Ansell Limited · ASX:ANN
Ansell — H1 FY2009 Earnings Presentation
27 slides from Ansell's earnings presentation, Feb 11, 2009
Slide 1: Ansell Limited Half Year Results
For personal use only Ansell Limited Half Year Results 31st December 2008 Doug Tough – Chief Executive Officer Rustom Jilla – Chief Financial Officer
Slide 2: Ansell F'09 H1 Agenda
Ansell F’09 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 |2 2
Slide 3: F'09 H1 - Top Line Impacted, Bottom Line Solid
F’09 H1 - Top Line Impacted, Bottom Line Solid For personal use only Reported Underlying F’08 H1 F’09 H1 % F’08 H1 F’09 H1 % Sales ($M) 532.8 532.2 - 532.8 532.2 - EBIT ($M) 48.4 61.5 +27% 54.7 61.5 +12% PA ($M) 49.6 54.1 +9% 39.3 47.2 +20% EPS (US¢) 35.2 39.8 +13% 27.9 34.7 +24% Reconciliation of R
Slide 4: Progress on Several Fronts
F’09 H1 – Progress on Several Fronts … For personal use only h Sales were flat in challenging and h Recessionary impact becoming eroding conditions, some was significant with Occupational sales expected (exams). slowing. h Solid EBIT growth in Consumer and h Working Capital increase at end H1 Profes
Slide 5: Product/Customer Diversity
F’09 H1 – Product/Customer Diversity …Provides Portfolio Balancing Benefits For personal use only Consumer Professional Products Retail, Products Private (19%) (32%) Hospitals & Label, 18% Surgical Powdered Alternate Surgical SurgicalPowdered Powdered Branded Branded Free Free Care, 32% Public Brand
Slide 6: Occupational Business
F’09 H1 - Occupational Business 49% of Revenue and 53% of Segment EBIT For personal use only $M F’08 H1** F’09 H1 HyFlex® 67.2 67.8 Vol 2% (Americas automotive) Other General Purpose 68.8 62.4 Reduced Demand Chemical & Liquid Handling 51.2 49.9 Single Use 51.5 55.4 Synthetic Disposables Growth All O
Slide 7: Professional Business
F’09 H1 - Professional Business 32% of Revenue and 25% of Segment EBIT For personal use only $M F’08 H1 F’09 H1 Surgeons: Branded PF 45.0 47.4 Volume 10% (all regions). Powdered 29.2 30.3 Volume 2% (EMEA & AP). Synthetic 10.9 13.2 Volume 38% (all regions). Other 2.7 2.6 Exam: PF 44.4 35.2 Volume 23%
Slide 8: Consumer Business
F’09 H1 - Consumer Business 19% of Revenue and 22% of. Segment EBIT For personal use only $M F’08 H1 F’09 H1 Condoms: Branded 66.0 69.5 US, Blowtex & Jissbon growth. Offset partly by FX and Unimil. Tenders/PL* 17.6 11.8 India tender delay, Russian PL* loss. HHG & Other 19.1 20.4 Sales 102.7 101.7 -1
Slide 9: Acquisitions Results Mixed
F’09 H1 - Acquisitions Results Mixed For personal use only Contribution to: F’08H1 F’09H1 Sales ($M) 30 40 EPS (US) 1¢ 2¢ Hawkeye (Military gloves – USA, F’09 H1) • Management expects to meet F’09 sales and profit plan. EPS neutral. Blowtex (Condoms – Brazil, F’07 H2) • Solid local currency sales an
Slide 10: Global Expansion: Emerging Markets Growth
F’09 H1 - Global Expansion: Emerging Markets Growth For personal use only SALES: 125 EMEA: Significant growth in Russia $107M and CIS across all businesses and 100 acquisition of Unimil. 45 Americas: Occupational entities set up 75 in Brazil and Mexico. Blowtex (Brazil) condom acquisition. 50 $42M A
Slide 11: Ansell's Technology Advantage
F’09 H1 – Ansell’s Technology Advantage For personal use only Ansell is committed to being a global leader in technology & innovation for its Customers Advanced Materials • Accelerator Free Nitrile Advanced Yarns • Polyisoprene • Composite Yarns • Antimicrobials • Microfilament • Flame Resistance Ad
Slide 12: Financial Results
For personal use only Rustom Jilla Chief Financial Officer Financial Results | 12
Slide 13: Overview of Financials
F’09 H1 – Overview of Financials For personal use only • Global Economic Environment – F’09 started strongly for Ansell but a sharp global industrial slowdown in Q2 has impacted Occupational results. – However …. commodity, energy and transportation costs have also declined. – Cash crunch beginning
Slide 14: "Reported" to "Underlying"
