Appendix 4D. Condensed consolidated interim financial report For the six months ended 31 December 2012 Ansell Limited and Subsidiaries

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1 Condensed consolidated interim financial report For the six months ended 31 December 2012 Ansell Limited and Subsidiaries ACN This interim financial report is a general purpose financial report prepared in accordance with the ASX listing rules and Accounting Standard AASB 134: Interim Financial Reporting. It should be read in conjunction with the annual financial report for the year ended 30 June 2012 and any public announcements to the market made by the entity during the period. The financial statements in this report are 'condensed financial statements' as defined in AASB 134: Interim Financial Reporting. This report does not include all the notes of the type normally included in an annual financial report. The Company reports in Australian dollars. The United States dollar (US dollar) is the predominant global currency of its business transactions and the currency in which the business is managed. As such the Commentary on Results is in US dollars unless otherwise specified. In addition Notes 1 and 11 to the condensed financial statements contain information in US dollars. This US dollar information is a convenience translation of the IFRS Australian dollar financial information. - Page 1

2 Ansell Limited and Subsidiaries Half year report for the six months ended 31 December 2012 Condensed consolidated interim financial report For the six months ended 31 December 2012 Ansell Limited and Subsidiaries ACN Results for Announcement to the Market % A$m Revenue from ordinary activities up/(down) 5.1% to Profit from ordinary activities after tax up/(down) (15.3)% to 55.0 attributable to members Net profit for the period attributable to members up/(down) (15.3)% to 55.0 Dividends (distributions) Amount per share Franked amount per share Dividend 16.0 Nil Record date for determining entitlements to the dividend 27 February 2013 Highlights Revenue from the sale of goods of A$624.2 million compared to last year's A$594.1 million. Net profit attributable to members A$55.0 million compared to last year's A$64.9 million. Basic earnings per share of 42.0 compared to last year's An interim dividend of 16.0 per share unfranked has been declared payable on 20 March Page 2

3 Ansell Limited and Subsidiaries Half Year Report for the six months ended 31 December 2012 Commentary on Results Business Review Profit Attributable to Shareholders in the first half of F 13 of US$57.1m was down 14% on the F 12 s US$66.6m. EPS in Ansell s operating currency, the US dollar, fell 14% to US43.7. However, given Ansell s strong Balance Sheet, free cash flow, and expected second half improvement, the Board declared an interim dividend of A16 a share unfranked, payable on 20 March 2013, and announced a buyback of 2 to 3 million shares. Results Summary: Statutory Results Australian Dollars F 12 F 13 H1 H1 A$M A$M % Results in Operating Currency US Dollars F 12 F 13 H1 H1 US$M US$M % Sales EBIT (9) (8) Profit Attributable (PA) (15) (14) Earnings Per Share (EPS) (15) (14) Dividend Ansell s results in AUD show lower year on year growth than the translated USD results due to the AUD s ~ 1% appreciation vs. the USD. Page 3

4 Ansell Limited and Subsidiaries Half Year Report for the six months ended 31 December 2012 Medical GBU A$M US$M F 12 H1 F 13 H1 F 12 H1 F 13 H1 Sales Segment EBIT EBIT/Sales 9.6% 10.4% 9.5% 10.4% The Medical GBU accounts for 25% of total Revenue and 24% of total Segment EBIT. Surgical glove sales grew ~4%, with range extensions continuing and polyisoprene and neoprene synthetics selling well. This should continue in H2, as Ansell s new Gammex SensoPrene glove (which was launched in NA in late December) gains traction. The Sandel range of operating theatre safety products is also growing and will be expanded as Ansell integrates PSP. Exam sales fell ~21% due to reduced NA and EMEA volumes and to price erosion (in line with lower raw material costs). Segment EBIT grew by ~6% due to product mix, operational efficiencies and SG&A management. Synthetic surgical manufacturing capacity has been increased to support growth and this will help reduce production costs in the future. Industrial GBU A$M US$M F 12 H1 F 13 H1 F 12 H1 F 13 H1 Sales Segment EBIT EBIT/Sales 16.3% 14.4% 16.3% 14.4% The Industrial GBU accounts for 41% of total Revenue and 52% of total Segment EBIT. Sales were up ~9% including Comasec and up 2% excluding Comasec, while segment EBIT was down as strong margins (from better product mix and lower costs) were offset by higher investments in Regional Sales and in R&D. Organic sales growth was negatively impacted by FX and distributor destocking in EMEA and NA. Ansell regained its positions with North American Tier 1 distributors (after F 12 s Fusion issues), but faced a weak European economy (though Russia, Germany, and Benelux grew) and a slowdown in China. The Comasec acquisition strengthened Ansell s leadership position in EMEA and early signs are positive. The new product pipeline is strong with a number of H1 releases and more planned for H2 across our 3 leading brands HyFlex, AlphaTec and TouchNTuff (which now has new polyisoprene and sterile ranges for life science applications). Page 4

