Brambles Limited · ASX:BXB
Brambles — H1 2007 Earnings Presentation
34 slides from Brambles's earnings presentation, Feb 21, 2007
Slide 1: Brambles 2007 Interim Results
Brambles 2007 Interim Results |@a 21 February 2007
Slide 2: 2007 Interim Results - David Turner, CEO
2007 Interim Results David Turner Chief Executive Officer
Slide 3: 1H07 sees transformation complete
1HO7 sees transformation complete ¢ Delivered strong profit growth « Asset disposal program successfully completed « Unification completed ¢ Utilisation of cash — Special Dividend (US$434 million, October 2006) — Cash Alternative (US$950 million, December 2006) ¢« Positioned to deliver further share
Slide 4: Summary - Interim results
Summary - Interim results ¢ Continuing operations — Sales revenue US$1.9bn (up 6%) — Comparable operating profit US$421m (up 20%) — PAT! at US$271m (up 46%) — EPS' 16.7 US cents (up 54%) — BVA at US$196m (up US$59m) 1 Before special items Growth % calculated on US$ constant currency basis a 3 Brambl
Slide 5: Business highlights
Business highlights * CHEP Americas — Sales growth 6%, profits up 31% — Further operational efficiencies « CHEP Europe — Sales growth 2%, profits up 5% — Increased costs — lumber (US$2m) and Brentwood closure (US$8m) « CHEP RoW — Sales growth 9%, profits up 13% * Recall — Integration of AUSDOC and k
Slide 6: 2007 Interim Results - Mike Ihlein, CFO
2007 Interim Results Mike Ihlein Chief Financial Officer 5 Brambles
Slide 7: Strong growth in profit and BVA
Strong growth in profit and BVA Actual Constant 1H07 1H07 1H06 Growth AIFRS US$m US$m US$m % Continuing operations’ Sales revenue 1,872.7 1,811.2 1,707.6 6 Comparable operating profit 421.2 410.5 342.3 20 PBT 413.1 402.7 280.6 44 PAT 270.6 263.8 180.1 46 EPS! (cents) 16.7 16.3 10.6 54 BVA (June 06 r
Slide 8: Solid sales in continuing operations
Solid sales in continuing operations Actual Constant 1H07 1H07 1H06 Growth AIFRS Us$m Us$m UsS$m % CHEP 1,564.6 1,512.6 1,445.0 5 Recall 308.1 298.6 262.6 14 Continuing operations 1,872.7 1,811.2 1,707.6 6 Discontinued operations 252.1 238.5 1,323.2 nm! Total 2,124.8 2,049.7 3,030.8 nm! 1 Not meanin
Slide 9: ...with operating profit growth in both CHEP and Recall
...with operating profit growth in both CHEP and Recall Actual Constant 1H07 1H07 1H06 Growth AIFRS US$m US$m US$m % CHEP 385.2 375.1 317.8 18 Recall 50.0 48.3 38.1 27 Continuing (pre corporate) 435.2 423.4 355.9 19 Unallocated corporate costs (14.0) (12.9) (13.6) 5 Continuing operations 421.2 410.5
Slide 10: Strong cash flow generation
Strong cash flow generation Actual 1H07 1H06 Change AIFRS US$m US$m USs$m Comparable operating profit' 421.2 342.3 78.9 Depreciation and amortisation’ 197.2 192.9 43 EBITDA 618.4 535.2 83.2 Capital expenditure (312.4) (303.0) (9.4) Proceeds from disposals 37.8 36.7 11 Working capital movement (54.2)
Slide 11: Excellent cash flow from CHEP
Excellent cash flow from CHEP US$m Cash flow from operations 800 @ First half M@ Second half 700 600 500 400 300 200 2004 2005 2006 2007 Year ended 30 June 10 Brambles
Slide 12: CHEP capex supports growth and Perfect Plants
CHEP capex supports growth and Perfect Plants US$m Capital expenditure 200 150 100 50 CHEP Americas CHEP Europe M@ 1HO05 M@ 1HO06 @ 1H07 a ggggSD—E—E—E=——;;—E=L—;—EqK——eE>Eo 11 Brambles
Slide 13: BVA - CHEP continues to deliver
BVA -CHEP continues to deliver 1H07 1H06 Growth AIFRS, June 06 rates US$m US$m US$m CHEP Americas 112 68 ae CHEP Europe 53 45 8 CHEP ROW 42 36 6 CHEP 207 149 \s8/ Recall 0 (2) 2 Continuing (pre corporate) 207 147 60 Unallocated corporate costs (11) (10) (1) Total continuing operations 196 137 59 12
Slide 14: Financial ratios
Financial ratios Facilities/ AIFRS, Actual rates Dec 06 Dec 05 Covenants Closing Net Debt (US$m) 2,023.1 3,771.0 Interest cover (x) * Comparable operating profit 57.0 7.6 + EBITDA 81.4 12.1 x 3.5 (min) Net Debt / EBITDA (x) 0.7 1.4 x 3.5 (max) Gearing (%) Q7D 45.3 (Net Debt/Net Debt & Equity) ¢ Main
Slide 15: Sales growth CHEP
Sales growth GCHEP Actual Constant 1H07 1H07 1H06 Growth AIFRS US$m US$m US$m % Americas 692.8 689.6 651.0 6 Europe 669.8 619.9 608.0 2 RoW 202.0 203.1 186.0 9 Sales revenue 1,564.6 1,512.6 1,445.0 5 Comparable operating profit 385.2 375.1 317.8 18 Profit margin (%) 25 25 22 3 pp Growth % calculated
Slide 16: Americas continues strong profit growth
Americas continues strong profit growth <cHEr Comparable operating profit Actual Constant 1H07 1H07 1H06 Growth AIFRS US$m US$m US$m % Americas 190.9 189.8 145.0 31 Europe 132.7 122.6 117.3 5 RoW 61.6 62.7 55.5 13 Total 385.2 375.1 317.8 18 Growth % calculated on US$ constant currency basis — SSSS>S
Slide 17: Americas - Volume and efficiencies deliver gains
