Slide 1: Full Year Results 30th June 2011
For personal use only Ansell A ll Limited Li it d Full Year Results 30th June 2011 Magnus Nicolin – Chief Executive Officer Rustom Jilla – Chief Financial Officer
Slide 2: Disclaimer
Disclaimer F’11 F 11 Full Year Results 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, c
Slide 3: Agenda
Agenda g F’11 F 11 Full Year Results For personal use only Business Overview - Magnus Nicolin Financial Report - Rustom Jilla Full Year Outlook - Magnus Nicolin US dollars used in all slides unless otherwise specified 3
Slide 4: F'11 was a Year of Significant Change
F’11 was A Year of Significant g Change g … F’11 F 11 Full Year Results For personal use only Ansell has reorganised and reengineered; Introduced Global Business Units and changed operating structure to a Matrix, to drive faster growth Integrated Sales & Operations Planning, Manufacturing, Sourc
Slide 5: And large investments made for growth
And large g investments made for growth g … F’11 F 11 Full Year Results For personal use only Fusion: North America went live July 2011 Brazil underway, EMEA to commence shortly Total Project Cost estimate increased to ~$80m Capability Enhancement: Technology and Product Development (Colombo
Slide 6: Despite the large cost hits and investments, F'11 was an Outstanding Year
Despite the large cost hits and investments, F’11 F 11 was an Outstanding Year F’11 F 11 Full Year Results For personal use only % F’10 F’11 Change Sales ($ ($M)) 1,086.2 , 1,206.9 , + 11% % 3 EBIT ($M) 127.3 136.9 + 8% 3 PA ($M) 106.2 121.7 + 15% 3 EPS (¢) 79.7 91.6 + 15% 3 6
Slide 7: F'11 in Perspective
F’11 in Perspective p F’11 F 11 Full Year Results For personal use only Positives Negatives Excellent Organic Sales Growth Natural Rubber Latex (NRL) and other cost increases, adversely impacted Industrial GBU acceleration New Vertical & Medical GBU margins in Sexual Wellness GBU acceleratio
Slide 8: Sales Growth Accelerating
Sales Growth Accelerating g F’11 F 11 Full Year Results For personal use only $’M 650 600 550 623 500 584 583 450 553 533 532 533 +10% +13% 400 vs. vs. 471 F’10 F’10 350 F’11 300 vs. F’10 250 +11% 200 F'08 F'08 F'09 F'09 F'10 F'10 F'11 F'11 H1 H2 H1 H2 H1 H2 H1 H2 8
Slide 9: Portfolio Performance
Portfolio Performance F’11 F 11 Full Year Results For personal use only SALES $1206.9 EBIT $136.9m 11% 8% F '11 v F’10 F '11 v F’10 Industrial NV Medical SW Industrial NV Medical SW NA LAC EMEA AP Total > +5% From 0% to +5% < 0% Industrial: Outstanding global performance with all regions recording s
Slide 10: Industrial GBU Overview
Industrial GBU Overview F’11 F 11 Full Year Results For personal use only 39% of Revenue and 56% of Segment EBIT $M F’10 F’11 HyFlex® 144.0 178.1 24% Ï Volume up 27% Other General Purpose 101.6 117.7 16% Ï Chemical/Liquid Handling 59.5 70.9 19% Ï AlphaTec® sales up 75% YoY Single Use *77.4 88.6 14%
Slide 11: New Verticals GBU Overview
New Verticals GBU Overview F’11 F 11 Full Year Results For personal use only 14% of Revenue and 2% of Segment EBIT $M F’10 F’11 HHG - Retail 25.9 28.8 11% Ï Flat Volumes, Chemical/Liquid Handling 43.0 49.1 14% Ï better pricing Single Use *45.4 44.2 3% Ð Government/First Responders 25.4 23.7 7% Ð Bet
Slide 12: Medical GBU Overview
Medical GBU Overview F’11 F 11 Full Year Results For personal use only 30% of Revenue and 27% of Segment EBIT $M $ F’10 F’11 Surgical: PF 110.5 121.7 10% Ï EMEA, AP each up 10% Powdered 59.6 65.1 9% Ï APAC up 18%, EMEA 8% Synthetic 32 7 32.7 38 2 38.2 17% Ï NA, NA APAC each up 20% Exams: NRL 75.7 69
Slide 13: Sandel Acquisition
Sandel Acquisition q F’11 F 11 Full Year Results For personal use only “A recognised leader in the development of staff and patient safety products in the US” The Business Acquired 1 July 2011 SAFETY DRIVEN PRODUCT LINE Sales approximately $10m p.a. Staff Safety Patient Safety Sharps g Medicatio
Slide 14: Sexual Wellness GBU Overview
Sexual Wellness GBU Overview F’11 F 11 Full Year Results For personal use only 17% of Revenue and 15% of Segment EBIT $M F’10 F’11 Condoms: Branded 137.4 154.8 13% Ï Growth in SKYN® and Emerging markets Tenders/Private Label 16.1 26.6 65% Ï Brazil and India Tenders Launch of a:muse® (Australia) Lube
