Slide 1: Ansell Limited Full Year Results 30 June 2005
Ansell Limited Full Year Results 30 June 2005 Doug Tough – Chief Executive Officer Rustom Jilla – Chief Financial Officer
Slide 2: Agenda
Ansell 2005 Agenda Review of Business / Key Issues - Doug Tough Review of Financials - Rustom Jilla The Future - Doug Tough
Slide 3: Positive Performance – 4 year Commitment Delivered
Continued Positive Performance – 4 year Commitment Delivered F’04 $791.9 F’05 $823.9 $M Sales +4.0% Segment EBITA +11.1% $104.1 $115.7 Profit Attributable Pre – SPT write down +36.5% $50.4 $68.8 EPS – Continuing Business US41.1¢ +47% A54.5¢ +39% Dividend A17¢ +31% F’05 Profit Attributable after SPT
Slide 4: Head Winds and Wins
Head Winds and Wins Head Winds: Pricing Competition on exams Largest Condom Tender not awarded (Brazil) Latex & Petroleum based Product Cost Increases Wins: Exceeded Four Year Market Segment EBITA Commitment Sales/EBITA Improvement in Europe Especially H2 Professional Growth Momentum in H2 Cash Gene
Slide 5: Summary Grid – F'05 v F'04
Summary Grid – F’05 v F’04 SALES Occupational Professional Consumer Total Asia Pacific EMEA Americas 4.0% Total SEGMENT EBITA Occupational Professional Consumer Total Asia Pacific EMEA Americas Total 11.1% Note: < -2% From -2% to +2% > +2%
Slide 6: Occupational Business
Occupational Business 50% of Revenue and 53% of Segment EBITA $M F’04 F’05 Sales HyFlex® 66.4 84.0 +27% Knitted 46.6 49.3 +6% Disposables 79.5 80.5 +1% All Other 195.3 200.5 +3% Total Sales 387.8 414.3 +7% EBITA – Segment 52.8 61.0 +16% EBITA – Sales 13.6 14.7 Volume 27%, Global Growth New materials
Slide 7: Professional Business
Professional Business 34% of Revenue and 28% of Segment EBITA $M F’04 F’05 Surgeons: Branded PF 60.2 70.8 +18% European strength, global growth Powdered 69.9 65.8 - 6% Conversion losses Synthetic 12.9 15.0 +16% Gaining traction in all regions Other 4.9 3.7 -25% Bulk unbranded down Exam: Powder Free
Slide 8: Consumer Business
Consumer Business 16% of Revenue and 19% of Segment EBITA $M F’04 F’05 Sales Condoms: Branded Retail 76.4 74.7 -2% European Emerging markets strong, US and UK down : BID, Gov’t, OEM 26.7 26.7 New tenders offset Brazil HHG & Other 29.4 29.0 -1% Recovery in H2 Total Sales 132.5 130.4 -2% EBITA – Segme
Slide 9: Product Developments
Product Developments Occupational: HyFlex® CR+ - Intercept Yarn, High Cut Resistance HyFlex® - Additional Line Extensions Vantage® - Automotive application using Intercept Yarn Technology Professional: Surefit™ - Cuff roll down prevention innovation Hydrasoft - Hand care coating technology Smooth Ni
Slide 10: Rustom Jilla – Financial Results
Rustom Jilla Chief Financial Officer Financial Results
Slide 11: F'05 - Solid Overall Fundamentals
F’05 - Solid Overall Fundamentals TSR - Buybacks - EPS - Dividends Portfolio P&L Working Capital Cash Flow
Slide 12: Delivering Total Shareholder Return
Delivering Total Shareholder Return EPS (Pre SPT write-down) A26.7¢ A39.1¢ A54.5¢ ROE (Pre SPT write-down) 5.6% 8.8% 12.6% Dividends A11¢ A13¢ A17¢ 10.5 10 9.5 9 8.5 8 7.5 7 6.5 6 5.5 5 4.5 4 3.5 3 2.5 July 02 31 Dec 02 30 June 03 31 Dec 03 30 June 04 31 Dec 04 30 June 05 10.5 10 9.5 9 8.5 8 7.5 7 6
Slide 13: Sales Grid F'05 v F'04
