Slide 1: F'20 Full Year Results
Ansell Limited F’20 Full Year Results Magnus Nicolin – Chief Executive Officer Zubair Javeed – Chief Financial Officer 25 August 2020
Slide 2: Disclaimer and Non-IFRS Measures
FULL YEAR RESULTS F'20 Disclaimer and Non-IFRS Measures The following presentation has been prepared by Ansell Limited (Ansell or the company) for information purposes only. The information contained in this presentation is a summary only and does not purport to be complete. It should be read in con
Slide 3: Ansell, The Safety Company
FULL YEAR RESULTS F'20 Ansell, The Safety Company LOST TIME INJURY (LTI) ANSELL SAFETY EXPERTISE ▪ Strong safety performance, recording injury rates amongst LTIs per 100 Employees per Annum lowest of global peers ▪ COVID-19 safety practices stringently applied to plants and offices worldwide, increa
Slide 4: Contents
01 Business Update Magnus Nicolin CONTENTS 02 Financial Results Zubair Javeed 03 F’21 Outlook Magnus Nicolin 04 Appendix
Slide 5: Business Update
Business Update 01 Magnus Nicolin
Slide 6: Statutory Results
FULL YEAR RESULTS F’20 Statutory Results (US $million)1,2,3 F’19 F'20 % CC4 % Sales 1,499.0 1,613.7 7.7% 9.3% EBIT 157.3 219.7 39.7% 61.2% Profit Attributable 111.7 158.7 42.1% 67.8% EPS (US¢) 82.6¢ 121.8¢ 47.5% 74.2% Dividend (US¢) 46.75¢ 50.00¢ 7.0% Delivering increased dividends as a result of
Slide 7: Effective Execution Delivering Strong Performance Despite COVID-19 Operational Challenges
FULL YEAR RESULTS F’20 Effective Execution Delivering Strong Performance Despite COVID-19 Operational Challenges SALES EPS¹ ROCE %¹ ² KEY POINTS • Delivered 7.6% Organic⁶ Growth. Exceptional $1,613.7m 121.8¢ 14.0% performance from HGBU +13.4%. IGBU delivered +7.7% Growth, +9.2% Growth Up +85bps vs F
Slide 8: Exceeded Financial Goals for all Metrics
FULL YEAR RESULTS F’20 Exceeded Financial Goals for all Metrics FINANCIAL GOALS F’20 RESULT KEY COMMENTS Exceeded target, strong performance entering F’20 H2, 3-5% ORGANIC GROWTH +7.6% Organic, further accelerated due to COVID-19 PER ANNUM +9.3% CC Full year contribution from Ringers & Digitcare GPA
Slide 9: Actions Taken in COVID-19 Environment
FULL YEAR RESULTS F’20 Actions Taken in COVID-19 Environment FOCUS ON SAFETY FOCUS ON MANUFACTURING FOCUS ON CUSTOMERS Ensuring Safety of our Employees Maximising Supply to Meet Demand Supporting Distributors & End Users • Temporary closure of offices worldwide • Focused on maintaining continuity of
Slide 10: COVID-19 Impacted Organic Growth by SBU Differently
FULL YEAR RESULTS F'20 COVID-19 Impacted Organic Growth by SBU Differently F’20 ORGANIC GROWTH BY SBU F'20 H1 F'20 H2 34.5% 22.4% 12.6% 9.5% 3.0% 1.4% 5.8% 2.5% 0.5% -4.6% Mechanical Chemical Exam/SU Surgical Life Science F’20 resulted in different growth rates for H1 vs H2 predominately due to the
Slide 11: Demand Was Particularly Elevated in NA & APAC
FULL YEAR RESULTS F'20 Demand Was Particularly Elevated in NA & APAC F’20 ORGANIC GROWTH BY REGION • COVID-19 associated increase in demand started in China in February 2020. This then expanded to EMEA in March 2020 and was shortly followed by NA/LAC EMEA NA +4.4% • EMEA & LAC lower growth rates par
Slide 12: Ansell Strategy Delivering Benefits
FULL YEAR RESULTS F’20 Ansell Strategy Delivering Benefits CONTINUED OPTIMISATION OF INVESTING IN MANUFACTURING TRUSTED BRANDS AND SALES PORTFOLIO CAPABILITY FORCE EXPANSION ▪ Deliberate shift of Ansell to focus on ▪ With around $500m in capital ▪ The core brands led by Hyflex, safety and securing #
Slide 13: Healthcare GBU – Outstanding Sales Momentum with Margin Growth
