Ansell Limited · ASX:ANN
Ansell — Shareholder Meeting (October 2006)
19 slides from Ansell's shareholder meeting presentation, Oct 19, 2006
Slide 1: Ansell Limited Annual General Meeting Fiscal Year 2006 Results
Ansell Limited Annual General Meeting Fiscal Year 2006 Results CEO Address 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 as assumptio
Slide 2: Fiscal Year 2006
Fiscal Year 2006 Unusual year – Record sales levels – Below target EBIT Slightly exceeded EPS guidance range Divested South Pacific Tyres investment Solid trends going into Fiscal Year 2007
Slide 3: Ansell 2006
Ansell 2006 (PA & EPS are pre-SPT) +24 Dividend (¢) -21 Cash Flow ($M) -5 EPS ($M) -10 Profit Attributable ($M) +5 Sales ($M) % Increase
Slide 4: Head Winds and Upsides In F’06
Head Winds and Upsides In F’06 Head Winds: • Sharply higher latex costs (-$14M net EBIT impact) • Exam glove pricing pressure • A stronger USD, which impacted sales and EBIT to a lesser extent • Advertising & promotions competition in U.S. retail condoms • Extra costs related to Surat Thani plant de
Slide 5: Latex costs …. Perspective on cycles
Latex costs …. Perspective on cycles Based on recent (6 – year ) cycles, there was no reason to expect a sharp increase in F’06 Notes: Wet Kg price divided by .6 equals ~ dry kg price. Source: Malaysian Rubber Board Statistics 1.00 2.00 3.00 4.00 5.00 6.00 7.00 '86 '87 '88 '89 '90 '91 '92 '93 '94 '9
Slide 6: Latex
FY 2006 -9 +5 Latex Non Latex Margin ($M) +3 +6 Latex Non Latex Sales ($M) % Change $M
Slide 7: What are We Doing About Latex Increases?
What are We Doing About Latex Increases? During F’06: • Increased selling prices (with modest success) • Exited some GPO contracts (exams) • Productivity improvements at plants, overhead cuts • What we didn’t do, in view of “historic cycles” …. was buy forward For F’07: • Price increases on exam and
Slide 8: Our Products
Our Products
Slide 9: Our Products Cont.
Our Products Cont.
Slide 10: Diversified Key Customers
Diversified Key Customers • Companies: industrial, auto, chemicals, food etc. • Hospitals/Medical Centres; acute and alternate care, first responders etc • Retail: food stores, drug stores, convenience stores, mass merchandisers
Slide 11: Occupational Business
Occupational Business 50% of Revenue – 56% of Profits - Segment EBIT ($M) +4 Sales ($M) % Change HyFlex Growth +17% Guardian ™ Programs New Products/Channels Preferred Distributor Partner
Slide 12: Professional Business
-12 Segment EBIT ($M) +5 Sales ($M) % Change Solid Sales Growth Latex – Pricing Impacted our costs and gross margins New Products including non-Latex Synthetics Implementing Price Increases EMEA resurgence Professional Business 34% of Revenue – 27% of Profits
Slide 13: Consumer Business
-19 Segment EBIT ($M) +8 Sales ($M) % Change Solid European & Tender Business Results Jissbon Acquisition in China USA Competitive Costs Latex Cost Impacts Consumer Business 16% of Revenue – 17% of Profits
Slide 14: Latex Cost Graph …. Updated
• Notes: Wet Kg price divided by .6 equals ~ dry kg price. Source: Malaysian Rubber Board Statistics Latex Prices +7% in F’05 +73% in F’06 Malaysian ‘00 MYR (per wet kg) F’07 start price was MYR 6.81 Price on Oct 16 was MYR 4.66 – down 32% from July 1 price Early latex price decline in F’07 a positi
Slide 15: Strategic Evolution
Strategic Evolution • From meeting multi-year Segment EBIT commitments to advancing Ansell Growth Strategy for F’07 and Beyond Methodology: F’06 Base Synthetic Surg Excite™ AlphaTEC™ Channels China Mexico India Russia Technical Partnerships Other Jissbon
Slide 16: Geographic Expansion
Geographic Expansion • Ansell’s growth in “Emerging” markets Jissbon Acquisition – 10% Share of China Retail Condom market China Occupational – New Ansell trading company initiated Europe Emerging Markets – Strong Consumer & Occupational growth India – Occupational distribution set up Occupational +
Slide 17: Ansell Takeaway
Ansell Takeaway • Solid and steadily growing company: – Organically – Geographically – Acquisitively • Cost components tightly managed • Diverse portfolio of brands, businesses, geographies • Pipeline of Products; initiatives is solid • Strong financial position with investment and share buy-back ca
Slide 18: F’07 Outlook
• Solid Start to year – F’07 has started with good sales growth in all core businesses and regions • Despite this good sales start and lower latex prices (July – early October), we are not revising F’07 EPS guidance at this time from the US46¢ - US50¢ range, due to latex cost volatility F’07 Outlook
Slide 19: Ansell Limited
ANSELL LIMITED