Annual Report ANSELL 2013 PROTECTS Contents

ZONZ™ Comfort Fit Technology promotes The Ansell Promise 01 enhanced fit and feel with variegated stitch Results in Summary 02 designs around knuckle area will reduce stress and hand fatigue Review of Operations 03 Highlights of the Past Financial Year 06 D3 Pinky provides ergonomic fit to New patent-pending coating The World of Ansell 10 the hand’s natural with FORTIX™ Abrasion Chairman’s Review 12 contour Resistance Technology Chief Executive Officer’s Review 13 enhances durability Structure and Major Brands 16 Innovation through Research and Development 18 Innovation through Investment 19 Medical 20 Industrial 22 Specialty Markets 24 Sexual Wellness 26 Regions 28 Corporate Social Responsibility 30 Board of Directors 32 Executive Leadership Team 34 Three-Year Summary 36 Corporate Governance Statement 37 Report of the Directors 50 Operating and Financial Review 57 Remuneration Report 64 Consolidated Income Statement 80 Consolidated Statement of Comprehensive Income 81 Consolidated Balance Sheet 82 Consolidated Statement of Changes in Equity 83 Consolidated Statement of Cash Flows 85 Notes to the Financial Statements 86 Directors’ Declaration 130 Independent Audit Report 131 Shareholders 133 Shareholder Information 134 Ansell Offices 135

Twenty times Ultralight 18-gauge liner, more breathable like a second skin than competitors’ glove*

* Based on internal Ansell testing

Silicone-free Ansell HyFlex® 11-818 Precision protection industrial glove.

To learn more about this product visit: www.ansell.com/brand/hyflex Every day, millions of people around the world depend on Ansell in their professional and personal lives. With Ansell, they always know they are safer or can perform better because our category expertise, innovative products and advanced technology give them peace of mind and confidence that no other brand can deliver. Ansell Protects.

The Annual General Meeting will be held The United States dollar (US$) is the at the RACV Club, Level 17, 501 Bourke predominant global currency of our business Street, Melbourne, on Thursday 17 October transactions and the currency in which the 2013 at 2.00pm. Details of the business of global operations are managed. United States the meeting are contained in the Notice dollar values are included in this Report of Meeting that has been distributed to where appropriate. Unless otherwise stated, shareholders. Shareholders unable to attend the values appearing in this Report are the Annual General Meeting are encouraged Australian dollars. to participate in the Company’s affairs by lodging your proxy using one of the methods outlined on the Proxy Form.

Ansell Limited ABN 89 004 085 330

Ansell Limited – Annual Report 2013 01 Results in Summary

Highlights • We completed four acquisitions during the year, Trelleborg Protective Products, Comasec SAS, Preferred Surgical Products LLC (PSP) 9% and Hércules Equipamentos de Proteção Ltda. Increase in sales in US$ • A significant number of new product launches were made across our HyFlex, ActivArmr®, VersaTouch® and Gammex® range of gloves.

• Sales in emerging markets increased by 17 per cent over the previous year and now represent 27 per cent of total sales. • New material and manufacturing technologies went into use, 11% improving manufacturing capabilities and productivity. Increase in EBIT • Achieved sales of US$1,372.8 million, a 9 per cent increase on the in US$ previous year.

• Earnings before interest and tax (EBIT) of US$170.5 million was up 11 per cent on the previous year. • Earnings per share (EPS) was US106.5¢, an increase of 5 per cent 5% on the previous year. Increase in • Balance sheet continues to strengthen and operating cash flow EPS in US$ was very strong at US$130.4 million, compared to the previous year’s US$98.4 million.

• FY2013 total dividend increased by 7 per cent to A38.0 cents per share. 7% Statutory Results in Results in Operating Increase in FY13 Australian Dollars Currency – US Dollars dividend 2013 2012 2013 2012 A$m A$m % US$m US$m % Sales 1,340.0 1,218.3 + 10 1,372.8 1,255.3 + 9 EBIT 167.2 149.4 +12 170.5 153.2 +11 Profit Attributable 136.8 130.0 +5 139.2 133.0 +5 Earnings per Share 104.6¢ 99.1¢ +6 106.5 101.4 +5 33% Dividend per Share 38.0¢ 35.5¢ + 7 Improvement in Operating Cash Flow 127.1 95.2 +34 130.4 98.4 +33 operating cash flows

New Products – Significant new product launches were made during the year.

Micro-Touch® Denta-Glove® ActivArmr TouchTec® flame- VersaTouch Polar Bear™ HyFlex 11-840 high HyFlex 11-515 high visibility glove latex free examination glove resistant glove cut protection glove performance nitrile glove

02 Ansell Limited – Annual Report 2013 Review of Operations

Sales by Global Business Unit (GBU) Sales by region

42% Europe, Middle 41% Industrial East and Africa 25% Medical 31% North America 17% Specialty Markets 20% Asia Pacific 17% Sexual Wellness 7% Latin America and Caribbean

2013 2012 Movement 2013 2012 Movement US$m US$m % US$m US$m % Industrial 563.6 504.1 +11.8 Europe, Middle East Medical 349.5 356.4 -1.9 and Africa 572.3 478.4 +19.6 Sexual Wellness 229.7 217.3 +5.7 Asia Pacific 280.4 267.9 +4.7 Specialty Markets 230.0 177.5 +29.6 North America 418.8 426.2 -1.7 Latin America and Total Sales 1,372.8 1,255.3 +9.3 Caribbean 101.3 82.8 +22.3 Total Sales 1,372.8 1,255.3 +9.3

Segment EBIT by GBU Segment EBIT by region

39% Europe, Middle 51% Industrial East and Africa 23% Medical 36% Asia Pacific 19% Sexual Wellness 17% North America 7% Specialty Markets 8% Latin America and Caribbean

2013 2012 Movement 2013 2012 Movement US$m US$m % US$m US$m % Industrial 92.0 83.7 +9.9 Europe, Middle East Medical 41.1 39.5 +4.0 and Africa 70.7 62.6 +12.9 Sexual Wellness 34.2 33.2 +3.0 Asia Pacific 65.0 64.0 +1.6 Specialty Markets 11.7 7.2 +62.5 North America 29.3 26.6 +10.1 Latin America and Total EBIT by GBU 179.0 163.6 +9.4 Caribbean 14.0 10.4 +34.6 Total EBIT by region 179.0 163.6 +9.4

Ansell Limited – Annual Report 2013 03 Delivering

1. 2. 3. Ansell has previously Adopt a truly global Accelerate innovation Manufacturing and identified seven organizational structure • Launched 48 new products supply chain efficiencies growth strategies and target defined in FY13 – up fourfold on the • Three-fold increase in that it is pursuing verticals average of prior years. productivity. in order to achieve • Ansell’s acquisition strategy • Expanded innovation • With an emphasis on its objectives. The has primarily focused on capabilities through eliminating duplication Industrial and Specialty addition of new staff and minimizing the physical following is intended Markets via the conclusion (including the new Science product movements, to provide an update of the Comasec, Hércules and Technology Center Lean as a principle has on the progress and Trelleborg transactions. in Colombo, Sri Lanka), encouraged a culture of new pilot testing lines, in achieving these • Strong emphasis on new continuous improvement product development. new technologies and to embed itself into our strategies. faster time to market. operations area. As a • Acquisitions in the Medical result, the productivity GBU have, via Sandel and improvements delivered PSP, targeted hospital by manufacturing are up safety devices and significantly against annual perioperative products, productivity historically. as innovation is seen as a driver of active infection • Supply chain efficiencies control. are being pursued throughout the business, • The Sexual Wellness GBU most notably in our has targeted its spending Malaysian consolidation on growing the branded warehouse. Malaysia’s condom categories into strategic importance as new regions augmented by both a manufacturing a small acquisition in China. and procurement hub is anticipated to continue. innovation

4. 5. 6. 7. Implement best market Emerging markets Streamline and improve Leverage strong balance practice to build the • During the year, the core processes sheet and cash flow to Ansell franchise and group has seen emerging • The North American build capabilities core brands such as markets grow to represent platform is stable with the • With $208.6 million spent HyFlex, Gammex, approximately 27 per cent local activities of recent on acquisitions, Ansell still ActivArmr and SKYN® of group revenue up from acquisitions such as has a considerable capacity 25 per cent of sales in Comasec and Trelleborg • Launched and expanded to grow as evidenced 2011/12. fully integrated onto brands such as Edge and by operating cash flow the Oracle Information Medi-Grip products in • Acquisitions added to this generation of around Technology (IT) system. emerging markets. growth, with the Hércules $130 million for the year. acquisition based out of • Continued investment • Ongoing investments are • Invested in expanded São Paolo in Brazil, being in Enterprise Resource made to drive the adoption, manufacturing and research an exciting addition to our Planning (ERP) systems awareness and improved facilities. Specialty Markets offering. as we work toward relevance through improved implementing SAP into • Fourfold increase in design, visibility and impact • The Guangzhou acquisition the EMEA Industrial manufacturing capability of our core brands. in China, continues to and Specialty Markets and capital expenditures entrench Ansell’s growing (CAPEX) compared to 2010. position in China’s Sexual businesses. Preliminary Wellness market. design and testing is well advanced. Go-live date • Launched a range of is anticipated to occur brands, including Edge during the first half and Medi-Grip, which of FY14. are aimed specifically at emerging markets. 2012

September Highlights

of the Past Ansell acquires Comasec SAS Ansell expands its offerings with exciting new products especially in the mechanical, food, Financial Year chemical, retail Household gloves and electrical protection areas. July 2012 – June 2013 ActivArmr 97-007 Multipurpose Gloves Ansell is now the only manufacturer providing a full range of tailor-made solutions, engineered to meet every need including personal protection requirements in the construction industry.

ActivArmr Flame-Resistant (FR) Utility Gloves The flame-resistant utility gloves protect the July hands of military personnel in hazardous and unpredictable environments, while conducting general mechanics work including engine HyFlex 11-518 launched maintenance and repair, base camp construction, The first-to-market HyFlex and hauling equipment. 11-518 Gloves (pictured below) provide wearers with Zero® 16s a bare hand-like sensation The Zero 16 pack without compromising cut (pictured) offers protection or performance. added value to those consumers wanting Australia’s thinnest condom that meets ISO 4074 requirements.

HyFlex 11-618 launched in United States (US) HyFlex Ultralight 11-618 Work Gloves (pictured above) are ideal for a range of applications requiring a higher level of touch and precision.

