BRAMBLES LIMITED — Interim / Quarterly Report 2019

Feb 17, 2019

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

==> picture [96 x 20] intentionally omitted <==

18 February 2019

The Manager - Listings Australian Securities Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000

Via electronic lodgement

Dear Sir / Madam

COPIES OF SLIDES FOR WEBCAST

At 10.00am AEDT today, Graham Chipchase, Chief Executive Officer, and Nessa O’Sullivan, Chief Financial Officer, will webcast a presentation of Brambles’ results for the half-year ended 31 December 2018. The slides for that webcast presentation are enclosed.

The slides and webcast will be available on the Brambles’ website at www.brambles.com.

Yours faithfully

Brambles Limited

Robert Gerrard

Group Company Secretary

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Half-Year
2019 Results
18 February 2019
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Results highlights
Graham Chipchase
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Key messages
Sales revenue growth of 7% [1] reflecting strong volume momentum across all segments and
improved price realisation in both developed and emerging markets
Underlying Profit up 1% [1] as strong global sales revenue and pricing actions offset:
Global inflationary input-cost pressures
Continued cost challenges in the CHEP Americas segment related to higher transport costs, network capacity
constraints, the conversion to block pallets in Canada and the higher cost-to-serve in Latin America
US accelerated automation, productivity and pricing initiatives remain on track to deliver
progressive margin benefits
ROCI of 18% remains strong and well above the cost of capital
Free cash after dividends below prior year. Excluding the investment in US supply-chain
efficiency programmes, Free Cash Flow was US$33m lower than prior year largely due to the
reversal of 2H18 working capital timing benefits
1H19 interim dividend AU 14.5 cents. Franking for this dividend is 65% reflecting a one-time
increase due to timing of higher Australian tax payments
1 At constant currency.
3
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

1H19 progress
USA:
Successful implementation of surcharges and contractual price increases to align
pricing with the cost-to-serve. Effective price increased 5% [1]
Sales revenue growth of 5% at the higher end of the historical range
Americas
Accelerated automation programme on schedule with 10 installations completed
Lumber procurement project on track
Canada and Latin America:
Sales revenue up 5% in Canada and 14% in Latin America
Net new business wins up 6% driven by strong sales in Southern,
Central and Eastern Europe pallets businesses and a new Automotive contract
EMEA Price realisation of 2%, reflecting contractual price indexation
Like-for-like volume growth of 1% reflecting a slowdown in underlying economic
conditions in the region
Asia-Pacific Sales revenue up 3%, reflecting like-for-like volume growth and modest pricing
gains
Note: Sales revenue quoted at constant currency. 1. Includes contributions from transport and lumber surcharges recognised as an offset to direct costs.
4
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Brexit
Preparation processes well advanced
Key potential risks:
Brexit taskforce created Access to pallet and timber supply;
Change in customer demand patterns;
Specific Brexit outcomes
Labour shortages; and
remain unknown
Increased/altered trade & custom regulations (e.g. mandatory
Extensive scenario heat treatment of pallets)
planning undertaken and 1H19 considerations/implications:
mitigating strategies ~10% of European volumes relate to EU/UK cross-border flows
devised for key
US$11m of capex on additional pallets to service increased
potential risks inventory levels and extended cycle times as customers
prepare for Brexit
We are well positioned to support customers through transition period
5
----- End of picture text -----

==> picture [361 x 21] intentionally omitted <==

IFCO separation update

Dual-track process on track for completion in CY2019

==> picture [6 x 7] intentionally omitted <==

==> picture [6 x 6] intentionally omitted <==

==> picture [6 x 6] intentionally omitted <==

==> picture [6 x 6] intentionally omitted <==

IFCO separation pursued via dual-track demerger and sale process

Process not yet sufficiently advanced to determine the method of separation

Brambles’ capital structure will be evaluated as part of the IFCO separation process to ensure it is optimal for supporting future growth and shareholder returns while maintaining a strong balance sheet and credit profile

Outcomes of this capital structure evaluation and a post-IFCO separation strategy update will form part of our FY19 result announcement

==> picture [4 x 5] intentionally omitted <==

----- Start of picture text -----

6
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Financial overview
Nessa O’Sullivan
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