5 Ansell Limited and Subsidiaries Half Year Report for the six months ended 31 December 2012 Specialty Markets GBU A$M US$M F 12 H1 F 13 H1 F 12 H1 F 13 H1 Sales Segment EBIT EBIT/Sales 5.5% 2.5% 5.5% 2.5% The Specialty Markets GBU accounts for 16% of total Revenue and 4% of total Segment EBIT. H1 s ~19% sales increase came from Ansell Protective Solutions (APS) and Comasec. EBIT declined as investments in R&D, selling and marketing offset the benefits of a mix driven gross margin expansion. Organic sales were impacted by reduced or delayed military spending by passing through lower NRL costs in the consumer segment (as per contract terms). However, H1 saw a number of new products launched across verticals with more planned for H2. APS (purchased in May 2012) is well along the integration path, and trading in line with the business case. Sexual Wellness GBU A$M US$M F 12 H1 F 13 H1 F 12 H1 F 13 H1 Sales Segment EBIT EBIT/Sales 17.2% 12.6% 17.2% 12.6% Sexual Wellness accounts for 18% of total Revenue and 20% of total Segment EBIT. Sales increased ~5% for the half, (~10% but for FX). However the major advertising and promotion program for the SKYN brand and the US packing facility relocation impacted Segment EBIT. These significant investments in SKYN brand advertising and promotion programs greatly raised awareness of the product in targeted markets, and resulted in very strong sales growth. Private label and government tender sales were lower while amele new product sales and the a:muse line of products in the US helped offset this. Page 5

6 Ansell Limited and Subsidiaries Half Year Report for the six months ended 31 December 2012 Buyback: Ansell has a solid balance sheet, generates strong free cash flow, and has completed 5 acquisitions since May 2012 that must be fully integrated. A new onmarket buyback of between 2 to 3 million shares over the next 12 months was therefore announced today. Ansell remains committed to growth through acquisitions, but also believes that a modest buyback is appropriate. EPS accretion in F 13 from the buyback is expected to be insignificant. Finance: Sales and EBIT were both negatively impacted by FX rates in H1, with the half on half translation impact on sales being approximately $18m. Free cash flow was a solid US$48.1m up from the previous year s low $6.3m. The major contributor to the year-on-year improvement was Working Capital. The major cash usage in the half came from acquisitions, Comasec ~$132m and Preferred Surgical Products ~$4m. Net debt rose by $146.1m. Working capital, after adjustment for acquisitions, was up marginally on June 2012 but was substantially better vs. December 2011, which was adversely affected by Fusion. Working Capital days were up slightly, due to Comasec. Interest cover is a healthy 18.9x (F 12 H1 35.0x), Net Debt to EBITDA is 1.2x (F 12 H1 0.3x) and gearing (NIBD / NIBD + Equity) was 20.6% (F 12 H1 13.5%). After Hércules, gearing increased to ~27%. Cash at 31 December was US$338m, of which $77m was used for the Hércules acquisition on 2 nd January New bank facilities were also established during the half, and Ansell has $120m of unused facilities available after the Hercules acquisition. Liquidity therefore remains quite strong. The effective book tax rate of 8.8%, up from F 12 s 6.2%, reflects lower DTA/NOTI adjustments of $5.8m in F 13 vs. $8.0m in F 12. Dividends: Ansell has announced an interim dividend of A16 (vs. F 12 s interim dividend of A15.0 ) per share unfranked, an increase of 7% with a record date of 27 February, 2013 and a payment date of 20 March, For non-resident shareholders, the dividend will not attract withholding tax as it is sourced entirely from the Company s Conduit Foreign Income Account. Page 6

