% 44% Catalyst & Chemical Containers 37.9 37.9 - 1% Sales revenue 325
Slide 14: Recall: results summary and operating profit
Analysis & Outlook Recall: results summary For personal use only Actual FX Constant FX (US$M) FY13 FY12 Change Change Americas 349.2 370.7 (6)% (4)% Europe 199.5 218.9 (9)% (7)% Rest of World 258.3 255.4 1% 2% Sales revenue 807.0 845.0 (4)% (3)% Operating profit 128.2 160.1 (20)% (18)% Significant I
Slide 15: Cash flow and capital expenditure trend
Analysis & Outlook Cash flow For personal use only (US$M) FY13 FY12 Change EBITDA 1,614.2 1,561.9 52.3 Capital expenditure (905.1) (949.4) 44.3 Proceeds from sale of PP&E 110.5 93.5 17.0 Working capital movement (24.8) (107.9) 83.1 IPEP expense 101.5 100.1 1.4 Provisions/other (37.3) (107.0) 69.7 Ca
Slide 16: Strong balance sheet and FY14 outlook
Analysis & Outlook Strong balance sheet For personal use only June 2013 June 2012 Net debt (US$M) 2,714 2,690 Net debt to net debt plus equity (%) 47.3 49.5 FY13 FY12 Covenants EBITDA/net finance costs (x) 14.6 10.3 3.5 (min) Net debt/EBITDA (x) 1.68 1.72 3.5 (max) 29 Analysis & Outlook FY14 outlook
Slide 17: Strategic Context: Recapping our journey
For personal use only Strategic Context Tom Gorman CEO Strategic Context Recapping our journey August 2011 Pooling Solutions 2008 LeanLogistics acquisition focus, new structure and November 2011 bolsters logistics management Canadian pallet capability intention to October 2009 management December 20
Slide 18: Delivering our diversification strategy
Strategic Context Delivering our diversification strategy For personal use only Pooling Solutions sales revenue composition Pallets emerging markets sales revenue (US$M) 600 6% 6% 5% 9% 16% 500 10% 400 300 80% 68% 200 100 0 FY09 FY13 FY09 FY10 FY11 FY12 FY13 Pallets - developed Pallets - emerging RP
Slide 19: Pallets: capital efficiency and cost base
Strategic Context Pallets: improving capital efficiency For personal use only Return on capital invested Sales revenue/Average Capital Invested 24% 1.1 22% 20% 1.0 18% 16% 0.9 14% 12% 0.8 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 Americas EMEA Asia-Pacific Total Americas EMEA Asia-Pacific To
Slide 20: Global Pooling Solutions agenda
Strategic Context Global Pooling Solutions agenda For personal use only Allocate capital to Disciplined RPCs and Containers growth high value growth Entry into high potential emerging markets opportunities New pallet offerings in developed businesses Focus areas Emphasise Deliver savings through glo
Slide 21: Q&A
For personal use only Q&A www.brambles.com
Slide 22: Appendix 1: Glossary of terms and measures
For personal use only Appendices 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 rates/FX In the statutory financial statements, Brambles translates foreign currency results int
Slide 23: Appendix 1: Glossary of terms and measures (continued)
Appendices Appendix 1: Glossary of terms and measures (continued) For personal use only Except where noted, common terms and measures used in this document are based upon the following definitions: Operating profit Operating profit is profit before finance costs and tax, as shown in the statutory fi
Slide 24: Appendix 3: Major currency exchange rates
Appendices Appendix 3: Major currency exchange rates For personal use only USD vs. USD EUR AUD GBP CAD ZAR MXN FY13 1.0000 1.2939 1.0212 1.5667 0.9919 0.1124 0.0779 Average FY12 1.0000 1.3325 1.0304 1.5834 0.9944 0.1289 0.0760 30 June 13 1.0000 1.3015 0.9134 1.5206 0.9507 0.1010 0.0772 As at 30 June
Slide 25: Appendix 5: Significant Items and credit facilities
Appendices Appendix 5: Significant Items For personal use only (US$M) actual FX FY13 FY12 Underlying Profit 1,057.2 1,009.7 Significant Items: Acquisition-related costs (4.6) (2.8) Restructuring & integration costs (22.0) (53.2) Recall transaction costs (4.1) (21.2) Impairment of software developmen
Slide 26: Appendix 7: Efficiencies and synergies
Appendices Appendix 7: Efficiencies and synergies For personal use only (US$M) Actual Forecast Incremental year-on-year improvement FY15 total Initiatives FY12 FY13 FY14 FY15 IFCO PMS Integration 5 11 19 - 35 IFCO RPC Integration 5 - - - 5 Operations and logistics 10 10 20 20 60 efficiencies in Pall
Slide 27: Appendix 9: Pooling Solutions FY13 sales revenue by segment
Appendices Appendix 9: Pooling Solutions FY13 sales revenue For personal use only by segment (US$M) 326 813 Constant FX growth vs. FY12 Pallets – Americas 8% Americas, 2,206 Pallets – EMEA 5% Asia-Pacific, 392 Pallets - Asia-Pacific 5% RPCs 10% Containers 20% EMEA, 1,347 51 Appendices Appendix 10: P
Slide 28: Appendix 11: CHEP USA pallet productivity trends
Appendices Appendix 11: CHEP USA pallet productivity trends For personal use only Control ratio New equipment issue ratio (Returns + recoveries/total issues) (Pallets purchased/total issues) 100% 8% 98% 6% 96% 4% 94% 2% 92% 0% FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY02 FY03 FY0
Slide 29: Appendix 13: CHEP Europe pallet productivity trends
Appendices Appendix 13: CHEP Europe pallet productivity trends For personal use only Control ratio New equipment issue ratio (Returns + recoveries/total issues) (Pallets purchased/total issues) 100% 10% 98% 8% 96% 6% 94% 4% 92% 2% 90% 0% FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY
Slide 30: Appendix 15: Containers FY13 sales revenue by sector
Appendices Appendix 15: Containers FY13 sales revenue For personal use only by sector (US$M) 38 Constant FX growth vs. FY12 Automotive 0% 78 150 Aerospace 44% IBCs 85% CCC 1% 59 57 Appendices Appendix 16: Recall FY13 sales revenue by sector (US$M) 82 Constant FX growth vs. FY12 124 Document Manageme
Slide 31: Appendix 17: Paper prices and Disclaimer
Appendices Appendix 17: paper prices – North America For personal use only US$ 290 250 Price per ton 210 170 130 90 50 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 59 Disclaimer The release, publication or distribution of this presentation in certain jurisdictions may
Slide 32: Investor Relations contacts
Investor Relations contacts 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 Senior Director, Investor Relations & Corporate Affairs james.hall@brambles.com +61 2 9256 5262 +61 401 524 645 61