1H19 results
Overview
US$m (actual FX rates) 1H19 Change vs. 1H18 Sales growth across all operating segments
Actual Constant Underlying Profit +1% as strong sales
Continuing operations FX FX contribution to profit offset elevated levels of global
Sales revenue 2,856.4 3% 7% input-cost inflation and ongoing cost challenges in CHEP Americas
Underlying Profit 504.4 (3)% 1% Significant Items expense of US$5.5m relating to
the IFCO dual-track separation process
Significant Items (5.5)
Net finance expenses decreased despite
Operating profit 498.9 (3)% 1% repayment of HFG interest-bearing loan in 2H18.
Decrease due to a lower coupon rate on debt
Net finance expenses (44.4) 16% 10% issued in 1H18, lower debt balances following FY18
Tax expense (133.1) - - portfolio asset actions and higher interest costs in 1H18 due to pre-funding of maturing debt
Profit after tax - continuing 321.4 (27)% (25)% Tax expense increase reflects the cycling of the
US$103.2m one-off income tax benefit in 1H18
Loss from discontinued ops (1.6)
Effective tax rate increased to 29% due to the
Profit after tax 319.8 (27)% (25)% US tax reform relating to foreign payments,
effective 1 July 2018
Effective tax rate - Underlying (%) 29.0% 1.9pp Profit after tax decline driven by the cycling of the
Statutory EPS US20.2₵ (27)% (25)% one-off tax benefit in prior year
Underlying EPS decline largely due to the increase
Underlying EPS US20.5₵ (4)% (1)% in the effective tax rate
8
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

1H19 sales growth
Strong revenue momentum across CHEP & IFCO
1H19 Sales revenue growth (US$m) Group CHEP IFCO
CHEP +7% growth [1] +7% growth [1] +5% growth [1]
81% of Group 19% of Group
26 revenue revenue
60 96
35 2%
60 3%
2,952
2,856 5% 6%
2,771 4%
-1%
Group CHEP IFCO
Volume Price/Mix
1 Sales growth is at constant currency. Note: Chart does not include contribution from transport and lumber surcharges which are offset against costs.
9
1H18 IFCO FX 1H19
Price/Mix Like-for-like growth Net new business wins 1H19 (constant FX)
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Group profit analysis (US$m)
Strong sales contribution offset by ongoing cost pressures
In line with Transport inflation and additional Higher cost-to-serve in Latin America,
growth in the pool transport miles due to US network Canada & EMEA and increased costs
capacity constraints & changing to support delivery of growth,
(14) customer behaviour, partially offset by supply chain efficiencies innovation, network efficiencies and commercial outcomes
(21)
89 (32) (17)
(19)
Lumber & wage inflation in all
markets, additional pallet repair & handling
costs due to stringer-to-block transition in
Canada and US pallet quality investment,
518 partially offset by supply chain efficiencies 523 504
1H18 Volume, Depreciation Net plant Net transport Other 1H19 FX 1H19
UnderlyingProfit price,mix1,2 costs costs UnderlyingProfit UnderlyingProfit
(constant FX)
12 Sales growth net of volume-related costs (excluding depreciation). Includes pricing and indexation and excludes surcharges which are reported as part of the net plant and net transport costs.
10
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Transport & lumber inflation
~75% of inflation recovered through indexation & surcharges
Progressive cost inflation 1H19 market 2H19
recovery through inflation considerations [2]
indexation & surcharges [1]
Transport
Transport Costs expected to increase in
USA: +9% US and Europe, although rate
of increase appears to be
Europe: +5%
moderating
75%
70% Lumber Lumber
USA: +5% Modest decrease expected in
50% Europe: +17% the US
Continue to expect double-digit
inflation in Europe
1H18 2H18 1H19
1H19 impact of lumber inflation on capex: US$11m
12 Cost inflation recovery through indexation and surcharges in US & European pallet businesses Transport inflation primarily impacts the P&L, lumber inflation primarily impacts capital expenditure.
11
----- End of picture text -----

==> picture [361 x 21] intentionally omitted <==

CHEP Americas Inflation & other cost challenges partially offset by price realisation

==> picture [316 x 178] intentionally omitted <==

----- Start of picture text -----

US$m 1H19 Change vs. 1H18 1H19 performance
Actual Constant Strong price realisation & volume growth in US
FX FX pallets
US 831.7 5% 5% Effective price (including transport and fuel surcharges
recognised as an offset to direct costs) +5% in 1H19
Canada 135.2 1% 5%
Volume growth +2% driven by expansion with new &
Latin America 145.4 1% 14% existing customers in the grocery, beverage & SME sectors
Pallets 1,112.3 4% 6% Price growth and expansion in Latin America
Containers 28.5 20% 21% Pricing, supply chain & asset efficiency initiatives
remain on track to progressively deliver margin
Sales revenue 1,140.8 4% 6% benefits from FY20-FY22
Underlying Profit 168.2 (11)% (9)% Margin & ROCI decline driven by input-cost inflation
Margin 14.7% (2.6)pp (2.5)pp and cost challenges in the US, Canada & Latin
America – Refer to slide 13
ROCI 17.7% (2.5)pp (2.5)pp
12
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