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10 Condensed Consolidated Interim Income Statement Ansell Limited and Subsidiaries Half year report for the six months ended 31 December 2012 of Ansell Limited and Subsidiaries for the six months ended 31 December Note A$m A$m Revenue Total revenue Expenses Cost of goods sold (368.7) (348.4) Distribution (27.9) (28.7) Selling and administration (161.4) (144.3) Total expenses, excluding financing costs (558.0) (521.4) Financing costs (7.8) (5.3) Profit before income tax Income tax expense (5.5) (4.4) Net profit Non-controlling interests in net profit (1.6) (1.7) Net profit attributable to Ansell Limited shareholders Earnings per share is based on net profit attributable to Ansell Limited shareholders Basic earnings per share Diluted earnings per share cents cents The Company reports in Australian dollars. The United States dollar (US dollar) is the predominant global currency of its business transactions and the currency in which the business is managed. Refer to Notes 1 and 11 to the condensed financial statements which provide financial information in US dollars. - Page 10

11 Ansell Limited and Subsidiaries Half year report for the six months ended 31 December 2012 Condensed Consolidated Interim Statement of Comprehensive Income of Ansell Limited and Subsidiaries for the six months ended 31 December A$m A$m Profit for the period Other comprehensive income/(expense) Net exchange difference on translation of financial statements of foreign operations (2.2) (1.2) Change in fair value of financial assets through other comprehensive income (0.7) 0.1 Net movement in effective hedges for period 3.8 (5.0) Other comprehensive income/(expense) for the period, net of income tax 0.9 (6.1) Total comprehensive income for the period Attributable to: Members of Ansell Limited Non-controlling interests Total comprehensive income for the period Net exchange differences on the translation of financial statements of foreign operations and the net movement in effective hedges for the period may subsequently be reclassified to the Income Statement. - Page 11

12 Condensed Consolidated Interim Balance Sheet of Ansell Limited and Subsidiaries as at 31 December 2012 Ansell Limited and Subsidiaries Half year report for the six months ended 31 December December 30 June A$m A$m Current Assets Cash on hand Cash at bank and on deposit Cash - restricted deposits Trade and other receivables Inventories Other Total Current Assets Non-Current Assets Trade and other receivables Investments Property, plant and equipment Intangible assets Deferred tax assets Other Total Non-Current Assets Total Assets 1, ,348.3 Current Liabilities Trade and other payables Interest-bearing liabilities Provisions Current tax liabilities Total Current Liabilities Non-Current Liabilities Trade and other payables Interest-bearing liabilities Provisions Retirement benefit obligations Deferred tax liabilities Other Total Non-Current Liabilities Total Liabilities Net Assets Equity Issued capital Reserves (107.5) (109.0) Accumulated losses (18.5) (46.5) Total Equity Attributable to Ansell Limited Shareholders Non-controlling interests Total Equity The Company reports in Australian dollars. The United States dollar (US dollar) is the predominant global currency of its business transactions and the currency in which the business is managed. Refer to Notes 1 and 11 to the condensed financial statements which provide financial information in US dollars. - Page 12

