Slide 1: Ansell Limited Half Year Results
Ansell Limited Half Year Results 31st December 2006 % Doug Tough — Chief Executive Officer Rustom Jilla —~ Chief Financial Officer yp"
Slide 2: Ansell F'07 Agenda
Ansell F’°07 Agenda Operational Overview - Doug Tough Financial Report -Rustom Jilla Strategy/Outlook - Doug Tough US dollars used in all slides unless otherwise specified
Slide 3: Half Year Performance
lalf Year Performance F’06 M1 F’O7 HA SM $396.5 $460.3 Sales 1 46.4% Provit Attributable U 415% a “FO? sales growth excluding acquisitions; 14% EDIT & down 15.7% and 14.7%, excluding $4.1M SPT write down in F706 H1.
Slide 4: Operational Overview
Operational F’07 H1 Overview Sales solid in H1, with 16% growth (14% exciuding Ji businesses, all regions tracking ahead of last year Gross margins, excluding negative (-§10M) impact of latex, were in line with prior year Operating expenses up $200, in line with growth investment plan EBIT and Provi
Slide 5: Ansell Occupational Business
Ansell Occupational Business won we 49% of Revenue and 60% of Segment EBIT oh F06H. EO7 Hi M rocky Bonn ; > Food Service / Chemical Resistant 25.6 28.2 ” . trial channels " % and 10% HyFlex® 38.6 51.5 wannels up 16% and 10%, ; : Mature (470%) and Knitted #43 244 . Disposables Sf. AS.3 NRL GP SDAKL /
Slide 6: Professional Business
Provessiona 33% of Revenue and 74 “ SM F'06 E’G? Et Bt —, Americas: US Surg PE Surgeons: Branded PF 33. 38.9 #10%, Syniti Powdered 97. 7 Synthetic exams +4 . Mature (47%) and “NS & no oS & ee. 7 4 “e Synthetic ti 9.6 Ns : Other 3 4.5 _ verging (+42%) Markets — _ ” strong. Meni: Pr 36.5 40.2 - Powder
Slide 7: Consumer Business
Cc -onsumer Business 18% of Revenue and 26% of Segment EBIT Americas: Continued SM F06hi EOr hi fierce US compe Condoms: Br. Retail $3.3 43.5 EMEA: Mature ( (+4 6%) Bid / Public 13.6 18.4 HHG & Other 14.9 26.41 . Sales 61.8 OL? 43225 constrained by capacity Segment EIT 94 11.9 HHG latex, F°06 FDA co
Slide 8: Value of Healthcare Portfolio: Businesses
Ansell F'02 Fi SACS SM Occupational 162 Professional 142 Consumer 56 Total 360 CONCLUSIONS: « Oecupational was lagging; HyFiex® , plant reloc delivered «Professional w « Ail Businesses are Inporta Segment ERT: Sales %e P nt to Anseli’s overall s . Value of Healthcare Portfolio: Businesses Or Segment
Slide 9: Value of Healthcare Portfolio: Regions
Ansell . Value of Healthcare Portfolio: Regions E02 4 F’OT 4 Sales Segment | Sales SM EAT: Sales / Si ‘ee | Armaricas 210 14.7 | 212 EMEA, 106 28 | 169 40.7 Asia Pacific 4s 17.0 | 79 15.8 Total 366 11.5 4G 10.4 CONCLIESIONS: (EMEA was lagging (partly due to FA) and is now strong + Americas was stron
Slide 10: Acquired 63% of Unimil's shares
| has acquired 63% of Unimil’s shares for S34M, giving us: The leading Condom Brands in Poland with ~50% Market Share & foothold in the German Condom Market with ~o% Market Share A 20% increase in global branded retail market share to 13% & knowledgeable castern curope Management Team to aiso assist
Slide 11: Half Year Wrap Up
Ansell. HALF YEAR WRAP UP « Objective of Growing Sales Momentum « Organically (countries, channels, products, programs) - MEA * Objective of growing EBIT «Margin contripution from sales ~ Net impact of latex (Purchase costs, Inventory, ASPs) - Planned increases in expenses for growth * Hi Generally
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Slide 13: F'07 H1 Profit & Loss
Ansell. F’07 H1 Profit & Loss GM FOG HI FO7 Ht Sales 396.3 460.2 Seles Gross Margin (82.6 164.3 Operating Expenses 100.9 120.7 _ Write down/Sale Costs 4.4 - interest & Borrowing Costs 2.4 3.0 Taxes GA 4 Minority Interests 4 18 Profit Attributable 38.3 33.9 Grose Margin : Sale 38.5 35.7 EGIT: Sales 1
Slide 14: F'07 H1 Sales
