Ansell Limited · ASX:ANN
Ansell — Investor Day (October 2020)
88 slides from Ansell's investor day presentation, Oct 15, 2020
Slide 1: ASX Announcement
ASX Announcement Ansell Limited 2020 Virtual Capital Markets Day 15 October, 2020 – Ansell Limited (ASX:ANN), a global leader in personal protection safety solutions, today provides the attached presentation in relation to its 2020 Virtual Capital Markets Day. The Virtual Capital Markets Investor Da
Slide 2: Ansell Limited Capital Markets Day
Ansell Limited Capital Markets Day 15 October 2020
Slide 3: Disclaimer
Disclaimer The following presentation has been prepared by Ansell Limited (Ansell or the company) for information purposes only. The information contained in this presentation is a summary only and does not purport to be complete. It should be read in conjunction with Ansell’s other periodic and con
Slide 4: Ask a Question
Ask a Question At any time during the webcast, you can submit a question using the “ASK A QUESTION” box on the webcast dashboard 1. Click on Ask a Question box below the webcast dashboard Analysts using the 2. A question box will pop up teleconference where you can type and submit facility, dial *1
Slide 5: Agenda
AGENDA TIME TOPIC SPEAKERS 15:02 Introductions / Opening Video • Anita Chow 15:09 Ansell - Safer, Smarter, Stronger • Magnus Nicolin 15:29 Healthcare GBU Overview – Key Building Blocks • Darryl Nazareth 15:44 Industrial GBU Overview – More Selective, Better Focused • Neil Salmon 15:58 Sales Excellen
Slide 6: Key Areas Addressed Today
Key Areas Addressed Today 1 Ansell’s view on the effect of COVID-19 on the PPE industry now and in the coming 2 years 2 What were the targets we committed to in our last Capital Markets Day in Oct-17 and what have we delivered? 3 What actions has Ansell taken or will Ansell take based on learnings i
Slide 7: Ansell - Safer, Smarter, Stronger
01 Ansell - Safer, Smarter, Stronger Introduction
Slide 8: Ansell is a Safety Company
INTRODUCTION Ansell is a Safety Company Our mission is to provide innovative and effective solutions for safety, well-being, and peace of mind, no matter who or where you are Every day, more than 13,500 people located in 55+ countries design, manufacture and market products on which millions of work
Slide 9: A Diversified Global Leader in Protection Solutions
INTRODUCTION A Diversified Global Leader in Protection Solutions A$5B INDUSTRIAL HEALTHCARE Market capitalisation ASX 100 company 45% 55% Sales into 100+ Countries of total Sales of total Sales 13 $719m Revenue $895m Revenue Manufacturing 12.8% EBIT Margin 15.9% EBIT Margin Facilities 11 INDUSTRIAL
Slide 10: Economy Starting to Recover but Uncertainties Remain
INTRODUCTION Economy Starting to Recover but Uncertainties Remain YoY GDP GROWTH Global growth negatively impacted 6% 8% by COVID-19 5% 5% 6% 3% 2% 1% 4% 1% 1% Governments providing stimulus to (5%) (8%) (9%) help protect the economy (10%) 2019 2020F 2021F Global US Euro China Latin America Industri
Slide 11: COVID-19 Impact on Key Industries Now & Near Term
INTRODUCTION COVID-19 Impact on Key Industries Now & Near Term NET POSITIVE IMPACT (>40% EXPOSURE) Acute Care Alternate Life & Bio Government Food Warehousing / Janitorial- Exam Care1 Science Processing Logistics Sanitation NET NEUTRAL IMPACT (~25-35% EXPOSURE) Surgical Chemical Auto Aftermarket Uti
Slide 12: Ansell Strategy Also Delivering in COVID-19 Environment
INTRODUCTION Ansell Strategy Also Delivering in COVID-19 Environment CONTINUED OPTIMISATION OF INVESTING IN MANUFACTURING TRUSTED BRANDS AND PORTFOLIO CAPABILITY SALESFORCE EXPANSION ▪ Deliberate focus on safety and ▪ ~$500m in capital expenditure in ▪ Core and industry known brands securing #1 or #
Slide 13: Successfully Delivered on 2017 CMD Financial Targets
INTRODUCTION Successfully Delivered on 2017 CMD Financial Targets TARGETS RESULTS1 PERFORMANCE $1.6B F'20 Sales SALES 3%-5% F’17-F'20 Org CAGR: +4.5% 121.8¢ F'20 EPS EPS 5%-10% F’17-F'20 CC CAGR: +17.5% Improving to 14.0%-15.0% F’17: 12.3% ROCE by F’20 F'20: 14.0% Strong Cash Flow $192m F’20 OCF2 CA
Slide 14: Total Shareholder Returns
INTRODUCTION Total Shareholder Returns +23% CAGR in last 3 years 400 Ansell 10 Yr 350 If $10,000 was invested CAGR: 300 in August 2010, it would +13% (Rebased to 100) now be worth $34,747 250 200 All Ordinaries 10 Yr Accumulation Index CAGR: 150 +3% 100 50 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 A
Slide 15: How Can We Continue to Deliver?
