Slide 1: Investor Information Pack cover letter to ASX
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 24 August 2010 The Manager - Listings Australian Stock Exchange Limited Exchange Centre 20 Brid
Slide 2: Investor Information Pack August 2010
For personal use only Investor Information Pack August 2010
Slide 3: Contact details
Contact details For personal use only For additional information, contact: Cathy Press Group Vice President, Capital Markets cathy.press@brambles.com +61 (2) 9256 5241 +61 (0) 419 290 745 (mobile) James Hall Manager, Investor Relations & Corporate Affairs james.hall@brambles.com +61 (2) 9256 5262 +6
Slide 4: Index
Index For personal use only 1. Company overview 4 2. CHEP 9 3. Recall 35 4. FY10 results review 40 - CEO overview - CFO overview 5. Appendix 92 3
Slide 5: Company profile
Company profile For personal use only Leading global provider of supply chain and information management solutions Group’s primary businesses CHEP and Recall Operates in 47 countries Over 12,000 employees Listed on the Australian Securities Exchange Total assets of US$4.9 billion as at 3
Slide 6: Two primary businesses
Two primary businesses For personal use only • CHEP is the leader in pallet and • Recall is a leader in the management container pooling services of information throughout its life cycle • Partners with customers to develop • One stop, end to end, information pooling solutions that ensure reduced ma
Slide 7: Executive Leadership Team
Executive Leadership Team For personal use only Tom Gorman Chief Executive Officer Joined Brambles in 2008 Greg Hayes Chief Financial Officer Jim Ritchie Joined Brambles in 2009 Group President, CHEP Americas Joined Brambles in 2009 Nick Smith Group Senior Vice Prsident, Human Resources Dolph Wester
Slide 8: 2010 sales revenue – by business unit
2010 sales revenue – by business unit For personal use only Business Sales (US$M) 17% 18% CHEP 3,407 9% 36% 37% 9% Recall 740 TOTAL 4,147 38% 36% CHEP Americas CHEP EMEA *all numbers are at actual exchange rates CHEP Asia-Pacific Recall Company 7 overview CHEP Recall FY10 Results Appendix
Slide 9: 2010 sales revenue – by service
2010 sales revenue – by service For personal use only *all numbers are at actual exchange rates Pallet Pooling Recall 18% Revenue US$3,004M Revenue US$740M 2% Pallets 238M Cartons 93M 4% 3% 73% Intermediate Bulk Containers (IBC) & Catalyst and Chemical Containers (CCC) & Other Automotive Containers
Slide 10: CHEP
For personal use only Company CHEP Recall FY10 Results Appendix overview
Slide 11: Products – not just pallets
Products – not just pallets For personal use only Intermediate Reusable Plastic Automotive Pallets Bulk Containers Containers Containers Company 10 overview CHEP Recall FY10 Results Appendix
Slide 12: Customer value proposition
Customer value proposition For personal use only Consistent quality pallets and containers Availability Reduced product damage Eliminate pallet purchases, exchange and repair Reduced transportation and handling Competitive pricing Improved employee and customer safety Environmental sustainability Co
Slide 13: CHEP's asset base
CHEP’S asset base For personal use only Pooling equipment book value @ 30 June 2010 = US$2.6BN Auto Other RPC 3% 1% 5% Pallets 91% Company 12 overview CHEP Recall FY10 Results Appendix
Slide 14: Growth opportunities
Growth opportunities For personal use only Mature Growth Developing Company 13 overview CHEP Recall FY10 Results Appendix
Slide 15: How pallet pooling works
How pallet pooling works For personal use only Service centre Manufacturer (Emitter - E) Retailer Service centre (Distributor - D) Service Centre Manufacturer / Emitter Retailer / Distributor Service Centre 1. CHEP issues ready-for-use 2. Upon receipt of CHEP 3. At the end of the supply chain, 4. CH
