Slide 1: Full-Year 2024 Results presentation
Full-Year 2024 Results presentation 21 August 2024
Slide 2: Results highlights
Results highlights Graham Chipchase, CEO
Slide 3: FY24 highlights
FY24 highlights WW Done Strong financial results including Improved business fundamentals delivery of investor value proposition supporting future value creation Enhanced customer experience in all regions and investment to deliver superior customer value +7% +17% Structural asset efficiency improve
Slide 4: Capital management
Capital management Structural improvements to Free Cash Flow Increasing shareholder returns and strong financial position through capital management initiatives Free Cash Flow before dividends (US$m) • Two capital management initiatives announced: – Increasing dividend payout ratio range from FY25 t
Slide 5: Investor value proposition
Investor value proposition Active approach to shareholder value creation through disciplined capital allocation By allocating capital in accordance with this framework and continuing to execute its strategy and transformation, Brambles seeks to create total value in excess of ~10% per annum while ma
Slide 6: Operating environment
Operating environment Inventory optimisation, weak macroeconomic environment and moderating inflationary pressures FY24 key operating dynamics FY24 impact on Brambles Inflation • Ongoing labour inflation in all markets Pricing • Growth moderated in line with cost-to-serve • Deflation across lumber,
Slide 7: Shaping Our Future transformation
Shaping Our Future transformation Improving business fundamentals and setting foundations for future success • Improved pallet availability, investment in pallet quality and faster, more efficient interactions • Material increase across multiple customer metrics – NPS, ‘delivery in full, on time’ an
Slide 8: Shaping Our Future scorecard
Shaping Our Future scorecard Digital Transformation Customer Business Excellence Asset Efficiency & Sustainability & ESG Network Productivity Outcomes Transform information and digital Deliver unrivalled value and Reinvent the organisation, Improve productivity and Pioneer regenerative supply insigh
Slide 9: FY25 pathways
FY25 pathways Asset productivity pathway on track to deliver FY25 target; other supply chain initiatives compensating for lower automated repair process installations 1 Reduce uncompensated pallet losses Rollout of automated repair process 120 2 by 30% by end of FY25 by end of FY25 100 Indexed to FY
Slide 10: ESG achievements
ESG achievements Progress made towards achieving FY25 sustainability targets Business Positive Planet Positive Communities Positive 1.9 100% US$9.4m megatonnes of CO2-e saved sustainably sourced timber total value of community in our customers’ supply chains maintained contributions (improved 3.7%)
Slide 11: FY25 outlook
FY25 outlook Delivering on the investor value proposition Outlook 4-6% 8-11% US$750m- 50-70% US$500m US$850m of Underlying Profit1 Sales revenue Underlying Profit Free Cash Flow Dividend payout On-market share growth growth before dividends ratio buy-back Mid single-digits High single-digits Free Ca
Slide 12: Financial overview
2 All references to growth rates, unless otherwise stated, are at constant FX rates Financial overview Joaquin Gil, CFO
Slide 13: FY24 financial highlights
FY24 financial highlights Price growth In-year price realisation Commercial discipline supporting recovery of cost-to-serve and ongoing price realisation +7% +3% IPEP reduction Pooling capex to sales ratio Structural improvements in asset productivity US$105m 13% vs. FY23 Down ~10pts vs. FY23 Underl
Slide 14: Full-year results
Full-year results Operational & asset efficiency improvements delivering strong financial results US$m FY24 Change vs. FY23 • Sales revenue +7% driven by price realisation to recover the cost-to-serve, volumes in line with the prior year Continuing operations Actual FX Constant FX despite a ~1pt adv
Slide 15: Group sales revenue growth
Group sales revenue growth Ongoing commercial discipline to recover the cost-to-serve Price/mix and volume contribution to growth Price/mix +7% Price realisation in all regions to recover the +14% cost-to-serve which included 3pt contribution from the current year and 4pt rollover contribution from
Slide 16: Group Underlying Profit analysis (US$m)
Group Underlying Profit analysis (US$m) Strong growth driven by commercial discipline to recover cost-to-serve, asset productivity improvements and operational efficiencies linked to transformation Net inflation ~US$70m; additional costs associated with higher pallet return rates Increased pallet co
Slide 17: Asset efficiency