August

HyFlex 11-435 launched HyFlex 11-435 cut-resistant work gloves (pictured) are made with water-based polyurethane which 30% does not penetrate the gloves, resulting in a softer feel on the skin. thinner than standard surgical gloves*

Gammex Non-Latex Accelerator-Free Sensitive Surgical Gloves (pictured) – SENSOPRENE™ SENSOPRENE formulation is up to 30 per cent thinner than standard surgical gloves and is free from both latex * Based on Ansell proteins and chemical accelerators. internal testing.

06 Ansell Limited – Annual Report 2013 October

Ansell Annual General Meeting (AGM) On October 22 Ansell held its AGM in Melbourne. The retiring Chairman, Mr Peter Barnes with the CEO presented the FY12 results and gave a glimpse of how the Company was seeing FY13 and reconfirmed forecasts made in August.

November December

Gammex Non-Latex Antimicrobial Surgical Ansell acquires the business of Preferred Surgical Gloves launched – Canada Products LLC (PSP) First released in Australia and now available PSP has developed a range of disposable products designed in Canada. Gammex Non-Latex Antimicrobial to improve infection control, protect the patient’s skin and surgical gloves (pictured) provide a new level optimize room turnover time, while helping to reduce costs. of protection for healthcare workers.

VersaTouch 37-200 and Gammex N95 Respirator and VersaTouch 37-210 Gloves Surgical Mask The VersaTouch 37-200 (pictured) Gammex N95 (pictured) is the and VersaTouch 37-210 family of latest addition to the Active Infection Ansell rolls out Sandel in Europe (EU) products are thin, re-usable, nitrile Protection (AIP) portfolio. This new Sandel perioperative safety devices (pictured) gloves that offer excellent grip in mask is the first to utilize a hybrid are designed to eliminate the threat of workplace wet or greasy conditions, offering technology that incorporates the injury before, during, and after surgery and are best-in-class solutions for food comfort of a standard surgical mask identified by their signature bright orange colour. service workers. with the protection of a respirator.

Ansell Limited – Annual Report 2013 07 2013

January February

New facility in Sri Lanka Ansell opens a 16,000 square foot state-of-the-art research and Ansell acquires development facility (pictured) outside of Colombo, Sri Lanka. Hércules Equipamentos de Proteção Ltda Hércules is one of the largest and most respected Personal Protective Equipment (PPE) companies in Brazil.

16,000 square foot state-of-the-art facility

March

Trellchem® Super Gastight Chemical Protective Suit The Trellchem Super Gastight Chemical Protective suit (pictured) has been tested to and fulfils the requirements of the Atmosphères Explosives (ATEX) Directive 94/9/EC for equipment to be used in potentially explosive atmospheres.

08 Ansell Limited – Annual Report 2013 April May

Micro-Touch Denta-Glove A 100 per cent nitrile solution that eliminates the risk of Type I (latex) allergies for dental professionals and patients alike and features textured fingertips to facilitate safe handling of instruments in wet or dry conditions.

TouchNTuff® 83-500 Sterile Polyisoprene Gloves (pictured) and TouchNTuff 93-700 Sterile Nitrile Gloves These gloves maintain the strength and durability necessary to fulfil the dual roles of protecting wearers from coming into contact with potentially dangerous chemicals or agents, and protecting products from contamination from bare hands. Ansell expands in HyFlex 11-515 Gloves Viking® HAZTECH™ the China market launched – US Dry Suit – EU Gammex Nitrile Antibacterial Medical Gloves Ansell introduced With high visibility With Viking HAZTECH The first antibacterial infection protection eight series of DuPont™ Kevlar® (pictured), Ansell is glove of its kind. It is the only glove approved medical and Stretch Armor liner, now moving forward with demonstrated effective kill rates up to chemical gloves the new gloves offer in supplying customers 99.999 per cent against eight common Gram- in China. American National who live, work and dive negative and Gram-positive bacterial species. Standards Institute in areas of the globe (ANSI) Level 4 Cut where extreme cold Trellchem VPS Flash Protection and a high water conditions exist. The Trellchem VPS Flash provides over eight visibility appearance hours of permeation time against a wide variety to keep workers’ of hazardous chemicals, along with flash fire hands safe in low- protection and protection against liquefied light situations. gases, radioactive particles, and biohazards.

LifeStyles® OrgazMax™ 10s Ansell’s new innovative textured condom LifeStyles OrgazMax is the world’s most ‘Xtreme’ studded condom, with studs larger than any June other condom in the market and three times larger than Ansell’s previous textured condoms.

AlphaTec® 58-330 and AlphaTec 58-335 Gloves The new AlphaTec 58-330 and AlphaTec 58-335 Chemical Gloves (pictured) are designed to protect hands against exposure to oils, fuels, solvents, bases and esters in both medium- and heavy-duty applications and helps to prevent hand injuries related to chemical hazards.

Ansell Limited – Annual Report 2013 09 The World of Ansell Ansell is a world leader in providing superior health and safety protection solutions that enhance human well-being. With operations in four regions, Ansell employs more than 13,000 people worldwide.

North America

Head office: Iselin, NJ, USA 1,408 Employees Latin America and Caribbean (LAC)

8 Head office: Operating facilities Iselin, NJ, USA $418m 333 Revenue Employees 3 Operating facilities

31% of global sales $101m Revenue 7% of global sales

10 Ansell Limited – Annual Report 2013 Map Key Europe, the Middle Corporate offices East and Africa (EMEA)

Operating facilities Head office: Brussells, Belgium 42% of global sales 1,746 Employees 24 Operating facilities $572m Revenue

Asia Pacific (APAC)

Head office: Hong Kong 9,109 Employees Ansell seeks to promote an inclusive culture where employees are encouraged to succeed to the best of their abilities. Diversity is about recognizing and valuing the contribution of employees from different backgrounds, with different 17 capabilities, perspectives and Operating facilities experiences.

Ansell embraces all employee differences including age, gender, ethnicity, and cultural background, and recognizes the benefits that diversity brings to deliver value to $280m our shareholders, customers and the 20% of Revenue communities in which we operate. global sales

Ansell Limited – Annual Report 2013 11 Chairman’s Review

Welcome to the 2013 Annual Report of Ansell Ltd. It is pleasing to report that the Company has made significant progress against our objectives during the year. In a difficult global trading environment, your Company completed four acquisitions, launched a large number of new products and made significant investments in further product and process development, marketing, plant and equipment and its employees. After a first half with financial results below expectations, your Company delivered a much improved second half performance. We have ended the year with a stronger market presence and a new able to and thus ensure strong and the workload of the Directors with momentum in innovation, productivity sustained business growth and increases in travel requirements and the and sales. performance. time committed in reviewing business development opportunities and to attending meetings. Financial Performance Governance Sales for the 2013 financial year The Board recognizes its role in Peter Day has taken on the role of increased by 9 per cent over the prior protecting and building sustainable chairing the Audit and Compliance year to US$1,372.8 million and profit value for all stakeholders. To enhance Committee. This has enabled Dale attributable to shareholders was this function a Risk Committee of Crandall, who has done an outstanding US$139.2 million compared with the the Board has been established in job in that role for the last seven years previous year of US$133.0 million, an order to keep pace with risk profile to take up membership of all the increase of 5 per cent. In the current developments driven by the Board Committees – and allow us to market environment, this is a strong increasing geographic spread, size better leverage his considerable skills validation of Ansell’s growth strategies. and complexity of our businesses in and years of experience with Ansell. a rapidly changing world. The balance sheet is strong and gives I would like to thank my fellow us the capacity to continue to pursue Our customers, suppliers and Directors for their hard and diligent our growth strategies. The Return on shareholders expect that our people work over the past year. Assets (ROA) and Return on Equity demonstrate the highest standards of ethical conduct in all their business (ROE) were both 19.1 per cent and People compare well with our Weighted dealings. The Board strongly supports Average Cost of Capital (WACC) these expectations and monitors the We have a committed workforce of 10.4 per cent. corporate culture and seeks, along of over 13,000 spread across 52 sites with the senior management team, in 35 countries dedicated to the The Board has resolved to pay a to model and reinforce this culture development, manufacture and final dividend of 22.0 cents per share, across the organization. marketing of our products all around payable on 26 September 2013, the world. Our businesses would not be in the strong position they are in taking total dividends for the year Board to 38.0 cents per share, which today were it not for our people. On represents an increase of 7 per cent We are pleased to welcome behalf of your Directors, I would like on the previous year. as a Director, Annie Lo whose to acknowledge the hard work and appointment was announced in commitment of all the men and December 2012. Annie’s diversified women of Ansell around the world Diversity background in finance, developing over the past year. Additionally I would At Ansell we are committed to markets and business integration like to thank our Chief Executive building an inclusive and accessible will further strengthen our Board Officer and Managing Director, organization through the development and complement its existing skills Magnus Nicolin, and his executive of a culture that embraces diversity. and business experience. leadership team for their dedication We recognize the value and and strong leadership. advantages of having a diverse At the Board level, we have a diverse and inclusive workplace. Our talented group of Directors who are all active and diversified workforce is a key in seeking to contribute to the strategy competitive advantage and we are and to the performance of the Group. committed to seeking out and The complexity and geographic spread retaining the best people we are of the business continues to increase G L L Barnes Chairman

12 Ansell Limited – Annual Report 2013 Chief Executive Officer’s Review

When I joined Ansell and we launched the new growth strategy more than three years ago, the focus was on developing a strategy which would deliver benefits and value creation to customers, investors and employees. Any strategy is ultimately reflected in the choices made over time and how those choices are part of a greater path to profitability and industry leadership. Hence, our focus has been on how we enhance capabilities and processes, building a culture which encourages innovation and alignment toward addressing end-user needs. Year in Review This past year we announced our This 2013 Ansell Limited Annual first annual Ansell Innovation Awards Ultimately, it was a rewarding year for Report provides you with a more to employees and teams on the the Company. Ansell produced strong in-depth look into this strategy and leading edge of process, marketing US dollar results with double digit our choices as we continue to build and manufacturing innovation. These increase (11 per cent) in EBIT. We have our portfolio, leveraging the latest annual awards recognize those expanded our global footprint with technology based on insight into employees around the world who continued growth in emerging market and industry trends. Ours are thinking differently about going markets, further enabling growth in is a dynamic marketplace across to market and anticipating end-user the next year. We released 48 new numerous industries and regions, needs. Their ideas have resulted in products and improved manufacturing each with different needs, perspectives millions of dollars in revenue for productivity and capability. We enter and economic priorities. As we look Ansell either through cost savings, the current financial year with toward the future, we are building productivity gains, new product advantages from the integration of an organization and product portfolio development or manufacturing our four newly acquired businesses, which constantly evolves and adapts efficiencies. a more dominant market position to opportunities as they present with new product sales and continued themselves. As an example, Nissan Motor manufacturing improvements. Manufacturing UK recently cited the Our objectives in FY13 were simple: use of Ansell work safety gloves and In January of this year, we opened its strengthened safety culture as our new Industrial and Specialty • Drive innovation and new product pivotal in providing reduced frequency Markets Research and Development launches for competitive advantage; and seriousness of industrial accidents, Center in Colombo, Sri Lanka. This • Continue to improve manufacturing as well as a much longer glove center, now fully functional, houses efficiency; lifecycle. After Nissan UK’s switch some of the world’s most innovative to Ansell’s automotive safety gloves, • Leverage our Ansell Guardian work in the area of PPE. Co-located they reported the gloves lasting five solution to help customers reduce with one of Ansell’s largest to seven times longer than standard hand injuries and improve manufacturing sites, the facility has automotive gloves, while reducing efficiencies; laboratory space, technical testing accidents and increasing productivity. • Build a stronger market presence equipment and a very flexible pilot in emerging markets; and manufacturing line allowing quick testing of prototypes thus • Define, close and integrate contributing to shortening time acquisitions. to market for new products.