13 Ansell Limited and Subsidiaries Half year report for the six months ended 31 December 2012 Condensed Consolidated Interim Statement of Changes in Equity of Ansell Limited and Subsidiaries for the six months ended 31 December A$m A$m Issued Capital Balance at 1 July Exercise of options Buy-back of shares - (32.6) Total Issued Capital at 31 December Reserves Share-Based Payments Reserve Balance at 1 July Charge to the income statement for the period Balance at 31 December Hedging Reserve Balance at 1 July (10.6) (8.3) Net movement in effective hedges for the period 3.8 (5.0) Balance at 31 December (6.8) (13.3) General Reserve Balance at 1 July Transfer from accumulated losses Balance at 31 December Foreign Currency Translation Reserve Balance at 1 July (133.2) (131.1) Currency translation differences arising during the period (2.3) (0.9) Balance at 31 December (135.5) (132.0) Transactions with Non-Controlling Interests Balance at 1 July (10.7) (10.7) Transactions with non-controlling interests in subsidiaries - - Balance at 31 December (10.7) (10.7) Fair Value Reserve Balance at 1 July (0.6) - Change in fair value of available-for-sale financial assets (0.7) 0.1 Balance at 31 December (1.3) 0.1 Total Reserves at 31 December (107.5) (110.5) Accumulated Losses Balance at 1 July (46.5) (125.2) Transfer to reserves (0.1) - Net profit attributable to Ansell Limited shareholders Dividends paid (26.9) (25.3) Accumulated Losses at 31 December (18.5) (85.6) Total Equity at 31 December attributable to Ansell Limited shareholders Non-controlling interests Issued Capital Reserves (5.5) (5.4) Retained Profits Total Non-controlling interests Total Equity Page 13

14 Condensed Consolidated Interim Cash Flow Statement Ansell Limited and Subsidiaries Half year report for the six months ended 31 December 2012 of Ansell Limited and Subsidiaries for the six months ended 31 December 2012 Cash Flows Related to Operating Activities A$m A$m Receipts from customers Payments to suppliers and employees (591.2) (584.0) Net receipts from customers 51.4 (8.1) Income taxes paid (6.6) (8.6) Net Cash Provided by/(used in) Operating Activities 44.8 (16.7) Cash Flows Related to Investing Activities Payments for businesses, net of cash acquired (132.1) (13.0) Purchase of property, plant and equipment and capitalised software costs (18.5) (20.9) Proceeds from sale of plant and equipment Purchase of other investments (1.8) (4.9) Net Cash Used in Investing Activities (151.7) (38.0) Cash Flows Related to Financing Activities Proceeds from borrowings Repayments of borrowings (36.9) (41.4) Net proceeds from borrowings Proceeds from issues of shares Payments for share buy-back - (32.6) Dividends paid - Ansell Limited shareholders (26.9) (25.3) Dividends paid - Non-controlling interests (2.2) (1.7) Interest received Interest and financing costs paid (6.5) (5.6) Net Cash Provided by Financing Activities Net increase/(decrease) in cash and cash equivalents 81.4 (39.1) Cash and cash equivalents at the beginning of the period Effects of exchange rate changes on the balances of cash and cash equivalents held in foreign currencies at the beginning of the period Cash and Cash Equivalents at the end of the period The Company reports in Australian dollars. The United States dollar (US dollar) is the predominant global currency of its business transactions and the currency in which the business is managed. Refer to Notes 1 and 11 to the condensed financial statements which provide financial information in US dollars. - Page 14

15 Notes to the condensed consolidated interim financial statements 1. Operating Segments Ansell Limited and Subsidiaries Half year report for the six months ended 31 December 2012 The Group comprises the following main operating segments: Industrial GBU: hand and upper arm and body protective solutions for the industrial market Medical GBU : surgical and examination gloves for healthcare professionals and patients Sexual Wellness GBU : condoms, lubricants and devices Specialty Markets GBU : protective gloves and clothing for markets outside of traditional manufacturing environments Operating Revenue Operating Result December December December December A$m A$m US$m (a) US$m (a) A$m A$m US$m (a) US$m (a) Operating Segments Industrial Medical Sexual Wellness Specialty Markets Total operating segments Corporate costs (3.5) (4.7) (3.6) (4.9) Earnings before interest and tax (EBIT) Interest expense and other financing costs (7.8) (5.3) (8.1) (5.5) Interest revenue Profit before income tax Income tax (5.5) (4.4) (5.7) (4.5) Profit for the period Non-controlling interests (1.6) (1.7) (1.7) (1.8) Total consolidated Regional information Asia Pacific Europe, Middle East and Africa Latin America & Caribbean North America Total regional information Assets Employed Liabilities December June December June December June December June A$m A$m US$m (a) US$m (a) A$m A$m US$m (a) US$m (a) Operating segments Industrial Medical Sexual Wellness Specialty Markets Total operating segments 1, , Corporate assets/liabilities Cash Total consolidated 1, , , , Regional information Asia Pacific Europe, Middle East and Africa Latin America & Caribbean North America Goodwill and brand names Total regional information 1, , (a) Refer to the Notes to the Operating Segments. - Page 15

