Slide 1: Ansell FY22 Full Year Results
ANSELL FY22 FULL YEAR RESULTS 23 AUGUST 2022 1
Slide 2: Disclaimer and Non-IFRS Measures
FULL YEAR RESULTS FY22 Disclaimer and Non-IFRS Measures The following presentation has been prepared by Ansell Limited (Ansell or the Company) for information purposes only. The information contained in this presentation is a summary only and does not purport to be complete. It should be read in con
Slide 3: Contents
01 Business Update Neil Salmon 02 Financial Results Zubair Javeed CONTENTS 03 FY23 Outlook Neil Salmon 04 Q&A 3
Slide 4: Business Update
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Slide 5: Key Highlights
FULL YEAR RESULTS FY22 Key Highlights Delivered on FY22 Revised Improved Margins in HGBU Achieved 90% Cash Guidance Strong Surgical and Life Conversion for the year With Improved H2 Sciences growth with Up from 61% in FY21 performance vs H1 Exam/SU business stabilising FX a Headwind into FY23 Decisi
Slide 6: FY22 Statutory to Adjusted Reconciliation
FULL YEAR RESULTS FY22 FY22 Statutory to Adjusted Reconciliation Growth Brands Continue Strong Performance +9% YoY Exclusion of Russia Business Disruption ($m) Statutory and Exit Adjusted Sales 1,952.1 1,952.1 GPADE 564.2 564.2 EBIT 228.1 17.0 245.1 Profit Attributable 158.7 17.0 175.7 EPS (US¢) 125
Slide 7: Ansell Protects – Ensuring Safety Of All Those Who Work At Ansell
FULL YEAR RESULTS FY22 “Ansell Protects” – Ensuring Safety Of All Those Who Work At Ansell OUR PROGRESS OVER THE LAST YEAR COMMENTARY • Saw a continued reduction in lost time and medical Leading Indicators Injury Statistics injuries which demonstrates the progress Ansell has made to implement a lead
Slide 8: Continued Focus on Labour Rights
FULL YEAR RESULTS FY22 Continued Focus on Labour Rights KEY ACTIONS ANSELL TOOK DURING FY22 WHAT ARE WE SEEING FROM SUPPLIERS? • Established an internal Labour Rights Committee to review, test and • Carried out over 50 audits in FY22. Good challenge Ansell’s performance on labour rights and modern s
Slide 9: Our Environmental Commitments
FULL YEAR RESULTS FY22 Our Environmental Commitments • Put in place a net zero roadmap by setting targets to reduce Scope 1 and 2 emissions by 42% by 2030 and 100% by 2040, from FY20 baseline. Expected that credible offsets will make up less than 10% of emission reductions • Replaced Water Stewardsh
Slide 10: Delivered Against Our Revised Guidance With Improved H2 Performance
FULL YEAR RESULTS FY22 Delivered Against Our Revised Guidance With Improved H2 Performance WHAT DID WE SAY IN FEB-22? WHAT DID WE DELIVER? FY22 H2 vs FY22 H1 Growth Sales growth H2 vs H1 in Industrial 15.2% 8.1% and for HGBU’s Surgical and Life 2.2% Sciences businesses IGBU Surgical & HSS Life Scien
Slide 11: EPS Declined on COVID-19 Demand Normalisation, H2 Improved vs H1
FULL YEAR RESULTS FY22 EPS Declined on COVID-19 Demand Normalisation, H2 Improved vs H1 FY22 vs FY22 H2 vs ($m) FY21 FY22 FY21 FY22 H1 FY22 H2 FY22 H1 Sales 2,026.9 1,952.1 (3.7%) 1,009.2 942.9 (6.6%) GPADE¹ 723.6 564.2 (22.0%) 275.5 288.7 4.8% Margin 35.7% 28.9% (680bps) 27.3% 30.6% 330bps Adjusted
Slide 12: Performance by SBU Compared with Prior Year and Pre COVID-19
