BRAMBLES LIMITED

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 [95 x 18] intentionally omitted <==

17 February 2020

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 host a presentation of Brambles’ results for the half-year ended 31 December 2019. The slides for that webcast presentation are enclosed.

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

The release of this announcement was authorised by a Special Committee of the Board of Brambles Limited.

Yours faithfully

Robert Gerrard

Group Company Secretary

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

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

Half-year 2020
results presentation
17 February 2020
----- End of picture text -----

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

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

1
Results highlights
Graham Chipchase, CEO
----- End of picture text -----

1H20 highlights

Sales revenue and earnings growth across all segments
Sales revenue growth of 7%[1] reflecting volume growth across the Group, continued price realisation in the US and resilience in our EMEA business despite economic and cost headwinds in Europe
o Underlying Profit up 5% (including the impact of AASB 16[4] ) due to strong revenue growth, supply chain efficiencies and a moderation in transport and lumber inflation, which were partially offset by higher operating costs and increased asset charges across the Group
US margin on track to meet target of 2-3pt uplift by FY22[2] o Improvement of 1pt in 1H20 driven by benefits flowing from accelerated automation, lumber procurement, productivity and pricing initiatives as well as strong net new wins and organic customer growth
Asia-Pacific business to benefit from a 10-year RPC contract win with a major Australian retailer
Significant improvement in cash flow generation[3] driven by increased earnings, lower capital expenditure and improved cash collections across the Group
ROCI of 18.2% remains strong despite (1.8pt) impact of AASB 16

==> picture [361 x 42] intentionally omitted <==

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

1 2 3 4 At constant currency.Margin improvement from 1H18 levels , excluding the impact of AASB 15 and 16 accounting changes.Before special dividend.AASB 16 – New leasing standard effective for Brambles from 1 July 2019.
3
----- End of picture text -----

Dividends and capital management

Dividend payout ratio consistent with prior year
Interim dividend of US9.0 cents declared, converted and paid as AU13.38 cents and franked at 30%
The interim dividend represents a payout ratio of 50% within our targeted payout ratio range of 45-60%
Substantial funds from the proceeds of IFCO returned to shareholders o US$1.65 billion on–market buy-back commenced in June 2019. To date we have purchased 51.4 million shares at a cost of US$415 million[1] . Completion expected in FY21
US$312 million returned to shareholders in October 2019 comprising a capital return of A12₵ per share (US$129.3m) and a special dividend of A17₵ per share (US$183.2m)
As of 31 December 2019, US$728m has been returned to shareholders representing 37% of the US$1.95m capital management programme announced June 2019

==> picture [361 x 30] intentionally omitted <==

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

1 Representing 25% of on-market share buy-back completed as at 31 December 2019.
4
----- End of picture text -----

Leading in sustainability

==> picture [361 x 207] intentionally omitted <==

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

Recognised as a global leader in sustainability:
Rated #1 most sustainable international company
Top 1% of companies analysed
Maximum AAA rating
96% percentile in industry category
On track to achieve ambitious 2020 sustainability goals:
Zero Deforestation Emissions Supply Chains Better Diversity Gender CollaborationCustomer Communities Better
100% 25% CO2 1.7m 31% 70m kms 0.7%
Wood from Reduction per unit Trees saved Management Saved through Pre-tax profits
certified sources delivered vs. FY1560% Tonnes CO2.0m2 saved positions held by women transport collaboration given to communities
Energy from certified 1.3m
renewable sources Tonnes of waste
diverted from landfill
Launching 2025 sustainability goals at May 2020 Investor Day
5
----- End of picture text -----

Australian bushfire crisis

Brambles’ support for bushfire affected communities

==> picture [361 x 204] intentionally omitted <==

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

• Our Australian team is providing
emergency relief, including significant
in-kind support for our charitable
partner Foodbank, which is providing
food to affected communities
CHEP’s Supply Chain
• A$500,000 donation equally shared team worked through the holidays to help
between: Foodbank, Red Cross, Foodbank deliver
Landcare Australia and Australian essential food and water to the frontline
Rural Fire Services communities impacted
by the bushfires
• Additionally, we have matched
A$16,000 of employee donations
• Paid leave for Rural Fire Service and
emergency services volunteers of up
to four weeks
• Kegstar donations A50₵ for every keg
scanned in January 2020
6
----- End of picture text -----

US customer plastic pallet trials

Ongoing plastic pallet trials to test operational functionality, asset management, pricing and overall economics
Total flows from this retailer represent less than 3.5% of Brambles global pallet flows
All major US competitors participating in trials
Trials involve extensive testing of new plastic pallet designs and asset management technology
Trials to extend into the second half of calendar 2020

