Ansell Limited · ASX:ANN
Ansell — H1 2005 Earnings Presentation
40 slides from Ansell's earnings presentation, Feb 9, 2005
Slide 1: Ansell Limited Half Year Results
Ansell Limited Half Year Results 31 December 2004 Doug Tough – Chief Executive Officer Rustom Jilla – Chief Financial Officer
Slide 2: Positioned To Meet F'05 Expectations
Positioned To Meet F’05 Expectations F’04 H1 $383.4 F’05 H1 $395.0 US$M Sales +3% Segment EBITA +10% $50.1 $55.2 Profit Attributable +35% $23.5 $31.7 EPS US18.1¢ +42% A24.7¢ +33% Dividend A7¢ + 17% Note: US dollars used in all slides unless otherwise specified
Slide 3: Occupational Business
Occupational Business 50% of Revenue and 54% of Segment EBITA US$M F’04 F’05 Sales HyFlex® 29.2 37.3 Growth in variants – Volumes up 28% Knitted 21.7 24.6 Higher “value add” focus. ASP up 15% Disposables 38.5 39.3 Vol up 12%, mix shift to vinyl synthetics All Other 93.7 97.7 Total Sales 183.1 198.9
Slide 4: Professional Business
Professional Business 34% of Revenue and 28% of Segment EBITA US$M F’04 F’05 Surgeons: Branded PF 31.4 35.5 Branded volumes (+14%); + double digits all regions Powdered 35.0 32.9 Conversion to PF / price competition Synthetic 6.8 7.4 Vol +5%; new products to renew growth Exam: Powder Free 33.4 33.3
Slide 5: Consumer Business
Consumer Business 16% of Revenue and 18% of Segment EBITA US$M F’04 F’05 Sales Condoms: Branded Retail 36.2 35.0 UK & Americas markets difficult Bid/Public Sector 17.2 13.5 Brazil—$4 Million HHG & Other 13.5 13.4 FHP sales lower Total Sales 66.9 61.9 -7% EBITA – Segment 12.4 10.3 -17% EBITA/Sales 18
Slide 6: Key Objectives
Key Objectives No. 1 to Achieve F’05 Forecast Maintain a Financially Sound Organisation To advance Ansell Growth Strategy for F’06 and Beyond F’04 Base Methodology:
Slide 7: Gaining Traction
Gaining Traction Occupational Professional Consumer Americas HyFlexRPromotion Gammex SureFit™ Launched New Program Sticky Band Glove Products – Warming Distributor Advisory Product Improvements Desensitizing ( VOC ) GPO Lifts Condoms Europe Cut Resistant Market Share Gains in “Play” sub brand HyFlex
Slide 8: Ansell Business Model
Ansell Business Model Superior Products HyFlexR range expansions Gammex SureFit™ Sheer Pleasure condoms Superior Services Value added customer solution selling Voice of customer Category management programs Enhance Customer Business
Slide 9: SafetyNet
SafetyNet™
Slide 10: SafetyNet - the system
Ansell <2 Oe es - the system
Slide 11: SafetyNet - the system
Ansell We ae the system
Slide 12: SafetyNet - the system
Ansell_ SafetyNet” — the system
Slide 13: SafetyNet - the system
SafetyNet” — the system
Slide 14: SafetyNet - the system
Ansell Wenner — the system
Slide 15: SafetyNet - the system
Ansell Wenner — the system
Slide 16: SafetyNet - the system
Ansell Wenner — the system
Slide 17: SafetyNet reporting capabilities
- the reporting capabilities
Slide 18: Walkthrough gathers worker requirements data
During the walkthrough is used to gather data about worker requirements at every workstation
Slide 19: Consolidation of key findings by department
Consolidation of key finding are detailed per department
Slide 20: Key findings presented to executive sponsor
enables key lines to be presented to the executive sponsor in a clear and concise manner
Slide 21: Regional, national and global requirements
can build and present company requirements on a regional, national and global basis
Slide 22: SafetyNet - the process
Ansell <2 © SafetyNet” - the process
Slide 23: SafetyNet
SafetyNet Consultation Solution optimization SafetyNet report built software
Slide 24: SafetyNet - the outputs
Ansell <2 SafetyNet” - the outputs
Slide 25: Presentation
Presentation
Slide 26: Enabling business intelligence
- enabling business intelligence
Slide 27: Enabling business intelligence warehouse
- enabling business intelligence warehouse Data SafetyNet Server Field Laptop Application Name Industry Classification Glove Used Consumption Rate Worker Numbers Application Requirements Current Glove Performance Glove selection Presentation Preparation Audit Validation Samples Shipped [Graphic Appe
Slide 28: Global system
Global system Consultative Solution Selling Synergies with Ansell’s global presence and blue chip target clients Aligned with customer objectives to rationalise & standardize products whilst ensuring best practice becomes standard practice Knowledge management system driving strategic direction e.g.
