Slide 1: Copies of slides for analysts' briefing, Sydney
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 17 February 2010 The Manager - Listings Australian Securities Exchange Limited Exchange Centre
Slide 2: 2010 Interim Results Analyst Presentation
For personal use only 2010 Interim Results Analyst presentation 17 February 2010 Tom Gorman Chief Executive Officer 1
Slide 3: First-Half Results
FIRST-HALF RESULTS For personal use only Solid financial discipline • Cash flow • Balance sheet • Overhead reduction Sales negatively impacted by economic weakness • USA • Western Europe Winning business in all markets today Continuing long-term investment • Better Everyday in CHEP USA • Gro
Slide 4: Group Overview
GROUP OVERVIEW For personal use only Sales revenue Statutory Statutory EPS Free cash flow operating profit after dividends 2% 3% 8% US$224m Sales revenue down 2% • Subdued business conditions • Primarily Automotive and SDS Statutory operating profit down 3% • Underlying profit down 30% • Better
Slide 5: Sales Revenue by Product Line; CHEP Americas Results
SALES REVENUE BY PRODUCT LINE For personal use only US$m 49 65 Growth vs. 1H09 89 Pallets 2% RPC 15% Automotive 17% Other 7% 1,519 Pallets RPC Automotive Other 88% 5% 4% 3% Growth % calculated on constant currency 7 CHEP AMERICAS RESULTS Sales revenue Statutory operating Underlying profit Cash flow
Slide 6: Better Everyday; CHEP EMEA Results
BETTER EVERYDAY For personal use only Rollout progressing on target • US$65m expenditure in line with plan Pallet quality and service improvements • Positive reaction to new repair specifications • Rejections down Ease of doing business • Portfolio+Plus roll-out on track • Simplified invoice l
Slide 7: CHEP Asia-Pacific Results; Recall Sales by Product Line
CHEP ASIA-PACIFIC RESULTS For personal use only Sales revenue Statutory operating profit Cash flow from operations 4% 6% US$59m Sales revenue up 4% • CHEP Australia: new platforms offset lower pallet volumes • Weak automotive • China, India, South-East Asia, New Zealand sales growth Operating pr
Slide 8: Recall Results
RECALL RESULTS For personal use only Sales revenue Statutory operating profit Cash flow from operations 1% in line with prior period US$24m Sales revenue down 1% • Growth in core DMS • SDS down 15% • Excluding SDS sales up 4% Statutory operating profit in line with 1H09 • Up 16% excluding SDS •
Slide 9: 2010 First-Half Results; Significant Items
2010 FIRST-HALF RESULTS For personal use only Actual Constant 1H10 1H10 1H09 Growth US$m US$m US$m % Continuing operations Sales revenue 2,086.1 2,036.2 2,073.2 (2) Underlying profit 340.2 328.6 469.3 (30) Statutory operating profit 338.1 326.4 337.6 (3) Profit before tax 284.1 272.6 273.9 - Profit
Slide 10: Group Underlying Profit; CHEP Americas Overview
GROUP UNDERLYING PROFIT For personal use only US$m 469 19 15 65 23 18 329 1H09 Vol/Price/Mix Automotive/SDS Better Everyday & Direct costs Other 1H10 Quality All numbers are calculated at constant currency 17 OVERVIEW Actual Constant 1H10 1H10 1H09 Growth US$m US$m US$m % Americas 756.9 756.3 792.5
Slide 11: CHEP Americas and EMEA Statutory Operating Profit
CHEP AMERICAS – STATUTORY OPERATING PROFIT For personal use only US$m 233 34 65 20 99 26 18 16 108 80 1H09 Accelerated Walmart net Pallet quality 1H09 Better Vol, Price & Direct costs Other 1H10 Operating scrapping of transition program Underlying Everyday & Mix Operating profit surplus impact profi