Operating landscape and FY20 outlook

Operating landscape

Large addressable opportunities in both developed and emerging markets
Competition in key markets remains strong but rational
Ongoing economic uncertainty and political instability in Europe
Transport and lumber inflation in the US business has moderated, however labour and property inflation continue to rise
Sales revenue growth in the Americas segment is expected to remain strong, however benefits from timing of customer contracts of 1-2% are not expected to repeat in the second half of FY20

FY20 financial outlook

At constant FX and including the impact of AASB 16, Brambles expects midsingle digit sales revenue growth and Underlying Profit growth to be in line with sales revenue growth

==> picture [22 x 21] intentionally omitted <==

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

8
----- End of picture text -----

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

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

2
Financial
overview
Nessa O’Sullivan, CFO
----- End of picture text -----

1H20 results

==> picture [361 x 232] intentionally omitted <==

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

Summary
US$m 1H20 Change vs. 1H19 • Sales growth +7% at the high end of the Group’s
mid-single digit revenue growth objective
Continuing operations Actual FX ConstantFX • Underlying Profit +5% includes +3pt benefit
from AASB 16; sales contribution to profit,
Sales revenue 2,397.6 4% 7% efficiency gains and lower lumber and transport
Underlying Profit 435.5 1% 5% inflation offset higher operating costs and asset
charges across the Group
Significant Items - • Net finance costs decreased 12% despite
Operating profit 435.5 1% 5% US$14m of lease interest recognised due to AASB 16. The decrease reflected interest income
Net finance costs (37.5) 14% 12% from Australian dollar deposits and lower debt
funded by IFCO sale proceeds
Tax expense (119.1) (2)% (4)% • Profit after tax (incl. discontinued operations)
Profit after tax - Continuing 278.9 4% 8% down (9)% due to inclusion of US$51.4m of IFCO
earnings in 1H19. IFCO was divested in 2H19
Profit from discontinued ops [1] (1.0) • Underlying effective tax rate decreased to
Profit after tax 277.9 (13)% (9)% 29.9% reflecting a change in mix of global
earnings
Effective tax rate - Underlying 29.9% (0.5)pts (0.8)pts • Underlying EPS of 17.8 US cents up 1.0 US cent
Statutory EPS (US cents) 17.7 (12)% (8)% reflecting higher earnings and 0.3 US cent benefit
from the share buy-back
Underlying EPS (US cents) 17.8 6% 10%
1 1H19 discontinued operations included US$51.4m related to IFCO earnings. IFCO was divested in May 2019.
10
----- End of picture text -----

AASB 16: Leases

1H20 impact of new accounting standard adoption

==> picture [361 x 204] intentionally omitted <==

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

Overview 1H20 impact
• Effective for Brambles on 1 July 2019 (pre-tax)
• All qualifying leases recognised on balance
Underlying Profit +US$12m or 3pts
sheet as lease liability and right-of-use leased
assets
• Modified retrospective approach adopted, Cash Flow from +US$69m
Operations
comparative period not restated
• AASB 16 has no impact on the statutory Free Cash Flow +US$56m
cash flow statement as Free Cash Flow Net nil
increase of US$56m is offset by US$(56)m Cash flow from impact
in lease payments now classified as debt financing activities US$(56)m
repayments (Payment of principal
component of lease liabilities)
ACI +US$555m
• Refer to Appendix 3a and 3b for more details
ROCI (1.8)pts
11
----- End of picture text -----

1H20 Group sales growth Volume growth and price realisation in all segments

==> picture [361 x 196] intentionally omitted <==

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

Growth across all segments Volume momentum despite increased pricing
1H20 Sales revenue growth (US$m) Price/mix and volume contribution to growth
4 +7% +7%
40 54 Improved price realisation in
response to inflation & higher
3% 3% cost-to-serve, particularly in
the Americas region
107
2,452 2,398 2% 1% Growth in Americas and Asia-Pacific region, flat volumes in the EMEA region
2,301 3% Ongoing expansion with new
2% and existing customers in all
regions
1H19 1H20
Net New Business Wins Like-for-like growth Price/Mix
Group sales growth expected to moderate by 1-2 pts in 2H20
12
1H19 FX 1H20
1H20
CHEP Americas CHEP EMEA CHEP Asia-Pacific (constant FX)
----- End of picture text -----

