Ansell Limited · ASX:ANN
Ansell — Investor Day (October 2017)
178 slides from Ansell's investor day presentation, Oct 23, 2017
Slide 1: ASX cover letter: presentation for Capital Markets Day
Ansell Limited — A.B.N. 89 004 085 330 T. + 61 9270 7270 Level 3, 678 Victoria Street F. + 61 9270 7300 Richmond, Victoria 3121 Australia www.ansell.com GPO Box 772H Melbourne For personal use only 23 October 2017 Manager Companies Company Announcements Office Australian Securities Exchange Limited
Slide 2: Capital Markets Day: Welcome, Introductions & Agenda
For personal use only Capital Markets Day Welcome, Introductions & Agenda Jocelyn Petersen October 23, 2017
Slide 3: Agenda
AGENDA For personal use only Monday, October 23, 2017 – The Langham Hotel, Sydney TIME TOPIC SPEAKER 12:15 – 1:00pm • Ansell Primed for Growth • Magnus Nicolin, Managing Director & CEO • 8 Dimensions of Ansell Differentiation Video • Neil Salmon, CFO • Chrystelle Fontan, SVP Quality Assurance & Re
Slide 4: Ansell Executive Leadership Team
For personal use only Ansell Executive Leadership Team (“ELT”) Chrystelle Fontan Michael Gilleece Magnus Nicolin Peter Dobbelsteijn Rikard Froberg Steve Genzer Neil Salmon Senior Vice President Senior Vice President President ‐ Industrial Senior Vice President Managing Director and Chief Financial O
Slide 5: Exhibit Locations/Schedule
For personal use only Ansell Capital Markets Day – Exhibit Locations/Schedule Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 Exhibit 5 Surgical Suite Chemical, O&G Ansell Guardian Life Sciences HyFlex Group 1 Group 2 Group 3 Group 4 Group 5 Group 5 Group 1 Group 2 Group 3 Group 4 Group 4 Group 5 Group 1 Gr
Slide 6: Capital Markets Day – Opening Session
For personal use only Capital Markets Day – Opening Session Magnus Nicolin, MD and CEO Neil Salmon, CFO and Chrystelle Fontan, SVP QA & RA October 23, 2017
Slide 7: Disclaimer
For personal use only Disclaimer 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 conjunction with Ansell’s
Slide 8: Opening Remarks: What We Heard From You
For personal use only Opening Remarks WHAT WE HEARD FROM YOU • We need to understand Ansell’s new focus • We need better view of 2 GBUs • Industry exposure & market segment dependencies • It’s time for Ansell to get back to sustainable profit growth • Are Ansell goals realistic and achievable? • Wha
Slide 9: Opening Remarks: Our Objectives Today
For personal use only Opening Remarks OUR OBJECTIVES TODAY • Provide you with better understanding of • our markets, industry trends • how Ansell creates customer value • Meet our key leaders & hear their vision for future growth • Gain understanding and give you confidence in our plans • in our pri
Slide 10: Contents
For personal use only 01 05 Overview Organic & Inorganic Growth and KPIs 02 2 GBU’s and 5 CONTENTS Core business segments 03 Ansell - 8 Dimensions of differentiation 04 F14-F17 Review of Results
Slide 11: Overview
For personal use only 01 Overview
Slide 12: Key Points For Today
For personal use only Key Points For Today WHY INVEST IN ANSELL? FUTURE GOALS • History of driving solid financial results and a doubled share- • Management team is confident that we’re on right path price since 2010 for sustainable growth and shareholder value creation • Growing markets with high a
Slide 13: Ansell Evolution – Building on Strength
For personal use only Ansell Evolution – Building on Strength Reinvigoration & The Formative Years Global Expansion Consolidation Era Growth Era Sharper Focus Era 1893 - 1969 1969 - 2002 2002 - 2010 2010 - 2017 2017 & Beyond • Australian centric family • Holding company model • Low risk, cash focus;
Slide 14: Long Term Growth Track Record
For personal use only Long Term Growth Track Record ANSELL SALES AND EPS F’02 – F’17 $1,590 $1,645 $1,573 $1,600 $245 $1,373 $237 $1,207 $1,255 $206 $218 $1,116 $1,086 $975 $1,003 $171 $153 $792 $812 $849 $137 $738 $759 $127 121.4₵ $110 $103 $111 $107 106.1₵ 109.3₵ $97 101.2₵ 104.5₵ 98.9₵ 91.6₵ $79
Slide 15: TSR Delivery Since 2002 Shows Long Term Attractive Return Creation
For personal use only TSR Delivery Since 2002 Shows Long Term Attractive Return Creation 7000 Value of A$ 1,000 Investment made in April 2002 6000 5000 A$1,000 invested in Ansell In April 4000 2002 has grown more than 5x Consistent track record of TSR 3000 growth at above 10% per annum 2000 1000 0 I
Slide 16: Our Capabilities Are Evolving
For personal use only Our Capabilities Are Evolving 2005 to 2010 2010 to 2017 • Market leader with focus on cash returns to shareholders • Strengthened market leadership • Historical innovation but differentiation declining • Strong foundations Branding, EM, NPD, Channel Partners, • 250 brands & unc
Slide 17: Ansell is a Safety Company
For personal use only Ansell is a Safety Company LEADERSHIP VISION MISSION VALUES To be the world’s best $1.4B global & at providing safety • Integrity innovative market solutions to customers Providing innovative • Trustworthiness leader specializing in globally, by helping solutions for safety, •
Slide 18: GBU’s and Core business segments
For personal use only 02 2 GBU’s and 5 Core business segments
Slide 19: Ansell – A Global Leader in Protection Solutions
For personal use only Ansell – A Global Leader in Protection Solutions $1.4B Revenue 12.9%* EBIT Margin 48% of total Sales $655.9M Revenue 12.2%* EBIT Margin 52% of total Sales $718.6M Revenue 15.3%* EBIT Margin INDUSTRIAL HEALTHCARE MECHANICAL CHEMICAL EXAM & SINGLE USE SURGICAL & HSS LIFE SCIENCES
Slide 20: Leading Position in Attractive Industry Segments
For personal use only Leading Position in Attractive Industry Segments INDUSTRIAL HEALTHCARE EXAM / SINGLE USE LIFE MECHANICAL CHEMICAL SURGICAL Market $5.0B SCIENCES & Size $3.6B $3.1B $1.3B $1.9B INDUSTRIAL $1.9B MEDICAL $3.1B Ansell Global #1 #2 #1 #5 #1 #3 Share Share Trend Ansell participates i
Slide 21: Ansell - Dimensions of differentiation
For personal use only 03 Ansell - 8 Dimensions of differentiation
Slide 22: Why Ansell from Customer Perspective
For personal use only Why Ansell from Customer Perspective 1) Ansell helps customers solve hand & body protection problems better than anyone else 2) Hand injuries are the most common injury facing our customers 3) Our 8 dimensions of differentiation highlight how we compete & win 4) Our large sales
Slide 23: Video Launch: Dimensions of Differentiation
For personal use only Video Launch 8 Dimensions of Differentiation
Slide 24: Ansell’s Dimensions of Differentiation
For personal use only Ansell’s 8 Dimensions of Differentiation STRONG BALANCE SHEET & CASH CUSTOMER INTIMACY & SAFETY FOCUS :: CONVERSION :: selling solutions & services for improved Low gearing, strong cash conversion and performance and injury avoidance (Ansell deliberate but aggressive investment