We have made significant progress against each of these objectives.

Ansell Limited – Annual Report 2013 13 Chief Executive Officer’s Review continued

Customers such as Nissan continue development of new verticals, It all starts with a culture which to drive our innovation. Even though springboards to new and exciting inspires our people to improve every our performance in 2013 was within opportunities and not least the day. We must constantly learn from our guidance range (driven by a opportunity to welcome new our customers, our competition and very strong second half), there are colleagues and new leaders to Ansell. from each other. still challenges. While global volatility These individuals are after all what still remains, we are encouraged by made those businesses so attractive Any team with great people growth in emerging markets and in the first place. I am confident outperforms individuals. We have some improvements in North America we have only begun to tap into a responsibility to deliver long-term and LAC, which are expected to the value of these acquisitions. value to our shareholders. That be offset by weakness in EMEA responsibility is not taken lightly, and APAC. Recently, I learned about a worker and such a responsibility does not fall at a Brazilian factory who, after solely on one individual. Our culture We have demonstrated that Ansell spending the weekend with his family mandates that we all align our can perform in this mixed environment. and relatives celebrating his parent’s strategy and mission-based promise In 2013, EBIT grew by 11 per cent to 40th wedding anniversary, went to to innovate, protect and deliver. $170.5 million, operating cash flow the steel mill where he had been of $130.4 million was an increase of working for the past 14 years. During Our committed workforce now 33 per cent over the previous year. his shift that day, after he put on his numbers more than 13,000 spread We also returned $55.8 million of Hércules protective gear, he picked across 35 countries. As the Chief cash to investors through dividends up a ladle to remove the slag from Executive Officer (CEO), my primary and share buy-backs. the pot of steel that was going to be responsibility rests with delivering poured, when a flare up hurled a glob long-term value to shareholders, Our strategy has positioned Ansell of molten metal straight at his face – providing innovative solutions to well; a growing portfolio of world- throwing a 2,500°F fireball at him. our customers and ensuring our class products, a strong position in The employee fell backward as the employees work in an environment fast-growth global markets, leading- rapidly hardening metal scattered which encourages creativity and edge technologies that achieve around his thermal suit. He was problem-solving. customer productivity while immediately helped up and moved enhancing protection and a strong away from the production floor. As An important part of our growth financial position. he removed his helmet to examine strategy and of our culture is the damage, he noticed extensive Ansell Guardian, a unique suite of Based on the strong results and damage to the face shield – made management tools helping businesses continued positive development up of layered polycarbonate with an improve safety, efficiency and of our global positions, the Ansell inner film of 24 carat gold to reflect productivity, while reducing costs. Board has announced a final dividend heat – very much like the face shield Focused around the customer value of A22.0¢ (A20.5¢ in 2012) for a used by NASA for space walkers proposition of reducing the overall total of A38¢ per share unfranked and astronauts. cost of ownership, enhancing (A35.5¢ in FY12). The dividend will productivity and employee safety, have a record date of 5 September Thanks to the quality of this Hércules Ansell Guardian is providing customers 2013 and a payment date of product, the employee left the plant around the world the competitive 26 September 2013. that day, climbed into his car and advantage to compete in today’s drove off to pick up his wife on his marketplace and ensuring worker way home, knowing that without that safety. After an Ansell Guardian Acquisition Integration shield, his day would have ended assessment, one customer reduced and the Ansell Culture much differently. It is a constant hand injuries 56 per cent by Our culture was enhanced by the reminder for us at Ansell that our implementing our recommendations, integration of four key acquisitions products protect millions of people thereby resulting in an annual savings this past year: Comasec, Trelleborg, every day. of more than US$1 million dollars. Preferred Surgical Products and Ansell Guardian is an excellent Hércules. These acquisitions involved Few companies can do what Ansell example of our focus on customer the integration of thousands of does; the breadth of our portfolio, the needs and providing solutions. This products and employees to the scale we operate at and our decades tool or way of thinking is unique in Ansell family. Though highly complex, of investment are a competitive our industry and provides Ansell we have already benefited from the advantage. In an uncertain economy, untold advantages. value of integrating these businesses long-term growth and competitiveness through: access to new markets, require the endless pursuit of innovation and productivity.

14 Ansell Limited – Annual Report 2013 Ansell Guardian is a unique suite of management tools helping businesses improve safety, efficiency and productivity while reducing costs.

Outlook the skin. The suddenness of the I would like to take this opportunity to symptoms and the fact the condition thank the more than 13,000 employees Our objective is to continue to grew progressively worse alarmed of Ansell. Your commitment makes a expand organically and by acquisition her. She made numerous trips to the huge difference and makes us stronger to create shareholder value. We must emergency room and consulted with every day. remain agile and a strong global various doctors. An allergy skin patch competitor and though the test confirmed Rachael was allergic Our products make a difference to environment remains challenging to chemical accelerators. Rachael millions of people every day around in certain industries and regions, said she was devastated when she the world and I am delighted that the we still expect EBIT growth to be discovered rubber gloves – like the choices we have made this past year in high single digits to low teens. ones she wore in the operating room continue to hold true to our purpose. – and all rubber materials were part Ansell culture is mission-based; we Importantly, our outlook continues of that list. enhance productivity, reduce risk, to turn toward our customers, enable creativity and save lives. enabling their safety, productivity Rachael’s search for a surgical glove and success. Finally, we look to build continued until she was encouraged Ansell Protects. careers and opportunities for our to try a new glove developed by employees, to challenge, nurture and Ansell for individuals who suffer from reward employees for taking calculated chemical accelerator allergies. After risks, for hard work and for applying having been provided samples of their creativity. FY13 was a challenging Ansell DermaPrene® Ultra Gloves, year and our teams rose to this made with neoprene, she went out challenge and delivered strong results. to help other healthcare workers so Magnus Nicolin Thank you for everything that you they could continue in their jobs. Chief Executive Officer do for Ansell. By using poly-chloroprene gloves free Our employees delivered for of accelerators and latex proteins, Rachael H., who always dreamed allowing her 100 per cent allergy free of becoming an operating room nurse performance, Rachael was able to and made that dream a reality in 2009, resume her career and passion, which landing a job in outpatient surgery just weeks earlier seemed impossible. and serving as a scrub and circulating nurse.

Pursuit of her dream, however, was suddenly sidelined when she noticed a rash on her hands and forearms where her surgical gloves covered

Ansell Limited – Annual Report 2013 15 Structure and Major Brands Ansell is organized around four GBUs. Each GBU serves unique and different markets, but what connects all four is the focus on protection, comfort and quality, combined with a never-ending quest for innovation.

Global Business Units Industry verticals Product brands

Medical

Medical is an innovative leader in perioperative Acute Care safety and offers a range Non-Acute Care of medical solutions to Dental protect patients and healthcare workers in the Veterinary quickly evolving healthcare environment.

Industrial Automotive Machinery and Equipment Industrial manufactures and markets hand and upper arm Metal Fabrication protective solutions for a wide Transportation spread of industrial applications. Utilities Chemical Electronics Life Sciences

Specialty Markets Construction Specialty Markets manufactures Do-it-Yourself and markets high-performance, application-specific products Food Processing outside of the traditional Military industrial verticals. Oil Gas Mining

Sexual Wellness

Sexual Wellness manufactures and markets 18 of its own global, regional, and local condom and personal Consumer products brands.

16 Ansell Limited – Annual Report 2013 Ansell has developed – and continues Ansell brands set themselves apart to develop – a broad brand offering through their high quality, superior including innovative products to meet performance and state-of-the-art every protection need in professional, comfort and fit. But most of all, occupational, and consumer people around the world have come healthcare. to know the Ansell brands as brands they can rely on.

Technologies Product solutions

ANTIMICROBIAL TECHNOLOGY (AMT)

HYDRASOFT®

SENSOPRENE

AQUADRI® Ansell Protects

FORTIX

RIPEL™

ZONZ

ANSELL GRIP

INTERCEPT

POLYISOPRENE (PI)

Ansell Limited – Annual Report 2013 17 Innovation through Research and Development Delivering innovation and creating a competitive advantage.

AQUADRI Moisture Management US patents filed in FY13 Ansell currently A patented technology and flocked foam nitrile coating on the glove Medical 5 holds more than interior creates an open-celled foam Industrial 10 250 patents world structure that provides unrivalled moisture absorption and a cooler, Specialty wide, with another 11 drier more comfortable fit. 31 Markets 170 applications Total Sexual ZONZ 5 pending Wellness Comfort Fit This innovative knitting process uses varying stitch designs around stress areas, enhancing INTERCEPT Antimicrobial hand movement and stretch for Cut Resistance Technology maximum flexibility and dexterity This engineered yarn blends Microbial Protection and reduction in hand fatigue. various fibres such as stainless This proprietary technology steel, glass, Kevlar, Dyneema® provides an antiviral/antibacterial FORTIX and nylon in a process that inner coating on surgical gloves Abrasion Resistance provides high cut protection with to help reduce the risk of infection This thin, strong and patent exceptional comfort and dexterity. due to glove breach, and an pending breathable nitrile foam antibacterial external coating coating dramatically extends SENSOPRENE on infection protection gloves glove life and improves glove Allergy Protection and Sensitivity to reduce the risk of cross- comfort in applications with contamination. SENSOPRENE formulation is abrasive handling exposure. a non-latex, chemical accelerator- free formulation that delivers a Polyisoprene Technology ANSELL GRIP unique surgical glove, offering Ultimate Sensitivity Wet/Oil Grip unprecedented comfort and SKYN condoms have more natural This coating treatment minimizes sensitivity with advanced allergy polyisoprene material, which the force required to grip oily or wet protection against both latex provides ultimate sensitivity. tools or materials, reducing hand and and chemical allergies. Polyisoprene is a material similar arm fatigue and improving dexterity, to latex but synthetically formulated safety and productivity. HYDRASOFT to remove the compounds that Moisturizing cause irritation in many latex condom users. This condom is RIPEL HYDRASOFT technology actively as strong as the strongest latex restores moisture and rehydrates Liquid Repellence product on the market and easier the skin during wear to help defend This liquid-impermeable coatings to use than competing against the negative effects of polyurethane brands. prevent oil or lubricants from continual glove wear. making even incidental contact with the wearer’s skin for improved hand health.