==> picture [311 x 228] intentionally omitted <==

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

Group profit analysis (US$m)
Strong sales contribution more than offset direct and indirect
cost increases
Growth in asset pool and
investment in US supply Labour and property inflation in
chain programme North America, additional handling and
inspection costs in Europe and anticipated
US inefficiencies during automation rollout
(14) (7)
Investment in overheads across the
(25) Group to support supply chain
efficiency and asset management
94 Increased collection programmes and to deliver
costs in Latin America (25) improved commercial outcomes
partially offset by
lower US third-party (13) 12 16
freight rates
Higher pallet unit costs
across the Group and
phasing impact of increased 452
430 America in 2H19 to account asset charges in Latin 436
for higher cost-to-serve
1H19 Volume, Depreciation Net Net plant IPEP Other AASB 16 1H20 FX 1H20
UnderlyingProfit price,mix1 transport costs costs UnderlyingProfit UnderlyingProfit
(constant
FX)
1 Sales growth net of volume-related costs (excluding depreciation and IPEP).
----- End of picture text -----

==> picture [22 x 20] intentionally omitted <==

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

13
----- End of picture text -----

CHEP Americas

Strong volume growth and price realisation; US margins +1pt in 1H20

==> picture [322 x 168] intentionally omitted <==

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

Including AASB 16 1H20 Change vs. 1H19 1H20 performance:
Actual Constant • Strong sales growth +9% reflecting improved
(US$m) FX FX price realisation and volume growth across the
region:
US 899.5 8% 8%
o US +8%: Equal contributions from price and volume
Canada 143.8 6% 7% o Canada +7%: Price growth and volume contribution from current and prior year contract wins
Latin America 166.0 14% 19% o Latin America pallets +19%: Pricing to recover higher cost-to-serve and moderate volume growth
Pallets 1,209.3 9% 9% Excluding impact of AASB 16:
• Underlying Profit up +6% as US margin
Containers 30.3 6% 6% improvement offset anticipated cost increases in
Canada and phasing of prior year asset charges
Sales revenue 1,239.6 9% 9% in Latin America
Underlying Profit 184.3 10% 10% • US margins up +1pt, in line with guidance
• Overall segment margin down (0.4)pts due to
Margin 14.9% 0.2pts 0.1pts anticipated higher 1H20 costs in both Canada
and Latin America
ROCI 15.6% (2.1)pts (2.1)pts • ROCI broadly in line with 1H19
----- End of picture text -----

CHEP Americas margins

==> picture [361 x 232] intentionally omitted <==

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

US margin increase offset by margin pressure in Canada & Latin America
1H20 contribution Key drivers of FY20 margin
to CHEP Americas 1H20 margin performance outlook
margin +0.2pt increase
USA +0.6pts +1pt margin improvement equates to +0.6pt of segment margin •••• Improved cost-recovery through contractual pricing and surchargesModeration in lumber and transport inflation Efficiency benefits from lumber procurement initiativeImproved efficiency in automated facilities offset by temporary network margin performance, expected to increase Consistent with 1H FY20 m argins
inefficiencies during automation implementation ~1pt on FY19 levels
Canada (0.5)pts Higher costs associated with stringer-to-block transition • Increased repair costs driven by inherently higher damage rates on block FY20 year-on-year expected to be margin trend
pallets and higher unit pallet costs impacting IPEP consistent with 1H20
Latin America (0.5)pts Phasing of higher costs (incl. asset charges) recognised in 2H19 • • • Enhanced asset management and commercial programme launched in 2H19 Higher asset charges to account for cost-to-serve recognised in 2H19 Enhanced asset management and commercial programme benefits realised: oo Increased price realisation to recover higher cost-to-serve; andIncreased asset re-collections driving pooling capex to sales ratio down ~8pts levels, with expected in 2H20increase on FY19 FY20 margins to improvement margin
AASB 16 +0.6pts FY20 CHEP Americas margin expected to increase on FY19 levels
impact driven by margin improvement in the US and Latin America businesses
15
----- End of picture text -----

US pallets revenue

Improved price realisation and volume growth

==> picture [361 x 199] intentionally omitted <==

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

US pallets revenue growth 1H20 revenue growth components:
breakdown • Price/mix growth of 4% reflecting pricing initiatives
+8% to recover higher cost-to-serve
• Effective price [1] +3% reflecting lower surcharge
contributions in line with lower lumber and third-party
freight rates in 1H20
+5% • Like-for-like volume growth of 1% driven by grocery
4% and beverage sectors
+4% • Net new business wins of 3%: largely driven by
rollover impact of a major contract win in FY19
2H20 considerations:
+2% 1% 3% 1% • Volume growth expected to moderate by 1-2pts in
1% 2H20 due to roll off of a prior-year contract loss and cycling of FY19 contract wins
1% 1% 3% • Effective pricing will continue to be impacted by lower
2% surcharge contributions, in line with trends in third-
1% 1% party freight rates
FY17 FY18 FY19 1H20
Net new business wins Like-for-like volume Price/Mix
1 Includes transport and lumber surcharges recognised as an offset to direct costs.
16
----- End of picture text -----

