Slide 1: Half Year Results 31st December 2011
For personal use only Ansell Limited Half Year Results 31st December 2011 Magnus Nicolin - Chief Executive Officer Rustom Jilla - 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: Agenda
Agenda 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.
Slide 4: Results Summary
F’12 H1 – Results Summary For personal use only Statutory Result in Results in Operating Australian Dollars Currency – US Dollars F’11 H1 F’12 H1 F’11 H1 F’12 H1 A$M A$M US$M US$M Sales 617.5 594.1 583.7 611.5 EBIT 73.3 72.8 69.3 74.7 Profit Attributable (PA) 64.2 64.9 61.0 66.6 Earnings Per Share (
Slide 5: The Half in Brief
F’12 H1 – The Half in Brief For personal use only Positives Negatives Double digit organic sales growth in Problems experienced in Fusion ERP Sexual Wellness GBU rollout in North America and LAC Regions Strong results in Asia Pacific and EMEA Continuing high inventory levels in 3 out Strong Emerging
Slide 6: Strong Bottom Line Results
F’12 H1 – Strong Bottom Line Results For personal use only F’11 H1 F’12 H1 % Change Sales (US$M) 583.7 611.5 + 5% EBIT (US$M) 69.3 74.7 + 8% PA (US$M) 61.0 66.6 + 9% EPS (US¢) 46.0 50.6 + 10% 6
Slide 7: Focus on Growth Continues
F’12 H1 – Focus on Growth Continues For personal use only F’13+ Additional F’12 Acquisitions, Sandel Acquisition brand building focused on core & New Product brands, steady stream F’11 Launches in New Verticals (ActivArmr®), of New Product Introduced Global releases, Emerging Sexual Wellness Busines
Slide 8: Emerging Markets Growth
F’12 H1 – Emerging Markets Growth For personal use only Other EMEA Russia • Growth YOY +11% • Growth YOY +8% India • 4% of global sales • 3% of global sales • Growth YOY +31% (CIS, Medit. Poland, • 2% of global sales CEE) China • Growth YOY +28% Latin America & Caribbean • 4% of global sales • Growt
Slide 9: New Product Launches
F’12 H1 – New Product Launches For personal use only SKYN® Extra Lubricated - Launched in December 2011 Intense lubricated condom made from Polyisoprene Provides a softer, more natural feel and enhanced sensation Continued geographic roll out of SKYN® into Brazil, Thailand and Vietnam Cold Weather G
Slide 10: Fusion ERP Implementation
F’12 H1 – Fusion ERP Implementation For personal use only In 2009, Ansell recognized the need to update its business processes and consolidate 25 legacy systems into a single global platform. An ERP platform and a systems integrator were chosen and project defined The first phase (North America and
Slide 11: Portfolio Performance
F’12 H1 – Portfolio Performance For personal use only Sales EBIT US$611.5M 4.8% US$74.7M 7.9% F’12 v F’11 F’12 v F’11 Ind NV Med SW Total Ind NV Med SW Total NA LAC EMEA AP Total > +5% From 0% to +5% < 0% 11
Slide 12: Industrial GBU Overview
F’12 H1 – Industrial GBU Overview For personal use only 40% of Revenue and 50% of Segment EBIT US$M F’11 H1 F’12 H1 HyFlex® 86.8 92.6 7% AP & EMEA growth, NA flat Other General Purpose 59.3 57.7 3% NA & EMEA down Chemical/Liquid Handling 35.5 36.7 3% NA & LAC down Single Use *42.6 47.4 11% EMEA grow
Slide 13: New Verticals GBU Overview
F’12 H1 – New Verticals GBU Overview For personal use only 14% of Revenue and 6% of Segment EBIT US$M F’11 H1 F’12 H1 HHG - Retail 11.1 17.0 53% Volume growth, pricing Chemical/Liquid Handling 25.0 25.8 3% Single Use *22.7 20.3 11% Rationalized poor performers Military/First Responders 9.7 10.2 5% I
Slide 14: Medical GBU Overview
F’12 H1 – Medical GBU Overview For personal use only 28% of Revenue and 20% of Segment EBIT US$M F’11 H1 F’12 H1 Surgical gloves: PF 58.4 59.1 1% Pricing & mix gains Powdered 30.3 29.2 4% Conversions to PF Synthetic 16.7 20.0 20% Vol up 28%; growth in all regions Exam gloves: PF 29.8 23.9 Powdered 3
Slide 15: Sexual Wellness GBU Overview
