Slide 1: Full Year Results to June 2015
For personal use only ANSELL LIMITED Full Year Results to June 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 Magnus Nicolin 1. Business Overview Magnus Nicolin 2. GBU & Region Performance Neil Salmon 3. Financial Report Magnus Nicolin 4. F’16 Outlook
Slide 4: Business Overview
For personal use only SECTION 1 :: Magnus Nicolin Business Overview 3
Slide 5: A Year of Integration and Continued Performance
1. BUSINESS OVERVIEW F’15 A Year of Integration and Continued Performance For personal use only US Dollars used in all slides unless otherwise specified Sales Growth at F’14 F’15 constant Reported Underlying1 Reported % Change3 currency4 Sales ($M) 1,590 1,590 1,645 +3.5% +9.3% EBIT ($M) 84 207 2452
Slide 6: Ongoing Strong Financial Performance Continues
1. BUSINESS OVERVIEW F’15 Ongoing Strong Financial Performance Continues For personal use only $1,645 CAGR’S % 2008- $1,590 2015 HIGHLIGHTS $245 $1,373 • Acquisitions and Growth $1,255 $207 Sales 5.6% brands1 driving Sales $1,207 $1,116 Growth $1,086 $1,003 $171 $153 $137 • EBIT up by 2x since 2010,
Slide 7: FX – Sharp Decline In Revenue Currencies Reducing Sales in US$
1. BUSINESS OVERVIEW F’15 FX – Sharp Decline In Revenue Currencies Reducing Sales in US$ Reporting Currency For personal use only REVENUE CURRENCIES Financial Impact of Currency Moves Comparing F’14 Movement relative to USD to F’15 and 4Q’15 Variance in F'11 F'12 F'13 F'14 F'15 4Q'15 Annualized Impa
Slide 8: FX – Lower Cost Currencies Only Partially Offsetting Lower Revenue Currencies
1. BUSINESS OVERVIEW F’15 FX – Lower Cost Currencies Only Partially Offsetting Lower Revenue Currencies For personal use only COST CURRENCIES Financial Impact of Currency Moves Comparing F’14 Movement relative to USD to F’15 and 4Q’15 Variance in Annuaized Impact to F'11 F'12 F'13 F'14 F'15 4Q'15 We
Slide 9: FX – EBIT Impact of FX movements
1. BUSINESS OVERVIEW F’15 FX – EBIT Impact of FX movements For personal use only Change in average rates of major revenue and cost currencies Modelled Annualized Currency Impact Comment Revenue EBIT Actual currency impact on revenue $86m, of which $75m explained by F’15 vs F’14 ~ $75m ~ $30m average
Slide 10: Global Trading Environment F'15 H2
1. BUSINESS OVERVIEW F’15 Global Trading Environment F’15 H2 For personal use only During H2, the US economy unexpectedly weakened while the Eurozone area started to show signs of growth. Improving conditions are expected in most markets, however with continued volatility. US WEAK F’15 H2 IMPROVING
Slide 11: Strategies to Drive Ansell forward
1. BUSINESS OVERVIEW F’15 Strategies to Drive Ansell forward For personal use only Driving Growth, Profitability & Cash Flow and Enabling Value Creation Through Capital Deployment. ORGANIC GROWTH PROFITABILITY & CASHFLOW CAPITAL DEPLOYMENT Innovate & grow new Leverage core processes for High return
Slide 12: Ansell's Business Portfolio Significantly Strengthened
1. BUSINESS OVERVIEW F’15 Ansell’s Business Portfolio Significantly Strengthened: Driving Value Creation For personal use only People & Process Brands Innovation M&A Manufacturing • > 9,000 employees • Best Brands in • 3 new R&D centers • 10 acquisitions in 4 • Increased capex trained on lean Indust
Slide 13: Continued Growth in a Challenging Environment
1. BUSINESS OVERVIEW F’15 ORGANIC GROWTH Continued Growth in a Challenging Environment For personal use only Constant Currency Sales grew 9.3% on contribution from acquisitions and over 8% increase in sales of Growth Brands. Severe downturn in Russia & Brazil plus weaker results with mature and non-
