The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Matthew H. Ryan - Barrenjoey Markets Pty Limited, Research Division - Analyst
: I just had a question with regards to the strategic priorities that you've sort of outlined on Page 10. I think similar to your comments, some of these
look pretty similar to previous Investor Days that we've been to. And Graham, I think you just mentioned that you've learned some lessons from
transformational programs that have been done in the past. So I was just hoping if you could share what you have learned and I guess how you're
using that to change what you're doing moving forward.
Question: Matthew H. Ryan - Barrenjoey Markets Pty Limited, Research Division - Analyst
: And just a question for the guidance for this year. Is there any reason to believe if you decided not to conduct this transformational program? Do
you sort of think you'd meet your medium-term guidance that you've given in the past of sort of mid-single-digit revenue growth and operating
leverage for this year?
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SEPTEMBER 13, 2021 / 7:00AM, BXB.AX - Brambles Ltd Investor Day 1
Question: Owen Birrell - RBC Capital Markets, Research Division - Analyst
: Just a quick question. Looking at the projected digital spend, including that guided component. Firstly, can I just ask, is there any additional spend
beyond that to digitize assets that would effectively be in the pool in CapEx? Or is all the CapEx that you project to spend on digitization over that
period of time captured in that table? That's the first question.
The second one is really, what percentage of the pool needs to be digitized to unlock a lot of the opportunities that you're talking about? And that
spend up to the end of '25, including that gain of CapEx, what percentage of the pool is that actually [due to]?
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SEPTEMBER 13, 2021 / 7:00AM, BXB.AX - Brambles Ltd Investor Day 1
Question: Owen Birrell - RBC Capital Markets, Research Division - Analyst
: It sounds like that spend is very localized in very target market and target opportunities. Is there -- I mean you mentioned Canada and the U.K., and
then you said 2 regions that the bulk of that spend is going to be directed to. Or is the spend more broadly spread across Europe and the U.S., for
example?
Question: Owen Birrell - RBC Capital Markets, Research Division - Analyst
: I've got questions for both Alasdair and JJ. Let me start with the questions for Alasdair. I was just wondering, it looks like there's a lot of change in
that customer platform that's occurring in a very short period of time. Can you give us a sense of what percentage of that short-term transformation
OpEx of around about $70 million over the next 2 years is going into this customer transformation platform? And you said that it will give you a
major competitive advantage against your rivals. And I'm just wondering where does -- where do you see BXB currently or Brambles currently
sitting relative to its competitors today?
Question: Owen Birrell - RBC Capital Markets, Research Division - Analyst
: Yes. I guess what I'm asking is, is anybody -- any of your rivals currently doing that throughout Europe or North America?
Question: Owen Birrell - RBC Capital Markets, Research Division - Analyst
: That's excellent. And just a question for JJ. Really, that regenerative example, the Wheeled Q+, I think, is really a good example of, I guess, how you
can take -- put these products into -- in more of a circular economy. Look, I'm just wondering if you can give me a sense on how far advanced are
you in creating a recycled and recyclable plastic pallet. And how far away are we from something like that actually being commercial?
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SEPTEMBER 13, 2021 / 7:00AM, BXB.AX - Brambles Ltd Investor Day 1
Question: Matthew H. Ryan - Barrenjoey Markets Pty Limited, Research Division - Analyst
: Hi, JJ. I was just going to ask about, I guess, the construction of a plastic pallet and the use of resin, and just the imports going into a plastic pallet
and how you're viewing that from a sustainability perspective?
Question: Matthew H. Ryan - Barrenjoey Markets Pty Limited, Research Division - Analyst
: Yes. I guess I just wanted to be clear that as we sit here today, are you sort of viewing plastic as an inferior products from a sustainability perspective?
From, I guess, the technology and the know-how that we've got right now?
Question: Matthew H. Ryan - Barrenjoey Markets Pty Limited, Research Division - Analyst
: Okay. And are you, in your conversations with customers, finding that either retailers or your customers have actually got a preference on sustainability
grounds, plastic or wood?
Question: Owen Birrell - RBC Capital Markets, Research Division - Analyst
: Yes. Look, just -- sorry, I just wanted to ask just a question on the automation program. Of the $415 million of spend that you have in CapEx in
supply chain upgrades, just wondering how much of that is specifically on the automation of the plants? And what percentage level of automation
does that actually get you to in Europe and in the North American market at the end of FY '25?
Question: Owen Birrell - RBC Capital Markets, Research Division - Analyst
: I guess the origin of my question is you spent $300 million to date, you've got another $120 million to go on automation. How far through the
target of 100% automation are you at that point?
Question: Owen Birrell - RBC Capital Markets, Research Division - Analyst
: That's great, Nessa. One last question for Graham, if I may. Slide 11, you highlight growth potential and you've got China on that chart. It's a market
that has kind of gone pretty quiet for you guys more recently. Is that a viable market opportunity? Or you've just put it on the chart there to put in
a 99% market opportunity?
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