Ansell Limited · ASX:ANN
Ansell — Investor Presentation (March 2005)
25 slides from Ansell's investor presentation, Mar 9, 2005
Slide 1: Ansell Limited
Ansell Limited Doug Tough – Chief Executive Officer
Slide 2: Agenda
Agenda 1. Background 2. Geographic & Business Portfolio 3. Strategic Focus 4. Results FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Securities Exchange Act of 1934 as amended, and information that is based on management’s beliefs as well a
Slide 3: Background
Background
Slide 4: Who is Ansell?
Who is Ansell? A 100 year old company A world leader in healthcare barrier protection products and services Ansell is an Australian listed Company (ASX: ANN) with ADSs on US (NASDAQ) Market capitalization ~US$1.3 billion Sales of ~US$800 million and over 11,000 employees Statutory HQ in Australia, O
Slide 5: Life... is a risky business
Life... is a risky business… Infections Contamination Viruses & Bacteria Toxins Injuries 4.7m work related injuries & illnesses in USA in 2002. Cost $170b Over 2 million people get infections in US hospitals each year; costing $5b. Only 25% of sexually active people use condoms. Lifetime medical cos
Slide 6: What is the solution?
What is the solution? The first line of defense is protection … A barrier as thin as .03 mm can save your life … This is our business
Slide 7: A Global Leader
A Global Leader Estimated global market size and positions Surgical Gloves Occupational Gloves (Synthetics) Market: ~US$0.6B» Market: ~US$2.1B» 2004 2004 #2 Ansell ~ 23% #1 Ansell ~19% Exam Gloves (Excluding Consumer (Condoms) Occupational) Market: ~US$0.9B» Market: ~US$1.0B» 2003 2003 #3 Ansell ~11
Slide 8: Key Customers
Key Customers Companies: industrial, auto, chemicals, food etc. Hospitals/Medical Centres Retail: food stores, drug stores, convenience stores, mass merchandisers
Slide 9: Sales Analysis
F’05 H1 Sales Analysis Consumer Products (16%) Professional Products (34%) Occupational Products (50%) Surgical Powdered 8% Surgical Synthetic 2% Surg Powder Free 9% Synthetic Exam 4% Powder Free Exam 8 % PWD Exam 2% Diasposal 10% Knitted 6% HyFlex 9% General Purpose -Other 9% Chemical Resistant 7%
Slide 10: Manufacturing
Manufacturing Facilities India & Sri Lanka Standard & Premium Surgical Condoms Powder Free Exam General Purpose Chemical Resistant Critical Environment Americas & UK Chemical Resistant General Purpose Specialty High spec knitted Outsource US$75 M Powdered Exam Vinyl Exam Low Volume Items Employees (
Slide 11: ENCORE ~ S i
ENCORE ~ 9 S i ae BW ieSwvies
Slide 12: Geographic and Business Portfolio
Geographic and Business Portfolio
Slide 13: Ansell Regions – F'04
Ansell Regions – F’04 US$ M Americas Europe Asia Pac Total Sales 387.0 285.2 119.7 791.9 % 49% 36% 15% Segment EBITA 46.1 28.5 29.5 104.1 % 44% 27% 29%
Slide 14: Ansell Businesses – F'04
Ansell Businesses – F’04 US$ M Occupational Professional Consumer Total Sales 387.8 271.6 132.5 791.9 % 49% 34% 17% Segment EBITA 52.8 28.7 22.6 104.1 % 51% 27% 22%
Slide 15: Occupational Business
Occupational Business US$ M F’03 F’04 F’05 H1 H1 Movement Sales 366.5 387.8 198.9 +9% Segment EBITA 36.9 52.8 29.5 +30% EBITA/Sales 10.1% 13.6% 14.8% +240 bp Strategy: Continued concept of hand injury solutions Enhanced “value – added” business model program Continued emphasis on superior products C
Slide 16: Professional Business
Professional Business US$ M F’03 F’04 F’05 H1 H1 Movement Sales 265.5 271.6 134.2 +1% Segment EBITA 31.6 28.7 15.4 +3% EBITA/Sales 11.9% 10.6% 11.5% +20 bp Strategy: Focused product improvements/upgrades US surgical market share recovery – building off 6 GPO contracts Expand Synthetic range (surgica
Slide 17: Consumer Business
Consumer Business US$ M F’03 F’04 F’05 H1 H1 Movement Sales 126.7 132.5 61.9 -7% Segment EBITA 25.1 22.6 10.3 -17% EBITA/Sales 19.8% 17.0% 16.6% - 190 bp Strategy: Grow Branded Retail condom business Expand demand for unique foamlined household gloves –leveraging FHP partner reach Use capacity throu
Slide 18: Strategic Focus
Strategic Focus
Slide 19: Strategic Evolution
Strategic Evolution From meeting multi-year EBITA commitments to advancing Ansell Growth Strategy for F’06 and Beyond Methodology: F’04 Base Organic Growth Geographic Focus Technology Bolt on Acqisitions Strategic Initiatives
Slide 20: Go Forward
Go Forward Continue Track Record of Performance Delivery, Total Shareholder Return Solidify New Senior Team Re Culture/Accountability Expectations Deliver Base Growth – Share/Value Continue Occupational revitalisation Restoration Plan for Professional/Consumer Raise Team to Next Performance Level of
Slide 21: Results
Results
Slide 22: Performance Trends
Performance Trends US$ M F’03 F’04 F’05 H1 H1 Movement Sales 758.7 791.9 395.0 +3% Segment EBITA 93.6 104.1 55.2 +10% Attributable Profits 29.3 50.4 31.7 +35% Free Cash Flow 85.0 90.3 33.1 -15.0 EPS – US$ 15.7¢ 27. 9¢ 18.1¢ +42% • Secure Earnings, Solid Growth
Slide 23: Delivering Total Shareholder Return
Delivering Total Shareholder Return Track record of increasingly higher Profits and strong cash generation Dividends reintroduced for F’03 and steadily increased EPS and ROE more than doubled in last two years F’03 TSR -11% F’04 TSR 34% F’05 H1 TSR 17% 10.5 10 9.5 9 8.5 8 7.5 7 6.5 6 5.5 5 4.5 4 3.5
Slide 24: Meeting Market Commitments
Meeting Market Commitments In 2002, we made a multi year Commitment to grow Segment EBITA 50% from F’01 – F’05: US$ Forecast Actual Growth F’02 >77 85 +10% F’03 >92 94 +11% F’04 >103 104 +11% F’05 115* *Forecast Confirmed, Company on track to achieve US$115M Segment EBITA Evolved to driving growth (
Slide 25: Ansell Limited – 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/ D AVID M. G RAHAM Name: DAVID M. GRAHAM Title: GENERA