UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of September 2006 (September 20, 2006)
Commission File Number: 0-15850
ANSELL LIMITED
(Translation of registrants name into English)
Level 3, 678 Victoria Street, Richmond, Victoria 3121, Australia
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulations S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
This Form 6-K contains forward-looking statements within the meaning of the Securities Exchange Act of 1934 as amended, and information that is based on managements beliefs as well as assumptions made by and information currently available to management. When used in this Form 6-K, the words anticipate, approach, begin, believe, continue, expect, forecast, going forward, improved, likely, look forward, opportunity, outlook, plans, potential, proposal, should and would and similar expressions are intended to identify forward-looking statements. These forward-looking statements necessarily make assumptions, some of which are inherently subject to uncertainties and contingencies that are beyond the Companys control. Should one or more of these uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, expected, estimated or projected. Specifically, the ability of the Company to realize its ongoing commitment to increasing shareholder value through its ongoing restructuring, asset dispositions, strategic review and implementation, and cost cutting initiatives, may be affected by many factors including: uncertainties and contingencies such as economic conditions both in the world and in those areas where the Company has or will have substantial operations; foreign currency exchange rates; pricing pressures on products produced by its subsidiaries; growth prospects; positioning of its business segments; future productions output capacity; and the success of the Companys business strategies, including further structural and operational changes, business dispositions, internal reorganizations, cost cutting, and consolidations.
1 Ansell Limited Ansell Limited Business Overview - Business Overview - September 2006 September 2006 Doug Tough Doug Tough Chief Executive Officer Chief Executive Officer Rustom Jilla Rustom Jilla Chief Financial Officer Chief Financial Officer |
2 Agenda Agenda 1. 1. Overview Overview - - Doug Tough Doug Tough 2. 2. Results Results - - Rustom Jilla Rustom Jilla 3. 3. Strategic Focus Strategic Focus - - Doug Tough Doug Tough 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
managements beliefs as well as assumptions made by and information currently available to management. When used in this presentation, the words anticipate, approach, begin, believe, continue, expect, forecast, going forward, improved, likely, look forward, opportunity, outlook, plans, potential, proposal, should and would and similar expressions are intended to identify forward-looking statements. These forward-looking statements necessarily make assumptions, some of which
are inherently subject to uncertainties and contingencies that are
beyond the Companys control. Should one or more of these
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those anticipated, expected, estimated or projected. |
3 Overview Overview Doug Tough Doug Tough 3 |
4 Who is Ansell? Who is Ansell? A 101+ year old company A world leader in healthcare barrier protection products and services An Australian (ASX) listed Company (ANN), with market capitalization ~US$1.1 billion
(~GBP590 million) Sales of ~US$850 million (~GBP450 million) and over 11,000 employees in 26
countries Statutory HQ in Australia, Operating HQ in the US, European Regional
HQ in Brussels 85% of sales in Europe and N. America and most plants in Asia
& Mexico. UK operations at Redditch, Tamworth and Solihull Operating currency is the USD (which is used in this presentation unless otherwise
noted) Filings - Australian Statutory Report and US SEC 20F Corporate website www.ansell.com Ratings Long Term Short Term Outlook Standard & Poors BB+ B Stable Moodys Baa3 P3 Stable |
5 A Global Leader A Global Leader Occupational Gloves (Synthetics) Occupational Gloves (Synthetics) Market: ~US$2.1B Market: ~US$2.1B 2006 2006 #1 Ansell #1 Ansell ~20% ~20% Consumer (Condoms) Consumer (Condoms) Market: ~US$0.9B Market: ~US$0.9B 2006 2006 #3 Ansell #3 Ansell ~11% ~11% Estimated global market size and positions Estimated global market size and positions Surgical Gloves Market: ~US$0.6B 2006 #2 Ansell ~ 24% Exam Gloves (Excluding Exam Gloves (Excluding Occupational) Occupational) Market: ~US$1.0B Market: ~US$1.0B 2006 2006 #2 Ansell #2 Ansell ~ 8% ~ 8% Source: Nielsen, IMS, and internal estimates ~ ~ ~ ~ ~ ~ ~ ~ |