18 Ansell Limited – Annual Report 2013 Innovation through Investment Expanding Ansell’s global footprint through targeted acquisitions and innovative growth.

decision to create and co-locate another strategic milestone in its R&D centers with the Ansell the journey of Ansell’s expansion manufacturing structure underline into attractive adjacencies, with a Ansell acquired Comasec SAS the Company’s commitment to further investment in protective and its subsidiaries in October 2012. accelerate innovation and to faster clothing. It enables Ansell to Comasec was a privately owned serve the emerging unmet needs of better serve several strategic French group with manufacturing customers worldwide. Ansell has a verticals, (Construction, Military operations in Portugal and long track record of manufacturing and First Responders, Mining, Malaysia and over 1,200 employees high-quality industrial and medical and Oil and Gas) and at the same globally. Comasec is a significant products in Sri Lanka, and New time strengthens the Company’s participant in the European PPE Product development will now presence in one of the world’s glove market, and has a presence complement manufacturing and major emerging markets. in North America. It specializes expand its presence in the region. in gloves for chemical protection, food handling, cut protection, mechanical protection, dry box, and thermal protection. Major brands are Comasec, Marigold, and Ansell, through Ansell Healthcare Marigold Industrial. The established Ansell acquired Hércules Products LLC, acquired all of gloves within the Comasec portfolio Equipamentos de Proteção the assets of Preferred Surgical complement and extend the Ltda (Hércules) in January 2013. Products LLC (PSP) in December Industrial and Specialty Markets Hércules was a privately held 2012. PSP was a privately held US product ranges of Ansell. Brazilian company, located in São product and technology company Paulo, with sales of approximately with innovative solutions in US$30 million. Hércules is a leading infection prevention. The PSP Research and manufacturer of PPE in Brazil with range aims to improve infection approximately 350 employees, a control, protect the patient’s Development in Sri Lanka plant located outside the city of skin, and optimize room turnover In February 2013, Ansell announced São Paulo and wide distribution time, while reducing total cost the opening of a newly constructed across Brazil. Its product lines per procedure. The technology 16,000 square foot state-of-the- include turn-out gear for Military acquired through the PSP acquisition art research and development and First Responders, molten aligns strategically within the (R&D) facility in the Biyagama metal protection garments, fall Sandel brand of healthcare safety Export Zone outside Colombo, protection equipment, and gloves. devices and strategically expands Sri Lanka. The Sri Lanka R&D Hércules was founded in 1989 and Ansell’s perioperative safety offering. center is the fourth center of has enjoyed robust growth fuelled excellence Ansell has installed – by Brazil’s growing economy adding to its existing Malaysia, and increasing workplace safety Mexico and North America- focus. This acquisition represents based centers. The investment in additional R&D resources and the

Ansell Limited – Annual Report 2013 19 Ansell Global Business Units Medical

Highlights

thinner than standard Gammex Non-Latex Sensitive Surgical * Glove with SENSOPRENE formulation surgical gloves is designed for ultimate sensitivity 30% and protection against both latex and chemical allergies. Thinner than polyisoprene, it maintains strength and feels very similar to natural rubber latex.

of eight common Gram- The Gammex Nitrile Antibacterial negative and Gram-positive Procedural Glove with an outer antibacterial 99.999% layer and STAT-BLOC™ antimicrobial bacterial strains killed in as operating room table linens (one rapidly as one minute (for the component of our STAT-PAC™ Operating Gammex Nitrile Antibacterial Room (OR) turnover packs) help reduce cross-contamination between surfaces Procedural glove) and patients, decreasing the potential of healthcare-associated infections.

decrease in time needed The Gammex Silver Barrier and Outer ** Dressing burn treatment solutions provide to complete burn dressing customized antimicrobial protection, 50% application. Also, a 92% easier application and improved fluid increase in fluid absorption management, resulting in fewer dressing compared to standard gauze changes and improved patient comfort.

Driving innovation Innovation is embedded in our In Q3, we launched our Sandel We have enhanced the way we culture and realized in the Medical STAT-PAC operating room deliver education via our innovative GBU mission to develop innovative turnover solutions to help prevent Ansell Certified interactive learning products and services that help healthcare-associated infections environment, AnsellCares customer enhance clinical outcomes, reduce and optimize operating room education programs, and Ansell the risk of injury and infection, and turnover time, including STAT- Guardian. By evaluating cost drive down hospital costs. BLOC, the only disposable, drivers, we will be able to use the antimicrobial operating room table Guardian model to partner with In Q1, we launched SENSOPRENE linens on the market. Two other our customers to implement best formulation, which allows us to innovations added to our Sandel practices for reducing injuries and create a glove that is thinner than line were the Count in Progress™ infections, recommend products standard surgical gloves and Beacon to help prevent retained to improve outcomes and reduce provides increased sensitivity, while surgical items, and ErgoPlus Anti- costs. We remain dedicated maintaining glove strength. Free Fatigue Mats for premium comfort to delivering clinically relevant from chemical accelerators and not during long procedures. solutions that provide maximum manufactured with natural rubber protection for healthcare workers latex, this formulation provides In Q4, we launched the Gammex and patients through our portfolio superior allergy protection. Nitrile Antibacterial Glove, a of surgical and examination first-of-its-kind medical glove gloves, healthcare safety devices In Q2, we extended our featuring an antimicrobial coating and active infection protection antimicrobial glove offering with to help reduce the risk of cross- products. the exclusive Gammex Non-Latex contamination between surfaces Antimicrobial Surgical Glove, and patients. We also introduced protecting healthcare workers from our Gammex burn treatment latex allergies in addition to helping solutions, improving the speed and protect against intraoperative comfort of application resulting * Based on Ansell internal testing. microbial transmission. We also in customized patient protection, ** Evaluation of Reliability and Time launched our Gammex N95 enhanced range of motion, and Savings of a Novel Silver Burn Glove Respirator and Surgical Mask improved fluid absorption. by Burn Care Providers’ Roger Huckfeldt featuring an innovative hybrid MD, Angela Garrison, Matt Price, David Hayford, Palm Medical Solution, design combining the protection presented at the 35th Annual John of a N95 respirator with the comfort A. Boswick, M.D. Burn and Wound of a standard surgical mask. Symposium, February 2013.

20 Ansell Limited – Annual Report 2013 Medical brands

Customer case study

An innovative approach to new product development delivers on a unique need within the specialized patient care environment of burn treatment. Palm Medical Solutions “Combining research, engineering and testing, we took an innovative approach to new product development that resulted in the introduction of a New Product category for Ansell.

Working together with Ansell business and R&D experts, experienced burn healthcare providers and specialized scientists, we identified a unique need within the specialized patient care environment of burn treatment.

Interviews with physicians, nurses, and other burn care providers guided our approach to developing innovative solutions for the most difficult area to dress after injury; the hands.

Antimicrobial silver fabrics and fibers for outer dressings were evaluated for ease of use, stretch, moisture management, and cost, and were tested for effectiveness. The chosen antibacterial silver fabric was shown to be effective in killing 144 bacterial strains collected acutely from a regional burn center to show success in this high-risk area.

The selected outer dressing material was nearly twice as absorbent as standard gauze. Prototypes were created and tested by end- users for stability, wound coverage and ease of application as compared to standard wound dressings.

The final products, the Gammex Silver Barrier Burn Glove (pictured) and the Gammex Outer Dressing, deliver improved stability and customized protection and significantly decrease the amount of time needed to apply and manage dressings.

These are the first products in a line of advanced wound care dressings for hard-to-dress areas of the body. The multi-disciplinary approach taken by Ansell for this product development should be commended and we look forward to our continued product development relationship.”

Roger Huckfeldt, MD Executive Director, Palm Medical Solutions

Ansell Limited – Annual Report 2013 21 Ansell Global Business Units Industrial

Highlights

Projected revenue New FORTIX abrasion-resistant user- based technology accelerated the generated by HyFlex- growth of HyFlex, a global leader. $200m+ branded products Coupled with ANSELL GRIP, the world’s most dexterous, ultralight mechanical protection glove is now also the longest lasting and most durable.

more moisture Leveraging research and development advances, Ansell introduced new absorbent* AQUADRI moisture management 10x technology. Unrivalled moisture control and a cooler, drier fit are creating new markets for the Alphatec product portfolio in the chemical protection category.

TouchNTuff units A core brand benefits from a new sold in 2012 application of existing technology. 1.1 billion Pairing material science with unmet user needs creates new, high-performance product opportunities for workers in sterile environments.

Driving innovation

An intimate understanding of The resulting technology advances Another focus is continuous the worker experience and key are equally fast-tracking the quality improvement of the customer requirements have Industrial GBU’s ability to rapidly Industrial GBU’s core brands, accelerated the innovation process develop new or revolutionize enhancing aesthetics, performance in the Industrial GBU, Ansell’s existing products. Future and overall brand equity. These largest business unit. Product innovation models will spring reformulated product lines will leadership draws its momentum by from responding to customers’ leverage vertical expansion efforts creating solutions across all types biggest unmet needs with new in key areas including aerospace, of unmet needs and developing solutions drawn from this growing transportation, utilities, life diverse new applications within the technology platform, coupled sciences, chemical and auto. Mechanical Protection, Chemical with Ansell’s intrinsic core brand and Liquid Protection and Product attributes of unparalleled Comfort, Emerging markets will continue to and Worker Protection categories. Performance and Protection. be a central focus for the Industrial GBU in 2014 and beyond. Building This new innovation trajectory The goal of the Industrial GBU on Ansell’s recent acquisition of is supported by a significant to continually differentiate itself the Marigold/Comasec business, research and development through better product and brand a significant participant in the investment, including a new portfolio leadership is being European PPE glove market, Technology Center in Colombo, accomplished through worker the Industrial GBU will continue Sri Lanka. This state-of-the-art experience innovations and to look for acquisitions and joint facility has centralized research re-launching existing products ventures to consolidate and and development activities and modernized by new technologies strengthen Ansell’s global footprint, resources and now serves as a such as FORTIX and AQUADRI ultimately offering the world’s proving ground for competitive that ultimately benefit the widest ranges of industrial hand testing, yarn engineering and pilot individual worker on the protection solutions and cementing line capabilities, giving Ansell the manufacturing floor, in the lab, the Ansell’s ability to best serve our advantage of speed and flexibility field, or wherever an Ansell PPE customer needs. as it works to bring new and glove may provide a solution. improved Industrial GBU products to the world marketplace.

