Slide 1: Ansell FY21 Full Year Results
ANSELL FY21 FULL YEAR RESULTS 24 AUGUST 2021 1
Slide 2: Disclaimer and Non-IFRS Measures
FULL YEAR RESULTS FY21 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: Contents
Business Update 01 Magnus Nicolin Financial Results 02 Zubair Javeed CONTENTS FY22 Outlook 03 Neil Salmon 04 Q&A 3
Slide 4: Business Update
Ansell HyFlex’ GAMMEx Alphalec’ mMICR@®FLEX
Slide 5: Record Sales and Earnings Performance
FULL YEAR RESULTS FY21 Record Sales and Earnings Performance Sales EBIT² Profit Attributable KEY POINTS • Strong Organic Growth¹ of +22.5%. HGBU $2,026.9m $338.0m $246.7m delivered +34.8% and IGBU delivered +7.1% +25.6% Growth +56.0% Growth +57.5% Growth • EBIT margins improved 330bps to 16.7% drive
Slide 6: Transformation Has Positioned Ansell Well for FY21 and Beyond
FULL YEAR RESULTS FY21 Transformation Has Positioned Ansell Well for FY21 and Beyond BUSINESS STRATEGY ANSELL TOTAL SHAREHOLDER RETURN VS INDEX • In 2010, we set out 7 key strategies and Ansell 500 they have continued to be our focus throughout the last 11 years CAGR: +15% – Focus on segments where
Slide 7: Over The Past Decade, We Have Transformed Ansell
FULL YEAR RESULTS FY21 Over The Past Decade, We Have Transformed Ansell KPI FY10 FY21 Comments Sales $1.1bn $2.0bn Expect to leverage expanded capacity further in FY22 Driver 1 - Core Brand sales $400m $1,650m 4X – From 37% to 81% of total sales, from 250 to 13 key brands Driver 2 - EM sales ($M) $1
Slide 8: Continued Advancements in Sustainability
FULL YEAR RESULTS FY21 Continued Advancements in Sustainability SAFETY LABOUR RIGHTS ENVIRONMENT • World Class Safety Performance: recording • Independent Third Party Audits: now • TCFD Alignment: corporate-level scenario LTI of <0.06 per 100 employees @ Jun-21 completed for all our manufacturing si
Slide 9: Business Update
FULL YEAR RESULTS FY21 Business Update • Flexibility and resilience of Ansell’s supply chain, together with industry leading safety protocols has ensured limited COVID-19 disruption to Ansell supply vs most competitors OPERATING • Inflation apparent on a number of cost inputs including labor & freig
Slide 10: Investments Key To FY21 Results & Enabling Growth In FY22 And Beyond
FULL YEAR RESULTS FY21 Investments Key To FY21 Results & Enabling Growth In FY22 And Beyond Single Use Gloves (Thailand) Chemical Body Protection (Sri Lanka) Chemical Gloves (Malaysia) Plans for seven highly efficient and automated Following expansion in China in FY20 H2, we Added two new state-of-t
Slide 11: Performance by Geography
FULL YEAR RESULTS FY21 Performance by Geography ORGANIC GROWTH BY REGION • Strong focus on existing customers during period of elevated demand – supported them through the dynamic pricing environment • Took advantage of our diversified product EMEA range – bundled Mechanical/Chemical with NA +23.6%
Slide 12: Performance by SBU
FULL YEAR RESULTS FY21 Performance by SBU ORGANIC GROWTH BY SBU FY20 H1 FY20 H2 FY21 H1 FY21 H2 47.5% 43.5% 34.5% 37.7% 32.3% 21.8% 19.6% 22.4% 9.2% 12.6% 9.5% 5.6% 5.8% 2.5% 6.9% 0.5% 3.0% 1.4% (1.0%) (4.6%) Mechanical Chemical Exam/SU Surgical & HSS Life Science Our diversified product portfolio h
