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Introduction:
Ansell designs, develops and manufactures a wide range of hand and arm
protection solutions, clothing and condoms. Ansell is a global leader in protection
solutions. Industrial workers, healthcare professionals and patients, and consumers
around the world invariably associate Ansell with premium quality, optimal protection
and superior comfort. Ansell's vision is to create a world where people and products
enjoy optimal protection against the risks to which they are exposed. People, be it at
work or during their leisure time, require the right protection solution for the right
application
After all, what better guarantee is there for increased safety, security and
productivity than through adequate protection? During the manufacturing process,
products need to be handled guaranteeing their optimal protection, so they meet or
exceed the quality requirements described in manufacturing processes.To complete
the vision , we have to approach on three major things:
Technological leadership
Ongoing dialogue
Strong global presence
Areas of expertise around which Ansell is organized are four Global Business Units.
Each GBU serves unique and different markets, but what connects all four is: the focss
on protection, comfort and quality, combined with a never-ending quest for
innovation.

Mission Statement:
Our commitment for protection
Vision of Ansell:
Ansell has been expanding and strengthening its position since its foundation, over
100 years ago, of
become a global player in the four main business segments where protection is
provided:
Industrial Solutions: Ansells Industrial Global Business Unit manufactures,
markets high-performance, multi-use protection solutions specific for hand, foot,
and body protection has been wide-range of Industrial applications. Ansell
protects workers and products around the world in almost every industry
including Automotive, Chemical, Metal Fabrication, Machinery & Equipment,
Food, Services and Agriculture, Construction, Mining, Do-it-Yourself,
Janitorial/Sanitation, Military, First Responders, and Household Goods.

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Medical Solutions: Ansells Medical Global Business Unit offers a unique


combination of perioperative safety products to protect patients and healthcare
professionals alike. Our innovative range of medical gloves and healthcare
safety devices are designed to prevent allergic reactions, staff injuries in clinical
settings, and medical errors.
Single Use Solutions: Ansells Single Use Global Business Unit manufactures and
markets single-use hand protection solutions for applications in a similarly widerange of industries, with a particular focus on Life Sciences and Automotive
Aftermarket.
Sexual Wellness Solutions: Ansells Sexual Wellness Global Business Unit group
manufactures and markets 18 global, regional, and local brands of condoms and
personal products. The division also takes part in the social health market,
supplying major government and social organizations.

Code of conduct :
The wellbeing of the Ansell employees is vital to growing its business for the
benefit of customers, shareholders and the wider community. The company is
committed to provide a healthy, safe and engaging work environment. Ansell strives
to maintain a health and safety management system conforming to government
standards and industry best practices - integrated with the profitable operation of the
company.
The company's employment policies commit to:
Promoting a safe working environment with healthly and safety management in
all its businesses.
Creating an equal opportunity and committed to developing a diverse
workforce.
Promoting an environment where everyone get encourage to raise their full
potential through learning and development opportunities.

Organizational Chart:

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Chairman

Managing
Director

Marketing
and Sales
Department

Financial
Department

Cheif
Executive
Officer

Human
Resource
Managemen
t

Facility
Manangeme
nt

Strategic Marketing (SMART) Objectives:


Ansell accomplished significant strategic transformation in F14 through
acquisition, restructuring, and delivery against a broad range of initiatives which will
create long term benefit for shareholders. They have enhanced industry leading
positions, with exciting step change innovation in the works for F15 and will build
their position as a clear innovation leader in health and safety protection solutions.

Monitoring 4Ps marketing mix:


Product: New product sales evolution generally follows an expected pattern varying
on degrees of innovation and target market dynamics and a solid pipeline will
continue to support growth.
Price: Organic growth +$19m or 5%, $250m Surgical segment increased 5% on
strong synthetic performance in mature markets as well as, NRL growth in emerging
markets BSSI products complement Ansells focus on differentiated healthcare
applications including a strong dental market share and leading EMS & non-acute
healthcare positions. Organic growth in exam grade products 3% driven by
differentiated synthetic offerings. Healthcare Safety Solutions growth improved on
success with Sandel OR turnover kits, a focus on core. US Sandel, surgical
protection business and selective global expansion.
Promotion: Dividend increased by 6% in F14. 22 consecutive dividend increases over
last 10 years, continued dividend growth anticipated. Priority for capital allocation

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remains to support growth strategy. Share repurchase will be considered if future


growth opportunities do not meet strategic and value criteria.
Place: Completed transformative BSSI & Midas Acquisitions. Divested Household
Gloves business, announced intention to exit Military. Current focus remains on
integration, however will continue to evaluate opportunities meeting strategic and
value criteria. Also, new Global Portfolio expected to make Ansell more balanced &
less exposed to economic cycles while leveraging BSSI scale.