INTRODUCTION How Can We Continue to Deliver? To answer this question, we have to discuss the dimensions of differentiation that contribute to providing superior value or capability ahead of leading competitors. We will do this by discussing each of our 8 dimensions of differentiation in turn We will
Slide 16: 8 Dimensions of Differentiation
INTRODUCTION Key: 8 Dimensions of Differentiation Solid Capabilities already in place Further strengthen & invest Make it easy with digital solutions to Industry leading customer intimacy do business with and within Ansell and expertise to solve customers’ 8. 1. safety and productivity challenges DI
Slide 17: Industry Leading Customer Intimacy and Expertise
INTRODUCTION Industry Leading Customer Intimacy and Expertise SALESFORCE WITH BREADTH & SCALE GLOBAL COVERAGE 800+ Salesforce Sales to 100+ 170 Salesforce Large safety focused salesforce countries in BRIC ANSELLGUARDIAN PROVIDES DIFFERENTIATION EXPANDING B2B DIGITAL CAPABILITIES Proprietary service
Slide 18: Continued New Product and Technology Innovation
INTRODUCTION Continued New Product and Technology Innovation 53-001 11-840 Drop-down $50m+ Garment S-BDSH A smarter choice for Extreme durability for spent on broader chemical extended wear & 20% Unique design offers true aseptic donning protection higher abrasion protection R&D since Innovative “2
Slide 19: Strong Brand Awareness
INTRODUCTION Strong Brand Awareness • Ansell has been continuing to GROWTH BRANDS AS % SALES rationalise and streamline brands 81% 74% • The focus has been on further 69% 62% increasing the “Growth Brands” where sales teams have targeted customer conversions to growth brands • Targeted bolt-on M&A h
Slide 20: Expanded Geographical Coverage
INTRODUCTION Expanded Geographical Coverage • Ansell is expanding its market presence in key emerging markets, specifically Russia, India, SE Asia, China, Africa and Latin America F’17-F’20 EMERGING MARKET ORGANIC SALES CAGR ‒ Increased sales headcount in emerging markets by ~17% in the last 2 years
Slide 21: Enhanced Regulatory and Compliance Services
INTRODUCTION Enhanced Regulatory and Compliance Services • Moved the function beyond simple compliance to setting and guiding authorities on needed standards, this has become a competitive advantage for Ansell • Business is subject to consistently evolving regulatory changes. In the last few years,
Slide 22: Continued Investment in Manufacturing
INTRODUCTION Continued Investment in Manufacturing SIGNIFICANT INVESTMENT MADE SUCCESSFUL EXECUTION OF FOCUS ON CSR AT WITH MORE TO COME TRANSFORMATION MANUFACTURING SITES • Over $200m spent from start of F’17 in • Transformation Program delivered • Strong commitment to fair and safe relation to mai
Slide 23: Focus on Delivery & Supply
INTRODUCTION Focus on Delivery & Supply REDESIGN OF SALES & IMPROVED UPGRADED OPERATIONS PLANNING FORECASTING GLOBAL SUPPLY CHAIN PROCESS PROCESSES LOGISTICS ORGANISATION • Resetting of the • Developed and • Centralised Team • Formation of global safety stock strategy deployed new created in Cyberja
Slide 24: Ensuring Business is Digitally Enabled
INTRODUCTION Ensuring Business is Digitally Enabled 300+ legacy sites 28,000 digital assets are now offline or available online via our redirected to Digital Asset .COM (98% complete) Ansell.com Management system Product Information 1 SITE System holds detailed DESIGN product info on 1,840 1 GLOBAL