Slide 15: Emerging Markets Sales Growth by Region
Emerging g g Markets Sales Growth by y Region g F’11 F 11 Full Year Results For personal use only EMEA • Growth YOY +13 % • 8% of global sales (Major contributing countries: Russia, Russia Czech Rep Poland, Hungary and Romania) Asia Pacific • Growth YOY +25% Latin America & Caribbean • 7% of global
Slide 16: Financial Results
F’11 F 11 Full Year Results For personal use only Financial Results Rustom Jilla Chief Financial Officer 16
Slide 17: Sustained focus on Shareholder Returns
Sustained focus on Shareholder Returns F’11 F 11 Full Year Results For personal use only AUD TSR -7% 35% 32% -2% 28% -22% -2% 53% 10% USD TSR -11% 39% 45% -4% 47% -12% -18% 60% 40% TSR CAGR since 16.00 p inception of 14.00 Ansell Ltd in $12.37 April 2002 12.00 $14.16 AUD ~11% 10.00 USD ~19% 19% 8.00
Slide 18: Profit & Loss
Profit & Loss F’11 F 11 Full Year Results For personal use only Profit & Loss ($M) F’10 F’11 Sales 1,086.2 1,206.9 11%Ï Up ~10% with FX constant GPADE 402.0 419.8 Growth offset high input costs SG&A (274.7) (282.9) R&D, S&M and GBU investments EBIT 127 3 127.3 136 9 136.9 8%Ï Net Interest (8.6) (4.0
Slide 19: Impact of DTAs & NOTIs
Impact of DTAs & NOTIs F’11 F 11 Full Year Results For personal use only EPS ((US¢)) H1 H2 Full Year Y on Y F’10 F’11 F’10 F’11 F’10 F’11 Growth EPS before DTA/NOTI 34 2 34.2 40 1 40.1 36 0 36.0 41 2 41.2 70 2 70.2 81 3 81.3 16% Plus DTA 6.1 5.9 4.1 5.6 10.2 11.5 Less NOTI - - (0.7) (1.2) (0.7) (1.2
Slide 20: NRL posed a major challenge in F'11
NRL posed a major challenge in F’11… F’11 F 11 Full Year Results For personal use only NRL price trend Average price/wet kg* of NRL; US$ MYR 11.00 F’08 H1 1.42 4.95 kg) * 9.00 F’08 H2 1.78 6.08 MYR (per wet k 7.00 F’09 H1 1.75 5.28 5.00 F’09 H2 1.14 4.09 3.00 F’10 H1 1.36 4.85 1.00 F’10 H2 2.03 7.10
Slide 21: And Ansell has accelerated the shift away from NRL
And Ansell has accelerated the shift away from NRL … F’11 F 11 Full Year Results For personal use only 100% 33% 30% 29% 25% Ð Products where NRL is main cost driver 80% 1) Moving away 15% 18% 60% 15% 16% Products where NRL from products cost is not dominant where NRL is the 40% main i costt driver d
Slide 22: EBIT Bridge
EBIT Bridge g F’11 F 11 Full Year Results For personal use only $m 30.3 (12.5) 3.9 (7.5) (4.6) 136 9 136.9 140 127.3 100 60 20 EBIT GPADE GPADE SG&A S&M / A&P SG&A EBIT F'10 Volume Impact "All Other" Restructuring "All Other" F'11 Note: Macro level GPADE volume impact was calculated by subtracting p
Slide 23: Strong Balance Sheet
Strong g Balance Sheet F’11 F 11 Full Year Results For personal use only Balance Sheet ($m) F’10 F’11 Fixed Assets 139.5 150.4 Increased Capex Intangibles 304.7 361.8 Fusion, FX Other Assets/Liabilities (22.9) (26.4) Working Capital 196 3 196.3 227 2 227.2 Net Operating Assets 617.6 713.0 Net Intere
Slide 24: Cash Flow Bridge Charts
Cash Flow Bridge g Charts F’11 F 11 Full Year Results For personal use only F'11 19.1 (30.9) 160 136.9 (44.5) 120 37.5 (40.6) (3.8) (14.3) 80 62.5 3.8 63.2 40 0 EBIT Depn Working CAPEX Interest Taxes FCF Other Dividend Share Net Debt Cap Issues Mvt. F'10 5.9 (28.1) 160 22.9 127 3 127.3 (7 9) (7.9) 2
Slide 25: Strong cash position provides options
Strong g cash position p provides p options p … F’11 F 11 Full Year Results For personal use only Investment in the business has 160 Total Dividends $222m been increased with; Total Buybacks $461m 140 Sales force and geographical footprint expansion 120 Stepped up capex investment 100 in F’10
Slide 26: Full Year Outlook
F’11 F 11 Full Year Results For personal use only Full Year Outlook Magnus Nicolin Chief Executive Officer 26
Slide 27: Guidance
Guidance F’11 F 11 Full Year Results For personal use only Business Outlook Cost pressures to continue; actions to mitigate them will also continue Good momentum on exiting F’11 with Industrial, Sexual Wellness GBUs leading the way. Medical and New Verticals GBUs to improve Emerging Markets gr
Slide 28: Handout – ActivArmr
Handout – ActivArmrTM F’11 F 11 Full Year Results For personal use only 28