Slide 1: Annual General Meeting Fiscal Year 2006 Results - CEO Address
Ansell Limited Annual General Meeting Fiscal Year 2006 Results CEO Address
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 2005 Sales ($M) 812 Profit Attributable ($M) 101 EPS ($M) 60 Cash Flow ($M) Dividend (¢) (PA & EPS are pre-SPT) 2006 849 91 57 a 21 % 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 detention Up
Slide 5: Malaysian latex prices
Malaysian ‘00 MYR (per wet kg) 7.00 F 07 start price Latex Prices was MER Oe! 6.00 +7 in F 05 +737 in F'06 5.00 4.00 3.00 2.00 1.00 ‘86 ‘87 "88 '89 ‘90 ‘91 "92 ‘93 '94 "95 '96 ‘97 '98 "99 ‘00 '01 ‘02 '03 '04 '05 ‘06 Based on recent (6 — 7 year ) cycles, there was no reason to expect a sharp increase
Slide 6: FY 2006 Latex and Non Latex sales and margin
FY 2006 $M % Change Sales ($M) Latex Non Latex Margin ($M) Latex Non Latex
Slide 7: What are We Doing About Latex Increases?
What are We Doing About Latex Increases? During F’06: * Increased selling prices (with modest success) * Exited some GPO contracts (exams) * Productivity improvements at plants, overhead cuts « What we didn’t do, in view of “historic cycles” .... was buy forward For F’07: Price increases on exam and
Slide 8: Our Products
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Slide 10: Diversified Key Customers
Diversified Key Customers * Companies: industrial, auto, chemicals, food etc. Hospitals/Medical Centres; acute and alternate care, first responders etc Retail: food stores, rug stores, onvenience stores, mass merchandisers
Slide 11: Occupational Business
Occupational Business 50% of Revenue — 56% of Profits 2006 % Change Sales ($M) Segment EBIT ($M) HyFlex Growth +17% Guardian ™ Programs New Products/Channels Preferred Distributor Partner 425 +4 61
Slide 12: Professional Business
Professional Business 34% of Revenue — 27% of Profits PAUL) 2006 % Change Sales ($M) 276 289 Segment EBIT ($M) 33 29 Solid Sales Growth Latex — Pricing Impacted our costs and gross margins New Products including non-Latex Synthetics implementing Price Increases EMEA resurgence
Slide 13: Consumer Business
Consumer Business 16% of Revenue — 17% of Profits 2005 2006 % Change Sales ($M) 126 136 Segment EBIT ($M) 22 18 Solid European & Tender Business Results Jissbon Acquisition in China USA Competitive Costs Latex Cost Impacts
Slide 14: Latex Cost Graph .... Updated
Latex Cost Graph .... Updated Malaysian ‘00 Source: Malaysian Rubber Board MYR (per wet kg} Statistics 7.00 - Price on Oct 16 was MYR 4.66 — 6.00 7 | | down 32% from F 07 start price July 1 price Latex Prices was MYR 6.31 5.00 47% in F'05 473% in F 06 4.00 3.00 "87 ‘88 '89 ‘90 '91 ‘92 '93 "94 "95 "9
Slide 15: Strategic Evolution
Strategic Evolution + From meeting multi-year Segment EBIT commitments to advancing Ansell Growth Strategy for F’07 and Beyond Methodology: P06 Base Synthetic Surg Excite™ AlphaTEC™ Channels China Technical issbon Mexico partnerships india Other Russia
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 16
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 capability
Slide 18: F'07 Outlook
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
Slide 19: ANSELL LIMITED
ANSELL LIMITED Boole