Slide 1: Ansell Limited Full Year Results
For personal use only Ansell Limited Full Year Results 30th June, 2008 Doug Tough – Chief Executive Officer Rustom Jilla – Chief Financial Officer
Slide 2: Ansell F'08 Agenda
Ansell F’08 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
Slide 3: 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 4: 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 5: Occupational business – strong performance continues
F’08 - Occupational business … strong performance continues For personal use only $M F’07 F’08 HyFlex® 113.6 147.3 Volume growth 20%. Other General Purpose 134.4 144.4 Chemical & Liquid Handling 99.3 107.7 Category outperforming Market Single Use 94.9 110.1 TNT volumes up 14% All Other 36.7 38.2 Sal
Slide 6: Ansell Solutions Building Satisfaction
Ansell Solutions Building Satisfaction For personal use only Ansell’s GuardianSM program uses our unique SafetyNet® software and Six Sigma Methodology/process: Ansell OH & S qualified experts visit plants, observe each work station and question operators. SafetyNet® software assesses 5 key areas
Slide 7: Hawkeye Acquisition
Hawkeye Acquisition For personal use only Basics: • Hawkeye business acquired at start of F’09 (1 July 2008) via an asset purchase. Price was $10.8M plus possible earn out. • Sales approximately $20M p.a., but variable. • Largest single glove supplier to US military. • Five small but flexible US fac
Slide 8: Professional Business – Turning around
F’08 - Professional Business …. Turning around For personal use only $M F’07 F’08 Surgeons: Branded PF 83.8 98.8 Volume up 11% Powdered 60.8 63.6 Conversions to PF & synthetic Synthetic 19.8 25.6 Volume up 24%. New dip line providing capacity Other 3.6 2.6 Exam: PF 83.7 87.0 Volume down 8%, offset b
Slide 9: 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 10: Consumer Business – Mixed performance
F’08 - Consumer Business …. Mixed performance For personal use only $M F’07 F’08 Condoms: Branded 106.2 142.2 Strong Performance from Jissbon & Blowtex Tenders/PL 28.8 28.7 HHG & Other 41.2 40.8 Sales 176.2 211.7 20% Segment EBIT 23.5 17.5 26% ( -14% without Unimil, due to US) EBIT/Sales 13.3% 8.3%
Slide 11: Financial Results
For personal use only Rustom Jilla Chief Financial Officer Financial Results
Slide 12: Sustained Delivery of Commitments
F’08 – Sustained Delivery of Commitments For personal use only Four Year Market Commitment of a 50% increase in F’01 - F’05 Segment EBIT was delivered. EPS US(¢) Guidance Actual F’06 54 - 57 54.8 9 F’07 46 - 50 53.4 9 F’08 60 - 64 66.1 9 Market Commitments have been Met or Exceeded for 7 years … Ans
Slide 13: "Reported" and "Underlying" Results Consistent
F’08 – “Reported” and “Underlying” Results Consistent For personal use only The impacts of the H1 depreciation charge, booking of US Federal tax losses, tax provisions and application of the full Federal tax rate of 35% to US profits are shown below. F’07 F’07 F’07 F’08 F’08 F’08 Profit & Loss ($M)
Slide 14: P&L Strength at Top and Bottom Lines
F’08 - P&L Strength at Top and Bottom Lines For personal use only F’07 F’08 Profit & Loss ($M) Reported Reported Sales 975.4 1,116.0 Up 14%. (Blowtex & Unimil $37M) GPADE 309.7 384.0 Mix, Volumes and FX major drivers SG&A 213.2 272.9 EBIT 96.5 111.1 Up 15% ($117.4m excl depn charge) Net Interest 7.0
Slide 15: 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 hu
Slide 16: Restructuring and Investing to Grow
F’08 – Restructuring and Investing to Grow Continued For personal use only Ansell continued to restructure and invest to improve its competitive position: • Manufacturing; – Three plants were closed; in the US, India and Poland, costing (~$1M). – Estimated lives of Dip Line conversions & refurbishme
Slide 17: Performance of F'07's Acquisitions Mixed
Performance of F’07’s Acquisitions Mixed For personal use only Blowtex • Outstanding sales & profits – above business case. US1¢ EPS accretive in F08. • Offering broadened by drawing on Ansell’s extensive condom/lubricant range. • Expansion and growth in new regions of Brazil. • Strong management te
Slide 18: SG&A Investment Continued
F’08 - SG&A Investment Continued For personal use only SG&A ($M) F’07 F’08 Increase Growth Expenses: (Sales & Marketing, S&T/BD/S&L) +33.9 Support Expenses: (Corporate, IT, HR, Law, Finance) +25.8 Total SG&A 213.2 272.9 +59.7 SG&A/Sales 21.9% 24.5% • Significant investments in geographic expansion,
Slide 19: 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 Intangibles 280.8 302.0 Other Assets/Liabilities (22.0) (29.6) Working Capital 212.4 224.2 Net Operating Assets 634.2 657.9 Net Interest Bearing Debt 114.5 133.3 Shareholder
Slide 20: Cash Generation Robust
F’08 – Cash Generation Robust For personal use only Cash Flow $M F’07 F’08 EBIT 96.5 111.1 Depreciation & Asset Write-offs 22.8 30.3 Working Capital (12.9) (11.8) Despite $141M sales increase Taxes Paid (18.0) (19.1) Capital Expenditure (18.0) (21.4) ~90% of “normal” depreciation Interest Paid (Net)
Slide 21: 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 20.3% • 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 22: Wrap Up
For personal use only Doug Tough Chief Executive Officer Wrap Up
Slide 23: 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 23
Slide 24: 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 operating margins. – EPS commitments exceeded despite difficult operating environment with higher Latex and other input costs. – M&A progress with Hawkeye purchas
Slide 25: F'09 – Guidance
F’09 – Guidance For personal use only • Background: – Global Economic outlook uncertain …. but Ansell’s diverse, recession resistant portfolio provides benefits. – FX volatile … but hedging program protects US dollar EPS. – Inflation impacting input costs …. but Pricing opportunities emerging. – New
Slide 26: For personal use only
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