Sales Grid F’05 v F’04 1st Half Occupational Professional Consumer Total Asia Pacific EMEA Americas +3.0% Total 2nd Half Occupational Professional Consumer Total Asia Pacific EMEA Americas Total +5.0% Note: < -2% From -2% to +2% > +2%
Slide 14: Profit & Loss
F’05 Profit & Loss $M F’04 F’05 Change Sales 791.9 823.9 +4% Operating EBITA 93.7 109.2 +17% SPT Write down - 60.9 EBITA 93.7 48.3 Goodwill 15.2 15.3 Interest & Borrowings 11.9 7.3 Tax 14.8 16.4 Minorities 1.4 1.4 Profit Attributable: Pre SPT write down 50.4 68.8 Post SPT write down 50.4 7.9 Gross M
Slide 15: Balance Sheet
F’05 Balance Sheet $M 30 June 04 30 June 05 Fixed Assets 156.9 149.0 Goodwill & Intangibles 202.1 187.8 Other Assets/Liabilities (24.7) (29.0) Investment in SPT 138.4 95.0 Working Capital 168.6 168.8 Net Operating Assets 641.3 571.6 Net Debt 82.2 111.9 Shareholders’ Funds 559.1 459.7 ROA % (excludin
Slide 16: Cash Flow
F’05 Cash Flow $M F’04 F’05 Operating EBITDA 113.0 127.8 Working Capital (1.6) (0.2) Tax Paid (11.3) (12.3) Capital Expenditure (9.8) (10.6) Interest Paid (Net) (14.0) (10.9) Free Cash Flow 76.3 93.8 Share Buy Back (47.9) (121.7) Dividends (21.9) (17.7) Other 35.5 15.9 (Increase)/Reduction in Net De
Slide 17: South Pacific Tyres
South Pacific Tyres Below plan F’05 H2 resulted in A$80M non cash write-down Net Book (Carrying) Value (A$M) 2004 2005 Investment 138 58 Loan (including accrued interest) 63 67 201 125 SPT continues to run well behind 2001 Restructure Plan Investment carrying value depends partly upon future trading
Slide 18: Strong Position
Strong Position Going into our second century … Ansell is positioned for Organic Growth and/or Acquisitions or further Re-distributions to Shareholders with: Gearing a modest 19.6% even after $122M Buy Back in December 2004 Interest Cover of 17.6X Debt of $220M Fixed for Average of 3 1/2 Years at 4.
Slide 19: Doug Tough – Wrap Up
Doug Tough Chief Executive Officer Wrap Up
Slide 20: Market Commitment Met
Market Commitment Met In April 2002 Ansell Committed to 50% Segment EBITA growth by F’05 US$ Forecast Actual Growth F’01 - 77.4 9 F’02 >77 84.7 9 +9.5% F’03 >92 93.6 9 +10.5% F’04 >103 104.1 9 +11.1% F’05 115 115.7 9 +11.1% Four Year Forecast Achieved ..... Commitment Delivered
Slide 21: F'06 Guidance
F’06 Guidance Outlook Some Head Winds Re Latex and Currency expected to reduce EBITA growth rate Ansell will provide EPS Guidance for Current Year only F’06 EPS Guidance to be approximately US54¢ -US57¢ a Share (Up solidly on F’05 EPS adjusted to US50¢ for Australian accounting standards changes)
Slide 22: Strategic Evolution
Strategic Evolution From meeting multi-year Segment EBITA commitments to advancing Ansell Growth Strategy for F’06 and Beyond Methodology: Organic Growth Geographic Focus Technology Bolt in Acquisitions StrategicInitiatives F’05 Base
Slide 23: 2006 and Beyond
2006 and Beyond Organic – New products, channels Geographic – Market expansion in several ‘emerging’ markets Technology – NPD in combination with others for superior products Acquisitions – Agreed strategy with Ansell Board Overall platform for sustained, superior sales and profit performance
Slide 24: Signature
ANSELL LIMITED SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ANSELL LIMITED (Registrant) By: /s/ DAVID M. GRAHAM Name: DAVID M. GRAHAM Title: GENERAL