Brambles

2015
Strategy Scorecard

Investment Proposition

Our customer value proposition enables a

strong and sustainable

competitive advantage ...

... which drives superior
rates of

economic returns

(high quality of opportunity)...

... and positions us uniquely to deliver superior

levels of growth

(high quality of opportunity)...

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Five-Year Targets1

Invest in product and service quality, asset management and business development in support of customer value

Five-Year Targets1

Consistently improve Group Return on Capital Invested to at least 20% by FY19

Five-Year Targets1

Deliver annual percentage sales growth in the high single digits

1 Five-year performance objectives are provided on a constant-currency basis, exclusive of the impact of acquisitions since December 2013

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FY15 Progress

Continued investment in maintaining and enhancing value proposition through innovation and customer collaboration

Key investments in the period included investment in expansion of equipment pools in support of European RPCs and Pallets Americas customers

FY15 Progress

On track: Return on Capital Invested prior to acquisition impacts up 0.3 percentage points to 16.6%

Final stages completed of Global Supply Chain program to remove US$100M of direct costs through plant network optimisation and other operational improvements

One Better program launched to reduce indirect cost burden by US$100M by end FY19

FY15 Progress

Sales revenue growth of 6%, slightly below five-year average target

Targeted M&A in offshore oil and gas container logistics sector through acquisition of Ferguson Group

Continued careful expansion into new countries

Geographic expansion of RPCs sector through targeted M&A in Chile and Japan

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Investing in network advantage: organic capital expenditure opportunities of US$1.5 billion identified to FY19.

Driving operational and organisational efficiency: Brambles supports its investment programs with internal efficiency initiatives that enable financial resources to be redirected to activities that are value-adding for customers.

Capital allocation for long-term growth where Brambles’ specific supply-chain expertise can add value and long-term characteristics are attractive

Focus areas of investment:

  • Expansion of US pallet pool to support ongoing supply-chain restocking;
  • Expansion of differentiated RPC offerings in support of major retail partner merchandising;
  • Rollout of new pallet platforms to provide better solutions for customers; and
  • Refresh of brands and go-to-market strategies.

One Better program on track to have removed initial US$30M of indirect costs by end FY16 which are being retargeted to key initiatives such as the relaunch of myCHEP, the Group’s main customer portal, and simplified invoicing and pricing initiatives.

Continued disciplined approach to investing in new or unproven supply chains, with emphasis on managing Brambles' portfolio to prioritise opportunities that can generate adequate returns at scale.

Macro-economic environment: expectations for global growth remain challenging in the foreseeable future

Continued focus on driving growth through investment in expanded customer value proposition, and targeted diversification in opportunities with attractive long-term characteristics

Industry trends, in particular in the context of a dynamically changing retailing landscape and the ongoing globalisation of many supply chains

Ongoing programs to drive customer intimacy throughout the supply chain and uncover opportunities to leverage Brambles’ unique global scale and value proposition

Customer demand for sustainable outsourced supply-chain solutions amid an intensifying competitive environment

Rejuvenated sustainability strategy and key brand programs focused on leveraging inherent sustainability of Brambles business models and driving new level of customer engagement

Investing in network advantage: organic capital expenditure opportunities of US$1.5 billion identified to FY19.

Driving operational and organisational efficiency: Brambles supports its investment programs with internal efficiency initiatives that enable financial resources to be redirected to activities that are value-adding for customers.

Capital allocation for long-term growth where Brambles’ specific supply-chain expertise can add value and long-term characteristics are attractive

Macro-economic environment: expectations for global growth remain challenging in the foreseeable future

Continued focus on driving growth through investment in expanded customer value proposition, and targeted diversification in opportunities with attractive long-term characteristics

Industry trends, in particular in the context of a dynamically changing retailing landscape and the ongoing globalisation of many supply chains

Ongoing programs to drive customer intimacy throughout the supply chain and uncover opportunities to leverage Brambles’ unique global scale and value proposition

Customer demand for sustainable outsourced supply-chain solutions amid an intensifying competitive environment

Rejuvenated sustainability strategy and key brand programs focused on leveraging inherent sustainability of Brambles business models and driving new level of customer engagement

Investment
Proposition
 
Five-Year
Plan
 
FY15
Progress
 
FY16
Expectations
 
Risk Mitigations Chart
Investment Proposition Chart
Five-Year Plan Chart
FY15 Progress Chart
FY16 Expectations Chart