Slide 1: Brambles 2009 Operations Review
Brambles 2009 OPERATIONS REVIEW Brambles overview 11 May 2009 % ya — des
Slide 2: Mike Ihlein, Chief Executive Officer
2009 OPERATIONS REVIEW Mike Ihlein Chief Executive Officer Brambles
Slide 3: 2009 Operations Review
2009 Operations Review = Europe focused =» Meet management " Site visits = Focus on operations » Agenda Monday ¢ Brambles overview including trading update ¢ Recall Europe Tuesday and Wednesday ¢ CHEP Europe —E————————————————— ay 3 Brambles
Slide 4: Brambles Profile
Brambles Profile = Leading global provider of supply chain and information management solutions =» The Group’s businesses - CHEP and Recall = Over 45 countries * CHEP Europe 23 * Recall Europe 9 =» Over 12,000 employees * CHEP Europe ~2,700 * Recall Europe ~1,100 * Total assets US$5.0 billion at 31
Slide 5: Two businesses
Two businesses CG CHEP recall * CHEP is the leader in pallet and « Recall is a leader in the management container pooling services of information throughout its life cycle ¢ Partners with customers to develop ¢ One stop, end to end, information pooling solutions that ensure reduced management soluti
Slide 6: 2008 Brambles Sales Revenue by service
2008 Brambles Sales Revenue — by service Revenue US$748M Revenue US$3,157M Cartons 82M Intermediate Bulk Containers (IBC) & Pallets 251M Catalyst and Chemical Containers (CCC) Revenue US$94M - " Revenue US$169M Containers 11M GY sell Containers 39M ne 6 Brambles Containers
Slide 7: Brambles Leadership Team
Brambles Leadership Team Kevin Shuba Group President, USA, Canada, Latin America, CHEP Americas Catalyst & Chemical Containers and LeanLogistics Liz Doherty Joined Brambles in 1996 Chief Financial Officer Joined Brambles in 2007 Tom Gorman Group President, Europe, CHEP EMEA Middle East and Africa Ni
Slide 8: 2008 Sales Revenue and Underlying Profit
2008 Sales Revenue and Underlying Profit by business unit Sales Revenue’ Underlying Profit? US$4.4bn US$1.1bn M CHEP Americas Bl CHEP EMEA S! CHEP Asia-Pacific M Recall 1. Chart reflects Sales Revenue from continuing operations. 2. Chart reflects Underlying profit from continuing operations. Underly
Slide 9: Strong historical group performance
Strong historical group performance Sales Revenue’ Underlying Profit? 1,200 1,099 : 21% CAGR ' ' 1,000 953 ' " ! 1 . 798 ' ' 800 ' 3,000 : 617 H 2,500 ' 600 : : ' 1 515 1 2110 2073 484 2,000 ' H H 400 ' 1,500 ' : 1,000 ' . H 200 H 2 ' 2 H F E ~ E ' * ' H 3 0 : : 3 i FyY05 FY06 FYO7 Fyv08 1H08 109 Fy
Slide 10: Brambles Strategy
Brambles Strategy " To deliver the world’s best supply chain solutions and information management services = Core strategic themes ¢ Customer Satisfaction and Quality * Operational Excellence and Sustainability * Growth « Underpinned by a focus on People and Systems 10 Brambles
Slide 11: Brambles Strategy
Brambles Strategy Long-Term Stakeholder Value CUSTOMER SATISFACTION & QUALITY GROWTH PEOPLE SYSTEMS 1 Brambles
Slide 12: Consumer confidence
Consumer confidence Regional/country consumer confidence indices (January 2000 —- January 2009) 110 105 100 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 12 Brambles
Slide 13: Trading update
Trading update = Sales revenue for the 10 months to 2 May 2009 up 2% ¢ Excluding automotive, sales revenue up 3% = Sales revenue 1 January to 2 May 2009 broadly in line with prior year =" Growth in both CHEP and Recall ¢ CHEP Americas up 3% * CHEP EMEA up 1% ¢ CHEP Asia-Pacific up 2% ¢ Recall up 2%
Slide 14: Trading update
Trading update " Continue to win significant new business across all regions ¢ Net new business wins in 10 months to 2 May 2009 — CHEP USA US$30 million — CHEP Europe US$30 million " Good progress on major initiatives " CHEP USA review to be finalised by end September « Balance sheet in good shape 1
Slide 15: Initiatives to underpin future performance
Initiatives to underpin future performance « Taking actions to meet challenging and volatile conditions ¢ US$160m quality investment in CHEP USA ¢ Accelerated scrapping of seven million excess pallets (CHEP USA) ¢ Rationalisation of facilities and operations across the globe « Focus on further impro
Slide 16: CHEP USA review