16 Ansell Limited and Subsidiaries Half year report for the six months ended 31 December 2012 Notes to the condensed consolidated interim financial statements 1. Operating Segments (continued) (a) For the convenience of the reader, monthly translations of amounts from Australian dollars into US dollars for Operating Revenue and Operating Result have been made at the average of the am mid buy/sell rate for Australian dollars as quoted by Reuters for each working day of each month for the period July 2012 to December Translation of amounts from Australian dollars into US dollars for Assets Employed and Liabilities have been made at the am mid buy/sell rate for Australian dollars as quoted by Reuters on Monday 31 December 2012 at US$ = A$1 (30 June 2012 US$ = A$1). (b) Corporate Costs Represents costs of Statutory Head Office and part of the costs of Ansell Healthcare's Corporate Head Office. (c) Income Tax Tax expense for the six months to 31 December 2012 has been reduced by the recognition of a deferred tax asset in respect of previously unbooked revenue losses of A$3.7 million (US$3.9 million ) ( $2.5 million; US$2.5 million). Tax expense for the six months to 31 December 2011 was also reduced by the partial reversal of a valuation allowance against the deferred tax asset recognised in respect of US tax losses amounting to $5.4 million (US$5.5 million). (d) Inter-Segment Transactions There were no significant inter-operating segment sales. Inter-operating segment sales are predominantly made at the same prices as sales to major customers. Accordingly, the Operating revenues shown in each segment reflect only the external sales made by that segment. (e) Regions The allocation of Operating Revenue and Operating Results reflect the geographical regions in which the products are sold to external customers. Assets Employed are allocated to the geographical regions in which the assets are located. Asia Pacific - manufacturing facilities in Malaysia, Thailand, India and Sri Lanka and sales activity. Europe, Middle East and Africa - manufacturing facilities in Lithuania and Portugal and sales activity. Latin America and Caribbean - manufacturing facilities in Brazil and sales activity. North America - manufacturing facilities in USA and Mexico and sales activity. 2. Total Revenue 31 December December 2011 A$m A$m Revenue from the sale of goods Interest received or due and receivable Total Revenue Issued Capital 31 December December 2011 Movement in shares on issue No. of Shares Fully Paid Ordinary Shares Balance at 1 July 130,656, ,011,550 Exercise of options 111,984 97,812 Buy-back/cancellation of shares - (2,452,694) Balance at 31 December 130,768, ,656,668 Executive Share Plan Shares Balance at 1 July 67,900 67,900 Conversion of Executive Share Plan shares to fully paid - - Balance at 31 December 67,900 67,900 - Page 16

17 Ansell Limited and Subsidiaries Half year report for the six months ended 31 December 2012 Notes to the condensed consolidated interim financial statements 4. Dividends Paid and Declared Dividends Paid 31 December December 2011 A$m A$m A final dividend of 20.5 cents per share unfranked for the year ended 30 June 2012 (June cents unfranked) was paid on 21 September 2012 ( September 2011) Dividends Declared An interim dividend for the year ended 30 June 2013 of 16.0 per share unfranked, has been declared and is payable on 20 March The balance of available franking credits in the franking account as at 31 December 2012 was Nil ( Nil). 5. Earnings per Share (EPS) 31 December December 2011 A$m A$m Earnings Reconciliation Net profit Less Net profit attributable to non-controlling interests Earnings used in calculation of Basic and Diluted EPS Weighted average number of ordinary shares used as the denominator No. Shares No. Shares Number of ordinary shares for basic earnings per share 130,725, ,677,404 Effect of partly paid Executive Plan shares, Options and Performance Share R 612, ,791 Number of ordinary shares for diluted earnings per share 131,337, ,892,195 Partly paid Executive Plan shares, Options and Performance Share Rights have been included in diluted earnings per share in accordance with applicable Australian accounting standards. 6. Net Tangible Asset backing 31 December December 2011 A$m A$m Shareholders' Equity attributable to Ansell Limited shareholders Less Intangible Assets Net Tangible Assets No. Shares No. Shares Total fully paid ordinary shares on issue (millions) Net tangible asset backing per ordinary share $2.09 $ Page 17