* Based on Ansell internal testing.

22 Ansell Limited – Annual Report 2013 Industrial brands

Customer case study

Ansell provides its customers with the most innovative and highest-performing industrial gloves available. Ariens Company The 2,000 employees at Ariens Company, based in Brillion, Wisconsin, manufacture products worldwide built with the same inventive spirit and drive for durability that became reality in its founder’s garage back in 1933. With core values like these, it’s no wonder that this leader in the snow blower, lawn mower and outdoor power equipment market has partnered with Ansell to provide its workers with HyFlex (pictured), the most innovative and highest-performing industrial gloves available.

“We are very focused on the efficient manufacture of our products,” says Tom Flis, Human Resource (HR) and Safety Manager. “Being able to grab parts without having to take the gloves on and off is important.” At Ariens, safety and efficiency rule. HyFlex best- in-class precision gloves in ultralight, light and medium-duty styles empower Ariens workers to achieve both goals with confidence. Hansen Yuncken One of Australia’s largest construction firms, Hansen Yuncken has introduced a ‘glove and clip’ policy to reduce hand injuries at all their building sites.

“Our policy states that everybody on site must carry, or have gloves available to them at all times and must wear them when necessary,” said Ross Murphy, Occupational Health and Safety Manager for Hansen Yuncken, Victoria. “We have chosen gloves from Ansell’s HyFlex and ActivArmr ranges to fulfil our needs.”

“We worked with Ansell to ensure the right glove models from the Ansell range were matched with the right tasks and trades.”

“We introduced the ‘glove and clip’ policy with the goal of reducing the number of injuries and cultivating safety across the board, we are now experiencing a high level of compliance on site when it comes to hand safety, which is a terrific outcome for Hansen Yuncken and its people,” Ross concluded.

Ansell Limited – Annual Report 2013 23 Ansell Global Business Units Specialty Markets

Highlights

market solution ActivArmr 97-200 is the first synthetic work glove for the Oil and Gas Extraction delivering flame-resistant Industry combining flame resistance with 1st protection in an oil and high-impact protection in a highly flexible, gas impact glove comfortable construction. Users benefit from both improved productivity and enhanced safety.

more cut resistance in VersaTouch 74-730/74-31 creates a new * standard in cut-resistant gloves for the Food strategic protection zones Processing Industry, incorporating patented 10% delivered via a patent knitted variable stitch design to reduce hand pending first-to-market fatigue and proprietary knitting processes food processing glove to deliver enhanced cut protection without sacrificing comfort.

of Trellchem gastight A new range of Trellchem gastight chemical suits currently on sale suits have been developed incorporating a conductive polymer layer which enhances 75% are ATEX approved dissipative properties and protects workers in explosive atmospheres. ATEX approved.

Driving innovation

Innovation and product leadership R&D efforts were further focused The acquisition of Hércules continue to be major strategic and accelerated across several Equipamentos de Proteção themes for the Specialty Markets target technology platforms Ltda in January 2013 expanded GBU. Efforts are focused on including flame retardency, impact Ansell’s footprint in Brazil and understanding and then addressing protection, active visibility, and wet brought a new range of market- end-user needs with differentiated grip. These innovation platforms leading flame-retardant clothing new solutions for specialized will incubate and drive the GBU’s and fall protection products. The applications, markets and channels. future New Product pipeline. The acquisition of Comasec in October GBU’s new patent filings/awards 2012 similarly increased the GBU’s During the year, the GBU continued nearly doubled versus the prior penetration in target verticals to build and refine its product year and product development and provided a number of unique portfolio for targeted users. A cycle times were reduced by thermal products to the food record number of new products 60 per cent, accelerating overall processing range. were launched, many of which speed-to-market. were first-to-market with novel Innovation can be seen in more than features and performance Acquisitions have provided just new products. For example, enhancements. ActivArmr 97-200, additional synergies and leveraging Ansell Guardian and the for example, was the first flame- development capabilities. Ansell GBU’s understanding of customer retardant and impact protection Protective Solutions (formerly applications, an innovative new glove introduced for oil and gas Trelleborg Protective Products ‘injury management software’ was drilling and production services. acquired May 2012), for example, developed to help a leading global In food processing, VersaTouch is a market and technology leader construction company manage its 74-710/711 Gloves were launched in high-end gastight chemical hand protection products across featuring new patented ‘zonal’ suits and extends Ansell’s reach multiple worksites. protection areas for increased into protective clothing. During cut safety without compromising the year, several important new With 64 per cent of Specialty dexterity and comfort. clothing products were launched Markets sales now generated including ATEX approved versions outside of North America, the of Trellchem VPS Flash, EVO and GBU is bringing innovation to Trellchem Super Chemical Suits its customers around the world. for use in explosive atmospheres. * Based on Ansell internal testing.

24 Ansell Limited – Annual Report 2013 Specialty Markets brands

Customer case study

Ansell introduces state-of-the art flame and impact-resistant gloves to combat the high-risk oil and gas environments.

Oil and Gas Industry While the Oil and Gas industry has worked diligently to reduce flash fire incidents and the resulting burns, injuries and fatalities that can follow, the risk of injury persists.

The use of flame-resistant (FR) clothing greatly improves the chance of a worker surviving and regaining quality of life after a flash fire. And while FR clothing is mandated in certain upstream oil and gas environments, most end-users lack this level of protection in gloves.

Ansell has led the market by proactively extending this protection to the hand, with state-of-the art flame and impact- resistant gloves designed for these high-risk environments.

An Operations Manager with a major drilling contractor stationed in the Bakken field of North Dakota is one of many to confirm the value of flame-resistant clothing and the need for additional protection around hands. Speaking about two unrelated flash fire events, he noted, “In the past year, I had two workers seriously burned in rig accidents. They were severely injured in all areas not covered by flame-resistant clothing, especially on the face and hands. Neither worker could return to employment in the industry due to severe hand injuries.” This company recognized the need for new flame-resistant solutions and has converted to ActivArmr 97-200 (pictured) gloves to better protect its workers.

Extending flame-resistant protection to the hand is the type of innovative personal protective leadership the market has come to expect from Ansell, and the Specialty Markets GBU is proud to contribute to worker safety in the Oil and Gas, Drilling, and Production industries.

Ansell Limited – Annual Report 2013 25 Ansell Global Business Units Sexual Wellness

Highlights

compound annual SKYN is the fastest growing global brand in the condom category. Launched four years growth rate ago it is now present in over 30 countries, 35% achieving a compound annual growth rate of 35 per cent in the last three years.

European Grand Prix Ansell’s eye-catching ring-top packaging for Best Pharmaceutical/ for the premium lubricant range continues Winner to gain new customers as products are Healthcare packaging launched in more markets around the world. Bringing genuine innovation to the market in a way that excites consumers is critical to brand success and growth.

deeper and 25% larger A major technological innovation creating texture on the condom exponentially larger studs (compared to our than anything we have ever made and is 100% regular studded condom*) presented in innovative packaging and makes OrgazMax a given a bold emotional name. breakthrough in texture

Driving innovation

Our approach to innovation is pilot plant enabling our scientists to resulting in the innovative founded on three core tenets: experiment with materials and process feminine hygiene range Amele better understanding of consumer parameters in a highly sophisticated and Starphamra, who we have needs, today and tomorrow; process methodology. Output from the partnered with to validate a process improvement in manufacturing, research programs is applied within of coating an Ansell condom with and strategic partnerships. our manufacturing plants where both unique VivaGel®. This ground the Plant Operations and Engineering breaking technology has been 1. Better understanding of consumer teams trial and monitor improvements shown in lab trials to deactivate needs, today and tomorrow to manufacturing processes. The many viruses that cause Sexually Our Global Innovations team SKYN brand comprises a radical Transmitted Infections. The is regularly engaged with our new material (Polyisoprene) dendrimer technology perfected consumers; understanding the and its production required us by Starpharma over many years is changes in their lifestyles, their to adapt existing manufacturing supported by millions of dollars of unmet needs and the ways in processes. Our team has been highly clinical trials, and Ansell is fortunate which consumers would like successful, continuously improving to be the partner to help bring the brands to engage with them. and implementing manufacturing resulting condom product to market. This research underpins the New processes that have dramatically Product innovation enables us to Product development processes improved both line throughput continually challenge consumers and we undertake, as well as the and material yields. prioritization of products we bring disrupt the paradigms surrounding to the market. A good example 3. Strategic partnerships these global product categories. of this is the textured condom We seek out strategic partnerships As we invest in understanding the OrgazMax, the genesis of which with companies that complement needs of our customers, we commit came from an unmet consumer our aspiration for innovation. to the development of inspiring need for greater stimulation in Exciting examples of these strategic and enticing new possibilities and a condom. partnerships are our joint ventures continue to honor and excel in our with: Futura, launching the unique commitment for the provision of high 2. Process improvement product EPIC™ helping men delay quality and safe consumer products. in manufacturing ejaculation; Riksförbundet För We undertake this at a research level Sexuell Upplysning (RFSU), a where we have a state-of-the-art Swedish non-profit organization * Based on Ansell internal testing.

26 Ansell Limited – Annual Report 2013 Sexual Wellness brands

Customer case study

Ansell introduces a revolution in textured condoms.

SKYN Intense Feel “Unsatisfactory”, a term synonymous with Consumer feedback on traditional textured latex condoms which aim to enhance female pleasure. For women the texture had minimal effect, or if the product was textured enough to meet their expectations, then men complained the thickness compromised and hindered their experience.

We listened to consumers and set out to answer that challenge. Over a two year period a joint project team comprising Marketing, R&D and Operations successfully commercialized the world’s first polyisoprene dotted condom – SKYN Intense Feel. This condom has a unique dotted configuration (patent pending) and its wave pattern is anatomically designed to maximize stimulation for both him and her.

The feedback from consumer trials is overwhelmingly positive. Comments like, “I really got the impression I was wearing nothing… the name really fits” resonated loudly from male participants and at the same time women enthusiastically endorsed the product as a genuine innovation exceeding their expectations. SKYN Intense Feel will be available on shelf in the coming year.

“I really got the impression I was wearing nothing… the name really fits”

Ansell Limited – Annual Report 2013 27 With operations in North America, Regions Latin America and Caribbean, Europe, the Middle East and Africa, and Asia Pacific, Ansell currently operates 52 facilities in 35 countries.