Slide 25: Safety DNA – Ansell is Best in Class
For personal use only CUSTOMER Safety DNA – Ansell is Best in Class INTIMACY & SAFETY FOCUS LONG TERM ILLNESS / INJURY (LTI) MEDICAL TREATMENT ILLNESS / INJURY (MTI) 0.8 3.5 0.7 3 0.6 2.5 0.5 2 0.4 1.5 0.3 1 0.2 0.5 0.1 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 26: Ansell Guardian Is Key To Our Value Delivery
For personal use only CUSTOMER Ansell Guardian Is Key To Our Value Delivery INTIMACY & SAFETY FOCUS Ansell Guardian® is a patented “plant audit program” which defines business performance improvements in safety, cost and productivity Ansell Guardian is how we interact with end user customers:
Slide 27: Ansell Technology Platforms are Protected by Patents and Methods
For personal use only Ansell Technology Platforms are Protected by PRODUCT RANGE & Patents and Methods INNOVATION Minimizes force required to Absorbs hand perspiration The Industry’s most durable Provides high cut protection Ensures comfortable, knitted grip oily or wet tools or and provides a coole
Slide 28: Ansell Technology Platforms are Protected by Patents and Methods
For personal use only Ansell Technology Platforms are Protected by PRODUCT RANGE & Patents and Methods INNOVATION ANTIMICROBIAL POLYISOPRENE SENSOPRENE® Microbial Protection Ultimate Sensitivity Allergy Protection & Sensitivity Enhances hand movement Reduces risk of infection due Reduce muscle fatig
Slide 29: Ansell Technology Platforms are Protected by Patents and Methods
For personal use only Ansell Technology Platforms are Protected by PRODUCT RANGE & Patents and Methods INNOVATION GLOVE-IN-GLOVE™ ERGO-FIT™ HYBRID HYDRASOFT™ MULTI-LAYER Pre-donned Double Gloving System Ergonomic Design Technology Synthetic Blend Technology MoisturizingTechnology Composite Performan
Slide 30: Robust NPD Pipeline to Drive Continued Growth
For personal use only PRODUCT Robust NPD Pipeline to Drive Continued Growth RANGE & INNOVATION IDEATION STAGE 2 STAGE 3 STAGE 4 STAGE 5 GATE 1 GATE 3 GATE 4 GATE 5 PRODUCT IDEATION CONCEPT VALIDATION PRODUCT VALIDATION LAUNCH DEVELOPMENT $260m of New 81 32 Product Sales 35 33 13 16% of F17 Sales 80
Slide 31: Healthcare Growth Brands Now Account for 75% of Sales
For personal use only Healthcare Growth Brands Now Account for ANSELL BRAND 75% of Sales EQUITY SALES Over $210m Over $125m Over $110m Over $50m Over $30m MARKET SEGMENTS Laboratories, dental Acute Care Hospitals Industrial, Lab and Acute Care Hospitals Acute Care Hospitals offices, factories and Al
Slide 32: Industrial Growth Brands Now Account for 55% of Sales
For personal use only Industrial Growth Brands Now Account for ANSELL BRAND 55% of Sales EQUITY SALES Over $235m 2-3x the nearest Over $60m Over $15m Over $15m competitor MARKET Mechanical, Oil & Gas Chemical & Liquid Military, Emergency General Purpose, Cut & SEGMENTS Protection services, Oil explo
Slide 33: Ansell’s Global Footprint is Unique in the Industry
For personal use only Ansell’s Global Footprint is Unique in GEOGRAPHIC & VERTICAL the Industry COVERAGE 20+ Warehouses 600 Sales Force Sales Sites in 50 Countries Sales in 100+ Countries • Uniquely qualified to serve global accounts • Allows increasing scale in each product type • Do not have conce
Slide 34: Navigating a Complex and Fragmented Regulatory Ecosystem
For personal use only Ansell Successfully Navigates a Complex and REGULATORY Fragmented Regulatory Ecosystem & COMPLIANCE Governmental Agencies Standardization Bodies Accredited Labs & Notified Bodies In 12 Months alone… 4 Disruptive Changes Higher Compliance Pressure on EN Customers We support cust
Slide 35: Regulatory Strategies to Support First-to-Market Presence
For personal use only Regulatory Strategies to Support First-to-Market REGULATORY Presence and ~450 Registrations Annually & COMPLIANCE ●● ● ● ● ● Regulatory Presence In Key Strategic Mature & Emerging Markets • 20 Regulatory Experts advising Standardization Bodies set and measure compliance ● ● •
Slide 36: Material Science & Engineering Prowess Driving Competitiveness
Material Science & Engineering Prowess Driving For personal use only MATERIALS Competitiveness SCIENCE Smart Line (IGBU) New Surgical Synthetic Line HYFLEX Fortix Dip Lines New technologies delivering cost Growth & 30% reduction > 95% FPY & 10% 30% productivity gain higher productivity productivit
Slide 37: Manufacturing & Engineering in Good Locations
For personal use only Manufacturing & Engineering in Good ENGINEERING Locations CAPABILITY LITHUANIA CHINA IGBU Key Products: Gastight & Splash suits, KOREA Chemical & Rescue IGBU PORTUGAL dry diving suits Key Products: Chemical Protective Clothing & barrier IGBU IGBU fabric Key Products: MEXICO Key
Slide 38: Strong Balance Sheet
For personal use only STRONG BALANCE Strong Balance Sheet SHEET & CASH CONVERSION OPERATING CASH FLOW1 ($M) CASH CONVERSION (NET RECEIPTS / EBITDA) 103% 95% 96% 151 143 144 79% 73% 81 94 F13 F14 F15 F16 F17 F13 F14 F15 F16 F17 NET DEBT / EBITDA 2.0x Ansell's greater financial strength vs smaller p
Slide 39: F14-F17 Review of Results
For personal use only 04 F14-F17 Review of Results
Slide 40: 2014 to 2017: Comparing P&L for Total Ansell to Restated Continuing Business
For personal use only 2014 to 2017: Comparing P&L for Total Ansell, to Restated Continuing Business (excluding SW) ANSELL SALES AND EPS 2014 – 2017 ANSELL SALES AND EBIT 2014 – 2017 – EXCLUDING SW $1,590 $1,645 $1,573 $1,600 $1,378 $1,428 $1,353 $1,375 $243 $229 $206 $218 $214 $177 $191 $178 110.0₵
Slide 41: F14-F17 EPS Trend Varies From EBIT Trend
For personal use only F14-F17 EPS Trend Varies From EBIT Trend Primarily Because of Increase in Tax Rate F14 F15 F16 F17 Earnings Per Share 110.01 122.5 105.1 100.2 Effective Tax Rate 15.0% 15.5% 24.5% 23.0% EPS at F’17 Constant Tax Rate 99.7 111.5 107.9 100.2 • F’14 EPS Benefited from recognition o
Slide 42: Sales Trends F14-F17: Limited Organic Growth
For personal use only Sales Trends F14-F17: Limited Organic Growth - Growth Brand Success Offset By Other Declines Constant Currency F14-F17 CAGR 3.7% 45 2 184 144 1,378 1,375 F14 Sales FX Acquired Sales Divestments/Exits Organic Growth F17 Sales • Growth Brands includes growth of acquired businesse
Slide 43: EBIT Trends: Benefit of Acquisitions with Moderate Organic EBIT growth
For personal use only EBIT Trends: Shows Benefit of Acquisitions with Moderate Organic EBIT growth 240.0 220.0 Adjusted Constant Currency F14-17 CAGR 8.9%* 200.0 Unadjusted Constant Currency F14-17 CAGR 4.9% 180.0 3.0 8.9 10.9 11.5 160.0 36.4 22.8 140.0 176.7 177.8 165.2 120.0 100.0 F14 Segment F14
Slide 44: Success Of EBIT Improvement Initiatives: Why Is This Not Seen?
