FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of August 2003 (August 14, 2003)
Commission File Number: 0-15850
ANSELL LIMITED
(Translation of registrant's 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 is designated as incorporated by reference into the Form F-3
Registration Statement filed with the Securities and Exchange Commission on
November 20, 1990 with file numbers 33-37752 and 33-37752-01, the Form F-3
Registration Statement filed with the Securities and Exchange Commission on
April 30, 1991 with file number 33-40228, the Form F-3 Registration Statement
filed with the Securities and Exchange Commission on October 31, 1994 with file
numbers 33-85802 and 33-85802-1, the Form S-8 Registration Statement filed with
the Securities and Exchange Commission with file number 33-18603, and the Form
F-3 Registration Statement filed with the Securities and Exchange Commission on
July 25, 1997 with file number 333-6472.
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
management's 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 Company's 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 Company's business
strategies, including further structural and operational changes, business
dispositions, internal reorganizations, cost cutting, and consolidations.
NEWS RELEASE
[ANSELL LOGO]
Ansell Limited
A.C.N. 004 085 330
Level 3, 678 Victoria Street,
Richmond, Victoria 3121, Australia
GPO Box 772H, Melbourne,
Victoria 3001, Australia,
Telephone (+61 3) 9270 7270
Facsimile (+61 3) 9270 7300
www.ansell.com
14th August, 2003
Ansell Limited Full Year Results 2003
Double-digit EBITA Growth Achieved
Highlights:
o Double-digit US$ EBITA growth achieved, with a 10.5% improvement in
Healthcare segment EBITA, up from US$84.7 million (A$162.3 million) to
US$93.6 million (A$159.5 million).
o Profit attributable at US$29.3 million (A$49.9 million) vs. last year's
loss of US$60.5 million (A$115.8 million).
o Earnings per share (EPS) of US15.7(cent) (A26.7(cent)), vs. last year's
loss of US32.3(cent) (A61.9(cent)).
o Further reduction in Net Debt (Cash Generated) of US$82.9 million.
o Gearing improved further to 18.1%, from 29.4% last year.
o Reinstatement of a dividend of A11(cent) cents per share (unfranked) for
the full year, payable 9 October, 2003.
14th August, 2003
Ansell Ltd Full Year Results 2003
---------------------------------------------------------------------------------------------------------
30th June, 2002 30th June, 2003
------------------------------------------------------------
US$ m A$ m US$ m A$ m
---------------------------------------------------------------------------------------------------------
Operating Revenue - Healthcare Segment* *738.5 *1,414.2 758.7 1,293.6
Operating Profit (Healthcare Segment EBITA) 84.7 162.3 93.6 159.6
Profit Attributable (60.5) (115.8) **29.3 49.9
Total Funds Employed - Ansell Ltd. 703.0 1,241.8 687.2 1,030.7
Assets Employed - Healthcare Segment 521.4 921.1 498.7 748.1
Earnings Per Share (32.3(cent)) (61.9(cent)) **15.7(cent) 26.7(cent)
---------------------------------------------------------------------------------------------------------
* Excludes Discontinued Businesses. Including Discontinued Businesses, 2002
revenue was US$1,160.7 million (A$2,222.8 million).
** Excluding Ambri write down, Profit Attributable is US$32.9 million (A$56.0
million) and Earnings Per Share is US 17.6(cent) (A 30.0(cent))
Ansell's Chairman, Dr Ed Tweddell, today announced Ansell's results for F'03,
including:
o Profit Attributable to Shareholders of US$29.3 million (A$49.9), up
strongly from the previous year's loss of US$60.5 million (A$115.8
million),
o Earnings Per Share (EPS) of US15.7(cent) (A26.7(cent)), up on the previous
year's loss of US32.3(cent) (A61.9(cent)),
o Reinstatement of a dividend payment, set at A11(cent) per share
(unfranked),
Dr Tweddell commented, "The Board and Management are pleased to be able to
announce earnings in line with expectations, in the first full year under the
Ansell banner. Based on this result, Directors have reinstated a cash dividend,
signaling confidence in the future and a new phase for Ansell. The dividend is
part of a balanced capital management strategy which includes maintaining a
conservative balance sheet, and initiating a share buy-back program, while
retaining the financial capacity for bolt on acquisitions."
Operating results were sound in difficult trading conditions. The Company's
commitment to deliver double-digit growth in US$ Healthcare segment EBITA was
achieved, with growth from US$84.7 million (A$162.3 million) to US$93.6 million
(A$159.6 million), a 10.5% increase.
This result was achieved on 2.7% growth in continuing business revenues to
US$758.7 million (A$1,293.6 million), up from last year's US$738.5 million
(A$1,414.2 million). In contrast with recent years, the stronger Euro and A$
significantly assisted Ansell Healthcare's US$ operating results.
-2-
Commenting on the results, the Company's CEO, Mr. Harry Boon, said "The
Occupational Division, which accounted for almost half of FY03's revenues,
recorded outstanding results during a period of slower economic activity,
reflecting the strength of the Ansell business and brands."
"The Consumer Division continued to show solid margin improvement, benefiting
from manufacturing cost reductions, price increases in condoms and Operation
Full Potential initiatives" Mr. Boon said.
As previously announced, the Professional Division experienced an interruption
to supply of surgeons' gloves, as well as price reductions in examination gloves
in the first half of the year. This Division's lower profit reflects the impact
of these first half factors, as well as non-recurring airfreight for restocking
the market in the second half".
"Importantly, Ansell's surgeons' gloves supplies returned to normal during the
fourth quarter, and we have commenced the task of recovering lost USA market
share, estimated at 4 percentage points in the powder-free sector. In addition,
the world oversupply of examination gloves abated during the second half, and
prices have stabilized," Mr Boon concluded.
Occupational Healthcare
-----------------------------------------------------------------------------------------------------
30th June, 2002 30th June, 2003
-------------------------------------------------------------------
US$ m A$ m US$ m A$ m
-----------------------------------------------------------------------------------------------------
Operating Revenue 334.3 640.2 366.5 624.9
Operating Profit (Segment EBITA) 19.3 37.0 36.9 62.9
Assets Employed 212.8 376.0 200.6 300.9
EBITA Margin 5.8% 10.1%
-----------------------------------------------------------------------------------------------------
The Occupational Division accounted for 48% of Ansell's F'03 Sales and 39% of
Healthcare segment EBITA.
Occupational Sales increased by 10%, with exceptionally strong performances in
Asia Pacific and Europe. In the America's sales were flat due to a weaker US
manufacturing environment, and to some knitted product supply shortfalls during
the transfer of production from the US to Mexico.
The division's outstanding 91% increase in EBITA was driven by:
o world wide growth in volume, market share and margin of our flagship
HyFlex(R) range of ergonomic gloves,
o continuing benefits from the ongoing manufacturing rationalization and
restructuring program,
o an increased proportion of newer products.
-3-
The strategy of diversifying Occupational's customer base in order to reduce
exposure to economic cycles continued. Significant progress has been made in
expanding sales to the meat and food processing industries, thereby reducing our
dependence on the automotive and general manufacturing sectors.