Slide 29: Ansell
Ansell
Slide 30: Financial Results
Rustom Jilla Chief Financial Officer Financial Results
Slide 31: Delivering Total Shareholder Return
Delivering Total Shareholder Return Higher Profits and strong cash generation Dividends steadily increased (up 17% vs. last year) All available franking returned to shareholders EPS and ROE more than doubled in last two years Share Price – 31 January 2005 F04 H1 TSR 11% F04 H2 TSR 21% F05 H1 TSR 17%
Slide 32: Before the financials
Before the financials Off Market Share Buy-Back completed on December 10, 2004 16.8 million (9.5%) shares purchased @ A$9.20 each Currently have 49,000 Shareholders holding 160.0 million shares Delay in Filing Form 20-F Situation—Ansell cannot file Form 20-F until SPT completes its A GAAP/ US GAAP r
Slide 33: Profit & Loss
F’05 H1 Profit & Loss F’04 F’05 Change % US$M Sales 383.4 395.0 +3 EBITA 44.2 50.9 +15 Sales Goodwill 7.6 7.6 Interest & Borrowings 6.0 2.9 Tax 6.3 8.2 Minorities 0.8 0.5 Profit Attributable 23.5 31.7 +35 Segment Gross Margin : Sales 40.6% 41.2% +60 pts EBITA EBITA : Sales 11.5% 12.9% +140 pts F’04
Slide 34: Balance Sheet
F’05 Balance Sheet US$M 30 June 04 31 Dec 04 Fixed Assets 156.9 155.2 Goodwill & Intangibles 202.1 196.5 Other Assets/Liabilities (27.4) (27.9) Investment in SPT 138.4 157.8 Working Capital 171.3 189.6 Net Operating Assets 641.3 671.2 Net Debt 82.2 161.3 Shareholders’ Funds 559.1 509.9 Gearing % (Ne
Slide 35: South Pacific Tyres
South Pacific Tyres SPT’s results continue to improve – but still below 2001 restructure plan expectations Current Net Book (Carrying) Value Investment Loan (including accrued interest) A$M 138 65 203 Carrying Value is based on future trading expectations and therefore not guaranteed. It will be rev
Slide 36: Cash Flow
F’05 H1 Cash Flow US$M F’04 F’05 Operating EBITDA 53.4 60.2 Working Capital 5.4 (18.3) Tax Paid (6.9) (3.5) Capital Expenditure (3.8) (5.3) Free Cash Flow 48.1 33.1 Interest Paid (Net) (7.7) (5.1) Share Buy Back (25.5) (120.8) Dividends (14.1) (9.1) Other 17.7 22.8 (Increase)/Reduction in Net Debt 1
Slide 37: Wrap Up
Doug Tough Chief Executive Officer Wrap Up
Slide 38: Management Agenda: Enhance Future Growth
Management Agenda Enhance Future Growth Internal External Other Strategy Sessions Management Board 6 significant internal initiatives underway – “organic” Board Deliberations on several alternative options Strong concensus support for growth and investment
Slide 39: Meeting Market Commitments
Meeting Market Commitments In 2002, we made a multi year Commitment to grow Segment EBITA 50% from F’01 – F’05: US$ Forecast Actual Growth F’02 >77 85 +10% F’03 >92 94 +11% F’04 >103 104 +11% F’05 115* *Forecast Confirmed, Company on track to achieve US$115M Segment EBITA
Slide 40: Ansell Limited
ANSELL LIMITED