CHEP Americas
Components of Underlying Profit margin decline of (2.6)pts
CHEP USA CHEP Canada CHEP Latin America Total
Contribution to
margin decline (1.7)pts (0.5)pts (0.4)pts (2.6)pts
Elevated levels of input-cost inflation
Network capacity Transition from stringer Higher cost-to-serve due to
constraints to block pallets developing nature of the
local network & supply
Drivers Changing customer chains
behaviour
Longer cycle times
US pallet quality
investments Higher IPEP & capex
Actions to drive Progressive increases in surcharges & pricing to better reflect the cost-to-serve and to
improved offset increased inflation, noting average contract length of 3 years
business
outcomes Investing in supply chain and other cost-out initiatives (e.g. service centre automation)
to improve operational efficiency and platform quality
Leveraging global scale & expertise to drive supply chain procurement programmes
Investing in resources to support network efficiencies and improved commercial
outcomes
13
----- End of picture text -----

==> picture [361 x 21] intentionally omitted <==

==> picture [306 x 40] intentionally omitted <==

----- Start of picture text -----

US pallets margins
Despite ongoing inflationary pressures, initiatives are in place to
progressively deliver 2-3% margin uplift from 1H18 levels
----- End of picture text -----

==> picture [313 x 176] intentionally omitted <==

----- Start of picture text -----

Phasing of margin On
Pressures Mitigating actions improvement track
Progress in 1H19 FY19 FY20 FY21 FY22
Supply chain Transport and network
cost out optimisation exercise delivering
Cost inflation year-on-year benefits
Pricing/ Lumber and transport surcharges
surcharges levied in FY18 and 1H19
Continue to renegotiate contract
Retailer driven pricing and terms as contracts
cost increases come up for renewal
Effective price increase of 5%
Procurement Commenced implementation of
Network capacity initiatives lumber strategy which will provide
benefits to pallet repair & capex
and supply chain
efficiency Automation 10 sites completed through 1H19
programme On track to deliver FY19
automation objectives
14
----- End of picture text -----

==> picture [361 x 21] intentionally omitted <==

CHEP EMEA

Strong margins & ROCI despite cost inflation & investment for growth

==> picture [314 x 177] intentionally omitted <==

----- Start of picture text -----

US$m 1H19 Change vs. 1H18 1H19 performance
Europe: Volume growth +5% driven by market share
Actual Constant gains & modest like-for-like volume growth. Price
FX FX growth of +1% driven by contractual indexation
Europe 687.3 3% 6% RPCs & Containers: Strong volume growth driven by
AIME [1] 100.3 3% 12% a large European Automotive contract & Kegstar expansion
Pallets 787.6 3% 7% Strong sales contribution to profit & supply chain
RPCs + Containers 143.8 18% 24% efficiencies offset the following cost pressures:
Sales revenue 931.4 5% 9% Inflation (transport & lumber) across Europe;
Increased depreciation & higher cost-to-serve; and
Underlying Profit 227.3 2% 5% Additional resources to support growth & strategic
Margin 24.4% (0.7)pp (0.8)pp objectives
ROCI remains strong despite increased investment to
ROCI 26.2% (1.1)pp (1.4)pp support growth in new markets and the European
Automotive business
1 Africa, India and Middle East.
15
----- End of picture text -----

==> picture [361 x 21] intentionally omitted <==

CHEP Asia-Pacific Revenue and Underlying Profit growth

==> picture [312 x 178] intentionally omitted <==

----- Start of picture text -----

US$m 1H19 Change vs. 1H18 1H19 performance:
Actual Constant Volume growth and modest price gains in
FX FX Australian pallets
Pallets 172.7 (3)% 3% Successful RPC contract renewal in New Zealand &
volume growth in South-East Asian Automotive
RPCs + Containers 56.2 (6)% 1% business
Underlying Profit leverage & margin expansion
Sales revenue 228.9 (4)% 3% driven by:
Sales contribution to profit;
Underlying Profit 57.2 (3)% 5%
One-off government infrastructure grant in Asia; and
Favourable asset recovery outcomes
Margin 25.0% 0.3% 0.5%
ROCI 27.0% 0.1pp 0.6pp
16
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