The Occupational Value Proposition (OVP) concept of hand injury reduction
continues to run smoothly at Ford USA, and is being progressively introduced to
a number of other end users and distributors who have demonstrated interest in
this novel approach. Management expects the OVP initiative, which is a key plank
of Operation Full Potential, to develop steadily over time. OVP is a
"game-changing" concept that requires a change in the traditional way many
customers manage hand injury costs. Trials are currently underway at a number of
major potential customers' plants.
In the absence of further global economic decline, Management anticipate ongoing
strong results from the Occupational Division, as sales continue to grow,
assisted by a number of new additions to the HyFlex(R) product range,
progressive adoption of the OVP concept, better focus resulting from the
Operation Full Potential product rationalization program and lower costs flowing
from previously announced production relocations.
Professional Healthcare
------------------------------------------------------------------------------------------------------
30th June, 2002 30th June, 2003
------------------------------------------------------------------
US$ m A$ m US$ m A$ m
------------------------------------------------------------------------------------------------------
Operating Revenue 285.6 546.9 265.5 452.6
Operating Profit (Segment EBITA) 48.4 92.7 31.6 53.9
Assets Employed 228.9 404.3 221.0 331.5
EBITA Margin 17.0% 11.9%
------------------------------------------------------------------------------------------------------
The Professional Division accounted for 35% of Ansell's F'03 Sales and 34% of
Healthcare segment EBITA.
Professional Sales declined by 7%, and EBITA fell by 35%. Outstanding
performances in Asia Pacific and Europe were offset by first half surgeons'
gloves supply interruption and examination glove price reductions, especially in
the USA. Operating expenses were higher in the second half due to non-recurring
airfreight costs in resupplying the surgeons' gloves market, and to higher latex
raw material costs.
Surgeons' gloves supply improved markedly in the second half, and Distributor
inventories are now at normal levels. The US Sales and Marketing team is focused
on a number of initiatives designed to the regain the approximately 4 percentage
points of US powder-free surgeons' gloves market share lost during the supply
disruption. Importantly, no significant price erosion has been experienced in PF
surgeons' gloves.
-4-
At the same time, continuing growth of Ansell's powder-free surgeons' gloves was
achieved in Europe, with branded sales up 19%, and in Asia Pacific (up 15%). In
examination gloves, global oversupply led to significant price reductions
earlier in the year. A number of competitors reported financial difficulties as
the combined result of increases in the cost of latex raw material, and the
first half selling price reductions. In recent months, prices of higher end
examination gloves have stabilized, and prices at the low end of the market have
begun to rise.
Consumer Healthcare
------------------------------------------------------------------------------------------------------------------
30th June, 2002 30th June, 2003
--------------------------------- ----------------------------------
US$ m A$ m US$ m A$ m
--------------------------------------------- ---------------- ---------------- ----------------- ----------------
Operating Revenue 118.6 227.1 126.7 216.1
Operating Profit (Segment EBITA) 17.0 32.6 25.1 42.8
Assets Employed 79.7 140.8 77.1 115.7
EBITA Margin 14.3% 19.8%
------------------------------------------------------------------------------------------------------------------
The Consumer Division accounted for 17% of Ansell's F'03 Sales and 27% of
Healthcare segment EBITA.
Consumer sales grew by 7%, including growth from public aid and assistance
agencies in the fight against HIV/AIDS. Ansell's condom business continues to
build on a reputation for high quality from our low cost Asian plants. The
European Region saw gains in market share in the UK and France, based
significantly on the new "Xtra PleasureTM" condom. This success was replicated
in the Asia Pacific Region, where sales grew 14%, with strong improvement in New
Zealand, Malaysia and Thailand. In the Americas Region, USA total branded retail
condom market share held steady at 23% in volume and 20% in value, while the
important Public Sector segment remained strong.
In retail household gloves (HHG), 9% volume growth was achieved in Europe, while
volumes declined in the USA, as the Company withdrew from an unsatisfactory
customer relationship in preparation for a relaunch in 2004. A new range of
foamlined HHG continued to gain market share in Europe and Australia, and
expansion of manufacturing capacity for this unique product technology is
planned in FY04.
Operation Full Potential (OFP)
June 2003 marked the completion of the first phase of the three-year OFP
program, which is designed to lift Ansell's US$ EBITA by 50% from the 2001 level
by the end of 2005.
The global launch of OFP was completed, as were the initiatives that were
planned as part of Waves I and II of the program. In the coming year, OFP will
concentrate on completing the implementation of growth initiatives from Wave II
in the Professional and Occupational Divisions, and on the launch of Wave III of
the program.
-5-
During this second year of the program, the activities and capabilities
developed within OFP will be fully integrated into the business Divisions,
thereby reinforcing the new "performance culture" into the core of Ansell's
business.
Non-Core Investments and Discontinued Businesses
During the first half, two investments were sold, Pacific Marine Batteries and
BT Equipment, with resultant cash generation of US$9.4 million (A$16.7 million).
A premium to book value was received. The Company has also made significant
progress in resolving various remaining "legacy issues" from discontinued
businesses.
South Pacific Tyres (SPT)
Ansell retains its 50% investment in the South Pacific Tyres partnership with
the Goodyear Tire and Rubber Company. The joint venture is accounted for as an
investment, with operating results excluded from Ansell's results.
The Directors at this time believe that SPT's performance and 3 year EBIT
projections continue to justify retention of the asset at full value on Ansell's
books.
Ambri
In reviewing the carrying value of assets, the Company has found it necessary to
write down the value of its non-core residual investment in the listed company,
Ambri Limited. The book value was the original float price of A$1.11 per share,
while, at June 30, 2003, the market price was A$0.375. A non-recurring, non-cash
write off of US$3.6 million (A$6.1 million) was incurred before and after tax on
the Group's 8.3 million shares, to bring the written down book value to US$2.1
million (A$3.1 million) into line with the market price.
Corporate Costs
Outstanding progress was made during the year in reducing the Corporate Office
costs to US$6.7 million (A$11.5 million), down 47% on the previous year, on a
comparable basis. Staff numbers are now at appropriate levels and Regional
Ansell staff in Australia have been relocated to the Melbourne Corporate Office
for greater efficiency. OFP costs of US$6.4 million (A$10.9 million), last year
US$1.9 million (A$3.7 million), were incurred as a corporate expense.
Board and Senior Management
As previously announced, the Board was strengthened further during the year with
the appointment of Mr. L. Dale Crandall, who comes with a strong international
finance and accounting background, having been a Managing Partner with Price
Waterhouse in the U.S. and more recently, President and Chief Operating Officer
of a major American healthcare company.
-6-
A number of senior management appointments were also made during the first half,
augmenting Ansell's capabilities in Supply and Logistics (Mr. Scott Papier),
Finance (Mr. Rustom Jilla), Program Management (Mr. Duane Dickson), and Science
and Technology (Dr Michael Zedalis).
In the second half, management ranks were further strengthened with Mr. Rainer
Wolf joining as Head of Global Manufacturing. He has extensive experience in
manufacturing operations and quality systems with 3M, and is based at Shah Alam,
Malaysia.
Finance
The Company's financial structure remains robust. Cash flow is strong, net
interest bearing debt (NIBD) was reduced by US$82.9 million, and gearing (NIBD
to NIBD plus equity) has further improved to 18.1%, down from 29.4% last year.
Interest cover was 6.4X, significantly better than last year's 4.5X.
This strong cash flow came from improved profits (EBITDA) of US$98.9 million
(A$168.6 million), up from last year's US$92.1 million (A$176.4 million), and
reductions in working capital, tax, net interest paid and capital expenditures.
