Slide 1: Ansell FY24 Full Year Results
ANSELL FY24 FULL YEAR RESULTS 20 August 2024 1
Slide 2: Disclaimer and Non-IFRS Measures
FULL YEAR RESULTS FY24 Disclaimer and Non-IFRS Measures 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 con
Slide 3: Contents
CONTENTS 1. Business Update Neil Salmon 2. Financial Results Zubair Javeed 3. FY25 Outlook Neil Salmon 4. Q&A 3
Slide 4: 1. Business Update
1. Business Update 4
Slide 5: Safety & Sustainability Highlights
FULL YEAR RESULTS FY24 Safety & Sustainability Highlights Target Progress Assessment People High level of employee risk reporting On track. Higher rates of reporting vs FY23 We are a recognised ~ FY24 TRIFR of 0.949 higher than FY23. Increase partly on Ansell Seremban 10% annual reduction in TRIFR
Slide 6: Performance Overview
FULL YEAR RESULTS FY24 Performance Overview Performance Highlights Summary Financials What We Expected in H2 Results ($m)1 FY24 CC % ∆2 • Sales growth in Industrial Growth in Mechanical and Chemical, EBIT Sales 1,619.3 (2.9%) margin improvement GPADE 516.8 1.8% • Return to sales growth in Healthca
Slide 7: FY24 Sales Highlights
FULL YEAR RESULTS FY24 FY24 Sales Highlights Industrial Segment Healthcare Segment Constant Currency1 growth: 3.3% Constant Currency1 growth: (8.0%) Mechanical Chemical Exam/SU Surgical Life Sciences CC1 growth: 2.7% CC1 growth: 4.0% CC1 growth: (5.9%) CC1 growth: (13.0%) CC1 growth: 0.2% • Maintain
Slide 8: Improved Sales Trends In H2, Long Term Growth vs FY19
FULL YEAR RESULTS FY24 Improved Sales Trends In H2, Long Term Growth vs FY19 FY24 H2 vs H1 FY24 vs FY19 CAGR1 Strong Sequential Growth in H2 Growth in All SBU’s Healthcare +8.3% Healthcare +1.6% Industrial +2.9% Industrial +4.2% 13.8% 4.9% 9.8% 3.4% 3.1% 2.6% 6.1% 4.7% 3.1% 0.2% Mechanical Chemical
Slide 9: Continued Focus On Investments To Enhance Long Term Growth & Differentiation
FULL YEAR RESULTS FY24 Continued Focus On Investments To Enhance Long Term Growth & Differentiation Emerging Markets Product Innovation ($m) FY24 CC1 % ∆ | 11-571 | R840 Sales 417.6 0.3% Ultra-lightweight high level Light duty impact-resistant cut protection glove glove % Ansell Sales 25.8% Providin
Slide 10: Accelerated Productivity Investment Program: Significant Progress Made In FY24
FULL YEAR RESULTS FY24 Accelerated Productivity Investment Program: Significant Progress Made In FY24 Work Stream & Objective FY24 Progress FY25 Focus Organisation • Implemented simpler, lower cost, customer- • Changes complete Simplify & Streamline Our focused organisational structure Organisationa
Slide 11: Accelerated Productivity Investment Program: Savings Ahead Of Original Target
FULL YEAR RESULTS FY24 Accelerated Productivity Investment Program: Savings Ahead Of Original Target Savings of $28m achieved in FY24, on track for upgraded annualised savings target of $50m in FY26 Savings Pre-Tax P&L Costs • FY24 results included $28m of savings from APIP ($m) FY24 FY25 initiative
Slide 12: KCPPE Acquisition (Renamed KBU) Accelerates Ansell's Growth Strategy
FULL YEAR RESULTS FY24 KCPPE Acquisition (Renamed KBU) Accelerates Ansell’s Growth Strategy & Generates Scale Benefits Strategically compelling acquisition that represents a significant value creation opportunity Enhanced exposure 60% KBU sales in Scientific verticals, including half in high to at
Slide 13: KBU Business Update
FULL YEAR RESULTS FY24 KBU Business Update Good early integration progress, trading performance in line with expectations Integration • Maintain business continuity through transition period in which KBU runs standalone Priorities • Exit transitional services arrangements within 12 months • Position
Slide 14: 2. Financial Results
2. Financial Results 14
Slide 15: Profit & Loss Summary
FULL YEAR RESULTS FY24 Profit & Loss Summary P&L Summary Comments ($m) FY23 FY24 %∆ CC1 % ∆ • Overall sales decline on expected reduction in Sales 1,655.1 1,619.3 (2.2%) (2.9%) Healthcare sales, partially offset by growth in Industrial Cost of Goods Sold (1,038.4) (994.5) (4.2%) (5.6%) • Favourable
Slide 16: Industrial Segment
FULL YEAR RESULTS FY24 Industrial Segment Industrial Segment – P&L Summary Sales Performance ($m) FY23 FY24 %∆ CC1 % ∆ • Sales increase driven by pricing and favourable product mix Sales 750.9 785.1 4.6% 3.3% • Sales included one-off pricing benefit of $5m on Chemical retail EBIT 103.9 129.3 24.4% 2
Slide 17: Healthcare Segment
FULL YEAR RESULTS FY24 Healthcare Segment Healthcare Segment – P&L Summary Sales Performance ($m) FY23 FY24 %∆ CC1 % ∆ • Sales decline due to customer destocking in Surgical and Life Sales 904.2 834.2 (7.7%) (8.0%) Sciences, and carry forward impact of FY23 Exam/SU price reductions EBIT2 113.4 81.1
Slide 18: Input Costs
