Slide 1: Ansell Limited Full Year Results 30th June 2010
For personal use only Ansell Limited Full Year Results 30th June 2010 Magnus Nicolin – Chief Executive Officer Rustom Jilla – Chief Financial Officer
Slide 2: F'10 - Agenda
F’10 - Agenda For personal use only Business Overview – Magnus Nicolin Financial Report – Rustom Jilla Strategy/Outlook – Magnus Nicolin US dollars used in all slides unless otherwise specified 2
Slide 3: F'10 – Outstanding Results
F’10 – Outstanding Results For personal use only F’09 F’10 % Sales ($M) 1,002.9 1,086.2 + 8 EBIT ($M) 107.3 127.3 + 19 PA ($M) 90.2 106.2 + 18 EPS (US¢) 66.3 79.7 + 20 3
Slide 4: The Year in Perspective
F’10 – The Year in Perspective For personal use only Positives Negatives Faster sales rebound than Consumer underperformed expected from the GFC helped Latex and commodity costs Occupational increased and Euro weakened SKYN® going global as the year progressed Anti microbial surgical glove Faster th
Slide 5: Portfolio Performance
F’10 – Portfolio Performance For personal use only SALES SEGMENT EBIT F’10 v F'09 = 8% F’10 v F'09 = 19% Occupational Professional Consumer Occupational Professional Consumer Asia Pacific EMEA Americas > +5% From 0% to +5% < 0% Occupational: Solid, broad, recovery from GFC. Sales mix, FX, higher fac
Slide 6: Occupational Business Overview
F’10 – Occupational Business Overview For personal use only Occupational accounts for 48% of Ansell’s Revenue and 55% of Segment EBIT $M F’09 F’10 HyFlex® 120.5 144.0 15% vol growth. All regions up. Other General Purpose 107.8 112.7 Chemical & Liquid Handling 90.8 102.7 10% vol. growth. All regions
Slide 7: End User total costs of operations
F’10 – End User total costs of operations For personal use only Why is this so Important? According to the US Bureau of Labor Statistics*, US workers had more than 137,000 lost time hand and finger injuries in 2008. Medical costs for each hand injury, on average, exceeded $7,500. Hand disabling inju
Slide 8: Professional Business Overview
F’10 – Professional Business Overview For personal use only Professional accounts for 33% of Ansell’s Revenue and 34% of Segment EBIT $M F’09 F’10 Surgeons: Synthetic 26.5 32.7 16% Vol growth, across all regions Powder Free 98.1 110.5 7% Vol growth, mainly EMEA & AP Powdered 62.4 59.6 2% Vol reducti
Slide 9: Infection Control is the future
F’10 – Infection Control is the future For personal use only Up to 50% of gloves can be perforated during aggressive surgery (e.g., Orthopedic) resulting in possible cross-contamination i Gammex® AMT™ Agar Plate Finger Print Test A 1st generation Antimicrobial Surgical Glove designed to provide addi
Slide 10: Consumer Business Overview
F’10 – Consumer Business Overview For personal use only Consumer accounts for 19% of Ansell’s Revenue and 11% of Segment EBIT $M F’09 F’10 Condoms: Branded 127.6 137.4 Continued growth in SKYN® and Zero® Tenders/PL 21.3 16.1 Further delays in Tenders HHG/ Disposable Gloves 30.9 37.5 14% HHG volume g
Slide 11: CEO Assessment of Ansell's Strategic Position & its Capabilities
F’10 – CEO Assessment of Ansell’s Strategic Position & its Capabilities For personal use only Strengths Opportunities Rapid recovery from GFC Weak market shares in many verticals such as surgery Strong cash flow centres, food, construction, Strong balance sheet first responders, agriculture and jani
Slide 12: Reorganising for Faster Growth
F’10 – Reorganising for Faster Growth For personal use only Rationale for Change Modest (but profitable) growth over last few years Competitive environment rapidly changing Need to address identified impediments to growth Changes made will: Improve decision making and quality of execution Reduce com
Slide 13: Rustom Jilla, Chief Financial Officer – Financial Results
For personal use only Rustom Jilla Chief Financial Officer Financial Results
Slide 14: Financial Overview
F’10 – Financial Overview For personal use only Solid top line growth Broad-based Occupational strength Strong growth in premium brands (i.e. HyFlex®, Gammex®, SKYN®) Fast Action via Early Restructuring has lowered cost base. Year on year EPS benefit of US9¢ in F’11 reconfirmed Contribution from a w