F’09 H1 – “Reported” to “Underlying” For personal use only F’08 H1 F’08 H1 F’08 H1 F’09 H1 F’09 H1 F’09 H1 Profit & Loss ($M) Reported Adjust. Underlying Reported Adjust. Underlying EBIT 48.4 6.3 54.7 61.5 61.5 Taxes 6.9 (15.8) (8.9) (1.0) (6.9) (7.9) Minority Interests (1.2) (0.8) (2.0) (2.0) (2.0)
Slide 15: Bottom Line Delivered
F’09 H1 – Bottom Line Delivered For personal use only F’08 H1 F’09 H1 Profit & Loss ($M) Underlying Underlying Sales 532.8 532.2 Global economy, FX GPADE 183.1 189.2 Mix & inputs offset FX SG&A (128.4) (127.7) FX, cost controls, lower incentives EBIT 54.7 61.5 Pricing, input costs, initiatives Inter
Slide 16: Impact of FX
F’09 H1 - Impact of FX For personal use only Revenue Currencies F’09 H1 Cost Currencies F’09 H1 THB EUR EURO CAD 13% 10% 29% 6% GBP MYR 4% 15% AUD Other 3% 8% LKR Other RMB 3% 10% 3% MXN AUD 3% 7% USD USD 43% 43% * Value of local currencies translated into USD at average rates. * Value of local curr
Slide 17: Commodity Costs
F’09 H1 - Commodity Costs For personal use only MYR (per wet kg) Source: Malaysian Rubber Board 7.00 Outsourced Natural Rubber Latex Labour 11% Products 6.00 33% 5.00 4.00 3.00 Raw 2.00 Factory Materials Overheads 35% 10% Other 11% 1.00 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 USD/MT 3,500.00 Butadie
Slide 18: Portfolio Performance
F’09 H1 – Portfolio Performance For personal use only SALES SEGMENT EBIT (Underlying) Occupational Professional Consumer Occupational Professional Consumer Asia Pacific EMEA Americas > +5% From 0% to +5% < 0% AP: Consumer sales down as Jissbon growth was offset by stalled Indian Tender, while Occupa
Slide 19: Balance Sheet Maintained
F’09 H1 – Balance Sheet Maintained For personal use only Balance Sheet ($M) 31 Dec 07 30 June 08 31 Dec 08 Fixed Assets 159.6 161.3 149.2 Intangibles 288.3 302.0 268.4 Other Assets/Liabilities 6.2 (29.6) (1.0) Working Capital 210.3 224.2 239.9 Net Operating Assets 664.4 657.9 656.5 Net Interest Bear
Slide 20: Cash Even More Critical
F’09 H1 – Cash Even More Critical For personal use only Cash Flow $M F’08 H1 F’09 H1 EBIT 48.4 61.5 Depreciation & Asset Write-offs 17.9 11.9 $6.3M depreciation adjustment in F’08 Working Capital (Excluding 2.1 (12.3) Occupational Inventory Acquisitions) Tax Paid (7.1) (4.8) Timing Capital Expenditu
Slide 21: Debt & Liquidity Good
F’09 H1 - Debt & Liquidity Good For personal use only Debt: • Solid Group of Five Core Banks. Debt maturities US$ M • Average Cost of Debt 4.3%. • Un-drawn available lines US$90M. 06/30/2009 9 • All financial covenants met with significant head room. 09/30/2009 9 Cash: • US$139M on deposit. 04/30/20
Slide 22: Forward Planning for H2 and Beyond
F’09 H1 – Forward Planning for H2 and Beyond For personal use only • Reducing costs while maintaining growth capabilities is key; – Manufacturing efficiency through innovation, process improvement and rationalisation. – Green productivity and energy reduction projects. – Reduce overhead spend in are
Slide 23: Wrap Up
For personal use only Doug Tough Chief Executive Officer Wrap Up | 23
Slide 24: Ansell's Position
F’09 H1 – Ansell’s Position … For personal use only • Ansell remains in good condition to weather the current economic crisis; – Solid Free Cash Flow and low Gearing (~27%). – “Good” debt profile and a low average cost of Borrowings. – Investment grade credit rating. • Well Diversified Business/Regi
Slide 25: The Way Forward
F’09 H1 – The Way Forward For personal use only Ansell knows it needs to be even more focused in these uncertain times: – Strong cash flow generation – More rigorous scrutiny of capital decisions – Vigilance on terms / credit – Efficiency opportunities, restructuring – Nimble on manufacturing, sourc
Slide 26: Full Year Guidance
F’09 H1 – Full Year Guidance For personal use only • H2 Background; – Adverse EBIT impact of a stronger USD expected in H2. – Professional and Consumer expected to sustain global strength. – Occupational sales and EBIT challenges expected in H2. Difficult to quantify given degree of economic uncerta
Slide 27: For personal use only
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