CHEP USA review « Objective: Ensure that the CHEP USA service offering remains aligned with customers’ current and future needs " Process: Led by management, in conjunction with external advisors * Indepth engagement with current and potential customers « Timetable: To be finalised by end of Septemb
Slide 17: Brambles still delivering sales revenue growth
Brambles still delivering sales revenue growth... 0 - : Unilever - 7 May 2009 "Vol April 2009 Profits deflate declj - \..volumes lower by 1.8%...’ for the quary. five pe at German giants . Primari) €F drive, "cent Adidas and Metro Underlying sales down in Contractjg Y Market Western Europe in contin
Slide 18: Liz Doherty, Chief Financial Officer
2009 OPERATIONS REVIEW Liz Doherty Chief Financial Officer Brambles
Slide 19: Strong cash flow generation
Strong cash flow generation 4,000 - 3,500 4 540, 25% 3.335 US$ millions FYO5 FYO6 FYO7 FY08 1HO9 Sa Cumulative CF from Operations Underlying profit margin 1. Cash flow from operations for continuing operations 19 Brambles
Slide 20: Strong cash flow generation
Strong cash flow generation AIFRS US$M 1HO9 1HO8; FYO08 #£FYO7 FY06 FY05 EBITDA 627 720; 1,499 1,331 1,165 992 Capital expenditure (400) (452) K=(869) (648) (586) (533)> Proceeds from disposals 41 65 134 128 122 87 Other (47) (67) 46 27 62 158 Cash flow from continuing operations 221 266 810 838 763
Slide 21: Cash generation
Cash generation « Primary focus on reducing pallet capex ¢ P&L/ cash trade-off * Cautious investment in new growth opportunities » EBITDA ¢ Discretionary costs ¢ Restructuring « Other ¢ Working capital * Tax = Capital management Initiatives ¢ Dividend Reinvestment Plan ¢ Share buyback remains suspen
Slide 22: Capital expenditure
Capital expenditure 2008 Capital Expenditure’ by Historical Capital Expenditure’ Category Composition US$ Millions FYO5 FY06 FYO7 FY08 1H08 1HO9 - m Pallets Containers moO her P&E @ CHP Anericas CHEP EVEA @ CHB Asia-Pacific @ Recall 1. Cap tal expenditure on an accruals basis. Brambles 22
Slide 23: ROCI and BVA
ROCI and BVA 25% 600 = 24% 24% 22% 22% 500 + 400 + 300 5 200 + =] o 1 US$ millions Oo 4 FY05 FY06 FYO7 FY08 1HO08 1HO9 ma BVA ROCI BVA at fixed June 2008 exchange rates ee 23 Brambles
Slide 24: Ensuring adequate returns
Ensuring adequate returns Capital cost Revenue per issue Turns / year Losses per issue Scraps per issue Pallet life (years) 133 Transport costs % sales 19% Plant cost % sales 26% Overheads % sales 16% Operating costs % sales 61% P&L account ($) Revenue 175 Operating costs (10.7) EBITDA 68 Depreciati
Slide 25: Ensuring adequate returns
Ensuring adequate returns Other 1 Capital cost $20 $ Revenue per issue $5 $5 Turns / year 35 3.5 Losses per issue 2% 2% Scraps per issue 1% 1% Pallet life (years) 133 28.6 Transport costs % sales 19% 15% Plant cost % sales 26% 10% Overheads % sales 16% 10% Operating costs % sales 61% 35% P&L account
Slide 26: Ensuring adequate returns
Ensuring adequate returns Capital cost $20 $75 Revenue per issue $5 $5 Turns / year 35 3.5 Losses per issue 2% 2% Scraps per issue 1% 1% Pallet life (years) 133 28.6 >30 Transport costs % sales 19% 15% 15% Plant cost % sales 26% 10% 10% Overheads % sales 16% 10% 10% Operating costs % sales 61% 35% 3
Slide 27: Ensuring adequate returns
Ensuring adequate returns Capital cost 920 D Revenue per issue $5 $5 Turns / year 35 3.5 Losses per issue 2% 2% Scraps per issue 1% 1% Pallet life (years) 133 28.6 >30 Transport costs % sales 19% 15% 15% Plant cost % sales 26% 10% 10% Overheads % sales 16% 10% 10% Operating costs % sales 35% P&L acc
Slide 28: Strong financial ratios
Strong financial ratios’ Leverage Ratio Interest Coverage Ratio 25.0x 22.8x 20.0x 15.0x 10.0x 5.0x Net Debt / EBITDA EBITDA Interest Coverage. 0.0x FY05 FYO6 FY07 FY08 1HO8 1HO9 FY05 FYO6 FYO7 FY08 1HO08 1HO9 1) Calculated per covenant compliance. SSS aay 28 Brambles
Slide 29: Net debt and gearing
Net debt and gearing 3,000 4 65% 61% | 2,800 | 58% | 58% 48% o Cc Ss € “A Q a) FY05 FY06 FY07 FY08 1HO8 1HO9 Ml Net debt Gearing % == Debt / Enterprise Value % LLL 29 Brambles
Slide 30: Credit facilities and liquidity
Credit facilities and liquidity « Good progress on refinancing credit facilities maturing November 2010 « As at December 2008 US$1.0bn refinanced with US$1.5bn to be refinanced by November 2010 ¢ FYO9 interim dividend reinvestment contributed US$62m of funding ¢ US$110m raised from US Private Placem