Slide 13: Significant Changes to the Single Use Glove Market Landscape
FULL YEAR RESULTS FY21 Significant Changes to the Single Use Glove Market Landscape RAW MATERIAL COST INCREASING ANSELL RESPONSE – MATERIAL & PRICING • NBR costs have increased ~25% in the last 18 months as • New long term agreements signed to secure sufficient supply of NBR at demand for NBR materi
Slide 14: Not All Single Use Gloves Are The Same
FULL YEAR RESULTS FY21 Not All Single Use Gloves Are The Same New Market Entrants Multi-Layer • Long-term focused, with major Chemical Protection investment in innovation and R&D • Short term focused with goal of capitalising on pandemic demand • Broad portfolio with main focus on differentiated hea
Slide 15: Healthcare GBU Highlights
FULL YEAR RESULTS FY21 Healthcare GBU Highlights SUMMARY HIGHLIGHTS FY20 FY21 GROWTH CC GROWTH % % SALES PERFORMANCE (ORGANIC GROWTH) Sales $894.6m $1,236.2m 38.2% 34.8% • Strong performance across all SBU’s (Exam/SU +45.2%, Surgical & HSS +13.0% and Life Sciences +35.3%) EBIT¹ $141.8m $248.8m 75.5%
Slide 16: Industrial GBU Highlights
FULL YEAR RESULTS FY21 Industrial GBU Highlights SUMMARY HIGHLIGHTS FY20 FY21 GROWTH CC GROWTH % % SALES PERFORMANCE (ORGANIC GROWTH) Sales $719.1m $790.7m 10.0% 7.1% • Strong performance from Chemical +13.0% and Mechanical +4.0% EBIT $92.4m $112.4m 21.6% 20.5% • Portfolio saw strong growth from mos
Slide 17: Financial Results
HyFlex: cammex Alphalec’ MICR@®FLEX
Slide 18: Profit & Loss Summary
FULL YEAR RESULTS FY21 Profit & Loss Summary ($m) Growth Brands FY20 Continue FY21 % Strong PerformanceSUMMARY CC %² +9% YoYHIGHLIGHTS RESTATED¹ 1,613.7 2,026.9 25.6% 22.5% • Strong organic growth with successful execution of pricing Sales initiatives to pass through increased costs. Volume grow
Slide 19: Impact of Cloud Computing Accounting Policy Change
FULL YEAR RESULTS FY21 Impact of Cloud Computing Accounting Policy Change OVERVIEW • Ansell’s accounting policy has historically been to capitalise and then amortise certain costs related to cloud computing arrangements as an intangible asset • However, as a result of the IFRIC agenda decision¹, the
Slide 20: Raw Material Cost Impact
FULL YEAR RESULTS FY21 Raw Material Cost Impact UNPRECEDENTED INCREASES IN OUTSOURCED EXAM/SU COSTS • Nitrile and NRL costs gradually increased during FY21 due to availability constraints but look to be stabilising • Outsourced cost increased significantly throughout FY21 but this has now stablised
Slide 21: Capex Spend
FULL YEAR RESULTS FY21 Capex Spend CAPEX BY CATEGORY¹ OPERATIONS CAPEX BY SBU 90 82.7 80 6.4 70 8.7 60.6 Single 60 5.1 15.6 Use, (US$m) 50 4.9 $23m 40.7 Industrial, 40 13.8 30% $34m 5.7 30 7.1 45% 10.4 52.0 20 36.8 Exam/SU, 10 17.5 $19m 0 25% FY19 FY20 FY21 Growth/Expansion Maintenance Profit Improv
Slide 22: Cash Used To Reinvest For Additional Growth
FULL YEAR RESULTS FY21 Cash Used To Reinvest For Additional Growth (244.2) 90.0 (22.5) (82.7) FY21 394.0 (18.4) (67.0) ($m) 239.8 (2.0) (77.3) 49.2 (14.3) (57.9) (102.3) EBITDA Working Cap Others Net Receipts Lease Net Capex Net Int Taxes Op Cash Acq/ Dividend Buyback FX Net Debt NIBD Mvt Payments F