For personal use only Success Of EBIT Improvement Initiatives Should Have Delivered Additional Growth. Why Is This Not Seen? Issues holding back EBIT growth were identified during F’15 and F’16. Action has been taken and significant improvement seen in F’17 Issue Actions Taken F’17 Status Insufficie
Slide 45: Reported EBIT Shows Continued F17 Decline
For personal use only Reported EBIT Shows Continued F17 Decline. However, Business Results Improved In F17 As Shown Below. • Reported EBIT Suggests Further Decline in EBIT EBIT ($M) F14 F15 F16 F17 in F17 Ansell ex SW 177 214 191 178 • However it is relevant to adjust for previously disclosed varian
Slide 46: Organic & Inorganic Growth and KPIs
For personal use only 05 Organic & Inorganic Growth and KPIs
Slide 47: Strong Execution of our Growth Drivers Now Delivering Improved Organic Growth
For personal use only Strong Execution of our 4 Growth Drivers Now Delivering Improved Organic Growth Organic Revenue Growth NPD Success 11% 11% 250.0 18.0% 10% 9% 3 Yr Sales CAGR +13% 16.0% 5% 200.0 14.0% 3% 3% 12.0% -1% 6.0% 150.0 3.9% 10.0% 2.3% 2.7% 8.0% 0.9% 100.0 6.0% -1.6% -2.9% -3.0% 50.0 4.
Slide 48: M&A – An Important Part of Strategy in Fragmented Markets
For personal use only M&A – An Important Part of Strategy in Fragmented Markets STRATEGIC OBJECTIVES ACQUISITION PILLARS FINANCIAL CRITERIA Improve portfolio • Returns assessment via profitability through internal rate of return (IRR) building economies of Economies and post tax return on scale of s
Slide 49: Acquisitions Have Meaningfully Strengthened Ansell Market Position
For personal use only Acquisitions Have Meaningfully Strengthened Overall Ansell Market Position, With Good Returns > WACC ANSELL ACQUISITION PERFORMANCE M&A generally delivering at or Nitritex Returns > above WACC and in line with BSSI Business business case Case & WACC Comasec Hands Midas Inte
Slide 50: Acquisition Case Studies Show Success Across Range Of Opportunities
Acquisition Case Studies Show Success Across For personal use only Range Of Acquisition Opportunities BarrierSafe Midas Sandel / PSP Acquisition Price[1] $572m $36m $18m Date January 2014 November 2013 July 2011 Current ROCE[2] >13% >20% >11% Strategic Strengthen position in North America and Enable
Slide 51: Sale of Sexual Wellness Completes The Portfolio
Sale of Sexual Wellness Completes The Portfolio For personal use only Refocusing Work Of Last 3 Years (Military, Retail, Boots) Sexual Wellness $600m at 16X EBITDA September 4, 2017 Net after tax cash estimated at $529m Estimated profit on sale in F18 at $365m Rationale for divestiture 1) Different
Slide 52: Summary- KPI’s indicate Good Progress over years
For personal use only Summary- KPI’s indicate Good Progress over 7 years… KPI F10 F17 COMMENTS Sales $1.08B $1.6B 1.5X – sustained organic growth is key EBIT $127M $221M 1.7X SG&A % 25% 23% Efficiency and scale contribute EBIT % 11.7% 13.6% 190 BPS expansion, but opportunity for 15% Driver 1 - Top B
Slide 53: Why invest in Ansell?
For personal use only Why invest in Ansell? WHY INVEST IN ANSELL? • History of driving solid financial results and a doubled share-price since 2010 • Growing markets with high attractiveness to drive sustainable growth with our safety solutions • Foundation established for sustainable growth through
Slide 54: Capital Markets Day: Healthcare GBU
For personal use only Capital Markets Day Healthcare GBU Joe Kubicek - President 23 October 2017
Slide 55: Contents
For personal use only 01 05 Who the HGBU Summary is 02 Where the HGBU CONTENTS plays 03 Competitive Landscape and Strengths 04 HGBU Growth Focus and Strategy
Slide 56: Who we are
For personal use only Who we are PRIMARY KEY GROWTH PRODUCTS INDUSTRIES BRANDS The broadest range of • Surgical / Operating Room surgical and exam hand • Life Sciences protection solutions, • Dental engineered to solve customer’s problems. • EMS & Other non-Acute • Chemical • Automotive Aftermarket
Slide 57: Strong, Scalable Platform for Ongoing Growth
For personal use only Strong, Scalable Platform for Ongoing Growth $719 NA 54% 5 EMEA 27% M APAC 16% State-of-the-Art R&D Centers LAC 3% independently F17 Sales >$90M accredited and certified in New Product $110 Sales M 76% Sales under 55% Growth Brands grew 6% in F’17 F17 EBIT In House Manufacturin
Slide 58: Meaningful Differentiation against Competition
For personal use only Meaningful Differentiation against Competition Clinical Regulatory Technology Product Global End User Distributor Operations Education & Expertise & R&D Portfolio Brands Intimacy Partnerships Guardian Competitor A Ansell wins as an integrated Competitor B value-added player wit
Slide 59: Three Strategic Business Units
For personal use only Three Strategic Business Units SURGICAL & SAFETY EXAM & SINGLE USE LIFE SCIENCES SOLUTIONS Annual Global Sales* ~$400m >$250m >$100m Microflex™ Gammex® BioClean™ Growth Brands TouchNTuff®, EDGE® Encore®, Sandel® Microflex™, TouchNTuff® • Clean & Sterile disposable gloves • Medi
Slide 60: HGBU Growth Strategy
For personal use only HGBU Growth Strategy Organic In-Organic CHANNEL & END INNOVATION GROWTH BRAND USER SALES CUSTOMER EMERGING OPTIMIZING LEADERSHIP EQUITY EXECUTION EXPERIENCE MARKETS OPERATIONS M&A Service Levels; New Products % Complaint Improve Yields Deals Sales Growth Sales Growth 1-2 of Tot
Slide 61: Exam & Single Use SBU
For personal use only Exam & Single Use SBU $1.9B INDUSTRIAL VERTICALS $3.1B MEDICAL VERTICALS Addressable Market Share Addressable Market Share Ansell 12% OEM & Private Label Company A 16% OEM & Private Label Company A 5% 26% 32% Company B 3% Company B 8% Company C 3% Company D 2% Company E 2% Comp