Slide 31: Growth despite challenging / volatile environment
« Growth despite challenging / volatile environment ¢ Not immune from downturn but ¢ Net new business wins Well positioned for economic recovery Major initiatives on track Balance sheet in good shape Strong business models 31 Brambles
Slide 32: 2009 Operations Review
2009 OPERATIONS REVIEW Brambles
Slide 33: 2009 Operations Review
Ww LL Oo = 1) A © 20095 OPERATIONS REVIEW
Slide 34: Introduction – Elton Potts
2009 OPERATIONS REVIEW Introduction Elton Potts Brambles
Slide 35: Recall presenters
Recall presenters introduction and Overview Bton Potts, Group President and Chief Operating Officer With Brambles since 2002 Base: USA Recall Europe Trace Norton, President. Recall Europe With Brambles since 1998 Base: United Kingdom Profitable Growth Christian Coenen, Global Vice President, Sales a
Slide 36: What we do
What we do recall” Zaan= Ostbiths sag Usag Retitos Time ———-_- Document Managemant Solutons —enpe Secure Dastuction Services —| Activity © oP Brambles
Slide 37: What we do
What we do recall” Zaan= Ostbiths sag Usag Retitos Time ———-_- Document Managemant Solutons —enpe Secure Dastuction Services —| Activity © oP Brambles
Slide 38: Who we are
Vho we are =» Document Management Solutions Physical and digital capture, indexing, storage and retrieval of critical documents » Secure Destruction Services SS Confidential destruction of sensitive documents, media and al other business items =» Data Protection Services Secure storage, protection,
Slide 39: Overview Recall
Overview recall « A global leader in information management with the ability to transfer best practices across regions | - Global footprint _ aN continents fee | eS 23 countries abies ‘ Ly “be oe ~300. dedicated facies. | ° ~4.500 Team Members > ° Nearly 80,000 customers Brambles
Slide 40: Diversified revenue sources
Diversified revenue sources recall” 2008 Sales Breakdown US$748 million lo 2 By service By region B® Americas @ Europe Australia/New Zealand @ Asia J Brambles
Slide 41: How Recall makes money
How Recall makes money recall Annuity Businesses Transactional Businesses * Physical document storage * Physical document activity = Digital document storage = Digital document activity = Data protection * Data back-up and activity = >40% gross margin * Secure destruction =» <40% gross margin Brambl
Slide 42: Impact of global economic crisis
Impact of global economic crisis recall Customers Recall = Fewer transactions at financial Slowing growth in activity-related institutions revenue; retention levels strong * Increase in regulatory oversight Increase in consultative workflow * Increased growth in digital = Greater interest in digitis
Slide 43: Paper price trends and forecast
Paper price trends and forecast recall ie USS Europe — paper price per tonne sold (24 month trend) ‘se a ee ee ee ee ee (ay Slop ct Ms Dace Pie Mer gr Bigg hem ae? au ae Average monthly broad tonnage: 3.400 issuer | Brambles
Slide 44: Reducing costs
Reducing costs recall = Reduction in workforce by ~5% since June 2008 =» Reduction in discretionary spending =» Review and renegotiation of supplier contracts = Capital expenditure reprioritisation expected to yield ~US$15m additional cash for FY09 Brambles
Slide 45: Service line growth
Service line growth recall Sales YOY Sales Revenue" Growth %*" Revenue* 1H09 US$m FY08 US$m 12 Brambles
Slide 46: Business snapshot
Business snapshot *" A strong business * Stable business characteristics wth diverse recurring revenue streams * Relatively resilient to economic volatility * Consistently positive cash fow worldwde * A disciplined approach to global management * Strong, experienced management team * Work force focu
Slide 47: Recall strategy
Recall strategy Long-Term Stakeholder Value PEOPLE SYSTEMS SUSTAINABILITY recall” Brambles
Slide 48: Value through excellence and growth
Value through excellence and growth recall = Recall operates in an attractive, dynamic market space * Total opportunity sie ~US$12b+ * Substantial opportunity in unvended market segment * Mega trends (legislation, privacy) shaping demand = Weare well-positioned for growth * First or second among out
