Slide 1: Half Year Results to Dec 2013
For personal use only Ansell Limited Half Year Results to Dec 2013 Magnus Nicolin - Chief Executive Officer Neil Salmon - 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'14 H1 – Agenda
F’14 H1 – Agenda For personal use only Business Overview - Magnus Nicolin Financial Report - Neil Salmon Full Year Outlook - Magnus Nicolin US dollars used in all slides unless otherwise specified. 3
Slide 4: Sales & EBIT
F’14 H1 – Sales & EBIT For personal use only F’13 H1 F’14 H1 % Change Sales ($M) 648.1 703.6 9% EBIT ($M) 68.8 82.7 20% PA ($M) 57.1 65.6 15% EPS (US¢) 43.7 49.6 14% Adjusted EPS (US¢) (excluding Dec share issue 43.7 50.2 15% prior to BSSI acquisition) Dividend A16¢ US17¢ 4
Slide 5: Global Recovery Mixed: US leads the way
F’14 H1 – Global Recovery Mixed: US leads the way For personal use only 60 Purchasing Managers US Expanding Contracting Indices (PMI) 55 Germany Eurozone 50 Brazil Russia France, Australia 45 40 35 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 PMI Covers: Production Levels, New Orders, Speed of Supplier, Deliv
Slide 6: The half in brief - a very solid half for Ansell
F’14 H1 – The half in brief- a very solid half for Ansell overall For personal use only with strong EBIT growth Key Positives Head Winds • B2B organic growth rates • Australia, Russia, Turkey and improving driven by a 20% growth Brazil weaker in NPD sales • Sexual Wellness sales dip on FX, • Strong
Slide 7: Growth trends improving in NA and strong in LAC
F’14 H1 – Growth trends improving in NA and strong in LAC. For personal use only APAC down on ANZ decline, good growth in Asia. Sales $703.6 M Segment EBIT $82.0 M Med Ind SM SW Total Med Ind SM SW Total Asia Pac* EMEA Nth Am LAC Total > +5% From 0% to +5% < 0% * Asia Pac significantly affected by A
Slide 8: Acquisition Strategy guided by Three Priorities
F’14 H1 – Acquisition Strategy guided by Three Priorities. Recent Acquisitions collectively on Target and Expected to Exceed Return For personal use only Hurdles 1 ECONOMIES 2. NEW TECHNOLOGIES 1. ECONOMIES OF SCALE BENEFITS OF SCALE AND CAPABILITIES ACHIEVED DELIVERED • US$75m specialist clothing b
Slide 9: Acquisitions Integration
F’14 H1 – Acquisitions Integration For personal use only Update on Prior Acquisitions • Comasec, Trelleborg (APS) and Hercules integration activities are far advanced with many aspects of acquired businesses now fully absorbed within the core organization • They collectively are meeting our business
Slide 10: 20% growth in sales of new products
F’14 H1 – 20% growth in sales of new products gives clear For personal use only evidence of building momentum in our innovation strategy Key Successes • Strong wins on new Hyflex® products • New TNT products growing well • Our leading Oil&Gas fire resistant range well aligned to industry trends and
Slide 11: Industrial Overview
F’14 H1 – Industrial Overview : For personal use only 42% of Revenue and 51% of Segment EBIT $M F’13 H1 F’14 H1 - HyFlex® 97.0 100.0 3% General Purpose/ Mechanical - Other GP/M 70.7 76.0 7% - AlphaTec® 5.4 6.5 20% Chemical/Liquid Handling - Other Chemical /LH 37.5 41.2 10% - Touch N Tuff® (TNT) 38.1
Slide 12: IGBU NPD Success Widespread and Building Momentum
IGBU NPD Success Widespread and Building Momentum For personal use only Fully Launched Fully Launched Fully Launched Fully Launched September 2012 November 2013 December 2013 December 2012 11-518 11-840 11-927 EDGE® Ultralight weight general purpose Light duty multi-purpose glove Ideal combination o
Slide 13: Specialty Markets
F’14 H1 – Specialty Markets : For personal use only 17% of Revenue and 7% of Segment EBIT $M F’13 H1 F’14 H1 VersaTouch® Food Family 44.8 47.0 5% - Specialty Application 3.9 5.8 49% ActivArmr® Family - Military / First Responders 6.4 1.8 (72%) Consumer Retail / DIY 28.4 35.1 24% Clothing/ Fall / Oth
Slide 14: Industry Leading Oil & Gas Range Is Gaining Traction
Industry Leading Oil & Gas Range Is Gaining Traction within Specialty Markets For personal use only FLAME RESISTANCE IMPACT HI-VISIBILITY / GRIP THERMAL 97-200 / 97-201 97-210 / 97-321 97-100 / 97-012 /97-013 97-011 80-813 / 46-111 Best in Class Impact protection w/Grip Second skin cut protection wi
Slide 15: Medical GBU Overview