18 Ansell Limited and Subsidiaries Half year report for the six months ended 31 December 2012 Notes to the condensed consolidated interim financial statements 7. Acquisition of Subsidiaries and Businesses Effective 1 October 2012 Ansell acquired 100% of the issued capital of Comasec SAS and it subsidiaries (Comasec). Comasec is a significant participant in the European Personal Protective Equipment Glove market and has manufacturing operations in Portugal and Malaysia and a presence in North America. It specialises in gloves for chemical protection, food handling, cut protection, mechanical protection, dry box and thermal protection. Related acquisition costs of $0.4 million have been expensed during the six months to 31 December The following fair values of the identifiable assets and liabilities of Comasec as at acquisition have been determined on a provisional basis: A$m Property, plant and equipment 19.3 Intangibles 10.3 Inventories 28.1 Trade and other receivables 31.2 Other assets 0.5 Trade and other payables (18.7) Provision for employee entitlements (4.1) Net identifiable assets acquired 66.6 Goodwill on acquisition 61.7 Consideration paid Ansell also acquired Guangzhou Kangwei Trading Co Ltd (a China distributor of Sexual Wellness products) effective 1 November 2012 and substantially all of the assets of Preferred Surgical Products, L.L.C. (a US product and technology company with innovative solutions in infection prevention) effective 31 December The total cost of these acquisitions was $3.8 million. 8. Performance Share Rights As announced at the Annual General Meeting in November 2012, Ansell Limited has incorporated the granting of Performance Share Rights (PSRs) to the Managing Director and certain senior executives in its Long Term Incentive Plan. The first PSRs were granted in the 2013 financial year and will vest in the 2015 financial year. The value of these PSRs has been calculated by an external valuations expert and the related cost is being amortised over the vesting period commencing in the six months to 31 December Accounting Policies This interim financial report has been prepared in accordance with the same accounting policies that were applied in the most recent annual financial report except that the Company has elected to early adopt AASB 9 Financial Instruments effective 1 July The adoption of AASB 9 has resulted in a change to the Group's accounting policy covering available-for-sale financial assets. Under the previous policy a reduction in the fair value of such assets attributable to an impairment loss was brought to account in the income statement. Such impairment losses are now recognised in other comprehensive income and reflected in the fair value reserve in equity. From 1 July 2012 the Group also applied amendments to AASB 134 Interim Financial Reporting outlined in AASB Amendments to Australian Accounting Standards - Presentation of Items of Other Comprehensive Income. The change in accounting policy only relates to disclosure. The changes have been applied retrospectively and require the Group to separately present those items of other comprehensive income that may be reclassified to the income statement in the future from those that will never be reclassified to the income statement. These policies comply with the Australian Accounting Standards Board, Corporations Act 2001 and International Financial Reporting Standards and interpretations adopted by the International Accounting Standards Board. 10. Subsequent Event Effective 2 January 2013 Ansell Limited acquired Hercules Equipamentos de Protecao Ltda (Hercules), a privately held Brazilian company located in Sao Paulo. Hercules is a leading manufacturer of Personal Protective Equipment in Brazil with approximately 350 employees, a plant located outside Sao Paulo and wide distribution across Brazil. Its product lines include turn-out gear for Military and First Reponders, molten metal protection garments, fall protection equipment and gloves. The cash free, debt-free price was approximately US$77 million and there is a potential additional earn-out payment tied to profit growth. - Page 18