6 Our Products Our Products |
7 Diversified Key Customers Diversified Key Customers Companies: industrial, auto, Companies: industrial, auto, chemicals, food etc. chemicals, food etc. Hospitals/Medical Centres; Hospitals/Medical Centres; acute and alternate care, first acute and alternate care, first responders etc responders etc Retail: food stores, drug Retail: food stores, drug stores, convenience stores, stores, convenience stores, mass merchandisers mass merchandisers |
8 Ansell Regions Ansell Regions F06 F06 SEGMENT EBIT ($M) = 107.6 SEGMENT EBIT ($M) = 107.6 SALES ($M) = 849.1 SALES ($M) = 849.1 16% 16% 37% 37% 47% 47% 43% 43% 25% 25% 32% 32% Asia Pacific 133.2 Europe 313.7 Americas 402.2 Asia Pacific 27.3 Americas 46.4 Europe 33.9 |
9 Manufacturing Facilities Manufacturing Facilities 84% in Asia 84% in Asia 12% in Mexico 12% in Mexico 3% in North America 3% in North America 1% in Europe 1% in Europe Employees (11,000 approx.) Americas & UK Americas & UK Chemical Resistant Chemical Resistant General Purpose General Purpose Specialty Specialty High spec knitted High spec knitted Outsource ~US$150 M Outsource ~US$150 M Exam gloves Exam gloves Occupational gloves Occupational gloves Malaysia Malaysia Premium Surgical Premium Surgical Powder Free Exam Powder Free Exam Powdered Exam Powdered Exam Household gloves Household gloves Primary R&D facility near KL Primary R&D facility near KL Thailand Thailand Condoms Condoms Powder Free Exam Powder Free Exam Household gloves Household gloves Synthetic Exam Synthetic Exam India & Sri Lanka India & Sri Lanka Standard & Premium Surgical Standard & Premium Surgical Condoms Condoms Powder Free Exam Powder Free Exam General Purpose General Purpose Chemical Resistant Chemical Resistant Critical Environment Critical Environment |
10 Results Results Rustom Jilla Rustom Jilla |
11 AUD +64% USD AUD $10.04 $7.65 USD +80% ASX200 +67% 30 June 05 30 June 04 31 Dec 04 F04 TSR 34% F05 TSR 32% 1 July 03 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12 31 Dec 03 ASX 200 Total Shareholder Return Total Shareholder Return $7.74 $5.90 $3.99 $5.35 3,039 3,533 31 Dec 05 4,278 Dividends
A13¢ A17¢ A21¢ Total Shareholder Return (TSR) = Share Price appreciation plus dividends Share Price 13 Sept 06 30 June 06 F06 TSR -1% $9.67 $7.18 5,074 |
12 Key Financial Metrics Key Financial Metrics EPS - US$ ROE % ROA (HC only)% Gearing % EBIT % Gross Margin % Free Cash Flow Profit Attributable $M Sales $M F05 was 41.1 ¢ pre AIFRS 57 ¢ 60 ¢ 18.2 18.7 18.0 23.2 After SPT sale, buybacks, dividends 10.8 19.1 12.1 13.5 Latex, sales mix 37.4 40.1 Average WC days from 85 to 80 76.7 94.5 DTA 90.8 101.0 +4.6% despite USD headwinds 849.1 812.1 F06 F05 The impact of write-downs (-$60.9M in F05, -$4.1M in F06) in the
since divested South Pacific Tyres investment are excluded from the metrics above Taxes were reduced by $16.2M and $7.5M in F05 and F06 due to Deferred Tax
Adjustments. Excluding SPT and DTA, PA went from $84.8M to $83.3M in F06
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13 Latex Cost Graph
Latex Cost Graph
Updated Updated 1.00 2.00 3.00 4.00 5.00 6.00 7.00 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 Latex Prices +7% in F05 +73% in F06 Malaysian 00 MYR (per wet kg) F07 start price was MYR 6.81 Price on Sept 12 was MYR 3.85 down 57% from July 1 price Seasonal supply driven price decline in early F07 playing out as expected Plus/minus .5 off a F07 full year average cost of ~ 5.5 MYR/wet kg would,
assuming no other changes, have an EPS impact of ~US2¢ Notes: Wet Kg price divided by .6 equals ~ dry kg price. Source: Malaysian Rubber
Board Statistics Source: Malaysian Rubber Board Statistics
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14 Occupational Business Occupational Business 50% of Revenue and 56% of Segment EBIT 50% of Revenue and 56% of Segment EBIT 208.9 208.9 205.8 205.8 All Other All Other 14.3% 14.3% 14.9% 14.9% EBIT/Sales EBIT/Sales Margin Erosion / Mix Margin Erosion / Mix 60.7 60.7 61.0 61.0 Segment EBIT Segment EBIT +3.6% +3.6% 424.6 424.6 409.8 409.8 Sales Sales 81.9 81.9 81.3 81.3 Disposables Disposables VOL -9%, ASP +9% VOL -9%, ASP +9% 46.8 46.8 47.5 47.5 Knitted Knitted VOL +17% VOL +17% 87.0 87.0 75.2 75.2 HyFlex® HyFlex® F06 F06 F05 F05 $M $M Natural Latex 13% Synthetic 87% Strategy: Continued concept of hand injury solutions - Guardian SM Continued emphasis on lower cost plants and outsourcing New products - expanding ergonomic technology advantage New channels and markets |
