Brambles Limited · ASX:BXB
Brambles — CLSA Downunder Conference 2010
17 slides from Brambles's conference presentation, Oct 6, 2010
Slide 1: Presentation to CLSA Downunder Conference
Presentation to CLSA Downunder Conference 6 October 2010 Discussion topics Introduction FY10 results overview and FY11 outlook Growth opportunities 2 1
Slide 2: First 12 months
First 12 months Put together the leadership team Established priorities Put cadence in place Development of strategic process Identification of growth opportunities 3 FY10 result 2
Slide 3: Key points and financial highlights
Key points 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 5 Financial highlights % change % change (actual (constant
Slide 4: Business unit highlights
Business unit highlights CHEP Americas • Achieving quality improvements • Positive sales momentum since Better Everyday • Improved operational controls CHEP EMEA • Strong growth in developing regions • Continuing to win business in established regions • Restructuring savings flowing through • On
Slide 5: Emerging markets and Better Everyday progress
Emerging markets China and India • FY10 sales revenue up 92% 92% Latin America • FY10 sales revenue up 7% 7% • Brazil and Argentina strong Central & Eastern Europe • FY10 sales revenue up 24% 24% • Unilever, P&G agreements in Turkey Growth % shown at actual FX rates 9 Better Everyday progress
Slide 6: CHEP USA quality costs and business wins
CHEP USA quality costs 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 8.5 5 25 25 11 Busines
Slide 7: Outlook / Growth opportunities
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 • Lower ongoing tax rate of approxim
Slide 8: Core strengths and growth opportunities
Core strengths Global footprint Local networks Intellectual property Customer franchises Financial position 15 Growth opportunities CHEP opportunities • Global footprint • CHEP USA growth momentum • Product and platform expansion • Global automotive • LeanLogistics Recall opportunities
Slide 9: CHEP USA pallet opportunity and SME penetration
CHEP USA pallet opportunity Total pallet opportunity US$9.5BN “Addressable” pooled 48x40 opportunity US$2.3BN Penetration US$1.1BN Other poolers <10% of addressable Source: Brambles internal estimates, June 2010 17 SME customer penetration CHEP USA – contracts won and lost in FY10 Annualised sales r
Slide 10: Expanding product scope and served sectors USA
Expanding product scope 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 potentially worth US$12BN
Slide 11: Served sectors Australia and automotive opportunity
Served sectors – Australia 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 Market CHEP Source: Bramb
Slide 12: Intercontinental automotive flows and LeanLogistics opportunity
Intercontinental automotive flows 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 revenue: US$3M flow: US$1
Slide 13: Unitpool acquisition and the paperless office myth
Unitpool acquisition US$35M purchase of the leading independent provider of pooled airline containers and pallets Meets strategy of pursuing profitable growth opportunities in line with core pooling expertise Unitpool provides strong growth foundation • Annual demand growth, existing customers
Slide 14: Bridge between paper and digital; Summary
The bridge between paper and digital Explosion of data presents opportunities: • Specialised business Digital process outsourcing Size is not measurable; Physical • Emerging technology new solutions come to 67% unvended to augment existing market every day services • Other complementary services 2
Slide 15: Q&A
Q&A Presentation to CLSA Downunder Conference 6 October 2010 15
Slide 16: Disclaimer statement
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, published or distributed should inform themselves about and observe such restrict
Slide 17: Presentation to CLSA Downunder Conference
Presentation to CLSA Downunder Conference 6 October 2010 17