Slide 25: Distinctive CSR & Sustainability Strategy
INTRODUCTION Distinctive CSR & Sustainability Strategy • We care about our people and Better safety is our top priority • We support our communities Society Employee and • We play fair and conduct business wider workforce Community Business ethics ethically • We use natural resources with care Bette
Slide 26: Ansell's Leadership Team Strengthened
INTRODUCTION Ansell’s Leadership Team Strengthened 10yrs Changed role New hire Magnus Nicolin Managing Director and Chief Executive Years at Ansell Officer 1yr 7yrs 9yrs 1yr 1yr 1yr 10yrs 15yrs Neil Salmon Zubair Javeed Darryl Nazareth John Marsden Amanda Manzoni Rikard Froberg President Renae Leary
Slide 27: CEO Succession preparation continues
INTRODUCTION CEO Succession preparation continues • Ansell’s Board has a well-planned process for CEO succession • CEO succession timeline has been extended for six months as a result of travel restrictions due to COVID-19 • Ansell’s two internal successor candidates are making good progress. Extern
Slide 28: Priorities for Near to Medium Term
Ansell - Safer, Smarter, 02 Stronger Priorities for Near to Medium Term
Slide 29: Key Industry Themes – Macro
PRIORITIES FOR NEAR TO MEDIUM TERM Key Industry Themes – Macro Slowdown of Shutdowns and economic slowdown impacting certain industries such as Global Economy aerospace, tourism, mobility and construction more than others COVID-19 has changed behaviors driving increased PPE usage – new industries In
Slide 30: Key Industry Themes – Go to Market & Needs
PRIORITIES FOR NEAR TO MEDIUM TERM Key Industry Themes – Go to Market & Needs Automotive industry increasing automation and shift to electrical vehicles changes Automotive protection needs from oily/grip & cut to more multi-purpose, electrical and smart Sector Changing gloves Increasing Chemical reg
Slide 31: Impact on the PPE & Healthcare Industries Post COVID-19
PRIORITIES FOR NEAR TO MEDIUM TERM Impact on the PPE & Healthcare Industries Post COVID-19 • Safety protocols have been strengthened and are expected to be driving higher glove and suit use in many "industrial" verticals like food, janitorial-sanitation, logistics, automotive after market, energy an
Slide 32: Key Priorities in Addition to Keeping our Operations Safe
PRIORITIES FOR NEAR TO MEDIUM TERM Key Priorities in Addition to Keeping our Operations Safe Drive Growth Sales Excellence Innovation • Accelerate Life Sciences, Single Use & • Successfully respond to dynamic and • Innovation in “latex” formulations and Body Protection supply changing market conditi
Slide 33: Healthcare GBU – Key Building Blocks
03 Healthcare GBU – Key Building Blocks
Slide 34: Healthcare Vision & Key Strategies
HEALTHCARE GBU Healthcare Vision & Key Strategies Our customers will recognise us as the highest quality and most reliable supplier of innovative single-use, surgical and life sciences safety solutions Achieve vision through focus on 3 objectives: driven through energy, teamwork and execution of our
Slide 35: Who We Are & Where We Are Focused
HEALTHCARE GBU Who We Are & Where We Are Focused PRODUCT OVERVIEW BUSINESS SEGMENTS1 INDUSTRY LEADING BRANDS Exam & Single Exam & Single Use 30% Use Gloves Life Sciences 62% 8% Surgical Surgical Gloves & Health Safety GLOBAL PRESENCE1 END CUSTOMER EXPOSURE Solutions EMEA NA 25% 56% APAC 16% LAC Acut