Americas — Volume and efficiencies CHEP deliver gains S US$m 40 9 190 (5) 1HO6 Comparable Volume, Price —‘ Transportation Plant costs Other 1HO7 Comparable operating profit & Mix operating profit All numbers are calculated at constant currency 16 Brambles
Slide 18: Europe - Increased transport costs offsetting efficiencies
Europe — Increased transport costs offsetting efficiencies GCHEP Us$m 1HO6 Comparable Volume, Price Transportation —_—Plant costs Other 1HO7 Comparable operating profit & Mix operating profit All numbers are calculated at constant currency oo eee 17 Brambles
Slide 19: North America delivering growth - Recall
North America delivering growth recall Actual Constant — 1H07 1HO7 1H06 Growth US$m US$m US$m % Americas 146.5 144.7 133.5 8 Europe 77.3 71.3 71.6 Note’ RoW 84.3 82.6 57.5 44 Sales revenue 308.1 298.6 262.6 14 Comparable operating profit 50.0 48.3 38.1 27 Profit margin (%) 16 16 15 1 pp 1 The underl
Slide 20: Effective tax rate - continuing operations
Effective tax rate — continuing operations Actual Actual 1H07 1H06 AIFRS US$m Us$m PBT! 413.1 280.6 Tax! 142.5 100.5 Effective tax rate % of PBT 34.5% 35.8% 1 Before special items 19 Brambles
Slide 21: Special items
Special items Actual 1H07 1H06 AIFRS US$m US$m Amortisation of acquired intangible assets (2.2) (1.1) Stamp duty on Unification (28.8) - Restructuring and Unification costs (69.1) (9.4) AUSDOC integration costs 7 (12.2) Special items from continuing operations (100.1) (22.7) Business disposals 784.7
Slide 22: 2007 Interim Results - David Turner, CEO
2007 Interim Results David Turner Chief Executive Officer 21 Brambles
Slide 23: Europe - focus on top line growth
Europe — focus on top line growth GCHEP ¢ Significant growth potential — Existing customers — Converting white wood customers » Increased cost of new white wood pallets — New geographies ¢« Improving customer satisfaction — Service levels — Invoicing * On-going operational efficiencies — Perfect Pla
Slide 24: Americas - further network optimisation
Americas — further network optimisation cHErP ¢« Total Pallet Management (TPM) evolving rapidly — Distributors/Emitters — Expanding footprint » 69 Service Centres, 129 TPM locations — Favourably impacts network logistics — Embedded in customers’ premises *« Technology adapted for TPMs — Inspection a
Slide 25: Perfect Plant technology into Es and Ds
Perfect Plant technology intoEsandDs @cHer ¢ Perfect Plants — 8 commissioned in 1HO7 » Europe (Swindon, Dublin) » Americas (Mexico City, Brampton - Canada, Atlanta) » RoW (Erskine Park, Kraaifontein, Bloemfontein) — 8 more in 2HO7 — 12 Sorting modules to be installed at Es and Ds — 6 Facilities to b
Slide 26: Recall - solid improvement
Recall — solid improvement recall ¢ Strong contract wins in North America — Bank of America, Chevron (Document Management Solutions) — JPMorgan — 50% of contract (Secure Destruction Services) * Focus on processes and costs « AUSDOC integration benefits 25 Brambles
Slide 27: Capital Management
Capital Management * On-going share buy-backs announced * Reviewing alternatives 26 Brambles
Slide 28: Outlook for 2007
Outlook for 2007 * CHEP — another year of strong profit growth * CHEP Americas — Solid growth in sales and continuing very strong profit growth ¢ CHEP Europe — Focus on acquiring new customers and operational efficiencies — Continued profit growth and good cash generation « CHEP RoW — continues to p
Slide 29: Disclaimer statement
Disclaimer statement 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 restrict
Slide 30: Brambles 2007 Interim Results
Brambles 2007 Interim Results }@7— | 21 February 2007
Slide 31: Glossary of terms & measures Appendix 1a
Glossary of terms & measures Appendix 1a Except where noted, common terms and measures used in this document are based upon the following definitions: Sales revenue Comparable operating profit PBT PAT EPS DPS Shares in issue Organic growth Excludes revenues of associates and non trading revenue. Pro
Slide 32: Glossary of terms & measures Appendix 1b
Glossary of terms & measures Appendix 1b Except where noted, common terms and measures used in this document are based upon the following definitions: Constant currency Actual rates Continuing operations Discontinued operations Special items Unification Translation of both current period and compara
Slide 33: Glossary of terms & measures Appendix 1c
Glossary of terms & measures Appendix 1c Except where noted, common terms and measures used in this document are based upon the following definitions: Unallocated Head office costs which are not allocated back to the divisions. These are corporate costs excluded from the segmental analyses. Associat
Slide 34: Contact details
Contact details John Hobson Head of Investor Relations john.hobson@brambles.com +61 (2) 9256 5216 Michael Sharp Vice President Corporate Affairs michael.sharp@brambles.com +61 (2) 9256 5255 33 Brambles