Slide 1: Ansell FY22 Half Year Results
ANSELL FY22 HALF YEAR RESULTS 15 FEBRUARY 2022 1
Slide 2: Disclaimer and Non-IFRS Measures
HALF YEAR RESULTS FY22 Disclaimer and Non-IFRS Measures The following presentation has been prepared by Ansell Limited (Ansell or the Company) for information purposes only. The information contained in this presentation is a summary only and does not purport to be complete. It should be read in con
Slide 3: Contents
Business Update 01 Neil Salmon Financial Results 02 Zubair Javeed CONTENTS FY22 Outlook 03 Neil Salmon 04 Q&A 3
Slide 4: Business Update
Ansell HyFlex’ GAMMEx Alphalec’ mMICR@®FLEX
Slide 5: Our Ansell Protects Mission Starts With The Safety Of Our Employees
HALF YEAR RESULTS FY22 Our Ansell Protects Mission Starts With The Safety Of Our Employees OUR PROGRESS OVER LAST TWO YEARS COMMENTARY • Strong safety performance – Ansell continues to record Leading Indicators Injury Statistics low injury rates in comparison to global peers • Back to Better – COVID
Slide 6: Stepping Up Our Sustainability Focus And Ambition
HALF YEAR RESULTS FY22 Stepping Up Our Sustainability Focus And Ambition SOCIAL COMPLIANCE ENVIRONMENT • Implementing new internationally calibrated Supplier • Scope 3 emissions: completed global inventory assessment Management Framework: having completed a risk developing strategies for abatement a
Slide 7: Sales Up ~8%, Margin Decline Accentuated By Short Term Headwinds
HALF YEAR RESULTS FY22 Sales Up ~8%, Margin Decline Accentuated By Short Term Headwinds GROWTH VS GROWTH VS ($m) FY20 H1¹ FY21 H1¹ FY22 H1 FY20 H1 FY21 H1 Sales 753.3 937.8 1,009.2 34.0% 7.6% GPADE² 257.2 336.8 275.5 7.1% (18.2%) Margin 34.1% 35.9% 27.3% (680bps) (860bps) EBIT³ 90.0 146.7 111.0 23.3
Slide 8: Performance by SBU
HALF YEAR RESULTS FY22 Performance by SBU ORGANIC GROWTH¹ BY SBU HEALTHCARE GBU INDUSTRIAL GBU FY20 H1 FY21 H1 FY22 H1 47.5% 32.3% 18.3% 19.6% 21.8% 9.5% 13.6% 5.8% 6.5% 3.2% 3.0% 1.4% 0.5% (1.0%) (10.9%) Exam/SU Surgical & HSS Life Sciences Mechanical Chemical • Prices lower vs peak • Strong demand
Slide 9: Significant Progress Against Strategic Growth Drivers
HALF YEAR RESULTS FY22 Significant Progress Against Strategic Growth Drivers ADDRESSING IMPORTANT PROTECTING MORE MANUFACTURING CUSTOMER SAFETY NEEDS END USERS LEADERSHIP • Good traction with online marketplaces • Continued investments and recently launched Ansell online supporting growth in Connect
Slide 10: Update on Supply Chain
HALF YEAR RESULTS FY22 Update on Supply Chain OPERATING CONDITIONS – FY22 H1 EARLY INDICATORS – FY22 H2 • Production was impacted by intermittent shutdowns • The Omicron wave is in its early stages across South at our manufacturing plants in South East Asia East Asia. Governments are adopting varied
Slide 11: Performance by Geography
HALF YEAR RESULTS FY22 Performance by Geography ORGANIC GROWTH BY REGION • Divergent performance by geography with different country and product trends EMEA • NA continuing to benefit from successful Surgical +3.3% execution and Life Sciences growth • Strong performance from LAC as a result of recen
Slide 12: Financial Results
HyFlex: cammex Alphalec’ MICR@®FLEX
Slide 13: Profit & Loss Summary
HALF YEAR RESULTS FY22 Profit & Loss Summary Growth Brands Continue Strong Performance +9% YoY HIGHLIGHTS SUMMARY ($m) FY21 H1¹ FY22 H1 % CC %² Sales 937.8 1,009.2 7.6% 7.6% • Organic sales growth of 7.5% after adjustment for Costs of Goods Sold (559.6) (683.8) 22.2% 25.2% Primus. Positive sales
Slide 14: Healthcare GBU Highlights
HALF YEAR RESULTS FY22 Healthcare GBU Highlights SUMMARY HIGHLIGHTS FY21 H1 FY22 H1 % CC % SALES PERFORMANCE Sales $549.7m $632.1m 15.0% 15.1% • Sales were $632.1m – organic growth of 14.8% (vs 37.3% in EBIT¹ $100.4m $63.7m (36.6%) (40.5%) FY21 H1) • Positive organic growth from all SBUs with sol
Slide 15: Industrial GBU Highlights
HALF YEAR RESULTS FY22 Industrial GBU Highlights SUMMARY HIGHLIGHTS FY21 H1 FY22 H1 % CC % SALES PERFORMANCE Sales $388.1m $377.1m (2.8%) (2.9%) • Sales were $377.1m – organic growth declined 2.9% (vs 7.0% EBIT $57.9m $56.3m (2.8%) (12.7%) in FY21 H1) • Positive organic growth from Mechanical was