Asia Pacific (APAC) North America

$280m $419m APAC region sales North America region sales 41% 10% Sales from emerging markets Year-on-year EBIT growth 12% $9m Year-on-year sales growth Sales from new products from emerging markets launched in FY13

Launched the new Launched the first-of-its- Amele range of pH kind antibacterial infection friendly feminine hygiene protection medical glove products in Australia in Canada

APAC region strengthened end- The Ansell Guardian value proposition user relationships with innovative continued to deliver customer value partnerships with Ramsay Healthcare for North American Industrial and Group, the National Safety Council Specialty Markets customers by of Australia and celebrated our 25th providing operational cost savings anniversary with important customer, through injury and waste reduction. Toray Japan. Increased end-user The Medical sales team is now fully knowledge in China, together with trained on the Ansell Guardian sales our new emerging markets product process and will be bringing similar portfolio will drive further growth customer savings and value in in China. Customer education was FY14. The acquisition of Trelleborg, top of mind through first-of-its-kind Comasec and PPS opened doors Key Opinion Leader summits in Asia to new market opportunities and and compelling digital customer innovative protection solutions for testimonials in Australia. Ansell customers.

28 Ansell Limited – Annual Report 2013 Year after year, Ansell is located close to the countries At all sites, in all countries, the experiencing sales growth in where the products are sold or same vision is shared: that of a these geographic regions and in close to sources of raw materials, world where people and products emerging markets, such as Russia, for simplified logistics and speedy are optimally protected against the Eastern Europe, Latin America, delivery. A global network of local risks to which they are exposed, China and India. And yet, in spite distributors ensures first-class using the right protection solution of being global, Ansell also remains services to Ansell customers. for the right application. local. Production facilities are

Latin America and Europe, the Middle East Caribbean (LAC) and Africa (EMEA) $101m $572m LAC region sales EMEA region sales

22% 20% Year-on-year sales growth Year-on-year sales growth 35% Year-on-year geographical 23% expansion through more Sales from emerging markets distributors 13% 34% Year-on-year EBIT growth Year-on-year EBIT growth

The integration of the Comasec The LAC region is a significant and acquisition has provided the EMEA fast-growing part of Ansell. With the region sales force with better acquisition of Hércules, a leading geographical coverage and extended personal protective equipment industry verticals focus. Improved company in Brazil, the infrastructure sales effectiveness has been exists for further expansion into achieved through new sales tools and strategic industry verticals, and systems, including Ansell Guardian. combined with the continued growth Infrastructure investment and new of our Industrial, Specialty Markets product innovation has ensured and Medical business, LAC sales are a solid foundation for sustainable expected to exceed $110 million in FY14. growth in emerging markets.

Ansell Limited – Annual Report 2013 29 Corporate Social Responsibility

Our Vision Technology Roadmap Focus Areas

Ansell strives to be Water Use Energy Down recognized for excellence Reduction in corporate environmental, governance and social • Eliminate post processing • Process simplification. production steps. practices. • Alternate curing technologies. • Grip technology process • Alternate energy sources. Our Mission improvement. • Installation of ‘low flow’ We will: equipment in facilities. • deliver profitable growth • Waste water recycle and and become a preferred, water usage optimization. responsible business partner; Raw Material Productivity • honor our commitments Reductions Improvements to safety, ethics, the environment and the • Online washing, drying, communities in which powdering for major • Process automation dipping lines. improvements on all high we operate; and volume lines. • Waste and raw material • attract and retain top reduction through new • Combination of processing talent by valuing equipment designs. steps. teamwork and creating • New equipment retrofits • Reduced footprints of new a great place to work. to reduce changeover equipment. and start-up waste.

At Ansell, Corporate Social Ansell recognizes that its business Ansell recognizes that economic Responsibility means conducting impacts the community, the development needs to be aligned business ethically and transparently environment, and the wider economy. with the health and well-being of and in ways that produce social, We believe that it is good business people, their communities and the environmental, and economic benefits to operate in a way that recognizes environment. Ansell considers that for communities around the world. In these impacts and responds to them it is sound business management for addition to ensuring that it conducts effectively. Ansell acknowledges the a company to address its social and its business ethically and transparently, need to consider the risks and environmental performance as well Ansell is committed to a number of opportunities that they present as economic performance. sustainable and practical initiatives for the Company. The Company is that are designed to make a positive committed to understanding these and lasting contribution to the markets impacts and ensuring its business it serves and the community in general. minimizes any negative impacts arising from its operations.

Diversity and Inclusion Policy contribution of employees from diversity brings to deliver value to different backgrounds, with different our shareholders, customers and the At Ansell we recognize the value and capabilities, perspectives and communities in which we operate. advantages of having a diversified experiences. workforce. Ansell seeks to promote Our policy is to leverage diversity an inclusive culture where employees Ansell embraces all employee and practice inclusion to contribute are encouraged to succeed to the differences including age, gender, to the achievement of Ansell’s best of their abilities. Diversity is ethnicity, and cultural background, strategic objectives. about recognizing and valuing the and recognizes the benefits that

30 Ansell Limited – Annual Report 2013 Corporate Social Responsibility is embedded into the strategy and actions within Ansell, aligning our business strategy to achieve sustainable growth and creating value for shareholders, customers and communities.

Annual Reduction of 20,000 Metric Tons (MT) CO2 Emission by Conversion from Natural Gas to Biomass Boiler in Ansell Lat Krabang Background of the project In 2012, Ansell embarked on its second Biomass Boiler placing it in Bangkok, Thailand. Prior to project implementation, hot water was generated by natural gas-fired boilers with annual CO2 emission amounting up to 39,000 MT.

Project objective Ansell invested approximately US$4 million for a new 23MW hot water generating biomass boiler to:

• reduce CO2 emissions; • reduce energy costs at the site; • use renewable biomass for production of energy; • conservation of fossil fuels; and • reduce greenhouse gas emissions and other pollutants found in fossil fuels.

Carbon-neutral technology Utilizing biomass boilers instead of natural gas boilers provides various environmental and social benefits.

Unlike fossil fuels, CO2 released during In addition, through controlled Project implementation the combustion of biomass materials combustion, the project improves The new biomass boiler was is recaptured by the growth of these environmental quality by reducing commissioned as per plan in same materials, creating a closed not only greenhouse gases, but also March 2013. carbon cycle. Hence, biomass harmful air pollutants like particulates, combustion is considered to be carbon monoxide, hydrocarbons, carbon-neutral and has no net nitrous and sulphur oxides that increases in CO2 released to the are present in natural gas; as these atmosphere. As for our case, this harmful pollutants are not released fuel switch project is estimated to from biomass burning. By combusting reduce approximately 20,000 MT the biomass instead of leaving it to of CO2 emission per annum. decompose, methane emissions can also be avoided.

Ansell Limited – Annual Report 2013 31 Board of Directors

Glenn L L Barnes Magnus R Nicolin Marissa T Peterson Ronald J S Bell B Ag Sc (Melb), CPM, BA, MBA BSc (MECH), MBA BA (Strathclyde) FAMI, FAIM, FAICD, SF Managing Director and (Harvard), Hon Appointed Non-executive Fin, FRSA Chief Executive Officer Doctorate (MGMT) Director in August 2005. Appointed Non-executive since March 2010. Appointed Non-executive Chairman of the Director in September 2005 Director on 22 August Nomination, Remuneration Prior to joining Ansell, and Chairman in October 2006. Member of the and Evaluation Committee. Mr Nicolin, a Swedish 2012. Member of the Audit and Compliance citizen, spent three years Current Directorships: Nomination, Remuneration Committee and Chair with Newell Rubbermaid Director of The Edrington and Evaluation Committee. of the Risk Committee. Inc., most recently as Group. Current Directorships: President, Europe, Middle Current Directorships: Mr Bell is an experienced Chairman of Australian East, Africa and Asia Chair of Oclaro Inc. and international consumer Unity Limited. Pacific. Prior to that he Director of Humana Inc. industry executive with spent seven years with a background of over 30 Mr Barnes has over 20 Esselte Business Systems Mrs Peterson retired from years in highly competitive years of governance Inc. where in 2002 he led executive roles in mid- global branded products. experience in banking and the leveraged buy-out of 2006, having spent the He is a former President financial services, business Esselte from the Stockholm previous 18 years with Sun of Kraft Foods, Europe information, consumer and London Stock Microsystems in Senior and served as executive goods and the not-for- Exchanges. Following Executive positions. She Vice President of Kraft profit sector. He was the buy-out he became has extensive experience in Foods Inc. and brings to involved in the packaged the Chief Executive Officer supply chain management, the Board broad general goods, banking and of Esselte. manufacturing and quality, financial services sectors logistics and distribution, management and marketing for over 30 years, as an Mr Nicolin has also held customer advocacy, and skills particularly in the executive, business leader senior management leadership development. European and North and Director in Australia, positions with Bayer American markets. The Board considers New Zealand, the United AG, Pitney Bowes and Marissa Peterson to be The Board considers Kingdom, United States McKinsey & Company. an independent Director. Ronald Bell to be an of America, Republic of Mr Nicolin holds an MBA independent Director. Ireland, Japan and China. from the Wharton School The Board considers of the University of Glenn Barnes to be an Pennsylvania and a BA independent Director. from the Stockholm School of Economics.

As an Executive Director, Magnus Nicolin is not independent.

32 Ansell Limited – Annual Report 2013 Annie H Lo L Dale Crandall W Peter Day John A Bevan BSc (Bus Adm), MBA CPA, MBA (UC LLB, MBA (Monash), BCom (Eastern Michigan) Berkeley) FCPA, FCA, GAICD Appointed Non-executive Appointed Non-executive Appointed Non-executive Appointed Non-executive Director in August 2012. Director on 1 January 2013. Director in November 2002. Director in August 2007. Member of the Audit and Member of the Audit and Member of the Audit and Chairman of the Audit and Compliance Committee Compliance Committee Compliance Committee, Compliance Committee and Nomination, and Risk Committee. Risk Committee and and member of the Risk Remuneration and Nomination, Remuneration Committee. Evaluation Committee. Mrs Lo was formerly and Evaluation Committee. the Chief Financial Officer Current Directorships: Current Directorships: of Johnson & Johnson’s Current Directorships: Chairman of Orbital Executive Director of Worldwide Consumer and Director of Bridgepoint Corporation Limited and Alumina Limited. Personal Care Group. She Education Inc. Director of SAI Global Mr Bevan is currently retired from this role in late Limited and Federation Mr Crandall has a the Chief Executive Officer 2011, having spent over Centres Limited. background in accounting and Executive Director of 20 years in executive roles and finance and is a former Mr Day was formerly Alumina Limited and brings with Johnson & Johnson. Group Managing Partner Chief Financial Officer for to the Board extensive Mrs Lo has significant for Southern California for Amcor Limited for seven international business experience in directing Price Waterhouse. He was years and has also held experience. Prior to joining business expansion across formerly President and Senior Executive positions Alumina Limited in June the Asia Pacific region Chief Operating Officer with, Bonlac Foods, the 2008 he had a long career and globally as well as of Kaiser Foundation Australian Securities and with the BOC Group Plc in managing healthcare Health Plan and Hospitals Investments Commission, where he was a member business challenges and in the United States. Rio Tinto, CRA and of the Board of Directors regulatory processes. Comalco. He has a and held a variety of senior The Board considers background in finance management positions in The Board considers Annie Dale Crandall to be an and general management Australia, Korea, Thailand, Lo to be an independent independent Director. across diverse industries. Singapore and the United Director. Kingdom. The Board considers Peter Day to be an The Board considers independent Director. John Bevan to be an independent Director.