Slide 14: Strategic Drivers of Long Term Growth Performing Well
1. BUSINESS OVERVIEW F’15 ORGANIC GROWTH Strategic Drivers of Long Term Growth Performing Well For personal use only Despite currency and geographic headwinds, the focused areas of investment that will drive long term growth and sustain Ansell’s competitive advantages performed well in F’15 EMERGING
Slide 15: New Product Sales Development
1. BUSINESS OVERVIEW F’15 New Product Sales Development For personal use only • New Product sales following ramps appropriate for each product’s category and market • Recent Industrial HyFlex® launches performing particularly well and solid acceleration in Medical Gammex® & Medi-Grip® new products N
Slide 16: Leading Global Market Shares and Balanced Portfolio Providing Growth Potential
1. BUSINESS OVERVIEW F’15 Leading Global Market Shares and Balanced Portfolio Providing Growth Potential For personal use only INDUSTRIAL SINGLE USE MEDICAL SEXUAL WELLNESS Sales $m 669 312 447 217 (% of Ansell) 41% 19% 27% 13% EBIT Margin1 13.9% 19.1% 15.8% 12.0% (EBIT % of 37% 24% 28% 11% Ansell)
Slide 17: GBU & Region Performance
For personal use only SECTION 2 :: Magnus Nicolin GBU & Region Performance 16
Slide 18: Industrial GBU
2. GBU & REGION PERFORMANCE F’15 Industrial GBU For personal use only SUMMARY HIGHLIGHTS F’14 F’15 % CHANGE SALES Sales $716.5m $668.5m -6.7% • Organic1 sales down 1% on N America H2 weakness, EBIT3 $93.6m $92.7m -1.0% very challenging Russian & Brazil economies and losses in the less differentiated
Slide 19: Industrial GBU Changing the Game
2. GBU & REGION PERFORMANCE F’15 Industrial GBU Changing the Game For personal use only 5 STRATEGIC & TRANSFORMATIVE ACQUISITIONS CONSOLIDATED GLOVE CATEGORY SHARE, ENABLED 8 NEXT GENERATION INNOVATION PRODUCTS AND EXPANDED TO NEW LAUNCHED SEGMENTS with POWERFUL FAMILY OF GROUND GROWTH BRANDS BREAKI
Slide 20: Single Use GBU
2. GBU & REGION PERFORMANCE F’15 Single Use GBU For personal use only SUMMARY HIGHLIGHTS F’14 F’15 % CHANGE SALES Sales $241.1m $312.4m +29.6% • 2.3% organic1, constant currency growth EBIT3 $32.2m $59.7m +85.4% • BSSI integration continues to progress smoothly positioning the business for accelerat
Slide 21: SU GBU Poised For Global Expansion
2. GBU & REGION PERFORMANCE F’15 SU GBU Poised For Global Expansion For personal use only GLOBAL CATEGORY LEADER 3X 6% larger than next closest competitor Average Growth ROW Global Growth F’15 F’14 Brand Sales +8% Automotive Aftermarket (79% of business) North America global growth 9 Microflex® Prod
Slide 22: Medical GBU
2. GBU & REGION PERFORMANCE F’15 Medical GBU For personal use only SUMMARY HIGHLIGHTS F’14 F’15 % CHANGE SALES Sales $419.9m $447.2m +6.5% • Sales up due to full year impact of acquisition; EBIT3 $57.5m $70.6m +22.8% Organically1, sales are slightly down due to H2 Russia decline and NA Latex Exam lo
Slide 23: Medical GBU Historic Innovation & New Segment Growth
2. GBU & REGION PERFORMANCE F’15 Medical GBU Historic Innovation & New Segment Growth For personal use only INNOVATIVE SAFETY SOLUTIONS FOR 83% Growth In Next Generation ® GAMMEX SENSOPRENE MAXIMUM PERFORMANCE AND PEACE OF MIND. ANSELL INTRODUCES NEW SMART PACK PACKAGING 15% STRONG HSS SEGMENT CAGR
Slide 24: Sexual Wellness GBU
2. GBU & REGION PERFORMANCE F’15 Sexual Wellness GBU For personal use only SUMMARY HIGHLIGHTS F’14 F’15 % CHANGE SALES Sales $212.7 $217.0 +2.0% • Organic1 constant currency growth of 6% driven by strong EBIT3 $25.0 $26.1m +4.4% growth in China (+14%), key campaigns in Europe (+8%) and India (+21%)
Slide 25: Sexual Wellness is back to healthy growth
