Slide 1: Full Year Results to June 2014
For personal use only ANSELL LIMITED Full Year Results to June 2014 Magnus Nicolin – Chief Executive Officer Neil Salmon – 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 of
Slide 3: A World Leader in Health and Safety Protection Solutions
F’14 ANSELL A World Leader in Health And Safety Protection Solutions For personal use only ANSELL GUARDIAN 35 #1 or 2 SALES OF ANSELL EMPLOYEES ARE BASED IN 35 COUNTRIES #1 OR #2 GLOBALLY IN EACH OF OUR MAJOR BUSINESS $1.6B UNIQUE GLOBAL POSITION AROUND THE GLOBE SEGMENTS 1 as a supplier of Protecti
Slide 4: Agenda
Agenda For personal use only » Business Overview Magnus Nicolin » Financial Report Neil Salmon » F’15 Outlook Magnus Nicolin Legacy GBU » Appendix information
Slide 5: A Year of Transformation and Growth
F’14 A Year of Transformation and Growth For personal use only F’14 REPORTED F’14 UNDERLYING* F’13 $M % CHANGE $M % CHANGE Sales ($M) 1,373 1,590 +16% 1,590 + 16% EBIT ($M) 171 84 -51% 207 + 20% PA ($M) 139 42 -70% 157 + 13% EPS (¢) 106.5 29.3 -73% 110.0 + 3% Free Cash ($M) 130 178 +36% 178 + 36% Di
Slide 6: Consistently Strong Financial Performance
F’14 Consistently Strong Financial Performance For personal use only $1,590 $1,373 $1,255 $1,207 $1,116 $207 $1,086 $171 $1,003 $153 $137 $127 110.0₵ 106.5₵ $111 $107 101.4₵ 79.7₵ 91.6₵ 13.0% 12.2% 12.4% 66.1₵ 66.3₵ 11.4% 11.7% 9.9% 10.7% F08 F09 F10 F11 F12 F13 F14 Sales ($m) EBIT ($m) EBIT Margin
Slide 7: Strategic Focus
F’14 Strategic Focus For personal use only Driving Growth, Profitability and Cash Flow, Enabling Value Creation Through Capital Deployment ORGANIC GROWTH PROFITABILITY & CASHFLOW CAPITAL DEPLOYMENT Build strong global Brands Leverage scale Strategic, disciplined M&A Increase share in emerging Backwa
Slide 8: Building a Strong Foundation for Accelerated Growth
F’14 Building a Strong Foundation for Accelerated Growth For personal use only Core Hand Protection Organic Growth improved to 4%*. Overall organic growth of 1% reflected lower sales in Sexual Wellness, Body Protection and decisions to rationalize non core product lines INNOVATION AND NEW GLOBAL BRA
Slide 9: Strong New Product Launches
F’14 Strong New Product Launches For personal use only New product sales evolution generally follow an expected pattern varying on degrees of innovation and target market dynamics and a solid pipeline will continue to support growth NO. QUARTERS SINCE LAUNCH 0 2 4 6 8 10 12 HyFlex® SKYN® F14F EXIT R
Slide 10: Profitability and Cashflow
F’14 Profitability and Cashflow For personal use only Transformational Programmes Underway Targetting Profitability Growth and Cashflow EFFICIENT GLOBAL LEVERAGE SCALE BACKWARDS INTEGRATION LEAN MANUFACTURING PROCESSES • SG&A: Sales 1% lower at • Midas acquisition • Productivity savings • Successful
Slide 11: Strategic Capital Deployment
F’14 Strategic Capital Deployment For personal use only Strategic Capital Deployment To Enhance Long Term Shareholder Value and Strengthen Growth and Profitability IMPROVING WORKING CAPITAL M&A CAPITAL EXPENDITURE EFFICIENCY • Completed transformative BSSI & • Increased productivity capex delivering
Slide 12: New Global Portfolio
F’14 New Global Portfolio For personal use only New Global Portfolio Expected To Make Ansell More Balanced & Less Exposed To Economic Cycles While Leveraging BSSI Scale PRIOR STRUCTURE NEW GLOBAL BUSINESS UNIT STRUCTURE MEDICAL | Surgical & Exam Gloves, Healthcare Safety Devices, & Active Infection
Slide 13: Balanced Portfolio Positioned for Strong Profit Growth
F’14 Balanced Portfolio Positioned for Strong Profit Growth For personal use only INDUSTRIAL SINGLE USE MEDICAL SEXUAL WELLNESS Sales $m 717 241 420 213 (% of Ansell) 45% 15% 27% 13% EBIT Margin* 13.1% 13.4% 13.7% 11.8% Global market #1 #1 #1 #2 position vs in hand protection in differentiated in su
Slide 14: Strong Performance Acquisition Driven
F’14 Strong Performance Acquisition Driven For personal use only NA and EMEA Strongest Growth Contributors on Organic Growth and Acquisition Gains. AP lower primarily on ANZ weakness. F’14 v F’13 SALES $1,590m +16% EBIT $206m +20% MED IND SU SW Total MED IND SU SW Total NA NA LAC LAC EMEA EMEA AP AP