19 Ansell Limited and Subsidiaries Half year report for the six months ended 31 December 2012 Notes to the condensed consolidated interim financial statements 11. US Dollar Financial Information The following US dollar financial information is provided as additional information for the Company's shareholders. This information is a convenience translation only and has been prepared using the Group's accounting policies. Translation of amounts from Australian dollars to US dollars in the Income Statement and Cash Flow Statement have been made at the average of the am mid buy/sell rate for Australian dollars as quoted by Reuters for each working day of each month for the period July 2012 to December Translation of amounts from Australian dollars to US dollars in the Balance Sheet have been made at the am mid buy/sell rate for Australian dollars as quoted by Reuters, on Monday 31 December 2012, at US$ = A$1 (30 June 2012 US$ = A$1). Income Statement of Ansell Limited and Subsidiaries for the six months ended 31 December US$m US$m Revenue Sales Other revenue Total revenue Expenses Cost of goods sold (380.3) (357.0) Distribution (29.0) (29.5) Selling, general and administration (170.0) (150.3) Total expenses, excluding financing costs (579.3) (536.8) Financing costs (8.1) (5.5) Profit before income tax Income tax (5.7) (4.5) Profit for the period Non-controlling interests (1.7) (1.8) Profit attributable to Ansell Limited shareholders Earnings per share is based on profit attributable to Ansell Limited shareholders US cents US cents Basic earnings per share Diluted earnings per share Page 19

20 Ansell Limited and Subsidiaries Half year report for the six months ended 31 December 2012 Notes to the condensed consolidated interim financial statements 11. US Dollar Financial Information (continued) Balance Sheet of Ansell Limited and Subsidiaries as at 31 December December 30 June US$m US$m Current Assets Cash on hand Cash at bank and on deposit Cash assets - restricted deposits Trade and other receivables Inventories Other Total Current Assets Non-Current Assets Trade and other receivables Investments Property, plant and equipment Intangible assets Deferred tax assets Other Total Non-Current Assets Total Assets 1, ,353.9 Current Liabilities Trade and other payables Interest bearing liabilities Provisions Current tax liabilities Total Current Liabilities Non-Current Liabilities Trade and other payables Interest bearing liabilities Provisions Retirement benefit obligations Deferred tax liabilities Other Total Non-Current Liabilities Total Liabilities Net Assets Equity Issued capital Reserves (111.3) (109.6) Accumulated losses (19.4) (46.7) Total Equity Attributable to Ansell Limited Shareholders Non-controlling interests Total Equity Page 20

21 Ansell Limited and Subsidiaries Half year report for the six months ended 31 December 2012 Notes to the condensed consolidated interim financial statements 11. US Dollar Financial Information (continued) Cash Flow Statement of Ansell Limited and Subsidiaries for the six months ended 31 December US$m US$m Cash flows Related to Operating Activities Receipts from customers Payments to suppliers and employees (613.9) (591.2) Net receipts from operations 53.5 (8.2) Income taxes paid (6.8) (8.8) Net Cash Provided by/(used in) Operating Activities 46.7 (17.0) Cash Flows Related to Investing Activities Payments for businesses, net of cash acquired (136.0) (14.1) Payments for property, plant, equipment and capitalised software costs (19.2) (21.4) Proceeds from sale of property, plant and equipment Purchase of other investments (1.9) (5.0) Net Cash Used in Investing Activities (156.4) (39.7) Cash Flows Related to Financing Activities Proceeds from borrowings Repayments of borrowings (38.3) (41.9) Net proceeds from borrowings Proceeds from issues of shares Payments for share buy-back - (33.4) Dividends paid - Ansell Limited shareholders (27.8) (25.9) Dividends paid - Non-controlling interests (2.3) (1.8) Interest received Interest and borrowing costs paid (6.7) (5.6) Net Cash Provided by Financing Activities Net increase/(decrease) in cash and cash equivalents 86.1 (41.6) Cash and cash equivalents at the beginning of the period Effects of exchange rate changes on the balances of cash and cash equivalents held in foreign currencies at the beginning of the period 6.6 (8.7) Cash and Cash Equivalents at the end of the period Page 21