Slide 62: Surgical & Safety Solutions SBU
For personal use only Surgical & Safety Solutions SBU $1.3B Market Size for Surgical Gloves Strategic Growth Initiatives Ansell COMMERCIAL EXECUTION AND PROFESSIONAL EDUCATION 19% • Continue to drive shift to synthetic surgical gloves Others 30% • Ongoing clinical education campaigns • Drive acceler
Slide 63: Life Sciences SBU
For personal use only Life Sciences SBU Market Share Market Size Market Size Ansell Market Category 2,500 Category (US$ million) Share Leader $1.9B Hand $580m 18% 2,000 Body & Shoe Cover $600m 1% 1,500 $1.2B Wipes $400m <1% 1,000 Eye Protection $200m <1% 500 Respiratory $120m <1% $21.0 $108.2 Total
Slide 64: Life Sciences SBU Strategic Vision
For personal use only Life Sciences SBU Strategic Vision ACCELERATE ORGANIC GROWTH INORGANIC GROWTH OPPORTUNITIES Increase market share in Hand Protection Expand beyond Hand and Body Protection Accelerate Body Protection offering Pursuing other commercial partnerships & Expand into new / u
Slide 65: Commitment to Innovation in Exam & Single Use
For personal use only Commitment to Innovation in Exam & Single Use 2018 Microflex® 93-850: New standard for chemical splash protection and AQL level in single-use glove Microflex® 93-260: Patent-pending, multi-layer platform for broad chemical protection LifeStar™: Unique double-dipped, two-color s
Slide 66: Commitment to Innovation in Surgical
For personal use only Commitment to Innovation in Surgical 2018 Gammex® PI Ergo-fit: Patent pending glove design to enhance user comfort by incorporation of “stress-relief” features Gammex® Glove-in-Glove System: Patent pending gloving system with “single donning” for easy double gloving Gammex® Cut
Slide 67: Investing for Operational Excellence
For personal use only Investing for Operational Excellence STRATEGIC DIRECTION CAPACITY OPTIMIZATION FOCUS ON CORE CAPABILITIES RETURN ON CAPITAL PROCESS EFFICIENCIES • Continue capacity expansion in key • Invest in innovation with differentiated • Improve returns on fixed assets and categories & op
Slide 68: HGBU - The Winning Equation
For personal use only HGBU - The Winning Equation LEADERSHIP SOLUTIONS FOCUS + Portfolio Breadth • Drive Organic Profitable $719m Growth through Excellence in + Strong Global Brands & Reach the Customer Experience Key global & innovative + Innovation Differentiators • Provide Innovative Solutions ma
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Slide 70: Industrial GBU – Delivering Results
For personal use only Industrial GBU – Delivering Results Steve Genzer 23 October 2017
Slide 71: Contents
For personal use only 01 05 Who the IGBU is Why We Win 02 Where the IGBU CONTENTS plays 03 Competitive Landscape and Strengths 04 IGBU Growth Focus and Strategy
Slide 72: IGBU - Who we are
For personal use only IGBU - Who we are PRODUCTS PRIMARY INDUSTRIES KEY GROWTH BRANDS The broadest portfolio of hand • Automotive and body protection solutions, • Chemical engineered to solve customer’s • Machinery & Equipment problems • Metal Fabrication • Oil & Gas SALES & SALES • Transportation S
Slide 73: IGBU - Who we are – Key Facts
For personal use only IGBU - Who we are – Key Facts $655M 7 State of the art R&D Centers Revenue in >100 independently countries accredited and Strong Innovation $80M EBIT certified #1 Pipeline The World’s generating $100m+ most recognized 400+ hand protection technology brand $235m+ in New Product
Slide 74: Industrial GBU
For personal use only Industrial GBU $3.7B Mechanical Hand Solutions $3.1B Chemical Hand & Clothing Solutions • Fragmented market; Ansell ~2X • Synergistic technology, end- Comp 1 Ansell Comp 1 next largest competitor user markets & applications OEM/Priva te Label Comp 2 • Positioned with recognized
Slide 75: Chemical Hand and Body Solutions – Growing Share
For personal use only Chemical Hand and Body Solutions – Growing Share INTEGRATION & HAND CLOTHING TOTAL SOLUTION EXPANSION Broad Portfolio Broad Product Synergistic end user 4 large distributors Range markets & now stocking Solution Selling applications Clothing Fabric Technology & Technical Expert
Slide 76: IGBU Mechanical SBU Meaningful Differentiation
For personal use only IGBU Mechanical SBU Meaningful Differentiation Strength in Competitive Positioning LOW HIGH REGULATORY TECHNOLOGY & PRODUCT END USER EDUCATION & DISTRIBUTOR COMPETITOR COMPETITOR OPERATIONS GLOBAL BRANDS EXPERTISE R&D PORTFOLIO INTIMACY GUARDIAN PARTNERSHIPS CATEGORY Multinatio
Slide 77: IGBU Mechanical SBU Meaningful Differentiation
For personal use only IGBU Mechanical SBU Meaningful Differentiation Strength in Competitive Positioning LOW HIGH REGULATORY TECHNOLOGY & PRODUCT END USER EDUCATION & DISTRIBUTOR COMPETITOR COMPETITOR OPERATIONS GLOBAL BRANDS EXPERTISE R&D PORTFOLIO INTIMACY GUARDIAN PARTNERSHIPS CATEGORY Multinatio
Slide 78: IGBU Mechanical SBU Meaningful Differentiation
For personal use only IGBU Mechanical SBU Meaningful Differentiation Strength in Competitive Positioning LOW HIGH REGULATORY TECHNOLOGY & PRODUCT END USER EDUCATION & DISTRIBUTOR COMPETITOR COMPETITOR OPERATIONS GLOBAL BRANDS EXPERTISE R&D PORTFOLIO INTIMACY GUARDIAN PARTNERSHIPS CATEGORY Multinatio
Slide 79: IGBU Mechanical SBU Meaningful Differentiation
For personal use only IGBU Mechanical SBU Meaningful Differentiation Strength in Competitive Positioning LOW HIGH REGULATORY TECHNOLOGY & PRODUCT END USER EDUCATION & DISTRIBUTOR COMPETITOR COMPETITOR OPERATIONS GLOBAL BRANDS EXPERTISE R&D PORTFOLIO INTIMACY GUARDIAN PARTNERSHIPS CATEGORY Multinatio
Slide 80: IGBU Chemical SBU Meaningful Differentiation
