Slide 1: Half Year Results 31st December 2012
For personal use only Ansell Limited Half Year Results 31st December 2012 Magnus Nicolin - Chief Executive Officer Rustom Jilla - 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 o
Slide 3: F'13 H1 – Agenda
F’13 H1 – Agenda For personal use only Business Overview - Magnus Nicolin Financial Report - Rustom Jilla Full Year Outlook - Magnus Nicolin US dollars used in all slides unless otherwise specified. 3
Slide 4: Results Summary
F’13 H1 – Results Summary For personal use only Statutory Result in Results in Operating Australian Dollars Currency – US Dollars F’12 H1 F’13 H1 F’12 H1 F’13 H1 A$M A$M US$M US$M Sales 594.1 624.2 611.5 648.1 EBIT 72.7 66.2 74.7 68.8 Profit Attributable (PA) 64.9 55.0 66.6 57.1 Earnings Per Share (
Slide 5: The Half in Brief
F’13 H1 – The Half in Brief For personal use only Key Positives Challenges 3 acquisitions made (Comasec, Significant time invested in executing Guangzhou, PSP). Integrations and integrating acquisitions proceeding as planned Overall organic sales flat (EMEA Continued growth in SKYN®, Synthetic impac
Slide 6: Sales & EBIT below expectations, FCF strong
F’13 H1 – Sales & EBIT below expectations, FCF strong For personal use only F’12 H1 F’13 H1 % Change Sales ($M) 611.5 648.1 + 6% EBIT ($M) 74.7 68.8 - 8% PA ($M) 66.6 57.1 - 14% FCF ($M) 6.3 48.1 +660% EPS (US¢) 50.6 43.7 - 14% 6
Slide 7: Acquisitions Integration proceeding as planned
F’13 H1 – Acquisitions Integration proceeding as planned For personal use only - Cross train sales forces on - Aligning organisations & policies products, pricing, etc. - Identified & retaining top talent - Integrate into the organisation - Some staff synergies captured HR Sales - Command & control
Slide 8: Strategic Sales & Marketing investments
F’13 H1 - $12M of strategic Sales & Marketing investments For personal use only Investment What GBU/Region Action and Expected benefit R&D and NPD IGBU, SMGBU, MGBU Incremental staff, equipment and laboratories to develop break-through technology, patents, trademarks and clear product differentiatio
Slide 9: Medical GBU Overview
F’13 H1 - Medical GBU Overview 25% of total Revenue and 24% of total Segment EBIT For personal use only $M F’12 H1 F’13 H1 Surgical: NRL 88.3 89.1 Powdered to PF conversion continued Synthetic 20.0 23.6 PI Surgical up 57% Exams: NRL 27.5 18.6 Continued rationalisation Synthetic 26.8 24.3 Prices redu
Slide 10: Medical GBU New Products
F’13 H1 – Medical GBU New Products For personal use only Gammex® Non Latex Antimicrobial Technology (AMTTM). A new polyisoprene surgical glove with AMTTM and surefit technology to eliminate cuff role down, micro textured palm for grip, soft PI film for sensitivity and optimal thumb position to reduc
Slide 11: Industrial GBU Overview
F’13 H1 - Industrial GBU Overview 41% of total Revenue and 52% of total Segment EBIT For personal use only $M F’12 H1 F’13 H1 General Purpose/Mechanical - HyFlex® 92.6 96.3 NA recovery from Fusion in F’12 - Other GP/M 57.7 54.9 EMEA down (automotive) Chemical/Liquid Handling - AlphaTec® 4.3 5.5 Stro
Slide 12: Industrial GBU New Products
F’13 H1 – Industrial GBU New Products For personal use only TouchNTuff® 83-500 - Sterile Polyisoprene (for the Life Sciences Vertical) Second skin feel without latex sensitisation Engineered to deliver all the performance of natural rubber latex without the risk of latex sensitisation TouchNTuff® 93
Slide 13: Specialty Markets GBU Overview
F’13 H1 - Specialty Markets GBU Overview 16% of total Revenue and 4% of total Segment EBIT For personal use only $M F’12 H1 F’13 H1 General Purpose 6.3 7.7 Volumes up, Construction / DIY Chemical/Liquid Handling – HHG Retail/Consumer 17.0 14.5 Pricing down with lower NRL – Industrial/Food 25.8 25.9
Slide 14: Specialty Markets GBU APS New Products
F’13 H1 – Specialty Markets GBU APS New Products For personal use only Viking® HAZTECH Trellchem® VPS FLASH - EN Target Vertical: First Target Vertical: Military & First Responders Responders Points of Differentiation Points of Differentiation • Unique PU material suitable • Certified to both US NFP
Slide 15: Sexual Wellness GBU Overview
F’13 H1 - Sexual Wellness GBU Overview 18% of total Revenue and 20% of total Segment EBIT For personal use only $M F’12 H1 F’13 H1 Condoms: Branded 82.0 87.8 SKYN® growth; EMEA, USA & Brazil Tenders/Private Label 16.1 14.9 Due to lower private label and Govt of India Lube/Devices/Other 11.2 12.1 a:m
Slide 16: SKYN Accelerated Growth Plan