Asset efficiency Improved market dynamics with step change in capital intensity driven by asset productivity initiatives Pooling capital expenditure to sales ratio Pooling capital expenditure to sales ratio down ~10pts, including US$586m reduction in pooling capital expenditure (accruals basis): • ~
Slide 18: Free Cash Flow before dividends (US$m)
Free Cash Flow before dividends (US$m) Asset efficiency benefits and improved market dynamics delivering +US$385m increase in Free Cash Flow before dividends ~15m fewer pallet purchases (including ~7m from inventory optimisation) ~15% reduction in the average cost of new Prior year benefited from pa
Slide 19: Cash flow normalisation (US$m)
Cash flow normalisation (US$m) Benefits from inventory optimisation partly offset by timing impacts Normalisation of Free Cash Flow before dividends (160) 90 • Inventory optimisation in the period resulted in ~12m pallets returned to Brambles’ plants and led to: ‒ Capital expenditure benefits relati
Slide 20: CHEP Americas
CHEP Americas Continued margin expansion including material asset efficiency improvements FY24 Change vs. FY23 • Segment sales revenue growth driven by US$m Actual FX Constant FX Sales price growth of 6% including 3pts of in-year +6% growth US 2,587.9 7% 7% • Overall volumes were in line with FY23 a
Slide 21: US pallets revenue
US pallets revenue Growth driven by price realisation, volume improvement in the fourth quarter Price/mix and volume contribution to growth Price/mix +7% Rollover contributions from FY23 pricing actions +13% delivered 4pts of growth, with a 3pt contribution from pricing actions taken in the current
Slide 22: CHEP EMEA
CHEP EMEA Asset productivity initiatives enabling operating leverage and capital efficiency • Segment sales revenue growth reflected price FY24 Change vs. FY23 growth of 7%, including current and prior year Sales US$m Actual FX Constant FX +7% contributions from pricing actions and contractual index
Slide 23: CHEP Asia-Pacific
CHEP Asia-Pacific Margin and ROCI remain strong; sales moderation in 2H24 as seasonal demand patterns return • Segment growth reflects in-year and rollover FY24 Change vs. FY23 pricing contributions of 6% Sales US$m Actual FX Constant FX +9% • Volume growth of 3% driven by improved pallet circulatio
Slide 24: Corporate Segment
Corporate Segment Ongoing investment to support transformation FY24 Change vs. FY23 • Shaping Our Future corporate costs1 US$m Actual FX Constant FX comprising: Shaping Our Future – Digital transformation costs of US$98.6m, up programme costs: US$31.6m largely due to labour related costs including a
Slide 25: FY25 outlook considerations
FY25 outlook considerations 4-6% • Balanced contribution from both price and volume growth, expected to be broadly in line with investor value proposition • Like-for-like growth to benefit from business cycling ~1pt adverse impact from inventory optimisation in FY24 and improved macroeconomic condit
Slide 26: FY25 outlook considerations
FY25 outlook considerations US$750m- • Pooling capex to sales ratio of ~13%-15% including 1.5pt benefit from excess pallets at the end of FY24, primarily in the US business, expected to be utilised in FY25 US$850m • Non-pooling capital expenditure ~US$280m (FY24: US$152m) an increase of ~US$130m, re
Slide 27: Summary
Summary Strong FY24 result reflecting improved business fundamentals through transformation Improved momentum exiting FY24 underpins FY25 outlook and delivery of investor value proposition Structural improvements to Free Cash Flow and strong financial position supporting capital management initiativ
Slide 28: Full-Year 2024 Results presentation
Full-Year 2024 Results presentation 21 August 2024
Slide 29: Appendix
Appendix n & oO = fs i)
Slide 30: Sales revenue by region and sector
Appendix 1 Sales revenue by region and sector FY24 sales revenue by region FY24 sales revenue by sector India, Middle East, Türkiye, Africa 4.0% Asia Auto 3.2% 0.5% Storage & Eastern Europe Dist. 1.8% 4.2% General retail 1 2.2% Other Latin 9.4% America Packaging 9.1% 2.4% USA & Fresh produce ANZ 9.6
Slide 31: Balance sheet
Appendix 2a Balance sheet • Net debt decreased by US$196m with strong June 24 June 23 Free Cash Flow after dividends of US$477m partly offset Net debt1 US$2,528m US$2,724m by lease capitalisations of US$269m (FY23: US$152m) • Total liquidity of US$1.6b with undrawn committed Average term of committe
Slide 32: Credit facilities and debt profile
Appendix 2b Credit facilities and debt profile (US$b at 30 June 2024) 1 Committed Uncommitted Maturity Type Debt drawn Headroom facilities facilities <12 months Bank 0.2 0.3 - 0.5 1 to 2 years Bank/144A2 0.6 - 0.5 0.1 2 to 3 years - - - - - 3 3 to 4 years EMTN 0.5 - 0.5 - 4 4 to 5 years Bank 1.4 - 0
Slide 33: FY24 timing impacts and other considerations including hyperinflation
