Slide 1: Full Year Results 30th June 2012
For personal use only Ansell Limited Full Year Results 30th June 2012 Magnus Nicolin – Chief Executive Officer Rustom Jilla – 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 o
Slide 3: F'12 – Results Summary
F’12 – Results Summary For personal use only Statutory Result in Results in Operating Australian Dollars Currency – US Dollars F’11 F’12 F’11 F’12 A$M A$M US$M US$M Sales 1,219.8 1,218.3 1,206.9 1,255.3 Earnings Before Interest & Taxes (EBIT) 138.8 149.4 136.9 153.2 Profit Attributable (PA) 122.7 13
Slide 4: Agenda
Agenda For personal use only Business Overview - Magnus Nicolin Financial Report - Rustom Jilla F’13 Outlook - Magnus Nicolin US dollars used in all slides unless otherwise specified 4
Slide 5: A Solid Year
F’12 – A Solid Year For personal use only F’11 F’12 Change Sales ($M) 1,206.9 1,255.3 + 4% EBIT ($M) 136.9 153.2 + 12% PA ($M) 121.7 133.0 + 9% EPS (¢) 91.6 101.4 + 11% 5
Slide 6: Overview
F’12 - Overview For personal use only Positives Negatives Sexual Wellness terrific performance Fusion ERP delays and adverse financial Industrial’s sales solid despite European impact economic slowdown and Fusion Medical GBU sales challenges Specialty Markets EBIT improving Higher raw material costs
Slide 7: Fusion ERP Implementation Update
F’12 - Fusion ERP Implementation Update For personal use only Ansell commenced “Fusion”, its multi year ERP transformation in F’12 with the first phase (North America and part of LAC) going live on July 5 2011 and running into systems design and interface issues, particularly with our largest (3rd p
Slide 8: New Product Launches taking off in F'13
F’12 - New Product Launches taking off in F’13 For personal use only 25 Number of New Product Launches 20 15 10 5 0 2010 2011 2012 2013 H1 H2 8
Slide 9: Emerging Markets expansion continues
F’12 – Emerging Markets expansion continues For personal use only Russia Other EMEA • Growth YOY +24% • Growth YOY +17% • 3% of global sales • 4% of global sales China (CIS, Turkey, • Growth YOY +39% Poland, CEE) • 4% of global sales India • Growth YOY +23% Latin America & • 2% of global sales Carib
Slide 10: Heightened Business Development Activity
F’12 - Heightened Business Development Activity For personal use only During the year there were: 3 Acquisitions - Sandel Medical Industries - Trelleborg Protective Products - Shanghai FTC Limited 2 Minority Stakes - Yulex Corporation - Lakeland Industries Inc 1 Partnership - Koreca Industry Co 1 Te
Slide 11: Comasec SAS acquisition announced
F’12 – Comasec SAS acquisition announced For personal use only Founded in 1948, Comasec manufactures and distributes industrial and consumer gloves (HHG, DIY, gardening gloves) and other protection equipment. With its HQ in Gennevilliers, France, and two manufacturing plants in Malaysia and Portugal
Slide 12: Industrial GBU Overview
F’12 - Industrial GBU Overview 40% of Revenue and 51% of Segment EBIT For personal use only $M F’11 F’12 General Purpose/Mechanical - HyFlex® 178.1 194.1 9% All Regions up. Strong H2 for NA & LAC - Other GP/M 117.7 116.0 -1% EMEA slowdown Chemical/Liquid Handling - AlphaTec® 6.2 8.9 43% Strong growt
Slide 13: Industrial GBU New Product Development
