Slide 1: Copies of slides for 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 19 February 2014 The Manager - Listings Australian Securities Exchange Limited Exchange Centre
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Slide 3: Half-Year Results 19 February 2014
For personal use only Half-Year Results 19 February 2014 Results Highlights Tom Gorman, CEO
Slide 4: Results Highlights: Key messages
Results Highlights Key messages For personal use only • Modest improvement in economic conditions in key markets supports strong sales and profit result • Pallets: return on capital up on efficiency and asset utilisation gains • RPCs: volumes up in all regions; actions underway to drive sales and of
Slide 5: Key financial outcomes for the period reflected a solid Group result
Results Highlights Key financial outcomes for the period For personal use only reflected a solid Group result (Continuing operations) 1H14 result Change vs. 1H13 Actual FX Constant FX Sales revenue US$2,669M 7% 8% Operating profit US$453M 11% 11% Profit after tax US$280M 11% 9% Basic earnings per sh
Slide 6: Economic conditions enabling more selective approach to business growth
Results Highlights Economic conditions enabling more For personal use only selective approach to business growth Composition of Pallets’ sales revenue growth Contribution from net new business wins by half-year period to Pallets’ 1H14 sales revenue 9% 35 8% Constant currency sales revenue growth 30
Slide 7: Strong efficiency improvements amid better organic conditions in Pallets EMEA
Results Highlights Strong efficiency improvements amid better For personal use only organic conditions in Pallets EMEA (US$M) 1H14 Change vs. 1H13 • Improved organic conditions, expansion in emerging markets, Actual Constant FX FX continued progress in Germany Europe 646 8% 4% • Price and sales mix
Slide 8: Positive trends for capex, asset utilisation and ROCI in Pallets
Results Highlights We are seeing positive trends for capex, For personal use only asset utilisation and ROCI in Pallets Pallets: ratio of annualised sales revenue Pallets: maintenance vs. growth capex to Average Capital Invested 800 16% 1.2 700 14% Total Pallets capex (US$M) 600 12% 1.1 DIN/sales re
Slide 9: North American RPCs: mitigating actions underway
Results Highlights North American RPCs: mitigating actions For personal use only underway but short-term challenges remain IFCO North America sales volume growth • Volume growth remains strong, 200 reflecting increasing penetration 180 versus cardboard 160 • Pricing pressures and pool expansion drov
Slide 10: Finance Update: A solid financial performance
For personal use only Finance Update Zlatko Todorcevksi, CFO Finance Update A solid financial performance, can be built upon with actions on costs • Strong first-half operating profit despite cost headwinds • Progress shown in line with key initiatives – Continued capital efficiency supporting ROCI
Slide 11: Strong 11% increase in operating profit
Finance Update Strong 11% increase in operating profit For personal use only vs. prior corresponding period Group operating profit bridge (US$M, continuing operations) 6 13 (44) 79 (10) (1) 1 452 453 409 FX 1H13 acquisition PMS synergies Direct costs Significant 1H14 actual price/mix Other efficienc
Slide 12: Group ROCI improvement consistent with long-term 20% objective
Finance Update Group ROCI improvement consistent with For personal use only long-term 20% objective ROCI by operating segment Adjusted ROCI (excluding impact of intangibles)1 25% 20% 15% 10% 5% FY09 FY10 FY11 FY12 FY13 1H13 1H14 Pallets RPCs Containers Group Note: FY09 costs includes Significant Ite
Slide 13: Cash Flow from Operations showed a solid improvement
Finance Update Cash Flow from Operations showed a For personal use only solid improvement in the half (US$M) 1H14 1H13 Change EBITDA 719 664 55 Capital expenditure (433) (422) (11) Proceeds from sale of PP&E 34 35 (1) Working capital movement 27 (16) 43 IPEP expense 50 54 (4) Provisions/other (21) (
Slide 14: Confirming our FY14 outlook