Slide 36: Key Business Updates Since Oct-17 CMD
HEALTHCARE GBU Key Business Updates Since Oct-17 CMD REVENUE AND EBIT MARGIN Strong • Success with multi-layer and chemical platform 3 Yr Growth in • Gains in EMS and alternative care amid COVID-19 demand CAGR: • Enhanced position in US EMS thru Digitcare acquisition +6.7%1 $895m Exam/SU • Investmen
Slide 37: Ansell's HGBU Market Position
HEALTHCARE GBU Ansell’s HGBU Market Position EXAM & SINGLE USE SURGICAL GLOVES LIFE SCIENCES Addressable Market $6.0bn¹ $1.3bn $2.2bn Focus Market / Market Growth $3.9bn¹ ~6%² $1.3bn ~3% $2.2bn ~7% Ansell Market Share ~14% ~19% ~7% • #1 player in branded Industrial markets • #1 branded volume player
Slide 38: HGBU Industry Trends
HEALTHCARE GBU HGBU Industry Trends AGING GLOBAL POPULATION INCREASED & NEW GLOVE USAGE PHARMA INDUSTRY Increase in aging global population & improved COVID-19 accelerating usage by existing end- Fast growing pharma industry and need for new accessible healthcare in emerging markets users in both de
Slide 39: Exam & Single Use Industry Dynamics
HEALTHCARE GBU Exam & Single Use Industry Dynamics HIGH LIMITED RAW MATERIAL ADDITIONAL GLOBAL DEMAND GLOBAL SUPPLY IMPACT NEW COSTS • Global demand tripled driven • ~370 billion gloves currently • Supply of a key raw material, • Labour cost inflation by healthcare, frontline produced annually but a
Slide 40: Increased Investments to Support Growth
Grow & HEALTHCARE GBU Strengthen Increased Investments to Support Growth our Core Business Thailand Sri Lanka/Malaysia Careplus JV, Malaysia Malaysia Single Use Synthetic Surgical Exam, NRL Surgical Life Sciences US$39m US$13m US$25m¹ US$2m • Supports Microflex ® • Focus on Synthetic • Expand in-hou
Slide 41: Product Innovation Drives Growth of HGBU
HEALTHCARE GBU Deliver High Value Products to Product Innovation Drives Growth of HGBU Customers NEW PRODUCT AS % TOTAL SALES 93-260 PI Hybrid Drop-Down Sterile Garment High Chemical Resistant Surgical Glove Antistatic Disposable Garment Disposable Glove 14.2% 13.2% Broad chemical protection with In
Slide 42: Continue Growing Emerging Market Presence
Invest & Expand HEALTHCARE GBU Fast Growing Continue Growing Emerging Market Presence Markets & Segments FOCUS AREAS EMERGING MARKET SALES $149 m PORTFOLIO Both Premium and Value range $109 m GEOGRAPHICAL EXPANSION India, China, SEA, Russia, Latin America CLINICAL AND END USER EDUCATION Communicatio
Slide 43: Key Investment Themes
HEALTHCARE GBU Key Investment Themes 1 Differentiated products and solutions will ensure continued profitable growth 2 Global presence and diversified customer base 3 Well positioned for future growth with investments in new capacity & capabilities 4 Increased productivity and lower production costs
Slide 44: Industrial GBU – More Selective, Better Focused
04 Industrial GBU – More Selective, Better Focused
Slide 45: IGBU in 2020
INDUSTRIAL GBU IGBU in 2020 IGBU PURPOSE STATE OF BUSINESS • Reduce injuries and occupational illness amongst workers • IGBU has been reshaped and restructured since last CMD, worldwide with significant accomplishments benefiting market position, productivity and competitiveness • Through unique dif
Slide 46: Who We Are & Where We Are Focused
