Brambles Limited · ASX:BXB
Brambles — Brambles Industries — H1 2004 Earnings Presentation
17 slides from Brambles's earnings presentation, Feb 25, 2004
Slide 1: ASX cover letter for media briefing slides
Brambles Industries Limited ABN 22 000 129 868 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 25 February 2004 The Manager-Listings Australian Stock Exchange Limited Exchange Centre 20 Bridge Street S
Slide 2: Interim Results
1 Interim Results 25 February 2004 Sydney David Turner Chief Executive Officer 1
Slide 3: Summary and Results Summary
Summary Trading performance in line with guidance Progress steady Strong operating cash flow – improved by A$209m Net debt reduced to A$3,714m Dividend unchanged Outlook unchanged 3 Results Summary Actual Fx Effect Constant UK GAAP, 6 months ending Dec 03 Dec 03 Dec 03 Dec 02 Growth % Re
Slide 4: Divisional Summary and Business Summary
Divisional Summary Revenue EBITA Actual Growth Actual Growth UK GAAP, 6 months ending Dec 03 A$m % A$m % Continuing Businesses CHEP 1,687 10 233 (11) Cleanaway 1,259 3 104 (20) Recall 332 13 50 5 Industrial Services 350 (5) 42 23 Regional Businesses 127 (14) 1 - Continuing (pre corporate) 3,755 5 43
Slide 5: Segmental by Geography; Americas
Segmental by Geography Revenue 6 months to EBITA A$ 1,687m December 2003 A$ 233m 10% 20% 30% Americas 48% Europe RoW 42% 50% All % shown are £ constant currency 7 Americas 1H04 Americas Revenue growth 10% Capex down 30% at A$153m USA Temporary storage locations closed Pallet stock surp
Slide 6: Europe and CHEP Outlook
Europe Strong sales growth of 8% Pricing initiatives ¾ Communicated to most customers Organisational restructure ¾ New administration centres operational in Spain & UK Headcount reduction ¾ FTE reduction of 221 ¾ Temporary staff during transition until March ¾ Target FTEs remains 350 by June
Slide 7: Cleanaway Revenue Segmentation by Activity; UK
Revenue Segmentation by Activity 2003 : A$ 1,259m 6 months to 2002 : A$ 1,349m December 8% 7% 2% 3% 33% C&I Collection 36% 21% 21% Municipal Services Recycling Treatment & Disposal (inc LFGTE) 34% 35% Other All % are in £ constant currency All revenue, including Associates, has been segmen
Slide 8: Germany and Australia
Germany Lower average paper trading prices Ongoing effect of new drinks container deposit directive DSD Re-tendering Some contracts 3 years; some 1 year Won contracts for additional 0.5m residents Market share 10% DSD revenue remains around €104m per annum Re-organisation Closed 10 pla
Slide 9: Cleanaway Outlook; Recall Revenue
Outlook UK Markedly better second half C&I profitability to improve Municipal will continue to gain from contract wins Tech Waste to improve Anticipated benefits from more customer-focused management structure Germany New DSD contracts started 1 January 04 One year DSD contract re-tend
Slide 10: Recall and Industrial Services results
DMS revenue up 13% ¾ Effect of FY03 acquisitions in Europe ¾ Strong organic growth in Asia ¾ Major contract wins in South America Margin 15% Strong cash flow performance, improved working capital position Outlook – continued steady growth All % shown at £ constant currency 17 Profit growth
Slide 11: Regional Businesses and Group Outlook
Regional Businesses Eurotainer ¾ Suffered from decline in US dollar vs Euro ¾ Pressure remains on rental fees Interlake ¾ Q2 demand more positive ¾ Improvement in profitability ¾ Goodwill write down A$43 million 19 Outlook CHEP Americas – profits to rebound in 2H04 as short term costs eliminated a
Slide 12: Objectives and Milestones: Strategy
Objectives and Milestones 25 February 2004 Strategy To generate shareholder wealth through achieving Sustainable cash flow Profitable growth Efficient use of capital By disciplined Focus on growth of existing businesses Inculcation of Brambles Value Added (BVA) culture Focus on customer
Slide 13: Brambles – our position
Brambles – our position CHEP Unique franchise Global presence in 42 countries Cleanaway Fuelled by environmental regulation Strong market positions in Germany, UK and Australia Recall Growing outsourced segment Global business, strong regional focus Brambles Industrial Services Strong
Slide 14: Financial Objectives and Milestones
Financial Objectives Generate value for our shareholders Improving returns over the cost of capital over the next 4 years to maximise BVA growth Ensure the generation of an operating cash flow to fund growth Maintain an appropriate dividend policy and capital structure for the benefit of all s
Slide 15: Summary
Summary Execution excellence in our restructuring Continue to improve capital productivity Maintain rigorous discipline on BVA Deliver sustainable profit growth Generate shareholder value Strong committed team 27 28 14
Slide 16: Forward-looking statements
This presentation may contain certain “forward-looking statements” with respect to certain of Brambles’ plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty becau
Slide 17: Glossary of Terms & Measures
Appendix 1b Glossary of Terms & Measures Except where noted, common terms and measures used in this presentation are based upon the following definitions: Non Trading In A GAAP, this includes proceeds from divestments, sale of Revenue assets and interest income. The profit/(loss) on asset sales is i