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 20 August 2015 The Manager-Listings Australian Securities Exchange Limited Exchange Centre 20 B
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Slide 3: Financial Year 2015 Results
For personal use only Financial Year 2015 Results 20 August 2015 Overview and Results Highlights Tom Gorman, CEO 2
Slide 4: Key points: FY15 result and outlook
Key points: FY15 result For personal use only In line with guidance amid challenging conditions Sales revenue up 8% and Underlying Profit up 10% at constant FX Pallets result reflects strong Europe profit but US cost pressures remain Strong sales and profit growth delivered in RPCs Solid contributio
Slide 5: Group safety performance and financial highlights
Group safety performance For personal use only Continued positive trend in injury frequency rate Brambles Injury Frequency Rate (per million man hours) 25 20 15 10 5 0 FY11 FY12 FY13 FY14 FY15 1 2 Continuing businesses Reported 1 Operations owned continuously throughout FY11 to FY15, excluding busin
Slide 6: Delivery scorecard and key 2H15 actions
Delivery scorecard For personal use only Key FY15 objectives met despite challenging conditions FY15 Guidance FY15 Outcome Constant FX sales revenue growth of 8-9% Achieved 8% US$34M delivered in FY15 Delivery of Global Supply Chain efficiencies Full US$100M program achieved Underlying Profit: US$1,
Slide 7: Pallets and RPCs segment result summary
Pallets segment result summary For personal use only Strong Europe result more than offsets US cost challenges FY15 Change vs. FY14 Net new business, like-for-like volumes and price/mix broadly equal (US$M) Actual Constant contributors to sales growth FX FX Emerging markets constant FX sales America
Slide 8: Containers segment result summary
Containers segment result summary For personal use only Diverse result reflects broadly positive 2H15 trends FY15 Change vs. FY14 Ongoing challenges in European Ex- and Australian automotive (US$M) Actual Constant acquisitions businesses weighs on growth FX FX (constant FX) Continued solid growth in
Slide 9: Sales growth drivers and group profit analysis
Continued sales growth momentum For personal use only Key drivers of sales revenue growth (US$M) Reflects solid result from Translation impacts reflect Ferguson despite oil and gas strong US dollar against Contribution from largest sector challenges other operating currencies operations ahead of und
Slide 10: Key transport and plant cost trends
Key transport cost trends For personal use only Strong EMEA broadly offsets spike in US carrier rates Pallets: net transport costs/ EMEA FY15 reduction reflects logistics sales revenue efficiencies and some benefit of lower fuel costs 20% Americas carrier rates reflect 8% inflation in third-party fr
Slide 11: Indirect cost reduction and reconciliation to statutory profit
Indirect cost reduction update For personal use only One Better program underway and delivering benefits Overhead costs/sales revenue US$11M cost-outs delivered from quick wins 18% in FY15 On track to deliver US$30M total reduction by end FY16 On track to deliver FY19 targets 17% US$100M total cost-
Slide 12: Cash flow reconciliation and capital expenditure analysis
Cash flow reconciliation For personal use only Higher capital expenditure to support growth (US$M) FY15 FY14 Change EBITDA 1,535 1,488 47 Capital expenditure (984) (854) (130) Proceeds from sale of property, plant and equipment 78 78 - Working capital movement 5 11 (6) IPEP expense 80 88 (8) Other 1
Slide 13: US inventories and pallet demand; balance sheet position
US inventories and pallet demand For personal use only Increased inventories are a key short-term capex driver US retail trade inventories1/sales vs. CHEP USA plant stock 1.28 14 Inventories are now at their highest 1.27 ratio since the Financial Crisis 12 1.26 10 1.25 8 1.24 6 1.23 4 1.22 Efficient
Slide 14: Summary and Outlook: investment proposition unchanged
For personal use only Summary and Outlook Tom Gorman, CEO 23 Investment proposition unchanged We are driven by our focus on the customer …which drives superior rates of economic return (i.e. high quality of opportunity)… Objectives Annual percentage sales revenue Our customer value growth in the hig
Slide 15: What has changed since December 2013?
