Slide 1: Half Year Results to December 2015
For personal use only ANSELL LIMITED Half Year Results to December 2015 Magnus Nicolin – Chief Executive Officer Neil Salmon – Chief Financial Officer
Slide 2: Disclaimer
Disclaimer For personal use only The following presentation has been prepared by Ansell Limited for information purposes only. The presentation may contain forward looking statements or statements of opinion No representation or warranty is made regarding the accuracy, completeness or reliability of
Slide 3: Contents
Contents For personal use only 1. Business Overview Magnus Nicolin 2. GBU & Region Performance Magnus Nicolin 3. Financial Report Neil Salmon 4. F’16 Outlook Magnus Nicolin 3
Slide 4: 1. Business Overview
For personal use only 1. Business Overview Magnus Nicolin 4
Slide 5: Strong Free Cash Flow in Challenging Global Trading Environment
F’16 H1 Strong Free Cash Flow in Challenging Global Trading Environment For personal use only US Dollars Millions F’15 H1 F’16 H1 % CHANGE CC* % CHANGE Sales 847.3 784.8 - 7% 0% EBIT 118.3 99.3 - 16% -6% Profit Attributable 87.7 69.6 - 21% -10% EPS (US¢) 57.3 45.6 - 20% -10% Free Cash 67.2 66.0 - 2%
Slide 6: Summary
Summary For personal use only STRATEGIC PROGRESS CONTINUES H1 RESULTS SUMMARY • Solid results building new distributor partnerships • Sales revenue (at CC) level with last year in a more challenging economic environment Ø Including major win at largest US distributor • Continued success with our “gr
Slide 7: Long Term Strategic Focus Remains Intact
F’16 H1 Long Term Strategic Focus Remains Intact Making Progress on All Strategic Priorities For personal use only Continued Success Key to Improved 2H Perfomance ORGANIC GROWTH PROFITABILITY & CASHFLOW CAPITAL DEPLOYMENT Achieve growth above market Efficient manufacturing and High return capex and
Slide 8: Global Trading Environment F'16 H1
F’16 H1 Global Trading Environment F’16 H1 US manufacturing sector weakened in 4th quarter while Eurozone held steady, though still fragile. For personal use only Growth in developing economies varied widely. US INDICATORS SLOWING1 EUROZONE STEADY1 BRIC VOLATILITY1 GDP Growth GDP Growth 56.1 PMI 7.2
Slide 9: Business Sustainability Assisted By Well Diversified Portfolio
F’16 H1 Business Sustainability Assisted By Well Diversified Portfolio For personal use only ANSELL’S DIVERSE END MARKETS BALANCE ECONOMIC CYCLES • Ansell’s portfolio is generally well balanced • Though some verticals are more correlated, other drivers including regulation, compliance, shifts in end
Slide 10: Emerging Markets Performance Diverging
F’16 H1 Emerging Markets Performance Diverging Ansell has successfully penetrated Emerging Markets (EM) over the past 5 years. Although near term For personal use only macro environment is volatile, there continues to be opportunities for growth and expansion. LONG TERM F’16 H1 RESULTS1 STRATEGIC PR
Slide 11: Growth Brand Performance
F’16 H1 Growth Brand Performance For personal use only F’10-F’15 F16 F’10 F’15 CAGR2 H1 1 H1 COMMENTS Growth $M 236 518 10% 2% • Single Use & Industrial Growth brands up 2% on sales and 3-4% on SINGLE volume organically, while headwind from “all other” declining as USE & All Other $M 327 463 (5)% (3
Slide 12: Ansell's Strategic, Disciplined M&A
F’16 H1 Ansell’s Strategic, Disciplined M&A Ansell’s acquisitions are forecasted to deliver a combined Return On Invested Capital (ROIC1) For personal use only exceeding Weighted Average Cost of Capital (WACC3) in F’16 ACQUISITION PORTFOLIO RETURNS Financial Hurdles For Acquisitions: • ROIC1 Targete
Slide 13: Operations Strategy Continues to Deliver Benefits
F’16 H1 Operations Strategy Continues to Deliver Benefits Progress Being Made In Addressing Short Term Issues Successfully implementing our Operations Strategy while Addressing Short Term Challenges For personal use only CURRENT ISSUES ARE BEING THREE YEARS OF MAJOR SUPPLY CHAIN INVESTMENT HAS CREAT
Slide 14: 2. GBU & Region Performance
For personal use only 2. GBU & Region Performance Magnus Nicolin 14
Slide 15: Industrial GBU – New Product Sales Accelerating
F’16 H1 Industrial GBU – New Product Sales Accelerating For personal use only SUMMARY HIGHLIGHTS F’15 H1 F’16 H1 % CC* % SALES Sales $349.5m $329.9m -5.6% +3.8% • CC sales up 3.8%, organic sales level on Last Year • Challenging external conditions offset by strong new EBIT $44.4m $36.6m -17.6% -4.8%
Slide 16: Single Use GBU – Strong Profit Growth
F’16 H1 Single Use GBU – Strong Profit Growth For personal use only SUMMARY HIGHLIGHTS F’15 H1 F’16 H1 % CC* % SALES Sales $160.3m $149.3m -6.9% -2.7% • CC sales down 2.7%, but flat after excluding raw material related price reductions and business line exits EBIT $28.7m $31.2m 8.7% 18.6% • Continue