Slide 49: Europe – Trace Norton
2009 OPERATIONS REVIEW Europe Trace Norton Brambles
Slide 50: Regional strength
Regional strength recall » Strong geographic presence » Established leaders in major geographies » Business model adaptable to external factors » Continued opportunity in existing and future market segment + 9 countries + 59 dedicated operation centres «= ~1,100 Team Members + ~21,000 customers v Br
Slide 51: Competitive landscape
Competitive landscape Country Position’ * Value to Stakeholders Denmark * Operational consistency * Ease of doing business Finland ¢ Flexibility of solutions France/Belgium * Strong cash flow Norway ¢ High return on capital Spain * Wholly owned and operated Swed * Industry leading security weden * F
Slide 52: Europe overview
Europe overview FYO8 Country Revenue 10% /$21m* 29% /$59m" 19% /$38m" i Spain @ France f@ United Kingdom @ Rest of Europe * Pigparees represent! actus! reported nvtes, USD currency standeed FY 08 Service Line Revenue 11% /$2tm" 14% /$29m" A 73% /$148m @ Secure Destruction Services @ Data Protection
Slide 53: DMS-P: foundation for growth
DMS-P: foundation for growth = Solid foundation to develop digital business = Retention rates remain strong despite external factors = Continued growth expected despite increase in digital " =) US$m Fro4 Fyes Fydé Fro7 Fyoa * Based on actual reported ratex Re venue* a Brambles 20
Slide 54: Digital expansion
Digital expansion recall = Key piece of Europe business = Aligned with industry trends * Complementary to physical management offering = Proven customer value Sd Pro4 Pros Fyvec Fyo7 Fyoa * Based on achat reported rates Revenue* 21 | Europe Brambles
Slide 55: Data protection expansion
Data protection expansion recall = Business trends moving towards tape retention / data back-up = Increased focus on comprehensive management throughout information lifecycle = Strong synergies between Recall and existing client base = Rapid adoption of global best practices » FY0O4-—FY0O8 CAGR of 2
Slide 56: Country profile: France
Country profile: France = Recognized industry leader Oi MM 0 = National coverage sears * 24 Information Centres * 14 Cities * ~350 Team Members - a4 a = » LZ : im £ i = ae ” i : , 3 | d 4 q | oa - Fyo4 Fy0s Fvo0é Fyo7 Pye . * Based on actus! neocted nee Revenue 23 Brambles
Slide 57: Business excellence at work
Business excellence at work recall =» Customer Satisfaction = Security = Efficiency = Sustainability Brambles
Slide 58: Customer satisfaction
Customer satisfaction recall = Annual third-party measurement = Recall ranks in top 1/3 (of 450,000 global service provider surveys) in 4 critical customer areas * Overall rating * Competitive advantage * Likelihood to recommend * Likelihood to repurchase = Leadership in key areas of customer value
Slide 59: Security
Security recall = Global leadership and oversight by industry experts = Stringent minimum security standards worldwide = Facility security standards * Biometric access * Fire detection and suppression systems * Electronic firewalls = Vehicles * Advanced vehicle alarm programs * Satellite navigation
Slide 60: Efficiency
Efficiency 27 Six Sigma * Significant DSO improvement achieved in four countries Lean/Kaizen approach to continuous improvement * UK facility productivity improvement of 40% Benchmarking and best practice adaptation * Sales force activity measured by individual, by country RFID * Patented three-way
Slide 61: Sustainability
Sustainability London Mega Centre (LMC) * Site consolidation * 631 rated Energy Emission Control ————_, * Modular design for growth-driven expansion CARBON TRUST Canly, France * Natural landscape-driven design * Rainwater collected for facility usage * Natural light optimization * Solar powered heat
Slide 62: Strong leadership team
Strong leadership team recall = Continuous investment in safety and security training = Employment satisfaction measured globally = Diversity amongst leadership and throughout the organisation Begum Brazil Desmaa Frasce Gemany hd Pillpphes Malaysia Nomay Shgapor Spah Swedes Thalaed Used Stats United
Slide 63: Summary
Summary recall » A robust service model delivering solid growth » Solutions aligning with customer and industry trends » Continued opportunities in existing and future geographies » Focus on continued growth over the long term Brambles
