Ansell Limited · ASX:ANN
Ansell — H1 F2021 Earnings Presentation
31 slides from Ansell's earnings presentation, Feb 16, 2021
Slide 1: F'21 Half Year Results
F’21 Half Year Results Six Months Ending 31 December 2020 16 February 2021 Presentation by Magnus Nicolin – Managing Director & Chief Executive Officer Zubair Javeed – Chief Financial Officer
Slide 2: Disclaimer and Non-IFRS Measures
HALF YEAR RESULTS F'21 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
01 Business Update Magnus Nicolin CONTENTS 02 Financial Results Zubair Javeed 03 F’21 Outlook Magnus Nicolin 04 Appendix
Slide 4: Business Update
Business Update 01 Magnus Nicolin
Slide 5: Ansell, The Safety Company
HALF YEAR RESULTS F'21 Ansell, The Safety Company LOST TIME INJURIES (LTI) ANSELL SAFETY PRACTICES ▪ Strong safety performance – recording low injury rates compared to global peers ▪ Maintaining and reinforcing existing COVID-19 safety practices – further enhancing actions to protect our employees,
Slide 6: Update on COVID-19
HALF YEAR RESULTS F’21 Update on COVID-19 WORLDWIDE COVID-19 CASES CURRENT IMPACT ON SOURCING & MANUFACTURING 900 40 MCO in place, disruption Cumulative Cumulative at some of our outsourced Cases suppliers but limited Thailand Limited COVID-19 800 Deaths 35 cases currently ~108m ~2.4m Malaysia impac
Slide 7: Strong Performance Across All Strategic Business Units
HALF YEAR RESULTS F’21 Strong Performance Across All Strategic Business Units KEY POINTS Sales EBIT² Profit Attributable • Strong Organic Growth¹ of 22.9%. HGBU $937.8m $147.4m $106.5m delivered +37.3% with strong volume growth +24.5% Growth +60.6% Growth +61.9% Growth across all SBUs and favourable
Slide 8: Accelerating Sales and Earnings Growth
HALF YEAR RESULTS F’21 Accelerating Sales and Earnings Growth SALES EBIT EPS 1,000 160 90 938 147 82.9 900 860 80 140 128 71.7 800 768 774 753 711 722 725 120 115 70 65.4 700 664 109 96 58.6 100 60 600 92 84 88 82 50.1 ($m) 50 ($m) (¢) 500 80 46.1 44.5 43.4 400 40 36.5 60 300 40 30 200 20 20 100 0 0
Slide 9: Exam/SU SBU Performing Well Across the Value Chain
HALF YEAR RESULTS F’21 Exam/SU SBU Performing Well Across the Value Chain ORGANIC GROWTH OPERATIONS UPDATE COMMERCIAL UPDATE • Focused on getting additional SU capacity in • Demand still exceeds supply resulting in 47.5% Thailand started to internally manufacture more continuing price increases. Imp
Slide 10: Surgical SBU Gaining Market Share
HALF YEAR RESULTS F’21 Surgical SBU Gaining Market Share ORGANIC GROWTH OPERATIONS UPDATE COMMERCIAL UPDATE 19.6% • Most lines are currently running at full capacity • Signed multiple large long term supply agreements and several new lines are coming on stream for several large GPO’s, distribution p
Slide 11: Life Sciences Strategy Continues to Deliver Strong Growth
HALF YEAR RESULTS F’21 Life Sciences Strategy Continues to Deliver Strong Growth ORGANIC GROWTH OPERATIONS UPDATE COMMERCIAL UPDATE 32.3% • Significant investment to expand clean- • Life Sciences continues to see strong 22.4% room assembly and packaging growth from pharmaceutical & medical 9.5% • In
Slide 12: Healthcare GBU Highlights
HALF YEAR RESULTS F'21 Healthcare GBU Highlights SUMMARY HIGHLIGHTS GROWTH CC GROWTH SALES PERFORMANCE (ORGANIC GROWTH) F’20 H1 F’21 H1 % % • Strong performance across all SBU’s (Exam/SU +47.5%, Surgical Sales $394.9m $549.7m 39.2% 37.3% & HSS +19.6% and Life Sciences +32.3%) EBIT² $54.6m $100.4m 83
Slide 13: Mechanical Portfolio with Customer Focus Shifting
HALF YEAR RESULTS F’21 Mechanical Portfolio with Customer Focus Shifting ORGANIC GROWTH OPERATIONS UPDATE COMMERCIAL UPDATE 0.5% • Investments at Sri Lanka to expand our • Strategic pivoting to support areas with differentiated FORTIX™ range of multi- increased demand (1.0%) purpose gloves i.e. HyFl
Slide 14: Chemical SBU 'Multi-Risk' Capability Driving Share Gain
HALF YEAR RESULTS F’21 Chemical SBU ‘Multi-Risk’ Capability Driving Share Gain ORGANIC GROWTH OPERATIONS UPDATE COMMERCIAL UPDATE • With strong clothing demand, Xiamen and • Increasing demand for food 21.8% Sri Lanka capacity increased >2x, selected processing and industrial cleaning 12.6% styles al
Slide 15: Industrial GBU Highlights
HALF YEAR RESULTS F'21 Industrial GBU Highlights SUMMARY HIGHLIGHTS GROWTH CC GROWTH SALES PERFORMANCE (ORGANIC GROWTH) F’20 H1 F’21 H1 % % • Strong performance from Chemical +21.8% more than offset Sales $358.4m $388.1m 8.3% 7.0% weakness in Mechanical -1.0% EBIT¹ $44.4m $57.9m 30.4% 36.3% • Strong