Slide 16: Pallet pooling model physical flows
Pallet pooling model physical flows For personal use only One way trip Exchange Transfer hire (e.g. USA) (e.g. UK) (e.g. Australia) 1 1 1 Manufacturer Manufacturer Manufacturer 2 3 2 3 CHEP CHEP Transporter CHEP Transporter 2 Plant Plant Plant 4 2 3 4 2 3 Retailer 3 Retailer Retailer 1 Pallet issued
Slide 17: Pallet pricing architecture
Pallet pricing architecture For personal use only Transfer One way Exchange hire 9 9 9 Fee for issue of a quality Issue fee assured pallet from a CHEP service centre Fee for each day that a Daily hire fee customer uses or remains responsible for a pallet 9 9 9 9 9 8 Fee for use as pallet Transfer fe
Slide 18: One way trip (e.g. USA)
One way trip (e.g. USA) For personal use only Issue fees are the prime source 1 of revenue Manufacturer Issue volume is a proxy for revenue Customer taking the issue pays CHEP 2 Plant Main revenue stream Issue fee – for issue of a pallet 3 from a CHEP service centre Retailer Company 17 overvie
Slide 19: Exchange (e.g. UK)
Exchange (e.g. UK) For personal use only Movement fees are the prime 1 sources of revenue Manufacturer Number of movements and average volume of pallets in the field are proxies for revenue 2 3 Primarily manufacturers and CHEP transporters pay Transporter Plant “Managed Recovery” variation 2
Slide 20: Transfer hire (e.g. Australia)
Transfer hire (e.g. Australia) For personal use only 1 Daily fees are the prime source of Manufacturer revenue Average volume of pallets in the field is a proxy for revenue 2 3 All market participants pay CHEP Transporter Plant 2 3 4 Main revenue stream Retailer Daily fee – for each day a pall
Slide 21: Total Pallet Management (TPM)
Total Pallet Management (TPM) For personal use only Optimising transport activity and 1 equipment moves within the Manufacturer network ETPM Possibility to reduce empty hauls between specific manufacturer and retailer CHEP Improved communication and 2 coordination between customer Plant and CH
Slide 22: Pallet life cycle: accounting perspective
Pallet life cycle: accounting perspective For personal use only New pallets Pallets ready Manufacturer for issue Pallets repaired Pallets Retailer assessed “Deemed Scrapped irrecoverable”* LEGEND pallet flows *Deemed irrecoverable from an accounting perspective at a specific point in time Company 21
Slide 23: Pallet life cycle: key drivers
Pallet life cycle: key drivers For personal use only Sales growth Asset turns Transport costs Plant costs Asset management costs • recovery • depreciation • IPEP expense Company 22 overview CHEP Recall FY10 Results Appendix
Slide 24: Asset management – accounting for irrecoverable pallets
Asset management – accounting for pallets deemed irrecoverable For personal use only Pallets that cannot be accounted for at a particular location at a specific point in time are deemed ‘irrecoverable’ from an accounting perspective Two types of irrecoverable pallets Compensatable Uncompensatabl
Slide 25: Irrecoverable Pooling Equipment Provision (IPEP)
Irrecoverable Pooling Equipment Provision (IPEP) For personal use only Irrecoverable Pooling Equipment Provision Expense • Reflects the cost to CHEP in the period of known and estimated uncompensatable irrecoverable pallets at a particular point in time • Includes pallets that are unaccounted for
Slide 26: Cost structure and key profit drivers
Cost structure and key profit drivers For personal use only Management accounts for the year ended 30 June 2010 US$ / % Sales revenue 100 Transport costs (19) Plant operations (33) Depreciation (11) Net gains on disposals of PPE 1 IPEP expense (3) Other operating expenses (16) Operating profit 19 No
