Ansell Limited · ASX:ANN
Ansell — Shareholder Meeting (October 2010)
18 slides from Ansell's shareholder meeting presentation, Oct 19, 2010
Slide 1: Ansell Limited Annual General Meeting
For personal use only ANSELL LIMITED ANNUAL GENERAL MEETING 19 October 2010 Magnus Nicolin Chief Executive Officer & Managing Director
Slide 2: Agenda
For personal use only Agenda Review of FY2010 Results A new vision for Accelerated growth Priorities and actions for FY2011 Preliminary outlook re FY2011 2
Slide 3: Responsible Corporate Citizenship
For personal use only Responsible Corporate Citizenship Corporate Environment Safety Governance Ansell rated equal No. 1 in CO2 emissions across all Medical Treatment Injuries* Australia for the second year plants have been reduced by 1.2 running – see latest WHK a total of 29% (2004 to 2010) 0.9 “C
Slide 4: F'10 Overview
For personal use only F’10 Overview Delivering strong results in a dynamic environment - Sales grew rapidly after the GFC - Gross Margin improved 320 basis points or 3.2% to 37% - Cash flow strong - EPS up 20% and guidance was exceeded - Dividend increased by 9% A plan to accelerate growth defined a
Slide 5: F'10 – Strong Earnings in a Dynamic Environment
For personal use only F’10 – Strong Earnings in a Dynamic Environment Reported (US$) F’09 F’10 % Sales ($M) 1,002.9 1,086.2 +8 PA ($M) 90.2 106.2 +18 EPS (US¢) 66.3 79.7 +20 Dividends (A¢) 28.0 30.5 +9 5
Slide 6: F'10 Occupational Business: Strong Recovery
For personal use only F’10 – Occupational Business: Strong Recovery Occupational accounts for 48% of Ansell’s Revenue and 55% of Segment EBIT $M F’09 F’10 Total Sales 477.4 525.7 +10% Segment EBIT 53.6 74.8 +40% EBIT/Sales 11.2% 14.2% Product mix, volume Strategy: Global rollout of Guardian Solution
Slide 7: F'10 Professional Business: Shift to Surgical Continues
For personal use only F’10 – Professional Business: Shift to Surgical continues Professional accounts for 33% of Ansell’s Revenue and 34% of Segment EBIT $M F’09 F’10 Total Sales 332.2 352.8 +6% Segment EBIT 40.3 46.6 +16% EBIT/Sales 12.1% 13.2% Lower input costs, better sales mix Strategy: Continue
Slide 8: F'10 Consumer Business: Fixing the Trouble-Spots
For personal use only F’10 – Consumer Business: Fixing the trouble-spots Consumer accounts for 19% of Ansell’s Revenue and 11% of Segment EBIT $M F’09 F’10 Total Sales 193.3 207.7 +7% Segment EBIT 21.2 15.5 -27% Distributor changes, tenders, EBIT/Sales 11.0% 7.5% manufacturing, marketing costs Strat
Slide 9: Performance for Shareholders
For personal use only Performance for Shareholders Dividend History 35 30.5¢ 30 26.5¢ 28.¢ 24.¢ 25 21.¢ 20 17.¢ 15 13.¢ 11.¢ 10 5 0 2003 2004 2005 2006 2007 2008 2009 2010 Dividend A¢ 9
Slide 10: Agenda
For personal use only Agenda Review of FY2010 Results A new vision for Accelerated growth Priorities and actions for FY2011 Preliminary outlook re FY2011 10
Slide 11: Portfolio selection/Where to play? – Current position
For personal use only Portfolio selection/Where to play? – Current position Rest of Eur / GBU VERTICAL North America LAC EU 27 ANZ Japan Rest of Asia MEA Automotive Metal Fabrication INDUSTRIAL Chemical / Pharma Oil / Gas / Mining DIY/Construction Military / First Resp. NVAC Food/Agriculture/Jan Aut
Slide 12: Strategies
For personal use only 7 Strategies 1. Focus on 4 Businesses with distinct needs and within these target defined Verticals based on clear attractiveness criteria 2. Change our structure to a matrix with well defined roles and responsibilities and with clear decision rights for GBU’s, Regions and Func
Slide 13: Structure change – Commercial Operations Matrix
For personal use only Structure change – Commercial Operations Matrix . GBU’s Regions Industrial Occupational (Auto, Metal fab, North Chem, & Utilities America New Verticals & Adv.Concepts (Mil/FR, Food, Constr, Auto Am & EMEA Professional HHG) Transfer HHG Medical and Cleaning (Surgical, Exam,lab,,
Slide 14: Operations Footprint & Strategy
For personal use only Operations Footprint & Strategy U.K. Status: September 2010 North America • Tamworth (SH+WB – HC 22) • Coshocton (Industrial – HC 71) Thailand • Hawkeye (5 plants – HC 348) • Bangkok (Ind./Med./NV – HC 1.185) • Dothan (SH+WB – HC 40) • Surat Thani (SH+WB – HC 1,203) Germany • E
Slide 15: Agenda
For personal use only Agenda Review of FY2010 Results A new vision for Accelerated growth Priorities and actions for FY2011 Preliminary outlook re FY2011 15
Slide 16: Priorities for F'11
For personal use only Priorities for F’11 1. Set plan to accelerate sales growth – 4 GBU’s – Focused Innovation – Leverage/build brands – Invest in “new” geographies 2. Leverage strong balance sheet to acquire new capabilities, geographic positions or more volume in existing businesses 3. Reduce com
Slide 17: Agenda
For personal use only Agenda Review of FY2010 Results A new vision for Accelerated growth Priorities and actions for FY2011 Preliminary outlook re FY2011 17
Slide 18: Guidance – F'11
For personal use only Guidance – F’11 • Outlook - Good sales and profit momentum in 1st quarter F’11 - Higher sales volumes, pricing and favorable currency movements are expected to be offset by natural rubber latex costs in excess of budget - Focus on under-performing geographies and verticals alre