INDUSTRIAL GBU Who We Are & Where We Are Focused PRODUCT CATEGORIES BUSINESS SEGMENTS1 INDUSTRY LEADING BRANDS 1% Mechanical Gloves 38% Chemical Mechanical 61% Mechanical Sleeves Others² GLOBAL PRESENCE1 END CUSTOMER EXPOSURE EMEA Chemical Hand AMERICAS 43% Protection 37% APAC 9% Automotive M,M&E Ch
Slide 47: Competitive Environment & Market Position
INDUSTRIAL GBU Competitive Environment & Market Position MECHANICAL CHEMICAL Addressable Market $3.8bn $3.5bn Focus Market / Market Growth $2.7bn +2% $2.7bn +4% Market Share ~17% ~10% • Leading player in mechanical glove protection • Leading player in chemical glove protection and #2 position in che
Slide 48: Key Business Updates Since Oct-17 CMD
INDUSTRIAL GBU Key Business Updates Since Oct-17 CMD • Harmonised over 75 brands into 5 key brands REVENUE AND EBIT MARGIN Brand which now represent 80%+ of sales Consolidation • Flagship brands HyFlex® (Mechanical) and 3 Yr CAGR: AlphaTec® (Chemical) each exceed $200m sales +2.0%1 $719m • Manufactu
Slide 49: Business Now Well Positioned For Improved Growth
INDUSTRIAL GBU Business Now Well Positioned For Improved Growth Market • Near term demand declines for mechanical PPE used in manufacturing sector partially offset Conditions by strengthened demand from other verticals Supportive To • Chemical enjoying increased PPE usage in support of sanitation an
Slide 50: Smart PPE Goes Beyond Physical Protection
INDUSTRIAL GBU Smart PPE Goes Beyond Physical Protection: Information Solutions Create Significant Market Growth Opportunity Major Cause of Injury PPE Equipment Solutions Ergonomic Injury PPE Information Solutions • Est. $4bn+ p.a. medical costs of hand / wrist muscular skeletal disease Chemical Haz
Slide 51: Advanced PPE Materials And Better Understanding Of Hazards
INDUSTRIAL GBU Advanced PPE Materials And Better Understanding Of Hazards Both Essential To Reducing Occupational Illness Chemical Hazard & Occupational Illness • Est. 860,00 occupational illnesses p.a. in US • Skin exposure bigger issue than respiratory illness BENEFITS OF IMPROVED PPE BENEFITS OF
Slide 52: Warning When At Risk – Can Reduce Non Compliance
INDUSTRIAL GBU Eliminating Reasons Workers Remove PPE, While Also Warning When At Risk – Can Reduce Non Compliance Wrong or No PPE in Mechanical Settings • More Injuries to Hand & Arm than any other body part • 71% of Hand & Arm Injuries in US could have been prevented by PPE BENEFITS OF IMPROVED PP
Slide 53: Improved PPE Can Reduce Ergo Injury
INDUSTRIAL GBU Improved PPE Can Reduce Ergo Injury, Information From Connected PPE On Risky Tasks Can Eliminate Injury Risk Ergonomic Injury • Est. $4bn+ p.a. medical costs of hand / wrist muscular skeletal disease • Ergonomic injuries require 38% more time away from work than the avg injury BENEFIT
Slide 54: Investment Themes
INDUSTRIAL GBU Investment Themes • End markets remain attractive and providing opportunity for growth – Customer manufacturing practices and PPE needs continue to evolve creating growth opportunities served by Ansell’s expertise and relevance across broad spectrum of vertical, applications and geogr
Slide 55: Sales Excellence
” GAMMEX Alphatec* MICR@FLEX’
Slide 56: Ansell's Sales Capability is Unique in the Industry
SALES EXCELLENCE Ansell’s Sales Capability is Unique in the Industry GEOGRAPHIC PRODUCT END-USER REACH PORTFOLIO INTIMACY • Sales in 100+ countries • 1,000+ styles • We conducted • 800+ Sales Professionals • Protection solutions to more than • 15,000+ AnsellGuardian 25 industries & sectors • 50,000+