Slide 27: Impact on financial statement
Impact on financial statement For personal use only Income statement Balance sheet Cash flow statement Property, Plant and Purchases of Property, Asset purchase - Equipment / Trade Plant & Equipment payables Fees Sales revenue Trade receivables Receipts from customers Operating expenses. Direct cost
Slide 28: Capex – cash to book – FY10
Capex – cash to book – FY10 For personal use only US$M actual exchange rates 497 2 499 54 54 391 41 350 FY10 Cash Accrual FY10 Recall Land and Pooling Containers Pallets movement additions P&E Book Capex Company 27 overview CHEP Recall FY10 Results Appendix
Slide 29: Pallet numbers
Pallet numbers For personal use only 300 251 251 (13)M 250 230 237 242 18 +0M 18 238 16 +5M 16 +9M 18 16 +7M Pallets (millions) 200 126 132 130 128 126 150 127 100 50 93 100 101 103 94 87 0 FY05 FY06 FY07 FY08 FY09 FY10 CHEP Americas CHEP EMEA CHEP Asia-Pacific Pallet numbers are shown gross,
Slide 30: Guide to estimating pallet expenditure
Guide to estimating pallet expenditure* For personal use only Example Assume the pallet pool consists of 250M pallets of capex Assume average pallet price for example: US$20 Assume growth rate for example: 4% of the pool or 10M pallets ~US$200M Assume replacement rate for example: 10% of the
Slide 31: Book capex/depreciation – FY10
Book capex/depreciation – FY10 For personal use only Pallets are ~76% of the net carrying amount of plant and equipment Capex and depreciation underlying ratio Pallet Capex Pallet depreciation + IPEP + NBV of compensatable pallets Example: US$350M US$287M + US$111M + (US$58M × 76%) Company 30 over
Slide 32: Book capex/(Depreciation + IPEP + NBV) for pallets
Book capex/(Depreciation + IPEP + NBV) for pallets For personal use only 1.4 1.3 1.2 1.2 Capex / DIN (times) 0.3 Growth 0.2 1.0 1.0 0.8 0.8 0.6 1.0 1.0 Replacement 1.0 0.4 0.8 0.2 0.0 FY07 FY08 FY09 FY10 Company 31 overview CHEP Recall FY10 Results Appendix
Slide 33: Control ratio and asset management
Control ratio and asset management For personal use only Internally used to measure asset management in the one way trip pooling model (Pallet returns + recoveries) / total issues A lower control ratio drives higher replacement capex (assuming that the pool is stable) Limitations to use • do
Slide 34: Pallet audit process
Pallet audit process For personal use only In addition to monitoring plant operations using KPIs, CHEP regularly conducts physical audits to validate pallet quantities at customer locations Adjustments to pallet holdings are made once audits are reconciled and finalised. This can take some month
Slide 35: Note
Note For personal use only CHEP maintains ownership of all its pallets and other pooling equipment even when such assets may physically be in the hands of manufacturers, retailers, pallet recyclers or others. Notwithstanding the accounting treatment and perspective, which requires certain provisions
Slide 36: Recall
For personal use only Company CHEP Recall FY10 Results Appendix overview
Slide 37: Information management
Information management For personal use only Global leader in document and information management Operations in over 300 facilities in 23 countries Approximately 5,000 employees working for nearly 80,000 customers Effectively manages customers’ information throughout its lifecycle Headquar
Slide 38: Services
Services For personal use only Document Management Solutions (DMS) • Secure indexing, storage, image capture and retrieval of physical and digital documents Secure Destruction Services (SDS) • Confidential destruction of sensitive documents, other media and items of high intrinsic value Data P
Slide 39: Specialised logistics processes