IFCO
Growth & efficiencies in Europe; price realisation in North America
US$m 1H19 Change vs. 1H18 1H19 performance:
Europe: revenue growth +7% with strong volume
Actual FX Constant FX growth partially offset by contract wins with lower
revenue/lower cost-to-serve customers which
Europe 402.0 4% 7% contributed to margin improvement in the region
North America 113.6 (5)% (5)% North America: Price increases offset by lower
volumes
Rest of world [1] 39.7 0% 13% Profit leverage & margin expansion reflecting:
Sales revenue 555.3 1% 5% Sales contribution to profit;
Transport efficiencies in Europe;
Underlying Profit 72.6 5% 9% Cost inflation and network inefficiencies in North America
due to lower volumes; and
Margin 13.1% 0.4pp 0.5pp
US$2m net benefit due to movement in provisions
ROCI 9.4% 0.6pp 0.7pp ROCI +0.7pp driven by capital efficiencies and
margin improvement in Europe
1 Rest of world comprises Asia and South America.
17
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Corporate
Innovation, compliance & advisory fees drove higher corporate costs
US$m (actual FX) 1H19 1H18 1H19 performance:
Increases in Corporate costs relate to
Corporate costs (14.3) (10.7) innovation, compliance including advisory fees
in relation to US tax reform and other costs
BXB Digital (6.6) (4.2) BXB Digital cost increase in resources
supporting field trials in the current year:
HFG joint venture results - (8.0)
Resourcing in the prior year was weighted towards
the development of a software logistics system
Corporate segment (20.9) (22.9) (BRIX) which was capitalised
Cash spend on BXB Digital broadly flat year-on-year
Prior year includes HFG joint venture losses –
HFG exited in 2H18
18
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Cash flow
Decline in prior period due to previously advised items
US$m (actual FX) 1H19 1H18 Change 1H19 performance:
Underlying EBITDA 795.9 801.2 (5.3) Cash Flow from Operations decline of
US$73.8m includes:
Capital expenditure (cash basis) (615.9) (569.2) (46.7)
US$31m investment in US supply chain
Proceeds from sale of PP&E 55.3 69.7 (14.4) efficiency programmes (largely US service centre
Working capital movement (49.9) (22.2) (27.7) automation) which is funded by proceeds from
FY18 asset actions banked in 2H18
IPEP expense 53.8 46.2 7.6 US$30m reversal of 2H18 working capital
Other [1] (1.8) (14.5) 12.7 benefits, advised to the market at the FY18
results
Cash Flow from Operations 237.4 311.2 (73.8)
Lower asset compensations in CHEP Asia-Pacific
Significant Items and discontinued (5.3) (12.9) 7.6 and IFCO Europe
operations
US$11m of Brexit-related capital expenditure
Financing costs and tax (159.0) (149.7) (9.3) Cash capital expenditure increased US$46.7m
Free Cash Flow 73.1 148.6 (75.5) reflecting investment in pooling and non-
Dividends paid (166.4) (178.0) 11.6 pooling capex to support growth & supply
chain initiatives – refer to slide 20 for details
Free Cash Flow after dividends (93.3) (29.4) (63.9)
Free cash outflow includes the benefit of lower
cash dividend payments due to a weaker AUD
1 Other includes movements in provisions, disposals and impairments of fixed assets and purchases of intangible assets.
19
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Capital expenditure
Ongoing investment in growth & US supply chain programmes
Constant FX growth 1H19 Pooling Capex up 9%
New market development comprises the
1H19 Pooling Capex +US$51m +9% investment in the EMEA Automotive business
Pooling capex/sales: 20.2% ( 1H18: 20.0%)
Lumber inflation impacts on unit pallet costs
Volume growth +US$35m +6% of US$(11)m fully offset by crate mix benefits
on unit RPC costs of US$11m
New market development +US$29m +5% Additional capital expenditure to support
higher Brexit-related retailer stocking levels
Lumber inflation +US$11m +2% Efficiencies/Other includes an US$11m mix
benefit and US$25m in capital efficiencies
Brexit +US$11m +2%
Efficiencies/Other US$(35)m (6)% 1H19 Other PP&E Capex up 3%
US$31m investment in US supply chain
1H19 Non-Pooling Capex +US$22m +3% programmes (including accelerated
automation) funded by proceeds received
Total PP&E Capex +US$73m +12% from FY18 asset actions
20
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Balance sheet
Conservative balance sheet position maintained
1H19 1H18 Strong balance sheet with investment
grade ratings maintained (BBB+/Baa1)
EBITDA/net finance Net debt/EBITDA of 1.51x well within
17.9x 15.2x
costs [1] policy of <1.75x. Reduction in net
debt/EBITDA due to receipt of funds from
Net debt/EBITDA 1.51x 1.69x the repayment of the HFG JV shareholder
loan and proceeds from the sale of CHEP
Recycled in 2H18
December 18 June 18 Net interest cover increased to 17.9x
reflecting lower net finance costs in the
Net debt US$2,407m US$2,308m period
Net debt increase of US$99m reflects
Average term of committed facilities 4.3 years 4.5 years Free Cash Flow after dividends performance
Undrawn committed facilities US$1.3bn US$1.6bn Significant headroom in undrawn committed facilities
1 1H18 includes US$8.8m of interest revenue from the HFG joint venture. Excluding the HFG interest revenue, the 1H18 ratio is 13.0x.
21
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