US pallets margins

1pt margin improvement delivered in 1H20; Initiatives on track to deliver 2-3pt margin improvement[1] by FY22

==> picture [319 x 183] intentionally omitted <==

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

Phasing of margin
Pressures Mitigating actions improvement
Progress 1H20 FY20 FY21 FY22
Supply chain cost • Annual transport and network
out optimisation exercise undertaken 
Cost inflation during the year
Pricing/ • Continue to renegotiate contract
surcharges terms and pricing to insulate
against inflation and recover 
higher cost-to-serve
Retailer driven • Pricing growth of 4%, effective
cost increases price increase of 3% in 1H20
Procurement • Lumber strategy largely
initiatives implemented and delivering cost 
benefits to lumber repair and
capex in line with expectations
Network capacity and supply chain Automationprogramme •• 25 sites completed to date Commissioning of 17 sites in
efficiency (Refer to Appendix 2 for details) • FY20 weighted to 2H20Sites performing in line with 
expectations
Margin improvement phasing: Annual increase of ~1pt [2] in FY20, FY21 & FY22
1 2 Improvement from FY19 level.Margin improvement from 1H18 levels, excluding the impact of AASB 15 and AASB 16 accounting changes.
----- End of picture text -----

==> picture [22 x 20] intentionally omitted <==

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

17
----- End of picture text -----

CHEP EMEA

Strong margins and returns despite macroeconomic and cost headwinds

Including AASB 16	1H20	Change vs. 1H19
(US$m) Actual FX Constant FX
Europe 689.8 - 4% IMETA1 103.1 3% 7%
Pallets 792.9 1% 5% RPCs + Containers 142.6 (1)% 3%
Sales revenue 935.5 - 4% Underlying Profit 222.4 (2)% 2%
*Margin* *23.8%* *(0.6)pts* *(0.6)pts* *ROCI* *23.3%* *(2.9)pts* *(3.0)pts*
1India, Middle East, Turkey and Africa.

1H20 performance reflects:

Pallets revenue +5%: Solid net new wins and price realisation, like-for-like volumes in line with 1H19 due to challenging economic conditions
RPC + Containers revenue +3%: Price/mix benefits in automotive offset lower volumes in Pallecon and challenging conditions in the automotive business
Excluding impact of AASB 16:
Underlying Profit in line with prior year as sales contribution to profit offset:
Higher transport costs in the European automotive business;
Increased inspection & handling costs and labour inflation;
o Higher pallet unit costs impacting IPEP; and
Investments in resources to support new business growth and deliver improved commercial outcomes
Margin remains strong at 23.5%
ROCI down 1.7pts due to lower profit margins and higher ACI given investment to support growth, including the impact of prior-year automotive asset purchases and capex to support Brexit-related retailer stocking

EMEA sales growth

==> picture [361 x 230] intentionally omitted <==

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

Revenue growth of 4% despite macroeconomic headwinds
CHEP EMEA revenue growth 1H20 revenue growth components:
breakdown • Price/mix growth of 1% reflecting contract
indexation in line with inflationary cost environment
+8% +8% throughout the region
1% • Like-for-like volumes flat to 1H19 driven by the
2% economic slowdown in the region
+6% • Net new business growth +3% driven by prior-year
2% contract wins, primarily in Southern, Central and
2% Eastern Europe
+4% • Prior-year comparative growth : FY19 net new
business wins included 2pt contribution from large
1% automotive contract win
6%
5% 2H20 considerations:
4% • Like-for-like volume growth to continue to be
3% impacted by broader economic uncertainty –
particularly in the European pallets and automotive
businesses
FY17 FY18 FY19 1H20
Net new business wins Like-for-like volume Price/Mix
19
----- End of picture text -----