F’12 H1 – Sexual Wellness GBU Overview For personal use only 18% of Revenue and 24% of Segment EBIT US$M F’11 H1 F’12 H1 ® ® Condoms: Branded 77.0 82.0 Growth in SKYN , ZERO , Key 6% Emerging Markets, USA, ANZ Tenders/Private Label 12.0 16.1 34% Tenders down, Private Label up Lube/Devices/Other 8.7
Slide 16: Financial Results
Financial Results For personal use only Rustom Jilla Chief Financial Officer 16
Slide 17: Total Shareholder Return
F’12 H1 – Total Shareholder Return For personal use only Total Shareholder Return Ansell’s CAGR (since its 2002 Inception) AUD ~10% USD ~18% ASX 200 CAGR (also since Ansell’s inception) 2% 16.0 Dec 11 14.0 A$14.54 12.0 Jun 11 A$14.16 10.0 Jan 02 Ansell 8.0 A$5.20 6.0 ASX 200 4.0 Jun 11 Dec 11 2.0 Ja
Slide 18: Profit and Loss
F’12 H1 – Profit and Loss For personal use only US$M F’11 H1 F’12 H1 Sales 583.7 611.5 5% Up ~3% in constant FX GPADE 205.5 225.0 GPADE/Sales up ~160 basis points SG&A (136.2) (150.3) EBIT 69.3 74.7 8% Net Interest (2.3) (1.8) Better funding and deposit mix Taxes (4.2) (4.5) DTAs/NOTIs were US$8.0m,
Slide 19: EBIT Bridge
F’12 H1 – EBIT Bridge For personal use only US$M 23.7 (4.2) 100 (1.1) (5.3) (7.7) 80 74.7 69.3 60 40 20 0 EBIT GPADE GPADE SG&A SG&A SG&A EBIT F'11 H1 Margins Distribution Restructuring Salaries & "All Other" F'12 H1 Costs Incentives Higher margins driven by SW volumes, better pricing/mix across the
Slide 20: Raw Material Input Costs
F’12 H1 - Raw Material Input Costs For personal use only US$ 4.00 3.50 3.00 2.50 Cotton (Lb) 2.00 NR Latex (wkg) 1.50 1.00 Nitrile Latex (wkg) 0.50 0.00 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 F’11 was negatively impacted by significant raw material price rises T
Slide 21: Balance Sheet
F’12 H1 – Balance Sheet For personal use only US$M F’11 H1 F’11 F’12 H1 Fixed Assets 148.1 150.4 149.9 Intangibles 341.6 361.8 369.7 Other Assets/Liabilities (8.4) (26.4) 2.1 Working Capital 228.9 227.2 275.4 Net Operating Assets 710.2 713.0 797.1 Net Interest Bearing Debt 46.0 (10.2) 108.0 Sharehol
Slide 22: Working Capital
F’12 H1 – Working Capital For personal use only F’12 H1 Inventories Debtors Creditors Total US$M F’11 F’12 % F’11 F’12 % F’11 F’12 % F’11 F’12 % Mvt Mvt Mvt Mvt NA/LAC 80.7 100.7 36.7 59.0 (31.8) (42.8) 85.6 116.9 37 EMEA 50.4 62.1 75.9 71.1 (32.4) (31.8) 93.9 101.4 8 AP 16.9 21.0 42.1 42.9 (12.6) (
Slide 23: Cash Flow Bridge
F’12 H1 – Cash Flow Bridge For personal use only 10.0 (46.1) F'12 H1 74.7 (21.4) (2.1) (8.8) 6.3 (46.4) (25.9) (33.4) (18.8) (118.2) EBIT Depn Work CAPEX INT Taxes FCF Other DIV Share Acq./ Net /WO Cap B/Back/ Invest. Debt 9.4 (32.7) Issues Mvt. 69.3 F'11 H1 (23.2) (2.2) (6.8) 11.1 (21.7) 13.8 3.8 7
Slide 24: Improving Competitiveness in Manufacturing
F’12 H1 – Improving Competitiveness in Manufacturing For personal use only Capex investments in capacity Increases Production volume growth in Key Product categories. For example; • Touch N Tuff ® +35% year on year • NRL condoms and HyFlex® product lines operating near full capacity Expansion of Pol
Slide 25: Financial Summary
F’12 H1 – Financial Summary For personal use only H1 financials in brief Sales have been mixed; AP strong, LAC and NA pulled down by Fusion in Q1 with recovery since then. EMEA started strongly but slowed in Q2 Profits have been strong with other savings offsetting the drag from Fusion FCF was disap
Slide 26: Full Year Outlook
Full Year Outlook For personal use only Magnus Nicolin Chief Executive Officer 26
Slide 27: H2 Outlook and Guidance
F’12 – Guidance For personal use only H2 Outlook Economic outlook mixed; • FX (Euro) and European economic weakness expected to impact sales • US seeing better economic outlook; LAC to regain momentum • Asia Pacific to remain strong • Raw material costs favourable to F’11 Fusion implementation to co