Slide 1: Half Year Results to December 2014
For personal use only ANSELL LIMITED Half Year Results to December 2014 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: Agenda
Agenda For personal use only » Business Overview Magnus Nicolin » GBU & Region Magnus Nicolin Performance » Financial Report Neil Salmon » F’15 Outlook Magnus Nicolin
Slide 4: A Strong Half on Improving Growth and Acquisition Benefits
F’15 H1 A Strong Half on Improving Growth and Acquisition Benefits For personal use only US Dollars Millions F’14 H1 F’15 H1 % CHANGE Comment Strong sales growth from acquisitions & Sales 703.6 847.3 + 20% improving organic growth Growth, acquisition outperformance, and EBIT 82.7 118.3 + 43% restruc
Slide 5: Strong Sales and Margin Growth over Years, Driving EPS
F’15 H1 Strong Sales and Margin Growth over 2 Years, Driving EPS For personal use only $847 $704 $118 $648 $83 $69 57.3₵ 49.6₵ 43.7₵ 14.0% 11.8% 10.6% F13 H1 F14 H1 F15 H1 Sales ($m) EBIT ($m) EPS (₵) EBIT Margin (%) % Growth over F13 H1 HIGHLIGHTS Sales 31% • Company scaled up more than 30% over th
Slide 6: Re-Cap of Strategic Focus
F’15 H1 Re-Cap of Strategic Focus For personal use only Driving Growth, Profitability and Cash Flow Enabling Value driving Capital Deployment ORGANIC GROWTH PROFITABILITY & CASHFLOW CAPITAL DEPLOYMENT 1. Build Strong Global Brands 1. Leverage Scale 1. Improving Working rationalizing non core positio
Slide 7: Good Progress On Strategic Priorities
F’15 H1 Good Progress On Strategic Priorities For personal use only ORGANIC GROWTH PROFITABILITY & CASHFLOW CAPITAL DEPLOYMENT • Organic growth rate improving • Acquisition synergy delivery • Balance sheet strengthened driven by core brands continues ahead of business through cash generation cases •
Slide 8: Organic Growth: Optimizing the Portfolio for Sustainable Organic Growth
F’15 H1 Organic Growth Optimizing the Portfolio for Sustainable Organic Growth For personal use only Overall organic revenue growth at constant currency improved to 2.6% despite challenging global conditions on core brand growth of 7%. The business continued portfolio optimization activities to focu
Slide 9: Organic Growth: Key Drivers of Improved Organic Growth
F’15 H1 Organic Growth Key Drivers of Improved Organic Growth For personal use only All four components to organic growth strategy showing good progress CORE BRAND INNOVATION AND VERTICAL GROWTH BY GBU EMERGING MARKETS NEW PRODUCTS DEVELOPMENT • EM 7% • Accelerating growth • Body Protection • Indust
Slide 10: Organic Growth: Emerging Markets
F’15 H1 Organic Growth: Emerging Markets Solid Performance in a Mixed Environment For personal use only EMERGING MARKET SALES US$M Annual Performance since F’10 F’15 H1 Performance F’15 H1 Region Highlights2 Organic1 5.4% YoY MEA 33.5% CAGR 11.1% & 6.8% Organic, Constant Fx Mexico 21.7% CIS, CEE, 19
Slide 11: Organic Growth: Innovation & NPD
F’15 H1 Organic Growth : Innovation & NPD Strong New Product Launches For personal use only INDUSTRIAL GBU NEW PRODUCT SALES DEVELOPMENT NEW PRODUCT SALES ACCELERATING ■ New product sales generally follow a ramp pattern varying on product innovation and end market dynamics Key HyFlex® new styles dri
Slide 12: Profitability & Cashflow: Lean Manufacturing
F’15 H1 Profitability & Cashflow : Lean Manufacturing Increased Capex Delivering High Return Productivity Initiatives For personal use only MANUFACTURING EFFICIENCIES PRODUCTIVITY SAVINGS • Lean culture driving: Automation $m Savings rate doubled Standard Work F’11 to F’14 – Waste Elimination $40 pr
Slide 13: Agenda
Agenda For personal use only » Business Overview Magnus Nicolin » GBU & Region Magnus Nicolin Performance » Financial Report Neil Salmon » F’15 Outlook Magnus Nicolin