Ansell Limited – Annual Report 2013 33 Executive Leadership Team

Functional Leaders

1. 2. 3. 4. 5. 6. 7.

1. Magnus R Nicolin 2. Craig Cameron 3. Neil Salmon 4. Giri Peddinti Managing Director and Company Secretary Senior Vice President and Senior Vice President and Chief Executive Officer Chief Financial Officer Chief Information Officer BBus (Acc), CA (Aust) BA, MBA Neil was appointed to the BE (Comp Eng), MBA Chief Financial Officer position effective 15 July 2013 BA, Eco, Politics, Phil, CA (ACMA, CGMA)

5. Steve Genzer 6. William Reilly 7. Francois Le Jeune Senior Vice President – Senior Vice President Senior Vice President Operations and Corporate General Business Development Counsel and Transformational BSc, MBA Initiatives BA, J.D. BEng (Louvain Belgium) and MBA (Cornell NY)

34 Ansell Limited – Annual Report 2013 GBU and Regional Leaders

1. 2. 3. 4. 5. 6. 7.

1. Scott Corriveau 2. Anthony Lopez 3. Peter Carroll 4. Thomas Draskovics President and General President and General President and General President and General Manager – Industrial GBU Manager – Medical GBU Manager – Sexual Manager – Specialty and LAC Region Wellness GBU Markets GBU BA (Bus Admin), MBA BS (Elect Eng), MS BEng, MBA BA (Chem), MBA (Eng Man)

5. Peter Dobbelsteijn 6. Denis Gallant 7. Bob Gaither Senior Vice President Senior Vice President and Senior Vice President and and Regional Director – Regional Director – APAC Regional Director – North EMEA Region Region America Region BMkt BEc (BusSc) BMkt

Learn more about our Executive Leadership Team at: www.ansell.com/about-ansell/executive-leadership-team

Ansell Limited – Annual Report 2013 35 Three-Year Summary of Ansell Limited and Subsidiaries for the year ended 30 June 2013

2013 2012 2011 2013 2012 2011 A$m A$m A$m US$m US$m US$m Income Statement Sales 1,340 1,218 1,220 1,373 1,255 1,207 EBIT 167 149 139 171 153 137 Net financing costs 10 5 4 11 5 4 Income tax expense 16 11 9 17 12 8 Non-controlling interests 4 3 3 4 3 3 Profit attributable 137 130 123 139 133 122 for six months to 30 June 82 65 59 82 66 61 for six months to 31 December 55 65 64 57 67 61 Balance Sheet Cash – excluding restricted deposits(a) 329 246 239 306 247 255 Other current assets 563 417 380 523 419 405 Property, plant and equipment 201 151 141 187 151 150 Intangible assets 583 390 339 541 391 362 Other non-current assets 159 144 117 147 146 126 Total assets 1,835 1,348 1,216 1,704 1,354 1,298 Current payables 235 173 168 219 174 179 Current interest bearing liabilities 97 17 185 90 17 198 Other current liabilities 78 63 72 72 64 76 Non-current interest bearing liabilities 486 284 42 451 285 45 Other non-current liabilities 106 90 71 98 90 77 Total liabilities 1,002 627 538 930 630 575 Net assets 833 721 678 774 724 723 Issued capital 861 862 894 799 866 954 Reserves (85) (109) (105) (79) (109) (112) Retained profits/(accumulated losses) 40 (46) (125) 38 (47) (134) Ansell Limited shareholders’ equity 816 707 664 758 710 708 Non-controlling interests 17 14 14 16 14 15 Total shareholders’ equity 833 721 678 774 724 723 Total funds employed(b) 1,087 776 666 1,009 779 711 Share information Basic earnings per share (cents) 104.6 99.1 92.4 106.5 101.4 91.6 Diluted earnings per share (cents) 104.2 98.9 92.3 106.1 101.2 91.5 Dividends per share (cents) 38.0 35.5 33.0 NA NA NA Net assets per share ($) 6.4 5.5 5.1 5.9 5.5 5.4 General Net cash from operating activities 127 95 129 130 98 128 Capital expenditure 39 37 45 40 38 45 Shareholders (no.) 33,126 30,866 30,874 NA NA NA Employees (no.) 12,596 10,486 10,207 NA NA NA Ratios Return on average shareholders’ equity (%) 18.1 19.0 17.4 NA NA NA EBIT return on funds employed (%) 15.4 19.2 20.9 NA NA NA EBIT margin (%) 12.5 12.2 11.4 NA NA NA Average days working capital 83.1 79.2 75.7 NA NA NA Interest cover (times) 18.0 35.0 39.0 NA NA NA Net liabilities to shareholders’ equity (%)(c) 80.8 52.8 44.1 NA NA NA Number of shares at 30 June (million) 131 131 133 NA NA NA

(a) Cash includes cash at bank and short-term deposits, but excludes restricted deposits which have been classified as other current assets. (b) Total funds employed equals total shareholders’ equity plus interest bearing liabilities less cash – excluding restricted deposits. (c) Net liabilities equals total liabilities less cash – excluding restricted deposits. NA – denotes Not Applicable.

36 Ansell Limited – Annual Report 2013 Corporate Governance Statement

As a Board, we believe that a strong corporate governance framework – with a focus on transparency both internally and externally, and on continuous improvement – translates to a strong company.

We, together with the senior management team, are committed to leading by example. We are confident that we have a robust governance framework in place, but perhaps more importantly we are committed to ensuring that it is respected and that, as an organization, we act in accordance with the spirit of good governance.

A particular focus for the Board this year, as we continue to grow in the global markets in which we operate, has been to ensure that the Company has robust systems for identifying and managing both financial and business risks, and that the Board has an appropriate level of oversight of the governance of risk.

In this context, during the year the Board established a standalone Risk Committee (moving responsibility for the oversight of risk, other than financial risk management, from what was previously the Audit and Risk Committee), which is charged with responsibility to ensure oversight with regard to the risk appetite and risk tolerance levels of the Company by monitoring and advising on the management of all material business risks – including strategic, operational, reputational, ethical and market-related risks; and refocused the responsibilities of the previous Audit and Risk Committee to what is now the Audit and Compliance Committee. This Committee continues to have responsibility for the oversight over all matters related to the financial accounting, financial reporting, internal control systems and financial risk management practices of the Company.

These changes became effective in March 2013, and since then the Committees have agreed to their new Charters and agreed priorities for the coming year, which have been formalized in annual calendars. Further details of the role and responsibilities of our Board Committee and their activities during 2013 are set out in this Report.

Board composition and renewal remains another key focus for Ansell. As a Board, we review our composition regularly, to ensure that it continues to comprise Directors who bring an appropriate mix of skills, experience, expertise and diversity (including gender diversity) to Board decision-making given the growth strategies of Ansell, and the geographic spread of the Company’s operations.

As part of our on-going succession planning process, Mr John Bevan was appointed a Director with effect from 1 August 2012. Mr Bevan’s business experience and extensive international background, which covers many of the regions in which Ansell operates, has further strengthened our Board and complimented our existing expertise as we pursue our global growth objectives.

Following an international search, Mrs Annie Lo was also appointed during the year and will stand for election at the 2013 Annual General Meeting. Mrs Lo brings to the Board a strong and diversified background in finance, and extensive experience in directing business expansion across the Asia Pacific region and globally as well as in managing healthcare business challenges and regulatory processes.

We are delighted to have the benefit of the skills and experience that these two appointments have brought to the Board.

This report sets out the Company’s Corporate Governance practice for the year ending 30 June 2013 and is divided into four main sections:

• optimizing the skills, experience and expertise represented on the Board; • maximising the effectiveness of the way in which the Board operates and interacts with management; • adopting governance policies that result in the Board demonstrating cultural leadership; and • approving Ansell Group governance policies that facilitate the adoption of global values generally throughout Ansell, including its commitment to diversity and to creating an inclusive workplace where everyone is treated equally and fairly and where discrimination, harassment and inequity are not tolerated.

Introduction In accordance with the Company’s Constitution and the Corporations Act, the Company operates through its Board of Directors and management. Corporate governance refers to the effective interaction of the Board and Ansell’s management team, with the Board’s objective to provide effective oversight of the Ansell Group.

In order to ensure this, the Board works under a set of well-established corporate governance policies and charters. These policies are publicly available on the Company’s website, www.ansell.com

Ansell Limited – Annual Report 2013 37 Corporate Governance Statement continued

Introduction continued

The Board regularly reviews the Group’s corporate governance framework, policies and practices to ensure at a minimum that they meet the expectations of our shareholders and evolve in line with global best practice in corporate governance and our own internal processes and practices. As part of the review, the Board also has regard to the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (ASX Principles).

This Corporate Governance Statement outlines the key components of Ansell Limited’s corporate governance framework in place during the year ended 30 June 2013. The Board believes that the Company’s corporate governance policies and practices have complied in all substantial respects with the ASX Principles. A checklist summarizing the Company’s compliance with the ASX Principles is set out in Section 5 of this report.

Section 1 – Optimizing Board Skills, Experience and Expertise Relevant policies and charters (see www.ansell.com)

• Board Charter

1.1 Board composition and planning for succession Ansell is committed to ensuring that the composition of the Board continues to comprise Directors who bring an optimal mix of skills, experience, expertise and diversity (including gender diversity) to Board decision-making. The skills and experience of the current Directors are detailed on pages 55 and 56 of this annual report.

The Nomination, Remuneration and Evaluation Committee has responsibility to:

• periodically assess the skill set required to discharge the Board’s duties, having regard to the nature of the Company’s businesses, geographic priorities and the strategic direction of the Company against the skills currently represented on the Board; and • regularly review and make recommendations to the Board regarding the structure, size and composition of the Board (including mix of skills, knowledge and experience) and the effectiveness of the Board as a whole.

