Slide 1: Ansell FY23 Full Year Results
ANSELL FY23 FULL YEAR RESULTS 14 AUGUST 2023 1
Slide 2: Disclaimer and Non-IFRS Measures
FULL YEAR RESULTS FY23 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
01 Business Update Neil Salmon 02 Financial Results Zubair Javeed CONTENTS 03 Strategic Priorities & FY24 Outlook Neil Salmon 04 Q&A 3
Slide 4: Business Update
Ansell HyFlex’ GAMMEx Alphalec” MICR@FLEX’
Slide 5: Our Ansell Protects Mission Starts With The Safety Of Our People
FULL YEAR RESULTS FY23 Our Ansell Protects Mission Starts With The Safety Of Our People Leading Indicators1 Injury Statistics1 Commentary Overall Leading Indicators1 improved 29% MTI reduced 43%, LTI increased 14% • Net reduction in injury rates, driven by our approach to embedding safety accountabi
Slide 6: FY23 Sustainability Highlights
FULL YEAR RESULTS FY23 FY23 Sustainability Highlights People: Significant Progress Made Planet: On Track Against All Targets Our Operations Net Zero Roadmap • Completed recruitment fee remediation program for workers who Reduce Scope 1 and 2 29% of electricity now sourced from no longer work at An
Slide 7: FY23 Performance Overview
FULL YEAR RESULTS FY23 FY23 Performance Overview Performance Highlights Summary Financials External Environment Business Performance Organic ($m)1 FY23 CC % ∆2 • Strength in key Industrial verticals and • Delivered Adjusted EPS4 of 115.3¢ excluding emerging markets, some slowing in H2 significant it
Slide 8: Healthcare GBU – Sales Highlights
FULL YEAR RESULTS FY23 Healthcare GBU – Sales Highlights Healthcare GBU Exam/SU Surgical Life Sciences 7.9% 6.2% 1.8% (1.8%) (29.2%) FY23 vs FY22 Organic CC1 Sales Growth (25.5%) FY23 vs FY19 Organic CC2 Sales CAGR • Sales below FY22 as COVID-related pricing • Back-order clearance and customer inven
Slide 9: Industrial GBU – Sales Highlights
FULL YEAR RESULTS FY23 Industrial GBU – Sales Highlights Industrial GBU Mechanical Chemical 5.1% 2.7% 2.4% 2.6% FY23 vs FY22 Organic CC1 Sales Growth FY23 vs FY19 Organic CC2 Sales CAGR • Growth in all regions, double-digit expansion in emerging markets • Double-digit growth in North America FY23 vs
Slide 10: Financial Results
02 Financial Results 10
Slide 11: Profit & Loss Summary
FULL YEAR RESULTS FY23 Profit & Loss Summary ($m) FY22 FY23 ∆% Org CC1 % ∆ Comments • Sales declined 11.0% on an organic constant currency-basis . Growth Brands Continue Strong(11.0%) Performance +9% YoY 1 Sales 1,952.1 1,655.1 (15.2%) Cost of Goods Sold (1,286.3) (1,038.4) 4.3% growth in Industrial
Slide 12: Healthcare GBU
FULL YEAR RESULTS FY23 Healthcare GBU Comments ($m) FY22 FY23 ∆% Org CC1 % ∆ Growth Brands Continue Strong Sales Sales Performance Performance +9% YoY 1,189.6 904.2 (24.0%) (20.7%) • Sales declined 20.7% on an organic constant currency-basis1, EBIT2 150.7 113.4 (24.8%) (18.3%) decline attributable t
Slide 13: Industrial GBU
FULL YEAR RESULTS FY23 Industrial GBU Comments ($m) FY22 FY23 ∆% Org CC1 % ∆ Growth Brands Continue Strong Sales Sales Performance Performance 762.5+9% YoY 750.9 (1.5%) 4.3% • Sales increased 4.3% on an organic constant currency-basis1 with EBIT 107.0 103.9 (2.9%) 10.1% growth in both Mechanical and
Slide 14: Input Costs
FULL YEAR RESULTS FY23 Input Costs FY23 Input Cost Trends • Falling raw material costs in FY23 offset by higher conversion costs – Lower NBR and NRL costs vs FY22 – Higher manufacturing employee costs, mostly in Malaysia and Thailand – Energy costs increased vs FY22 with largest impacts in Malaysia
