Ansell Limited · ASX:ANN
Ansell — H1 FY2010 Earnings Presentation
25 slides from Ansell's earnings presentation, Feb 17, 2010
Slide 1: Ansell Limited Half Year Results 31st December 2009
For personal use only Ansell Limited Half Year Results 31st December 2009 Doug Tough – Chief Executive Officer Rustom Jilla – Chief Financial Officer
Slide 2: Ansell F'10 H1 - Agenda
Ansell F’10 H1 - Agenda For personal use only Business Overview – Doug Tough Financial Report – Rustom Jilla F’10 Guidance – Doug Tough US dollars used in all slides unless otherwise specified |2
Slide 3: F'10 H1 – Solid Sales Recovery with profit growth
F’10 H1 – Solid Sales Recovery with profit growth For personal use only F’09 F’09 F’10 % Change H1 H2 H1 vs. F’09 H1 Sales ($M) 532.2 470.7 533.3 - EBIT ($M) 61.5 45.8 65.6 + 7% PA ($M) 54.1 36.1 54.3 - EPS (US¢) 39.8 26.5 40.3 + 1% |3
Slide 4: Much Better than Expected
F’10 H1 – Much Better than Expected For personal use only TAILWINDS HEADWINDS Sales above expectations - with Consumer retail sales Professional and Occupational performance mixed by country strong globally Delays in major condom tenders SKYN® polyisoprene condoms a Recent rise in latex costs will g
Slide 5: Occupational Business
F’10 H1 - Occupational Business 48% of Revenue and 47% of Segment EBIT For personal use only $M F’09 H1 F’09 H2 F’10 H1 HyFlex® 67.8 52.7 66.1 Other General Purpose 62.4 45.4 54.6 Demand growth in all 3 regions, Chemical/Liquid Handling 49.9 40.9 49.8 with good product mix Single Use 55.4 52.2 54.6
Slide 6: Occupational New Products
F’10 H1 - Occupational New Products For personal use only Hearing the Voice of the Customer Construction Mining D.I.Y. & Chemical Industry Menards Industries PowerFlex® 8013 AlphaTec® 58270 General Purpose Tar Sands Glove New Light Weight Performance Glove Synthetic Palm & Light & Medium Duty Finger
Slide 7: Professional Business
F’10 H1 - Professional Business 33% of Revenue and 38% of Segment EBIT For personal use only $M F’09 H1 F’09 H2 F’10 H1 Surgeons: PF 49.6 50.9 54.6 8% Vol growth, mainly EMEA and AP Powdered 30.7 29.3 29.3 Synthetic 13.2 13.3 16.2 10% Vol growth across all Regions Exam: PF 35.2 30.8 32.1 26% Vol dow
Slide 8: Professional Innovation
F’10 H1 – Professional Innovation For personal use only Gammex® Gammex® Cytostatic PF IsoDerm® PF HyGrip® Permeation Sensitive Sensitive Program Thin Polyisoprene A new NRL Gloves and Surgical glove for surgical glove Permeation contact extra sensitivity with a micro time chart, to protect during mi
Slide 9: Consumer Business
F’10 H1 - Consumer Business 19% of Revenue and 15% of Segment EBIT For personal use only $M F’09 F’09 H2 F’10 H1 H1 Condoms: Branded 69.5 58.1 71.4 Driven by strong growth in SKYN® Tenders/Private 11.8 9.5 6.4 Tender delays. Strong H2 Label expected HHG 11.4 11.0 12.4 5% volume growth Other 9.0 13.0
Slide 10: SKYN Global Roll-out
F’10 H1 – SKYN® Global Roll-out Commenced For personal use only Poland USA France UK Canada Hungary | 10
Slide 11: Portfolio Performance
F’10 H1 – Portfolio Performance For personal use only SALES SEGMENT EBIT 0.2% 4.8% F ‘10 v F'09 = F ‘10 v F’09 = Occupational Professional Consumer Occupational Professional Consumer Asia Pacific Europe Americas > +5% From 0% to +5% < 0% Asia Pacific: Occupational recovering from GFC. Professional s
Slide 12: Innovation; A Core Competency
F’10 H1 – Innovation; A Core Competency For personal use only Ansell currently has: 125 Patents covering 40 technologies in 14 countries 160 Pending Patents in 25 technologies in 16 countries Ground Breaking Technology Examples: Hydrasoft® – Designed to retain moisture and hydrate the skin Ansell Gr