Significantly, the Company has converted over 80% of Operating EBITDA to cash.
Liquidity continues to be a strength, with available cash on deposit of US$190.2
million (A$285.4 million), and an unused bank facility of US$100 million (A$150
million).
The share buy-back element of the balanced capital management strategy has
progressed well and, at June 30 almost 1.5 million shares had been repurchased
at an average price of approximately A$5.80. The Company intends to continue the
previously announced buy-back program.
Dividend
At the end of the first half, Directors announced a share buy-back, as part of
the balanced capital management strategy, as well as a review of dividend policy
after the full year results were known. Based on strong and sustainable
operating profit improvements, cash generation and low gearing, the Board is
pleased to announce an unfranked dividend of A11.0(cent) per share for the year,
payable on 9 October, 2003.
Outlook
The Chairman, Dr Ed Tweddell commented "The world economy is far from buoyant
and challenges remain. Management is aggressively addressing the task of
regaining PF surgeons' gloves market share in the USA, continuing to produce low
cost high quality product and maintaining regulatory compliance. Ansell has
emerged from a tough year with a strengthened management team, an enhanced
competitive position, strong brands and is well positioned to continue to meet
its previously stated growth objectives."
-7-
Annual General Meeting
The Annual General Meeting of the Company will be held on Thursday October 9,
2003 in the Latrobe Theatre, Melbourne Convention Centre, corner Spencer and
Flinders Street, Melbourne, commencing at 10:00am.
================================================================================
Ansell Limited is a global leader in healthcare barrier protective products.
With operations in the Americas, Europe and Asia, Ansell employs more than
12,000 people worldwide and holds leading positions in the natural latex and
synthetic polymer glove and condom markets. Ansell operates in three main
business segments: Occupational Healthcare, supplying hand protection to the
industrial market; Professional Healthcare, supplying surgical and examination
gloves to healthcare professionals; and Consumer Healthcare, supplying sexual
health products and consumer hand protection. Information on Ansell and its
products can be found at http://www.ansell.com.
For further information:
Media Investors & Analysts
----- --------------------
Australia USA Australia
Richard Colquhoun Rustom Jilla David Graham
Cannings Chief Financial Officer General Manager - Financial & Treasury
Tel: (61) 0412 007 699 Tel: (1732) 345 5359 Tel: (613) 9270 7215
Email: rcolquhoun@cannings.net.au Email: rjilla@ansell.com Email: dgraham@ap.ansell.com
-8-
Appendix 4E
Preliminary Final Report
For the year ended 30 June 2003
Ansell Limited and its Controlled Entities
ACN 004 085 330
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
--------------------------------------------------------------------------------
Appendix 4E
Preliminary Final Report
For the year ended 30 June 2003
Ansell Limited and its Controlled Entities
ACN 004 085 330
--------------------------------------------------------------------------------
Results for Announcement to the Market
% SM
--------------------------------------------------------------------------------
Revenue from ordinary activities up/(down) (58.6)% to 1,320.1
ordinary up/(down) n.a. to 49.9
attributable to members
for the up/(down) n.a. to 49.9
Dividends (distributions) Amount Franked amount per
per security security
--------------------------------------------------------------------------------
Dividend 11.0 c Nil
Record date for determining entitlements to the dividend
18th September, 2003
o Revenue from continuing Healthcare business $1,293.6 million compared to
last year's $1,414.2 million.
o Net profit attributable to members $49.9 million compared to last year's
loss of $115.8 million.
o Earnings per share of 26.7c, compared with last year's loss of 61.9c.
o An unfranked dividend of 11c per share has been declared, payable on 9th
October, 2003
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
--------------------------------------------------------------------------------
Statement of Financial Performance
--------------------------------------------------------------------------------
of Ansell Limited and its Controlled Entities for the year ended 30 June 2003
2003 2002 2003 2002
Note A$m A$m US$m/(a)/ US$m/(a)/
-----------------------------------------------------------------------------------------------------------------
Revenue 1
Total revenue 1,320.1 3,190.4 774.3 1,665.8
Expenses
Cost of good sold 830.4 1,493.3 487.0 779.7
Selling, distribution and adminstrative 366.8 587.1 215.1 306.5
Write-down of assets 6.1 176.5 3.6 92.2
Net assets of businesses disposed - 922.4 - 481.6
-----------------------------------------------------------------------------------------------------------------
Total expenses, excluding borrowing costs 1,203.3 3,179.3 705.7 1,660.0
Borrowing costs 37.8 70.2 22.2 36.7
Share of net gain/(loss) of associates' and joint venture entities 0.3 1.9 0.2 1.0
-----------------------------------------------------------------------------------------------------------------
Profit/(loss) from ordinary activities before income tax expense 2 79.3 (57.2) 46.6 (29.9)
Income tax expense attributable to ordinary activities 26.8 55.8 15.8 29.1
-----------------------------------------------------------------------------------------------------------------
Net profit/(loss) from ordinary activities after income tax expense 52.5 (113.0) 30.8 (59.0)
Outside equity interests in net profit/(loss) after income tax 2.6 2.8 1.5 1.5
-----------------------------------------------------------------------------------------------------------------
Net profit/(loss) after income tax attributable to Ansell Limited 49.9 (115.8) 29.3 (60.5)
shareholders
-----------------------------------------------------------------------------------------------------------------
Non-owner transaction changes in equity
Net exchange difference on translation of financial statements of
self-sustaining foreign operations (71.3) (69.6) (41.8) (36.3)
-----------------------------------------------------------------------------------------------------------------
Total valuation adjustments attributable to Ansell Limited (71.3) (69.6) (41.8) (36.3)
shareholders recognised directly in equity
-----------------------------------------------------------------------------------------------------------------
Total changes in equity from non-owner related transaction (21.4) (185.4) (12.5) (96.8)
attributable to Ansell Limited shareholders
=================================================================================================================
cents cents cents cents
-----------------------------------------------------------------------------------------------------------------
Earnings per share is based on Net Profit/(Loss) after income tax
attributable to Ansell Limited shareholders
Basic earnings per share 26.7 (61.9) 15.7 (32.3)
Diluted earnings per share 26.6 (61.7) 15.6 (32.2)
-----------------------------------------------------------------------------------------------------------------
/(a)/ Translation of amounts from Australian dollars to US dollars has been made
throughout the Statement of Financial Performance for the convenience of
the reader at US$0.58651 = A$1, being the average of the 10.00 am mid
buy/sell rate for Australian dollars as quoted by Reuters on the last
working day of the month for the 13 month period June 2002 to June 2003
(June 2002 US$0.52214 = A$1).