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25 Additional Financial Information For the six months ended 31 December 2012 Ansell Limited and Subsidiaries ACN The following additional financial information is supplementary to the Company's Half Year Report for the six months ended 31 December 2012 filed with the ASX on 13 February It is provided as additional information for the Company's shareholders. This financial information does not form part of the Company's financial statements that are required to be prepared under the Corporations Act 2001, Australian Accounting Standards and the ASX listing rules. This financial information has been derived from the Company's and has not been subject to review by external auditors. The Company reports in Australian dollars. The United States dollar (US dollar) is the predominant global currency of our business transactions. For the convenience of the reader, translation of amounts from Australian dollars into US dollars has been made throughout the Free Cash Flow Analysis at the average of the am buy/sell rate for Australian dollars as quoted by Reuters for each working day of each month for the period July 2012 to December 2012 with the exception of the movement in Working Capital which is the actual movement in working capital balances from the start to the end of the financial periods. Translation of amounts from Australian dollars into US dollars has been made throughout the Abridged Balance Sheet at the 10.am mid buy/sell rate for Australian dollars as quoted by Reuters on Monday, 31 December 2012 at US$ = A$1 (June 2012 US$ = A$1).

26 Additional Financial Information Ansell Limited and Subsidiaries Additional Financial Information For the six months ended 31 December 2012 The Cash Flow Statement required to be reported for statutory purposes provides an analysis of cash flows which have impacted the cash held by the Company and its subsidiaries. The following analysis is based on the Company's internal cash management reporting which focuses on the cash flow generated by the operations and the movement in net interest bearing debt (NIBD). (a) Cash Flow Analysis (movement in NIBD) December December December December A$m A$m US$m (1) US$m (1) EBIT Depreciation/amortisation/asset write-downs Working Capital Reduction/(Increase) - excluding acquisitions 4.0 (56.7) (4.4) (46.1) Tax Paid (6.6) (8.6) (6.8) (8.8) Capital Expenditure (18.5) (20.9) (19.2) (21.4) Net Interest Paid (2.8) (2.1) (2.9) (2.1) Free Cash Flow 54.5 (5.9) Acquisitions (132.1) (13.0) (136.0) (14.1) Dividends Paid - Ansell Limited shareholders (26.9) (25.3) (27.8) (25.9) Contributions of equity Share Buy-Back - (32.6) - (33.4) Net employee incentives (9.2) (15.4) (9.5) (16.0) Other (26.9) (24.7) (22.4) (36.0) Increase in NIBD (139.2) (116.0) (146.1) (118.2) (b) Abridged Balance Sheet December June December June A$m A$m US$m (2) US$m (2) Property, Plant & Equipment Intangible Assets Other Assets/Liabilities 11.2 (15.2) 11.7 (15.3) Trade Debtors Inventories Trade Creditors (146.5) (136.1) (151.8) (136.7) Net Operating Assets NIBD (Interest Bearing Liabilities less Cash at Bank and on Deposit) (195.0) (55.8) (202.2) (56.1) Shareholders' Equity (c) Reconciliation of Statutory Cash Flow Analysis to Management Cash Flow Analysis December December December December A$m A$m US$m US$ m EBIT Depreciation/amortisation/asset write-downs Working Capital Reduction/(Increase) - excluding acquisitions 4.0 (56.7) (4.4) (46.1) Tax Paid (6.6) (8.6) (6.8) (8.8) Net employee incentives (9.2) (15.4) (9.5) (16.0) Other (21.8) (18.4) (14.0) (30.8) Net Cash Provided by/(used in) Operating Activities 44.8 (16.7) 46.7 (17.0) Capital Expenditure (18.5) (20.9) (19.2) (21.4) Net Interest Paid (2.8) (2.1) (2.9) (2.1) Acquisitions (132.1) (13.0) (136.0) (14.1) Dividends Paid - Ansell Limited shareholders (26.9) (25.3) (27.8) (25.9) Contributions of equity Share Buy-Back - (32.6) - (33.4) Effect of exchange rate changes on the balances of cash and interest bearing liabilities held in foreign currencies (1.1) (2.1) (3.1) 0.2 Other (4.0) (4.2) (5.3) (5.4) Increase in NIBD (139.2) (116.0) (146.1) (118.2) Page 1