Slide 1: Analyst Briefing - Slide presentation on results for half-year ended 31 December 2006
Brambies Limited ABN GF 196295023 Level 40 Gateway | Macquarie Place Sydney NSW 2000 Austrafica GPO Box 4173 Sydney NSW 2001 Tel +61 29256 $222 Fax +61 29256 5299 www. brambies.com Brambles 21 February 2007 The Manager - Listings Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYD
Slide 2: ERR
si hy at ERR
Slide 3: Transformation complete / Summary
“HOT se sees s transformation complet : | 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 sharehol
Slide 4: Business highlights
Business : 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$8m) CHEP RoW — Sales growth 9%, profits up 13% Recall — Integration of AUSDOC and key customer wins
Slide 5: Strong growth in profit and BVA
“Strong grov owth i profit and BVA | | Actual 1H07 AIFRS us$m Continuing operations! Sales revenue 1,811.2 1,707.6 6 Comparable operating profit 410.5 342.3 20 PBT 402.7 280.6 44 PAT 263.8 180.1 46 EPS! (cents) 16.3 10.6 54 BVA (June 06 rates) 196 137 US$59m Brambles Group PAT (after special items)
Slide 6: Comparable operating profit and cash flow
Actual 1H07 AIFRS US$m CHEP 317.8 Recall 48.3 38.1 27 Continuing (pre corporate} 423.4 355.9 19 Unallocated corporate costs (12.9) (13.6) 5 Continuing operations 410.5 342.3 20 Discontinued operations 38.3 128.2 nm! Total 448.8 470.5 nm? 1 Not meaningful due te timing of divestments and the impact o
Slide 7: Cash flow from operations and capital expenditure
US$m Cash flow from operations @ First half M@ Second half 2004 2005 2006 2007 Year ended 30 June 40 Brambles US$m Capital expenditure 150 100 50 CHEP Americas CHEP Europe l@ 1HO5 M@ 1H06 li 1H07 "1 Brambles
Slide 8: Net debt and financial structure
AIFRS, June 06 rates CHEP Americas CHEP Europe CHEP ROW CHEP Recall Continuing (pre corporate} Unallocated corporate costs Total continuing operations 12 Brambles AIFRS, Actual rates Closing Net Debt (US$m) 2,023.1 3,771.0 Interest cover (x) * Comparable operating profit 57.0 7.6 + EBITDA 81.4 12.1
Slide 9: CHEP comparable operating profit
AIFRS Americas Europe RoW Sales revenue Comparable operating profit Profit margin (%) Growth % calculated on US$ constant currency basis 14 Brarmbies Comparable operating profit Actual 1H07 AIFRS US$m Americas 189.8 145.0 34 Europe 122.6 117.3 5 Row 62.7 55.5 13 Total 375.1 317.8 18 Growth % calcula
Slide 10: CHEP profit bridges
meric as — Volume and efficiencies _ 9 190 ae, EG, EEE, 1HO6 Comparable Volurne, Price Transportation Plant costs Other 1H07 Comparable operating profit & Mix operating profit Ail numbers are calculated at constant currency 16 Brarmbies - Increased transport efficiencies __ Wi iy i) TE SEL OLIE SSIS
Slide 11: North America delivering growth
North Ame ica delive ring gr rowth : Actual 1H07 AIFRS us$m Americas Europe RoW Sales revenue Comparable operating profit Profit margin (%) 1 The underlying growth in salas was 5%, after adjusting for exiting the UK SDS business in FY06 Growth % calculated on US$ constant curmency basis 18 Brambles
Slide 12: Special items
is$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 - (12.2) Special items from continuing operations (100.1) (22.7) Business disposals 784.7 45.7 Impairments - (14.0) Restructuring a
Slide 13: Significant growth potential
* 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 Plants — Transportation/Network optimisation
Slide 14: Perfect Plants and Recall contract wins
| cnr ¢ Perfect Plants ~ 8 commissioned in 1H07 » 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 be upgraded * First Generation Il pla
Slide 15: Share buy-backs and outlook
* On-going share buy-backs announced * Reviewing alternatives 26 Brambles 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 a
Slide 16: Disclaimer
The release, publication or distribution of this presentation in certain jurisdictions may be restricted by flaw and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions. This presentat
Slide 17: Glossary of terms & measures
Glossary of terms & measures Except where noted, common terms and measures used in this document are based upon the following definitions: Sales revenue Excludes revenues of associates and non trading revenue. Comparable Profit before finance costs, tax and special iterns. Includes PAT of associates
Slide 18: Glossary of terms & measures