Appendix 4E - Page 3
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
--------------------------------------------------------------------------------
Statement of Financial Position
--------------------------------------------------------------------------------
of Ansell Limited and its Controlled Entities as at 30 June 2003
2003 2002 2003 2002
Note A$m A$m US$m/(a)/ US$m/(a)/
------------------------------------------------------------------------------------------------------------
Current Assets
Cash 286.0 258.5 190.7 146.3
Cash - restricted deposits 13.8 18.4 9.2 10.4
Receivables/(c)/ 262.4 293.7 175.0 166.2
Inventories 187.9 235.1 125.3 133.2
Prepayments 10.9 15.8 7.2 8.9
------------------------------------------------------------------------------------------------------------
Total Current Assets 761.0 821.5 507.4 465.0
------------------------------------------------------------------------------------------------------------
Non-Current Assets
Receivables/(c)/ 57.0 66.7 38.0 37.8
Investments accounted for using the equity method - 13.3 - 7.5
Other investments/(b)/ 141.4 145.8 94.3 82.5
Other property, plant and equipment 262.9 332.5 175.3 188.2
Intangible assets 324.5 403.2 216.4 228.2
Tax assets 32.0 49.7 21.3 28.2
------------------------------------------------------------------------------------------------------------
Total Non-Current assets 817.8 1,011.2 545.3 572.4
------------------------------------------------------------------------------------------------------------
Total Assets 1,578.8 1,832.7 1,052.7 1,037.4
------------------------------------------------------------------------------------------------------------
Current Liabilities
Payables 154.4 192.7 103.0 109.1
Interest-bearing liabilities 151.8 107.6 101.2 60.9
Provisions 57.5 85.4 38.3 48.3
Current tax liabilities 3.1 1.9 2.1 1.1
Other 1.1 1.2 0.7 0.7
------------------------------------------------------------------------------------------------------------
Total Current Liabilities 367.9 388.8 245.3 220.1
------------------------------------------------------------------------------------------------------------
Non-Current Liabilities
Payables 3.2 3.7 2.1 2.1
Interest-bearing liabilities 320.0 516.5 213.4 292.4
Provisions 21.7 23.3 14.5 13.1
Deferred tax liabilities 21.5 24.4 14.3 13.8
------------------------------------------------------------------------------------------------------------
Total Non-Current Liabilities 366.4 567.9 244.3 321.4
------------------------------------------------------------------------------------------------------------
Total Liabilities 734.3 956.7 489.6 541.5
------------------------------------------------------------------------------------------------------------
Net Assets 844.5 876.0 563.1 495.9
============================================================================================================
Equity
Contributed equity 1,448.3 1,455.5 965.7 823.9
Reserves (268.9) (176.2) (179.3) (99.7)
Accumulated losses 3 (345.7) (417.0) (230.5) (236.0)
------------------------------------------------------------------------------------------------------------
Total Equity Attributable to Ansell Limited Shareholders 833.7 862.3 555.9 488.2
Outside equity interests 10.8 13.7 7.2 7.7
------------------------------------------------------------------------------------------------------------
Total Equity 4 844.5 876.0 563.1 495.9
============================================================================================================
/(a)/ Translation of amounts from Australian dollars to US dollars has been made
throughout the Statement of Financial Position for the convenience of the
reader at the 10.00 am mid buy/sell rate for Australian dollars as quoted
by Reuters on Monday, 30 June 2003, at US$0.66675 = A$1 (June 2002
US$0.56605 = A$1).
/(b)/ Includes investment in South Pacific Tyres Partnership and South Pacific
Tyres N.Z. Ltd of $138.3m (US$ 92.2m) [June 2002 $136.5m (US$ 77.3m)]
/(c)/ Includes interest bearing loans to South Pacific Tyres Partnership of
$62.7m (US$ 41.8m) [June 2002 $59.4m (US$ 33.6m)]
Appendix 4E - Page 4
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
---------------------------------------------------------------------------------------------------------
Statement of Cash Flows
---------------------------------------------------------------------------------------------------------
of Ansell Limited and its Controlled Entities for the year ended 30 June 2003
2003 2002 2003 2002
A$ m A$m US$m/(a)/ US$m/(a)/
---------------------------------------------------------------------------------------------------------
Cash flows Related to Operating Activities
Institute) 1,357.0 2,356.5 795.9 1,230.4
Payments to suppliers and employees (excluding non
recurring and Accufix Research Institute) (1,159.9) (2,124.8) (679.9) (1,109.4)
---------------------------------------------------------------------------------------------------------
Research
Institute) 197.1 231.7 116.0 121.0
Income taxes paid (8.6) (25.5) (5.0) (13.3)
Dividends received 2.6 0.3 1.5 0.2
---------------------------------------------------------------------------------------------------------
Net cash provided by operating activities (excluding
non recurring and Accufix Research Institute) 191.1 206.5 112.5 107.9
Non recurring payments to suppliers and employees (26.8) (82.7) (15.7) (43.2)
Payments to suppliers and employees net of customer
receipts (Accufix Research Institute) (2.7) (10.7) (1.6) (5.6)
---------------------------------------------------------------------------------------------------------
Net Cash Provided by Operating Activities 161.6 113.1 95.2 59.1
---------------------------------------------------------------------------------------------------------
Cash Flows Related to Investing Activities
Payments for businesses, net of cash acquired - (40.9) - (21.4)
Payments for property, plant and equipment (15.4) (34.3) (9.1) (17.9)
Proceeds from sale of businesses, net of cash disposed - 936.4 - 488.9
Proceeds from sale of plant and equipment in the
ordinary course of business 6.1 12.1 3.6 6.3
Loans repaid 4.2 1.2 2.5 0.6
Proceeds from sale of other investments 9.1 - 5.3 -
---------------------------------------------------------------------------------------------------------
Net Cash Provided by Investing Activities 4.0 874.5 2.3 456.5
---------------------------------------------------------------------------------------------------------
Cash Flows Related to Financing Activities
Proceeds from borrowings 7.8 737.0 4.6 384.8
Repayments of borrowings (86.9) (1,673.9) (51.0) (874.0)
---------------------------------------------------------------------------------------------------------
Net repayments of borrowings (79.1) (936.9) (46.4) (489.2)
Proceeds from issues of shares 1.0 1.2 0.6 0.6
Payments for share buy-back (8.2) - (4.8) -
Dividends paid (1.7) (48.3) (1.0) (25.2)
Interest received 8.0 13.1 4.7 6.8
Interest and borrowing costs paid (37.8) (70.2) (22.2) (36.7)
---------------------------------------------------------------------------------------------------------
Net Cash Used in Financing Activities (117.8) (1,041.1) (69.1) (543.7)
---------------------------------------------------------------------------------------------------------
Net (Decrease)/Increase in Cash Held 47.8 (53.5) 28.4 (28.1)
Cash at the beginning of the financial year 262.3 328.4 148.6 185.9
Effects of exchange rate changes on the balances of
cash held in foreign currencies at the beginning of
the financial year (12.9) (12.6) 21.4 (9.2)
---------------------------------------------------------------------------------------------------------
Cash at the End of the Financial Year 297.2 262.3 198.4 148.6
=========================================================================================================
(a) Translation of amounts from Australian dollars to US dollars has been made
throughout the Consolidated Statement of Cash Flows for the convenience of the
reader at US$0.58651 = A$1, being the average of the 10.00 am mid buy/sell rate
for Australian dollars as quoted by Reuters on the last working day of the month
for the 13 months period June 2002 to June 2003 (June 2002 US$0.52214 = A$1).
