Slide 1: Copies of slides for analysts' briefing, Sydney
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 20 August 2009 The Manager - Listings Australian Securities Exchange Limited Exchange Centre 20
Slide 2: 2009 Final Results
For personal use only 2009 Final Results 20 August 2009 Mike Ihlein Chief Executive Officer 1
Slide 3: Well positioned for recovery
Well positioned for recovery For personal use only Sales revenue resilient • Net new business wins (circa US$100m) offset weak organic volume • Investment for growth continues Strong cash generation and disciplined capital management • Free cash flow • Operating cash flow • Strong balance sheet
Slide 4: Automotive and SDS impact; Americas results
Automotive and SDS impact For personal use only Group sales revenue growth 3% (reported 1%) • Automotive down 23% (US$43m) • SDS down 13% (US$23m) Group Underlying profit down 5% (reported down 8%) • Automotive down 53% (US$27m) • SDS down 43% (US$12m) Growth % and US$ calculated on constant cur
Slide 5: EMEA and Asia-Pacific results
EMEA – net new wins offset organic/auto decline For personal use only Excluding Auto Sales revenue Underlying profit CFO Sales 2% flat 7% US$373m Underlying profit 2% Sales • organic volumes down 5% • net new wins 3% (Europe US$40m) • Automotive down 22%; 2% growth excluding auto • Germany 20% / P
Slide 6: Strong growth in core DMS; initiatives on track
Strong growth in core DMS For personal use only Excluding SDS Sales revenue Underlying profit CFO Sales 6% 1% 3% US$107m Underlying profit 8% Sales growth • Document Management Solutions up 6% • Secure Destruction Services (SDS) down 13% – Reduction in paper revenue and lower activity Underlying
Slide 7: CHEP USA Review on track; CHEP value proposition
CHEP USA Review on track For personal use only Target completion end September; announcement early October Further significant positive engagement with our key customers Wood pallet platform remains best solution for broad supply chain • Economic and environmental sustainability Alternative
Slide 8: Well positioned for recovery
Well positioned for recovery For personal use only Sales growth Strong cash generation Strong balance sheet Major initiatives underpin future performance Well placed to accelerate financial performance as economies recover 13 Liz Doherty Chief Financial Officer 7
Slide 9: 2009 Final Results
2009 Final Results For personal use only Actual Constant FY09 FY09 FY08 Growth US$m US$m US$m % Continuing operations Sales revenue 4,018.6 4,407.3 4,358.6 1 Underlying profit 900.6 986.9 1,071.9 (8) Underlying EPS (cents) 38.5 42.2 45.4 (7) Statutory EPS¹ (cents) 32.6 n/a 46.0 Cash flow from operat
Slide 10: Significant items
Significant items For personal use only FY09 FY08 Actual rates US$m US$m Underlying profit 900.6 1,071.9 Items within ordinary activities, but unusual due to size and nature: USA Quality program (77.4) (20.6) Walmart net transition impact (29.0) (10.9) Items outside the ordinary course of business:
Slide 11: CHEP overview
CHEP overview For personal use only Actual Constant FY09 FY09 FY08 Growth US$m US$m US$m % Americas 1,556.9 1,617.5 1,581.3 2 EMEA 1,452.6 1,640.3 1,642.1 - Asia-Pacific 323.4 390.4 386.9 1 Sales revenue 3,332.9 3,648.2 3,610.3 1 Underlying profit 823.0 900.7 976.2 (8) Profit margin (%) 25 25 27 Gro
Slide 12: Americas and EMEA underlying profit
Americas – Underlying profit For personal use only US$m 6 37 31 484 30 454 FY08 Vol, Price & Mix Transport Costs Plant costs Other FY09 All numbers are calculated at constant currency 21 EMEA – Underlying profit US$m 20 20 397 9 27 8 369 FY08 Vol, Price & Automotive Transport Plant costs Other FY09
Slide 13: Asia-Pacific underlying profit
Asia-Pacific – Underlying profit For personal use only US$m 5 7 96 2 9 5 78 FY08 Vol, Price & Automotive Transport Plant costs Other FY09 Mix Costs All numbers are calculated at constant currency 23 12
Slide 14: Recall overview
