This report is for distribution only to Australian resident clients of Morgan Stanley. GICS - Commercial Serv/Supp Brambles Limited (BXB.AX) Price: $13.15 Business Summary Snapshot Brambles Limited (BXB) is a supply-chain logistics company operating in more than 50 countries, primarily through the CHEP and IFCO brands. BXB specializes in the pooling of unit-load equipment and the provision of associated services. BXB is focusing on the outsourced management of returnable pallets, crates and containers. Date Market Cap. Shares on issue 12 Month High 12 Month Low Pallets: The business, carried out under the name CHEP, focusses on the outsourced management of returnable pallets, which it issues, collects and reissues through a network of service centres in multiple countries. Manufacturers, producers, distributors and retailers use the pallets and containers to transport their products safely and efficiently through the supply chain. In addition, Pallets provides supply chain optimisation and transport management services. In the USA Pallet provides a national network of pallet management services, to sort, repair and reissue pallets. Reusable Plastic Crates: The business is carried out under the name IFCO in Europe, North and South America and CHEP in Australia, New Zealand and South Africa with focus on the outsourced management of reusable plastic containers which are used primarily to transport fresh produce from producers to grocery retailers. 3 August 2016 $20,856m 1,586.0m $13.64 $9.34 Investment Fundamentals FYE 30 Jun 2012A 2013A 2014A 2015A Profit Profit (norm) m m 565.5 612.8 690.7 730.1 1,345.8 641.9 760.9 815.2 EPS($A) EPS Growth P/E P/E Relative ¢ % x % 41.0 23.0 16.7 1.3 46.6 13.6 16.4 1.2 40.9 -12.2 22.5 1.6 51.9 26.8 19.8 1.3 DPS($A) ¢ 26.0 27.0 Yield % 3.8 3.5 Franking % 25 30 Source: Morningstar historical financials 27.0 2.9 30 36.5 3.6 30 Share Price Chart Containers: The business provides intermediate bulk, automotive and chemical and catalyst containers to its customers. It also operates an airline container pooling and repair business, and a non-flight critical aviation equipment maintenance and repair business called CHEP Aerospace. Total Return on $10,000 Investment Charts Source: Morningstar © 2016 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or 'class service' have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO"). Brambles Limited (BXB.AX) Profit & Loss ($AM) Cash Flow ($AM) 2011A 2012A Sales Revenue 4,352 5,520 Total Revenue ex. Int. 4,477 5,660 EBITDA 1,245 1,533 Depreciation & Amort. -447 -542 Goodwill Amortisation --EBIT 798 991 Net Interest -119 -149 Profit Before Tax 679 842 Income Tax -192 -229 Outside Equity Int. -0 -Profit after Tax 487 614 Significant Items after Tax -45 -49 Reported Profit after Tax 443 565 Preferred Dividends --Source: Company Reports and Morningstar 2013A 6,350 6,507 1,740 -601 -1,140 -120 1,020 -290 -731 -40 691 -- 2014A 5,737 5,880 1,582 -561 -1,022 -122 899 -257 -1,367 -21 1,346 -- 2015A 7,115 7,281 2,021 -715 -1,306 -162 1,144 -329 -814 -53 761 -- Ratios and Substantial Shareholders 2012A 2013A 2014A 2015A Profitability Ratios EBITDA Margin EBIT Margin Net Profit Margin Return on Equity Return on Assets % % % % % 28.61 18.34 11.20 21.36 8.04 27.77 17.95 11.10 22.79 9.89 27.41 17.95 11.50 22.38 9.67 27.58 17.81 11.19 21.98 9.34 28.40 18.35 11.46 23.71 9.40 Debt/Safety Ratios Net Debt/Equity Interest Cover % x 122.33 6.72 98.16 6.64 89.72 9.53 85.85 8.35 101.81 8.08 Source: Company Reports and Morningstar Price vs. EPS 2013A 7,121 1,772 1,445 -1,015 -193 --1,089 127 -459 -426 -71 165 -13 81 2014A 6,887 1,696 1,346 -972 -46 --489 5 -418 -690 167 80 -11 235 2015A 7,980 2,078 1,723 -1,299 -648 --1,845 --468 78 -44 289 -41 204 2013A 139 1,212 61 77 1,489 4,752 2,235 87 7,085 8,573 3,066 2,246 5,312 3,262 7,136 -7,276 3,402 -3,262 2014A 236 1,171 71 75 1,553 4,636 1,639 79 6,343 7,896 2,743 2,232 4,975 2,920 6,362 -7,158 3,716 -2,920 2015A 216 1,360 106 77 1,759 5,761 2,280 84 8,130 9,889 3,718 2,732 6,450 3,439 7,848 -9,247 4,838 -3,439 Balance Sheet ($AM) 2011A Top 5 Substantial Shareholders Commonwealth Bank of Australia MFS Investment Management Limited 2011A 2012A Receipts from Customers 4,852 6,101 Funds from Operations 1,299 1,431 Net Operating Cashflow 944 1,069 Capex -755 -984 Acquisitions & Investments -978 -22 Sale of Invest. & Subsid. -2 -0 Net Investing Cashflow -1,641 -915 Proceeds from Issues 215 320 Dividends Paid -209 -390 Net Financing Cashflow 646 -54 Net Increase Cash -51 99 Cash at Beginning 115 79 Exchange Rate Adjust. 11 -29 Cash at End 75 150 Source: Company Reports and Morningstar 9.6% 9.0% 2011A 2012A Cash & Equivalent 129 171 Receivables 978 1,035 Inventories 53 47 Other Current Assets 64 74 Current Assets 1,223 1,327 Prop. Plant & Equipment 3,985 4,061 Intangibles 1,954 1,933 Other Non-Current Assets 72 82 Non-Current Assets 6,010 6,077 Total Assets 7,233 7,404 Interest Bearing Debt 2,921 2,810 Other Liabilities 2,029 1,905 Total Liabilities 4,951 4,715 Net Assets 2,283 2,689 Share Capital 13,381 6,363 Reserves -13,704 -6,564 Retained Earnings 2,605 2,890 Outside Equity Int. 0 -Total Shareholders Equity 2,283 2,689 Source: Company Reports and Morningstar Principals & Directors Principals Company Secretary Mr Robert Nies Gerrard Directors Mr Stephen Paul Johns ( Non-Executive Director,Non-Executive Chairman ) Ms Sarah (Carolyn) Hailes Kay ( Non-Executive Director ) Mr Anthony (Tony) Grant Froggatt ( Non-Executive Director ) Mr David Peter Gosnell ( Non-Executive Director ) Mr Scott Perkins ( Non-Executive Director ) Mr Thomas Joseph Gorman ( Chief Executive Officer,Executive Director ) Mr Brian James Long ( Non-Executive Director ) Ms Tahira Hassan ( Non-Executive Director ) Ms Christine Cross ( Non-Executive Director ) Mr George El Zoghbi ( Non-Executive Director ) Source: Company Reports and Morningstar © 2016 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or 'class service' have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO").