Slide 1: Ansell Limited Full Year Results
For personal use only Ansell Limited Full Year Results 30th June, 2009 Doug Tough – Chief Executive Officer Rustom Jilla – Chief Financial Officer 0
Slide 2: F'09 Agenda
F’09 - AGENDA For personal use only Operational Overview - Doug Tough Financial Report - Rustom Jilla Strategy/Outlook - Doug Tough US dollars used in all slides unless otherwise specified 1
Slide 3: F'09 Overview
F’09 – Overview For personal use only Achieving commitments in a challenging environment - Sales impacted by global downturn and strong USD - Excellent Free Cash Flow performance - EPS achieved within guidance range of US65¢ - US70¢ - Steady Dividend growth continued Performance by half very differe
Slide 4: Earnings Satisfactory in Difficult Environment
F’09 – Earnings Satisfactory in Difficult Environment For personal use only Reported Underlying F’08 F’09 % F’08 F’09 % Sales ($M) 1,116.0 1,002.9 - 10 1,116.0 1,002.9 - 10 EBIT ($M) 111.1 107.3 -3 117.4 107.3 -9 PA ($M) 91.7 90.2 -2 90.8 83.3 -8 EPS (US¢) 66.1 66.3 - 65.4 61.2 -6 Dividends (A¢) 26.
Slide 5: A Testing Year
F’09 – A Testing Year For personal use only Positives Negatives Diversification benefited Ansell with Sales down year on year: counterbalancing business contributions - Occupational impacted by global recession - EMEA surgical volumes and AP sales and - Currency headwinds impacted sales and EBIT gro
Slide 6: Occupational Business Impacted by Global Downturn
F’09 – Occupational Business … Impacted by Global Downturn For personal use only Occupational accounts for 48% of Ansell’s Revenue and 47% of Segment EBIT $M F’08 F’09 HyFlex® 147.3 120.5 Volume decline 18% Global Other General Purpose 144.4 107.8 Recession Chemical & Liquid Handling 107.7 90.8 Impa
Slide 7: Occupational Diversification Stepped Up
F’09 - Occupational Diversification Stepped Up For personal use only ANSELL RESOURCES INDUSTRIES UNDER PRESSURE GROWTH OPPORTUNITIES/CHANNELS SHIFT Construction Automotive Mining General Industrial D.I.Y. (Menards) Military (Hawkeye) Accelerated promotion of innovative products in new channels 6
Slide 8: Professional Business Turning Around
F’09 – Professional Business … Turning Around For personal use only Professional accounts for 33% of Ansell’s Revenue and 35% of Segment EBIT $M F’08 F’09 Surgeons: Branded PF 98.8 95.6 Volume up 6% despite reduced elective surgeries Powdered 63.6 62.4 Synthetic 25.6 26.5 Volume up 20%. Mix and FX i
Slide 9: Consumer Business Mixed
F’09 – Consumer Business .. Mixed For personal use only Consumer accounts for 19% of Ansell’s Revenue and 18% of Segment EBIT $M F’08 F’09 Strong Performances from Jissbon & US Condoms: Branded 142.2 127.6 offset by Unimil & Russia Tenders/PL 28.7 21.3 Indian Tender & Russian Private Label HHG & Oth
Slide 10: Responsible Corporate Citizenship
Responsible Corporate Citizenship For personal use only Corporate Governance Environment Safety Ansell rated equal No. 1 in CO2 emissions across all Medical Treatment Injuries Australia for the second plants have been reduced by year running – see 2009 a total of 20% (2004 to 2008) *1.2 WHK Horwath
Slide 11: Ansell Leveraging Strong Portfolio
F’09 – Ansell Leveraging Strong Portfolio For personal use only Brands, Channels, Geographic Actions Add – Manix® to China, Australia – SKYN™ to other regions Expand – DIY, Military to other markets – Focus on growing new Occupational verticals Introduce – New products into Professional, Consumer an
Slide 12: Rustom Jilla, Chief Financial Officer: Financial Results
For personal use only Rustom Jilla Chief Financial Officer Financial Results 11
Slide 13: Financial Overview
F’09 – Financial Overview For personal use only Economic and Competitive Environment Strong USD an issue. Negative ~5% effect on sales, EBIT impacted as key revenue currencies devalued 11% - 16%, but cost currencies only 2% - 9% Addressing the H1 Occupational inventory overhang hurt H2 EBIT Cost rel
Slide 14: Reported and Underlying Results
F’09 – “Reported” and “Underlying” Results For personal use only F’08 F’09 Profit & Loss ($M) Reported Adjs Underlying Reported Adjs Underlying EBIT 111.1 6.3 117.4 107.3 - 107.3 Net Interest (9.2) - (9.2) (9.3) - (9.3) Taxes (7.5) (6.7) (14.2) (4.1) (6.9) (11.0) Minority Interest (2.7) (0.5) (3.2)
Slide 15: Profits Satisfactory in Difficult Environment