Slide 15: Capex Spend
FULL YEAR RESULTS FY23 Capex Spend Capex Commentary • Total FY23 capex of $67m, including $18m for the greenfield India Surgical site • Other spend included capacity expansion in Malaysia and Thailand for insourcing and long-term growth, and investments in renewable energy • FY24 capex expected in t
Slide 16: Improved H2 Cash Conversion
FULL YEAR RESULTS FY23 Improved H2 Cash Conversion (35.8) (19.7) (22.3) (67.2) (16.7) (39.8) 275.8 FY23 220.3 (8.2) (62.9) ($m) 74.3 (8.0) (22.4) (27.2) EBITDA Working Other Net Receipts Lease Net Capex Net Interest Taxes Operating Acquisitions / Dividend Buyback FX Net Debt NIBD Capital Payments Co
Slide 17: Strong Balance Sheet
FULL YEAR RESULTS FY23 Strong Balance Sheet ($m) Jun-22 Jun-23 Comments Fixed Assets 299.4 351.7 • Balance sheet remains strong and gearing conservative with Intangibles 1,049.4 1,059.7 Moody’s Baa2 investment grade rating. Increase in Net Right of Use Assets 57.2 85.1 Debt/EBITDA primarily due to F
Slide 18: Conservative & Stable Funding Profile Provides Flexibility
FULL YEAR RESULTS FY23 Conservative & Stable Funding Profile Provides Flexibility ($m) Jun-22 Jun-23 Comments Interest-Bearing Debt 426.3 407.0 • Increase in Net Debt versus FY22 primarily from FX changes and Cash and Short-Term Deposits1 203.0 156.5 recognition of liability for new warehouse lease
Slide 19: Strategic Priorities & FY24 Outlook
03 Strategic Priorities & FY24 Outlook 19
Slide 20: Recapping Market Conditions Post FY19
FULL YEAR RESULTS FY23 Recapping Market Conditions Post FY19 Since the onset of the pandemic, we have traded through a period of significant volatility. 2020 – 2021 2022 – 2023 • Acute demand for infection control products, large price • Destocking in Healthcare – different timing and duration incre
Slide 21: Our Recent Journey
FULL YEAR RESULTS FY23 Our Recent Journey As we emerge from a lengthy post-COVID period of adjustment in our end markets, the progress Ansell has made is obscured by destocking effects and external headwinds. Organic Growth Strategic Investments • Our five SBUs have all achieved • We have executed w
Slide 22: Outperformance in Emerging Markets
FULL YEAR RESULTS FY23 Outperformance in Emerging Markets Multi-Year Emerging Markets Investment Strategy Driving Growth and Diversifying Geographic Presence ($m) FY22 FY23 Organic CC1 % ∆ Organic CC2 % ∆ vs FY19 Emerging Markets 422.9 412.3 0.6% 10.3% % Ansell Sales 21.7% 24.9% • Sales in Emerging
Slide 23: Innovation in Differentiated Safety Solutions
FULL YEAR RESULTS FY23 Innovation in Differentiated Safety Solutions Maintaining Competitive Advantage Through Continued Innovation In Protection, Performance, Comfort & Sustainability • Overall R&D spend CAGR +10% vs FY19 • New products brought to market in differentiated Exam/SU segments in FY23 f
Slide 24: Investments in Manufacturing and Key Processes
FULL YEAR RESULTS FY23 Investments in Manufacturing and Key Processes Manufacturing Systems & Processes India Greenfield Surgical Integrated Business Planning • Facility will deliver capacity • New leadership, integrated business processes and systems needed to meet long-term • Improved supply chain
Slide 25: Restating FY19 For External & Financing Changes
FULL YEAR RESULTS FY23 Restating FY19 For External & Financing Changes US Cents 3.9 cents normalises interest 112 income which was $8m in FY19 on cash proceeds from Sexual 12.4 Wellness divestment 1-5% 4.2 cents represents change in CAGR 2.9 3.9 interest rates on gross debt 111.5 4.2 92 4.3 3.3 87.1