New accounting standards: FY19 & FY20
AASB 15: Revenue from Contract with Customers and AASB 16: Leases
FY19 - AASB 15: Revenue from Contracts with Customers
Issue fees are now recognised over the estimated cycle time between the asset being issued and returned to Brambles
Restatement of 1H18 and FY18 comparatives:
Balance Sheet: Opening balance sheet was adjusted to reflect opening deferred revenue balance at 1 July 2018 of US$489m
Income statement: Sales and Underlying Profit impacted by the new standard – comparatives updated per table below
Cash flow: No impact on cash flow
Pre-tax impact of AASB15 restatement on Sales and Underlying Profit
Year on
(US$m, actual FX) FY18 FY19 year impact Comments
First half impact +24 +34 +10 Positive revenue deferral in the first half is due to high
seasonal fourth quarter sales of FY17 & FY18 being deferred
into the first half of FY18 & FY19, respectively
Second half impact (53) (63) (10) The negative impact of increased revenue deferral in the
(estimated) second half is due to high seasonal fourth quarter sales of
FY18 & FY19 being deferred into the first half of FY19 &
FY20, respectively
Full year (estimated) (29) (29) -
FY20 - AASB 16: Leases - Recognition of leases as an asset & lease liability
Good progress to develop systems, capabilities and processes to implement the lease standard on 1 July 2019
Estimated impact on FY20: ROCI reduction of over 1pt due to the capitalisation of leases
Full details to be provided in August 2019
22
----- End of picture text -----

==> picture [361 x 21] intentionally omitted <==

Summary

1H19 results

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

Strong sales revenue performance across all segments

Improved price realisation in both EMEA and US pallets businesses IFCO demerger and sale process on schedule to complete in CY19

Interim dividend of AU 14.5 cents with one-off increased franking of 65%

Outlook

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

Cash generation expected to improve in 2H19 notwithstanding funding investment in growth and business improvement projects

FY19 constant-currency Underlying Profit growth is expected to show modest improvement over the prior year, with increased price realisation and the delivery of cost efficiencies largely offset by ongoing global input-cost inflation

Our global automation, productivity and supply chain cost-out programmes remain on track to progressively deliver margin benefits and improved business outcomes over the medium term

23

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Half-Year
2019 Results
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Appendices
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Appendix 1a
Brambles: Sales revenue by region and sector
1H19 sales revenue by region 1H19 sales revenue by sector
AmericaLatin Africa, India & Middle East4.2% Eastern Europe2.4% Asia ex-Japan1.0% Packaging2.1% Other Auto 3.1%
9.3%
6.1% General
retail 1.8%
Japan
0.4%
7.6%ANZ CanadaUSA & 38.8% Storage & dist.2.0% Fast-moving consumer
Beverage12.5% goods42.1%
Western
Europe Fresh
39.5% produce
27.1%
Developed markets Emerging markets “Consumer staples” sectors Industrial sectors
26
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Appendix 1b
Brambles Ex-IFCO: Sales revenue by region and sector
1H19 sales revenue by region 1H19 sales revenue by sector
Africa, India & Eastern
Latin Middle East Europe Auto 3.9%
America4.3% 4.5% 0.8% Asia ex-Japan1.0% Packaging2.6% 11.6%Other
Japan General
0.4% ANZ retail 2.3%
8.8% USA &
Canada
41.4% Storage
& dist.
2.4% Fast-moving
consumer
Western Beverage15.5% goods52.2%
Europe Fresh
38.8% produce
9.5%
Developed markets Emerging markets “Consumer staples” sectors Industrial sectors
27
----- End of picture text -----