F’13 H1 – SKYN® Accelerated Growth Plan For personal use only Global Integrated Communication Campaign to Drive Growth Highly targeted and geographically focused multi media programs High impact outdoor and special digital advertising, integrated with TV, video-on-demand, Facebook advertising, apps
Slide 17: Portfolio Performance vs. F'12 H1
F’13 H1 – Portfolio Performance vs. F’12 H1 For personal use only Sales $648.1M 6% Segment EBIT $72.4M -9% Med Ind SM SW Total Med Ind SM SW Total NA LAC EMEA AP Total > +5% From 0% to +5% < 0% 17
Slide 18: Financial Results
Financial Results For personal use only Rustom Jilla Chief Financial Officer 18
Slide 19: Ansell Share Price vs. ASX, NYSE, and FTSE
F’13 H1 – Ansell Share Price vs. ASX, NYSE, and FTSE For personal use only ANSELL LIMITED 55% S&P 500 INDEX S&P/ASX 200 45% FTSE 100 35% CAGR (31 Dec 2012) 25% Ansell 12.7% 15% S&P500 7.5% ASX200 (2.1%) 5% FTSE100 2.2% -5% -15% -25% Long term steady out-performance, interspersed with periods of shar
Slide 20: Sales and EBIT below expectations
F’13 H1 – Sales and EBIT below expectations For personal use only $M F’12 H1 F’13 H1 Sales 611.5 648.1 Organic Sales flat YoY, FX headwind GPADE 225.0 238.8 Margins steady despite FX drag SG&A (150.3) (170.0) $10.1m from acquisitions EBIT 74.7 68.8 Restructuring $2.4m (LY $2.9m) Net Interest (1.8) (
Slide 21: Sales and Profit Bridges
F’13 H1 – Sales and Profit Bridges For personal use only Sales $M 13.0 (18.0) 29.1 648.1 611.5 12.5 600 450 300 150 0 F'12 H1 Sales FX APS Comasec F'13 H1 Growth Rates Profit Attributable $M 70 66.6 0.4 (12.0) 4.0 3.3 (1.2) (2.4) 57.1 (1.6) 50 30 10 PA GPADE* S&M * R&D * G&A * M&A Taxes Interest/ PA
Slide 22: Raw Material Input Costs
F’13 H1 - Raw Material Input Costs For personal use only Key raw material costs are trending downward Still higher than F’11 / F’12 historical levels … but trending well Modest P&L benefits in F’13 H1; better flow through expected in H2 4.00 3.50 3.00 2.50 2.00 Cotton (Lb) 1.50 NR Latex (wkg) 1.00 N
Slide 23: Cost of Goods Sold
F’13 H1 - Cost of Goods Sold For personal use only COGS $380.3M Outsourced Raw Materials, Products, 41% 29% Key Raw Materials Outsourced Products #1 NRL #1 Knitted Dipped #2 Nitrile Latex #2 Nitrile Disposables #3 NRL Disposables #3 Engineered Yarns #4 Polyisoprene Freight, Duty, Factory Other, Over
Slide 24: Balance Sheet remains robust
F’13 H1 – Balance Sheet remains robust For personal use only $M F’12 H1 F’12 F’13 H1 Fixed Assets 149.9 151.2 182.1 Intangibles 369.7 391.2 481.3 Other Assets/Liabilities 2.1 (15.3) 11.7 Working Capital 275.4 252.6 305.8 Net Operating Assets 797.1 779.7 980.9 Net Interest Bearing Debt 108.0 56.1 202
Slide 25: Working Capital impacted by acquisitions
F’13 H1 – Working Capital impacted by acquisitions For personal use only $m 31 Dec 2011 30 June 2012 31 Dec 2012 Movement Inventory 239.0 213.4 256.2 42.8 Acquisitions 29.5 Debtors 173.3 175.9 201.4 25.5 Acquisitions 30.0 Creditors (136.9) (136.7) (151.8) (15.1) Acquisitions 10.7 Working 275.4 252.6
Slide 26: Free Cash Flow Strong
F’13 H1 – Free Cash Flow Strong For personal use only F'13 H1 68.8 12.6 (4.4) (19.2) (2.9) (6.8) 48.1 (28.5) (27.8) (137.9) (146.1) EBIT Depn Work CAPEX INT Taxes FCF Other DIV Share Acq./ Net /WO Cap B/Back/ Invest. Debt F'12 H1 Issues Mvt. 74.7 10.0 (46.1) (21.4) (2.1) (8.8) 6.3 (46.4) (25.9) (33.
Slide 27: New Share Buyback
F’13 H1 – New Share Buyback For personal use only Ansell remains committed to its strategy of creating value for its shareholders through organic and M&A growth and balanced capital management Ansell is currently focused on the integration of the 5 acquisitions that have been made in the last 10 mon
Slide 28: Financial Wrap-up
F’13 H1 – Financial Wrap-up For personal use only Successful closure of Comasec, Guangzhou (Chinese condom distributor) and PSP (infection prevention) acquisitions. The acquisition of Hércules was closed in January 2013 Organic sales growth has been impacted by EMEA economic weakness, distributor de
Slide 29: Full Year Outlook
Full Year Outlook For personal use only Magnus Nicolin Chief Executive Officer 29
Slide 30: H2 Outlook
F’13 – H2 Outlook For personal use only Economic conditions worldwide are stabilising but remain very unpredictable Sales are forecast to improve, driven by the usual seasonality, high NPD volumes, and by Distributors having finished H1’s significant inventory reduction Half on half SG&A growth is b
Slide 31: Guidance
F’13 – Guidance For personal use only Guidance Ansell reiterates previously communicated EPS guidance for F’13 of US$1.07 to US$1.12 (being mid-single to low double digit growth) This guidance includes; Relatively modest EPS accretion from acquisitions Net Deferred Tax Asset/Non Operational Tax Item