Ansell Limited · ASX:ANN
Ansell — Shareholder Meeting (November 2008)
24 slides from Ansell's shareholder meeting presentation, Nov 7, 2008
Slide 1: Ansell Limited Annual General Meeting
For personal use only Ansell Limited Annual General Meeting 7th November, 2008 Doug Tough – Chief Executive Officer
Slide 2: Objectives
Objectives For personal use only Review our FY2008 Results Review key priorities and initiatives for FY2009 Outline how Ansell is positioned to perform in these challenging times 2
Slide 3: Fiscal Year 2008 (30 June 2008)
Fiscal Year 2008 (30 June 2008) For personal use only Strong sales results +14% – All 3 Regions – All 3 Business Divisions – Organically & via Acquisitions from previous year Generated strong free cash flow of $80m Exceeded market guidance on EPS – despite latex impacts and significant growth invest
Slide 4: F'08 – Ansell Continues to Deliver
F’08 – Ansell Continues to Deliver For personal use only REPORTED F’07 F’08 Sales ($M) 975.4 1,116 Salesup Sales up14% 14% EBIT ($M) 96.5 111.1 EBITup EBIT up15% 15% Profit Attributable ($M) 79.1 91.7 PAup PA up16% 16% EPS (US¢) 53.4 66.1 EPSup EPS up24% 24% Note - AUD EPS increased from 67.6¢ to 73
Slide 5: F'08 – Strong Results
F’08 – Strong Results For personal use only Positives Negatives h Sales growth excluding acquisitions h Latex prices were higher than last was 12% - with all regions up. year. h EBIT growth strong across most h Unimil was EPS dilutive; lower sales regions/businesses. & margins due to competition, im
Slide 6: Occupational Business
Occupational Business For personal use only 49% of Revenue; 64% of Profit FY07 FY08 Difference Sales ($m) 478.9 547.7 +14 Strategy – Focus on core brands – New products – New channels, programs – Guardian®/Solution selling – Emerging markets growth – Acquisition opportunities 6
Slide 7: Ansell Solutions Building Satisfaction
Ansell Solutions Building Satisfaction For personal use only Ansell’s Guardian® program uses our unique SafetyNet® software and Six Sigma Methodology/process: SafetyNet® software assesses 5 key areas, plots outcome and selects the best glove. Result: • Higher sales and customer loyalty. • Improved
Slide 8: HyFlex The Global Success Story
HyFlex® The Global Success Story For personal use only • Sales Volume and Value CAGRs +28% over 7 Rev Sales Growth Since Launch years 150 • Impressive F’08 growth in Mature markets (EMEA 140 130 +25%) 120 110 100 • Very encouraging progress in Emerging markets 90 80 (Eastern Europe +51% and Russia +
Slide 9: Hawkeye Acquisition
Hawkeye Acquisition For personal use only Basics: • Hawkeye business acquired at start of F’09 (July 1 2008) • Sales approximately $20M p.a., but variable. • Largest single glove supplier to US military. • Five small but flexible US factories. Opportunity: • New channel for Ansell. • New expertise u
Slide 10: Professional Business
Professional Business For personal use only 32% of revenue and 22% of profit FY07 FY08 Difference Sales ($m) 320.3 356.6 +11% Strategies – New products and programs – Pricing opportunities – Improve mix, reduce exams . . . Build on profit improvement in FY2008 – Account conversions to synthetics 10
Slide 11: Solution Selling – Cytostatic Medical Gloves
Solution Selling – Cytostatic Medical Gloves For personal use only The World Health Organisation believes between now and 2020, the cancer rate will rise 50% to about 15 million new cases a year worldwide. In many cases, these new patients will undergo treatment involving Chemotherapy which involves
Slide 12: Consumer Business
Consumer Business For personal use only 19% of revenue and 14% of profit FY07 FY08 Difference Sales ($m) 176.2 211.7 +20% Strategies – New products - PI condoms – Global brand focus – Turnaround Unimil and improve upon FY2008 profit results – New geographic opportunities 12