Slide 26: Accelerated Productivity Investment Program To Drive Growth & Returns
FULL YEAR RESULTS FY23 Accelerated Productivity Investment Program To Drive Growth & Returns Adjusting the organisational structure, improving manufacturing productivity and accelerating IT investments to drive EPS growth and improve ROCE. Objective Description Benefits Organisation & Simplify & Ach
Slide 27: Accelerated Productivity Investment Program Financials
FULL YEAR RESULTS FY23 Accelerated Productivity Investment Program Financials Investments expected to deliver annualised pre-tax cost savings of $45m by FY26. Initial benefits in FY24 to be offset by the temporary unfavourable impact to COGS as we reduce inventory. Program Cost & Benefits FY24 Impac
Slide 28: FY24 Guidance
FULL YEAR RESULTS FY23 FY24 Guidance FY24 EPS Guidance & Key Assumptions FY24 Adjusted EPS expected to be in the range of US92¢ to US112¢ FY24 Statutory EPS including investment program costs to be in the range of US57¢ to US77¢ • Sales trends as guided in the July trading update. Note carry forward
Slide 29: Ansell is Well Positioned for Future Growth
FULL YEAR RESULTS FY23 Ansell is Well Positioned for Future Growth Long Term Investments Augmented By Accelerated Favourable End User Demand Global Leadership Positions Productivity Investment Despite Healthcare GBU in Growing, Differentiated Program Building Platform Destocking Market Segments For
Slide 30: Q&A
04 Q&A 30
Slide 31: Appendix
05 Appendix 31
Slide 32: Revenue & EBIT Impact of FX Movements
FULL YEAR RESULTS FY23 Revenue & EBIT Impact of FX Movements ($m) FX Impact Comment Revenue EBIT FY23 The strengthening of the USD against the EUR and other key FY23 vs FY221 (63.2) (35.2) revenue currencies was only partially offset by corresponding weakness in major cost currencies Net foreign exc
Slide 33: Constant Currency
FULL YEAR RESULTS FY23 Constant Currency Constant Currency Restated Prior Period ($m) • The presentation of constant currency information is designed to facilitate comparability of reported earnings by restating the prior period’s results at the Prior Period Sales Total exchange rates applied in det
Slide 34: Incentives
FULL YEAR RESULTS FY23 Incentives Description of Incentive Plans FY23 Outcomes • Ansell incentivises management with performance-based long and • Total incentive expense in FY23, assuming “at target” achievement short term incentives. Eligible sales employees also participate in a of short and long
Slide 35: Ansell Fact Sheet
FULL YEAR RESULTS FY23 Ansell Fact Sheet Key Figures • Booked Tax Losses at 30 June 2023: $20.0m (Australia $16.5m) • Unbooked Tax Losses at 30 June 2023: $24.8m (Tax-Effected) (Australia $8.7m) • Unbooked Capital Losses at 30 June 2023: $80.2m • Interest Rate on Borrowings at 30 June 2023: 4.16% p.
Slide 36: Segment History
FULL YEAR RESULTS FY23 Segment History ($m) FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Sales 716.5 668.5 654.8 655.9 715.5 703.7 719.1 790.7 762.5 750.9 Industrial EBIT 90.5 89.0 82.8 79.8 86.9 98.7 92.4 112.4 107.0 103.9 % Margin 12.6% 13.3% 12.6% 12.2% 12.1% 14.0% 12.8% 14.2% 14.0% 13.8% Sa
Slide 37: Glossary
FULL YEAR RESULTS FY23 Glossary AUD – Australian Dollar FY19 – Financial Year 2019 LTM – Last 12 months CAD – Canadian Dollar FY22 – Financial Year 2022 MTI – Medical Treatment Injuries CAGR – Compound Annual Growth Rate FY23 – Financial Year 2023 MYR – Malaysian Ringgit Capex – Capital Expenditure