CHEP Asia-Pacific

Pallets growth and cost control offset impact of RPC contract loss

==> picture [361 x 205] intentionally omitted <==

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

Including AASB 16 1H20 Change vs. 1H19 1H20 performance reflects:
Overall sales growth +2%:
Actual Constant • Pallets revenue +4% driven by like-for-like volume
(US$m) FX FX growth and price realisation in Australian pallets
• RPC and Containers revenue down (5)% reflecting
Pallets 171.6 (1)% 4% prior-year contract loss in the Australian RPC
business
RPCs + Containers 50.9 (9)% (5)% Excluding impact of AASB 16: • Underlying Profit +3% and margins +0.3pts driven
by strong sales contribution to profit and delivery
Sales revenue 222.5 (3)% 2% • of plant efficiencies in Australia; andROCI in line with prior year
Underlying Profit 58.7 3% 8%
Large Australian RPC contract win in 1H20
Margin 26.4% 1.4pts 1.5pts • Start date: July 2020, 10-year contract term
• Contribution to earnings to commence in FY22
ROCI 23.5% (3.5)pts (3.3)pts • Contract returns expected to be well in excess of cost
of capital with initial upfront investment in FY21
20
----- End of picture text -----

Cash flow

Significant increase in Free Cash Flow before special dividend

==> picture [316 x 191] intentionally omitted <==

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

(US$m, actual FX) 1H20 1H19 Change Free Cash Flow (before special dividend) up
US$108.1m reflecting:
EBITDA [1] 812.9 717.5 95.4 • +US$56m year-on-year increase from
Capital expenditure (cash basis) [2] (504.1) (523.4) 19.3 • AASB 16. Refer to Appendix 3a; and US$(119)m adverse cash impact relating to
US supply chain investments [3] (16.7) (31.0) 14.3 the IFCO divestment:
Proceeds from sale of PP&E 50.0 43.3 6.7 o US$97 million IFCO cash contribution in 1H19
(recognised in discontinued operations)
Working capital movement 6.5 (56.0) 62.5 o US$22 million of 1H20 ordinary dividend cash
Other (26.8) (12.5) (14.3) • Material improvement in operating cash outflow relating to prior-year IFCO earnings
Cash Flow from Operations 321.8 137.9 183.9 flows driven by higher earnings, lower
capital spend despite volume growth, and
Significant Items and discontinued (3.2) 94.2 (97.4) increased cash collections reflected in
operations working capital
Financing costs and tax (146.5) (159.0) 12.5 Ordinary dividends fully funded from Free
Free Cash Flow 172.1 73.1 99.0 Cash Flow before special dividends after
Dividends paid – ordinary (157.3) (166.4) 9.1 adjusting for IFCO-related dividend of US$22m
and US automation investment of US$17m
Free Cash flow – before special dividend 14.8 (93.3) 108.1 funded by FY18 asset actions
Dividends paid – special (183.2) - (183.2)
Free Cash Flow after dividends (168.4) (93.3) (75.1) Special dividend of US$183.2 million
funded by IFCO sale proceeds received
in FY19
123 EBITDA has been redefined as Underlying profit after adding back depreciation, amortisation and IPEP expense. Capital expenditure excluding US supply chain investments on accelerated automation and lumber procurement. US supply chain investments in accelerated automation and lumber procurement funded by FY18 asset actions.
----- End of picture text -----

==> picture [22 x 20] intentionally omitted <==

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

21
----- End of picture text -----

Capital expenditure

Lower capital investment driven by asset efficiency and timing of nonpooling capex

==> picture [361 x 192] intentionally omitted <==

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

Change vs.
1H19
Accruals basis 1H20 (constant FX)
Pooling Capex US$469m US$(11)m Pooling capex to sales ratio of 19.6% in 1H20
down from 21.4% in 1H19
Volume growth +US$24m Pooling capex decreased US$11m despite strong
top line growth:
• 1H19 spend included US$11m additional capex to
Mix impact +US$9m support Brexit related retailer stocking and US$12m
automotive spend in Europe
1H19 Brexit and auto investment US$(23)m • 1H20 benefitted from asset efficiency
improvements across the Group, including in the
(Efficiencies)/Other US$(21)m Latin America pallets business
Non-pooling capex decreased US$15 million in
Non-Pooling Capex US$42m US$(15)m 1H20 largely due to timing of spend
Total Capex US$511m US$(26)m • US supply chain programme investment weighted towards the second half of FY20
22
----- End of picture text -----

Balance sheet

Balance sheet remains strong; Financial policy updated for AASB 16

==> picture [314 x 133] intentionally omitted <==

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

Dec 19 [1] Jun 19 [2] • Increase in net debt at 31 December 2019 reflects US$718m
of lease liabilities brought to account under AASB16 and
Net debt US$1,535m US$98m US$674m of capital management transactions in 1H20 [4]
Average term of • Cash and undrawn committed bank facilities total US$2.4bn,
committed facilities 4.5 years 4.0 years sufficient to fund remaining balance of share buy-backs
(~US$1.2bn)
Undrawn committed US$1.4b US$1.6b FY20 net interest outlook
facilities • FY20 net interest expense expected to be
~US$85-$90 million including the increase driven by lease
Cash / deposits [3] US$979m US$2,103m finance costs with the adoption of AASB 16
Revised Financial policy & EBITDA definition
• Financial policy revised for AASB16 of net debt/EBITDA
1H20 [1] 1H19 [2] <2.00x (previously <1.75x)
• IPEP expense now treated akin to depreciation in
EBITDA/net finance 21.7x 17.9x determining EBITDA
costs • Investment-grade credit ratings maintained: Standard &
Net debt/EBITDA 0.94x 1.51x Poor’s BBB+ and Moody’s Baa1
----- End of picture text -----