For personal use only IGBU Chemical SBU Meaningful Differentiation Strength in Competitive Positioning LOW HIGH REGULATORY TECHNOLOGY & PRODUCT GLOBAL END USER EDUCATION & DISTRIBUTOR COMPETITOR COMPETITOR OPERATIONS EXPERTISE R&D PORTFOLIO BRANDS INTIMACY GUARDIAN PARTNERSHIPS CATEGORY Multinationa
Slide 81: IGBU Chemical SBU Meaningful Differentiation
For personal use only IGBU Chemical SBU Meaningful Differentiation Strength in Competitive Positioning LOW HIGH REGULATORY TECHNOLOGY & PRODUCT GLOBAL END USER EDUCATION & DISTRIBUTOR COMPETITOR COMPETITOR OPERATIONS EXPERTISE R&D PORTFOLIO BRANDS INTIMACY GUARDIAN PARTNERSHIPS CATEGORY Hand & Body
Slide 82: IGBU Chemical SBU Meaningful Differentiation
For personal use only IGBU Chemical SBU Meaningful Differentiation Strength in Competitive Positioning LOW HIGH REGULATORY TECHNOLOGY & PRODUCT GLOBAL END USER EDUCATION & DISTRIBUTOR COMPETITOR COMPETITOR OPERATIONS EXPERTISE R&D PORTFOLIO BRANDS INTIMACY GUARDIAN PARTNERSHIPS CATEGORY Hand & Body
Slide 83: IGBU Chemical SBU Meaningful Differentiation
For personal use only IGBU Chemical SBU Meaningful Differentiation Strength in Competitive Positioning LOW HIGH REGULATORY TECHNOLOGY & PRODUCT GLOBAL END USER EDUCATION & DISTRIBUTOR COMPETITOR COMPETITOR OPERATIONS EXPERTISE R&D PORTFOLIO BRANDS INTIMACY GUARDIAN PARTNERSHIPS CATEGORY Hand & Body
Slide 84: IGBU Growth Strategy
For personal use only IGBU Growth Strategy Organic In- Organic CHANNEL & END INNOVATION USER SALES CUSTOMER EMERGING OPTIMIZING LEADERSHIP BRAND EQUITY EXECUTION EXPERIENCE MARKETS OPERATIONS M&A On Time In Full (OTIF); New Product Sales % New Partnership Sales Growth Complaint Sales Growth Yield Im
Slide 85: IGBU Growth Strategy
For personal use only IGBU Growth Strategy Organic In- Organic CHANNEL & END INNOVATION CORE BRAND USER SALES CUSTOMER EMERGING OPTIMIZING LEADERSHIP EQUITY EXECUTION EXPERIENCE MARKETS OPERATIONS M&A OTIF; New Product Sales % New Partnership Complaint Sales Growth Sales Growth Yield Improvement Dea
Slide 86: Ansell Worker Experience Innovation
For personal use only Ansell Worker Experience Innovation Innovation Platforms COMFORT PERFORMANCE PROTECTION TECHNOLOGIES TECHNOLOGIES TECHNOLOGIES Worker Benefits Worker Benefits Worker Benefits Anthropomorphic Dexterity Chemical Moisture Management Ergonomics FUTURE Mechanical FUTURE FUTURE Sensa
Slide 87: IGBU Growth Strategy
For personal use only IGBU Growth Strategy Organic In- Organic CHANNEL & END INNOVATION CORE BRAND USER SALES CUSTOMER EMERGING OPTIMIZING LEADERSHIP EQUITY EXECUTION EXPERIENCE MARKETS OPERATIONS M&A OTIF; New Product Sales % New Partnership Complaint Sales Growth Sales Growth Yield Improvement Dea
Slide 88: IGBU Growth Strategy
For personal use only IGBU Growth Strategy Organic In- Organic CHANNEL & END INNOVATION CORE BRAND USER SALES CUSTOMER EMERGING OPTIMIZING LEADERSHIP EQUITY EXECUTION EXPERIENCE MARKETS OPERATIONS M&A OTIF; New Product Sales % New Partnership Complaint Sales Growth Sales Growth Yield Improvement Dea
Slide 89: IGBU Portfolio
For personal use only IGBU Portfolio BRANDED PRODUCT PORTFOLIO OVERVIEW Our key drivers focus on innovation as well as rejuvenating legacy segments, eliminating complexity & building our core brands to ensure long term differentiation and value. SEGMENT STRATEGIES PRODUCTS IGBU BY BRAND SEGMENT GROW
Slide 90: IGBU Growth Strategy
For personal use only IGBU Growth Strategy Organic In- Organic CHANNEL & END INNOVATION CORE BRAND USER SALES CUSTOMER EMERGING OPTIMIZING LEADERSHIP EQUITY EXECUTION EXPERIENCE MARKETS OPERATIONS M&A OTIF; New Product Sales % New Partnership Complaint Sales Growth Sales Growth Yield Improvement Dea
Slide 91: Investing for Operational Excellence
For personal use only Investing for Operational Excellence STRATEGIC DIRECTION EXPANSION & GROWTH PROCESS & COST REDUCTION RETURN ON CAPITAL • Investment in Vietnam & Xiamen, China • Continuous Yield Improvements >95% • Improve returns on fixed assets and • Backward integration glue lamination • Pro
Slide 92: IGBU Growth Strategy
For personal use only IGBU Growth Strategy Organic In- Organic CHANNEL & END INNOVATION CORE BRAND USER SALES CUSTOMER EMERGING OPTIMIZING LEADERSHIP EQUITY EXECUTION EXPERIENCE MARKETS OPERATIONS M&A OTIF; New Product Sales % New Partnership Complaint Sales Growth Sales Growth Yield Improvement Dea
Slide 93: IGBU – Why We Win
For personal use only IGBU – Why We Win LEADERSHIP SOLUTIONS FOCUS + Portfolio Breadth • Continued momentum of 6 $655m Organic Growth Drivers + Innovation Key + Guardian • Strong Focus on In-organic global & innovative Differentiators Growth Opportunities market leader + Regulatory & Educational Lea
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For personal use only
Slide 95: Ansell’s Go-To-Market
For personal use only Ansell’s Go-To-Market Mark Nicholls & Rikard Froberg 23 October 2017
Slide 96: Contents
For personal use only 01 05 How we go to Why we will win market 02 Who are our CONTENTS customers? 03 What our customers want 04 Growth in Emerging Markets
Slide 97: How we go to market
For personal use only 01 How we go to market
Slide 98: How we go to market
For personal use only How we go to market Distribution Digital End User Channels channels Businesses 10 million workers and healthcare professionals
Slide 99: How we deliver safety solutions to our customers
For personal use only How we deliver safety solutions to our customers Customer focused Teams… • Distributor / Channel Development ..and Key Focus • End User focused • Product / Category Specialist • Core Teams (Industrial, Acute) ..and Vertical • Specialized Vertical Focus Teams 10 million workers
Slide 100: Who are our customers?
For personal use only 02 Who are our customers?
Slide 101: Who are our customers?
