The principal risks and uncertainties facing Brambles are described below.

• Economic Cycle – Brambles has operations spread across a diverse range of countries and territories. It is subject to risks related to global economic and business conditions. These may affect, among other things, profitability, demand for Brambles’ services and solvency of counterparties.
   
• Business Environment Changes – Brambles has operations spread across a diverse range of countries and territories. It is subject to risks related to rapid and sustained changes in the business environment, which may invalidate aspects of its current business models. These changes could include fuel prices, lumber supply and the structure of customers’ supply chains. These may affect, among other things, profitability and demand for Brambles’ services.
   
• Climate Change – Brambles is subject to the risk of unforeseen impacts upon its businesses arising from climate and environmental changes. Examples include emissions trading or carbon taxes and government regulation such as mandatory eco-efficiency targets.
   
• Competition and Retention of Major Customers – Brambles operates in a competitive environment. Many of the markets in which Brambles operates are served by numerous competitors and are subject to the threat of new entrants. In addition, the concentration of distributors in certain areas could lead to shifts in bargaining position and intensity of competition. The above risks could have an impact on market structure, penetration, revenue, profitability, economies of scale and the value of existing assets.
   
• Insufficient Growth – Brambles is subject to the risk of not selecting the optimal corporate strategy, business model, financial structure or capital allocation, including the pace of expansion into emerging markets. As these are central to the value of shareholders’ investment and protection of Brambles’ assets, Brambles may be unable to capture the full value of its growth opportunities.
   
• Obsolescence of Pallet Platform – New technologies in pallet design or components could influence alternative supply chain solutions. This would, over time, have an impact on revenue, cost base, economies of scale and the value of CHEP’s existing assets.
   
• Innovation – Brambles is subject to the risk of not being able to optimise innovations in its services, products, processes and commercial solutions, including capturing the full value of any innovations that support its growth opportunities. This could have an impact on revenue, profitability, economies of scale and the value of existing assets.
   
• Operational Improvement – Brambles is subject to the risk that it may be unable to capture the full value of operational improvement opportunities. This could result in a reduced ability to control costs or a reduction in control of CHEP’s equipment pool.
   
• Equipment Quality – Satisfaction of CHEP customers may fluctuate with the customers’ perceived views of equipment quality which, in turn, is influenced by the effectiveness of the quality standards that CHEP employs in its equipment pool. Brambles is subject to the risk that it may not optimise these standards, thereby adversely affecting customer satisfaction with the CHEP service offering and/or the operating and capital costs of the equipment pool.
   
• People Capability – Brambles is subject to the risk of not attracting, developing and retaining high performing individuals in the optimum organisational structure, which could result in it not having sufficient quality and quantity of people to meet its growth and business objectives.
   
• Market Communication – Brambles is subject to risks relating to market expectations, which may lead to a loss of investor confidence in the business and its management.
   
• Systems and Technology – Brambles relies on the continuing operation of its information technology and communications systems, including those in CHEP’s Global Data Centre. Failure to optimise these systems, or an extended systems interruption event, could impair Brambles’ ability to provide its services effectively. This could damage its reputation and, in turn, have an adverse effect on its ability to attract and retain customers.
   
• Refinancing – The conditions in global credit markets may create a risk that Brambles may be unable to renew its existing credit facilities. This could have an impact on Brambles’ ability to manage cost-effectively its capital structure whilst continuing to fund its key growth opportunities.