Ansell Limited · ASX:ANN
Ansell — Shareholder Meeting (October 2009)
19 slides from Ansell's shareholder meeting presentation, Oct 14, 2009
Slide 1: Ansell Limited Annual General Meeting
Agenda For personal use only Ansell Limited Annual General Meeting 14 October 2009 Doug Tough Chief Executive Office/Managing Director 0
Slide 2: Agenda
Agenda For personal use only Review of FY2009 Results Priorities and actions for FY2010 Preliminary outlook re FY2010 1
Slide 3: F'09 Overview
F’09 – Overview For personal use only Achieving commitments in a challenging environment - Sales impacted by global downturn and strong US currency - Excellent Free Cash Flow performance - EPS within guidance range of US65¢ - US70¢ - Steady Dividend growth continued Performance by half very differen
Slide 4: Earnings Satisfactory in Difficult Environment
F’09 – Earnings Satisfactory in Difficult Environment For personal use only Reported (US$) F’08 F’09 % Sales ($M) 1,116 1,003 - 10 PA ($M) 92 90 -2 EPS (US¢) 66.1 66.3 - Dividends (A¢) 26.5 28.0 +6 3
Slide 5: Impact of Currency on Earnings
F’09 – Impact of Currency on Earnings For personal use only Reported (AUD) F’08 F’09 % Sales ($M) 1,245 1,352 +9 PA ($M) 103 121 +18 EPS (US¢) 73.9 89.2 +21 Dividends (A¢) 26.5 28.0 +6 4
Slide 6: A Testing Year
F’09 – A Testing Year Positives Negatives For personal use only Diversification benefited Ansell Sales down year on year: - EMEA surgical volumes and AP sales and - Occupational impacted by global EBIT growth recession - US condom sales and EBIT growth - Currency headwinds impacted sales and EBIT re
Slide 7: Occupational Business Impacted by Global Downturn
F’09 – Occupational Business … Impacted by Global Downturn For personal use only Occupational accounts for 48% of Ansell’s Revenue and 47% of Segment EBIT $M F’08 F’09 Total Sales 547.7 477.4 12.8% Segment EBIT 79.3 53.6 32.4% EBIT Sales 14.5% 11.2% Product mix impact Strategy: Expanding in new chan
Slide 8: Occupational Diversification Stepped Up
F’09 - Occupational Diversification Stepped Up For personal use only ANSELL RESOURCES GROWTH INDUSTRIES UNDER PRESSURE SHIFT OPPORTUNITIES/CHANNELS Construction Automotive Mining General Industrial D.I.Y. (Menards) Military (Hawkeye) Accelerated promotion of innovative products in new channels 7
Slide 9: Professional Business Turning Around
F’09 – Professional Business … Turning Around Professional accounts for 33% of Ansell’s Revenue and 35% of Segment EBIT For personal use only $M F’08 F’09 Total Sales 356.6 332.2 6.8% Segment EBIT 26.6 40.3 Input costs, mix EBIT/Sales 7.5% 12.1% Previous year 8.9% without depreciation adjustment Str
Slide 10: Consumer Business Mixed
F’09 – Consumer Business .. Mixed Consumer accounts for 19% of Ansell’s Revenue and 18% of Segment EBIT For personal use only $M F’08 F’09 Total Sales 211.7 193.3 8.7% Segment EBIT 17.5 21.2 21.1% Lower input costs EBIT/Sales 8.3% 11.0% (12.3% excluding Unimil) Strategy: Country expansion through ac
Slide 11: Responsible Corporate Citizenship
Responsible Corporate Citizenship For personal use only Corporate Governance Environment Safety Ansell rated equal No. 1 CO2 emissions across all Medical Treatment Injuries in Australia for the plants have been reduced by second year running – a total of 20% (2004 to 2008) *1.2 see 2009 WHK Horwath
Slide 12: Ansell Leveraging Strong Portfolio
F’09 – Ansell Leveraging Strong Portfolio For personal use only Brands, Channels, Geographic Actions Add – Manix® to China, Australia – SKYN™ to other regions Expand – DIY, Military to other markets – Focus on growing new Occupational verticals Introduce – New products into Professional, Consumer an
Slide 13: Financial Overview
F’09 – Financial Overview Economic and Competitive Environment For personal use only Strong USD an issue. Negative ~5% effect on sales Addressing the H1 Occupational inventory overhang hurt H2 profits Cost relief – lower raw materials and energy and transport costs in difficult environment Ansell’s
Slide 14: Financial Summary
F’09 – Financial Summary For personal use only F’09 results were significantly hurt by two major headwinds that show signs of abatement - The sharp decline in Occupational demand appears to have flattened - FX was a negative in F’09 …. F’10 likely to be better Ansell’s positive responses to challeng
Slide 15: F'10 Will be Challenging
F’10 – Will be Challenging For personal use only F’10 Macro Expectations Industrial Production to remain sluggish into 2010 Consumer spending flat Increasing Global Unemployment into 2010 Global economic growth resuming in early 2010 Ansell’s diverse portfolio provides some protection against econom
Slide 16: F'10 Commercial Opportunities Abound
F’10 - Commercial Opportunities Abound For personal use only Ansell is a Global Market Leader Using Guardian® – Unique system to improve OH&S for customers Program while cementing and developing our relationship Conversions – Broad product portfolio able to cover customer needs and grow business Ver
Slide 17: FY2010
FY2010 For personal use only Business has started well Modestly above projections Still below year ago on Sales All 3 Regions and Businesses are performing satisfactorily Costs – under control with restructuring implemented Modest upside in Occupational business is encouraging . . . but early 16
Slide 18: FY2010
FY2010 For personal use only US $ currency weakness points to sales/profit upsides Many growth initiatives underway globally to enhance future EPS Guidance for 2010 trending towards top end of the range of US$ 56 - 62¢ 17
Slide 19: Pleasure is Evolving
“A Evolução do Prazer.” “Pleasure is Evolving” For personal use only 18