F’14 H1 - Medical GBU Overview : For personal use only 26% of Revenue and 27% of Segment EBIT $M F’13 H1 F’14 H1 - NRL 89.1 92.9 4% Surgical - Synthetic 23.6 29.1 23% - NRL 18.6 14.2 (24%) Examination - Synthetic 24.3 29.8 23% Healthcare Safety Solutions 9.7 12.4 28% Sales 165.3 178.4 8% Segment EBI
Slide 16: Medical GBU – New Product Traction
F’14 H1 – Medical GBU – New Product Traction For personal use only GAMMEX® Non-Latex Accelerator Free GAMMEX® Latex Powder-Free Antimicrobial with with SENSOPRENE formulation AMT technology Accolades & Awards Recent Publications: • In the US, won silver in the Excellence in • New Antimicrobial glove
Slide 17: Sexual Wellness Overview
F’14 H1 – Sexual Wellness Overview : For personal use only 15% of Revenue and 15% of Segment EBIT $M F’13 H1 F’14 H1 Condoms Branded 87.8 83.1 (5%) Tenders/Private Label 14.9 12.7 (15%) Lube/Devices/Other 12.1 12.2 1% Sales 114.8 108.0 (6%) Segment EBIT 14.5 12.1 (17%) EBIT/Sales 12.6% 11.2% Comment
Slide 18: SKYN Performance
SKYN® Performance For personal use only SKYN® sales grew by 17% vs LY SKYN® became the number one condom brand for Ansell in sales value SKYN® Intense Feel launched – world first PI textured condom. Delivers truly natural feeling for him and intense stimulation for her. During H1 SKYN® media investm
Slide 19: Financial Results
Financial Results For personal use only Neil Salmon Chief Financial Officer 19
Slide 20: Organic Growth and Acquisitions Supporting Results
F’14 H1 – Organic Growth and Acquisitions Supporting For personal use only Results $M F’13 H1 F’14 H1 Sales 648.1 703.6 Up 9%, organic growth up 1% GPADE 238.8 267.2 Margin up 1% YOY SG&A (170.0) (184.5) Includes $9.4m from acquisitions EBIT 68.8 82.7 EBIT margin up 120bps Net Interest (4.3) (6.9) A
Slide 21: Organic Sales Growth Supported by Acquisitions
F’14 H1 – Organic Sales Growth Supported by Acquisitions For personal use only up 9%. EBIT up 20% on Acquisitions and Improved GPADE 49.0 14.0 (5.1) 703.6 648.1 (2.4) Sales $M H1 F'13 FX Acquisitions MISM* Organic SW Destocking H1 F'14 Sales Growth Sales EBIT 12.2 0.3 0.5 (6.4) 7.3 82.7 $M 68.8 F'13
Slide 22: Balance Sheet – Remains Strong and Liquid
F’14 H1 – Balance Sheet – Remains Strong and Liquid For personal use only $M F’13 H1 F’13 F’14 H1 Fixed Assets 182.1 186.7 195.6 Intangibles 481.3 541.4 545.8 Other Assets/Liabilities 11.7 (33.6) (6.9) Working Capital 305.8 314.5 327.2 Net Operating Assets 980.9 1,009.0 1,061.7 Net Interest Bearing
Slide 23: Free Cash Flow moderately lower on higher interest expense
F’14 H1 –Free Cash Flow moderately lower on higher interest For personal use only expense and timing of tax payments. #039;M F'14 H1 15.6 (4.7) (19.5) 82.7 (6.7) (12.8) (8.4) 46.2 (35.5) (26.7) (48.8) (32.8) EBIT Depn Work Capex INT Taxes Hercules Other DIV Acq./ Net Debt /WO Cap Earn Out FCF Invest. M
Slide 24: Dividend Reinvestment Plan
F’14 H1 – Dividend Reinvestment Plan For personal use only Dividend Reinvestment Plan (DRP) As a way of providing shareholders with a cost effective and convenient mechanism to acquire shares where they prefer to do so instead of receiving a dividend cash payment, Ansell has decided to implement a d
Slide 25: Financial Wrap-up
F’14 H1 – Financial Wrap-up For personal use only Achievements Midas Acquisition bringing technology and manufacturing competency BarrierSafe acquisition on 2 Jan 2014 – transformational to NA region Strong EBIT growth of 20% EMEA SAP live on Feb 3rd. Early in go-live operation, but good progress so
Slide 26: Full Year Outlook
Full Year Outlook For personal use only Magnus Nicolin Chief Executive Officer 26
Slide 27: Keys to H2 Success
F’14 – Keys to H2 Success For personal use only Our expectation for H2 performance is based upon: Continued modest improvement in US and Eurozone economies Emerging markets mixed. Softness continuing (Russia, Turkey, Brazil, Argentina) Acceleration in NPD sales, based on strong pipelines Turn around
Slide 28: Guidance
F’14 H1 – F’14 Guidance For personal use only As previously guided when announcing the BarrierSafe acquisition, Ansell reconfirms: – Reported F’14 EPS expected to be in the range of US$1.10 to US$1.16 – including a positive impact of Net Deferred Tax Asset/Non Operational Tax (DTAs/NOTIs) adjustment