==> picture [252 x 13] intentionally omitted <==

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

123 EBITDA has been redefined as Underlying profit adding back depreciation, amortisation and IPEP expense. Net debt includes lease liabilities. As reported in August 2019 and February 2019, respectively. 1H19 and FY19 comparative metrics exclude the impact of AASB16 and IPEP. Included in net debt.
----- End of picture text -----

==> picture [302 x 5] intentionally omitted <==

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

4 Capital management includes share buy-backs of US$361.1m, repayment of capital to shareholders of US$129.3m and special dividend payments of US$183.2m in 1H20.
----- End of picture text -----

==> picture [22 x 20] intentionally omitted <==

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

23
----- End of picture text -----

Summary

Strong financial performance reflects delivery of operational initiatives and defensive nature of business

Resilient revenue growth despite macroeconomic uncertainty
Initiatives underway and on track to deliver operational and financial improvements in CHEP Americas
Strong improvement in underlying cash flow generation reflecting asset efficiency and disciplined working capital management
Conservative and flexible balance sheet underpinned by investmentgrade credit rating

==> picture [165 x 124] intentionally omitted <==

==> picture [22 x 21] intentionally omitted <==

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

24
----- End of picture text -----

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

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

Half-year 2020
results presentation
17 February 2020
----- End of picture text -----

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

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

3
appendix
----- End of picture text -----

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

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

Appendix 1
ESG Recognitions
Rated Brambles as the • Barron’s is a highly regarded financial magazine
#1 most sustainable covering US financial markets. Published by Dow Jones
international company in 2019 & Company and affiliated with the Wall Street Journal
• Sustainalytics is the leading independent global
provider of ESG and corporate governance research
“Leader” Top 1% of
and ratings to investors
companies analysed • Data is used widely by many investors for risk
management and comprehensive valuations
Top 10% of companies • MSCI’s ESG Indexes provide investors with
analysed globally achieving the transparency into ESG and values alignment
MAXIMUM AAA RATING • MSCI’s data is used extensively for in-house valuations
Brambles was one of 6 global • CDP suite of ESG surveys (Climate Change, Forests and
leaders achieving Forest A list Supply Chain) are considered comprehensive on
status in 2017 specific issues with high quality inputs
• BXB’s results have increased consistently over the last
Second position in industry
three years
category, placing us in the • DJSI / RobeccoSam was rated as the highest quality
96% percentile for 2019
ESG analysis by investors and public companies
Brambles is a constituent of the • The FTSE4Good Index is part of London Stock
FTSE4Good index 2014, 2015, Exchange Group and aims to drive better standards in
2016, 2017 and 2018 sustainable investment
27
----- End of picture text -----

==> picture [155 x 31] intentionally omitted <==

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

Appendix 2
US automation programme update
----- End of picture text -----

==> picture [313 x 114] intentionally omitted <==

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

Overview of project Progress to date
• ~US$160m capital investment • Plant automation project launched in 2H18
from FY19-FY21, ~5-year payback • Progress on track to meet automation
• Capital investment to be fully funded by the objectives:
proceeds from the sale of CHEP Recycled o 25 sites automated to date
and the HFG JV (US$252m) o Automated sites delivering in line with investment
• 50+ plants to be automated o case; and14 sites identified for automation in 2H20, in line with
• Automation penetration to reach 85% FY20 target to automate 17 sites
o Current US automation level ~50%
----- End of picture text -----