==> picture [361 x 21] intentionally omitted <==

Appendix 2 Detailed reconciliation of Underlying Profit to statutory earnings

US$m (actual FX)	Operating profit	Tax	Profit after tax	Earnings Per Share
Continuing operations 1H19 1H18 1H19 1H18 1H19 1H18 1H19 1H18
Underlying Profit 504.4 518.1 (133.3) (125.9) 326.7 339.5 20.5 21.3 IFCO transaction costs (5.5) - 0.2 - (5.3) - (0.3) - USA tax reform - - - 103.2 - 103.2 - 6.5 Restructuring and integration costs - (4.7) - 1.8 - (2.9) - (0.2) Total Significant Items (5.5) (4.7) 0.2 105.0 (5.3) 100.3 (0.3) 6.3
Statutory Earnings - Continuing 498.9 513.4 (133.1) (20.9) 321.4 439.8 20.2 27.6
Loss from discontinued operations (1.5) (4.4) (0.1) 1.8 (1.6) (2.7) (0.1) (0.1)
Statutory Earnings 497.4 509.0 (133.2) (19.1) 319.8 437.1 20.1 27.5
28

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Appendix 3
Major currency exchange rates [1]
USD exchange rate: USD EUR GBP AUD CAD ZAR MXN CHF BRL PLN
1H19 1.0000 1.1520 1.2929 0.7231 0.7593 0.0708 0.0515 1.0129 0.2574 0.2683
Average
1H18 1.0000 1.1844 1.3254 0.7802 0.7922 0.0752 0.0540 1.0239 0.3111 0.2796
31 Dec 18 1.0000 1.1440 1.2690 0.7044 0.7336 0.0693 0.0509 1.0159 0.2577 0.2660
As at
30 Jun 18 1.0000 1.1564 1.3076 0.7348 0.7545 0.0726 0.0506 1.0025 0.2589 0.2651
1 Includes all currencies that exceed 1% of 1H19 Group sales revenue, at actual FX rates.
29
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Appendix 4
1H19 currency mix
(US$m) Total USD EUR GBP AUD CAD ZAR MXN BRL PLN CHF Other [1]
Sales revenue 2,856 959 838 232 181 152 90 90 36 43 35 200
1H19 share 100% 34% 29% 8% 6% 5% 3% 3% 1% 2% 1% 8%
1H18 share 100% 33% 29% 8% 7% 6% 3% 3% 2% 1% 1% 7%
Net debt [2] 2,407 1,287 1,507 50 (739) 14 91 136 5 (13) (13) 82
12 No individual currency within ‘Other’ exceeds 1% of 1H19 Group sales revenue at actual FX rates. Net debt shown after adjustments for impact of financial derivatives.
30
----- End of picture text -----

	Appendix 5 Credit facilities and debt profile	Appendix 5 Credit facilities and debt profile	Appendix 5 Credit facilities and debt profile	Appendix 5 Credit facilities and debt profile	Appendix 5 Credit facilities and debt profile	Headroom 0.4 0.3 0.5 0.1 0.3 - 1.6
	Maturity	Type	Committed facilities	Uncommitted facilities	Debt drawn	Headroom
			(US$b at 31 December 2018)
	<12 months	Bank/USPP1/Other	0.2	0.3	0.1 0.7 0.2 - - 1.6	0.4
	1 to 2 years	Bank/144A2/Other	1.0	-		0.3
	2 to 3 years	Bank/Other	0.7	-		0.5
	3 to 4 years	Bank/Other	0.1	-		0.1
	4 to 5 years	Bank/Other	0.3	-		0.3
	>5 years	EMTN3/144A2/Other	1.6	-		-
	Total		3.9	0.3	2.6	1.6
	1US Private Placement notes. 2US 144A bonds. 3European Medium Term Notes.
	31

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Appendix 6
Capital expenditure on Property, Plant and Equipment
(Accruals basis, US$m)
973 1,061 1,023 1,192 592 637
33
89 58 317
140
320 231
202
19
46
185
742 157
663
571 590
350 374
60 62 71 100 39 59
FY15 FY16 FY17 FY18 1H18 1H19
Other PP&E Replacement (DIN)1 CHEP growth IFCO growth
1 Replacement capex is the sum in a period of Depreciation expense, IPEP and the Net book value of compensated assets and scraps (disposals).
32
----- End of picture text -----

==> picture [361 x 21] intentionally omitted <==

Appendix 7 Net plant and transport costs/sales revenue

==> picture [313 x 177] intentionally omitted <==

----- Start of picture text -----

Net plant cost/sales revenue Net transport cost/sales revenue
1H19 1H18 1H19 1H18
CHEP Americas 37.8% 38.2% 24.1% 23.0%
CHEP EMEA 23.0% 23.1% 20.4% 20.5%
CHEP Asia-Pacific 35.3% 34.9% 12.9% 12.3%
IFCO 20.9% 20.6% 19.8% 20.4%
Group 29.5% 29.6% 21.2% 20.8%
33
----- End of picture text -----