Specialised logistics processes For personal use only STORAGE Documents placed Cartons coded Transport to in cartons according to contents Information Center Storage Physical Inventory Delivery Internet Inventory TRANSFER INVENTORY TRANSPORT ENTRANCE TO INFORMATON CENTER SEARCH & RETRIEVAL Search Tr
Slide 40: The Recall advantage
The Recall advantage For personal use only CARTONS Model Safety Standard Operating Fire Prevention Procedures Risk Mitigation Security Efficiency Benchmarking Security Breach & Best Practices Protocol Innovation/RFID Ongoing Training IMPACT Peace of mind Perfect Order Global Footprint Environment Gl
Slide 41: 2010 full-year results presentation
For personal use only 2010 full-year results presentation 19 August 2010
Slide 42: Discussion topics
Discussion topics For personal use only Business update Tom Gorman, CEO FY10 results analysis Greg Hayes, CFO Outlook Looking forward – growth Tom Gorman, CEO opportunities Company 41 overview CHEP Recall FY10 Results Appendix
Slide 43: Business update
For personal use only Business update Tom Gorman, CEO
Slide 44: Key messages
Key messages For personal use only Delivering on commitments • Quality improvement • Cost disciplines • Emerging market growth Stable, resilient business in volatile market conditions • Improvement in second-half performance Strong cash flow and balance sheet Company 43 overview CHEP Recall FY
Slide 45: Financial highlights
Financial highlights For personal use only % change % change (actual (constant US$M FY10 FY09 FX rates) currency)* Sales revenue 4,146.8 4,018.6 3% – Statutory operating 724.5 718.2 1% (3%) profit Statutory profit after tax 443.9 434.0 2% (1%) Earnings per share (US 31.8 32.6 (2%) (6%) cents)** Fr
Slide 46: Business unit highlights
Business unit highlights For personal use only CHEP Americas • Achieving quality improvements • Positive sales momentum since Better Everyday • Improved operational controls CHEP EMEA • Strong growth in developing regions • Continuing to win business in established regions • Restructuring saving
Slide 47: Business unit highlights (continued)
Business unit highlights (continued) For personal use only CHEP Asia-Pacific • Australia resilient and growing • Strong growth in China and India • Ongoing efficiency focus Recall • Robust profit growth • Strong sales pipeline • Improving margins and return on capital Company 46 overview CHEP Re
Slide 48: Better Everyday progress
Better Everyday progress For personal use only Quality • 100% of network issues at US Plus specification • Strong customer feedback Ease of doing business • 70% of customers using Portfolio+Plus • Roll out of simplified invoice in Q1 of FY11 Sales and marketing • 20+ new hires made; new struct
Slide 49: CHEP USA quality costs
CHEP USA quality costs For personal use only Ongoing Component FY10 FY11 FY12 US$M (per year) October ‘09 Pre-Better Everyday 37 - - - forecast Better Everyday fast-track 30 50 30 - Better Everyday ongoing 50 50 50 50 Total 117 100 80 50 FY10 outcome/ Total 108.5 95 55 25 revised forecast Reduction
Slide 50: Business wins
Business wins For personal use only Sales revenue value of business wins (US$M) Net new business* FY10 annualised** CHEP Americas (9) 2 CHEP EMEA 30 39 CHEP Asia-Pacific 15 11 Recall 17 23 Brambles 53 75 * Net new business = change in sales revenue in the period resulting from business won or lost i
Slide 51: Results analysis
For personal use only Results analysis Greg Hayes, CFO
Slide 52: Results overview
Results overview For personal use only Actual Constant currency FY10 FY10 FY09 Growth US$M US$M US$M % Sales revenue 4,146.8 4,015.4 4,018.6 – Underlying profit 733.4 703.4 900.6 (22) Statutory operating profit 724.5 694.0 718.2 (3) Profit before tax 614.9 585.9 597.3 (2) Profit after tax 443.9 427.