Slide 15: P&L
F’10 – P&L For personal use only P&L ($M) F’08 F’09 F’10 Sales 1,116.0 1,002.9 1,086.2 + 8% (FX benefit ~3%) GPADE 384.0 338.6 402.0 Volumes, mix, FX SG&A 272.9 231.3 274.8 Restructuring, FX, incentives EBIT 111.1 107.3 127.3 + 19% Net Interest (9.2) (9.3) (8.6) Taxes (7.5) (4.1) (9.6) Minority Inte
Slide 16: Impact of DTA & NOTI on EPS
F’10 – Impact of DTA & NOTI on EPS For personal use only EPS (US¢) H1 H2 Full Year Y on Y F’09 F’10 F’09 F’10 F’09 F’10 Growth EPS before DTA/NOTI 34.7 34.2 26.5 36.0 61.2 70.2 15% Plus DTA 5.1 6.1 - 4.1 5.1 10.2 Less NOTI - - - (0.7) - (0.7) EPS after DTA/NOTI 39.8 40.3 26.5 39.4 66.3 79.7 20% Sinc
Slide 17: Solid Cash Generation
F’10 – Solid Cash Generation For personal use only Cash Flow ($M) F’08 F’09 F’10 EBIT 111.1 107.3 127.3 Depreciation & Asset Write-offs 30.3 23.2 22.9 Working Capital (11.8) 25.0 5.9 Taxes Paid (19.1) (10.5) (13.1) Capital Expenditure (21.4) (14.0) (28.1) Interest Paid (Net) (9.3) (9.5) (7.9) Free C
Slide 18: Working Capital
F’10 – Working Capital For personal use only Working Capital Debtor Days Outstanding (Average) 60 Days 57.3 80 78.0 52.5 52.9 75 74.5 50 70.8 70 40 65 60 30 F'08 F'09 F'10 F'08 F'09 F'10 5 Stock turns (Average) 50 Days Payable Outstanding (Average) 40.1 40.3 3.9 40 36.5 4 3.7 3.5 30 3 20 2 10 F'08 F
Slide 19: Strong Balance Sheet
F’10 – Strong Balance Sheet For personal use only 30 June 30 June 30 June Balance Sheet ($M) 2008 2009 2010 Fixed Assets 161.3 142.7 139.5 Intangibles 302.0 286.5 304.7 Other Assets/Liabilities (29.6) (11.9) (22.7) Working Capital 224.2 202.2 196.1 Net Operating Assets 657.9 619.5 617.6 Net Interest
Slide 20: Performance for Shareholders
F’10 – Performance for Shareholders For personal use only Ansell Share Price Equity Performance Measures TSR TSR TSR 15 -22% -2% 53% 25 80 14 $13.13 66.1 66.2 79.7 13 $12.20 20 19x $9.26 20.2 60 12 16.4 18.1 18.0 15 11 53.4 10 $8.77 13x 14x 40 6,274 10 11x 9 8 5,215 20 5 7 4,300 Return on Equity % P
Slide 21: Reorganising for Faster Growth
F’10 – Reorganising for Faster Growth For personal use only NEW PAST ORGANIZATION OCCUPATIONAL Core verticals INDUSTRIAL (~$526m) New / (~$394m) under -penet r a te d vert icals NEW VERTICALS & D ispos able Gloves ADVANCED CONCEPTS & CONSUMER Household (~$169m) (~$207m) Condoms & Lubricant SEXUAL HE
Slide 22: F'10 – Summary of Outlook
F'10 – Summary of Outlook For personal use only F’11 Opportunities F’11 Risks Ramp-up of global economy (with benign Economic growth falters interest rates and inflation) Raw materials, shipping, energy and Potential for cost decreases (latex, oil) Asian labour cost increases New Sales & Marketing o
Slide 23: Magnus Nicolin, Chief Executive Officer – 2011 Plan & Guidance
For personal use only Magnus Nicolin Chief Executive Officer 2011 Plan & Guidance
Slide 24: Ansell Business Model
F’10 - Ansell Business Model For personal use only STRONG INCREASING BALANCE EPS SHEET INNOVATION & GROWING ACQUISITIONS EBIT GLOBAL BRANDS & QUALITY EFFECTIVE PRODUCTS CAPITAL MANAGEMENT BEST PEOPLE GLOBAL MARKET LEADERSHIP A Quality Company, Delivering Superior TSR 24
Slide 25: GBU Overview
F’10 - GBU Overview For personal use only Global Market for Industrial Solutions Ansell is the leading player in a market with a fragmented competitive environment. 23% 17% 17% 13% 12% 7% 6% 3% 2% Other relevant branded players are Showa, Machinery & Equipment Metal Fabrication Chemical, Pharma & CE
Slide 26: Strategy for F'11-F'13
F’10 – Strategy for F’11-F’13 For personal use only 1. Build on strong base 2. Implement Plan for accelerated growth in F’11 – F’13 4 Global Business Units Activate our balance sheet Look to develop global brands – HyFlex®, Gammex® and SKYN® 3. Reduce complexity & cost Integrated Operations team to
Slide 27: Guidance for F'11
F’10 – Guidance for F’11 For personal use only Outlook Good momentum on exiting F’10 Market uncertainty remains. Slightly lower growth expected in the Americas, slightly higher growth in EMEA and continued strong growth in Asia (excluding Japan). Ansell is being reshaped into a more agile and respon
Slide 28: Ansell Fights Back
For personal use only 28 Ansell Fights Back