==> picture [361 x 21] intentionally omitted <==

==> picture [291 x 28] intentionally omitted <==

----- Start of picture text -----

Appendix 8
Strong price realisation and solid volume growth in US pallets
----- End of picture text -----

==> picture [314 x 175] intentionally omitted <==

----- Start of picture text -----

US pallets revenue growth breakdown 1H19 revenue growth components:
Price/mix growth of 3%: Effective price,
+8% which includes transport and lumber
surcharges recognised as an offset to direct
costs, increased 5% in 1H19
+5% 4% +5% Like-for-like volume growth of 1%: Growth with existing customers, primarily in
the beverage and grocery sectors
+4% 1% Net new business growth of 1%: Current
3% 1% 1% period and prior-year contract wins in the
+2% 2% SME, grocery and beverage sectors
1% 3% 1% 1% 3%
1% 1% 1%
FY15 FY16 FY17 FY18 1H19
Price/Mix Like-for-like volume Net new business wins
Note: Growth rates for FY15 to FY18 are as reported and have not been adjusted for AASB 15.
34
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Appendix 9a
CHEP Americas: Underlying Profit analysis (US$m)
Components of margin decline:
CHEP USA (1.7)pts
CHEP Canada (0.5)pts Higher pallet repair & handling costs
CHEP Latin America (0.4)pts associated with inflation, investments in US pallet quality and the transition Driven by a higher cost-to-serve in Latin America & Canada and
CHEP Americas (2.6)pts from stringer to block pallets in Canada investment in resources across the
Americas region to support
network efficiencies and improved
commercial outcomes
(7) (11)
39 (22)
(17) (4)
In line with growth
in the pool Largely in the US Pallets business due to
190 sustained levels of high transport inflation and
additional transport miles associated with both 172 168
changing customer behaviour and network
capacity constraints
1H18 Volume, price, Depreciation Net plant costs Net transport Other 1H19 FX 1H19
Underlying mix costs Underlying Underlying
Profit Profit Profit
(constant FX)
35
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Appendix 9b
CHEP EMEA: Underlying Profit analysis (US$m)
Impact of lumber inflation and higher
repair & handling costs only partially Largely due to third-
offset by efficiency savings party transport inflation
in Europe
(6) (6) (9) (6)
39 (8)
In line with
growth in the
pool Higher cost-to-serve across the
223 resources to support the delivery region and investments in 235 227
of growth and strategic initiatives
1H18 Volume, price, Depreciation Net plant costs Net transport Other 1H19 FX 1H19
Underlying mix costs Underlying Underlying
Profit Profit Profit
(constant FX)
36
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Appendix 9c
CHEP Asia-Pacific: Underlying Profit analysis (US$m)
Higher pallet repair & Includes the benefits of asset
handling costs across the recovery outcomes and the
region receipt of a one-off infrastructure
grant in the Asia region
5 (3) 1 (5)
59 62 57
1H18 Volume, price, mix Net plant costs Other 1H19 FX 1H19
Underlying Underlying Underlying
Profit Profit Profit
(constant FX)
37
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Appendix 9d
IFCO: Underlying Profit analysis (US$m)
Largely wage inflation and Includes US$2m net benefits of
inefficiencies in North America movements in provisions
(1) (1) 3 (2)
(1)
6
Driven by pool
growth in Europe
Higher third-party transport inflation
in North America only partially offset
by efficiencies in Europe 75 73
69
1H18 Volume, price, Depreciation Net plant costs Net transport Other 1H19 FX 1H19
Underlying mix costs Underlying Underlying
Profit Profit Profit
(constant FX)
38
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Appendix 10
Glossary of terms and measures
Except where noted, common terms and measures used in this document are based upon the following definitions:
Actual currency/FX Results translated into US dollars at the applicable actual monthly exchange rates ruling in each period.
Average Capital Invested Average Capital Invested (ACI) is a six-month average of capital invested.
(ACI) Capital invested is calculated as net assets before tax balances, cash and borrowings, but after
adjustment for pension plan actuarial gains or losses and net equity adjustments for equity-settled
share-based payments.
Compound Annual Growth The annualised percentage at which a measure (e.g. sales revenue) would have grown over a period if it
Rate (CAGR) grew at a steady state.
Capital expenditure (capex) Unless otherwise stated, capital expenditure is presented on an accruals basis and excludes intangible
assets, investments in associates and equity acquisitions. It is shown gross of any fixed asset disposals
proceeds. Growth capex includes the impact of changes in cycle times as well as investments for
availability of pooling equipment for existing and new product lines.
– Replacement capex = DIN
– Growth Capex is total pooling capex less DIN.
Cash Flow from Operations Cash flow generated after net capital expenditure but excluding Significant Items that are outside the
ordinary course of business.
39
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Appendix 10
Glossary of terms and measures (continued)
Except where noted, common terms and measures used in this document are based upon the following definitions:
Constant currency/ Current period results translated into US dollars at the actual monthly exchange rates applicable in the
Constant FX comparable period, so as to show relative performance between the two periods before the translation
impact of currency fluctuations.
DIN The sum in a period of:
– Depreciation expense;
– Irrecoverable Pooling Equipment Provision expense; and
– Net book value of compensated assets and scraps (disposals).
Used as a proxy for the cost of leakage and scraps in the income statement and estimating replacement
capital expenditure.
Earnings per share (EPS) Profit after finance costs, tax, minority interests and Significant Items, divided by weighted average
number of shares on issue during the period.
Earnings before interest, tax, Operating profit from continuing operations after adding back depreciation and amortisation and
depreciation and amortisation Significant Items outside the ordinary course of business.
(EBITDA)
Free Cash Flow Cash flow generated after net capital expenditure, finance costs and tax, but excluding the net cost of
acquisitions and proceeds from business disposals.
Irrecoverable Pooling Provision held by Brambles to account for pooling equipment that cannot be economically recovered
Equipment Provision (IPEP) and for which there is no reasonable expectation of receiving compensation.
40
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