Analysing the strategic marketing objectives:


Inventory reductions occurred primarily in North America leveraging enhanced
Oracle capability
Focus on credit collections yielded positive results in reducing debtors in EMEA
and NA
Creditors improved in part due to lower inventory
Excludes FX impact of $6.2m
ERP: SAP successfully launched in industrial & Single Use EMEA.
Acquisitions: Include investment in new Midas capacity expansion.
Growth/expansion: Investments have focused on adding new dipping lines, knitting
machines, R&D technologies/pilot lines and platforms.
Profit Improvements: Focus on reducing energy/utilities costs, providing for
automation, increased throughputs and realising value from acquisitions- all driving
higher GPADE.
Maintenance: Investment increased in line with growth.

SWOT analysis and PEST analysis:


SWOT analysis:

Strength: Ansell is the leading multinational company with more than 11000
employees and millions of consumers. Beside this it specializes in four main
categories such as Medical solutions, industrial solutions speciality markets and
sexual wellness.
Weakness: Ansell as a multinational company from China, is experiencing huge
problem with diplomatic relation with other countries. The marketing strategies of the
company are outdated and bear a lack of expertise.
Opportunities: Ansell has a big chance of being a world leader in latex
manufactures. The huge manpower is actually an opportunity to success.
Threats: Ansell has risked its international market due to the products variety as all
products need different pricing and marketing strategies and hence cant be passed
through same margin for the possible costing that will incur.

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PEST analysis:

Political: Ansell is a frequently rewarded multinational business that has expanded


over 50 countries across the globe. Hence it will have an easy political negotiation
with the countries it is trying to expand.
China too has welcomed Ansell for open trade opportunity.
Economical: As China is experiencing high economic growth, Ansell therefore can
easily penetrate in the Chinese markets. Also the other aspects of economic analysis
such as GDP, average income etc. are quiet investable.
Socio-cultural: The social norms and values of China are pretty capitalistic and
hence a new international business like Ansell should take some minor precautions
while starting the new business.
Technological: China is growing as the highest economy of the world and therefore is
welcoming all international trades and businesses. Hence Ansell is also taking the
opportunity, where ever possible. It has got the international market standards for all
its products and equipment.
International trade policies and agreements:
Ansell maintains very effective international trade policies while establishing its
position in a new market. Particularly in China, Ansell Asia Pacific is benefiting itself
via the diplomatic trade relation of both countries, Australia and China. China has
agreed to allow all genuine tradesman-ship with Australia and Asia Pacific region. The
import duties are average and dont include much non-tariff barriers. But still,
international marketing always includes some risk factors which in this case are as
follows:
Competitions: Ansell will have big competition in Chinese market as China is
allowing all
international businesses.
Politics: China has very complex and strict government which might favour its
national business and might set high standards for international businesses.
HRM: Human resourcing is also a risk for international business in China as the
majority population doesnt speak language other than Chinese and also the labour
cost in China is above than average which might risk the business.

Cost-benefit analysis:
Extending the business foreign markets involves various studies and researches and
among them one very important analysis is analysis of the total costs and benefits in
the process.
Cost-benefit Analysis report for the financial year 2013/2014
Note 2014 US$m
2013
US$m
Revenue
Sales revenue
1590.2
1372.8
Expenses
Cost of goods sold including restricting and asset impairments
4(b)
(946.7)
(793.5)
Distribution
(74.9)
(61.9)
Selling general and administration including restructuring and asset impairments
4(b)
(485.1)
(346.9)
Total expenses excluding financing goods
(1506.7)
(1202.3)

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Net financing costs
(10.2)
Profit before income tax
Income tax expense
Profit for the period
Profit for the period is attributable to
Ansell limited shareholders
139.2
Non-controlling interests
Profit for the period
Earnings per share is based on profit attributable to Ansell Limited shareholders
cents 2013 US cents
Basic Earnings per share
106.5
Diluted Earnings per share
106.1

4(a)
6

(18.2)

(20.9)
44.4

(16.5)
143.3
41.8
2.6

44.4

4.1
143.3
2014 US

29

283

29

291

SMART objectives
Ansell accomplished significant strategic transformation in F14 through acquisition,
restructuring, and delivery against a broad range of initiatives which will create long
term benefit for shareholders. They have enhanced industry leading positions, with
exciting step change innovation in the works for F15 and will build their position as a
clear innovation leader in health and safety protection solutions.