Glossary ofterms & measures 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. Associates 50% or les
Slide 19: Appendix contents
Page Page 2. Income Statement Other Detailed Results 12. Currency Mix 3. CHEP Americas 13. Currency impact 4. CHEP USA - Plant ops & transportation trends 14. Weighted average number of shares 5. CHEP USA - Asset productivity trends 15. Return on capital invested 6. CHEP Europe 16. Capital expenditu
Slide 20: Income statement and CHEP Americas
AIFRS JS6m Sales revenue 1,872.7 1,707.6 10 Comparable operating profit 421.2 342.3 23 Net finance cost (8.1) (61.7) 87 Profit before tax and special items 413.4 280.6 47 Tax (142.5) (100.5) (42) Profit from continuing businesses (before special 2706 180.1 50 items) ebecial items from continuing ope
Slide 21: CHEP USA plant operations and transportation trends
_USA ; Plant Sesto & Plant cost ratio Gross transportation cost ratio (Plant costs / Sales) (Transportation costs / Sales) 35% 5 35% 5 30% | 30% + 25% 4 25% 4 20% T T T T T 1 20% T T T T T 1 FY02 FY03 FY04 FYO05 FY06 1HO07 FY02 FY03 FY04 FY05 FY06 1HO07 4 Brambles Control ratio New equipment issue r
Slide 22: CHEP Europe detailed results
US$m, AIFRS 608.0 644.7 Sales revenue 4,252.7 Comparable operating profit 117.3 146.3 263.6 Profit margin (%) 19 23 21 Capital expenditure 92.6 87.9 180.5 Depreciation 72.8 77.3 150.1 Cash flow from operations 105.9 177.0 282.9 Average capital invested 1,243.6 1,259.4 1,251.5 Number of pallets (m) 1
Slide 23: CHEP Europe asset productivity and RoW results
Control ratio New equipment issue ratio (Returns + Recoveries / Total Issues) (Pallets purchased / Total issues) 96% + 12% 4 10% | 94% | 8% 4 6% 4 92% | 4% | 2% 4 90% T T T T T 1 0% T T T T T 1 Fy02 FY03 FY04 FYO05 FY06 1H07 FY02 FY03 FY04 FY05 FY06 1HO7 Major pallet sizes (B1210A and B1208A only) 8
Slide 24: CHEP and Recall detailed results
Detailed results , US$m, AIFRS Sales revenue 1,445.0 1,511.4 Comparable operating profit 317.8 386.0 703.8 Profit margin (%) 22 26 24 Capital expenditure 287.3 261.7 549.0 Depreciation 177.5 183.2 360.7 Cash flow from operations 251.2 421.0 672.2 Average capital invested 2,834.7 2,858.5 2,846.6 Numb
Slide 25: Currency mix
US$m, AIFRS Continuing operations 831.8 492.3 223.2 206.9 118.5 sales revenue Continuing operations comparable operating profit 213.7 88.4 40.7 48.1 30.3 Net debt? (758.8) 500.9 (441.0) (159.9) (68.6) Net assets 1,477.4 756.1 (215.6) 213.7 183.7 4 Americas consists of the four largest currency compo
Slide 26: Shares and ROCI
Shares, 6 months ending Basic — weighted average shares on issue 1,620.7 1,695.6 Adjustment for share options and performance share rights 18.7 13.9 Diluted shares on issue 1,639.4 1,709.5 14 Brarnbles ROCI 1H07 1H06 AIFRS % CHEP Recall Continuing (pre Corp) Corporate Continuing operations Discontin
Slide 27: Capital expenditure by division and capex to depreciation
Capital expenditure! by division _ _ AIFRS CHEP Americas CHEP Europe CHEP RoW CHEP Recall Corporate Continuing operations Discontinued operations Total + Excludes intangible assets, investments in associates & entity acquisitions 16 Brambles “Capex! io Poe Continuing operations AIFRS 6 months to: De
Slide 28: Capex to sales and acquisitions
Capex’ t to Sales : Continuir ng operations / %, AIFRS 6 months to: Dec 2004 19 8 17 June 2005 17 7 15 Dec 2005 20 6 18 June 2006 17 7 16 Dec 2006 18 8 17 12 months to: June 2005 18 8 16 June 2006 19 7 17 Actual exchange rates used 1 Exciudes intangible assets, investments in associates & entity acq
Slide 29: Divestments and debt facilities
Dement 8 BIS Northern Hemisphere Sold 238.2 0.7 Regional Businesses! Sold 61.0 199.1 Cleanaway Germany Sold 179.3 738.5 BIS / Cleanaway Australia Sold 857.1 1,341.6 2 Other (26.5) 9.3 Included in FYO6 1,071.6 2,526.7 Cleanaway UK Sold 758.4 1,109.0 Cleanaway Asia Sold (10.6) 32.0 Other adjustments 0
Slide 30: 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 themseives about and observe such restrictions. This presentati
Slide 31: Glossary of terms & measures
Glossary ofterms & measures =————_—s Appendix tb Except where noted, common terms and measures used in this document are based upon the following definitions: Constant Transtation of both current period and comparable period results into US dollars at currency the actual monthly exchange rates appli
Slide 32: Investor relations contacts
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 26 Brambles