15 Professional Business Professional Business 34% of Revenue and 27% of Segment EBIT 34% of Revenue and 27% of Segment EBIT VOL +25%, ASP lower due to mix VOL +25%, ASP lower due to mix 36.8 36.8 30.8 30.8 Synthetic Synthetic VOL +10% (EMEA up), ASP flat VOL +10% (EMEA up), ASP flat 13.5 13.5 12.3 12.3 Powdered Powdered VOL +19%, ASP -6% VOL +19%, ASP -6% 77.2 77.2 68.7 68.7 Exam: PF Exam: PF 9.3 9.3 10.8 10.8 Other Other 10.0% 10.0% 11.8% 11.8% EBIT/Sales EBIT/Sales Latex costs / Exam Mix Latex costs / Exam Mix 29.0 29.0 32.7 32.7 Segment EBIT Segment EBIT +4.6% +4.6% 289.0 289.0 276.3 276.3 Sales Sales Strong volume growth; all regions Strong volume growth; all regions 16.2 16.2 4.1 4.1 14.7 14.7 3.6 3.6 Synthetic Synthetic Other Other EMEA up, AM and AP down EMEA up, AM and AP down 60.2 60.2 65.3 65.3 Powdered Powdered EMEA and AP growth EMEA and AP growth 71.7 71.7 70.1 70.1 Surgeons: Branded PF Surgeons: Branded PF F06 F06 F05 F05 $M $M Strategy: Pricing to recover latex cost increases New products to upgrade range (including synthetics) US surgical market share recovery Outsourcing commodity products instead of investment in new capacity Synthetic 21% Natural Latex 79% |
16 Consumer Business Consumer Business 16% of Revenue and 17% of Segment EBIT 16% of Revenue and 17% of Segment EBIT 13.2% 17.4% EBIT/Sales US Retail Market Promotions 17.9 22.0 Segment EBIT +7.5% 135.5 126.0 Sales 4Play & Supplements 12.9 9.8 Other 19.0 19.2 HHG Tenders up, AM Public Sector Down 31.5 26.7 Bid / Public Jissbon $3.1M, EU +8%, AM -14% 72.1 70.3 Condoms: Branded Retail F06 F05 $M Strategy: Recover USA Retail condoms New products, new packaging, brand & line extensions Use capacity through public sector and OEM supply Expand geographic footprint and leverage global strength Synthetic 10% Natural Latex 90% |
17 Ansells Financial Overview Ansells Financial Overview Ansell had mixed results in F06 after several strong years, but continues
to have solid fundamentals: Operationally: Sales growth was the highest in 8 years while EBIT was pulled down by latex Margins of Non-latex products, which account for 52% of sales, remained strong The Balance Sheet is healthy with low gearing and high interest coverage Free Cash Flow generation capability remains good EPS commitments were met, albeit with tax reduction benefits Structurally: The balanced capital management strategy continued to be executed. Surplus cash
was distributed via higher dividends ($22.5M) and another share buy-back
($76.1M) A total of $307.8 M has now been distributed to our owners between F04 F06 (80% via share buybacks) Ansell also made its first acquisition in 6 years spending $18.5M for 75% of Jissbon
SPT, the last of the non-healthcare legacy businesses, was sold and $92M
received |
18 Strategic Focus Strategic Focus Doug Tough Doug Tough |
19 Strategic Evolution Strategic Evolution From meeting multi-year Segment EBIT commitments to advancing From meeting multi-year Segment EBIT commitments to advancing Ansell Growth Strategy for F07 and Beyond Ansell Growth Strategy for F07 and Beyond Methodology: Methodology: F06 Base Synthetic Surg Excite AlphaTEC Channels China Mexico India Russia Technical Partnerships Other Jissbon |
20 Geographic Expansion Geographic Expansion Ansells growth in Emerging Ansells growth in Emerging markets 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 +50% Occupational +50% Professional +37% Professional +37% Consumer +10% Consumer +10% Consumer +66% Consumer +66% Occupational +80% Occupational +80% Occupational +29% Occupational +29% Professional +60% Professional +60% China Russia & CIS Central & Eastern Europe Latin America South Africa Occupational +70% Occupational +70% Consumer +15% Consumer +15% |
21 Ansell Takeaway Ansell Takeaway Solid and steadily growing company: Solid and steadily growing company: - - Organically Organically - - Geographically Geographically - - Acquisitively Acquisitively Cost components tightly managed Cost components tightly managed Diverse portfolio of brands, businesses, geographies Diverse portfolio of brands, businesses, geographies Strong financial position with investment and share buy- Strong financial position with investment and share buy- back capability back capability |
22 ANSELL LIMITED 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/ DAVID M. GRAHAM | |
Name: | DAVID M. GRAHAM | |
Title: | GENERAL MANAGER FINANCE & TREASURY |
Date: September 20, 2006