Appendix 10
Glossary of terms and measures (continued)
Except where noted, common terms and measures used in this document are based upon the following definitions:
Net new business The sales revenue impact in the reporting period from business won or lost in that period and over the
previous financial year, included across reporting periods for 12 months from the date of the win or loss,
at constant currency.
Operating profit Statutory definition of profit before finance costs and tax; sometimes called EBIT (Earnings before
interest and tax).
Organic growth The change in sales revenue in the reporting period resulting from like–for-like sales of the same
products with the same customers.
Return on Capital Invested Underlying Profit multiplied by two to calculate an annualised amount, divided by Average Capital
(ROCI) Invested.
RPC Reusable plastic/produce crates or containers, used to transport fresh produce; also the name of one of
Brambles’ operating segments.
Sales revenue Excludes revenues of associates and non-trading revenue.
Significant Items Items of income or expense which are, either individually or in aggregate, material to Brambles or to the
relevant business segment and:
- Outside the ordinary course of business (e.g. gains or losses on the sale or termination of operations,
the cost of significant reorganisations or restructuring); or
- Part of the ordinary activities of the business but unusual due to their size and nature.
SME Small and medium-sized enterprise
Underlying Profit Profit from continuing operations before finance costs, tax and Significant Items.
41
----- End of picture text -----

==> picture [361 x 271] intentionally omitted <==

----- Start of picture text -----

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 themselves about and observe such restrictions.
This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any securities, nor the solicitation of
any vote or approval in any jurisdiction, nor shall there be any sale, issue or transfer of the securities referred to in this presentation in any jurisdiction in
contravention of applicable law.
Persons needing advice should consult their stockbroker, bank manager, solicitor, accountant or other independent financial advisor. Certain statements made in
this presentation are forward-looking statements.
The views expressed in this presentation contain information that has been derived from publically available sources that have not been independently verified.
No representation or warranty is made as to the accuracy, completeness or reliability of the information.
These forward-looking statements are not historical facts but rather are based on Brambles’ current expectations, estimates and projections about the industry in
which Brambles operates, and beliefs and assumptions. Words such as "anticipates“, "expects“, "intends“, "plans“, "believes“, "seeks”, "estimates“, "will", "should",
and similar expressions are intended to identify forward-looking statements.
These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are
beyond the control of Brambles, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-
looking statements. Brambles cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect
the view of Brambles only as of the date of this presentation.
The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. Brambles will not undertake
any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring
after the date of this presentation except as required by law or by any appropriate regulatory authority.
Past performance cannot be relied on as a guide to future performance.
To the extent permitted by law, Brambles and its related bodies corporate, and each of its and their officers, employees and agents will not be liable in any way
for any loss, damage, cost or expense (whether direct or indirect) incurred by you in connection with the contents of, or any errors, omissions or
misrepresentations in, this presentation.
42
----- End of picture text -----

==> picture [361 x 21] intentionally omitted <==

Investor Relations contacts Sean O’Sullivan Vice President, Investor Relations & Corporate Affairs sean.osullivan@brambles.com +61 2 9256 5262 +61 412 139 711 Raluca Chiriacescu Director, Investor Relations raluca.chiriacescu@brambles.com +44 20 3880 9412 +44 7810 658044 43