Slide 64: Profitable Growth – Christian Coenen
2009 OPERATIONS REVIEW Profitable Growth Christian Coenen Brambles
Slide 65: Key messages
Key messages recall =» Market trends and our business focus are aligned = Our approach to profitable growth * Organic growth through business excellence * New business in selected and tested geographies and vertical industries * Develop business solutions based on innovative capabilities =» Market r
Slide 66: Industry trends
Industry trends Legislation * Increased oversight * Companies increasingly attuned to cost of non-compliance Privacy Outsourcing * Overhead reduction * Risk mitigation * Industry expertise * Focus on core competencies Information and business process outsourcing (BPO) Brambles
Slide 67: Business solutions
Business solutions External Factors Recall * Global standardisation " Operational consistency * Financial responsibility * Disciplined management * Dedicated operating centers * Outsourcing partner * Increasing regulatory governance « Industry expertise 1) J * Financial strength and stability Enviro
Slide 68: Global opportunity
Global opportunity recall * Multinational customers = Cross-selling programs = Capitalise on unvended segment through sales efficiency * Provide flexibility through innovation * Common operating platform * Menu of services * Standard operating procedures (SOPs) = Best practice identification and dup
Slide 69: The move to outsourcing
The move to outsourcing recall * Reasons for outsourcing * Free up space and internal resources constraints * Tracking and higher security * Regulatory compliance * |mportance of services * Retrieval of specific file(s) at any time * Security and digital storage * On-site carton collection * Importa
Slide 70: Market opportunity and position: DMS-P
Market opportunity and position: DMS-P Total Opportunity* Recall Position per Country** M Leader @ Recall m@x2 M@ Unvended m3 mi Other Vended ms4 #5 “Source: Bowton Cormulting Group, 2008 “Estmated postion weiter he verded marta 3 | Prottabte Growth Brambles
Slide 71: Reaching the market
Reaching the market recall SUSPECTS |, Tots! Available Market Selected Avaliable Market |. Market Platform Available '» market Plattorm Visit Market ' | PIPELINE ——+ Prospect Account Veanagement Data suggests a potential ft Data suggests a possible partnership Data verifies a possible partnership Cl
Slide 72: Our customers
Our customers recall Business Vertical Business Footprint * Finance and Banking * Global companies = Legal = International corporations = Insurance = Regional businesses = Healthcare = Sole proprietorships = Government * Emerging markets = Media = Retail = Professional services Brambles
Slide 73: Emerging market profile: India
Emerging market profile: India recall = Currently present in Mumbai, Chennai, Bangalore, Delhi 5 telly dedkatd ope mtbes centes Expaisboe wr tatbnal cove rage tiderway Wholly owied operatbs slice GE 2007, Mhg pr-exbtig JV estictos = Steady growth in all business lines BPO focts algred wit maketmovem
Slide 74: Summary
Summary recall = Recall anticipates needs in the global marketplace = Agility * Long-term customer solutions * Sustainable partnerships * Innovation * Performance measurement * Continuous improvement = Recall provides solutions for — and grows with — a diverse customer base Globally focused on profi
Slide 75: Recall Overview – Elton Potts
2009 OPERATIONS REVIEW Recall Overview Elton Potts Brambles
Slide 76: Financial strength and stability
Financial strength and stability recall = Solid profit and cash flow despite external factors = Disciplined approach to fiscal management = Flexible business model * Expansion * Investments * Partnering with customers = Cash flow from operations provides sufficient funds for capital expenditure to s
Slide 77: Summary
Summary recall » A strong business » A disciplined approach to global management E - m RestotWorkd a ; m ANZ > ™@ Exmpe m Ame reas Fye4 Fyos Fyoe Fye7 Prove Re venue* Profitable growth through multiple revenue sources * Gawed on actus! reported ratas “ PSS Brambles
Slide 78: 2009 Operations Review
2009 OPERATIONS REVIEW Brambles