Slide 23: Strong Balance Sheet
FULL YEAR RESULTS FY21 Strong Balance Sheet ($m) FY20 FY21 KEY POINTS RESTATED¹ Fixed Assets 251.5 294.9 • Solid balance sheet provides significant flexibility for further strategic expansion and investment Intangibles 1,054.9 1,077.1 • Strong liquidity with ~$464m of cash and committed undrawn bank
Slide 24: FY2022 Outlook
HyFlex” GAMMEX” Alphalec’ MICR@®FLEX’
Slide 25: Future Focus for Ansell
FULL YEAR RESULTS FY21 Future Focus for Ansell BUILDING ON ESTABLISHED LEVERAGING INVESTMENTS ACCELERATING FUTURE GROWTH STRATEGIES IN OUR SBUs CREATING VALUE FOR ALL STAKEHOLDERS Continued investment in Surgical, LifeSciences, Mechanical Opportunity to refine our mission - "Ansell Protects" differe
Slide 26: FY22 EPS Guidance
FULL YEAR RESULTS FY21 FY22 EPS Guidance COMMENTARY FY22 GUIDANCE – EPS¢ Demand EPS in US¢ • Ansell has a diversified portfolio supplying a variety of end markets and geographies YoY • Expect to see continued demand for Mechanical, Surgical, Life Sciences CC products and our internally manufactured
Slide 27: Q&A
04 Q&A 27
Slide 28: Appendix
GAMMEX AlphaTec: mic! lex.
Slide 29: Reconciliation of FY20 Restatement Due to Cloud Computing Changes
FULL YEAR RESULTS FY21 Reconciliation of FY20 Restatement Due to Cloud Computing Changes • In April 2021, IFRIC published its final agenda decision on Configuration or Customisation Costs in a Cloud Computing Arrangement (IAS 38 Intangible Assets) • Ansell’s accounting policy has historically been t
Slide 30: FX – Revenue & EBIT Impact of FX Movements
FULL YEAR RESULTS FY21 FX – Revenue & EBIT Impact of FX Movements Change in average rates of major revenue and cost currencies Currency Impact Comment Revenue EBIT Improved EUR, GBP, AUD and CAD vs. USD (revenue currencies) FY21 vs FY20 $41.4m $14.6m part offset by strengthening MYR vs USD (cost cur
Slide 31: Constant Currency
FULL YEAR RESULTS FY21 Constant Currency CONSTANT CURRENCY ORGANIC CONSTANT CURRENCY • The presentation of constant currency information is designed to • Organic constant currency is constant currency information (as facilitate comparability of reported earnings by restating the prior described) aft
Slide 32: Ansell Fact Sheet
FULL YEAR RESULTS FY21 Ansell Fact Sheet KEY FIGURES • Booked Tax Losses at 30 June 2021: $22.5m (Australia $18.8m) • Unbooked Tax Losses at 30 June 2021: $14.0m (Tax Effected) (Australia $7.6m) • Unbooked Capital Losses at 30 June 2021: $59.2m • Interest Rate on Borrowings for FY21: 3.1% p.a. • FY2
Slide 33: Segment History – Continuing Businesses
FULL YEAR RESULTS FY21 Segment History – Continuing Businesses FY14 FY15 FY16 FY17 FY18 FY19 FY20 Restated FY21 Sales 716.5 668.5 654.8 655.9 715.5 703.7 719.1 790.7 Industrial EBIT 90.5 89.0 82.8 79.8 86.9 98.7 92.4 112.4 % Margin 12.6% 13.3% 12.6% 12.2% 12.1% 14.0% 12.8% 14.2% Sales 661.0 759.6 69
Slide 34: Glossary
FULL YEAR RESULTS FY21 Glossary AUD – Australian Dollar FY21 – Financial Year 2021 MYR – Malaysian Ringgit CAD – Canadian Dollar FY22 – Financial Year 2022 NBR – Nitrile Butadiene Rubber CAGR – Compound Annual Growth Rate FX – Foreign Exchange NIBD – Net Interest Bearing Debt Capex – Capital Expendi