o a =i @ wo Lp) 9 © © a. © S aos Ansell F’07 Hi - Sale > Broad Based by product:- M EX@MS ‘ ~HyFlex® Parnily ook 6 ~ JISSDON a & ~ Consumer (Condoms) ~MrHG industrial & GDAKL ~ Surgical . Gi Gi ~ Other including FX * Across all Regions; Americas +578M, EMEA #$29M, AP -S(7 ivi « Emerging Markets espe
Slide 15: Latex Costs Remained High
we Ansell Latex Costs remained high ri G0 Vialay: WAV Average MERB price Impacting Hi was 7.00 —_ capa 5E% alocrve FG 6.00 F'07 start price was MYR 6.81 §.00 4.00 3.00 2.00 4.00 GG “87 ‘88 "HO 80 "G4 82 (O3 'O4 (BS "OE “O7 “OG “GO ‘OG ‘Ot “G2 ‘03 “IM ‘OS ‘06 ‘OF Prices now at higher levels than F’'0
Slide 16: F'07 H1 Margin Drivers
Ansell = F’07 Hi Margin drivers « Gross Vargins (adjusting for latex)... inline with FOG $Y ~ Gross Margin from higher sales volumes oe BE — Met P&L impact of higher latex prices anc costs of purchased exam gloves, offset by ASP increases ve a ~ Other mix ow a B — Manufacturing Supply costs reclasse
Slide 17: F'07 H1 Expenses
F’O/ Hi Expenses Ansell’s expenses were higher, in line with planned investments in growth and Infrastructure ° Growth expenses up 912M including Fx (SND ~ Jissbon 3 - Distribution 2 - Gales & Marketing, S47, MGA T « Other expenses up SOM including Fx (SM) ~ Suppert functions 4 ~ COS reclassed to Op
Slide 18: Portfolio Performance: Year on Year
Ansell oe Ty Pe 7) Americ Lo L Americas: EMEA: Asia Pac: Lo i) Portfolio Performance; Year On Ye F'O7 Hi SALES « F'O7 Hi SEGMENT EIST = u Concumer Ly Gcoupational Professias TT ve a Le i, ae Me 7 Ge ia: oS Ly 7 LD ae Ly a Lo i y lV yy _ A Lie yy Uy . . VY Ly vy | | > We We yi Cy Ly =. yy i yy i LE a
Slide 19: F'07 H1 Balance Sheet
F’07 H1 Balance Sheet $M $1 DecOS 20Jun06 31 Dec 06 Fixed Assete 144.8 144.6 148.3 Goodwill & Intangibles 205.4 2247 226.7 Other Assete/_ianilities (16.8) (144) (0.7) Investment in SPT $9.2 - - Working Capital 166.4 189.6 196.6 Net Operating Assets $86.7 541.8 376.9 Net Interest Gearing Debt OF 2 OS
Slide 20: F'07 H1 Cash Flow
F’07 Hi Cash Flow Operating 51.7 43.6 Depreciation & Asset Write Down 9.3 10.7 Working Capital 2.7 (7.0) Tax Paid 4.3) (7.9) Capital Expenditure (5.7) (9.7) Interest Paid (Net) GB) 5) rree Cash Flow (FCF) 49.9 26.2 Share Buy Backs a) (41.9) Dividends M24) C37) Other (15.7) 1.0 (increase)/Reduction i
Slide 21: F'07 H1 FCF Drivers
F’07 Hi FCF Drivers Working Capital: « 416% Sales increase required higher working capital « Working Capital Days improved from June 2000's 81.6 to 76.4 at end December 2006 Capital Expenditure: « Expansions in HyFlex® and Surgical glove capacity » Gornversions of existing lines to higher value adde
Slide 22: Financial Position
Ansell. Financial Position ... @ Ian fi B48 44, HEN Ansell’s Cagital Structure exiting Hi Provides Flexibility . Gearing of only 15.2% . Gearing likely to move to 30% via Buy-Backs, Acquisitions, Capital Expenditure - H4 On Market Share Buy-Backs $42M: new 10 million share buy- back approved Free Ca
Slide 23: Doug Tough, Chief Executive Officer: Wrap Up
Doug Tough Chief Executive Officer Wrap Up Ansell
Slide 24: Strategic Evolution
Ansell. Strategic Evolution y Methodology: Ivulti-faceted approach to growth a Russia Iv Poland Channels China Pregucts Others Programs Alliances Unirnil 4
Slide 25: F'07 Guidance
F’07 Guidance Ansell advised in August 2006, that there would be EBIT rieac Winds in F°07 cue to: Latex net impact YOY of - S10M $12M expense increase for longer term Growth Latex impact in M1 was slightly higher than expected and latex remains volatile with ~H50% increase since 1 Dec, 2006 Good New
Slide 26: Outlook Going Forward
Outlook Going Forward Ongoing: « Yoo Line Growth ~ new products, new channels, new countries * Pursult of Bolt on Acquisitions - All Divisions « Platiorm for Growth strengthened * Solid Financial Position sustained » Caplial Management ~-A new 10M share on market buy-back armounced Result: > A growi
Slide 27: Life Styles Warming
Life Styles 12 WARMING