Ansell Limited · ASX:ANN
Ansell — H1 FY23 Earnings Presentation
30 slides from Ansell's earnings presentation, Feb 14, 2023
Slide 1: Ansell FY23 Half Year Results
ANSELL FY23 HALF YEAR RESULTS 14 FEBRUARY 2023 1
Slide 2: Disclaimer and Non-IFRS Measures
HALF YEAR RESULT S FY23 Disclaimer and Non-IFRS Measures The follow ing presentation has been prepared by Ansell Limited (Ansell or the Company) for information purposes only. The inf ormation contained in this presentation is a summary only and does not purport to be complete. It should be read in
Slide 3: Contents
01 Busine ss Update Ne il Salm on 02 Financial Re sults Zubair Jav e e d CONTENTS 03 FY 23 Outlook Ne il Salm on 04 Q&A 3
Slide 4: Business Update
Ansell HyFlex: GAMMEX AlphaTec’ MICR@FLEX’
Slide 5: Key Highlights & Progress Against Strategic Priorities
HALF YEAR RESULT S FY23 Key Highlights & Progress Against Strategic Priorities EXTERNAL ENVIRONMENT RESULTS HIGHLIGHTS1 STRATEGIC PROGRESS • Favorable demand trends in • Strong sales growth in Industrial, • Greenfield India Surgical facility Industrial supported by key led by Mechanical progressing
Slide 6: Our Ansell Protects Mission Starts With The Safety Of Our People
HALF YEAR RESULT S FY23 Our Ansell Protects Mission Starts With The Safety Of Our People OUR PROGRESS IN H1 COMMENTARY • Strong first half safety performance a testament to effective safety leadership culture founded on LEADING INJURY strengthening the role of non-EHS specialists and senior INDICATO
Slide 7: Furthering Labour Rights Objectives
HALF YEAR RESULT S FY23 Furthering Labour Rights Objectives • Continued implementation of our Supplier Management Framework (SMF) CLARITY OF APPROACH • Commenced SMF Wave 2, onboarding suppliers of yarn, non-cotton textiles and synthetic latex, Clear principles, policies, incorporating learnings fro
Slide 8: Progress Towards Meeting Environmental Commitments
HALF YEAR RESULT S FY23 Progress Towards Meeting Environmental Commitments OUR COMMITMENTS FY23 H1 PROGRESS • 25% of electricity now sourced from renewables, increased from 2% in FY20 • Reduce Scope 1 and 2 emissions by 42% by 2030 and 100% by 2040, from • Investments in solar in Sri Lanka, Thailand
Slide 9: Statutory Results
HALF YEAR RESULT S FY23 Statutory Results ($m)1 FY22 H1 FY23 H1 %∆ ORGANIC CC2 % ∆ Sales 1,009.2 835.3 (17.2%) (11.5%) GPADE3 275.5 254.7 (7.5%) 4.6% Margin 27.3% 30.5% 320 bps 450 bps EBIT4 111.0 91.5 (17.6%) (0.1%) Margin 11.0% 11.0% 0 bps 120 bps EPS (US¢) 60.6¢ 50.6¢ (16.5%) 10.1% DPS (US¢) 24.2
Slide 10: Positive Three-Year Organic Constant Currency Growth in All SBUs
HALF YEAR RESULT S FY23 Positive Three-Year Organic Constant Currency 1 Growth in All SBUs ORGANIC CONSTANT CURRENCY1 GROWTH BY STRATEGIC BUSINESS UNIT HEALTHCARE GBU INDUSTRIAL GBU EXAM/SU SURGICAL LIFE SCIENCES MECHANICAL CHEMICAL 17.7% 14.8% 11.2% 7.6% 2.4% 3.1% 2.9% 3.9% (15.3%) FY23 H1 vs FY22
Slide 11: Continued Growth in Emerging Markets
HALF YEAR RESULT S FY23 Continued Growth in Emerging Markets MULTI-YEAR EMERGING MARKETS INVESTMENT STRATEGY DRIVING GROWTH AND DIVERSIFYING GEOGRAPHIC PRESENCE ($m) FY22 H1 FY23 H1 %∆ ORGANIC CC1 % ∆ Emerging Markets 222.3 204.4 (8.1%) 4.0% % Ansell Sales 22.0% 24.5% 250 bps 360 bps • Sales in Emer
Slide 12: Careplus Buyout Supports Surgical and Exam/SU Growth Strategies
HALF YEAR RESULT S FY23 Careplus Buyout Supports Surgical and Exam/SU Growth Strategies CAREPLUS BUYOUT – KEY BENEFITS • Announced agreement to acquire remaining 50% shareholding from Careplus Group for RM 37.5 million (approx. $9m) to make Careplus a wholly-owned subsidiary of Ansell • Full ownersh
Slide 13: Financial Results
02 Financial Results 13
Slide 14: Profit & Loss Summary
HALF YEAR RESULT S FY23 Profit & Loss Summary ORGANIC COMMENTS ($m) GrowthFY22 Brands H1 Continue FY23 H1 ∆%Strong CC1Performance %∆ +9% YoY Sales 1,009.2 835.3 (17.2%) (11.5%) • Sales declined 11.5% on an organic-constant (683.8) (529.7) (22.5%) (18.6%) currency-basis1. 6.4% growth in Industrial GB
Slide 15: Healthcare GBU Highlights
HALF YEAR RESULT S FY23 Healthcare GBU Highlights COMMENTS ($m) FY22 H1 FY23 H1 ∆% ORGANIC CC1 % ∆ SALES PERFORMANCE Sales 632.1 467.0 (26.1%) (21.9%) • Sales of $467.0m, decline of 21.9% on an organic constant currency-basis1 EBIT 2 63.7 55.9 (12.2%) 11.3% • Continued strong organic constant curren