Appendix 4E - Page 5
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
================================================================================
Industry Segments
================================================================================
of Ansell Limited and its Controlled Entities for the year ended 30 June 2003
Operating Revenue Operating Result
2003 2002 2003 2002 2003 2002 2003 2002
A$m A$m US$m US$m A$m A$m US$m US$m
------------------------------------------------------------------- ---------------------------------
INDUSTRY
Ansell Healthcare
Occupational Healthcare 624.9 640.2 366.5 334.3 62.9 37.0 36.9 19.3
Professional Healthcare 452.6 546.9 265.5 285.6 53.9 92.7 31.6 48.4
Consumer Healthcare 216.1 227.1 126.7 118.6 42.8 32.6 25.1 17.0
------------------------------------ ---------------------------------
Total Ansell Healthcare 1,293.6 1,414.2 758.7 738.5 159.6 162.3 93.6 84.7
Unallocated Items 26.5 27.9 15.6 14.4 (22.4) (27.7) (13.1) (14.5)
---------------------------------
Discontinued Businesses 137.2 134.6 80.5 70.2
Trading 808.6 422.2 61.0 31.9
---------------------------------
Operating EBITA 137.2 195.6 80.5 102.1
NON RECURRING
Discontinued Businesses
Net gain on sale of interests
in Associated Companies 5.5 3.2
Proceeds/Net gain on sale of
Controlled Entities and
Businesses 939.7 490.7 25.7 13.4
Rationalisation/Restructuring
Ansell Healthcare (4.6) (11.6) (2.7) (6.1)
Other (5.5) (6.5) (3.2) (3.4)
Write-down of assets
Ansell Healthcare (63.1) (32.9)
Exide Investment (99.9) (52.2)
Other (1.5) (13.5) (0.9) (7.0)
---------------------------------
131.1 26.7 76.9 13.9
Goodwill amortisation (25.3) (29.2) (14.8) (15.2)
---------------------------------
Earnings before Net Interest
and Tax (EBIT) 105.8 (2.5) 62.1 (1.3)
Borrowing Costs net of Interest
Revenue (26.5) (54.7) (15.5) (28.6)
---------------------------------
Operating Profit before Tax 79.3 (57.2) 46.6 (29.9)
Tax (26.8) (55.8) (15.8) (29.1)
Outside Equity Interests (2.6) (2.8) (1.5) (1.5)
---------------------------------
Total Consolidated 1,320.1 3,190.4 774.3 1,665.8 49.9 (115.8) 29.3 (60.5)
========================================================================================================
Regions
Australia & South East Asia 173.7 170.7 101.9 89.1 35.9 32.9 21.1 17.2
America 656.0 799.5 384.7 417.6 80.2 99.1 47.0 51.7
Europe 463.9 444.0 272.1 231.8 43.5 30.3 25.5 15.8
--------------------------------------------------------------------------------------------------------
1,293.6 1,414.2 758.7 738.5 159.6 162.3 93.6 84.7
========================================================================================================
Assets Employed Liabilities
2003 2002 2003 2002 2003 2002 2003 2002
A$m A$m US$m US$m A$m A$m US$m US$m
------------------------------------------------------------------- ---------------------------------
INDUSTRY
Ansell Healthcare
Occupational Healthcare 300.9 376.0 200.6 212.8 118.8 124.7 79.2 70.6
Professional Healthcare 331.5 404.3 221.0 228.9 108.3 114.3 72.2 64.7
Consumer Healthcare 115.7 140.8 77.1 79.7 52.8 54.6 35.2 30.9
-------------------------------------------------------------------------
Total Ansell Healthcare 748.1 921.1 498.7 521.4 279.9 293.6 86.6 166.2
Unallocated Items (16.6) (21.1) (11.0) (11.9) 426.1 619.9 284.1 350.8
Discontinued Businesses 223.0 252.6 148.7 143.0 28.3 43.2 18.9 24.5
Goodwill and Brand names 324.5 403.2 216.4 228.2
Cash 299.8 276.9 199.9 156.7
-------------------------------------------------------------------------
Total Consolidated 1,578.8 1,832.7 1,052.7 1,037.4 734.3 956.7 489.6 541.5
========================================================================================================
REGIONS
Australia & South East Asia 269.5 318.4 179.7 180.2 78.6 83.0 52.4 47.0
America 297.5 398.6 198.4 225.7 173.2 181.9 115.5 103.0
Europe 181.1 204.1 120.6 115.5 28.1 28.7 18.7 16.2
-------------------------------------------------------------------------
748.1 921.1 498.7 521.4 279.9 293.6 186.6 166.2
========================================================================================================
The above industry segments report should be read in conjunction with the
accompanying notes.
Appendix 4E - Page 6
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
--------------------------------------------------------------------------------
Notes
--------------------------------------------------------------------------------
1. Total Revenue
2003 2002
A$m ASm
---------------------------------------------------------------------------------------------------------
Revenue from the sale of goods 1,293.6 2,222.8
Revenue From Other Operating Activities
Dividend Income
From shares in other companies - 0.3
Interest Received or Due and Receivable
From related parties 3.3 2.5
From others 8.0 13.0
---------------------------------------------------------------------------------------------------------
Total revenue from other operating activities 11.3 15.8
---------------------------------------------------------------------------------------------------------
Revenue from Outside Operating Activities
Proceeds from the Sale of Non-Current Assets 15.2 12.1
Proceeds Received from the Sale of Businesses - 939.7
---------------------------------------------------------------------------------------------------------
Total revenue from outside operating activities 15.2 951.8
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Total Revenue 1,320.1 3,190.4
=========================================================================================================
2. Profit/(Loss) from Ordinary Activities Before Income Tax
2003 2002
A$m A$m
---------------------------------------------------------------------------------------------------------
Individually significant items included in profit/(loss) from ordinary
activities before income tax expense
Write-down of Exide receivable/investment - (99.9)
Write-down of Ansell Healthcare fixed assets - (63.1)
Net gain on sale of controlled entities and businesses - 25.7
3. Accumulated Losses
2003 2002
A$m A$m
---------------------------------------------------------------------------------------------------------
Accumulated losses at beginning of the financial period (417.0) (289.9)
Net transfers from/(to) reserves 21.4 (11.4)
Net profit (loss) attributable to members 49.9 (115.8)
Overprovision of prior year dividend - 0.1
---------------------------------------------------------------------------------------------------------
Accumulated losses at end of the financial period (345.7) (417.0)
=========================================================================================================
4. Total Equity
2003 2002
A$m A$m
---------------------------------------------------------------------------------------------------------
Total equity at the beginning of the year 876.0 1,066.2
Total changes in equity from non-owner related transactions attributable to Ansell
Limited shareholders (21.4) (185.4)
Transactions with owners as owners
Contributions of equity 1.0 1.2
Share buy-back (8.2) -
Dividends - 0.1
Total changes in outside equity interest (2.9) (6.1)
---------------------------------------------------------------------------------------------------------
Total equity at the end of the financial year 844.5 876.0
=========================================================================================================
Appendix 4E - Page 7
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
--------------------------------------------------------------------------------
Notes
--------------------------------------------------------------------------------
5. NTA Backing
2003 2002
A$ A$
--------------------------------------------------------------------------------
Net tangible asset backing per ordinary share $2.74 $2.45
6. Earnings per Share (EPS)
2003 2002
A$ A$
--------------------------------------------------------------------------------
Details of basic and diluted EPS reported separately in accordance with
paragraph 9 and 18 of AASB 1027 `Earnings Per Share' are as follows:
Earnings Reconciliation
Net profit/(loss) 52.5 (113.0)
Net profit attributable to outside
equity interests 2.6 2.8
--------------------------------------------------------------------------------
Basic Earnings 49.9 (115.8)
After-tax effect of interest on converting
financial instruments -- --
--------------------------------------------------------------------------------
Diluted earnings 49.9 (115.8)
--------------------------------------------------------------------------------
Weighted average number of ordinary shares
used as the denominator No. Shares No. Shares
Number for basic earnings per share
Ordinary shares 187,136,099 186,935,443
Effect of partly paid Executive Plan Shares 639,423 673,291
--------------------------------------------------------------------------------
Number for diluted earnings per share 187,775,522 187,608,734
--------------------------------------------------------------------------------
Partly paid Executive Shares have been classified as potential ordinary
shares issued for no consideration and have been included in diluted
earnings per share.