For personal use only Who are our customers? Ansell’s customers include end user businesses and distributors, and of course the workers and professionals who depend on our products and services every day Let’s take a look at a typical customer buying journey with Ansell…
Slide 102: Customer Buying Journey
For personal use only CUSTOMER BUYING JOURNEY End user’s buying journey Ansell influences End User Safety Experts to consider new solutions via: • Regulatory & standards bodies • Digital marketing reach • Ansell sales representative engagement • Ansell Guardian® ‐ improved safety and compliance • An
Slide 103: Customer Buying Journey
For personal use only CUSTOMER BUYING JOURNEY End user’s buying journey Ansell influences Distributor Sales Representatives to promote Ansell solutions via: • Digital marketing reach • Ansell sales rep acting as the Distributor’s de facto safety expert • Ansell Guardian® ‐ improved safety and compli
Slide 104: Customer Buying Journey
For personal use only CUSTOMER BUYING JOURNEY End user’s buying journey Ansell influences End User Site / Production Manager to consider Ansell solutions via: • Digital marketing reach • Ansell sales reps supporting trial / evaluation to ensure wearer buy‐in • Ansell Guardian® ‐ increased safety and
Slide 105: What our customers want
For personal use only 03 What our customers want
Slide 106: Our customers want…
For personal use only Our customers want… Innovative products and solutions Our expertize and market leadership “… I trust Ansell to provide me with innovations and new products “… only Ansell has the expertize to solve my problems and improve that allow me to be safer and more productive at my job…
Slide 107: A brief word on Ansell Guardian
For personal use only … a brief word on Ansell Guardian ® Ansell Guardian® partners with our customers to deliver measurable safety and business improvements in today’s ever-changing work environments Increased safety and compliance Improved productivity Cost optimization …and we’re working ha
Slide 108: Our Customers Want... Partnership
For personal use only OUR CUSTOMERS WANT... Partnership “… our strategic partnership with Ansell gives us the trusted How are we doing? relationships, programs and support we need to grow our business … ” 2011 2013 2015 2017 • Development of Channel Development approach as core capability – Strategi
Slide 109: Channel Management / Partnership Update
For personal use only Channel Management / Partnership Update KEY ELEMENTS OF PROGRAM Example: Americas Premium Partners Sales Growth* Comprehensive distributor segmentation +7% 17.5% Standardized Modules with tools and services designed to 4.5% 7.4% grow the joint business Joint plan and targ
Slide 110: Emerging Markets Focus
For personal use only 04 Emerging Markets Focus
Slide 111: Emerging Markets presents a big opportunity
For personal use only Emerging Markets presents a big opportunity REAL GDP GROWTH 2010-2022 EST. (Source: IMF) ESTIMATED # OF WORKERS (millions) Mature Markets 1.9% Mature Markets Emerging Markets Emerging Markets 5.1% 0 20 40 60 80 0 2 4 6 Gloved Hands Bare Hands Emerging Markets offer a big opport
Slide 112: Emerging Markets in the Ansell World
For personal use only Emerging Markets in the Ansell World EMEA – Emerging Markets • Central & Eastern Europe (CEE), Middle East, Africa, Russia, India, Turkey • Sales: ~$100m ASIA • Team: ~135 people LAC • Main hubs: Dubai, Moscow, • China, South‐East Asia, Korea • South America, Caribbean, • Sales
Slide 113: Specific Emerging Markets Characteristics
For personal use only Specific Emerging Markets Characteristics • Product portfolio needs differ from mature markets, e.g. – Pricing – Sizing – Verticals – Products • Some import barriers and protectionism • Changing and increasingly complex regulations – PPE regulations – FDA powder ban extension E
Slide 114: Specific Emerging Markets strategies
For personal use only Specific Emerging Markets strategies 1 LEVERAGE • Advise regulatory bodies to elevate standards REGULATIONS • Capitalize on new regulations such as FDA powder ban 2 EXPAND FOOTPRINT • Feet on the ground • Warehousing 3 TAILOR PRODUCT • Medical glove registrations PORTFOLIO • Ac
Slide 115: EDGE® by Ansell
For personal use only EDGE® by Ansell EDGE SALES RAMP SINCE LAUNCH $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 • Dependable hand and body protection with $6,000,000 consistent quality $4,000,000 • Mechanical, Chemical and Single Use • Production mostly outsourced $2,000,000 • Used as
Slide 116: Why we will win…
For personal use only Why we will win… ….because our key points of differentiation in the marketplace cannot be matched by our competitors Proven go‐to‐market approach Our expertize and market Strengthening strategic built around our intimacy with leadership and service solution partnerships with le
Slide 117: Our customers are at the heart of everything we do!
For personal use only Our customers are at the heart of everything we do!
Slide 118: Capital Markets Day – Operations and R&D
For personal use only ANSELL LIMITED Capital Markets Day – Operations and R&D Darryl Nazareth October 23, 2017
Slide 119: Contents
For personal use only Manufacturing Strategy CONTENTS Innovation Pipeline
Slide 120: Manufacturing Strategy
For personal use only Manufacturing Strategy
Slide 121: Safety DNA – Ansell is Best in Class
For personal use only Safety DNA – Ansell is Best in Class LONG TERM ILLNESS / INJURY (LTI) MEDICAL TREATMENT ILLNESS / INJURY (MTI) 0.8 3.5 Source: Bureau of Labor statistics Source: Bureau of Labor statistics 0.7 3 0.6 2.5 0.5 2 0.4 1.5 0.3 1 0.2 0.5 0.1 0 0 2003 2004 2005 2006 2007 2008 2009 2010
Slide 122: Ansell Operations: Trends -> Strategies -> Actions
For personal use only Ansell Operations: Trends -> Strategies ->Actions MACRO TRENDS MAJOR ACTIONS • Competitive Trends: outsource manufacturer • Continued insourcing of differentiated capability, raising the bar for Ansell’s materials and processes, protecting IP premium value add • Sourcing saving
Slide 123: Operations Progress & Transformation Plans
For personal use only F’18 TRANSFORMATION Operations Progress & Transformation Plans F15 Challenges F16-F17 F18-F20 TRANSFORMATION OBJECTIVES • First Past Yield for Quality, • Optimizing Footprint Labour Productivity, MTE • Relocation of styles to Initiatives • Expanding lower cost factories alterna
Slide 124: Ansell Vietnam – Key Enabler to Transformation
For personal use only Ansell Vietnam – Key Enabler to Transformation VIETNAM INVESTMENTS TO DATE PLANT EXPANSION COMPLETION • Multiple new Hyflex® lines (PU & NBR) to be in place by F20 • Vietnam is highly competitive versus other Ansell locations due to attractive labor & energy costs • $20m invest
Slide 125: Innovation
For personal use only Innovation
Slide 126: Technology Roadmap
For personal use only Technology Roadmap Product Technologies • High Performance, Longer life coatings • Allergy Free, Synthetic • Broader Chemical • High Productivity & Cut Protection Growth • New Body Protection • Higher Performance at lower cost Trends & User Needs • Ergonomic design Comfort & Sk
Slide 127: Ansell Innovation Strength as Competitive Advantage