Slide 53: Significant items
Significant items For personal use only FY10 FY09 Actual rates US$M US$M Underlying profit 733.4 900.6 Items within ordinary activities, but unusual due to size and nature: CHEP USA pallet quality program - (77.4) Walmart net transition impact - (29.0) Items outside the ordinary course of business:
Slide 54: CHEP
For personal use only CHEP
Slide 55: CHEP – overview by region
CHEP – overview by region For personal use only Actual Constant US$M FY10 FY10 FY09 Growth % Americas 1,533.6 1,510.3 1,556.9 (3) EMEA 1,482.6 1,470.8 1,452.6 1 Asia-Pacific 390.9 334.4 323.4 3 Sales revenue 3,407.1 3,315.5 3,332.9 (1) Statutory operating profit 637.9 609.1 573.4 6 Profit margin (%)
Slide 56: Americas – sales revenue
Americas – sales revenue For personal use only US$M 1,557 (24) (14) (9) 1,510 FY09 Price, mix Organic volume Net new business FY10 All numbers are calculated at constant currency Company 55 overview CHEP Recall FY10 Results Appendix
Slide 57: Americas – sales revenue highlights
Americas – sales revenue highlights For personal use only US$M, actual rates Growth vs. FY09 58 USA 5% Canada 3% Latin America 5% Other 5% 1,471 Pallets RPC Automotive Other 96% <1% <1% 4% Growth % calculated on constant currency basis Company 56 overview CHEP Recall FY10 Results Appendix
Slide 58: Americas – statutory operating profit
Americas – statutory operating profit For personal use only US$M 229 (42) 204 227 (108) (43) (13) FY09 Vol, price, mix Better Everyday Direct costs Other Significant FY10 items All numbers are calculated at constant currency Company 57 overview CHEP Recall FY10 Results Appendix
Slide 59: EMEA – sales revenue
EMEA – sales revenue For personal use only US$M 30 1,471 11 (23) 1,453 FY09 Price, mix Organic volume Net new business FY10 All numbers are calculated at constant currency Company 58 overview CHEP Recall FY10 Results Appendix
Slide 60: EMEA – sales revenue highlights
EMEA – sales revenue highlights For personal use only US$M, actual rates Growth vs. FY09 12 UK & Ireland 0% 99 Iberia 3% 109 France 2% CEE 25% MEA 12% Other 2% 1,263 Pallets RPC Automotive Other 85% 7% 7% 1% Growth % calculated on constant currency basis Company 59 overview CHEP Recall FY10 Results
Slide 61: EMEA – statutory operating profit
EMEA – statutory operating profit For personal use only US$M 36 319 287 (1) (18) 2 13 FY09 Vol, price, mix Quality Direct costs Other Significant FY10 items All numbers are calculated at constant currency Company 60 overview CHEP Recall FY10 Results Appendix
Slide 62: Asia-Pacific – sales revenue
Asia-Pacific – sales revenue For personal use only US$M 8 (12) 15 334 323 FY09 Price, mix Organic volume Net new business FY10 All numbers are calculated at constant currency Company 61 overview CHEP Recall FY10 Results Appendix
Slide 63: Asia-Pacific – sales revenue highlights
Asia-Pacific – sales revenue highlights For personal use only US$M, actual rates Growth vs. FY09 33 Australia 1% 26 NZ 1% China 77% 63 Other 31% 269 Pallets RPC Automotive Other 69% 16% 7% 8% Growth % calculated on constant currency basis Company 62 overview CHEP Recall FY10 Results Appendix
Slide 64: Asia-Pacific – statutory operating profit
Asia-Pacific – statutory operating profit For personal use only US$M 3 63 3 (1) 58 FY09 Vol, price, mix Direct costs Significant items FY10 All numbers are calculated at constant currency Company 63 overview CHEP Recall FY10 Results Appendix
Slide 65: Recall
For personal use only Recall
Slide 66: Recall – overview