7. Loss of Control of Entities having Material Effect
During the year the Date of Voting Consideration Net Tangible Profit / Contribution Contribution
following material Disposal Shares (Cash) Assets (Loss) on to Profit to Profit
businesses were Disposed Disposed Disposal 2003 2002
disposed: % $ million $ million $ million $ million $ million
--------------------------------------------------------------------------------------------------------------------
There were no material disposals of businesses or controlled entities during the year.
8. Dividends
No dividends were paid during the year.
Since the end of the financial year the directors have declared an
unfranked dividend of 11(cent) per share payable on 9th October, 2003.
The financial effect of this dividend has not been brought to account in
the financial statements for the year ended 30 June 2003 and will be
recognised in subsequent financial reports.
9. Investments in Associates
The economic entity has/had an interest (that is material to it) in the
following entities.
Percentage of ownership Contribution to net profit
interest held at end of (loss)
period or date of disposal
Equity accounted associates 2003 2002 2003 2002
and joint venture entities % % A$ A$
---------------------------------------------------------------------------------------------
Associates:
Pacific Marine Batteries Pty. Ltd. 0% 50% 0.3 1.9
Novare Asia Pacific 100% 50% -- --
---------------------------------------------------------------------------------------------
Total 0.3 1.9
Other material interests
---------------------------------------------------------------------------------------------
Associates:
South Pacific Tyres N.Z. Ltd. 50% 50% -- --
Partnerships:
South Pacific Tyres 50% 50% -- --
---------------------------------------------------------------------------------------------
Total 0.3 1.9
---------------------------------------------------------------------------------------------
Appendix 4E - Page 8
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
--------------------------------------------------------------------------------
Notes
--------------------------------------------------------------------------------
10. Notes to the Industry Segments Report
Translation of amounts from Australian dollars into US dollars for
Operating Revenue and Operating Result have been made for the convenience
of the reader at US$ 0.58651 = A$1, being the average of the 10.00am mid
buy/sell rate for Australian dollars as quoted by Reuters on the last
working day of the month for the 13 months period June 2002 to June 2003
(June 2002 US$0.52214 = A$1).
Translation of amounts from Australian dollars into US dollars for Assets
Employed and Liabilities have been made for the convenience of the reader
at the 10.00am mid buy/sell rate for Australian dollars as quoted by
Reuters, on Monday 30 June 2003, at US$ 0.66675 = A$1 (June 2002 US$
0.56605 = A$1).
(a) Operating Revenue
The Operating Revenue of Discontinued Businesses represents the external
sales to the date of disposal and the cash received/receivable from the
sale of such businesses (net of disposal costs).
(b) Unallocated Revenue and Costs
Represents costs of Statutory Head Office, part of the costs of Ansell
Healthcare's Corporate Head Office and non-sales revenue.
(c) Tax
June 2002 includes the write off of tax balances attributable to Australian
operations of A$15.2 million (US$7.9 million) and tax attributable to
Discontinued Businesses.
(d) Cash
Cash also includes Accufix Pacing Leads restricted deposits.
(e) Inter-Segment Transactions
Significant inter-segment sales were made by Asia Pacific - A$258.2 million
(US$151.4 million) (2002 - $304.9 million; US$159.2 million) and America -
A$254.7 million (US$149.4 million) ( 2002 - A$188.3 million; US$98.3
million). Inter-segment sales are predominantly made at the same prices as
sales to major customers. Operating revenue is shown net of inter-segment
values. Accordingly, the Operating revenues shown in each segment reflect
only the external sales made by that segment.
(f) Industry Segments
The consolidated entity comprises the following main business segments:
Occupational Healthcare - manufacture and sale of occupational health
and safety gloves.
Professional Healthcare - manufacuture and sale of medical, surgical
and examination gloves for hand barrier protection and infection
control.
Consumer Healthcare - manufacture and sale of condoms, household
gloves and other personal products.
Discontinued Businesses - represents former Industry Segment
businesses which have been sold or abandoned.
(g) Regions
The allocation of Operating Revenue and Operating Results reflect the
geographical regions in which the products are sold to externa customers.
Assets Employed are allocated to the geographical regions in which the
assets are located
Asia Pacific - manufacturing facilities in 4 countries and sales.
America - manufacturing facilities in USA and Mexico and significant
sales activity
Europe - principally a sales region with one manufacturing facility in
the UK
2003 2002 2003 2002
A$m A$m US$m US$m
(h) Segment Capital Expenditure
Occupational Healthcare 3.2 6.7 1.9 3.5
Professional Healthcare 8.6 12.7 5.0 6.6
Consumer Healthcare 3.4 1.5 2.0 0.8
Discontinued Businesses -- 12.0 -- 6.3
(i) Region Capital Expenditure
Asia Pacific 10.1 13.5 5.9 7.0
America 4.2 5.3 2.5 2.8
Europe 0.9 2.0 0.5 1.0
(j) Segment Depreciation
Occupational Healthcare 11.0 15.7 6.5 8.2
Professional Healthcare 15.5 18.8 9.1 9.8
Consumer Healthcare 4.8 5.6 2.8 2.9
Discontinued Businesses -- 11.1 -- 5.8
(k) Segment Other Non Cash Expenses (excluding Provision for
Rationalisationand Write-down of Assets separately disclosed)
Occupational Healthcare 8.3 8.9 4.9 4.6
Professional Healthcare 0.7 1.9 0.4 1.0
Consumer Healthcare 2.9 5.1 1.7 2.7
Discontinued Businesses -- 14.8 -- 7.7
Appendix 4E - Page 9
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
--------------------------------------------------------------------------------
Notes
--------------------------------------------------------------------------------
11. Contingent Liabilities
Indemnities and Guarantees
Ansell Limited (`the Company') has previously entered into Deeds of
Indemnity with each of the Directors of the Company and certain officers of
controlled entities, in relation to liabilities that they may incur (other
than to Group companies) as Directors of the Company and Directors of
certain controlled entities respectively, to the extent permitted by law
and the Company's Constitution.
The Company has also guaranteed the performance of certain wholly-owned
controlled entities which have negative shareholders' funds. At this time,
no liabilities the subject of any such indemnity or guarantee have been
identified and, accordingly, it is not possible to quantify any financial
obligation of the consolidated entity under these indemnities and of the
Company pursuant to its guarantee.
Accufix Litigation
Claims have been made against certain Group Companies in a number of
jurisdictions relating to the Accufix pacing leads manufactured by Accufix
Research Institute, Inc. (formerly TPLC) (`ARI').
As at 30 June 2003, all lawsuits have been concluded with the exception of
three lawsuits which remain outstanding in France in relation to the
Accufix pacing leads: one involving 3 individual claimants, and two
recently initiated actions one of which involves 8 claimants, the other
involving only 1 claimant.