Slide 17: Medical GBU – Difficult Half, Now Improving
F’16 H1 Medical GBU – Difficult Half, Now Improving For personal use only SUMMARY HIGHLIGHTS F’15 H1 F’16 H1 % CC* % SALES Sales $228.8m $196.3m -14.2% -8.9% • Constant currency sales 9% lower • Weak emerging markets primary cause with Russia EBIT $34.9m $22.1m -36.7% -30.4% biggest factor • Exam sa
Slide 18: Sexual Wellness GBU – Best Half In Recent Years
F’16 H1 Sexual Wellness GBU – Best Half In Recent Years For personal use only SUMMARY HIGHLIGHTS F’15 H1 F’16 H1 % CC* % SALES Sales $108.7m $109.3 0.6% 10.0% • Constant currency revenue growth of 10%. • Strong emerging market results growing 17% led by EBIT $12.7m $14.2m 11.8% 22.4% China and India
Slide 19: 3. Financial Report
For personal use only 3. Financial Report Neil Salmon 19
Slide 20: Profit & Loss Summary
F’16 H1 Profit & Loss Summary For personal use only F’16 H1 PROFIT & LOSS (US$M) F’15 H1 F’16 H1 CC* % Foreign Exchange headwind $61m, Sales 847.3 784.8 0% Net Benefit of Acquisitions less Exits $11m Temporarily higher manufacturing costs $10m adverse GPADE 322.0 279.2 No material F’16 hedge gain /
Slide 21: Navigating a Challenging Environment
F’16 H1 Navigating a Challenging Environment Constant Currency Sales were flat as contribution from acquisitions and Sexual Wellness were offset For personal use only by portfolio exits and weakness in Russia & Brazil. Growth brands contributed 1% growth over a strong prior period and against lower
Slide 22: FX – Revenue and EBIT Impact of FX movements
F’16 H1 FX – Revenue and EBIT Impact of FX movements For personal use only Impact of change in average rates of major revenue and cost currencies H1’16 VS H1’15 CURRENCY IMPACT COMMENT Revenue EBIT Revenue decline primarily on weaker Euro. Weakening in Cost Currencies F’16 H1 vs $(61)m $(7)m providi
Slide 23: Balance Sheet Remains Healthy
F’16 H1 Balance Sheet Remains Healthy For personal use only BALANCE SHEET ($M) F’15 H1 F’15 F’16 H1 Fixed Assets 215.5 231.2 226.7 Intangibles 1,049.2 1,116.0 1,092.7 Other Assets/Liabilities (55.8) (91.8) (79.3) Working Capital 344.2 374.1 357.5 Net Operating Assets 1,554.1 1,629.5 1,597.6 Net Inte
Slide 24: Continued Strong Cash And Improved Cash Conversion
F’16 H1 PROFITABILITY & CASHFLOW Continued Strong Cash And Improved Cash Conversion For personal use only F’16 H1 ($M) COMMENTS $200 • Improved working capital driven $150 18.0 3.2 (28.0) by lower receivables and a $100 (11.1) (14.1) reduced inventory level. (1.3) (23.0) (31.2) (36.2) $50 99.3 66.0
Slide 25: 4. F'16 Outlook
For personal use only 4. F’16 Outlook Magnus Nicolin 25
Slide 26: Delivery On Key Initiatives To Support 2H Organic Growth
F’16 H1 Delivery On Key Initiatives To Support 2H Organic Growth Organic Growth Trend Improved Through 2nd Quarter of F’16 Despite An External Environment That For personal use only Deteriorated In Some Key Markets. Further Improvement In Growth Rate Expected in H2 ORGANIC REVENUE GROWTH TREND H2 EX
Slide 27: Outlook
F’16 H1 OUTLOOK EPS Guidance Reduced to $0.95 to $1.10 from $1.05 to $1.20 For personal use only F’16 EPS GUIDANCE RANGE REVISED ON • Generally weaker external economic indicators and a slow start to 2nd half have reduced our estimate of organic growth • Continued currency and economic volatility re
Slide 28: Appendix
For personal use only Appendix 28
Slide 29: Regional Performance
F’16 H1 APPENDIX 1 Regional Performance For personal use only F’16 H1 v F’15 H1 n > +5% n 0% to 5% n < 0% SALES US$784.8m -7% Segment EBIT US$104.1m -14% MED IND SU SW Total MED IND SU SW Total NA NA LAC LAC EMEA EMEA AP AP TOTAL TOTAL • APAC performance commendable driven by SW (China/ANZ) and Indu
Slide 30: Ansell Fact Sheet
F’16 H1 APPENDIX 2 Ansell Fact Sheet For personal use only KEY FIGURES • Booked Tax Losses at 31 December, 2015 $50.8m • Unbooked Tax Losses at 31 December, 2015 $13.0m (Aust. $1.7m) (Tax Effected) • Average Borrowing Cost at 31 December, 2015 3.18% • F’15 Interim Dividend US20¢ a share: F’15 Final
Slide 31: Segment History
F’16 H1 APPENDIX 3 Segment History For personal use only F’10 F’11 F’12 F’13 F’14 F’15 F’16 H1 GBU US$m US$m US$m US$m US$m US$m US$m Sales 650.2 716.5 668.5 329.9 Industrial EBIT For F’10-F’12, 89.8 93.6 92.7 36.6 % Margin Single Use & Industrial are 13.8% 13.1% 13.9% 11.1% Sales equivalent to the
Slide 32: Constant Currency
F’16 H1 APPENDIX 4 Constant Currency Constant Currency For personal use only The presentation of constant currency information is designed to facilitate comparability of reported earnings by restating the prior period's results at the exchange rates applied in determining the results for the current
Slide 33: For personal use only
For personal use only