Recall – overview For personal use only Actual Constant US$M FY10 FY10 FY09 Growth % Americas 335.3 326.1 313.3 4 Europe 188.7 187.4 188.9 (1) RoW 215.7 186.4 183.5 2 Sales revenue 739.7 699.9 685.7 2 Statutory operating profit 123.1 114.0 95.9 19 Profit margin (%) 17 16 14 Growth % calculated on co
Slide 67: Recall – sales revenue
Recall – sales revenue For personal use only US$M 17 700 8 (11) 686 FY09 Price, mix Organic vol Net new business FY10 All numbers are calculated at constant currency Company 66 overview CHEP Recall FY10 Results Appendix
Slide 68: Recall – sales revenue by service line
Recall – sales revenue by service line For personal use only US$M, actual rates Growth vs. FY09 73 DMS 4% SDS 4% 146 DPS 1% 521 2H Growth vs. 2H09 DMS 5% SDS 10% DPS 3% DMS SDS DPS 70% 20% 10% Growth % calculated on constant currency basis Company 67 overview CHEP Recall FY10 Results Appendix
Slide 69: Recall – statutory operating profit
Recall – statutory operating profit For personal use only US$M 8 (8) 7 114 11 96 FY09 Vol, price, mix Direct costs Other Significant items FY10 All numbers are calculated at constant currency Company 68 overview CHEP Recall FY10 Results Appendix
Slide 70: Cash flow and finance
For personal use only Cash flow and finance
Slide 71: Cash flow strength
Cash flow strength For personal use only US$M actual rates FY10 FY09 Change EBITDA 1,177.4 1,212.6 (35.2) Capital expenditure (496.5) (683.8) 187.3 Proceeds from disposals 88.0 104.6 (16.6) Working capital movement 14.7 25.8 (11.1) Irrecoverable pooling equipment provision 111.2 97.8 13.4 Provisions
Slide 72: Financial position
Financial position For personal use only Actual rates Jun 10 Jun 09 Net debt (US$M) 1,759.3 2,143.4 Gearing* (%) 51.9 60.0 Actual rates FY10 FY09 Covenants EBITDA**/ net finance costs (x) 10.7 10.0 3.5 (min) Net debt/ EBITDA (x) 1.5 1.8 3.5 (max) Undrawn committed credit facilities of US$1,946.6M
Slide 73: Outlook
For personal use only Outlook
Slide 74: Outlook
Outlook For personal use only FY11 guidance, subject to unforeseen circumstances and ongoing economic uncertainty • Sales growth in all business units • Continued quality investment, storage cost • Statutory operating profit: US$740M to US$780M* • Interest cost approximately US$115M • Lower ongoin
Slide 75: Looking forward – growth opportunities
For personal use only Looking forward – growth opportunities Tom Gorman, CEO
Slide 76: Core strengths
Core strengths For personal use only Global footprint Local networks Intellectual property Customer franchises Financial position Company 75 overview CHEP Recall FY10 Results Appendix
Slide 77: Current initiatives
Current initiatives For personal use only Geographic expansion • Emerging markets CHEP USA continuous improvement • Small and mid-sized company opportunity Product scope expansion Global growth platforms • Automotive • LeanLogistics Company 76 overview CHEP Recall FY10 Results Appendix
Slide 78: Emerging markets
Emerging markets For personal use only China and India • FY10 sales revenue up 92% 92% Latin America • FY10 sales revenue up 7% 7% • Brazil and Argentina strong Central & Eastern Europe • FY10 sales revenue up 24% 24% • Unilever, P&G agreements in Turkey Growth % shown at actual FX rates Compa
Slide 79: CHEP USA pallet opportunity
CHEP USA pallet opportunity For personal use only Source: Brambles internal estimates, June 2010 Company 78 overview CHEP Recall FY10 Results Appendix
Slide 80: SME customer penetration
SME customer penetration For personal use only CHEP USA – contracts won and lost in FY10 Annualised sales revenue impact (US$M) Issue Pre-Better Post-Better Total # contracts volumes Everyday Everyday won <100K 8.7 20.8 29.5 1,032 100K-250K 1.4 5.2 6.6 16 250K-500K 0.2 4.6 4.8 5 500K-1M - 11.4 11.4
