Ansell Limited · ASX:ANN
Ansell — H1 FY2008 Earnings Presentation
26 slides from Ansell's earnings presentation, Feb 11, 2008
Slide 1: Half Year Results 31st December 2007
For personal use only Ansell Limited Half Year Results 31st December 2007 Doug Tough – Chief Executive Officer Rustom Jilla – Chief Financial Officer
Slide 2: Ansell F'08 H1 Agenda
Ansell F’08 H1 Agenda For personal use only Operational Overview - Doug Tough Financial Report - Rustom Jilla Strategy/Outlook - Doug Tough US dollars used in all slides unless otherwise specified
Slide 3: Strong Top Line; Solid Bottom Line (Reported)
F’08 H1 – Strong Top Line; For personal use only Solid Bottom Line REPORTED F’07 H1 F’08 H1 Sales ($M) 460.3 532.8 Salesup Sales up16% 16% EBIT ($M) 43.6 48.4 EBITup EBIT up11% 11% Profit Attributable ($M) 33.9 49.6 PAup PA up46% 46% EPS (US¢) 22.6 35.2 EPSup EPS up56% 56% 3
Slide 4: Strong Top Line; Solid Bottom Line (Underlying)
F’08 H1 – Strong Top Line; For personal use only Solid Bottom Line UNDERLYING* F’07 H1 F’08 H1 Sales ($M) 460.3 532.8 Salesup Sales up16% 16% EBIT ($M) 43.6 54.7 EBITup EBIT up26% 26% Profit Attributable ($M) 32.4 39.3 PAup PA up22% 22% EPS (US¢) 21.6 27.9 EPSup EPS up29% 29% *Reconciliation of Repo
Slide 5: Broad Scale Strength
F’08 H1 – Broad Scale Strength For personal use only h Sales growth excluding acquisitions h Latex prices in H1 were lower then was 12% - with all regions up last year but higher than expected h Underlying overall EBIT growth of 26% h Unimil was EPS dilutive; lower - strong across regions/businesses
Slide 6: Strong Portfolio Performance
F’08 H1 – Strong Portfolio Performance For personal use only SALES SEGMENT EBIT Occupational Professional Consumer Occupational Professional Consumer Asia Pacific EMEA Americas > +5% From 0% to +5% < 0% AP: Strong overall despite some slowdown in ANZ Occupational and Japan Professional EMEA: Profess
Slide 7: Occupational Business
F’08 H1 - Occupational Business 48% of Revenue and 64% of Segment EBIT For personal use only $M F’07 H1 F’08 H1 Chem Resistant 28.2 30.1 Mature products steady HyFlex® 51.5 67.2 Volumes up 20% (from new products) Knitted 24.0 23.4 AM rationalising & outsourcing. EMEA & AP up Disposables 45.3 51.5 Sy
Slide 8: Professional Business
F’08 H1 - Professional Business 32% of Revenue and 16% of Segment EBIT For personal use only $M F’07 H1 F’08 H1 Surgeons: Branded PF 38.9 45.0 Volume up 12%. All regions strong Powdered 26.7 29.2 Vol up 6%. AP up, AM & EMEA down with conversions Synthetic 9.0 10.9 Volumes up 19%. All regions strong
Slide 9: Consumer Business
F’08 H1 - Consumer Business 20% of Revenue and 20% of . Segment EBIT For personal use only $M F’07 H1 F’08 H1 Condoms: Branded 48.2 66.0 Continued fierce US competition. EMEA volumes flat, AP up with Jissbon strong Tenders/PL 13.4 17.6 Unimil volume. Tender Capacity constrained HHG & Other 20.1 19.1
Slide 10: New Product Development
F’08 H1 - New Product Development For personal use only • OCCUPATIONAL HyFlex® Gloves 11-627 (Cut ‘n Cool) HyFlex® Gloves 11-920 Grip Vantage® Glove Range (5 gloves) • PROFESSIONAL Gammex® Surgical Underglove Hydrasoft® Surgical Range DermaPrene®, IsoDerm® Surgical • CONSUMER HyFlex® M
Slide 11: Commitment to Corporate Sustainability
F’08 H1 – Commitment to Corporate Sustainability For personal use only Top Quartile Performance# – Striving for Continued Health & Safety Improvement Lost Time Injuries* Medical Treatment Injuries* 0.12 0.8 0.09 0.6 0.4 0.06 0.2 0.03 0 0 F'03 F'04 F'05 F'06 F'07 F'08 F'03 F'04 F'05 F'06 F'07 F'08 *1
Slide 12: Financial Results
For personal use only Rustom Jilla Chief Financial Officer Financial Results
Slide 13: Ongoing Operational and Financial Focus
F’08 H1 – Ongoing Operational and Financial Focus For personal use only • Strong Results across Regions and Businesses – Sales uniformly strong; Underlying EBIT growth very strong – Acquisitions being integrated; blend of good early performance with restructure/cost issues • Management of Asset Base