==> picture [340 x 91] intentionally omitted <==

==> picture [22 x 21] intentionally omitted <==

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

28
----- End of picture text -----

==> picture [316 x 227] intentionally omitted <==

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

Appendix 3a
AASB 16: Leases - 1H20 pre-tax impact
1H20 pre-tax impact of AASB 16 on the Income Statement, Balance Sheet, Cashflow & ROCI
Income Underlying Profit +US$12m Additional depreciation charge of US$57m Replaces operating lease charge US$(69)m
statement
Interest expense US$(14)m Additional interest expense on lease liabilities
Cash Flow from +US$69m Operating lease payments of US$69m are removed from Cash Flow
Operations from Operations
Cashflow statement Free Cash Flow +US$56m US$69m of lease payments removed from Free Cash Flow and interest paid on leases of US$(13)m [1] included
Cash flow from US$(56)m Remaining US$(56)m of lease payments treated as repayment of
financing activities financing liability
Lease liability of US$(718)m (not included in Average Capital
Net assets US$(180)m Invested) and dilapidation provision of US$(70)m
Balance sheet Lease asset of US$608m
Average Capital Invested US$555m Average lease asset of US$619m and dilapidation provision of US$(64)m
Return on
(1.8)pts Reduction due to capitalisation of leases
capital invested
Note: Modified retrospective approach adopted, comparative period not restated.1 Excludes US$1 million of accrued interest.
----- End of picture text -----

==> picture [22 x 20] intentionally omitted <==

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

29
----- End of picture text -----

Appendix 3b FY20 AASB 16 segment impacts

	Underlying		Cash Flow from	Average Capital
(US$m)	Profit	EBITDA	Operations	Invested
Americas	7.0	36.2	36.2	347.4
EMEA	2.8	22.7	22.7	117.9
Asia-Pacific	2.6	9.4	9.4	82.1
Group	12.4	69.0	69.0	555.1

==> picture [22 x 21] intentionally omitted <==

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

30
----- End of picture text -----

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

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

Appendix 4
Brambles: Sales revenue by region and sector
1H20 sales revenue by region 1H20 sales revenue by sector
India, Middle Eastern Asia
AmericaLatin East, Turkey, Africa5.7% Europe3.3% 1.2% Packaging2.6% 11.3%Other Auto 3.8%
7.0% General
retail 2.2%
USA &
8.3%ANZ Canada44.7% Storage & Dist. moving Fast-
2.3% Beverage15.7% consumer goods52.7%
Western
Europe Fresh
29.8% produce
9.4%
Developed markets Emerging markets “Consumer staples” sectors Industrial sectors
31
----- End of picture text -----

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

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

Appendix 5
Major currency exchange rates [1]
USD exchange rate: USD EUR GBP AUD CAD ZAR MXN BRL PLN NZD
1H20 1.0000 1.1070 1.2598 0.6823 0.7569 0.0675 0.0514 0.2460 0.2563 0.6455
Average
1H19 1.0000 1.1520 1.2929 0.7231 0.7593 0.0708 0.0515 0.2574 0.2683 0.6702
31 Dec 19 1.0000 1.1201 1.3111 0.6996 0.7660 0.0709 0.0528 0.2493 0.2633 0.6728
As at
31 Dec 18 1.0000 1.1440 1.2690 0.7044 0.7336 0.0693 0.0509 0.2577 0.2660 0.6713
1 Includes all currencies that exceed 1% of 1H20 Group sales revenue, at actual FX rates.
32
----- End of picture text -----

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

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

Appendix 6
1H20 currency mix
(US$m) Total USD EUR GBP AUD CAD MXN ZAR PLN BRL NZD Other [1]
Sales revenue 2,398 926 533 176 171 145 111 92 42 30 28 144
1H20 share 100% 39% 22% 7% 7% 6% 5% 4% 2% 1% 1% 6%
1H19 share 100% 37% 23% 8% 8% 6% 4% 4% 2% 1% 1% 6%
Net debt [2] 1,535 1,060 1,076 (68) (885) 50 157 117 (20) 21 27 -
12 No individual currency within ‘other’ exceeds 1% of 1H20 Group sales revenue at actual FX rates. Net debt shown after adjustments for impact of financial derivatives. Net debt includes US$718 million of lease liabilities and US$245 million of term
deposits in AUD with maturity greater than 3 months.
33
----- End of picture text -----

Appendix 7 Credit facilities and debt profile

Maturity	Type1	Committed facilities	Uncommitted facilities	Debt drawn	Headroom
<12 months	Bank	(US$b at 31 December 2019) - 0.3 0.1 0.7 - 0.1 0.1 - - 0.4 - - 0.9 - 0.6 1.0 - 1.0			0.2
				0.1 0.1 - - 0.6 1.0
1 to 2 years	Bank	0.7	-		0.6
2 to 3 years	Bank	0.1	-		0.1
3 to 4 years	Bank	0.4	-		0.4
4 to 5 years	Bank/EMTN2	0.9	-		0.3
>5 years	144A3/EMTN2	1.0	-		-
Total		3.1	0.3	1.8	1.6
1Excludes leases. 2European Medium Term Notes. 3US$500m 144A bond.