FULL YEAR RESULTS FY22 Performance by SBU Compared with Prior Year and Pre COVID-19 ORGANIC GROWTH¹ BY SBU HEALTHCARE GBU INDUSTRIAL GBU 15.1% 17.1% 16.8% 11.3% 8.5% 3.7% 1.9% 2.6% (11.1%) (11.6%) FY22 vs FY21 FY22 vs FY19 CAGR Exam/SU Surgical Life Sciences Mechanical Chemical • Differentiated in-h
Slide 13: Progress Against Our Strategic Priorities
FULL YEAR RESULTS FY22 Progress Against Our Strategic Priorities RECENT INNOVATION INCLUDING IMPROVING OUR BUSINESS INVESTING IN DIFFERENTIATED SUSTAINABILITY SOLUTIONS PROCESSES PRODUCTION 11-842 • Commercial Digital Transformation – • India greenfield expansion progressing Significant progress mad
Slide 14: Strong Emerging Market Performance
FULL YEAR RESULTS FY22 Strong Emerging Market Performance ORGANIC GROWTH BY COUNTRY • Emerging markets performance remains impressive predominately driven by LAC and APAC regions Russia -31.2% - Market share gains in LAC due to our ability to Other EMEA supply product through regulatory change in Me
Slide 15: Update on Sri Lanka
FULL YEAR RESULTS FY22 Update on Sri Lanka • Due to effective business continuity planning and the efforts of our local leadership team, our plants have been running efficiently with record output and higher than usual yields • Sri Lanka is currently facing its worst economic crisis since its indepe
Slide 16: Financial Results
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Slide 17: Profit & Loss Summary
FULL YEAR RESULTS FY22 Profit & Loss Summary SUMMARY HIGHLIGHTS ($m) FY21 FY22 % CC %¹ Sales 2,026.9 1,952.1 (3.7%) (2.0%) • Organic sales declined 2.2% after adjustment for Costs of Goods Sold (1,216.9) (1,286.3) 5.7% 9.7% Primus. Positive organic growth from Surgical, Life Sciences and Mechanic
Slide 18: Healthcare GBU Highlights
FULL YEAR RESULTS FY22 Healthcare GBU Highlights SUMMARY HIGHLIGHTS FY21 FY22 % CC % SALES PERFORMANCE Sales $1,236.2m $1,189.6m (3.8%) (2.1%) • Sales were $1,189.6m – organic growth declined 2.4% EBIT¹ $248.8m $150.7m (39.4%) (41.4%) (compared with 34.8% growth in FY21) • Surgical & HSS and Life
Slide 19: Industrial GBU Highlights
FULL YEAR RESULTS FY22 Industrial GBU Highlights SUMMARY HIGHLIGHTS FY21 FY22 % CC % SALES PERFORMANCE Sales $790.7m $762.5m (3.6%) (1.9%) • Sales were $762.5m – organic growth declined 1.9% EBIT $112.4m $107.0m (4.8%) (11.6%) (compared with 7.1% growth in FY21) • Positive organic growth from Mec
Slide 20: Raw Material Cost Impact
FULL YEAR RESULTS FY22 Raw Material Cost Impact OUTSOURCED EXAM/SU COSTS CONTINUE TO REDUCE BUT SEEING IMPACTS FROM INFLATION • Inflationary impacts on packaging materials, chemicals, yarn, and higher NRL costs seen in FY22 H2, most significantly in energy segment • Surcharges put in place for NBR l
Slide 21: Capex Spend
FULL YEAR RESULTS FY22 Capex Spend CAPEX BY CATEGORY¹ OPERATIONS CAPEX BY SBU 82.7 80 6.4 8.7 67.5 60.6 60 7.1 5.1 15.6 5.3 Industrial, (US$m) 4.9 40.7 19.4 Surgical, $18m 40 13.8 5.7 $25m 30% 7.1 52.0 42% 20 10.4 36.8 35.7 17.5 0 Exam/SU, FY19 FY20 FY21 FY22 $17m 28% Growth/Expansion Maintenance (i
Slide 22: Improved Operating Cash Flow Performance to $114m
FULL YEAR RESULTS FY22 Improved Operating Cash Flow Performance to $114m Cash Conversion 6.4 (36.4) 90.0% (23.0) FY22 (65.2) ($m) (19.8) (49.9) 301.9 (6.0) 271.9 (86.8) 114.0 (14.6) (13.8) (7.2) EBITDA Working Cap Others Net Receipts Lease Net Capex Net Interest Taxes Op Cash M&A Dividend Buyback FX
