Brambles Limited · ASX:BXB

Brambles — FY2008 Earnings Presentation

34 slides from Brambles's earnings presentation, Aug 20, 2008

1. Slide 1: 2008 Final Results

   2008 Final Results 20 August 2008

2. Slide 2: Mike Ihlein, Chief Executive Officer

   2008 Final Results Mike Ihlein Chief Executive Officer

3. Slide 3: Solid year with success on growth initiatives

   Solid year with success on growth initiatives  Solid growth in sales and comparable operating profit  CHEP – growth in all regions  Recall - all regions doing well except North America  Increasingly challenging economic environment  Good progress on growth initiatives  New Walmart supply chain

4. Slide 4: Strong foundations for growth

   Strong foundations for growth Sales Operating profit1 Profit1 margin EPS 13% 12% 24% 18% (6% constant) (6% constant) Unchanged (10% constant)  Sales up 13% to US$4.4 billion  Comparable operating profit up 12% to US$1,047 million  Margins maintained  Comparable operating profit before the invest

5. Slide 5: Americas – Solid result, significant wins

   Americas – Solid result, significant wins Pallet Volume Sales Operating profit Profit margin 4% 10% 7% 29% (USA 2%) (8% constant) (5% constant) Unchanged  Solid growth in Americas +4%  USA reported volume +2% - slowing economy, weaker second half • +4% pre loss of low margin non-FMCG customer  St

6. Slide 6: Walmart – developing a supply chain solution

   Walmart – developing a supply chain solution  Working closely with Walmart  A number of parties involved  Confident – despite longer time frame  Best overall supply chain solution  Cost neutral outcome expected on ongoing basis  One time transition costs • FY08 US$11m • FY09 approx. US$30m 6

7. Slide 7: EMEA – Improved operating performance

   EMEA – Improved operating performance Pallet Volume Sales Operating profit Profit margin 4% 13% 18% 24% (Europe 3%) (4% constant) (9% constant) (+1pp)  4% pallet volume growth – across all platforms  Pallets ↑, Auto ↑, RPC recovering  Strong sales pipeline for customer wins • >2,000 new customer

8. Slide 8: Asia-Pacific – Strong growth prospects

   Asia-Pacific – Strong growth prospects Pallet Volume Sales Operating profit Profit margin 3% 20% 10% 25% (5% constant) (-5% constant) (-2pp)  Solid sales growth  Solid pallet revenue growth in Australia  Good progress in China and India • China customer wins • India - First shipments to customers

9. Slide 9: Recall – Good organic growth, work to do on costs

   Good organic growth - work to do on costs Sales Operating profit Profit margin Carton Volume 15% 8% 17% 8% (7% constant) (-2% constant) (-1pp)  Good growth in all regions, mainly Document Management Solutions and new customer wins • Europe and Asia double-digit sales growth • ANZ - competitive but

10. Slide 10: Growth initiatives progressing well

    Growth initiatives progressing well  Wins in many key areas  USA – food service  USA – beverages  Germany  Poland  China  India  Approximately US$35m invested so far 10

11. Slide 11: Investment for Growth - Americas

    Investment for Growth - Americas  Beverages (USA) • Non-carbonated beverage producer and alcohol producer converted from ‘white wood’ to CHEP • Value chain analysis for existing and potential customers • Discussions with other producers (alcohol and non-alcohol)  Food service (USA) • Considerable

12. Slide 12: Investment for growth – EMEA

    Investment for growth – EMEA  Germany • Strong pipeline – confident of lift in growth • Encouraging discussions with major retailers • Value chain analysis underpins customer prospecting • Country manager appointed, sales resources being added  Poland • New contracts signed, others in negotiation

13. Slide 13: Investment for growth – Asia-Pacific

    Investment for growth – Asia-Pacific China and India – customer wins increasing  China wins include: • Pearl River Breweries • Nongfu Mineral Waters • ChangAn Ford Mazda  Team of 100 in place in China and India to drive and support growth  Long term growth prospects confirmed  US$52m investment

14. Slide 14: Quality and innovation in USA

    Quality and innovation in USA Early positive results  CHEP USA on track to invest US$100m over 2 years  Initially 50% opex and 50% capex  Likely to be higher percentage in opex • Fastest way to meet customer needs  US$25m¹ spent in FY08 • Service Centre based Plant Quality Representatives – 56 i

15. Slide 15: Supply Chain Solutions

    Supply Chain Solutions  LeanLogistics • Transport Management Services (TMS) offer in place • Freight Optimisation Service under development  RFID as a CHEP service • High interest in “Track & Trace” solution • CHEP uniquely place • CHEP expanding capabilities 15

16. Slide 16: 2008 Final Results

    2008 Final Results 20 August 2008

17. Slide 17: Liz Doherty, Chief Financial Officer

    2008 Final Results Liz Doherty Chief Financial Officer

18. Slide 18: 2008 Final Results

    2008 Final Results Actual Constant FY08 FY08 FY07 Growth AIFRS US$m US$m US$m % Continuing operations Sales revenue 4,358.6 4,089.7 3,868.8 6 Comparable operating profit 1,078.4 1,017.7 932.8 9 before quality and Walmart Comparable operating profit 1,046.9 986.2 932.8 6 PBT 897.4 837.4 872.9 (4) PAT