Slide 13: F'08 – Portfolio Performance Solid
F’08 – Portfolio Performance Solid For personal use only FY’08 SALES = $1,116M 14% FY’08 SEGMENT EBIT = $123M 17% Occupational Professional Consumer Occupational Professional Consumer Asia Pacific EMEA Americas > +5% From 0% to +5% < 0% AP: Solid results in Occupational and Professional; Consumer im
Slide 14: Performance of F'07's Acquisitions Mixed
Performance of F’07’s Acquisitions Mixed For personal use only Blowtex • Outstanding sales & profits in F08. • Offering broadened by drawing on Ansell’s extensive condom/lubricant range. • Expansion and growth in new regions of Brazil. • Significant Brazilian manufacturing capacity expansion underwa
Slide 15: F'08 – Strong Balance Sheet Maintained
F’08 – Strong Balance Sheet Maintained For personal use only Balance Sheet ($M) 30 June 07 30 June 08 Fixed Assets 163.0 161.3 Working Capital 212.4 224.2 Net Operating Assets 634.2 657.9 Net Interest Bearing Debt 114.5 133.3 Gearing % (NIBD:NIBD & Equity) 18.1 20.3 ROA % 16.6 17.2 ROE % 16.7 18.1
Slide 16: F'08 - Solid Base For The Future
F’08 - Solid Base For The Future For personal use only • Strong Financial Ratios: Net Debt: EBITDA 0.9X Interest Cover 15.1X Gearing 20.3X • Average Cost of Debt 4.6%. • No Material Debt Maturities Before April 2010. • Investment Grade Ratings from Moody’s and Standard & Poor’s. • Professional and C
Slide 17: Corporate Responsibility
Corporate Responsibility For personal use only Environment • Ansell and the environment ¾ Environmental Management System and policies based on international standards for environmental management ¾ 4 major manufacturing sites are certified to ISO 14001:2004 by independent and accredited auditors; 5
Slide 18: Reduction of GHG Emissions
Reduction of GHG Emissions For personal use only Current Progress ¾ Reduction of CO2 emissions achieved through current Green Productivity program • Green Productivity Program fully loaded [ Co-Generation, Biomass Fuel Conversion, Flue Gas Recovery, Heat Pipe Technology, Absorption Chillers ] 300 28
Slide 19: F'08 - Growth Strategy Unchanged
F’08 - Growth Strategy Unchanged For personal use only Methodology: Multi-faceted approach to growth 99 F’08 Base Channels Emerging JV Hawkeye Products Markets Alliances Full Pipeline Programs Overall perspective: We intend to continue to deliver sales and profit growth 19
Slide 20: A Global Leader Delivering Shareholder Value Based On A Solid Platform
A Global Leader Delivering Shareholder Value Based On A Solid Platform For personal use only World: Superior Surgical #2 Products Occupational #1 Diverse Condoms #2 Portfolio ROE / ROA Focus Global Reach Strong Balance Sheet Multi-cultural Balanced Disciplined management Capital Acquisition Manageme
Slide 21: Ansell Overall Sales %
Ansell Overall Sales % For personal use only Occupational Professional Consumer Total Americas 24 13 5 42 EMEA 21 13 7 41 Asia Pacific 4 6 7 17 Total 49 32 19 100 21
Slide 22: F'09 – Not Business As Usual
F’09 – Not Business As Usual For personal use only • F’08 was a very good year with; – Broad based organic sales growth. – Improvement in margins. – EPS commitments exceeded. – M&A progress with Hawkeye purchased on July 1st 2008 and others under review. • Cost Inflation is a concern for F’09 and th
Slide 23: F'09 – Guidance
F’09 – Guidance For personal use only • Background: – Global Economic outlook uncertain …. but Ansell’s diverse, broad portfolio provides benefits. – FX volatile … but hedging program helps protect US dollar EPS. – Inflation impacting input costs …. but Pricing opportunities being taken. – New fisca
Slide 24: For personal use only
For personal use only 24