For personal use only Ansell Innovation Strength as Competitive Advantage HIGHLIGHTS INNOVATION CAPABILITIES • Innovation has driven NPS & Organic Growth • Innovation advantage stems from diversity of global idea creation & idea integration from multiple technology • IGBU NPS as % of total has grown
Slide 128: Fortix™ & Intercept™ Business Impact Achieved
For personal use only Fortix™ & Intercept™ Business Impact Achieved Record New Product Sales Delivered $ 128m+ Grounded in the expansion of exclusive technology platforms across both body & hand protection • 32% Growth year on year • Over $50m+ in Intercept ™ & Fortix™ technology products Combining
Slide 129: 93-260
For personal use only 93-260 Combining Product Technology with Process Innovation
Slide 130: Hyflex® Innovation in IGBU
For personal use only Sri Lanka, Hyflex® Innovation in IGBU Portugal, Mexico, Vietnam Next Generation Lightweight, Highest Cut Performance Multipurpose Coatings High Comfort, Oil Resistant Sleeves for total protection Ansell’s innovation strength is competitive advantage driving sustainable organic
Slide 131: Gammex® Innovation in Surgical
For personal use only Gammex® Innovation in Surgical MELAKA/SRI LANKA High Comfort Synthetics Allergy Free Synthetics Higher Customer Value Enhanced Infection Protection Surgical Productivity Ansell’s innovation strength is competitive advantage driving sustainable organic growth
Slide 132: Microflex® and Alphatec® Innovation
For personal use only Microflex® and Alphatec® Innovation CYBERJAYA High Performance Chemical Chemical Resistant Strip to Pack Technology Next Generation Fire Protection Ansell’s innovation strength is competitive advantage driving sustainable organic growth
Slide 133: Process Innovation Roadmap
For personal use only Process Innovation Roadmap… supporting Ops Strategies TECHNOLOGIES CENTER OF EXCELLENCE Core Mfg Compounding Yarn wrapping Yarn Knitting Post-processing Testing Material Handling Packing Processes & Dipping YARN ALTERNATE PROCESS CONTROLS / AUTOMATED ROBOTICS / AUTOMATED Strate
Slide 134: Capital Investments drives both competitiveness & organic growth
For personal use only Capital Investments drives both competitiveness & organic growth AVERAGE INVESTMENT RETURN % 30%+ SMART PACK PACKAGING • Investments adds new innovation Competitiveness >100% capabilities YARN COVERING EQUIPMENT • Capacity expansion in high growth NPDs 3RD BIOMASS ENERGY 30%+ S
Slide 135: Process Innovation Highlights… Driving Labor Productivity
For personal use only Process Innovation Highlights… Driving Labor Productivity Time‐to‐Wear reduced almost by half Consistent and higher quality Standard Work and automation
Slide 136: Smart Lines & Vertical Lines
For personal use only Smart Lines & Vertical Lines… driving higher productivity & ROCE 30% labor productivity gain Next gen flexible manufacturing
Slide 137: Operations and R&D Key Takeaways
For personal use only Operations and R&D Key Takeaways Achievements: Ansell has restored market leadership in innovation; NPS is driving organic growth Manufacturing again a source of competitive advantage Future: Strong platform now in place for step change cost reduction Healthy pipeline in place
Slide 138: For personal use only
For personal use only
Slide 139: Transformation Program
For personal use only Transformation Program François le Jeune, Peter Dobbelsteijn, Giri Peddinti 23 October 2017
Slide 140: Contents
For personal use only 01 F’17 Transformation Program 02 Global Supply CONTENTS Chain back bone 05 New Journey 03 Information Technology Support 04 Past & New Restructurings
Slide 141: F’17 Transformation Program
For personal use only 01 F’17 Transformation Program
Slide 142: Transformation Program With Total Cash Investment Of $70-100m Over 3 Years
For personal use only We Announced In June Our Transformation Program With Total Cash Investment Of $70-100m Over 3 Years KEY INITIATIVES KEY INITIATIVES 2 GBUs Industrial & Healthcare Simplified, lower cost organization Smaller flexible dipping lines more agile and responsive P&L cost of P&L Benefi
Slide 143: Our Transformation Program Will Deliver $30m P.A. Saving And $30m Cash Benefits
For personal use only Our Transformation Program Will Deliver $30m P.A. Saving And $30m Cash Benefits Deliver SG&A Efficiencies > $12m • Combine resources & Scale down organization • Remove organization layers • $9m out of $12m savings target already actioned with $6m of F’18 impact Build Operation
Slide 144: Global Supply Chain backbone
For personal use only 02 Global Supply Chain backbone
Slide 145: Global Supply Chain
For personal use only Global Supply Chain Why will the Global Supply Chain improvement initiative give us a competitive advantage Consistent customer feedback via customer surveys over 4 years ‐innovative products ‐reliable quality ‐value proposition through Guardian and medical training program Hig
Slide 146: Significant Opportunity To Improve Supply Chain Cost Effectiveness
For personal use only Significant Opportunity To Improve Supply Chain Cost Effectiveness Ansell Inbound Origin Port Destination Port Inbound Distribution Customer Plants / Outbound Transportation Transportation Center / Outsourcing Inbound Transportation – Drayage – Drayage Warehousing Manufacturing
Slide 147: Building Competitive Advantage In The Supply Chain
For personal use only Building Competitive Advantage In The Supply Chain F16-F17 F18-F20 • Systems upgraded to improve service • Integrated end to end planning tool • Warehouses consolidation • Minimized air freight • Bring inbound transportation management in‐house • Leverage strong systems and glo
Slide 148: Information Technology Support
For personal use only 03 Information Technology Support
Slide 149: Information Technology Progress And Objectives
For personal use only Information Technology Progress And Objectives F13-F16 F16-F17 F18-F20 • Oracle platform in US optimized, • Completed Sexual Wellness separation • Completion of ERP integration to 100% delivering expected capability flawlessly, in a short timeline. Further SAP or Oracle across
Slide 150: Past & New Restructurings
For personal use only 04 Past & New Restructurings
Slide 151: We Have Reshaped Ansell Through Restructuring Plans
For personal use only We Have Reshaped Ansell Through Restructuring Plans June F’14 June F‘15 June F’17 Operations Efficiency & Portfolio & Growth Brand Focus SG&A Efficiency Focus Growth Focus Optimize Portfolio Optimize further Portfolio Re-aligning to two GBUs and - Build core growth Brands - Exi
Slide 152: We Have Delivered On Our Past Restructuring Promises
For personal use only We Have Delivered On Our Past Restructuring Promises Portfolio Restructuring - Now complete F’14 & F’15 Restructuring Plans have • F’14 & F’15: GPADE Benefits $2m paid out within 3 years GROWTH BRANDS • Lead via Core Global Growth Brands F13: 54% F17: 62% • Rationalize Brands &
Slide 153: New Journey
For personal use only 05 New Journey
Slide 154: Our Transformation Journey Will Benefit Our Clients And Our Shareholders
For personal use only Our Transformation Journey Will Benefit Our Clients And Our Shareholders Built on Ansell Best addressing Delivering well experience customer needs beyond Restructuring Applied learnings from prior changes Focused and Agile P&L Savings >$30m Holistic integrated program Additiona