In addition, claims may still be made by any of the 150 persons who opted
out of the class settlement in the United States.
As at 30 June 2003, the balance of the provisions made for settlements
(approximately A$14.5 million) is considered adequate to address any
remaining liability of members of the Ansell Group to claims made by
individuals with respect to the manufacture of the Accufix pacing leads.
Latex Allergy Litigation
Proceedings have been brought against various Group Companies (the "Ansell
Defendants") in the United States and Australia in relation to their
exposure to natural rubber latex gloves.
As at 30 June 2003, there were approximately 313 such cases pending against
one or more of the Ansell Defendants. Ansell Limited is no longer a
defendant in any cases in the United States.
The Australian Competition and Consumer Commission has instituted legal
action against the Company alleging breaches of the Trade Practices Act
relating to the labelling and packaging of natural rubber latex gloves. The
Company is vigorously defending this litigation.
Business and Asset Sales
The Company and various Group Companies have, as part of the Group's asset
and business sale program, provided warranties, indemnities and other
undertakings and, in some instances, the Company has guaranteed the
warranties, indemnities and other obligations of various Group Companies,
to the purchasers of Group assets and businesses. At this time, it is not
possible to quantify the potential financial impact of those warranties,
indemnities, undertakings or guarantees upon the economic entity. From time
to time, the Company has received notices from purchasers of its businesses
pursuant to the relevant sale agreements.
Simplot Australia Pty Ltd has instituted proceedings against the Company
and other Group Companies in the Supreme Court of Victoria in relation to
the sale of the Edgell-Bird's Eye and Herbert Adams Bakeries businesses.
The matter is scheduled to be heard in March 2004. The Company denies all
of the allegations made against it and is continuing to strenuously defend
the claims.
No other formal proceedings have been initiated and, accordingly, it is not
possible at this time to quantify the potential financial impact on the
Group.
12. Contingent Assets
Exide Corporation
US legal proceedings are continuing against entities in the Exide Group
that have not filed for bankruptcy (`Non-Bankrupt Entities'), to recover
amounts due to the Ansell Group in connection with the sale of the GNB
business. These proceedings have been joined with the Exide Technologies'
bankruptcy case. The Ansell Group has opposed this joinder, and is seeking
a motion to have the proceedings remitted to the Illinios State Court. The
Ansell Group will continue to aggressively pursue recovery of the amounts
owed by the Non-Bankrupt Entities, including the separation of these claims
from Exide Technologies' bankruptcy case.
13. Environmental Matters
The Company and various Group Companies as the occupiers of property
receive, from time to time, notices from relevant authorities pursuant to
various environmental legislation. On receiving such notices, the Company
evaluates potential remediation options and the associated costs. At this
time, the Company does not believe that the potential financial impact of
such remediation upon the economic entity is material.
In the ordinary course of business, the Ansell Group has maintained
comprehensive general liability insurance policies covering its operations
and assets. Generally such policies exclude coverage for most environmental
liabilities.
Appendix 4E - Page 10
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
Commentary on Results
30th June, 2002 30th June, 2003
--------------- ---------------
US$m A$m US$m A$m
---- --- ---- ---
Operating Revenue - Healthcare Segment * *738.5* 1,414.2 758.7 1,293.6
Operating Profit (Healthcare Segment EBITA) 84.7 162.3 93.6 159.6
Profit Attributable (60.5) (115.8) **29.3 49.9
Total Funds Employed - Ansell Ltd. 703.0 1,241.8 687.2 1,030.7
Assets Employed - Healthcare Segment 521.4 921.1 498.7 748.1
Earnings Per Share (32.3c) (61.9c) **15.7c 26.7c
* Excludes Discontinued Businesses. Including Discontinued Businesses, 2002
revenue was US$1,160.7 million (A$2,222.8 million).
** Excluding Ambri write down, Profit Attributable is US$32.9 million (A$56.0
million) and Earnings Per Share is US 17.6c (A 30.0c)
.. Profit Attributable to Shareholders of US$29.3 million (A$49.9), up
strongly from the previous year's loss of US$60.5 million (A$115.8
million),
.. Earnings Per Share (EPS) of US15.7c (A26.7c), up on the previous year's
loss of US32.3c (A61.9c),
.. Reinstatement of a dividend payment, set at A11c per share (unfranked),
Operating results were sound in difficult trading conditions. The Company's
commitment to deliver double-digit growth in US$ Healthcare segment EBITA was
achieved, with growth from US$84.7 million (A$162.3 million) to US$93.6 million
(A$159.6 million), a 10.5% increase.
This result was achieved on 2.7% growth in continuing business revenues to
US$758.7 million (A$1,293.6 million), up from last year's US$738.5 million
(A$1,414.2 million). In contrast with recent years, the stronger Euro and A$
significantly assisted Ansell Healthcare's US$ operating results.
The Occupational Division, which accounted for almost half of FY03's revenues,
recorded outstanding results during a period of slower economic activity,
reflecting the strength of the Ansell business and brands.
The Consumer Division continued to show solid margin improvement, benefiting
from manufacturing cost reductions, price increases in condoms and Operation
Full Potential initiatives
The Professional Division experienced an interruption to supply of surgeons'
gloves, as well as price reductions in examination gloves in the first half of
the year. This Division's lower profit reflects the impact of these first half
factors, as well as non-recurring airfreight for restocking the market in the
second half.
Appendix 4E - Page 11
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
Occupational Healthcare
30th June, 2002 30th June, 2003
--------------- ---------------
US$m A$m US$m A$m
--------------- ---------------
Operating Revenue 334.3 640.2 366.5 624.9
Operating Profit (Segment EBITA) 19.3 37.0 36.9 62.9
Assets Employed 212.8 376.0 200.6 300.9
EBITA Margin 5.8% 10.1%
-------------------------------------------------------------------------------
The Occupational Division accounted for 48% of Ansell's F'03 Sales and 39% of
Healthcare segment EBITA.
Occupational Sales increased by 10%, with exceptionally strong performances in
Asia Pacific and Europe. In the America's sales were flat due to a weaker US
manufacturing environment, and to some knitted product supply shortfalls during
the transfer of production from the US to Mexico.
The division's outstanding 91% increase in EBITA was driven by:
. world wide growth in volume, market share and margin of our flagship
HyFlex/R/ range of ergonomic gloves,
. continuing benefits from the ongoing manufacturing rationalisation and
restructuring program,
. an increased proportion of newer products.
The strategy of diversifying Occupational's customer base in order to reduce
exposure to economic cycles continued. Significant progress has been made in
expanding sales to the meat and food processing industries, thereby reducing our
dependence on the automotive and general manufacturing sectors.
The Occupational Value Proposition (OVP) concept of hand injury reduction
continues to run smoothly at Ford USA, and is being progressively introduced to
a number of other end users and distributors who have demonstrated interest in
this novel approach. Management expects the OVP initiative, which is a key plank
of Operation Full Potential, to develop steadily over time. OVP is a
"game-changing" concept that requires a change in the traditional way many
customers manage hand injury costs. Trials are currently underway at a number of
major potential customers' plants.
