Ansell Limited · ASX:ANN
Ansell — H1 F2004 Earnings Presentation
21 slides from Ansell's earnings presentation, Feb 11, 2004
Slide 1: Ansell Limited Half-Year Results to 31 December 2003
Ansell Limited Half-Year Results to 31 December 2003 Harry Boon - Chief Executive Officer
Slide 2: A Global Leader
A Global Leader Multi-year profit improvement plans and public commitments Low cost manufacturing base “Top 3” player in major markets with premier global brands nnn anansnnnanaggannnnnnn NNR Strong cash flows and focus on shareholder return
Slide 3: Ansell's Focus evolving
Ansell’s Focus evolving ..... > In F’03 the key goals were to « Implement Operation Full Potential (OFP) * Deliver US$ double digit EBITA growth « Recover from surgical glove supply disruptions ¢ Build a new senior management team « Emerge from the shadow of Pacific Dunlop > In F’04 this is progress
Slide 4: F'04 H1 results position us to meet full year expectations
F’04 H1 results position us to meet full year expectations $383.4 F°O3H1 F’04H1 $43.1 Seament EBITA ~ EPS US12.7¢ +16% y ; +1 19%" Profit Attributable ft +118% F’03 H1 F’04 H1 Note: US dollars used in all slides unless otherwise specified
Slide 5: Productivity and Sales have driven H1
Productivity and Sales have driven H1 ———————————— KT HA ae i Productivity Operational excellence... safety, supply chain and manufacturing Plant capacity upgrades enabling flexible, higher value | output Working Capital reductions US and Europe Sales and Distribution consolidations margins and cash
Slide 6: Ansell Healthcare Segment: Sales Summary
Ansell Healthcare Segment: Sales Summary Sales by Region Sales by Business $383.4 $383.4 Pi 50- 0- F'03 H1 F'04 Hi F'03H1 F'04Ht Americas @ Europe @ Asia @ Occupational H Professional & Consumer
Slide 7: Occupational Business
Occupational Business 48% of Revenue and 45% of Segment EBITA Ergonomic glove of choice Knitted . . Exit low margin business in USA & Europe Disposables : : Volumes up with mix shifting to synthetics All Other Total Sales 177.4 183.1 EBITA — Segment 15.0 22.7 Improved mix, manufacturing/sourcing sav
Slide 8: Professional Business: Surgeons Powder Free
Surgeons: Powder Free Powdered Synthetic Powder Free Powdered Synthetic Latex Other Total Sales 1 EBITA — Segment EBITA/Sales Strategy: Hospital Exam Gloves * Demand/Supply matched * Grow PF and Synthetics * Grow Alternate Care Professional Business 35% of Revenue and 30% of Segment EBITA F’03 28.3
Slide 9: Consumer Business: Condoms Branded Retail
Condoms: Branded Retail Bid/Public Sector HHG & Other Total Sales EBITA — Segment EBITA/Sales Strateg Consumer Business of Revenue and 25% of Segment EBITA F'03 33.2 14.9 12.9 61.0 12.2 20.0% AIP, US relaunch driving higher volumes Tenders, US Public Sector Americas strong Marketing investment, inve
Slide 10: Rustom Jilla, Chief Financial Officer
Rustom Jilla Chief Financial Officer
Slide 11: Australian listed, but managed as a US dollar company
al! We are Australian listed, but managed as a US dollar company sO 8 _ EE rs * 50% of sales and 70% of costs are in US$ or linked currencies. * 6% of sales are in A$; no hedge on accounting translation into A$. * USS results are translated to A$ solely for statutory reporting Share Price 7.50 In AU
Slide 12: Financial Highlights F'04 H1
Financial Highlights F’04 H1 Ansell Limited F’03 F’04 Change % EPS — A$ 10.4¢ 18.6¢ Up 79% EPS — US$ 58¢ 12.7¢ Up 119% Gross Margin % 34.9% 41.0% Up 610 basis points EBITA % 10.0% 11.5% Up 150 basis points ROA 10.5% 12.9% Up 240 basis points ROE 4.3% 8.2% Up 390 basis points Interest Cover 5.0X 8.8X
Slide 13: H1 Profit & Loss
H1 Profit & Loss Ansell Limited US$M F’03 F’04 Change % Sales 363.1 383.4 5.6% EBITA 36.4 44.2 21.4% Goodwill (7.3) (7.6) Interest & Borrowing Costs (8.2) (6.0) PBT 20.9 30.6 Tax (9.4) (6.3) Minorities (0.7) (0.8) Profit Attributable 10.8 23.5 117.6% Sales and margin benefits of weaker US$ offsettin
Slide 14: Non-Recurring
Non-Recurring Non-Recurring and PacDun Legacy items (net US$0.5M): * Non-cash US$5.3M write down re Massillon equipment. - Approved by the Board in 2001 but provision not made pending review of alternative uses for this US surgical equipment. - After conversion of exam lines in Colombo, and further
Slide 15: Balance Sheet
Balance Sheet 30 June 03 31 Dec 03 Fixed Assets 175.3 166.3 Goodwill & Intangibles 216.4 210.6 Other Assets/Liabilities (3.3) 3.3 Investment in SPT 134.0 149.2 Working Capital 164.8 159.4 Net Operating Assets 687.2 688.8 Net Debt (124.1) (105.7) Shareholders Funds 563.1 Working Capital Initiatives ¢
Slide 16: Cash Flow
Cash Flow F’03 F’04 Operating EBITDA 45.2 53.4 Working Capital Reduction 2.8 5.4 Tax Paid (0.9 (6.9) Capital Expenditure (4.2 (3.8) FREE CASH FLOW 42.9 48.1 Interest Paid (Net) (9.1 (7.7) Share Buy Back - (25.5) Dividends (0.9 (14.1) Other (2.3) 17.6 « REDUCTION IN NET DEBT 30.6 18.4 * Includes $5.2
Slide 17: South Pacific Tyres
South Pacific Tyres > Current Value A$M * Investment 138 * Loan (including accrued interest) _61 199 > Option Structure * Ansell has the right to put the business to Goodyear any time from August 2005 to August 2006 * Goodyear may call the business from Ansell any time from September 2006 to Februar
Slide 18: Harry Boon, Chief Executive Officer: Wrap Up
Harry Boon Chief Executive Officer Wrap Up
Slide 19: F'04 H1 Wrap-up
F’04 H1 Wrap-up * US$ EBITA up 21% (Segment up 16%) °* OFP integrated into business * Manufacturing Operations: - ongoing productivity gains - Europe Professional - commenced Six Sigma rollout > slow H1 but new - world class safety record contracts H2 Weak US$ favourable net FX impact Litigation cle
Slide 20: Meeting Market Commitments
Meeting Market Commitments > Healthcare Segment EBITA has been the focus: US$M Forecast Actual Growth F’02 >7TT 85 ¥ +10% F’03 >92 94 ¥ +11% F’05 * 115 * +50% EBITA vs. 2001 > Guidance now includes EBITA and bottom line F03 F'03 F’04 F’04 US$M H1 H2 H1 Full Year EBITA (Segment) 43.1 50.5 50.1 >103 E
Slide 21: Ansell Limited
Ansell Limited