Slide 14: Significant Non-Operational Items
F’08 H1 – Significant Non-Operational Items For personal use only • Tax Adjustments – Unbooked tax losses are reviewed at each reporting period – Due to H1’s strong U.S. profits and revised medium term outlook, remaining un-booked U.S. Federal tax losses were recognised. This, along with other provi
Slide 15: Reported to Underlying
F’08 H1 – Reported to Underlying For personal use only F’07 H1 F’07 H1 F’07 H1 F’08 H1 F’08 H1 F’08 H1 Profit & Loss ($M) Reported Adjs Underlying Reported Adjs Underlying GPADE 140.3 - 140.3 176.8 6.3 183.1 EBIT 43.6 - 43.6 48.4 6.3 54.7 Taxes (4.9) (1.5) (6.4) 6.9 (15.8) (8.9) Minority Interests (
Slide 16: Strong Performance Throughout
F’08 H1 - Strong Performance Throughout For personal use only F’07 H1 F’08 H1 Profit & Loss ($M) Underlying Underlying Sales 460.3 532.8 Blowtex & Unimil $17.5M GPADE 140.3 183.1 SG&A (96.7) (128.4) EBIT 43.6 54.7 Up 26% Low rates. Spending on buy- Interest & Borrowings (3.0) (4.5) backs Taxes (6.4)
Slide 17: Investments Across the Board
F’08 H1 – Investments Across the Board For personal use only SG&A ($M) F’07 H1 F’08 H1 Difference Growth: Sales & Marketing 62.6 77.7 +15.1M S&T/Bus Dev/Supply & Logistics 6.7 10.0 + 3.3M Growth Expenses 69.3 87.7 +18.4M Support Expenses 27.4 40.7 +13.3M Total 96.7 128.4 +31.7M Investments in geogra
Slide 18: Solid Financial Fundamentals
F’08 H1 – Solid Financial Fundamentals For personal use only Balance Sheet ($M) 31 Dec 06 30 Jun 07 31 Dec 07 Fixed Assets 148.3 163.0 159.6 Intangibles 226.7 280.8 288.3 Other Assets/Liabilities (0.7) (22.0) 6.2 Working Capital 196.6 212.4 210.3 Net Operating Assets 570.9 634.2 664.4 Net Interest B
Slide 19: Robust Cash Generation
F’08 H1 – Robust Cash Generation For personal use only Cash Flow $M F’07 H1 F’08 H1 EBIT 43.6 48.4 Depreciation & Asset Write-offs 10.7 17.9 Working Capital (7.0) 2.1 Tax Paid (7.9) (7.1) Capital Expenditure (9.7) (9.8) Interest Paid (Net) (3.5) (4.6) Free Cash Flow (FCF) 26.2 46.9 Utilisation Share
Slide 20: Cash Distributions to Owners
F’08 H1 – Cash Distributions to Owners Stepped Up For personal use only $M DIVIDENDS & SHARE BUY BACKS 160 Since F’03; 140 Total Dividends Paid $104 M 120 Total Buy-Backs $387 M Cash Returned to 100 Shareholders $491 M ====== 80 60 Strong history of returning excess cash to shareholders 40 Ansel
Slide 21: Forward Planning for H2 and Beyond
F’08 H1 – Forward Planning for H2 and Beyond For personal use only • Growth continues to be key priority – Investment in S&T, Sales & Marketing helping drive organic top line growth – Thorough reviews of M&A opportunities to strengthen competitive positions and grow value • Disciplined financial man
Slide 22: Wrap Up
For personal use only Doug Tough Chief Executive Officer Wrap Up
Slide 23: Ansell Well Positioned
F’08 H1 – Ansell Well Positioned … For personal use only • Ansell is in good condition to weather world liquidity crisis – Strong Free Cash Flow and low Gearing (25%) – “Good” debt profile with no material re-financing required for 2 years and a low average cost of Borrowings – Investment grade cred
Slide 24: Growth Strategy Unchanged
F’08 H1 - Growth Strategy Unchanged For personal use only Methodology: Multi-faceted approach to growth 99 F’07 Base Channels Emerging JV Several Bolt-ons Products markets under review Alliances Programs Overall perspective: A well balanced growth oriented global leader 24
Slide 25: Full Year Guidance
F’08 H1 – Full Year Guidance For personal use only • H2 Background: – Strong sales and EBIT growth expected in H2 …. but this compares to a very strong F’07 2nd half – Full year latex cost expected to be slightly higher than F’07 – FX benefits of weaker USD expected to continue – Some potential US e
Slide 26: Ansell Limited
For personal use only ANSELL LIMITED