Professional Healthcare
30th June, 2002 30th June, 2003
----------------- -----------------
US$m A$m US$m A$m
----------------- -----------------
Operating Revenue 285.6 546.9 265.5 452.6
Operating Profit (Segment EBITA) 48.4 92.7 31.6 53.9
Assets Employed 228.9 404.3 221.0 331.5
EBITA Margin 17.0% 11.9%
----------------------------------------------------------------------------
The Professional Division accounted for 35% of Ansell's F'03 Sales and 34% of
Healthcare segment EBITA.
Professional Sales declined by 7%, and EBITA fell by 35%. Outstanding
performances in Asia Pacific and Europe were offset by first half surgeons'
gloves supply interruption and examination glove price reductions, especially in
the USA. Operating expenses were higher in the second half due to non-recurring
airfreight costs in resupplying the surgeons' gloves market, and to higher latex
raw material costs.
Surgeons' gloves supply improved markedly in the second half, and Distributor
inventories are now at normal levels. The US Sales and Marketing team is focused
on a number of initiatives designed to the regain the US powder-free surgeons'
gloves market share lost during the supply disruption. Importantly, no
significant price erosion has been experienced in PF surgeons' gloves. At the
same time, continuing growth of Ansell's powder-free surgeons' gloves was
achieved in Europe, with branded sales up 19%, and in Asia Pacific (up 15%).
In examination gloves, global oversupply led to significant price reductions
earlier in the year. A number of competitors reported financial difficulties as
the combined result of increases in the cost of latex raw material, and the
first half selling price reductions. In recent months, prices of higher end
examination gloves have stabilised, and prices at the low end of the market have
begun to rise.
Appendix 4E - Page 12
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
Consumer Healthcare
30th June, 2002 30th June, 2003
-----------------------------------------
US$m A$m US$m A$m
--------------------------------------------------------------------------------
Operating Revenue 118.6 227.1 126.7 216.1
Operating Profit (Segment EBITA) 17.0 32.6 25.1 42.8
Assets Employed 79.7 140.8 77.1 115.7
EBITA Margin 14.3% 19.8%
--------------------------------------------------------------------------------
The Consumer Division accounted for 17% of Ansell's F'03 Sales and 27% of
Healthcare segment EBITA.
Consumer sales grew by 7%, including growth from public aid and assistance
agencies in the fight against HIV/AIDS. Ansell's condom business continues to
build on a reputation for high quality from our low cost Asian plants. The
European Region saw gains in market share in the UK and France, based
significantly on the new "Xtra PleasureTM" condom. This success was replicated
in the Asia Pacific Region, where sales grew 14%, with strong improvement in New
Zealand, Malaysia and Thailand. In the Americas Region, USA total branded retail
condom market share held steady at 23% in volume and 20% in value, while the
important Public Sector segment remained strong.
In retail household gloves (HHG), 9% volume growth was achieved in Europe, while
volumes declined in the USA, as the Company withdrew from an unsatisfactory
customer relationship in preparation for a relaunch in 2004. A new range of
foamlined HHG continued to gain market share in Europe and Australia, and
expansion of manufacturing capacity for this unique product technology is
planned in FY04.
Operation Full Potential (OFP)
June 2003 marked the completion of the first phase of the three-year OFP
program, which is designed to lift Ansell's US$ EBITA by 50% from the 2001 level
by the end of 2005.
The global launch of OFP was completed, as were the initiatives that were
planned as part of Waves I and II of the program. In the coming year, OFP will
concentrate on completing the implementation of growth initiatives from Wave II
in the Professional and Occupational Divisions, and on the launch of Wave III of
the program.
During this second year of the program, the activities and capabilities
developed within OFP will be fully integrated into the business Divisions,
thereby reinforcing the new "performance culture" into the core of Ansell's
business.
Non-Core Investments and Discontinued Businesses
During the first half, two investments were sold, Pacific Marine Batteries and
BT Equipment, with resultant cash generation of US$9.4 million (A$16.7 million).
A premium to book value was received. The Company has also made significant
progress in resolving various remaining "legacy issues" from discontinued
businesses.
South Pacific Tyres (SPT)
Ansell retains its 50% investment in the South Pacific Tyres partnership with
the Goodyear Tire and Rubber Company. The joint venture is accounted for as an
investment, with operating results excluded from Ansell's results.
The Directors at this time believe that SPT's performance and 3 year EBIT
projections continue to justify retention of the asset at full value on Ansell's
books.
Ambri
In reviewing the carrying value of assets, the Company has found it necessary to
write down the value of its non-core residual investment in the listed company,
Ambri Limited. The book value was the original float price of A$1.11 per share,
while, at June 30, 2003, the market price was A$0.375. A non-recurring, non-cash
write off of US$3.6 million (A$6.1 million) was incurred before and after tax on
the Group's 8.3 million shares, to bring the written down book value to US$2.1
million (A$3.1 million) into line with the market price.
Appendix 4E - Page 13
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
Corporate Costs
Outstanding progress was made during the year in reducing the Corporate Office
costs to US$6.7 million (A$11.5 million), down 47% on the previous year, on a
comparable basis. Staff numbers are now at appropriate levels and Regional
Ansell staff in Australia have been relocated to the Melbourne Corporate Office
for greater efficiency. OFP costs of US$6.4 million (A$10.9 million), last year
US$1.9 million (A$3.7 million), were incurred as a corporate expense.
Finance
The Company's financial structure remains robust. Cash flow is strong, net
interest bearing debt (NIBD) was reduced by US$82.9 million, and gearing (NIBD
to NIBD plus equity) has further improved to 18.1%, down from 29.4% last year.
Interest cover was 6.4X, significantly better than last year's 4.5X.
This strong cash flow came from improved profits (EBITDA) of US$98.9 million
(A$168.6 million), up from last year's US$92.1 million (A$176.4 million), and
reductions in working capital, tax, net interest paid and capital expenditures.
Significantly, the Company has converted over 80% of Operating EBITDA to cash.
Liquidity continues to be a strength, with available cash on deposit of US$190.2
million (A$285.4 million), and an unused bank facility of US$100 million (A$150
million).
The share buy-back element of the balanced capital management strategy has
progressed well and, at June 30 almost 1.5 million shares had been repurchased
at an average price of approximately A$5.80.
Dividend
At the end of the first half, Directors announced a share buy-back, as part of
the balanced capital management strategy, as well as a review of dividend policy
after the full year results were known. Based on strong and sustainable
operating profit improvements, cash generation and low gearing, the Board has
announced an unfranked dividend of A11.0c per share, to be paid on 9th October,
2003.
Appendix 4E - Page 14
Ansell Limited and its Controlled Entities
Appendix 4E
Preliminary Final Report for the year ended 30 June 2003
--------------------------------------------------------------------------------
Compliance Statement
--------------------------------------------------------------------------------
1 This report has been prepared in accordance with AASB Standards, other AASB
authoritative pronouncements and Urgent Issues Group Consensus Views or
other standards acceptable to ASX.
2 This report, and the accounts upon which the report is based, use the same
accounting policies.
3 This report does give a true and fair view of the matters disclosed.
4 This report is based on accounts which are in the process of being audited.
5 The entity has a formally constituted audit committee.
Signed: /s/ R. J. Bartlett Date: 14th August, 2003
------------------------------
Company Secretary
Name: R J Bartlett
Appendix 4E - Page 15
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: GROUP TREASURER
Date: August 14, 2003