Slide 23: Strong Balance Sheet Including ~$635m Liquidity
FULL YEAR RESULTS FY22 Strong Balance Sheet Including ~$635m Liquidity KEY POINTS ($m) FY21 FY22 Fixed Assets 294.9 299.4 • Strong balance sheet provides significant flexibility for further Intangibles 1,077.1 1,049.4 strategic expansion, investment and capital management Right of Use Assets 61.1 57
Slide 24: FY23 Outlook
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Slide 25: Near Term Strategic Priorities
FULL YEAR RESULTS FY22 Near Term Strategic Priorities 1 2 3 STRATEGIES FOR LONG-TERM FOCUS ON OPERATIONAL POSITIONING FOR SHORTER GROWTH AND DIFFERENTIATION EFFECTIVENESS TERM MARKET TRENDS • Capacity expansion for differentiated • Optimising performance of recently • Price increases and cost reduct
Slide 26: FY23 EPS Guidance
FULL YEAR RESULTS FY22 FY23 EPS Guidance COMMENTARY FY23 GUIDANCE Our FY23 EPS is expected to be in the range of US115¢ - US135¢ and assumes the following: EPS in US$¢ • External environment remains supportive for continued demand of our products and is expected YoY CC 192.2 YoY CC to drive volume g
Slide 27: FY22 Sustainability Update Webcast
FULL YEAR RESULTS FY22 FY22 Sustainability Update Webcast Following the release of our Sustainability Report on 13 September 2022, we will be hosting a webcast to cover the following areas: • Social Compliance at Our Own Plants • Engagement with Suppliers on Labour Rights • Environmental Impact and
Slide 28: Q&A
04 Q&A 28
Slide 29: Appendix
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Slide 30: FX – Revenue & EBIT Impact of FX Movements
FULL YEAR RESULTS FY22 FX – Revenue & EBIT Impact of FX Movements Change in average rates of major revenue and cost currencies Currency Impact Comment Revenue EBIT Negative impact on revenue due to weakening of EUR, AUD, JPY and GBP against the USD. Impact to EBIT favourable despite negative impact
Slide 31: Constant Currency
FULL YEAR RESULTS FY22 Constant Currency CONSTANT CURRENCY ORGANIC CONSTANT CURRENCY • The presentation of constant currency information is designed to • Organic constant currency is constant currency information (as facilitate comparability of reported earnings by restating the prior described) aft
Slide 32: Ansell Fact Sheet
FULL YEAR RESULTS FY22 Ansell Fact Sheet KEY FIGURES • Booked Tax Losses at 30 June 2022: $20.5m (Australia $17.2m) • Unbooked Tax Losses at 30 June 2022: $28.8m (Tax Effected) (Australia $18.8m) • Unbooked Capital Losses at 30 June 2022: $54.2m • Interest Rate on Borrowings for FY22: 3.3% p.a. • FY
Slide 33: Segment History – Continuing Businesses
FULL YEAR RESULTS FY22 Segment History – Continuing Businesses FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Sales 716.5 668.5 654.8 655.9 715.5 703.7 719.1 790.7 762.5 Industrial EBIT 90.5 89.0 82.8 79.8 86.9 98.7 92.4 112.4 107.0 % Margin 12.6% 13.3% 12.6% 12.2% 12.1% 14.0% 12.8% 14.2% 14.0% Sales
Slide 34: Glossary
FULL YEAR RESULTS FY22 Glossary ACP – Average Cost Price EUR – Euro MTI – Medical Treatment Injuries ASP – Average Sale Price FY21 – Financial Year 2021 NBR – Nitrile Butadiene Rubber AUD – Australian Dollar FY22 – Financial Year 2022 NIBD – Net Interest Bearing Debt BOI – Board of Investment FX – F