Slide 155: For personal use only
For personal use only
Slide 156: Capital Markets Day – Closing Session
For personal use only Capital Markets Day – Closing Session Magnus Nicolin, MD and CEO Neil Salmon, CFO and Debbie Lynch, CHRO October 23, 2017
Slide 157: Objectives & Reasons to Invest in Ansell
For personal use only 01 Objectives & Reasons to Invest in Ansell
Slide 158: Summary of Why Ansell Will Win
For personal use only Summary of Why Ansell Will Win MANUFACTURING AND TRANSFORMATION, HGBU IGBU SALES R&D GLOBAL SUPPLY & IT Wins as an integrated Most extensive portfolio Guardian and Clinical Restored market • We are reshaping value-added player with offering Hand & Body support to solve leadersh
Slide 159: Base Business Sales and EBIT Growth Targets
For personal use only Base Business Sales and EBIT Growth Targets Organic Revenue Growth Earnings Per Share ROCE Targeting 3-5% per annum on avg Targeting 5-10% per annum on avg Improving to 14-15% by F’20 • Estimated current market average • EPS Growth target of 4-8% from • EBIT leverage on organic
Slide 160: Capital Deployment
For personal use only Capital Deployment Target Leverage Ratio Dividends Net Debt 1.5 – 2.0 x EBITDA Progressive Dividend Policy to Continue • Restoring target leverage plus ongoing cash generation • 14 years of Dividend Growth creates ability for: • Targeting continued increases - debt funded acqui
Slide 161: Ansell Well Placed To Deliver Financial Targets Over Coming 3-4 Years
For personal use only Ansell Well Placed To Deliver Financial Targets Over Coming 3-4 years Performance Drivers Results Also Influenced by Below Factors • After strong results F’10-F’14, results in F’15 and F’16 • Foreign Exchange remains key exposure to Group affected by external factors and some o
Slide 162: Benchmarking Ansell to Peers is Challenging
For personal use only Benchmarking Ansell to Peers is Challenging. Consider an Alternative Peer Set Direct Competitors Other Glove Companies Alternative Peer Set Little info available Not directly comparable Consider broader comparatives Ansell’s direct competitors are either • Public financials on
Slide 163: Ansell is Leading the Industry in Corporate Social Responsibility
Ansell is leading the Industry in Corporate Social For personal use only Responsibility Corporate Social Responsibility CSR Maturity “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of lif
Slide 164: Ansell has Compelling CSR Practices vs Industry Benchmark
For personal use only Ansell has Compelling CSR Practices vs Industry Benchmark West Watson MCR Chester Superior Bab Dale Halyard Kimberly- Cardinal MAPA Safety Aurelia Globus ATG Medline Semperit Mölnlycke Honeywell Safety Protective Glove Gloves Health Clark Health Products Gear Corporate Responsi
Slide 165: Why Ansell? It’s the People & Their Passion
For personal use only Why Ansell? It’s the People & Their Passion Passion for Safety Strong bench through focused development Orchestrated Leadership Succession Diversity of Culture and Gender High Engagement at the plant level
Slide 166: Value Creation Drivers For Ansell
For personal use only Value Creation Drivers For Ansell Set for Growth Resilient Business Model Strong Cashflow In attractive markets Long record of value creation And strong balance sheet • Leading positions in key • Attractive margins, with • Consistent strong cashflow markets that are forecast to
Slide 167: Ansell Strategic Model For Shareholder Value Creation
For personal use only Ansell Strategic Model For Shareholder Value Creation By Being Ansell will Business Performance Targeting Differentiated Gain Share 3‐5% Organic Growth p.a. (8 dimensions) • Organically through customer focus 5‐10% EPS Growth p.a. • by acquisition Focused ROCE improving to 14‐1
Slide 168: Recapping Key Points of Today
For personal use only Recapping Key Points of Today WHY INVEST IN ANSELL? FUTURE GOALS • History of driving solid financial results and a doubled share- • Management team is confident that we’re on right path price since 2010 for sustainable growth and shareholder value creation • Growing markets wi
Slide 169: For personal use only
For personal use only
Slide 170: Appendix: Restated Continuing Business Segment History
For personal use only Appendix: Restated Continuing Business Segment History F’13 F’14 F’15 F’16 F’17 GBU US$m US$m US$m US$m US$m Sales 650.2 716.5 668.5 654.8 655.9 • F13-F16 GBU EBIT Industrial EBIT 89.1 90.5 89.0 82.8 79.8 restated to include % Margin 13.8% 13.1% 13.9% 13.6% 12.2% overhead costs
Slide 171: Ansell Management Team & Participants
For personal use only ANSELL LIMITED Capital Markets Day Ansell Management Team & Participants October 23, 2017
Slide 172: Ansell Executive Leadership Team
For personal use only Ansell Executive Leadership Team (“ELT”) Chrystelle Fontan Michael Gilleece Magnus Nicolin Peter Dobbelsteijn Rikard Froberg Steve Genzer Neil Salmon Senior Vice President Senior Vice President President ‐ Industrial Senior Vice President Managing Director and Chief Financial O
Slide 173: Ansell Executive Leadership Team Biographies
For personal use only Ansell Executive Leadership Team Biographies Magnus Nicolin Managing Director and Chief Executive, Brussels, Neil Salmon Belgium Chief Financial Officer, Brussels, Belgium BA, MBA BA Mr. Nicolin, a Swedish citizen, joined Ansell in 2010. Neil was appointed CFO of Ansell in 2013
Slide 174: Ansell Executive Leadership Team Biographies
For personal use only Ansell Executive Leadership Team Biographies Peter Dobblesteijn Chrystelle Fontan Rikard Froberg Steve Genzer Senior Vice President – Global Supply Chain Senior Vice President ‐ Quality & Regulatory President ‐ Industrial Global Business Unit Chief Commercial Officer – EMEA & A
Slide 175: Ansell Executive Leadership Team Biographies
For personal use only Ansell Executive Leadership Team Biographies Michael Gilleece Debbie Lynch Joe Kubicek Francois Le Jeune Senior Vice President – Corporate General Counsel Chief Human Resources Officer President ‐ Healthcare Global Business Unit Senior Vice President Business Development, BA, J
Slide 176: Ansell Executive Leadership Team Biographies
For personal use only Ansell Executive Leadership Team Biographies Darryl Nazareth Mark Nicholls Giri Peddinti Senior Vice President, Global Operations & R&D CCO‐Americas & Global Accounts Senior Vice President and Global CIO Cyberjaya, Malaysia MetroPark, NJ, USA MetroPark, NJ, USA BS, MS, MBA BA,
Slide 177: Ansell Team Biographies
For personal use only Ansell Team Biographies Jocelyn Petersen David Graham Steve Morgan VP – Global Financial Planning & Analysis CCO‐Americas & Global Accounts Managing Director Malaysia Nitritex MetroPark, NJ, USA Melbourne, Australia Malaysia BS BS Steve has 11 years in Cleanroom / Life‐Science
Slide 178: Ansell Team Biographies
For personal use only Ansell Team Biographies Monica Sagardoy Victor Chen Barry Van Den Holden Keith Chui Sr Director, Global Portfolio: Surgical & LifeSciences Senior Director of CPC Operations Director, Regional Sales Senior Manager, Guardian Services Melbourne, Australia Xiamen, China Melbourne,