F’12 - Industrial GBU New Product Development For personal use only HyFlex® 11-518 Gloves First to market ultra light 18 gauge EN Level 3 cut resistance. Made from Dyneema yarn (on global exclusivity) and with thin polyurethane coating HyFlex® 11-644 Gloves Dynamic mix of lightweight high abrasion a
Slide 14: Specialty Markets GBU Overview
F’12 - Specialty Markets GBU Overview 14% of Revenue and 4% of Segment EBIT For personal use only $M F’11 F’12 General Purpose 14.4 14.5 1% Construction/DIY up, Food down ® Chemical/Liquid Handling – HHG Retail/Consumer 28.8 32.1 11% Prices up in both Consumer and Industrial – HHG Industrial 49.1 52
Slide 15: Specialty Markets GBU New Product Development
F’12 - Specialty Markets GBU New Product Development For personal use only Oil, Gas & Mining Vertical Military & First Responders Vertical ACTIVARMR® Flame Resistant ACTIVARMR® Flame Resistant Impact Gloves Utility Gloves First to market flame Military grade seamless knit resistant impact solution c
Slide 16: Medical GBU Overview
F’12 - Medical GBU Overview 28% of Revenue and 24% of Segment EBIT For personal use only $M F’11 F’12 Surgical: NRL 186.8 187.9 1% Lower NA and AP Vol offset by EMEA ASP Synthetic 38.2 44.8 17% Volumes up 29%; All regions contributed Exams: NRL 69.7 52.0 -25% Volumes down 38%; Margins up Synthetic 5
Slide 17: Medical GBU New Product Development
F’12 - Medical GBU New Product Development For personal use only Gammex® – Sensoprene® Gloves Best in Class surgical glove; thinnest PC blend on the market and is also accelerator and natural rubber latex free ReCap-It™ – Syringe Recapping Card New Sandel addition to its Sharps Injury Prevention lin
Slide 18: Sexual Wellness GBU Overview
F’12 - Sexual Wellness GBU Overview 18% of Revenue and 21% of Segment EBIT For personal use only $M F’11 F’12 ® ® Condoms: Branded 154.8 167.2 8% Line extensions, SKYN , Zero , Emerging Markets growth Tenders/Private 26.6 26.2 -2% Private Label up, Tenders down Label Lube/Devices/Other 19.2 23.9 24%
Slide 19: Sexual Wellness GBU New Product Development
F’12 - Sexual Wellness GBU New Product Development For personal use only 1. ™ – Essential Intimate 3. Ring Bottle Lubricant Range Freshness Products A new range of wash and intimate wipes, ph friendly formula, allergen free fragrance With 4 lubricants and 1 massage gel 2. LifeStyles® – Fun BumpsTM 4
Slide 20: Portfolio Performance
F’12 - Portfolio Performance For personal use only F’12 v. SALES $1,255m 4% EBIT $153m 12% F’11 Industrial SM Medical SW Industrial SM Medical SW NA LAC EMEA AP Total > +5% From 0% to +5% < 0% 20
Slide 21: F'12 - Results
For personal use only F’12 - Results Rustom Jilla Chief Financial Officer 21
Slide 22: Strong EPS/Dividend Growth and Cash Generation
F’12 – Strong EPS/Dividend Growth and Cash Generation For personal use only US¢ A¢ 100 35 EPS Dividends 80 28 60 21 40 14 EPS (US¢) 20 7 Dividends (A¢) 0 0 F'08 F'09 F'10 F'11 F'12 $M 120 Free Cash 100 Flow 80 60 40 20 0 F'08 F'09 F'10 F'11 F'12 Note: Fusion capex spend in F’10, F’11 and F’12 was $1
Slide 23: Profit & Loss
F’12 - Profit & Loss For personal use only Profit & Loss ($M) F’11 F’12 Sales 1,206.9 1,255.3 4% FX impact was a negative ~1% GPADE 419.8 457.9 Up 170bp to 36.5% SG&A (282.9) (304.7) Mostly in Sales & Marketing EBIT 136.9 153.2 12% Higher across all 4 GBUs Net Interest (4.0) (5.0) Higher NIBD Taxes