Slide 57: COVID-19 Impact on Key Markets and Customers
SALES EXCELLENCE COVID-19 Impact on Key Markets and Customers PAST • Severe shortage across markets Instant and unprecedented and PPE categories, national safety demand spike stocks quickly depleted and sometimes expired Lockdowns, curfews and • Rapid price increases, some cases other disruptions to
Slide 58: COVID-19 Impact on Key Markets and Customers
SALES EXCELLENCE COVID-19 Impact on Key Markets and Customers GOING FORWARD Gradual “re-opening” of manufacturing, alternate care • Market finding new equilibrium and elective surgeries • Continued demand for single-use PPE protocols enforced and gloves in excess of supply upgraded capacity Capacity
Slide 59: Ansell's Dynamic Response to Rapidly Changing Market Conditions
SALES EXCELLENCE Ansell’s Dynamic Response to Rapidly Changing Market Conditions Pricing Supply & Product Customer Alternative Direct Engagement Allocation Communication Products with Governments & Influencing Standard Setting 58
Slide 60: Maximising Growth with Virtual Selling & Problem Solving
SALES EXCELLENCE Maximising Growth with Virtual Selling & Problem Solving e-LEARNING 1,000+ sessions with customers delivered INTERACTIVE COLLATERAL PPE RESOURCE CENTER THOUGHT LEADERSHIP / SOCIAL MEDIA LEVERAGE SELLING DIGITAL ANSELL MARKETING PORTFOLIO ANSELL VIRTUAL GUARDIAN MOBILE APP 59
Slide 61: Operations & Global Supply Chain – Path to World Class
06 Operations & Global Supply Chain – Path to World Class
Slide 62: Investing for Sustainable Growth
OPERATIONS & GLOBAL SUPPLY CHAIN Investing for Sustainable Growth Operations & Supply Chain Strategy B. IMPROVE ASSET C. BUILD ORGANISATIONAL A. ENABLE GROWTH EFFECTIVENESS CAPABILITY • Strong Foundations: build on • Completed Transformation: • Global Engineering: increased existing global network &
Slide 63: Key Principles of Enabling Growth
OPERATIONS & GLOBAL SUPPLY CHAIN Key Principles of Enabling Growth Resiliency as a Key Design Principle 1 2 • Secure all plants against COVID-19 supply chain disruptions • Diversify supply locations in key categories, especially Leverage Existing Network Strength where single sourced or heavily depe
Slide 64: Truly Global Footprint
OPERATIONS & GLOBAL SUPPLY CHAIN Truly Global Footprint 9 North America Europe, Lithuania Countries Middle East Russia* and Africa Malaysia** 13 28 Mexico Portugal China Manufacturing Distribution Thailand Facilities Facilities Vietnam Latin America Key and Caribbean Manufacturing Operations Asia Pa
Slide 65: Expansion to Support Growth and Resilience
OPERATIONS & GLOBAL SUPPLY CHAIN Expansion to Support Growth and Resilience China Lithuania Russia Mechanical Exam North America Europe, Lithuania Middle East Mexico and Africa Russia* Portugal Thailand Vietnam Chemical Surgical Thailand Latin America Sri Lanka (x2) and Caribbean Sri Lanka (x2) Body
Slide 66: Key Trends – Improving Asset Effectiveness
OPERATIONS & GLOBAL SUPPLY CHAIN Key Trends – Improving Asset Effectiveness 1 Old assumption - unlimited labour in every location Labour Wage inflation high, constraints in both low and high skilled talent – 2 Availability competition and choice COVID-19 lessons: rolling restrictions, impossible to
Slide 67: Strategies to Improve Asset Effectiveness