FULL YEAR RESULTS F’20 Healthcare GBU – Outstanding Sales Momentum with Margin Growth SUMMARY HIGHLIGHTS GROWTH CC GROWTH SALES F’19 F’20 % % • Organic growth +13.4% Sales $795.3m $894.6m 12.5% 13.8% • Emerging markets +16.1% (China, India, Latin America and CEE strong performers) EBIT¹ $115.3m $141
Slide 14: Healthcare GBU Highlights
FULL YEAR RESULTS F’20 Healthcare GBU Highlights EXAM & SINGLE USE STRONG PERFORMANCE WITH MARKET IMBALANCE TouchNTuff® 92-500 • Significant demand driving higher sales across both medical and industrial sectors • The market is experiencing extreme supply shortages – translating to large price incre
Slide 15: Industrial GBU – Modest Organic Growth and Transformation Benefits Offset by FX and COVID-19 Related Costs
FULL YEAR RESULTS F'20 Industrial GBU – Modest Organic Growth and Transformation Benefits Offset by FX and COVID-19 Related Costs SUMMARY HIGHLIGHTS GROWTH CC GROWTH SALES F’19 F’20 % % • Organic growth +1.3%, mixed SBU and regional performance Sales $703.7m $719.1m 2.2% 4.2% • Solid growth APAC +13
Slide 16: Industrial GBU Highlights
FULL YEAR RESULTS F’20 Industrial GBU Highlights CHEMICAL PROTECTIVE CLOTHING CATEGORY • Chemical Protective Clothing category grew +16.5%, driven by our AlphaTec multi-risk Chemical + Virus products (formerly Microguard & Microchem) • Demand increased predominately due to COVID-19, including Govern
Slide 17: CSR & Sustainability Highlights
FULL YEAR RESULTS F’20 CSR & Sustainability Highlights MODERN SLAVERY & SAFETY TCFD COMMUNITY • Continued to strengthen and further • Undertook climate change scenario • Hands-On with HyFlex® Day across develop our human rights policy analysis for our largest manufacturing six locations globally fra
Slide 18: Financial Results
02 Financial Results Zubair Javeed
Slide 19: Profit & Loss Summary
FULL YEAR RESULTS F'20 Profit & Loss Summary F’19 F'20 SUMMARY HIGHLIGHTS • F’20 Results are unadjusted. F’19 statutory results adjusted for Total Group Transformation1 Adjusted Total Group %2 $45.5m of Transformation costs Sales 1,499.0 - 1,499.0 1,613.7 7.7% • Interest cost $3.8m higher in F’20.
Slide 20: Profit & Loss Summary Growth Brands Continue Strong Performance
FULL YEAR RESULTS F'20 Profit & Loss Summary Growth F’19 Brands Continue1 Strong Performance +9% YoY SUMMARY HIGHLIGHTS F'20 CC % Adj Sales 1,499.0 1,613.7 9.3% • Organic growth of 7.6%. Unprecedented growth in HGBU (strong performance entering H2 further accelerated due to COVID-19). IGBU perform
Slide 21: Raw Material Cost Impact
FULL YEAR RESULTS F'20 Raw Material Cost Impact RAW MATERIAL COSTS IN F’20 WERE POSITIVELY IMPACTED BY LOWER NITRILE PRICES • The largest raw material category is Fibers & Engineered Yarns at 31%. Nitrile and Natural Rubber raw materials represent ~35% of raw material mix • F'20 saw lower NBR (Nitri
Slide 22: Capex Spend
FULL YEAR RESULTS F'20 Capex Spend CAPEX BY CATEGORY Operations Capex by SBU KEY POINTS In US Dollars Millions In US Dollars Millions 70 $64.8m ▪ F’20 capex of $64.8m, at lower end of $65-75m forecast. There were some temporary delays to 60 9.3 Industrial, shipments and installation as a result of C
Slide 23: Consistent Strong Cash Generation
FULL YEAR RESULTS F'20 Consistent Strong Cash Generation 400.0 14.6 (21.8) 34.3 (62.5) 300.0 (14.9) (34.2) F’20 200.0 (12.3) (61.8) 325.1 ($m) 276.2 (67.9) 100.0 191.7 (12.9) 0.0 36.8 EBITDA* Working Others Net Lease Net Capex Net Int Taxes Op Cash Acq/ Dividend Buyback FX Net Debt NIBD Mvt Cap Rece
Slide 24: Strong Balance Sheet Providing us the Opportunity to Further Advance our Strategy