Outlook & Summary We are confirming our FY14 outlook in line For personal use only with our previous guidance1 • Continuing operations – Constant-currency sales revenue growth of approximately 7% – Underlying Profit of US$930M to US$965M (30 June 2013 FX)2 • Net finance costs at approximately US$110
Slide 15: Q&A / Disclaimer
For personal use only Q&A Disclaimer The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and obser
Slide 16: Investor Relations contacts
Investor Relations contacts For personal use only Cathy Press Group Vice President, Capital Markets cathy.press@brambles.com +61 2 9256 5241 +61 419 290 745 James Hall Senior Director, Investor Relations & Corporate Affairs james.hall@brambles.com +61 2 9256 5262 +61 401 524 645 27 Appendices
Slide 17: Appendix 1: Glossary of terms and measures
Appendices Appendix 1: Glossary of terms and measures For personal use only Except where noted, common terms and measures used in this document are based upon the following definitions: Actual currency/FX In the statutory financial statements, Brambles translates foreign currency results into US dol
Slide 18: Appendix 2: 1H14 currency mix
Appendices Appendix 2: 1H14 currency mix For personal use only (US$M) Total USD EUR GBP AUD Other Pallets 2,042.2 865.6 412.8 178.2 141.3 444.3 RPCs 440.9 84.4 214.2 28.1 40.0 74.2 Containers 186.2 31.9 70.3 16.4 27.4 40.2 Sales revenue 2,669.3 981.9 697.3 222.7 208.7 558.7 Operating Profit 452.9 12
Slide 19: Appendix 4: Significant Items
Appendices Appendix 4: Significant Items For personal use only Continuing operations (US$M) 1H14 1H13 Underlying Profit 458.1 417.6 Significant Items: Acquisition-related costs - (4.5) Restructuring & integration costs (5.2) (4.1) Subtotal (5.2) (8.6) Operating profit 452.9 409.0 33 Appendices Appen
Slide 20: Appendix 6: Effective tax rate
Appendices Appendix 6: Effective tax rate For personal use only 1H14 1H13 Continuing operations (US$M) Statutory Underlying Statutory Underlying Profit before tax 396.0 401.2 354.4 363.0 Tax expense 115.6 117.1 101.5 102.8 Effective tax rate 29.2% 29.2% 28.6% 28.3% 35 Appendices Appendix 7: Key bala
Slide 21: Appendix 8: Credit facilities and debt profile
Appendices Appendix 8: Credit facilities and debt profile For personal use only US$B at 31 December 2013 Committed Uncommitted Maturity Type Debt drawn Headroom facilities facilities <12 months Bank/USPP1/Other 0.2 0.2 0.2 0.2 1 to 2 years Bank/144A2/Other 0.7 - 0.3 0.4 2 to 3 years Bank/USPP1/Other
Slide 22: Appendix 10a: Pallets Americas operating profit reconciliation
Appendices Appendix 10a: Pallets Americas operating profit For personal use only reconciliation (US$M) 10 (27) 32 4 (2) (3) 208 205 191 1H13 Volume/ Efficiencies/ Direct Other Significant 1H14 FX 1H14 price/mix synergies costs Items actual Constant currency 39 Appendices Appendix 10b: Pallets EMEA o
Slide 23: Appendix 10c: Pallets Asia-Pacific operating profit reconciliation
Appendices Appendix 10c: Pallets Asia-Pacific operating profit For personal use only reconciliation (US$M) 6 (3) (4) 37 34 33 1H13 Volume/ Direct 1H14 FX 1H14 price/mix costs actual Constant currency 41 Appendices Appendix 10d: RPCs operating profit reconciliation (US$M) 11 (9) (12) 68 58 1H13 Volum
Slide 24: Appendix 10e: Containers operating profit reconciliation
Appendices Appendix 10e: Containers operating profit For personal use only reconciliation (US$M) 6 9 (3) (2) 18 8 1H13 Volume/ Direct costs Other Pallecon acquisition 1H14 price/mix 43 Appendices Appendix 11a: CHEP USA pallet productivity trends (B4840) Control ratio New equipment issue ratio (Retur
Slide 25: Appendix 11b: CHEP Europe pallet productivity trends
Appendices Appendix 11b: CHEP Europe pallet productivity For personal use only trends (B1210 and B1208) Control ratio New equipment issue ratio (Returns + recoveries/total issues) (Pallets purchased/total issues) 100% 10% 98% 8% 96% 6% 94% 4% 92% 2% 90% 0% FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY1
Slide 26: www.brambles.com
For personal use only www.brambles.com