Analysing the strategic marketing objectives:


Inventory reductions occurred primarily in North America leveraging enhanced
Oracle capability
Focus on credit collections yielded positive results in reducing debtors in EMEA
and NA
Creditors improved in part due to lower inventory
Excludes FX impact of $6.2m
ERP: SAP successfully launched in industrial & Single Use EMEA
Acquisitions: Include investment in new Midas capacity expansion
Growth/expansion: Investments have focused on adding new dipping lines, knitting
machines, R&D technologies/pilot lines and platforms
Profit Improvements: Focus on reducing energy/utilities costs, providing for
automation, increased throughputs and realising value from acquisitions- all driving
higher GPADE
Maintenance: Investment increased in line with growth

15 april 2015 - Melbourne, Australia Ansell Limited (ASX: ANN), a global leader in protection solutions,
Today announces half-year results for the six month period ending 31 December 2014.

Risk factors and their managements:

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The global economy remains mixed. We currently see improving conditions in the
US, offset by weaker demand in Europe and Brazil, economic turmoil in Russia and
uncertainty in the Middle East and Africa. These uneven conditions are expected to
continue in the second half of F15.
Organic growth momentum continues despite the more difficult conditions while
the FX exposures of the group are being managed with hedging aimed to
significantly offset FX headwinds to US$ based results in F15.
F15 EPS guidance is maintained at US118 to US126 (up 7%-15%) with full year
DTA/NOTI in the range of US2.5 to US3.5 compared to US5 in F14.
Ansell continues to expect F15 EBIT percentage growth against underlying F14
EBIT to be in the high 20s based on organic growth and the successful integration
of recent acquisitions.
Sexual Wellness GBU 13% of revenue and 10% of Segment EBIT
After a weak F14, the business has stabilised with sales up 0.7% and EBIT up 5.0% on
improving margins. Constant currency organic revenue growth was 2%. SKYN
continues to grow and results are starting to improve in the parts of the business that
underperformed in F14. A new President of the GBU commenced in November and
the outlook remains positive for this business going forward.
Acquisitions & Divestments
During the first half of F15 we completed the acquisition of Hands International a
privately owned Sri Lankan company. The acquisition enables Ansell to integrate
backwards and largely take in-house the Companys knitting operations for Industrial
multi-use gloves. This capability is particularly important as we strengthen our in
house yarn wrapping and other capabilities. Ansell disposed of its holding in Lakeland
Industries during the half for $10m with the resulting pre-tax $7.1m gain over the
original purchase price recorded in equity rather than the P&L.
As part of the restructuring announcement released on 30 June 2014 Ansell
announced it was looking to exit its military glove business. Ansell has now entered
into an agreement to sell Hawkeye, its military glove business, which will be finalized
in the coming months.
Cash Flow and Financing
Ansell continues to generate strong cash flow with the half producing a 45% increase
in free cash flow to $67m based on strong EBIT growth. Capex, working capital and
interest were higher but partially offset by lower tax. The balance sheet remains
strong and the company has excellent liquidity levels. Net Debt: Last twelve months
EBITDA continues to improve at 1.44x.The F14 financings have resulted in an average
go forward interest cost of 3.42% and EBITDA: Net Interest cover stands at 12.5 times.
Dividend
An interim dividend of US20 (US17 in F14) per share unfranked has been declared,
representing an increase of 17.6% over the prior period. For shareholders receiving
their dividends in A$ this represents an A$ dividend increase of approximately 40% at
the current A$ exchange rate of 0.7800. For non-resident shareholders, the dividend
will not attract withholding tax as it is sourced entirely from the Companys Conduit
Foreign Income Account. The record date will be 16 February 2015 and the payment
day 11 March 2015.

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Dividend Reinvestment Plan (DRP)


As a result of the Companys continued strong cash flow and progress in
strengthening the balance sheet the DRP will not be offered for the interim dividend.
Operational Structure:
Overall
o Ansell expects to deliver solid overall Sales & EBIT growth while reaching
low end of guidance NPD & Technology
o Launched over 50 new products, sales from new products up over 20% vs
LY.
o New technologies such as new polymer and fibre materials help
differentiation and margin Branding & Solution selling.
o Growth of top 4 brands continuing to improve, added Micro flex as core
brand Vertical Focus
o Where we have implemented vertical focus approach, strong results
achieved, Life Science, Oil & Gas, Metal Fabrication M&A
o Completed 2 acquisitions (ahead of business cases) & 1 divestment
o BSSI reshaping N America region and Midas Korea enabling strategic
control and differentiation for Hy-Flex Systems
o Demonstrated solid IT implementation capability with successful SAP
Europe Go live.
FOCUS AREAS FOR IMPROVEMENT
Organic Growth
Good success seen in many markets, however improved execution in some regions
while optimizing the timing and number of NPD launches will be important to
improved growth
Sexual Wellness GBU
Continuing to achieve good SKYN growth, but further work needed to optimize
distribution in EMEA, and improve growth in China APAC Region
Weak ANZ economy and currency continues to be a headwind. Focused on
increasing NPD traction, while improving emerging market growth.
Communication strategy and employee relation:
As the Company moves into the 2015 year we believe that it is well positioned to
further progress its development through innovation, productivity and market share
gains. In addition to the important business growth of our Company, we remain
committed to ensuring that we are an inclusive and accessible organisation with a
culture that embraces diversity. We believe this is critical to ensure strong and
sustained business growth and performance. We are also committed to ensuring that
we treat all of our employees with dignity and respect and that we seek to be an
employer of choice in all jurisdictions. Our Company actively works with local
management to ensure that we not only adequately compensate our employees
above the local minimums but also ensure that there is training, education and growth
opportunities for our employees and their families.
Ansell has adopted following Medias of communication:
1. Internet website and online interaction