F’09 – Profits Satisfactory in Difficult Environment For personal use only F’08 F’09 Profit & Loss ($M) Reported Reported Sales 1,116.0 1,002.9 FX and Occupational negatives GPADE 384.0 338.6 SG&A 272.9 231.3 FX and cost control EBIT 111.1 107.3 Volumes, product mix Net Interest (9.2) (9.3) Taxes (7
Slide 16: Portfolio Performance Impacted by Global Economy and FX
F’09 – Portfolio Performance Impacted by Global Economy and FX For personal use only SALES SEGMENT EBIT F '09 v F'08 = -10% F '09 v F'08 = -7% Occupational Professional Consumer Occupational Professional Consumer Asia Pacific EMEA Americas > +5% From 0% to +5% < 0% AP: Occupational ANZ, China and SE
Slide 17: Ansell Downsizes Cost Structure in Current Environment
F’09 - Ansell Downsizes Cost Structure in Current Environment For personal use only F’09 F’09 F’10 F’10 F’11 F’11 • Closure of Redditch • Continued • Significant rationalisation of ongoing EPS • 420 manufacturing manufacturing positions eliminated benefit of >US 10¢ footprint from actions taken (~4%
Slide 18: Business Process Optimisation Project Launched
F’09 - Business Process Optimisation Project Launched For personal use only Efficiency & Marketplace Agility Customer Intimacy Effectiveness Standardization Speed to market Transparent Simplification Innovation networks Nimble- Flexible-Agile Best Practice Metrics Platform for Growth Peer Group comp
Slide 19: Solid Balance Sheet Strengthened
F’09 - Solid Balance Sheet Strengthened For personal use only Balance Sheet ($M) 30 June 08 30 June 09 Fixed Assets 161.3 142.7 Intangibles 302.0 286.5 FX Translation Impact Other Assets/Liabilities (29.6) (11.9) Working Capital 224.2 202.2 Lower Inventory & Debtors Net Operating Assets 657.9 619.5
Slide 20: Working Capital Contribution
F’09 – Working Capital Contribution For personal use only Receivables AR $M Occupational Consumer Professional 250 60 200 48 Consistent strong receivables performance through the year 150 36 with EMEA and Americas Days Sales 100 24 Outstanding leading the way. 50 12 Bad Debt write-offs immaterial 0
Slide 21: Cash Generation Excellent
F’09 – Cash Generation Excellent For personal use only Cash Flow ($M) F’08 F’09 EBIT 111.1 107.3 Depreciation & Asset Write-offs 30.3 23.2 $6.3M depn adjustment in F’08 Working Capital (11.8) 25.0 Focus on inventory and receivables Taxes Paid (19.1) (10.5) Lower profits in high tax countries Capital
Slide 22: A Tale of Two Halves with F'10 Implications
F’09 – A Tale of Two Halves …. with F’10 implications For personal use only F’09 Index Sales Expected F’10 Scenario Vs. F’08 H1 July – Oct 106 Decline vs. much higher comparative period Nov – Dec 88 Flat to modest growth H1 Total 100 Possible double digit decline H2 Jan – June 81 Solid growth vs. we
Slide 23: Financial Summary
F’09 – Financial Summary For personal use only F’09 results were significantly hurt by two major headwinds that show signs of abatement - The sharp decline in Occupational demand appears to have flattened - FX was a negative in F’09 …. F’10 likely to be better Ansell’s positive responses to challeng
Slide 24: Doug Tough, Chief Executive Officer: Wrap Up
For personal use only Doug Tough Chief Executive Officer Wrap Up 23
Slide 25: F'10 Outlook Varies by Business
F’10 - Outlook Varies by Business For personal use only Dec 2008 June 2009 Outlook Industrial Production Employment Occupational Gloves Medical Procedures Elective Surgeries Condom Sales 24
Slide 26: F'10 Will be Challenging
F’10 – Will be Challenging For personal use only F’10 Macro Expectations Industrial Production to remain sluggish into 2010 Consumer spending flat Increasing Global Unemployment into 2010 Global economic growth resuming in early 2010 Ansell’s diverse portfolio provides some protection against econom
Slide 27: F'10 Commercial Opportunities Abound
F’10 - Commercial Opportunities Abound For personal use only Ansell is a Global Market Leader Using Guardian® – Unique system to improve OH&S for customers Program while cementing and developing our relationship Conversions – Broad product portfolio able to cover customer needs and grow business Ver
Slide 28: F'10 Guidance
F’10 – Guidance For personal use only Guidance F’10 EPS is projected to be within a US56¢ - US62¢ range Guidance Clarification This guidance includes the absorption of significant restructuring costs No deferred tax adjustments or non-operational tax items are built into the guidance range F’10 is e
Slide 29: Pleasure is Evolving
“A Evolução do Prazer.” “Pleasure is Evolving” For personal use only 28