Slide 15: Industrial GBU
F’14 Industrial GBU For personal use only SUMMARY HIGHLIGHTS F’13 F’14 % CHANGE SALES Sales $650.2m $716.5m 10.2% • Top line grew 10% on acquisitions • Improving core hand protection organic growth of 3% EBIT* $89.8m $93.6m 3.9% on improving trends in automotive, oil & gas, and % EBIT/Sales* 13.8% 1
Slide 16: Industrial GBU New Products
F’14 Industrial GBU New Products For personal use only RIG 11-840 58-330 / 58-335 11-926 Classes 00 - 4 Fully Launched on Fully Launched on Full Launch planned for Fully Launched on April 2013 May 2013 October 2014 April 2013 HyFlex GT1 – Ansell’s first Light duty multi-purpose glove with 1st chemic
Slide 17: Single Use GBU
F’14 Single Use GBU For personal use only SUMMARY HIGHLIGHTS F’13 F’14 % CHANGE SALES Sales $143.4m $241.1m 68.2% • Organic growth of 7% achieved from NPD and success in Life Sciences. EBIT* $11.3m $32.2m 185% • Combined with BSSI’s Industrial Single Use business, % EBIT/Sales* 8.2% 13.4% Ansell now
Slide 18: Single Use GBU Product Range
F’14 Single Use GBU Product Range For personal use only i XCEED® Supreno® MidKnight® 92-600 73-500 First certified ergonomic Durable heavy-duty nitrile Distinct black color masks Resists a great variety of Sensitive, chemical splash exam glove. Up to 60% for extra protection. stains and provides che
Slide 19: Medical GBU
F’14 Medical GBU For personal use only SUMMARY HIGHLIGHTS F’13 F’14 % CHANGE SALES Sales $349.5m $419.9m 20.1% • Organic growth +$19m or 5% EBIT* $41.1m $57.5m 39.9% • ~$250m Surgical segment increased 5% on strong synthetic performance in mature markets as well as % EBIT/Sales* 11.8% 13.7% NRL grow
Slide 20: Medical GBU – New Product Traction & Campaigns
F’14 Medical GBU – New Product Traction & Campaigns For personal use only GAMMEX® Non-Latex PI Textured White SANDEL® Product Family • PI surgical glove designed to meet the Non-Textured Textured • Neox™ Safety Scalpel launched in EMEA market to meet healthcare needs of surgeons, featuring a texture
Slide 21: Sexual Wellness GBU
F’14 Sexual Wellness GBU For personal use only SUMMARY HIGHLIGHTS F’13 F’14 % CHANGE SALES Sales 229.7 212.7 -7.4% • Branded revenue decline arose on FX ($3m), EMEA EBIT* 34.2 25.0 -26.9% destocking following a distributor change ($4m) and a revision to distributor agreements resulting in % EBIT/Sal
Slide 22: Sexual Wellness SKYN Performance
F’14 Sexual Wellness SKYN® Performance For personal use only SKYN® sales grew by 22% vs. F13 SKYN® reached double-digit market share in 3 countries SKYN® Intense Feel launched in 11 countries, with strong initial sell-through SKYN® Elite, the new ultra thin addition to the SKYN® portfolio, launched
Slide 23: F'14 – Financial Results
For personal use only F’14 – FINANCIAL RESULTS NEIL SALMON, CHIEF FINANCIAL OFFICER
Slide 24: Financial Summary
F’14 Financial Summary For personal use only » GPADE Margins held at record F’13 levels Continued Margin Improvement » SG&A cost trending down as % sales, 90 bps lower vs F’13 Completed BSSI Refinancing at » $200m USPP at an average margin of 1.84% lower cost than anticipated » New $500m US led synd
Slide 25: Profit & Loss
F’14 Profit & Loss For personal use only Acquisitions drive growth in year of major restructuring PROFIT & LOSS (US$M) F’13 F’14 Sales 1,372.8 1,590.2 • Acquisitions/Divestments $192m FX $3m GPADE 517.4 593.8 • Margins maintained at record F’13 level SG&A (346.9) (387.4) • F’14 Increase includes $26
Slide 26: Sales & Profit Bridges
F’14 Sales & Profit Bridges For personal use only organic trends SALES $1,650 50 ($M) $1,600 203 3 $1,550 (11) (10) $1,500 (17) $1,450 $1,400 1,590 1,565 $1,350 $1,300 1,373 $1,250 $1,200 F'13 Acq Disc F13 PF Body Sexual Health & Hand F'14 Protection Wellness Safety Protection Solutions UNDERLYING $
Slide 27: Restructuring
F’14 Restructuring For personal use only New structure to allow for a more efficient business and better leverages an increase in scale TOTAL COST OF PROGRAM CASH COST TOTAL ANSELL (US $M) EBIT $m NPAT $m EPS US¢ (PRE TAX $M) Restructuring cost - estimated Write-down of non-core acquired brands -69.