Slide 13: Financial Results
For personal use only Financial Results Rustom Jilla Chief Financial Officer
Slide 14: Financial Overview
F’10 H1 – Financial Overview For personal use only External Business Environment Faster than anticipated rebound with Occupational glove customers both restocking and increasing usage. Commodity and energy costs have risen, posing a challenge to H2 margins. Ansell’s H1 In response to the GFC, Ansell
Slide 15: Reported Vs. Underlying
F’10 H1 – Reported Vs. Underlying For personal use only Ansell Practice For several years, Ansell has excluded significant one-offs (such as the sale of South Pacific Tyres) when presenting Underlying results to the market. This practice of identifying genuine one-offs will continue. Australian Defe
Slide 16: Results
F’10 H1 – Results For personal use only Profit & Loss ($M) F’09 F’09 F’10 H1 H2 H1 Sales 532.2 470.7 533.3 Strong result in tough environment GPADE 189.2 149.4 198.5 Sales mix, FX, input costs SG & A (127.7 (103.6 (132.9 Restructuring, FX, incentives ) ) ) EBIT 61.5 45.8 65.6 Interest & (4.4) (4.9)
Slide 17: Currency tailwinds
F’10 H1 – Currency tailwinds For personal use only Revenue Currencies F’10 H1 Cost Currencies F’10 H1 EUR CAD Other EUR 30% 6% GBP 16% 13% 5% THB 10% Other 10% USD 41% AUD MYR 8% 17% USD LKR 41% 3% * Local currencies translated into USD at average rates. * Local currencies translated into USD at ave
Slide 18: Commodity Cost Volatility continues
F’10 H1 - Commodity Cost Volatility continues … For personal use only MYR (per wet kg) Outsourced Labour 12% Source: Malaysian Rubber Board Products 7.00 32% Natural Rubber Latex 6.00 5.00 4.00 3.00 Factory Raw 2.00 Overheads Materials Other 5% 38% 13% 1.00 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '1
Slide 19: Improving Ansell's cost structure
F’10 H1 – Improving Ansell’s cost structure For personal use only F’09 F’10 F’10 F’11 H2 H1 H2 • Closure of • Continued • Rationalisation of • Year on year EPS Redditch rationalisation of 3 sites (with benefit of ~US9¢ manufacturing further 1% (down from prior • 4% reduction in footprint with reduct
Slide 20: Balance Sheet Stronger
F’10 H1 – Balance Sheet Stronger For personal use only Balance Sheet ($M) 31 Dec 08 30 June 09 31 Dec 09 Fixed Assets 149.2 142.7 139.5 Intangibles 268.4 286.5 297.6 Other Assets/Liabilities (1.0) (11.9) (15.7) Working Capital 239.9 202.2 195.5 Net Operating Assets 656.5 619.5 616.9 Net Interest Bea
Slide 21: Strong Cash Flow
F’10 H1 – Strong Cash Flow For personal use only Cash Flow $M F’09 H1 F’09 H2 F’10 H1 EBIT 61.5 45.8 65.6 Depreciation & Asset Write-offs 11.9 11.4 10.9 Working Capital (12.3) 37.2 6.7 Tax Paid (4.8) (5.7) (6.2) Capital Expenditure (9.3) (4.7) (5.3) Interest Paid (Net) (4.3) (5.2) (4.5) Free Cash Fl
Slide 22: Financial Summary
F’10 H1 – Financial Summary For personal use only Having weathered the GFC storm, with EPS growth in both F’09 and F’10 H1, Ansell has emerged stronger than ever with: Higher market shares in several key geographies or segments A robust balance sheet Improved cash generation Even tighter working cap
Slide 23: Guidance
For personal use only Guidance Doug Tough Chief Executive Officer
Slide 24: Full Year Guidance
F’10 H1 – Full Year Guidance For personal use only H2 Background; Sales – momentum forecast to continue Currencies – benefits expected to continue in H2 Costs – NR Latex costs much higher; actions being taken to mitigate impact Full Year Guidance; Upgraded to a range of US69¢ to US74¢ US¢ Original G
Slide 25: Ansell
Ansell Ansell aliiapen a enlia | 25