Ansell Limited · ASX:ANN
Ansell — H1 FY24 Earnings Presentation
31 slides from Ansell's earnings presentation, Feb 20, 2024
Slide 1: Ansell FY24 Half Year Results
ANSELL FY24 HALF YEAR RESULTS 20 February 2024 1
Slide 2: Disclaimer and Non-IFRS Measures
HALF YEAR RESULTS FY24 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
CONTENTS 1. Business Update Neil Salmon 2. Financial Results Zubair Javeed 3. FY24 Outlook Neil Salmon 4. Q&A 3
Slide 4: 1. Business Update
1. Business Update 4
Slide 5: Safety & Sustainability Highlights
HALF YEAR RESULTS FY24 Safety & Sustainability Highlights Focus Area Goal Progress Assessment Safety High level of employee reporting • On track. Continued high rates of reporting and risk identification • Dec-23 TRIFR of 0.785 higher than Jun-23, management focused on driving improvement 10% annual
Slide 6: Performance Overview
HALF YEAR RESULTS FY24 Performance Overview Performance Highlights Summary Financials What We Expected H1 Results ($m)1 FY24 H1 CC % ∆2 • Strong Industrial result with 1.9% constant Sales 784.9 (7.6%) • Sales growth in Industrial currency2 sales growth and margin improvement GPADE3 246.5 (2.0%) • He
Slide 7: FY24 H1 Performance
HALF YEAR RESULTS FY24 Sales Highlights Industrial GBU Healthcare GBU Constant Currency1 growth: 1.9% Constant Currency1 growth: (15.1%) Mechanical Chemical Exam/SU Surgical Life Sciences CC1 growth: 2.4% CC1 growth: 1.7% CC1 growth: (9.9%) CC1 growth: (22.9%) CC1 growth: (12.3%) • Growth in Emergin
Slide 8: Ongoing Growth Investments
HALF YEAR RESULTS FY24 Ongoing Growth Investments Emerging Markets Presence Manufacturing Capacity for Differentiated Products ($m) FY24 H1 CC1 % ∆ • India greenfield Surgical plant construction progressing Sales 202.3 (2.2%) – Targeting completion of process and utilities buildings by end of % Anse
Slide 9: As Markets Normalise After Pandemic Disruptions, Changes Made Position Ansell For Success
HALF YEAR RESULTS FY24 As Markets Normalise After Pandemic Disruptions, Changes Made Position Ansell For Success Jul 2021 Jan 2022 Jul 2022 Jan 2023 Jul 2023 Go Forward Long period of market dislocation post peak period of pandemic demand, now coming to an end Markets now Exam/SU destocking moving p
Slide 10: Across A Range Of Metrics, Progress Is Evident
HALF YEAR RESULTS FY24 Across A Range Of Metrics, Progress Is Evident Progress Over Last Two Years Actions Key Metrics Go Forward Objectives 1 Manufacturing and Sourcing Optimised Implemented new Supplier Management Framework 91% major FG suppliers rated A or B, up from 65% Rebalance geo-sourcing mi
Slide 11: Accelerated Productivity Investment Program: Strong Progress in H1
HALF YEAR RESULTS FY24 Accelerated Productivity Investment Program: Strong Progress in H1, Costs Funded From Inventory Reduction FY24 H1 – Status Update FY24 H1 Savings Work Stream Progress P&L Pre-Tax From Cost ($m) Organisation • Implementation of new • Complete. Reduction in headcount of ~90 15.5
Slide 12: Accelerated Productivity Investment Program: Increase Expected in Total Savings
HALF YEAR RESULTS FY24 Accelerated Productivity Investment Program: Increase Expected in Total Savings Expected Total Program Costs & Benefits ($m) Pre-Tax P&L Pre-Tax Savings Cash Cost (FY26 Annualised) Scope Objective Original Updated Original Updated Organisation & Simplify & Streamline Our Manuf
Slide 13: 2. Financial Results
2. Financial Results 13
Slide 14: Profit & Loss Summary
HALF YEAR RESULTS FY24 Profit & Loss Summary P&L Summary Comments ($m) FY23 H1 FY24 H1 ∆% CC1 % ∆ • Sales decline driven by expected Healthcare customer Sales 835.3 784.9 (6.0%) (7.6%) destocking, includes $13.9m favourable FX impact Cost of Goods Sold (529.7) (486.3) (8.2%) (10.9%) • Planned lower
Slide 15: Industrial GBU
HALF YEAR RESULTS FY24 Industrial GBU Comments Industrial GBU – P&L Summary Sales Performance ($m) FY23 H1 FY24 H1 ∆% CC1 % ∆ • Sales increase largely driven by carryover pricing from FY23 and Sales 368.3 384.4 4.4% 1.9% favourable product mix EBIT 42.8 58.2 36.0% 46.7% • Growth in both Mechanical a