Slide 16: Raw Material Cost Impact
HALF YEAR RESULTS FY22 Raw Material Cost Impact OUTSOURCED EXAM/SU COSTS REDUCE THROUGHOUT FIRST HALF • NRL costs have stabilised over the past 6 months, slightly down from June levels. However, NBR costs increased over this period with acrylonitrile prices remaining elevated and premiums still in p
Slide 17: Operating Cash Flow Temporarily Reduced
HALF YEAR RESULTS FY22 Operating Cash Flow Temporarily Reduced Inventories 16.5 Receivables 53.3 (40.0) Payables (109.8) (47.6) (11.4) FY22 146.3 (32.5) (10.7) H1 58.7 (26.2) (22.1) (0.9) (55.6) ($m) (22.5) (108.2) (7.1) EBITDA Working Cap Others Net Receipts Lease Net Capex Net Interest Taxes Op Ca
Slide 18: Strong Balance Sheet
HALF YEAR RESULTS FY22 Strong Balance Sheet ($m) FY21 H1 FY21 FY22 H1 KEY POINTS Fixed Assets 284.7 294.9 303.2 • Net Debt has increased to fund operating cash flow, dividends Intangibles 1,080.1 1,077.1 1,065.9 and purchase of treasury shares & share buyback. However, Right of Use Assets 61.7 61.1
Slide 19: FY22 Outlook
HyFlex” GAMMEX” Alphalec’ MICR@®FLEX’
Slide 20: FY22 EPS Guidance
HALF YEAR RESULTS FY22 FY22 EPS Guidance WHAT CHANGED SINCE AGM FY22 GUIDANCE LOOKING BEYOND FY22 • Since our market update at the AGM, • EPS guidance of 125¢ - 145¢ provided on 31 • Forecasting demand and pricing FY22 profit expectations have January 2022, is maintained today, and assumes: trends r
Slide 21: Q&A
04 Q&A 21
Slide 22: Appendix
GAMMEX AlphaTec: mic! lex.
Slide 23: Diversified Global Leader in Protection Solutions
HALF YEAR RESULTS FY22 Diversified Global Leader in Protection Solutions Wide breadth of innovative portfolio offering exposure to wide range and well-balanced industries Demand sensitive Demand sensitive Industry leading customer to economic cycle: ~50% sales to economic cycle: ~50% sales intimacy
Slide 24: Cloud Computing Changes on Reported Financials
HALF YEAR RESULTS FY22 Cloud Computing Changes on Reported Financials • In April 2021, IFRIC published its final agenda decision on Configuration or Customisation Costs in a Cloud Computing Arrangement (IAS 38 Intangible Assets) • Ansell’s accounting policy was to capitalise certain costs related to
Slide 25: FX – Revenue & EBIT Impact of FX Movements
HALF YEAR RESULTS FY22 FX – Revenue & EBIT Impact of FX Movements Change in average rates of major revenue and cost currencies Currency Impact Comment Revenue EBIT Strengthening of USD vs key cost currencies i.e. MYR and THB FY22 H1 vs FY21 H1 $(0.1)m $10.8m combined with favourable impact from decl
Slide 26: Constant Currency
HALF YEAR RESULTS FY22 Constant Currency CONSTANT CURRENCY ORGANIC CONSTANT CURRENCY • The presentation of constant currency information is designed to • Organic constant currency is constant currency information (as facilitate comparability of reported earnings by restating the prior described) aft
Slide 27: Ansell Fact Sheet
HALF YEAR RESULTS FY22 Ansell Fact Sheet KEY FIGURES • Booked Tax Losses at 31 December 2021: $22.6m (Australia $19.0m) • Unbooked Tax Losses at 31 December 2021: $15.0m (Tax Effected) (Australia $7.4m) • Unbooked Capital Losses at 31 December 2021: $57.1m • Interest Rate on Borrowings for FY22 H1:
Slide 28: Segment History – Continuing Businesses
HALF YEAR RESULTS FY22 Segment History – Continuing Businesses FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY19 H1 FY20 H1 FY21 H1 FY22 H1 Sales 716.5 668.5 654.8 655.9 715.5 703.7 719.1 790.7 342.2 358.4 388.1 377.1 Industrial EBIT 90.5 89.0 82.8 79.8 86.9 98.7 92.4 112.4 45.2 44.4 57.9 56.3 % Margin 1
Slide 29: Glossary
HALF YEAR RESULTS FY22 Glossary ACP – Average Cost Price FY22 – Financial Year 2022 MTI – Medical Treatment Injuries ASP – Average Sale Price FX – Foreign Exchange NBR – Nitrile Butadiene Rubber AUD – Australian Dollar GBP – Great British Pound NIBD – Net Interest Bearing Debt CAD – Canadian Dollar