Slide 81: Expanding product scope
Expanding product scope For personal use only Outside of full-size pallets, CHEP is under-penetrated in other pooled platforms in all regions • Alternative pallet sizes • Reusable plastic containers • Intermediate bulk containers • Automotive • Other services The opportunity for expansion is pot
Slide 82: Served sectors – USA
Served sectors – USA For personal use only Opportunity and penetration estimate ~US$12BN ~US$1.1BN ~US$12BN ~US$1.1BN Transport (1%) 5% Auto 13% Other 16% Industrial 13% Auto 11% FMCG 25% 60% IBCs 19% 100% Plastic bins 11% RPCs 23% Fresh 48% 33% Pallets 20% Market CHEP Market CHEP Source: Brambles i
Slide 83: Served sectors – Australia
Served sectors – Australia For personal use only Opportunity and penetration estimate ~US$1BN ~US$0.3BN ~US$1BN ~US$0.3BN Transport (5%) 6% 6% 18% Auto 18% Other 6% 4% Industrial 17% 6% Auto (4%) 5% 11% IBCs 15% 22% Plastic bins 10% FMCG 41% RPCs 15% 30% 68% Pallets 38% Fresh 31% 24% Market CHEP Mar
Slide 84: Automotive opportunity
Automotive opportunity For personal use only Industry restructuring driving outsourcing • CHEP’s core value proposition: help customers lower total supply chain costs through the use of returnable packaging Unique intellectual property in design of packaging and systems Opportunities • Penetra
Slide 85: Intercontinental automotive flows
Intercontinental automotive flows For personal use only CHEP automotive penetration vs. assessed opportunity EMEA Light vehicle FY10 sales production, USA, Light vehicle revenue: US$99M production, 2016*: 10M Containers: 11M China, 2016*: 16M Americas FY10 sales Intercontinental Intercontinental rev
Slide 86: Global LeanLogistics opportunity
Global LeanLogistics opportunity For personal use only Growth • 32% increase in sales revenue since 2008 acquisition by Brambles Key strategies • USA expansion • New geography development: Brazil, Canada, Australia, Europe • Conversion of CHEP global logistics network • Integrated CHEP/LeanLogis
Slide 87: Myth of the "paperless office"
Myth of the “paperless office” For personal use only Six key growth drivers: Global physical document • Regulation and oversight management opportunity*** • Outsourcing 6% • Identity theft and privacy concerns • Corporate sustainability 28% • Globalisation • Digitisation 1975: Xerox introduces t
Slide 88: The bridge between paper and digital
The bridge between paper and digital For personal use only Explosion of data presents opportunities: • Specialised business Digital process outsourcing Size is not measurable; Physical • Emerging technology new solutions come to 67% unvended to augment existing market every day services • Other co
Slide 89: Summary
Summary For personal use only Solid result, strong financial position CHEP opportunities • Global footprint • CHEP USA growth momentum • Product and platform expansion • Global automotive • LeanLogistics Recall opportunities • Strong growth in underlying business • Bridging paper and digital C
Slide 90: Q&A
For personal use only Q&A
Slide 91: 2010 full-year results analyst presentation
For personal use only 2010 full-year results Analyst presentation 19 August 2010
Slide 92: Disclaimer statement
Disclaimer statement For personal use only 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
Slide 93: Appendices
For personal use only Appendices
Slide 94: Glossary of terms and measures
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 rates In the statutory financial statements, foreign currency results are translated into US dollars at the applicable
Slide 95: Glossary of terms and measures (continued)