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2. Emails, Texts and Calls


3. Memo and staff notice board
4. Monthly magazine and newspapers etc.

Monitoring 4Ps marketing mix:


Product: New product sales evolution generally follows an expected pattern
varying on degrees of innovation and target market dynamics and a solid pipeline will
continue to support growth.
Price: Organic growth +$19m or 5%, ~$250m Surgical segment increased 5%
on strong synthetic performance in mature markets as well as, NRL growth in
emerging markets BSSI products complement Ansells focus on differentiated
healthcare applications including a strong dental market share and leading EMS &
non-acute healthcare positions. Organic growth in exam grade products 3% driven by
differentiated synthetic offerings. Healthcare Safety Solutions growth improved on
success with Sandel OR turnover kits, a focus on core. US Sandel, surgical
protection business and selective global expansion.
Promotion: Dividend increased by 6% in F14. 22 consecutive dividend increases
over last 10 years, continued dividend growth anticipated. Priority for capital
allocation remains to support growth strategy. Share repurchase will be considered if
future growth opportunities do not meet strategic and value criteria.
Place: Completed transformative BSSI & Midas Acquisitions. Divested Household
Gloves business, announced intention to exit Military. Current focus remains on
integration, however will continue to evaluate opportunities meeting strategic and
value criteria. Also, new Global Portfolio expected to make Ansell more balanced &
less exposed to economic cycles while leveraging BSSI scale.
Monitoring marketing progress against performance targets:
Key Performance Indicator
KPI 1 Proportion of signatories in the
supply
chain implementing the SPG for
design or
procurement of packaging
KPI 3 Proportion of signatories with
on-site
recovery systems for recycling used
packaging

Baseline Data
Ansell does not currently have formally
documented implementation of ECoPP or SPG in
procurement policies

Ansell does not handle consumer goods onsite.


However, we currently have a service that
collects comingled recyclable waste from our
corporate site. Our outsourced logistics partners
have paper and plastic recycling collection
facilities at their warehouses
KPI 4 Proportion of signatories with a Ansell has a policy that all cardboard cartons for
policy to
consumer product distribution are made from
buy products made from recycled recycled material.
packaging

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KPI 6 Proportion of signatories that


have formal
processes for working with others to
improve
design and recycling of packaging
KPI 7 Proportion of signatories
demonstrating
other product stewardship outcomes
KPI 8 Reduction in the number of
packaging
items in the litter stream

Ansell currently does not have formal processes


for working with overseas suppliers and local
distributors to improve design and recycling of
packaging. We do, however, have informal
programs that embody these aims.
Overseas production facilities owned by Ansell
are located close to resources to minimise
energy embodied in manufacturing.
On some recent product developments, Ansell
has printed consumer information on the inside
surface of the actual shelf pack as an alternative
to a leaflet.

Contingences needed:
1. Organisational changes to integrate acquisitions and implement new GBU
structure.
2. Details on exit from US Military glove manufacture expected to be finalised in H1
F15.
3. Year End results will show new GBU structure, with pro-forma reconciliation to old
GBUs.
4. Shah Alam shutdown and production transfer expected to be complete by end F15.
5. Implementation of branding consolidation expected to take approximately 12
months First new
Ansell products to be launched under Micro flex brand in H1 F15.
6. Continued execution against revised ERP strategy expected through F15.
7. No impact from restructuring anticipated on F14 dividend which is expected to be
confirmed with yearend results.
8. Guidance for F15 to be provided at time of year-end results.

References:
Ansell Crop. 2000, Accessed on APRIL 20TH 2015 from,
http://www.ansell.com/en/About/Corporate/About.aspx
Ansell Crop. 2000, Accessed on APRIL 21ST 2015 from,
http://www.ansell.com/~/media/618DD6ABEB6A498AAEEFBE2F62F8608D.ash
x
Ansell Crop. 2000, Accessed on MAY 5TH 2015 from,
http://www.ansell.com/~/media/1E1A4146E29540C98A735F958CD8E171.ash
x
Ansell Crop. 2000, Accessed on MAY 9TH h 2015 from,
http://www.ansell.com/~/media/0CBF4880BA78420CB7C31EF6ED63CDA0.ash
x

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