OPERATIONS & GLOBAL SUPPLY CHAIN Strategies to Improve Asset Effectiveness 1 • Productivity 2.0 Step change program to reduce labour intensity 2 • Asset Digitialisation New assets digitalised from start, • Decision making process similar to asset investment Brownfield strategy of integrating existin
Slide 68: Plant Automation Strategy (Productivity 2.0)
OPERATIONS & GLOBAL SUPPLY CHAIN Plant Automation Strategy (Productivity 2.0) A. Map Current Process for Automatability B. Estimate Size of the Opportunity C. Develop Prioritised Program Funnel D. Internal and External Partner Technology Development – D. Detailed and Pilot, Prove and Deploy E. Inves
Slide 69: Building Organisational Capability
GLOBAL SUPPLY CHAIN Building Organisational Capability 1 • Re-investing in Engineering Competence Long track record of delivery 2 • Ansell Production System As asset intensity increases, it changes • Increase delivery arm in line with new spend the nature of manufacturing intensity & new Covid reali
Slide 70: CSR, Sustainability and Employees
07 CSR, Sustainability and Employees
Slide 71: Our Responsible and Responsive Strategy & Purpose
CSR, SUSTAINABILITY AND EMPLOYEES Our Responsible and Responsive Strategy & Purpose • We care about our people and Better safety is our top priority • We support our communities Society Employee and • We play fair and conduct business wider workforce Community Business Ethics ethically • We use natu
Slide 72: Journey Towards Effective Labour Rights Management
CSR, SUSTAINABILITY AND EMPLOYEES Journey Towards Effective Labour Rights Management 2016 2017 2018 2019 2020 • CSR Materiality • Established CSR • Established ‘Labour • Deployed SMETA 4- • Implementation of ethical Study Steering Committee Standard Pillar Social Audits at and responsible foreign
Slide 73: Sustainable Environmental Management
Sustainable Environmental Management MATERIALS WATER GHG ENERGY AND WASTE Target Target Goal Target 15% intensity reduction in water 25% intensity reduction of Scope Continuous improvement on Zero Waste to Landfill from all withdrawals below the F’16 1 & 2 emissions below F’16 energy reduction and e
Slide 74: Diverse and Inclusive Workforce
CSR, SUSTAINABILITY AND EMPLOYEES Diverse and Inclusive Workforce GENDER BY TYPE BY REGION NA 4% 51% EMEA 7% 49% APAC 86% Manufacturing Professionals LAC 3% Male Female 78% 22% FEMALE LEADERSHIP BY AGE EMPLOYEE ENGAGEMENT Board 50% Gen Z (< 23) 13% Director & Above 28% Millennials (23 –38) 49% “
Slide 75: Talent Development Strategy – Key Priorities
CSR, SUSTAINABILITY AND EMPLOYEES Talent Development Strategy – Key Priorities Create a Culture of Strengthen our Build a Strong Further Build Deepen Functional Learning & Leadership Pipeline of Talent Capabilities in Digital Expertise Development Capabilities across the Business and Analytics The a
Slide 76: Financial Results & Future Outlook
08 Financial Results & Future Outlook
Slide 77: Track Record of Sales and Earnings Growth
FINANCIAL RESULTS & FUTURE OUTLOOK Track Record of Sales and Earnings Growth GROUP ORGANIC SALES GROWTH EBIT PERFORMANCE EPS PERFORMANCE 3 Yr 7.6% 240.0 3 Yr 3 Yr 20.00%CAGR: CAGR: CAGR: $220m 121.8¢ +4.5% 220.0 +9.8% +17.5% 111.5¢ $203m 18.00% 102.0¢ 200.0 $193m $178m 16.00%81.0¢ 4.0% 180.0 13.5% 1
Slide 78: Attractive Cash Generation and Shareholder Returns