FULL YEAR RESULTS F'20 Strong Balance Sheet Providing us the Opportunity to Further Advance our Strategy BALANCE SHEET¹ ($M) F’19 F'20 KEY POINTS Fixed Assets 229.8 251.5 Intangibles 1,082.6 1,065.9 • Strong Balance Sheet provides significant flexibility for further strategic expansion and investmen
Slide 25: F'21 Outlook
F’21 Outlook 03 Magnus Nicolin
Slide 26: F'21 EPS Guidance
FULL YEAR RESULTS F’20 F’21 EPS Guidance EPS RATIONALE F’21 GUIDANCE – EPS¢ ▪ Ansell has a balanced portfolio with strong brands and is well positioned to respond EPS in US¢ YoY CC 138.0 and adapt to impacts from COVID-19 which is expected to remain around during YoY +3-12% F’21 and potentially into
Slide 27: Virtual Capital Markets Day Reminder
Virtual Capital Markets Day Reminder The Ansell Executive Leadership Team look forward to discussing a number of areas including the following: ▪ Update on industry and competitive developments ▪ Strategic overview with update on key growth drivers in the near to medium term ▪ Key regional highlight
Slide 28: Appendix
HyFlex: GAMMEx AlphaTec’ MICR@®FLEX’
Slide 29: Ansell Group Performance Summary
FULL YEAR RESULTS F'20 Ansell Group Performance Summary Operating Cash Sales EBIT¹ Profit Attributable¹ EPS¹ ROCE¹ Flow¹ ² Reported 7.7% Margin improved Reported 5.2% Reported 9.2% Improved Cash Conversion CC 9.3% by +9bps CC 19.0% CC 23.6% by +85bps 117.7%² Organic 7.6% to 13.6% from 13.5% $1,613.7
Slide 30: Statutory Reconciliation for Items Previously Adjusted in F'19
FULL YEAR RESULTS F’20 Statutory Reconciliation for Items Previously Adjusted in F’19 Growth Brands Continue Strong Performance +9% YoY F’19 F’20 US$m Sales EBIT PA EPS Sales EBIT PA EPS Total Group 1,499.0 157.3 111.7 82.6¢ 1,613.7 219.7 158.7 121.8¢ Add Back - Transformation Costs 45.5 39.2 28.9¢
Slide 31: FX – Revenue & EBIT Impact of FX Movements
FULL YEAR RESULTS F'20 FX – Revenue & EBIT Impact of FX Movements Change in average rates of major revenue and cost currencies Currency Impact from Continuing Operations Comment Revenue Adjusted EBIT¹ Predominantly due to weakening Euro and GBP vs. USD and F'20 vs F’19 $(22.6)m $(14.8)m strengthenin
Slide 32: Constant Currency
FULL YEAR RESULTS F'20 Constant Currency CONSTANT CURRENCY ORGANIC CONSTANT CURRENCY ▪ The presentation of constant currency information is designed to facilitate ▪ Organic constant currency is constant currency information (as described comparability of reported earnings by restating the prior peri
Slide 33: Impact of AASB Leasing Standard
FULL YEAR RESULTS F'20 Impact of AASB 16 Leasing Standard COMMENTARY IMPACT ON INCOME STATEMENT (F’20) ▪ Ansell transitioned from AASB 117 to AASB 16 on 1 July 2019, not restating AASB 117 AASB 16 comparatives for practical reasons (as permitted). Operating Lease Expenses (19.9) 0.0 ▪ AASB 16 brings
Slide 34: Ansell Fact Sheet
FULL YEAR RESULTS F'20 Ansell Fact Sheet KEY FIGURES • Booked Tax Losses at 30 June 2020: $26.4m (Australia $19.6m) • Unbooked Tax Losses at 30 June 2020: $7.6m (Tax Effected) (Australia $nil) • Unbooked Capital Losses at 30 June 2020: $59.0m • Interest Rate on Borrowings for F’20: 3.3% • F'20 Divid
Slide 35: Segment History – Continuing Businesses
FULL YEAR RESULTS F'20 Segment History – Continuing Businesses F’14 F’15 F’16 F’17 F’18 F’19 F’20 Sales 716.5 668.5 654.8 655.9 715.5 703.7 719.1 Industrial EBIT 90.5 89.0 82.8 79.8 86.9 98.7 92.4 % Margin 12.6% 13.3% 12.6% 12.2% 12.1% 14.0% 12.8% Sales 661.0 759.6 698.0 718.6 774.3 795.3 894.6 Heal
Slide 36: Ansell
Ansell HyFlex: cAmMMex Alphatec’ MICR®FLEX’