Slide 14: Broad Based EBIT Growth, NA Region Strongest Sales Growth
F’15 H1 Broad Based EBIT Growth, NA Region Strongest Sales Growth For personal use only F’15 H1 v F’14 H1 > +5% 0% to 5% < 0% SALES US$847.3m +20% Segment EBIT US$120.7m +47% MED IND SU SW Total MED IND SU SW Total NA NA LAC LAC EMEA EMEA AP AP TOTAL TOTAL • NA benefiting from BSSI acquisition and s
Slide 15: Industrial GBU
F’15 H1 Industrial GBU For personal use only SUMMARY HIGHLIGHTS F’14 H1 F’15 H1 % CHANGE SALES Sales $342.2m $349.5m 2.1% • North America achieving 7% organic constant EBIT $40.8m $44.4m 8.8% currency growth • Emerging market success in China, SE Asia, E % EBIT/Sales 11.9% 12.7% Europe, Mexico while
Slide 16: Single Use GBU
F’15 H1 Single Use GBU For personal use only SUMMARY HIGHLIGHTS F’14 H1 F’15 H1 % CHANGE SALES Sales $75.0m $160.3m 113.7% • Strong sales in both former BSSI and Ansell EBIT $6.9m $28.7m 315.9% businesses • Results in EMEA particularly encouraging given % EBIT/Sales 9.2% 17.9% weak economic conditio
Slide 17: Medical GBU
F’15 H1 Medical GBU For personal use only SUMMARY HIGHLIGHTS F’14 H1 F’15 H1 % CHANGE SALES Sales $178.4m $228.8m 28.3% • Organic constant currency growth of 2.5% with EBIT $22.2m $34.9m 57.2% emerging market growth contributing • Volume growth in synthetic surgical and exam % EBIT/Sales 12.4% 15.3%
Slide 18: Sexual Wellness GBU
F’15 H1 Sexual Wellness GBU For personal use only SUMMARY HIGHLIGHTS F’14 H1 F’15 H1 % CHANGE SALES Sales $108.0m $108.7m 0.7% • Organic constant currency growth of 2% achieved EBIT $12.1m $12.7m 5.0% through continued strong SKYN® growth and improving NRL performance % EBIT/Sales 11.2% 11.7% • NRL
Slide 19: Agenda
Agenda For personal use only » Business Overview Magnus Nicolin » GBU & Region Magnus Nicolin Performance » Financial Report Neil Salmon » F’15 Outlook Magnus Nicolin
Slide 20: Profit & Loss
F’15 H1 Profit & Loss For personal use only Acquisitions and improving organic growth continue to drive results PROFIT & LOSS (US$M) F’14 H1 F’15 H1 • Up 20%; acquisitions/exits 19.4%, FX (2.0%) Sales 703.6 847.3 • organic growth at constant FX 2.6%, GPADE 267.2 322.0 • GPADE margin above F’14 H1 •
Slide 21: Balance Sheet
F’15 H1 Balance Sheet For personal use only Remains Strong BALANCE SHEET ($M) F’14 H1 F’14 F’15 H1 Fixed Assets 195.6 206.1 215.5 Intangibles 545.8 1,067.7 1,049.2 Other Assets/Liabilities (6.9) (67.1) (55.1) Working Capital 327.2 348.2 344.2 Net Operating Assets 1,061.7 1,554.9 1,553.8 Net Interest
Slide 22: Capital Deployment
F’15 H1 Capital Deployment M&A and Capex Driving Above Target Returns For personal use only WORKING CAPITAL STRATEGIC EFFICIENCY HIGH RETURN CAPEX DIVIDEND GROWTH DISCIPLINED M&A • Capex higher on • Substantial Dividend • BSSI and Midas • Higher Inventory strong return Increase expected to achieve S
Slide 23: Profitability & Cashflow
F’15 H1 Profitability & Cashflow Strong EBIT Growth Supports Higher Capex and Improved FCF For personal use only F’15 $200 (4.1) H1 $150 17.3 (38.8) ($M) (10.5) (10.2) $100 (4.8) (26.8) 118.3 (29.3) $50 67.2 (6.0) (17.6) 5.1 $0 -$50 -$100 EBIT Depn Work CAPEX INT Taxes Restruct/ FCF Other DIV Acq/ N
Slide 24: Agenda
Agenda For personal use only » Business Overview Magnus Nicolin » GBU & Region Magnus Nicolin Performance » Financial Report Neil Salmon » F’15 Outlook Magnus Nicolin
Slide 25: Guidance
F’15 Guidance F’15 EPS Guidance Maintained at US118¢ to US126¢ up (7-15%*) For personal use only ORGANIC GROWTH PROFITABILITY & CASHFLOW 2-4% Organic Growth at constant FX EBIT % growth* expected in high 20s Driven by: Driven by: • Core brand growth from new product • Execution against strategic pri