Slide 24: Profit Attributable Bridge
F’12 - Profit Attributable Bridge For personal use only 21.2 (20.6) $M 16.9 (1.2) (4.0) (1.0) 133.0 121.7 PA F'11 GPADE GPADE Sales & General & Taxes Interest/ OEI PA F'12 Volume / Mix All Other Marketing Admin. GPADE “Volume / Mix” - EMEA & AP (especially Emerging Markets) growth offset by NA Fusio
Slide 25: Key Raw Material Trends
F’12 – Key Raw Material Trends For personal use only 4.00 3.50 3.00 US (per wet kg) * 2.50 2.00 1.50 1.00 0.50 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 * NRL computed using Malaysian Rubber Board data and average FX rates 25
Slide 26: NRL remains the #1 material but far less important now
F’12 – NRL remains the #1 material but far less important now For personal use only 60000 A 26% reduction 45000 in NRL 30000 consumed (F’12 Outsourced 15000 H2 vs. F’10 H2) Manufactured 0 F'10 F'11 F'12 H2 H2 H2 100% 80% 44% 43% 41% NRL based And a sales mix products 60% shifting more to 40% NRL fre
Slide 27: Strong Balance Sheet
F’12 - Strong Balance Sheet For personal use only Balance Sheet ($m) F’11 F’12 Fixed Assets 150.4 151.2 Intangibles 361.8 391.2 Acquisitions & Fusion Other Assets/Liabilities (26.4) (15.3) DTAs $9.8m Working Capital 227.2 252.6 Acquisitions & Inventory Net Operating Assets 713.0 779.7 Net Interest B
Slide 28: Improved Working Capital in H2
F’12 – Improved Working Capital in H2 For personal use only $M 30 June 30 Dec 30 June Movement F’12 vs. F’11 2011 2011 2012 Inventory 197.9 239.0 213.4 15.5 Acquisitions 7.7 Debtors 176.8 173.3 175.9 (0.9) Acquisitions 5.4 Creditors (147.5) (136.9) (136.7) 10.8 Acquisitions 4.5 Working Capital 227.2
Slide 29: Cash Flow Bridge Charts
F’12 - Cash Flow Bridge Charts For personal use only US$m F'12 153.2 21.6 (16.8) (37.6) (5.4) (17.8) 97.2 (38.8) (46.6) (33.4) (44.8) (66.4) EBIT Depn Work CAPEX INT Taxes FCF Other DIV Share Acq. Net Debt /WO Cap Issues/ Mvt. B/Back F'11 136.9 19.1 (30.9) (44.5) (3.8) (14.3) 37.5 (40.6) 62.5 3.8 63
Slide 30: The Year's Acquisitions
F’12 – The Year’s Acquisitions For personal use only Sandel Medical Industries (1 July 2011 for ~$13.6m) • Rationale; To expand into perioperative safety solutions • F’12 results; Sales ~$11m, Slightly EPS Dilutive (only due to one-time costs) Shanghai FTC Limited (1 Aug 2011 for ~$0.5m) • Rationale
Slide 31: Closing Financial Summary
F’12 – Closing Financial Summary For personal use only Solid Results Despite lower sales growth; EBIT up 12%, EPS up 11% Free Cash Flow of $97.2m, returning to more typical cash generation levels Integration of F’12’s 3 acquisitions proceeding swiftly, and with total EPS as planned SG&A investments
Slide 32: F'13 - Outlook
For personal use only F’13 - Outlook Magnus Nicolin Chief Executive Officer 32
Slide 33: Guidance
F’12 - Guidance For personal use only Business Outlook Externally; Macro economic environment a challenge; sovereign debt issues, lower growth in Europe. Weak Euro impacting sales and, to a lesser extent, EBIT Raw Material Prices (especially NRL) may prove a strong tailwind Internally; NA and LAC re
Slide 34: ACTIVARMR Multipurpose Gloves
ACTIVARMR® - MULTIPURPOSE GLOVES For personal use only 34