FINANCIAL RESULTS & FUTURE OUTLOOK Attractive Cash Generation and Shareholder Returns OCF AND CASH CONVERSION CASH RETURN TO SHAREHOLDERS ROCE PERFORMANCE 250 5500% 250.0 117.7% 120.00% 50.0¢ 14.0% 115.00% 200 5000% 200.0 $192m 46.8¢ $165m 110.00% 45.5¢ 13.2% $146m 44.0¢ 150.0 150 105.00% $176m 4500
Slide 79: Strong Balance Sheet Providing Investment Opportunities
FINANCIAL RESULTS & FUTURE OUTLOOK Strong Balance Sheet Providing Investment Opportunities NET DEBT/EBITDA1 • As at 30 June 2020, Ansell had $406.1m cash at bank and short term deposits, $519.9m interest bearing debt 1.6x and $57.6m lease liabilities • Additional ~$200m committed undrawn debt 0.6x 0
Slide 80: Investing to Support Growth
FINANCIAL RESULTS & FUTURE OUTLOOK Investing to Support Growth CAPITAL EXPENDITURE • Capex in the last 4 years has been around ~3.0-4.0% of sales $105m • F’21 capex is expected to be elevated as the business $95m undertakes a number of growth/expansion and profit improvement projects $64.8m – ~$50-6
Slide 81: Achieving Good Returns on Previous Investments
FINANCIAL RESULTS & FUTURE OUTLOOK Achieving Good Returns on Previous Investments AVERAGE INVESTMENT RETURN COMPETITIVENESS Smart Pack Packaging 45%+ • Competitiveness investment provide benefits to offset inflationary costs in labour and energy rates Chemical Protection 40%+ Smart Lines • Biomass e
Slide 82: Proven Track Record of Strategic Acquisitions & Joint Venture Investments
FINANCIAL RESULTS & FUTURE OUTLOOK Proven Track Record of Strategic Acquisitions & Joint Venture Investments Careplus (M) Sdn Bhd Date Ann. Jan-2017 Oct-2018 Feb-2019 Feb-2020 Price £45m $6.7m $69.6m $8.9m EV/EBITDA ~7x N/A N/A N/A Strengthens position in Life Further consolidates Ansell’s Propels A
Slide 83: Capital Management Framework
FINANCIAL RESULTS & FUTURE OUTLOOK Capital Management Framework • Comfortable with existing debt levels and investment grade credit profile Strong Balance Sheet • Strong cash generation and existing cash balances sufficient to support business and shareholder needs • Disciplined approach to capex in
Slide 84: Medium Term Financial Targets
FINANCIAL RESULTS & FUTURE OUTLOOK Medium Term Financial Targets • HGBU growth expected to be higher than IGBU in near Target Organic term 3 – 5% p.a. Growth1 • F’21 organic growth likely to be significantly higher than these levels • Price and volume growth combined with operating leverage Target E
Slide 85: Why Ansell
Ansell HyFlex’ cAmMex Alphalec’ MICR@®FLEX’
Slide 86: Ansell Tuned Shareholder Value Creation Model
CONCLUSION Ansell “Tuned” Shareholder Value Creation Model By Being Ansell will Targeting Gain Share Performance Differentiated • Organically through delivery of superior value 3-5% organic growth p.a. Business • Accelerate growth through acquisitions Focused Demonstrate industry leadership through…
Slide 87: Key Takeaways
CONCLUSION Key Takeaways Capacity expansion and manufacturing Ansell is a safety company and safety is automation will help drive business growth more important than ever while lowering cost Enhancing the supply chain will deliver Our 8 dimensions of differentiation give us improved customer service
Slide 88: Q&A
Q&A MAGNUS NICOLIN ZUBAIR JAVEED NEIL SALMON DARRYL NAZARETH Managing Director and Chief Financial Officer President of IGBU President of HGBU Chief Executive Officer RIKARD FROBERG RENAE LEARY JOHN MARSDEN AMANDA MANZONI Chief Commercial Officer – Chief Commercial Officer – Senior Vice President -