Recall overview For personal use only Actual Constant FY09 FY09 FY08 Growth US$m US$m US$m % Americas 313.3 326.5 333.3 (2) Europe 188.9 213.5 202.2 6 RoW 183.5 219.1 212.8 3 Sales revenue 685.7 759.1 748.3 1 Underlying profit 104.3 118.2 122.4 (3) Profit margin (%) 15 16 16 Growth % calculated on U
Slide 15: Gross profit by service line
Gross profit by service line For personal use only Actual Constant FY09 FY09 FY08 Growth US$m US$m US$m % Document Management Solutions 184.0 207.1 191.7 8 Secure Destruction Services 48.6 52.1 70.6 (26) Data Protection Services 36.5 40.9 37.7 8 Gross profit 269.1 300.1 300.0 - Growth % calculated o
Slide 16: Cash flow and finance
For personal use only Cash flow and finance Strong cash flow US$m Actual rates FY09 FY08 Change EBITDA 1,212.6 1,499.0 (286.4) Capital expenditure (683.8) (869.4) 185.6 Proceeds from disposals 104.6 133.8 (29.2) Working capital movement 25.8 41.4 (15.6) Irrecoverable pooling equipment provision 97.8
Slide 17: Significant reductions in capital expenditure
Significant reductions in capital expenditure (PP&E) For personal use only Actual rates FY08 US$849m FY09 US$672m 6% 8% 12% 14% 40% 43% 42% 35% CHEP Americas CHEP EMEA CHEP Asia-Pacific Recall 31 Capital expenditure (PP&E) US$m Actual rates 433 416 377 295 1H08 2H08 1H09 2H09 CHEP Americas C
Slide 18: Financial ratios; credit facilities and liquidity
Financial ratios For personal use only Actual rates FY09 FY08 Covenants Closing net debt (US$m) 2,143.4 2,426.2 Gearing (%) 60.0 61.1 (Net debt/net debt & equity) EBITDA* / net finance costs (x) 10.0 10.0 3.5 x (min) Net debt / EBITDA* (x) 1.8 1.6 3.5 x (max) * EBITDA is Underlying profit excluding
Slide 19: Well placed to accelerate financial performance
For personal use only Mike Ihlein Chief Executive Officer Well placed to accelerate financial performance FY09 platform • Won significant new business • Continued investment for growth • Major initiatives implemented • Strong cash focus / balance sheet Early signs of improving economies • Destoc
Slide 20: Disclaimer statement
Disclaimer statement For personal use only 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
Slide 21: Contact details; Glossary of terms
Contact details For personal use only Michael Roberts Vice President Investor Relations and Corporate Affairs michael.roberts@brambles.com +61 (0)2 9256 5216 39 Appendix 1a Glossary of terms & measures Except where noted, common terms and measures used in this document are based upon the following d
Slide 22: Glossary of terms & measures (continued)
Appendix 1b Glossary of terms & measures (continued) For personal use only Except where noted, common terms and measures used in this document are based upon the following definitions: DPS Dividends declared in the period divided by shares in issue. EPS Profit after tax, minority interests and Signi
Slide 23: USA asset productivity; Europe plant operations
Appendix 2b USA - Asset productivity trends For personal use only Control ratio New equipment issue ratio (Returns + Recoveries / Total Issues) (Pallets purchased / Total issues) 100% 10% 8% 98% 6% 96% 4% 94% 2% 92% 0% 2 3 4 5 6 7 8 9 2 3 4 5 6 7 8 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 FY FY FY FY FY FY
Slide 24: Europe asset productivity; FY09 currency mix
Appendix 3b Europe - Asset productivity trends For personal use only Control ratio New equipment issue ratio (Returns + Recoveries / Total Issues) (Pallets purchased / Total issues) 98% 10% 8% 96% 6% 94% 4% 92% 2% 90% 0% 02 03 04 05 06 07 08 09 2 3 4 5 6 7 8 9 0 0 0 0 0 0 0 0 FY FY FY FY FY FY FY FY
Slide 25: Effective tax rate; credit facilities and debt profile
Appendix 5 Effective tax rate For personal use only FY09 FY08 Actual rates US$m US$m PBT 779.7 922.4 Tax 245.4 282.4 Underlying effective tax rate % of PBT 31.5% 30.6% Adjustment for non-recurring items 2.4% 2.9% Adjusted effective tax rate 33.9% 33.5% 47 Appendix 6 Credit facilities and debt profil
Slide 26: Capital expenditure
Appendix 7 Capital expenditure For personal use only US$m Actual rates Pallets Containers 20% Other 684 12 11% 672 52 69% 81 539 77 462 FY09 Cash Accrual FY09 Recall Land and P&E Pooling Containers Pallets Movement Additions 49 25