2. GBU & REGION PERFORMANCE F’15 Sexual Wellness is back to healthy growth: Sales 6% up organic For personal use only SKYN® LUBRICANT LAUNCH #1 NON-LATEX CONDOM ACROSS THE IN KEY MARKETS WORLD GROWING BRAND AWARENESS & USAGE 10 MARKETS WHERE WE LAUNCHED SKYN® ELITE REVITALISING LATEX BRANDS GLOBALLY
Slide 26: Financial Report
For personal use only SECTION 3 :: Neil Salmon Financial Report 25
Slide 27: Profit & Loss – Acquisitions Assist Growth
3. FINANCIAL REPORT F’15 Profit & Loss – Acquisitions Assist Growth For personal use only PROFIT & LOSS (US$M) F’14 F’15 NOTES Sales 1,590.2 1,645.1 3.5% growth, 9.3% CC#, 0.6% organic at CC GPADE 593.8 629.3 GPADE Margin up 100bps to 38.3%, including $20m hedge gain SG&A (387.3) (384.0) Lower on cu
Slide 28: Other Key Financial Points
3. FINANCIAL REPORT F’15 Other Key Financial Points For personal use only • DTA/NOTI* benefit was $3.5m or 2.3¢ a share compared to 5.0¢ in F’14 • Excluding DTA/NOTI, Shah Alam Gain & Restructuring tax rate of 18.9% in line Underlying Tax Rate with F’14 underlying rate, and lower than expected on fa
Slide 29: Restructuring Program – With Positive F'16 Benefits
3. FINANCIAL REPORT F’15 Restructuring Program – With Positive F’16 Benefits For personal use only Restructuring Program Delivering Benefits, Supported By Additional Actions Announced In June 2015 In Line With Productivity Strategy TOTAL COST OF PROGRAM CASH COST F’15 COST INITIATIVES (US $M) (PRE T
Slide 30: Raw Material Costs
3. FINANCIAL REPORT F’15 Raw Material Costs For personal use only Natural Rubber Latex Continues to Reduce as a % of Raw Material Costs. SPEND MIX FOR RAW MATERIAL COMPONENTS COMPONENTS OF COGS F’15 COMPARED TO F’10 Depreciation 100% Factory Energy 2% Fibres & Fibres & Overhead 5% 90% Engineered Eng
Slide 31: Summary Balance Sheet
3. FINANCIAL REPORT F’15 Summary Balance Sheet For personal use only Remains Strong After Significant Acquisition Activity BALANCE SHEET ($M) F’14 F’15 Fixed Assets 206.1 231.3 Intangibles 1,067.7 1,116.0 Other Assets/Liabilities (67.1) (91.9) Working Capital 348.2 374.1 Net Operating Assets 1,554.9
Slide 32: Capital Expenditure
3. FINANCIAL REPORT F’15 Capital Expenditure For personal use only F’12 - F’15 Growth Investment Essential to Innovation Strategy. From F’15 Onwards Allocation Increasing to High Return Profit Improvement Initiatives. 80 Information Technology Several key projects implemented including 12.3 70 globa
Slide 33: Free Cashflow Continues To Support Growth Ambitions
3. FINANCIAL REPORT F’15 Free Cashflow Continues To Support Growth Ambitions For personal use only F15 $350 $300 35.4 (35.5) ($M) $250 (61.8) $200 (21.3) (22.7) (2.0) (31.1) $150 (59.7) $100 245.3 137.4 0.5 (95.6) $50 $0 (48.5) -$50 -$100 EBIT Depn Work CAPEX INT Taxes Other Cash & FCF Other DIV Sha
Slide 34: F'16 Outlook
For personal use only SECTION 4 :: Magnus Nicolin F’16 Outlook 33
Slide 35: F'16 Outlook – EPS Guidance
4. F’16 OUTLOOK F’16 OUTLOOK EPS Guidance For personal use only F’16 EPS expected to be in the range of $1.05 to $1.20, allowing for ongoing uncertainty in world economic conditions Core Business Improvement FX TAX • Moderately more favourable • Anticipate a lower hedge gain in • Australian off bala
Slide 36: For personal use only
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Slide 37: Acquisitions Assisting Performance
APPENDIX 1 F’15 Acquisitions Assisting Performance For personal use only FX impact most significant in EMEA, LAC and APAC also affected. NA up strongly with EBIT almost doubling on BSSI acquisition and success of Growth brands. F’15 v F’141 SALES $ 1,645.1m +3.5% EBIT $245.3 m +18.8% MED IND SU SW T