Appendix 1 Glossary of terms and measures (continued) For personal use only Except where noted, common terms and measures used in this document are based upon the following definitions: Continuing Continuing operations refers to CHEP, Recall and Brambles HQ. operations EPS Profit after tax, minority
Slide 96: CHEP USA – plant operations and transportation trends
Appendix 2A CHEP USA – plant operations and transportation trends For personal use only Plant cost ratio* Transportation cost ratio (Plant costs / Sales) (Transportation costs / Sales) 45% 33% 40% 35% 28% 30% 23% 25% 20% 18% 2 3 4 5 6 7 8 9 0 02 03 04 05 06 07 08 09 10 0 0 0 0 0 0 0 0 1 FY FY FY FY
Slide 97: CHEP USA – productivity trends
Appendix 2B CHEP USA – productivity trends For personal use only Control ratio New equipment issue ratio (Returns + Recoveries / Total issues) (Pallets purchased / Total issues) 100% 10% 8% 98% 6% 96% 4% 94% 2% 92% 0% 02 03 04 05 06 07 08 09 10 02 03 04 05 06 07 08 09 10 FY FY FY FY FY FY FY FY FY F
Slide 98: CHEP Europe – plant operations and transportation trends
Appendix 3A CHEP Europe – plant operations and transportation trends For personal use only Plant cost ratio Transportation cost ratio (Plant costs / sales) (Transportation costs / sales) 35% 28% 30% 24% 25% 20% 20% 16% 02 03 04 05 06 07 08 09 10 2 3 4 5 6 7 8 9 0 0 0 0 0 0 0 0 0 1 FY FY FY FY FY FY
Slide 99: CHEP Europe – productivity trends
Appendix 3B CHEP Europe – productivity trends For personal use only Control ratio New equipment issue ratio (Returns + Recoveries / Total issues) (Pallets purchased / Total issues) 98% 10% 8% 96% 6% 94% 4% 92% 2% 90% 0% 02 03 04 05 06 07 08 09 10 02 03 04 05 06 07 08 09 10 FY FY FY FY FY FY FY FY FY
Slide 100: Currency mix
Appendix 4 Currency mix For personal use only FY10 Currency mix at Actual FX rates US$M Total USD EUR GBP AUD Other Sales revenue 4,146.8 1,366.2 1,058.1 395.4 501.6 825.5 Statutory operating 724.5 127.0 198.1 86.7 97.3 215.4 profit Net debt 1 1,759.3 1,581.2 266.8 (130.0) 34.3 7.0 1 Net debt shown
Slide 101: Effective tax rate
Appendix 5 Effective tax rate For personal use only Actual rates FY10 FY09 US$M US$M Statutory Underlying Statutory Underlying Profit before tax 614.9 623.8 597.3 779.7 Tax expense 171.0 173.6 163.3 245.4 Tax rate 27.8% 27.8% 27.3% 31.5% Company 100 overview CHEP Recall FY10 Results Appendix
Slide 102: Credit facilities and debt profile
Appendix 6 Credit facilities and debt profile For personal use only US$BN Committed Maturity Type Debt drawn Headroom facilities < 12 months Bank 0.3 0.2 0.1 1 – 2 years Bank/144A¹/USPP² 0.8 0.3 0.5 2 – 3 years Bank 0.7 0.1 0.6 3 – 4 years Bank 0.9 0.2 0.7 4 – 5 years 144A¹/USPP² 0.4 0.4 - > 5 years
Slide 103: Capital expenditure breakdown
Appendix 7 Capital expenditure breakdown For personal use only US$M Actual rates Pallets 497 2 499 54 22% Containers Other 8% 70% 54 391 41 350 FY10 Cash Accrual FY10 Recall Land and P&E Pooling Containers Pallets Movement Additions Company 102 overview CHEP Recall FY10 Results Appendix
Slide 104: Paper prices – North America
Appendix 8 Paper prices – North America For personal use only US$M Actual rates 250 210 Price per ton 170 130 90 50 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Company 103 overview CHEP Recall FY10 Results Appendix
Slide 105: CHEP – sales revenue by service line
Appendix 9 CHEP – sales revenue by service line For personal use only US$M, actual rates Growth vs. FY09 101 128 Pallets 1% 174 RPC 8% Automotive 6% Other 2% 3,004 2H Growth vs. 2H09 Pallets 1% RPC 1% Automotive 7% Other 12% Pallets RPC Automotive Other 88% 5% 4% 3% Growth % calculated on constant c