Slide 1: Analyst Briefing 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 21 February 2008 The Manager - Listings Australian Stock Exchange Limited Exchange Centre 20 Br
Slide 2: 2008 Interim Results
For personal use only 2008 Interim Results 21 February 2008 2008 Interim Results Mike Ihlein Chief Executive Officer
Slide 3: Successful Half With Progress On Growth
Successful Half With Progress On Growth Solid Sales growth, strong growth in Operating Profit and EPS Good performance from CHEP – led by organic volume growth For personal use only All regions in Recall doing well except North America Encouraging progress on new growth for CHEP • Germany •
Slide 4: Results Confirm Strong Foundations for Growth
Results Confirm Strong Foundations for Growth Sales Operating profit Profit margin EPS 13% 19% 24% 25% (6% constant) (12% constant) (+2pp) (17% constant) For personal use only Sales up 13% to US$2.1 billion • Record first half sales for all CHEP regions and Recall Comparable operating profit up
Slide 5: CHEP Europe – Pallet Volume Growth Increasing
CHEP Europe – Pallet Volume Growth Increasing Pallet Volume Sales Operating profit Profit margin 4% 11% 27% 23% (2% constant) (17% constant) (+3pp) For personal use only 4% pallet volume growth – across all platforms Strong growth in display pallets – broader opportunity Strong sales pipeline
Slide 6: Recall – Strong Organic Growth
Recall – Strong Organic Growth Carton Volume Sales Operating profit Profit margin 5% 16% 11% 15% (YTD annualised) (8% constant) (1% constant) (-1pp) For personal use only Winning new customers • Banking and insurance verticals (USA and Europe) • Bank of America commenced – 1m + cartons by June 200
Slide 7: Significant Progress In Core Expansion
Significant Progress In Core Expansion Germany • Contracts with two major pan-European grocery manufacturers • Encouraging discussions with major retailers For personal use only • Value chain analysis underpins customer prospecting • Country manager appointed, sales resources being added Central
Slide 8: India – CHEP’s Next Major New Country
India – CHEP’s Next Major New Country Population 1.2 billion GDP Growth 9% p.a. For personal use only Key sectors growing rapidly • FMCG – 10%+ p.a. to 2015 – US$33 billion market • Automotive – 30%+ p.a. to 2015 – 4 million passenger vehicles Significant opportunity (US$100 million revenue)
Slide 9: Additional Investment For Growth
Additional Investment For Growth Additional investment of up to US$750 million over the next three years (not including acquisitions) For personal use only Expected to generate annualised sales of approximately US$600 million Balance required: investment for growth and capital management • US$
Slide 10: Strong profit and EPS growth
2008 Interim Results For personal use only Liz Doherty Chief Financial Officer Strong profit and EPS growth Actual Constant 1H08 1H08 1H07 Growth AIFRS US$m US$m US$m % Continuing operations Sales revenue 2,110.2 1,988.8 1,872.7 6 Comparable operating profit 500.5 472.3 421.2 12 PBT 429.6 401.7 413.
Slide 11: Solid sales growth
Solid sales growth Actual Constant 1H08 1H08 1H07 AIFRS Growth % US$m US$m US$m For personal use only CHEP Americas 771.9 757.4 692.8 9 CHEP Europe 741.3 682.3 669.8 2 CHEP RoW 239.3 215.7 202.0 7 CHEP 1,752.5 1,655.4 1,564.6 6 Recall 357.7 333.4 308.1 8 Continuing operations 2,110.2 1,988.8 1,872.7
Slide 12: Americas – very strong performance
Americas – very strong performance US$m 39 0 (11) For personal use only 1 220 191 1H07 Volume, Price & Transportation Plant Costs Other 1H08 Mix Costs All numbers are calculated at constant currency 21 Europe – continuing improvement US$m 3 155 15 0 4 133 1H07 Volume, Price & Transportation Plant Co
Slide 13: Recall sales and cash flow generation
Good sales growth in all regions Actual Constant 1H08 1H08 1H07 Growth AIFRS For personal use only US$m US$m US$m % Americas 162.3 157.0 146.5 7 Europe 93.3 85.7 77.3 11 RoW 102.1 90.7 84.3 8 Sales revenue 357.7 333.4 308.1 8 Comparable operating profit 55.4 50.5 50.0 1 Profit margin (%) 15 15 16 Gr
Slide 14: Capital expenditure to support growth
Capital expenditure to support growth US$m 500 452 450 For personal use only 400 350 303 312 300 250 200 150 100 50 0 1H06 1H07 1H08 CHEP Americas CHEP Europe CHEP RoW Recall 25 Europe – capital expenditure US$m 17 194 22 10 56 89 1H07 Pallet quantity Pallet cost Non pallet FX 1H08 26
Slide 15: Brambles Value Added
Brambles Value Added 1H08 1H07 Growth AIFRS, June 07 rates US$m US$m US$m For personal use only CHEP Americas 137 114 23 CHEP Europe 78 57 21 CHEP ROW 47 46 1 CHEP 262 217 45 Recall (2) 1 (3) Continuing (pre Brambles HQ) 260 218 42 Unallocated Brambles HQ costs (12) (11) (1) Total continuing operati
Slide 16: Financial ratios and Outlook for 2008
Financial ratios AIFRS, Actual rates Dec 07 Dec 06 Facilities For personal use only Closing Net Debt (US$m) 2,151.9 927.4 4,013.0 Interest cover (x) Comparable operating profit 7.1 57.0 EBITDA 10.2 81.4 x 3.5 (min) Net Debt / EBITDA (x) 1.5 0.7 x 3.5 (max) Gearing (%) 57.6 27.7 (Net Debt/Net Deb
Slide 17: 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 18: Contact details; Glossary of terms & measures
Contact details Michael Sharp Vice President Corporate Affairs For personal use only michael.sharp@brambles.com +61 (2) 9256 5255 +61 (0) 439 470145 (mobile) 33 Appendix 1a Glossary of terms & measures Except where noted, common terms and measures used in this document are based upon the following d
Slide 19: Glossary of terms & measures
Appendix 1b Glossary of terms & measures Except where noted, common terms and measures used in this document are based upon the following definitions: Actual rates Based upon conversion of local currency into US dollars using the average of the difference between buy and sell rates applicable at eac
Slide 20: USA - Plant operations & transportation trends
Appendix 2a USA - Plant operations & transportation trends Plant cost ratio Gross transportation cost ratio (Plant costs / Sales) (Transportation costs / Sales) For personal use only 35% 35% 30% 30% 25% 25% 20% 20% FY02 FY03 FY04 FY05 FY06 FY07 1H08 FY02 FY03 FY04 FY05 FY06 FY07 1H08 37 Appendix 2b
Slide 21: Europe - Plant operations & transportation trends
Appendix 2c Europe - Plant operations & transportation trends Plant cost ratio Gross transportation cost ratio (Plant costs / Sales) (Transportation costs / Sales) 35% For personal use only 28% 30% 24% 25% 20% 20% 16% FY02 FY03 FY04 FY05 FY06 FY07 1H08 FY02 FY03 FY04 FY05 FY06 FY07 1H08 Major pallet
Slide 22: Currency mix; Credit facilities and debt profile
Appendix 2e 1H08 Currency mix 1H08 Currency mix at Actual FX rates For personal use only US$m, AIFRS Total USD EUR GBP AUD Other Continuing operations 2,110.2 700.4 545.0 246.5 245.7 372.6 sales revenue Continuing operations comparable operating 500.5 171.1 112.0 61.5 48.7 107.2 profit Net Debt 1 2,