Brambles Limited · ASX:BXB
Brambles — Investor Day (November 2014)
26 slides from Brambles's investor day presentation, Nov 3, 2014
Slide 1: Investor Day Presentation
Investor Day Presentation 3 November 2014
Slide 2: This afternoon's agenda
This afternoon’s agenda Business update Tom Gorman & Zlatko Todorcevski Ferguson acquisition Jason Rabbino First-quarter operating review - Containers Jason Rabbino - RPCs Wolfgang Orgeldinger - Pallets Peter Mackie Wrap-up and Q&A 2
Slide 3: Business update
se & Business update Brambles
Slide 4: First-quarter trading update
First-quarter trading update Continued sales revenue growth across all operating segments Segment Sales revenue Growth Growth (US$M) (actual FX) (constant FX) Americas 582 4% 5% Europe, Middle East & Africa 358 4% 4% Asia-Pacific 92 6% 5% Total Pallets 1,032 4% 5% RPCs 234 10% 10% Containers 105 20%
Slide 5: FY15 guidance updated for Ferguson
FY15 guidance1 updated for Ferguson Strong sales growth with positive leverage to Underlying Profit Constant-currency sales revenue growth expected to be 8% to 9% Underlying Profit of US$1,055M to US$1,085M (30 June 2014 FX rates) Equates to growth of 9% to 12% compared with FY142 Includes ~US$25M f
Slide 6: Our five-year objectives are unchanged
Our five-year objectives are unchanged Sustained delivery of “quality” and “quantity” for shareholders 1) Get the basics right Annual percentage sales revenue growth – Invest in product and service quality in the high single digits – Invest in asset management 2) Drive business growth Consistent inc
Slide 7: Ferguson acquisition accounting
Ferguson acquisition accounting Based on preliminary, unaudited purchase price allocation Enterprise value of £320M translates to US$523M at consolidation1 Amortisation of identifiable intangible assets estimated at up to £4M per year Assumes assets amortised over 10 years Net operating assets estim
Slide 8: Capital recycling in our portfolio
Capital recycling in our portfolio Both organic and acquisitive growth have a role to play Europe CCC BVA positive 20% ROCI (i.e. 12% ROCI) ANZ MEA LatAm ANZ /RSA Legend IBC Pallets business units RPCs business units Aerospace IFCO Containers business units Asia Notes Circle area corresponds to FY14
Slide 9: Containers
Containers Brambles
Slide 10: Ferguson: strategic priorities
Ferguson: strategic priorities Many levers to drive value creation Tanks and chemical containers 1 Organic growth Customer demand for DNV certification Expansion of value-adding services Opportunity to source from low-cost markets 2 Strategic sourcing Utilisation of lean manufacturing meth
Slide 11: Attractive offshore growth trends
Attractive offshore growth trends Deep-water environments accelerate containerization requirements 70,000 Barrels of oil equivalent per day (‘000) 60,000 Forecast shelf production 50,000 CAGR, 2010-2025: 0.7% 40,000 30,000 20,000 10,000 Forecast deep-water production CAGR, 2010-2025: 6.6% 0 2010 201
Slide 12: Ferguson Group financial performance
Ferguson Group financial performance Positioned to benefit from strong recent investment 56 53 51 42 37 33 29 30 26 27 25 22 23 18 18 £M 15 15 13 13 13 14 (3) (4) (6) (6) (7) (8) (9) CY07 CY08 CY09 CY10 CY11 CY12 CY13 Sales revenue EBITDA Depreciation Fleet investment 12
Slide 13: Containers: first-quarter sales revenue
Containers: first-quarter sales revenue Acquisitions drive growth with mixed organic result Business unit Sales revenue Growth Growth (US$M) (actual FX) (constant FX) Automotive 37 1% 1% CHEP Pallecon Solutions 32 24% 24% CHEP Aerospace Solutions 19 19% 17% Oil & Gas 17 80% 80% Total Containers 105
Slide 14: RPCs
Brambles
Slide 15: RPCs: first-quarter sales revenue
RPCs: first-quarter sales revenue Solid sales momentum continues in all regions Business unit/region Sales revenue Growth Growth (US$M) (actual FX) (constant FX) IFCO Europe 149 8% 9% IFCO North America 50 12% 12% IFCO South America 6 13% 35% IFCO total 205 10% 10% CHEP Australia, New Zealand 29 10%
Slide 16: IFCO North America strategy update
IFCO North America strategy update Driving results and executing against our plan Rollout of end-to-end supply chain evaluation tool Solidify 1 Drive conversion through improved retail stakeholder alignment value proposition Collaborate with grower “apostles” for joint approach Utilise innovative RP
Slide 17: Pallets
Pallets Brambles
Slide 18: Pallets: first-quarter sales revenue
Pallets: first-quarter sales revenue Resilient growth rate despite increased economic uncertainty Business unit/region Sales revenue Growth Growth (US$M) (actual FX) (constant FX) North America 518 4% 5% Latin America 64 4% 10% Europe 325 5% 4% Middle East & Africa 33 4% 10% Australia & New Zealand
Slide 19: Key drivers of US operating costs
Key drivers of US operating costs More sustainable pool management providing new insights New pallet FY15 domestic commitment of commitment ~2M going to zero in FY16 >1 percentage point reduction in loss Asset control rate in five years to FY14 Pool utilisation 11% increase in turn rate in five year
Slide 20: Update on key US growth initiatives
Update on key US growth initiatives Development takes time but the opportunities are exciting Retailers representing 55% of national grocery volume now in support Half pallet Focus on 16 key manufacturers conversion to drive increased flows Successful pallet flow study with retailer enabling A
Slide 21: Investor Day Presentation
Investor Day Presentation 3 November 2014
Slide 22: Appendices
Appendices Brambles
Slide 23: Glossary of terms and measures
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 each period. Average Capital Investe
Slide 24: Glossary of terms and measures (continued)
Appendix 1 Glossary of terms and measures (continued) Except where noted, common terms and measures used in this document are based upon the following definitions: (EBITDA) Earnings before Operating profit from continuing operations after adding back depreciation and amortisation and Significant int
Slide 25: Disclaimer
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. This
Slide 26: Investor Relations contacts
Investor Relations contacts James Hall Vice President, Investor Relations & Corporate Affairs james.hall@brambles.com +61 2 9256 5262 +61 401 524 645 Raluca Chiriacescu Manager, Investor Relations raluca.chiriacescu@brambles.com +61 2 9256 5211 +61 427 791 189 26