19. Slide 19: Solid sales growth

    Solid sales growth Actual Constant FY08 FY08 FY07 AIFRS Growth % US$m US$m US$m CHEP Americas 1,581.3 1,547.5 1,438.2 8 CHEP EMEA 1,642.1 1,509.4 1,457.4 4 CHEP Asia-Pacific 386.9 339.8 322.8 5 CHEP 3,610.3 3,396.7 3,218.4 6 Recall 748.3 693.0 650.4 7 Continuing operations 4,358.6 4,089.7 3,868.8 6

20. Slide 20: Comparable operating profit growth

    Comparable operating profit growth Actual Constant FY08 FY08 FY07 Growth AIFRS US$m US$m US$m % CHEP Americas 452.8 441.0 421.3 5 CHEP EMEA 396.5 368.0 336.5 9 CHEP Asia-Pacific 95.9 83.4 87.4 (5) CHEP 945.2 892.4 845.2 6 Recall 128.4 116.1 118.5 (2) Continuing (pre Brambles HQ) 1,073.6 1,008.5 963.

21. Slide 21: Americas – Volume / mix improvement

    Americas –Volume / mix improvement US$m 77 6 21 21 11 2 441 421 FY07 Volume, Transportation Plant costs Quality Walmart Other FY08 Comparable Price & Mix Comparable operating profit operating profit All numbers are calculated at constant currency 21

22. Slide 22: EMEA – Continuing improvement

    EMEA – Continuing improvement US$m Includes costs of Brentwood closure 2007 - $8M Includes 2007 profit on sale of Madrid property - $13M 14 1 19 37 368 337 FY07 Comparable Volume, Price Transportation Plant costs Other FY08 Comparable operating profit & Mix operating profit All numbers are calculate

23. Slide 23: Asia Pacific – Investment for growth

    Asia Pacific – Investment for growth US$m 15 0 4 15 87 83 FY07 Comparable Volume, Price Transportation Plant costs Other FY08 Comparable operating profit & Mix operating profit All numbers are calculated at constant currency 23

24. Slide 24: Good sales growth in all regions

    Good sales growth in all regions Actual Constant FY08 FY08 FY07 Growth AIFRS US$m US$m US$m % Americas 333.3 321.9 307.7 5 Europe 202.2 183.1 167.1 10 RoW 212.8 188.0 175.6 7 Sales revenue 748.3 693.0 650.4 7 Comparable operating profit 128.4 116.1 118.5 (2) Profit margin (%) 17 17 18 Growth % calcu

25. Slide 25: Strong cash flow generation

    Strong cash flow generation Actual FY08 FY07 Change AIFRS US$m US$m US$m Comparable operating profit 1,046.9 932.8 114.1 Depreciation and amortisation 452.1 398.3 53.8 EBITDA 1,499.0 1,331.1 167.9 Capital expenditure (869.4) (648.5) (220.9) Proceeds from disposals 133.8 128.3 5.5 Working capital mov

26. Slide 26: Capital expenditure to support growth

    Capital expenditure to support growth 24% US$m $869m 25% ROCI (%) 22% $649m $586m FY06 FY07 FY08 CHEP Americas CHEP EMEA CHEP Asia-Pacific Recall Pallets Con tainers P&E 26

27. Slide 27: Capital expenditure to support growth

    Capital expenditure to support growth 24% 24% US$m $869m $869m 25% ROCI (%) 22% $649m $586m FY06 FY07 FY08 FY08 CHEP Americas CHEP EMEA CHEP Asia-Pacific Recall Pallets Con tainers Other P&E 27

28. Slide 28: Brambles Value Added

    Brambles Value Added FY08 FY07 Growth AIFRS, June 07 rates US$m US$m US$m CHEP Americas 269 263 6 CHEP EMEA 200 176 24 CHEP Asia-Pacific 55 60 (5) CHEP 524 499 25 Recall 6 16 (10) Continuing (pre Brambles HQ) 530 515 15 Unallocated Brambles HQ costs (14) (23) 9 Continuing operations 516 492 24 28

29. Slide 29: Effective tax rate

    Effective tax rate Actual Actual FY08 FY07 AIFRS US$m US$m PBT 897.4 872.9 Tax 270.9 287.2 Effective tax rate % of PBT 30.2% 32.9% Adjustment for non-recurring items 2.9% 1.2% Underlying effective tax rate 33.1% 34.1% 29

30. Slide 30: Financial ratios

    Financial ratios AIFRS, Actual rates June 08 June 07 Covenants Closing Net Debt (US$m) 2,426.2 1,996.9 Average Net Debt (US$m) 2,173.5 895.9 Net Finance Cost (US$m) 149.5 59.9 Interest cover (x) • Comparable operating profit 7.0 16.3 • EBITDA 10.0 22.9 x 3.5 (min) Net Debt / EBITDA (x) 1.6 1.5 x 3.5

31. Slide 31: Credit facilities and liquidity

    Credit facilities and liquidity  Gross debt at 30 June 2008 - $2.5bn  Total committed facilities - $4.1bn • Includes $0.2bn 3 year facility signed since 30 June 2008  $3.0bn of bank facilities due for renewal in over 2 years (November 2010) • to be addressed as part of ongoing refinancing  On-ma

32. Slide 32: Outlook

    Outlook  Another year of sales revenue and profit growth in 2009 • Sales revenue growth in all business units • Profit growth in all business units except Asia-Pacific due to China/ India  Excellent progress in growth initiatives  FMCG sector generally less volatile  More difficult consumer envi

33. Slide 33: 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

34. Slide 34: 2008 Final Results

    2008 Final Results 20 August 2008

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