Slide 16: Industrial GBU Highlights
HALF YEAR RESULT S FY23 Industrial GBU Highlights COMMENTS ($m) FY22 H1 FY23 H1 ∆% ORGANIC CC1 % ∆ SALES PERFORMANCE Sales 377.1 368.3 (2.3%) 6.4% • Sales of $368.3m, organic constant currency1 growth of 6.4% • Continued momentum in Mechanical with growth in all regions, EBIT 56.3 42.8 (24.0%) (12.8
Slide 17: Input Cost Trends Mixed
HALF YEAR RESULT S FY23 Input Cost Trends Mixed RAW MATERIAL COSTS DECLINING, ENERGY COSTS INCREASING, STABILITY IN OUTSOURCED EXAM/SU • Declines in NRL and NBR latex costs through H1 • Energy costs have increased, particularly in Malaysia and Sri Lanka • Some inflationary pressure including logisti
Slide 18: Operating Cash Flow Improved vs FY22 H1
HALF YEAR RESULT S FY23 Operating Cash Flow Improved vs FY22 H1 (49.5) FY23 (2.5) (11.6) (33.0) H1 126.7 (7.8) (18.8) ($m) 74.7 3.5 (11.5) (38.3) (1.6) (4.8) (52.7) EBITDA Working Cap Other Net Receipts Lease Net Capex Net Interest Taxes Op Cash Acquisitions Dividend Buyback FX Net Debt NIBD Mvt Pay
Slide 19: Strong Balance Sheet
HALF YEAR RESULT S FY23 Strong Balance Sheet ($m) DEC-21 JUN-22 DEC-22 COMMENTS Fixed Assets 303.2 299.4 347.1 • Balance sheet remains strong and gearing conservative with Intangibles 1,065.9 1,049.4 1,051.0 Moody’s Baa2 investment grade rating Right of Use Assets 55.1 57.2 50.8 • Balance sheet incl
Slide 20: Conservative & Stable Funding Profile Provides Flexibility
HALF YEAR RESULT S FY23 Conservative & Stable Funding Profile Provides Flexibility COMMENTS ($m) DEC-21 JUN-22 DEC-22 Interest-Bearing Debt1 504.1 426.3 444.3 • Strong liquidity maintained with $597m of cash and undrawn Cash and Short-Term Deposits 2 179.8 203.0 168.3 bank facilities at 31 December
Slide 21: FY23 Outlook
HyFlex: GAMMEX” Alphalec’ mMICR@®FLEX’
Slide 22: FY23 EPS Guidance
HALF YEAR RESULT S FY23 FY23 EPS Guidance OPERATING ENVIRONMENT • Market conditions continue to support Industrial GBU organic constant currency1 growth • Healthcare demand conditions weaker than previously expected ‒ Destocking trends broadened beyond medical to include industrial Exam/SU and Life
Slide 23: Strategic Priorities Unchanged With Progress Evident
HALF YEAR RESULT S FY23 Strategic Priorities Unchanged With Progress Evident 1 2 3 STRATEGIES FOR LONG-TERM FOCUS ON OPERATIONAL FOCUS AREAS FOR FY23 H2 GROWTH AND DIFFERENTIATION EFFECTIVENESS • Capacity expansion plans for • Success in optimising performance of • Continued organic constant differe
Slide 24: Q&A
04 Q&A 24
Slide 25: Appendix
x ” ee ~ GAMMEX’ Alphatec’ mICR@FLEX ». ex:
Slide 26: FX – Revenue & EBIT Impact of FX Movements
HALF YEAR RESULT S FY23 FX – Revenue & EBIT Impact of FX Movements FX IMPACT COMMENT REVENUE EBIT FY23 H1 The strengthening of the USD against the EUR and other key FY23 H1 vs FY22 H11 ($48.0m) ($21.9m) revenue currencies was only partially offset by corresponding weakness in major cost currencies N
Slide 27: Constant Currency
HALF YEAR RESULT S FY23 Constant Currency CONSTANT CURRENCY ORGANIC CONSTANT CURRENCY • The presentation of constant currency information is designed to • Organic constant currency is constant currency information (as facilitate comparability of reported earnings by restating the prior period’s desc
Slide 28: Ansell Fact Sheet
HALF YEAR RESULT S FY23 Ansell Fact Sheet KEY FIGURES • Booked Tax Losses at 31 December 2022: $20.4m (Australia $16.9m) • Unbooked Tax Losses at 31 December 2022: $22.1m (Tax-Effected) (Australia $12.2m) • Unbooked Capital Losses at 31 December 2022: $53.4m • Interest Rate on Borrowings for FY23 H1
Slide 29: Segment History
HALF YEAR RESULT S FY23 Segment History FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 Sales 716.5 668.5 654.8 655.9 715.5 703.7 719.1 790.7 762.5 342.2 358.4 388.1 377.1 368.3 Industrial EBIT 90.5 89.0 82.8 79.8 86.9 98.7 92.4 112.4 107.0 45.2 44.4 57.9 56.3 42
Slide 30: Glossary
HALF YEAR RESULT S FY23 Glossary AUD – Australian Dollar FX – Foreign Exchange MTI – Medical Treatment Injuries CAD – Canadian Dollar GBP – Great British Pound NBR – Nitrile Butadiene Rubber Capex – Capital Expenditure GBU – Global Business Unit NIBD – Net Interest-Bearing Debt CC – Constant Currenc