Slide 16: Healthcare GBU
HALF YEAR RESULTS FY24 Healthcare GBU Comments Healthcare GBU – P&L Summary Sales Performance ($m) FY23 H1 FY24 H1 ∆% CC1 % ∆ • Sales decline due to customer destocking in Surgical and Life Sales 467.0 400.5 (14.2%) (15.1%) Sciences, and carry forward impact of mid-FY23 Exam/SU price EBIT2 55.9 27.3
Slide 17: Input Costs
HALF YEAR RESULTS FY24 Input Costs FY24 H1 Input Cost Trends • Nitrile costs steady versus FY23 H2, NRL costs reduced versus FY23 H2 but trended upward towards the end of the half. Other raw material costs stable • Inflationary and social compliance costs keep employee costs elevated, but overall ma
Slide 18: Strong H1 Cash Conversion
HALF YEAR RESULTS FY24 Strong H1 Cash Conversion 59.6 2.3 (11.1) (38.1) (7.4) (23.1) 137.6 - (32.5) FY24 (30.0) 75.7 H1 57.9 ($m) (2.4) (7.0) EBITDA Working Other Net Receipts Lease Net Capex Net Interest Taxes Operating Acquisitions / Dividend Buyback FX Net Debt NIBD Capital Payments Cost Cash Flo
Slide 19: Balance Sheet Summary
HALF YEAR RESULTS FY24 Balance Sheet Summary Balance Sheet Summary Comments ($m) Dec-22 Jun-23 Dec-23 • Balance sheet remains strong and gearing conservative with Fixed Assets 347.1 351.7 362.0 Moody’s Baa2 investment grade rating Intangibles 1,051.0 1,059.7 1,062.0 • Total working capital reduction
Slide 20: Conservative & Stable Funding Profile
HALF YEAR RESULTS FY24 Conservative & Stable Funding Profile Net Debt Summary Comments ($m) Jun-23 Dec-23 • Net Debt stable versus Jun-23 Interest-Bearing Debt 407.0 422.6 • Strong liquidity maintained with $599.7m of cash and undrawn bank Cash and Short-Term Deposits1 156.5 165.1 facilities at 31 D
Slide 21: 3. FY24 Outlook
Ansell 3. FY24 Outlook
Slide 22: Adjusted EPS Guidance Range Narrowed
HALF YEAR RESULTS FY24 Adjusted EPS Guidance Range Narrowed FY24 Adjusted EPS1 expected to be in the range of US94¢ to US110¢ External Operating Environment H2 Focus Areas • Industrial market conditions to continue to remain supportive, though • Return to top line growth subject to broader macroecon
Slide 23: 4. Q&A
4. Q&A 23
Slide 24: Appendix
Appendix 24
Slide 25: Revenue & EBIT Impact of FX Movements
HALF YEAR RESULTS FY24 Revenue & EBIT Impact of FX Movements ($m) FX Impact Comment Revenue EBIT FY24 H1 vs FY23 H1 • Favourable movements in the EUR, GBP and MYR against the USD FX Rate Movements 13.9 5.4 were partially offset by unfavourable movements in the AUD, THB and MXN FX Gain/(Loss) Varianc
Slide 26: Constant Currency
HALF YEAR RESULTS FY24 Constant Currency Constant Currency Restated Prior Period ($m) • The presentation of constant currency information is designed to facilitate comparability of reported earnings by restating the prior Prior Period Sales Total period’s results at the exchange rates applied in det
Slide 27: Ansell Fact Sheet
HALF YEAR RESULTS FY24 Ansell Fact Sheet Key Figures Key FY24 Assumptions • Booked Tax Losses at 31 Dec 2023: $17.0m (Australia $25.1m) • FY24 budget foreign exchange exposures by currency: • Unbooked Tax Losses at 31 Dec 2023: $8.8m (Tax-Effected) (Australia Revenue currencies: USD 52%, EUR 27%, GB
Slide 28: Segment History
HALF YEAR RESULTS FY24 Segment History ($m) FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY24 H1 Sales 716.5 668.5 654.8 655.9 715.5 703.7 719.1 790.7 762.5 750.9 342.2 358.4 388.1 377.1 368.3 384.4 Industrial EBIT 90.5 89.0 82.8 79.8 86.9 98.7 92.4 112.4
Slide 29: Glossary
HALF YEAR RESULTS FY24 Glossary 3PL – Third Party Logistics EUR – Euro LTM – Last 12 Months APIP – Accelerated Productivity Investment Program FG – Finished Goods MXN – Mexican Peso AUD – Australian Dollar FX – Foreign Exchange MYR – Malaysian Ringgit CAD – Canadian Dollar FY19 – Financial Year 2019
Slide 30: Join the Conversation
Join the Conversation 30
Slide 31: Ansell
Ansell Lead the world to a safer future. www.ansell.com