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

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

Appendix 8
Net plant and transport costs/sales revenue
Net transport cost/sales
Net plant cost/sales revenue revenue
1H20
1H20 1H19 1H20 1H19
Ex. AASB 16 [1]
CHEP Americas 37.4% 37.9% 37.8% 23.5% 24.1%
CHEP EMEA 23.3% 23.6% 23.0% 20.5% 20.4%
CHEP Asia-Pacific 32.9% 33.9% 35.3% 12.7% 12.9%
Group 31.5% 31.9% 31.6% 21.3% 21.5%
1 Excludes the net benefit of replacing operating lease costs with plant depreciation and interest costs under AASB 16.
35
----- End of picture text -----

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

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

Appendix 9a
CHEP Americas: Underlying Profit analysis (US$m)
(5) (4) (18)
(26)
63 7 (1)
185 184
168
1H19 Volume, Depreciation Net transport Net plant Other AASB 16 1H20 FX 1H20
Underlying price, mix 1 costs costs Underlying Underlying
Profit Profit Profit
(constant FX)
1 Sales growth net of volume-related costs (excluding depreciation).
36
----- End of picture text -----

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

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

Appendix 9b
CHEP EMEA: Underlying Profit analysis (US$m)
(8)
(2) (9)
28 (8) 3 (9)
227 231 222
1H19 Volume, Depreciation Net transport Net plant Other AASB 16 1H20 FX 1H20
Underlying price, mix 1 costs costs Underlying Underlying
Profit Profit Profit
(constant FX)
1 Sales growth net of volume-related costs (excluding depreciation).
37
----- End of picture text -----

Appendix 9c CHEP Asia-Pacific: Underlying Profit analysis (US$m)

==> picture [361 x 157] intentionally omitted <==

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

(1) 3 (2) 2 (3)
3
62
59
57
1H19 Volume, Net transport Net plant costs Other AASB 16 1H20 FX 1H20
Underlying price, mix 1 costs Underlying Underlying
Profit Profit Profit
(constant FX)
1 Sales growth net of volume-related costs (excluding depreciation).
38
----- End of picture text -----

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

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

Appendix 10
Capital expenditure on Property, Plant and Equipment
(Accruals basis, US$m)
1,060
1,013
849 823 294
317
320 231 548 511
643 185 132
606
538
489
306 337
40 54 90 123 57 42
FY16 FY17 FY18 FY19 1H19 1H20
Other PP&E Replacement (DIN)1 Growth2
1 2 Growth capex includes investments for availability of pooling equipment for new and existing product lines, as well as the impact of changes in cycle times.Replacement capex in a period is the sum of Depreciation expense, IPEP and the Net book value of compensated assets and scraps (disposals).
39
----- End of picture text -----

Appendix 11 Glossary of terms and measures

==> picture [361 x 201] intentionally omitted <==

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

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 (ACI) Average Capital Invested (ACI) is a six-month average of capital invested.
Capital invested is calculated as net assets before tax balances, cash, term deposits, borrowings and
lease liabilities, but after adjustment for pension plan actuarial gains or losses and net equity
adjustments for equity-settled share-based payments
Capital expenditure (capex) Unless otherwise stated, capital expenditure is presented on an accruals basis and excludes intangible
assets 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
Compound Annual Growth Rate The annualised percentage at which a measure (e.g. sales revenue) would have grown over a period if
(CAGR) it grew at a steady state
Constant currency / constant FX Current period results translated into US dollars at the actual monthly exchange rates applicable in the
comparable period, so as to show relative performance between the two periods
DIN Comprises Depreciation, IPEP expense and Net book value of scrapped asset and compensated asset
written-off. DIN is used as a proxy for replacement capital expenditure
EBITDA Underlying profit after adding back depreciation, amortisation and IPEP expense
40
----- End of picture text -----

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

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

Appendix 11
Glossary of terms and measures
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 (ROCI) Underlying Profit multiplied by two to calculate an annualised amount, divided by Average Capital
Invested
RPC Reusable plastic/produce crates or containers, used to transport fresh produce
Sales revenue Excludes 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
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 publicly 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 -----

Investor Relations contacts

Sean O’Sullivan Vice President, Investor Relations & Corporate Affairs [email protected] +61 2 9256 5262 +61 412 139 711 Raluca Chiriacescu Director, Investor Relations [email protected] +44 20 3880 9412 +44 7810 658044 43

AI assistant

BRAMBLES LIMITED Interim / Quarterly Report 2020

64593_rns_2020-02-16_95441795-bfcf-46e0-8934-775b092851a2.pdf

COPIES OF SLIDES FOR WEBCAST