What has changed since December 2013? For personal use only Increased investment opportunity despite challenges Assumptions – December 2013 Additional assumptions – August 2015 Macro - Flat growth in major economies - Impacts of improved US pallet pool management - Challenging environment for politi
Slide 16: Disciplined capital allocation focus; guidance and outlook summary
Disciplined capital allocation focus For personal use only Managing the portfolio for maximisation of value Asia-Pacific Auto Legend AIME CHEP Europe IFCO Return on Capital Invested Containers North America Latin America Europe IBCs South America LeanLogistics Oil & Gas Aerospace North America Avera
Slide 17: Q&A
For personal use only Q&A Full-Year Results 20 August 2015
Slide 18: Glossary of terms and measures
For personal use only 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 currency/FX Results translated into US dollars at the applicable actual monthly exchange rates ruling in eac
Slide 19: Glossary of terms and measures (continued)
Appendix 1 For personal use only Glossary of terms and measures (continued) Except where noted, common terms and measures used in this document are based upon the following definitions: DIN The sum in a period of: - Depreciation expense; - Irrecoverable Pooling Equipment Provision expense; and - Net
Slide 20: Underlying Profit currency reconciliation; ROCI
Appendix 2 For personal use only Underlying Profit currency reconciliation (US$M) FY15 guidance FY15 reported FY16 guidance 1,000 – 1,020 Growth: Growth: Growth: 3% 10% 6-8% 1,065 986 965 960 943 FY14 result FY15 result FY14 result FY15 result FY15 result FY16 guidance (30 June (30 June (actual FX)
Slide 21: FY15 currency mix and exchange rates
Appendix 4 For personal use only FY15 currency mix (US$M) Total USD EUR GBP AUD CAD MXN ZAR CHF BRL Other1 Pallets 4,082 1,818 761 349 264 274 155 112 11 66 271 RPCs 918 192 426 74 80 - - 23 55 13 55 Containers 466 69 145 86 66 14 - 12 22 2 50 Sales revenue 5,465 2,079 1,332 509 410 288 155 147 88 8
Slide 22: Credit facilities and debt profile; Pallets net new business wins
Appendix 6 For personal use only Credit facilities and debt profile Committed Uncommitted Maturity Type Debt drawn Headroom facilities facilities (US$B at 30 June 2015) <12 months Bank/USPP1/Other 0.1 0.2 0.1 0.2 1 to 2 years Bank/USPP1/Other 0.8 - 0.4 0.4 2 to 3 years Bank/EMTN2/Other 1.0 - 0.8 0.2
Slide 23: Pallets sales revenue/capital invested; capex growth vs replacement
Appendix 8 For personal use only Pallets sales revenue/Average Capital Invested 120% 110% 100% 90% 80% FY11 FY12 FY13 FY14 FY15 Americas EMEA Asia-Pacific Total 41 Appendix 9 Pallets capital expenditure: growth vs. replacement 800 14% 700 12% 600 10% 500 8% 400 6% 300 200 4% 100 2% 0 0% FY11 FY12 FY
Slide 24: CHEP pallet productivity trends
Appendix 10a For personal use only CHEP USA pallet productivity trends (B4840) Control ratio New equipment issue ratio (Returns + recoveries/total issues) (Pallets purchased/total issues) 100% 8% 98% 6% 96% 4% 94% 2% 92% 0% FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 43 Appendix 10b CHEP Europ
Slide 25: Pallets Americas and EMEA Underlying Profit analysis
Appendix 11a For personal use only Pallets Americas: Underlying Profit analysis (US$M) 16 51 (74) 2 (13) 435 430 417 FY14 Volume, Global Direct Other FY15 FX FY15 price, mix Supply costs (constant FX) Chain 45 Appendix 11b Pallets EMEA: Underlying Profit analysis (US$M) 15 3 (10) (34) 44 378 344 326
Slide 26: Pallets Asia-Pacific and RPCs Underlying Profit analysis
Appendix 11c For personal use only Pallets Asia-Pacific: Underlying Profit analysis (US$M) 3 (3) (5) 8 (7) 79 76 72 FY14 Volume, Global Direct Other FY15 FX FY15 price, mix Supply costs (constant FX) Chain 47 Appendix 11d RPCs: Underlying Profit analysis (US$M) (10) 30 (12) 144 132 124 FY14 Volume,
Slide 27: Containers Underlying Profit analysis; Disclaimer
Appendix 11e For personal use only Containers: Underlying Profit analysis (US$M) (6) 24 2 1 65 59 38 FY14 Volume, Other Acquisitions FY15 FX FY15 price, mix (constant FX) 49 Disclaimer The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and
Slide 28: Investor Relations contacts
Investor Relations contacts For personal use only 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 51 Full-Year Resu