Slide 12: CHEP Asia-Pacific Operating Profit; Recall Overview
CHEP ASIA-PACIFIC – STATUTORY OPERATING PROFIT For personal use only US$m 3 2 2 28 27 1H09 Vol, Price & Mix Automotive Other 1H10 (Australia) All numbers are calculated at constant currency 21 OVERVIEW Actual Constant 1H10 1H10 1H09 Growth US$m US$m US$m % Americas 161.9 159.9 161.2 (1) Europe 95.3
Slide 13: Recall Operating Profit; Cash Flow and Finance
RECALL – STATUTORY OPERATING PROFIT For personal use only US$m 50 1 6 6 1 50 1H09 Vol, Price & Mix SDS Direct Costs Other 1H10 All numbers are calculated at constant currency 23 Cash flow and finance 12
Slide 14: Strong Cash Flow; Capital Expenditure
STRONG CASH FLOW For personal use only US$m Actual rates 1H10 1H09 Change EBITDA 562.1 627.4 (65.3) Capital expenditure (254.6) (400.1) 145.5 Proceeds from disposals 43.6 41.2 2.4 Working capital movement (21.4) (65.5) 44.1 Irrecoverable pooling equipment provision 60.2 36.5 23.7 Provisions / other
Slide 15: Financial Ratios; Credit Facilities & Liquidity
FINANCIAL RATIOS For personal use only Actual rates Dec 09 Jun 09 Closing net debt (US$m) 2,028.4 2,143.4 Gearing (%) 55.3 60.0 (Net debt/Net debt & equity) Actual rates 1H10 1H09 Covenants EBITDA* / Net finance costs (x) 10.4 9.8 x 3.5 (min) Net debt / EBITDA* (x) 1.8 1.9 x 3.5 (max) * EBITDA is Un
Slide 16: Outlook
For personal use only Tom Gorman Chief Executive Officer OUTLOOK Outstanding business models • Market position • Customer base • New business pipeline • Long-term growth Positioned for improved performance as economic conditions recover 30 15
Slide 17: 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 18: Contact Details; Appendix 1A Glossary
CONTACT DETAILS For personal use only Michael Roberts Vice President, Investor Relations & Corporate Affairs michael.roberts@brambles.com +61 2 9256 5216 +61 418 263 199 James Hall Manager, Investor Relations & Corporate Affairs james.hall@brambles.com +61 2 9256 5262 +61 401 524 645 33 APPENDIX 1A
Slide 19: Appendix 1B Glossary of Terms & Measures (continued)
APPENDIX 1B GLOSSARY OF TERMS & 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 20: CHEP USA Asset Productivity; CHEP Europe Plant Trends
APPENDIX 2B CHEP USA – ASSET 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% 2 3 4 5 6 7 8 9 2 3 4 5 6 7 8 9 10 10 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 FY FY
Slide 21: CHEP Europe Asset Productivity; Currency Mix
APPENDIX 3B CHEP EUROPE – ASSET 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 2 3 4 5 6 7 8 9 10 10 0 0 0 0 0 0 0 0 FY FY FY FY
Slide 22: Effective Tax Rate; Credit Facilities & Debt Profile
APPENDIX 5 EFFECTIVE TAX RATE For personal use only 1H10 1H09 Actual rates US$m US$m Underlying profit before tax 286.2 405.6 Tax expense 77.9 135.1 Tax rate on Underlying profit 27.2% 33.3% Adjustment for non-recurring items 3.3% - Adjusted effective tax rate 30.5% 33.3% 41 APPENDIX 6 CREDIT FACILI
Slide 23: Capital Expenditure; Paper Prices North America
APPENDIX 7 CAPITAL EXPENDITURE For personal use only US$m Actual rates Pallets 17% Containers 255 22 Other 10% 73% 233 18 21 194 23 171 1H10 Cash Accrual FY09 Recall Land and P&E Pooling Containers Pallets Movement Additions 43 APPENDIX 8 PAPER PRICES – NORTH AMERICA US$m Actual rates 250 210 Price