Appendix 3 FY24 timing impacts and other considerations including hyperinflation Inventory optimisation Volume impact: resulted in ~12m pallet • 1pt adverse impact on like-for-like volume growth in FY24 returns in FY24 Cost impact: (FY23: ~5m) • Incremental repair, handling, storage and transportati
Slide 34: Group sales revenue growth (US$m)
Appendix 4 Group sales revenue growth (US$m) Growth across all segments driven by price realisation 71 44 143 210 6,474 6,545 6,077 +7% FY23 CHEP CHEP CHEP FY24 FX FY24 Americas EMEA Asia-Pacific (Constant FX) (Actual FX) FULL-YEAR 2024 RESULTS PRESENTATION 34
Slide 35: Net plant and transport costs/sales revenue
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) FY24 FY23 FY24 FY23 CHEP Americas 36.4% 38.0% 20.3% 19.6% CHEP EMEA 23.9% 23.6% 21.4% 21.7% CHEP Asia-Pacific 32.5%
Slide 36: CHEP Americas: Underlying Profit analysis
Appendix 6a CHEP Americas: Underlying Profit analysis (US$m) (38) (22) (40) (30) 215 84 (40) 702 573 +23% 3 FY23 Volume, North America Plant Transport Depreciation IPEP Other FY24 1 Underlying Profit price, mix surcharge costs costs Underlying Profit income 2 (Constant FX) 1 Sales growth net of volu
Slide 37: CHEP EMEA: Underlying Profit analysis
Appendix 6b CHEP EMEA: Underlying Profit analysis (US$m) (46) 21 (28) (2) (25) 155 582 507 +15% FY23 Volume, Plant Transport Depreciation IPEP Other 2 FY24 1 Underlying Profit price, mix costs costs Underlying Profit (Constant FX) 1 Sales growth net of volume-related costs (excluding depreciation an
Slide 38: EMEA sales growth
Appendix 6c EMEA sales growth CHEP EMEA revenue growth breakdown (constant FX) Price/mix +7% Contributions from pricing actions and +14% contractual indexation to recover cost-to-serve in both the current and prior year Like-for-like volume decline of 1% Included ~1pt adverse impact of inventory 14%
Slide 39: CHEP Asia-Pacific: Underlying Profit analysis
Appendix 6d CHEP Asia-Pacific: Underlying Profit analysis (US$m) (22) (8) 33 (5) (4) 15 190 181 +5% 2 FY23 Volume, Plant Transport Depreciation Other AU flood FY24 1 Underlying Profit price, mix costs costs proceeds Underlying Profit (Constant FX) 1 Sales growth net of volume-related costs (excludin
Slide 40: Capital expenditure on Property, Plant and Equipment
Appendix 7 Capital expenditure on Property, Plant and Equipment (accruals basis US$m) 1,811 142 1,567 • Reduction in ‘Replacement’ capex due to impact of pallet price deflation on FY24 purchases and 146 1,219 an overall reduction in pallet loss rates driven 1,000 by asset efficiency initiatives and
Slide 41: Regional asset efficiency
Appendix 8 Regional asset efficiency Pooling capital expenditure to sales ratio North America Latin America EMEA 28.6% 32.7% 23.1% 23.8% 39.7% 23.2% 27.0% 25.6% 24.0% 16.9% 14.1% 9.5% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 • FY22 increase due to lumber inflation impacts • FY22 i
Slide 42: IPEP expense
Appendix 9 IPEP expense (Actual FX rates, US$m) Methodology • IPEP expense accounts for uncompensated pallet losses at locations for which there is no customer loss liability • The charge is determined based on annual audits at customer locations which are performed to confirm the existence of pooli
Slide 43: Major currency exchange rates
Appendix 10 1 Major currency exchange rates USD EUR AUD GBP MXN CAD ZAR PLN BRL FY24 1.0000 1.0806 0.6562 1.2587 0.0580 0.7388 0.0534 0.2470 0.1990 Average FY23 1.0000 1.0510 0.6750 1.2110 0.0532 0.7487 0.0566 0.2256 0.1951 30 June 2024 1.0000 1.0706 0.6646 1.2645 0.0542 0.7299 0.0542 0.2484 0.1818
Slide 44: FY24 currency mix
Appendix 11 FY24 currency mix (US$m) Total USD EUR AUD GBP MXN CAD ZAR PLN BRL Other1 Sales revenue 6,545.4 2,655.7 1,381.8 452.8 427.9 419.0 391.7 181.0 144.0 89.9 401.6 FY24 share 100% 41% 21% 7% 7% 6% 6% 3% 2% 1% 6% FY23 share 100% 41% 21% 7% 7% 6% 6% 3% 2% 1% 6% Net debt2 2,528 1,178 828 348 (13
Slide 45: Glossary of terms and measures
Appendix 12 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 monthl
Slide 46: Glossary of terms and measures
Appendix 12 Glossary of terms and measures Except where noted, common terms and measures used in this document are based upon the following definitions: Irrecoverable Pooling Provision held by Brambles to account for pooling equipment that cannot be economically recovered and for Equipment Provision
Slide 47: 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 48: Investor and media contacts
Investor and media contacts Investors Media Raluca Chiriacescu Sandra Tang Vice President, Investor Relations Group External Communications Lead +44 7810 658044 +61 404 066 107 raluca.chiriacescu@brambles.com sandra.tang@brambles.com Suk Hee Lee Director, Investor Relations +61 433 343 888 sukhee.le