Slide 16: Sustainability Highlights
HALF YEAR RESULTS F’21 Sustainability Highlights HUMAN RIGHTS ENVIRONMENT • Implemented a highly efficient COVID-19 risk management • Alignment with TCFD – rolling out corporate level climate program in all our plants at the onset, additional measures change scenario analysis across Ansell’s entire
Slide 17: Financial Results
02 Financial Results Zubair Javeed
Slide 18: Profit & Loss Summary
HALF YEAR RESULTS F'21 Profit & Loss Summary Growth Brands Continue Strong Performance SUMMARY +9% YoYHIGHLIGHTS ($m) F’20 H1 F’21 H1 % CC %¹ Sales 753.3 937.8 24.5% 22.9% • Strong organic growth (Volume +12.3%, Price/Mix +10.6%). Price growth due to pricing initiatives and pass through of cost i
Slide 19: Raw Material Cost Impact
HALF YEAR RESULTS F’21 Raw Material Cost Impact UNPRECEDENTED INCREASES IN OUTSOURCED NITRILE EXAM COSTS • The largest raw material category is Fibres & Engineered Yarns at 31%. • NBR and NRL raw materials combined now represent ~36% of raw material mix, slightly up from F’20 H1 levels. • F'21 H1 wa
Slide 20: Cash Used To Reinvest For Additional Growth
HALF YEAR RESULTS F'21 Cash Used To Reinvest For Additional Growth 200.0 (74.3) 4.0 (10.9) 100.0 175.3 (45.0) 105.0 (8.9) F’21 H1 (28.2) ($m) 12.0 (1.9) (35.7) 0.0 (33.2) (58.8) (100.0) EBITDA Working Others Net Lease Net Capex Net Int Taxes Op Cash Acq/ Dividend Buyback FX Net Debt NIBD Mvt Cap Rec
Slide 21: Solid Balance Sheet
HALF YEAR RESULTS F'21 Solid Balance Sheet KEY POINTS ($m) F’20 H1 F’20 F’21 H1 • Solid balance sheet provides significant flexibility for further strategic Fixed Assets 237.4 251.5 284.7 expansion and investment Intangibles 1,084.7 1,065.9 1,093.1 • Strong liquidity with ~$560m of cash and committe
Slide 22: F'21 Outlook
F’21 Outlook 03 Magnus Nicolin
Slide 23: F'21 EPS Guidance Upgraded
HALF YEAR RESULTS F'21 F’21 EPS Guidance Upgraded EPS RATIONALE F’21 GUIDANCE – EPS¢ Macro EPS in US¢ • Expectations are that COVID-19 will continue to impact the world for some time. YoY CC 170.0 Assuming the pandemic is under control towards end of F’22, GDP growth will +28-36% accelerate further
Slide 24: Appendix
HyFlex: GAMMEx AlphaTec’ MICR@®FLEX’
Slide 25: Ansell Group Performance Summary
HALF YEAR RESULTS F'21 Ansell Group Performance Summary Operating Cash Sales EBIT Profit Attributable EPS ROCE Flow¹ Reported 24.5% Margin improved Reported 61.9% Reported 65.5% Improved Cash Conversion CC 22.9% by +353bps CC 61.3% CC 64.7% by +304bps 71.2%¹ Organic 22.9% from 12.2% to 15.7% $937.8m
Slide 26: FX – Revenue & EBIT Impact of FX Movements
HALF YEAR RESULTS F’21 FX – Revenue & EBIT Impact of FX Movements Change in average rates of major revenue and cost currencies Currency Impact from Continuing Operations Comment Revenue EBIT General trend of USD weakness with improvement in EURUSD a F’21 H1 vs F’20 H1 $10.0m $1.7m key driver Net for
Slide 27: Constant Currency
HALF YEAR RESULTS F'21 Constant Currency CONSTANT CURRENCY ORGANIC CONSTANT CURRENCY ▪ The presentation of constant currency information is designed to facilitate ▪ Organic constant currency is constant currency information (as described comparability of reported earnings by restating the prior peri
Slide 28: Ansell Fact Sheet
HALF YEAR RESULTS F'21 Ansell Fact Sheet KEY FIGURES • Booked Tax Losses at 31 December 2020: $31.2m (Australia $24.1m) • Unbooked Tax Losses at 31 December 2020: $7.7m (Tax Effected) (Australia $nil) • Unbooked Capital Losses at 31 December 2020: $65.9m • Interest Rate on Borrowings for F’21 H1: 3.
Slide 29: Segment History – Continuing Businesses
HALF YEAR RESULTS F'21 Segment History – Continuing Businesses F’14 F’15 F’16 F’17 F’18 F’19 F’20 F’18 H1 F’19 H1 F'20 H1 F’21 H1 Sales 716.5 668.5 654.8 655.9 715.5 703.7 719.1 349.4 342.2 358.4 388.1 Industrial EBIT 90.5 89.0 82.8 79.8 86.9 98.7 92.4 38.4 45.2 44.4 57.9 % Margin 12.6% 13.3% 12.6%
Slide 30: Glossary
HALF YEAR RESULTS F'21 Glossary AUD – Australian Dollar FX – Foreign Exchange NBR – Nitrile Butadiene Rubber CAD – Canadian Dollar GBP – Great British Pound NIBD – Net Interest Bearing Debt CAGR – Compound Annual Growth Rate GBU – Global Business Unit NRL – Natural Rubber Latex Capex – Capital Expen
Slide 31: Ansell
Ansell HyFlex: cAmMMex Alphatec’ MICR®FLEX’