Slide 28: Raw Material Costs
F’14 Raw Material Costs For personal use only Natural Rubber Latex Continues to Reduce as a % of Raw Material Costs. Raw material price movements offset each other KEY RAW MATERIAL PROJECTED FULL YRS RAW MATERIAL COMPONENTS PRICES / INDICES MIX COMPARED TO F’10 100% Fibres and Engineered Yarns 80% P
Slide 29: Balance Sheet
F’14 Balance Sheet For personal use only Remains Strong After Significant Acquisition Activity BALANCE SHEET ($M) F’13 F’14 Fixed Assets 186.7 206.1 Intangibles 541.4 1,067.7 Other Assets/Liabilities (33.6) (67.1) Working Capital 314.5 348.2 Net Operating Assets 1,009.0 1,554.9 Net Interest Bearing
Slide 30: Working Capital
F’14 Working Capital For personal use only Very Positive Year In Management of Working Capital Which Was Inflated by Acquisitions MOVEMENT F’14 VS. F’13 30 JUNE 30 JUNE US$M 2013 2014 Acquisition Total Organic* Effects Inventory 260.0 311.5 51.5 65.9 (14.4) Debtors 224.2 252.0 27.8 24.9 2.9 Creditor
Slide 31: Capital Expenditure
F’14 Capital Expenditure For personal use only F’12 - F’14 Growth Investment Essential to Innovation Strategy. From F’14 Onwards Allocation Increasing to High Return Profit Improvement Initiatives 50 ERP SAP successfully launched in 45 Industrial & Single Use EMEA 8.6 Acquisitions includes investmen
Slide 32: Strong EBIT Growth & Working Capital Management
F’14 Strong EBIT Growth & Working Capital Management For personal use only $350 F14 $300 32.9 (53.0) 359.3 ($M) $250 35.2 (17.3) (27.4) $200 1 (25.7) (49.1) $150 $100 206.4 177.9 $50 $0 -$50 (641.3) (178.8) -$100 EBIT Depn Work CAPEX INT Taxes Other Cash FCF Other DIV Share Acq./ Net Debt /WO Cap &
Slide 33: Major Debt Restructure
F’14 Major Debt Restructure For personal use only Major Debt Restructure Results in Significantly Extended Debt Maturity Profile and Lower Cost NEW FACILITIES METRIC’S • $200m US Private Placement – 7, 10 & 12 • Gross Debt $734.8m • ~82% of Debt Fixed year maturities (acquisition funding) • Cash on
Slide 34: F'15 Outlook
For personal use only F’15 OUTLOOK MAGNUS NICOLIN, CHIEF EXECUTIVE OFFICER
Slide 35: Outlook: Focus on Core Strategies
OUTLOOK Focus on Core Strategies For personal use only In F’15 Ansell Will Stay Focused On Its Core Strategies ORGANIC GROWTH PROFITABILITY AND CASHFLOW CAPITAL DEPLOYMENT • Leverage improving momentum in • Substantial synergy delivery and • Capital Expenditure to increase with focused verticals ben
Slide 36: Outlook: F'15 Guidance
OUTLOOK F’15 Guidance For personal use only • Although market conditions in some emerging markets remain challenging, generally improved demand in developed economies is anticipated in F’15 • Ansell expects to deliver EBIT % growth* in mid to high 20s from successful acquisition integration, restruc
Slide 37: Appendix
For personal use only Appendix 37
Slide 38: Comparison of New GBU to Former GBU Segments
F’14 Comparison of New GBU to Former GBU Segments For personal use only OLD GBU (F14) NEW GBU (F14) Sales EBIT Sales EBIT Industrial 613 99.5 16.3% Industrial 716 93.6 13.1% Medical 373 50.3 13.5% Medical 420 57.5 13.7% Sexual Wellness 213 25.0 11.7% Sexual Wellness 213 25.0 11.7% Specialty Markets
Slide 39: Industrial Overview (Legacy)
F’14 Industrial Overview (Legacy) For personal use only 39% of Revenue and 48% of Segment EBIT F’13 F’14 • HyFlex® $195.7M $205.7M 5% GENERAL PURPOSE/ MECHANICAL PROTECTION1 • Other GP/M 156.7 171.4 9% • AlphaTec® 11.4 13.4 18% CHEMICAL/LIQUID PROTECTION2 • Other Chemical /LP 78.9 82.2 4% • Touch N
Slide 40: Specialty Markets Overview (Legacy)
F’14 Specialty Markets Overview (Legacy) For personal use only 15% of Revenue and 8% of Segment EBIT F’13 F’14 • Liquid Resist1 $60.0M $65.1M 9% VERSATOUCH® FOOD FAMILY • Single Use2 24.1 16.4 -32% • Knitted3 9.3 12.3 32% • Specialty Apps3 7.1 14.2 100% ACTIVARMR® FAMILY • Military & First Responder
Slide 41: Medical Overview (Legacy)
F’14 Medical Overview (Legacy) For personal use only 23% of Revenue and 24% of Segment EBIT F’13 F’14 TOTAL SURGICAL $238.0M $250.6M 5% SURGICAL • NRL 185.9 191.0 3% • Synthetic 52.1 59.6 14% TOTAL EXAMINATION $89.2M $96.1M 8% EXAMINATION • NRL 36.5 34.0 -7% • Synthetic 52.7 62.1 18% HEALTHCARE SAFE