FULL YEAR RESULTS FY24 Input Costs FY24 Input Cost Trends • Lower NBR costs in FY24 vs FY23 partially offset by higher NRL costs. Other synthetics and yarns stable • NBR and NRL costs both increased in H2, expected to be higher in FY25 vs FY24 • Employee cost inflation in manufacturing locations aug
Slide 19: Capex Summary
FULL YEAR RESULTS FY24 Capex Summary FY24 Capex Summary • Total FY24 capex of $62.8m, including $23.6m for the greenfield India Surgical Facility India Surgical facility • Other spend included sustainability projects, site improvements and productivity initiatives, and supply expansion including inv
Slide 20: Completion Of KBU Acquisition
FULL YEAR RESULTS FY24 Completion Of KBU Acquisition • The acquisition of KBU for $638.9m was completed on 1-Jul-24 – Final consideration remains subject to closing purchase price adjustment • External funding for the acquisition included: – Institutional placement of $255.6m (A$400m) – USPP debt fu
Slide 21: Strong Cash Conversion
FULL YEAR RESULTS FY24 Strong Cash Conversion 305.2 (53.2) (30.0) 3.7 104.3 4.3 (24.1) (62.5) (17.8) (38.2) 393.6 310.5 FY24 201.9 167.9 ($m) (258.0) EBITDA Working Other Net Receipts Lease Net Capex Net Interest Taxes Operating Acquisitions / Dividend Buyback FX Net Debt / NIBD Pro Forma Capital Pa
Slide 22: Balance Sheet Summary
FULL YEAR RESULTS FY24 Balance Sheet Summary Balance Sheet Summary Comments ($m) Jun-23 Jun-24 • Balance sheet remains strong with Moody’s Baa2 investment Fixed Assets 351.7 349.3 grade rating Intangibles 1,059.7 1,054.8 • Working capital reduction of $104.5m vs. 30-Jun-23 Right of Use Assets 85.1 8
Slide 23: Long-Dated Debt Maturities, Conservative Funding Profile Post-KBU Acquisition
FULL YEAR RESULTS FY24 Long-Dated Debt Maturities, Conservative Funding Profile Post-KBU Acquisition Net Debt Summary Comments ($m) Jun-23 Jun-24 • Net Debt at 30-Jun-24 included consideration for the KBU acquisition Interest-Bearing Debt 407.0 766.3 which was paid on 1-Jul-24 Cash at Bank and Short
Slide 24: 3. FY25 Outlook
Ansell 3. FY25 Outlook
Slide 25: Actions Taken Through Period Of Pandemic Disruptions Position Ansell For Success
FULL YEAR RESULTS FY24 Actions Taken Through Period Of Pandemic Disruptions Position Ansell For Success Industry Developments Post Pandemic Ansell Focus & Actions Markets • Oversupply of commodity products challenging margins Maintained focus on long-term growth markets where of high-volume OEM pr
Slide 26: FY25 Priorities
FULL YEAR RESULTS FY24 FY25 Priorities Return to organic growth building on momentum in the second half of FY24; sustain benefits from productivity program; realise value from KBU acquisition Winning at the end user level through Productivity gains and economies of Disciplined capital allocation foc
Slide 27: FY25 Guidance
FULL YEAR RESULTS FY24 FY25 Guidance FY25 Adjusted EPS1 expected to be in the range of US107¢ to US127¢ Key Performance Assumptions EPS Assumptions Cash Flow & Capital Management • End markets broadly neutral, muted • Small earnings headwind from higher raw • Capex in the range of $60-70m, including
Slide 28: 4. Q&A
4. Q&A 28
Slide 29: Appendix
Appendix 29
Slide 30: Sales & EBIT Impact Of FX Movements
FULL YEAR RESULTS FY24 Sales & EBIT Impact Of FX Movements FX Impact ($m) Comment Sales EBIT FY24 vs FY23 • Net improvement in sales and EBIT driven by favourable FX Rate Movements 12.2 11.4 movements in the EUR and MYR against the USD FX Gain/(Loss) Variance – Hedge • Net foreign exchange loss on h
Slide 31: Constant Currency
FULL YEAR RESULTS FY24 Constant Currency Constant Currency Restated Prior Period ($m) • The presentation of constant currency information is designed to Industrial Healthcare Total facilitate comparability of reported earnings by restating the prior Segment Segment Group period’s results at the exch
Slide 32: Ansell Fact Sheet
FULL YEAR RESULTS FY24 Ansell Fact Sheet Key Figures Key FY25 Assumptions • Booked Tax Losses at 30 June 2024: $20.0m (Australia $16.7m) • FY25 forecast foreign exchange exposures by currency: Revenue currencies: USD 56%, EUR 25%, GBP 4%, CAD 3%, AUD 3% • Unbooked Tax Losses at 30 June 2024: $24.2m
Slide 33: Segment History
FULL YEAR RESULTS FY24 Segment History ($m) FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Sales 716.5 668.5 654.8 655.9 715.5 703.7 719.1 790.7 762.5 750.9 785.1 Industrial EBIT 90.5 89.0 82.8 79.8 86.9 98.7 92.4 112.4 107.0 103.9 129.3 % Margin 12.6% 13.3% 12.6% 12.2% 12.1% 14.0% 12.8% 14.
Slide 34: Glossary
FULL YEAR RESULTS FY24 Glossary APIP – Accelerated Productivity Investment Program FY19 – Financial Year 2019 NPV – Net Present Value AUD – Australian Dollar FY23 – Financial Year 2023 NRL – Natural Rubber Latex CAD – Canadian Dollar FY24 – Financial Year 2024 R&D – Research & Development CAGR – Com
Slide 35: Ansell
Ansell Lead the world to a safer future. www.ansell.com