Business Overview:

• The invisible backbone of supply chains, with global revenue diversification (60 countries) plus defensive exposure to the FMCG sector
• History of strong capital management, evidenced by divestments (IFCO RPC, 2019), minimal shareholder dilution and ROIC focus (e.g. Costco plastic trial)
• Moderate to high level of earnings quality, evidenced by a growing dividend, high ROCI (>15%) albeit low TSR (6.5% 10-year CAGR)

Competitive Advantages:

• First mover advantage has led to scale-related operational efficiencies in managing the world’s largest pool of reusable pallets, crates and containers and a superior network advantage (either a monopoly or duopoly in most markets)
• A genuinely sustainable company generating value through a ‘share and reuse’ circular business model. Competitors considered to be 3-4 years behind BXB on sustainability targets
• Moderate switching costs, strengthened by deep supply chain D&A and a long operating history of operating trusted customer relationships