Brambles 2006 Annual Report - Alle jaarverslagen

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Brambles
2006 Annual Report
Our decision to focus on CHEP and Recall will allow us
to grow and maximise value for our shareholders.
The excellent results achieved during the 2006 financial year
provide a firm foundation for implementing our strategy and
building a stronger future for Brambles.
Financial Performance and Our People
The presentation of this year’s financial results is divided
into two categories:
• continuing operations – that is, CHEP and Recall; and
• discontinued operations – that is, all the other
businesses.
The divestment of the discontinued operations was
extremely successful, with gross divestment proceeds
totalling US$3.6 billion. A profit on sale of US$1,071.6
million has been recognised in the 2006 results, excluding
the impact of Cleanaway UK. This sale was announced
on 30 June 2006 but, at the date of this annual report,
remains subject to competition authority approval.
The highlights of the financial performance (before
special items) of our continuing operations, CHEP
and Recall, included:
• sales increasing by 8% to US$3,522.1 million;
• comparable operating profit increasing by 29%
to US$771.3 million; and
• profit after tax increasing by 40% to US$430.1 million.
These excellent results were achieved through rigorous,
value-based management, strong operational discipline
and tight control over capital. We have a philosophy of
continuous improvement in all areas of our business –
be it in customer service or operational performance.
The use of Brambles Value Added (BVA) continues to be
a significant factor. BVA applies a common performance
metric across the Group to ensure that each business is
focused on creating value for shareholders.
It is calculated by deducting a 12% pre-tax cost of capital
charge from comparable operating profit. This means each
business must incorporate the true cost of the capital it
employs in decision-making. BVA is also used to align
executive remuneration with shareholder returns.
Allied with our processes to improve both sales and
operating performance, we are continuing to look at ways
to innovate in terms of product and service offering, both
in CHEP and Recall.
In CHEP we have, through the medium of global councils,
created an environment in which best practice is shared
across CHEP operations around the world. We are also
entering new markets and are now setting up an operation
in China which, over the years, we hope will be very
profitable for Brambles.
For the continuing operations of CHEP and Recall, BVA
was US$347 million this financial year, US$168 million
more than last year.
Brambles also uses other tools, such as Six Sigma,
to define and measure process improvement, be it
in on-time delivery for our customers or improved
operational efficiency.
In late 2005, we brought together all our business
improvement programmes (including BVA, Six Sigma
and Lean Manufacturing) under one umbrella: Impact
– implement through action. This programme will enable
us to achieve our business improvement goals by using a
common and consistent methodology to drive continuous
improvement while always seeking to meet or exceed our
customers’ expectations.
Notes:
All comparative trading measures referred to are in constant currency. The Directors believe constant currency comparisons to be relevant measures
of business performance. Constant currency and comparable operating profit are defined on page 171.