The Board considers it important that it has a mix of Directors with a level of history with the Company, and newer appointments to bring a fresh perspective to discussions. The Board has a general policy that Non-executive Directors should not serve for a period exceeding 15 years, and that the Chairman should not serve in that role for more than 10 years. The Board does not consider this length of tenure would necessarily compromise independence or interfere in a material way with a Director’s ability to act in the best interests of the Company. The Board will, however, continue to assess the application of this policy to each Director having regard to the mix of experience, skills and knowledge then on the Board.

In order to ensure that Directors are able to fully discharge their duties to the Company, all Directors must consult with the Chairman of the Board and advise the Nomination, Remuneration and Evaluation Committee prior to accepting a position as a Non-executive Director of another company.

New Directors are nominated by the Board, and then stand for election at the next Annual General Meeting in order to be confirmed in office. All Directors other than the Managing Director must submit for re-election every three years. The performance of Directors seeking re-election is considered by the Board to enable it to make a recommendation to shareholders in relation to the Director’s re-election.

As a Company with diverse international operations, the Board considers it important that it has members with experience in the major jurisdictions in which we operate. As noted above, the Nomination, Remuneration and Evaluation Committee considers this having regard to the nature of the Company’s operations, geographic priorities and the strategic direction of the Company against the skills currently represented on the Board.

As part of our ongoing succession planning, Mr John Bevan was appointed a Director with effect from 1 August 2012. Following an international search, Mrs Annie Lo was also appointed a Director during the year and will stand for election at the 2013 Annual General Meeting.

38 Ansell Limited – Annual Report 2013 1.2 Induction and on-going education New Directors participate in an induction program that covers the operation of the Board and its Committees, and the Company’s financial, strategic, operational and risk management positions.

Directors also participate in management presentations and analysis to ensure that they are kept up-to-date with developments in the industries in which the Company operates, and to enable them to discharge their duties.

It is also the Company’s practice for Directors to visit some of the Company’s facilities in each year. During 2013, Board meetings were held in conjunction with visits to the Company’s operational head office in Iselin, New Jersey, USA and the ANZ region head office in Melbourne. In addition the Chairman visited our operations in Brazil, with the Chief Executive Officer, following the acquisition of Hércules Equipamentos de Proteção Ltda.

1.3 Majority of independent Non-executive Directors The Board’s policy is that there should be a majority of independent Non-executive Directors. This is a requirement embodied in the Company’s Constitution and the Board Charter, ensuring that all Board discussions or decisions have the benefit of predominantly outside views and experiences, and that the majority of Directors are free from interests and influences that may create a conflict with their duty to the Company.

The requirement under the Constitution is for at least twice as many Non-executive Directors as Executive Directors.

As an additional safeguard in preserving independence, there should be a separation of the roles of the Chairman and the Chief Executive Officer, and the Chairman should be an independent Non-executive Director.

The Board has adopted the definition of independence set out in the IFSA Blue Book (October 2004)* and the Board has developed guidelines to determine materiality thresholds for the purposes of that definition.

The Company currently has eight Directors, one of whom is an Executive Director (the Chief Executive Officer, who is also the Managing Director). All of the Non-executive Directors, including the Chairman, are considered to be ‘independent’.

* Corporate Governance, A Guide for Fund Managers and Corporations – Blue Book, Investment and Financial Services Association, October 2004 (copy available at www.ifsa.com.au).

Section 2 –Maximising Board Effectiveness Relevant policies and charters (see www.ansell.com)

• Board Charter • Audit and Compliance Committee Charter • Risk Committee Charter • Nomination, Remuneration and Evaluation Committee Charter

2.1 Division of responsibility between Board and management The Board has ultimate responsibility for setting policy regarding the business and affairs of the Group for the benefit of the shareholders and other stakeholders, and is accountable to shareholders for the performance of the Group.

The table following summarizes the Board’s main responsibilities and functions, which have been grouped into three areas:

• strategy, planning and monitoring; • shareholder communication and compliance; and • risk management and internal controls.

Ansell Limited – Annual Report 2013 39 Corporate Governance Statement continued

Section 2 – Maximising Board effectiveness continued

Strategy, planning Shareholder communication Risk management and monitoring and compliance and internal controls Approving • corporate strategies, budgets, • procedures to ensure • the Company’s risk plans and policies compliance with applicable management framework and • appointment of the Chief laws, regulations, accounting internal control systems Executive Officer and other standards, ethical standards members of the senior and business practices management team including • shareholder communication the Company Secretary strategies • remuneration of the Chief • certain material market Executive Officer, the Non- announcements executive Directors (within shareholder approved limits) and the policy for remunerating senior executives

Reviewing and • implementation of corporate • implementation of compliance • implementation of risk monitoring strategies, budgets, plans and procedures management framework and policies • timeliness and accuracy of internal control systems • financial and business results information provided to • the Company’s wider risk (including the audit process) in shareholders and the financial management profile order to understand the market • internal processes for financial position of the Group determining, monitoring and assessing key risk areas

Evaluating • performance against corporate • the effectiveness of reporting • the process for assessing strategies, budgets, plans and procedures and mechanisms the effectiveness of risk policies • whether adequate, accurate management practices • the performance of the Chief and timely information is Executive Officer and other provided to shareholders and members of the senior the financial market management team

In carrying out its duties, the Board meets formally at least six times a year, with additional meetings held as required to address specific issues. Directors also participate in meetings of various Board Committees, which assist the full Board in examining particular areas or issues. It is the Board’s practice that the Non-executive Directors meet periodically without the presence of management.

The Board delegates management of the Company’s resources to the executive team, under the leadership of the Chief Executive Officer, to deliver the strategic direction and achieve the goals determined by the Board. Any powers not specifically reserved for the Board have been delegated to the executive team.

The Board is free to alter the matters reserved for its decision, subject to the limitations imposed by the Company’s Constitution and the law.

40 Ansell Limited – Annual Report 2013 2.2 Board Committees As noted above, during the year the Board undertook a review of its Committee structure and as a result of this review:

• established a standalone Risk Committee (moving responsibility for oversight of risk, other than financial risk management, from what was previously the Audit and Risk Committee), which is charged with responsibility to ensure oversight with regard to the risk appetite and risk tolerance levels of the Company by monitoring and advising on the management of all material business risks – including strategic, operational, reputational, ethical and market-related risks; and • re-focused the responsibilities of the previous Audit and Risk Committee to what is now the Audit and Compliance Committee. This Committee continues to have responsibility for the oversight over all matters related to the financial accounting, financial reporting, internal control systems and financial risk management practices of the Company.

Accordingly, as at the date of this Report the Board now has three standing Committees, being the:

• Audit and Compliance Committee; • Risk Committee; and • Nomination, Remuneration and Evaluation Committee.

Each Committee operates under a specific Charter, which is reviewed periodically by the Board. The Board also delegates specific functions to ad hoc Committees of Directors on an ‘as needs’ basis. The powers delegated to these Committees are set out in Board resolutions. In 2010 the Board established a special purpose Business Process Transformation Committee to oversee and report to the Board on matters relating to the Company’s business process transformation project (Project Fusion) This Committee comprised three independent, Non-executive Directors and operates under a specific Charter which sets out its duties and responsibilities. The Committee has been disbanded and its role subsumed by the newly formed Risk Committee.

Further details regarding the two standing Committees that were in place during 2013 (and the remit of the newly reorganized Committees) and the key initiatives undertaken by them during 2013, are set out in the table below.

Audit and Risk Committee (now the Audit and Nomination, Remuneration Compliance Committee) Risk Committee (new) and Evaluation Committee Members W P Day (Chair) M T Peterson (Chair) R J S Bell (Chair) J A Bevan L D Crandall G L L Barnes L D Crandall W P Day J A Bevan A H Lo A H Lo M T Peterson

Composition Committee members are The Committee is required to: The Committee is required to: required to: • comprise a majority of • comprise a majority of • be independent, Non-executive independent, Non-executive independent, Non-executive Directors (minimum of three Directors (minimum of three Directors (minimum of three required) required) required) • be financially literate (minimum • possess the business experience, of one required) skills and acumen to be effective • possess an understanding in the role of the industry in which Ansell operates

Ansell Limited – Annual Report 2013 41 Corporate Governance Statement continued

Section 2 – Maximising Board effectiveness continued

Audit and Risk Committee (now the Audit and Nomination, Remuneration Compliance Committee) Risk Committee (new) and Evaluation Committee Functions Reviewing: Reviewing: Reviewing: • financial statements • the design and implementation • the structure and performance • adequacy of financial controls of the Company’s risk of the Board, the Committees management strategy and individual Directors (and • annual audit arrangements to recommend changes where (internal and external) • active business and material business risks required) • activities of internal and external auditors • current risk management Establishing: • independence and remuneration • the status of risk mitigation • policies and criteria for Non- of external auditor action plans executive Director selection, • processes for identifying, • the Company’s insurance and identifying suitable candidates managing and reporting on strategy and insurance for appointment financial risk arrangements Advising Board on: Monitors: Informing Board on the: • succession planning for both • internal controls and financial • approval, review and the Board and senior executives reporting systems recommendations to principles, • remuneration of Chief Executive policies and strategies for the • the adequacy of financial Officer and the Non-executive management of risks by the reporting and control policies Directors Company • the performance and • senior executive remuneration • approval or recommended independence of the external policy (including incentive plans, changes to the Company’s risk auditor equity awards and service appetite and risk tolerance levels contracts) • the progress of the internal audit plan Advising Board on: • implementation and Advising Board on: effectiveness of systems for • appointment, removal, identifying all areas of business independence and remuneration risk of external auditor • design of adequate policies to • meeting all its financial and manage risks corporate governance • appropriate action to bring the obligations and requirement identified risks within tolerance • the adoption of financial risk levels oversight policies • national and international accounting standards • applicable Company policies, regulatory and statutory requirements

42 Ansell Limited – Annual Report 2013 Audit and Risk Committee (now the Audit and Nomination, Remuneration Compliance Committee) Risk Committee (new) and Evaluation Committee Key activities • agreed an annual calendar • Since its establishment in March • overseeing the international during 2013 of activities for oversight 2013, the Risk Committee has: search for a new non-executive • on-going review of the • agreed an annual calendar of director (resulting in the performance of the internal activities for oversight appointment of Mrs Annie Lo) audit function • considered the operations risk • reviewing CEO and senior • consideration of risk areas management systems, health executive succession planning identified and incorporation and safety, environment, • overseeing benchmarking into the audit plan product stewardship and review of Board, CEO and key • consider and review the property protection practices management personnel Company’s effectiveness of • reviewed the Company’s remuneration and recommending internal controls over financial compliance with policies, remuneration levels to the Board reporting and financial risk procedures and programs, • reviewing and recommending management including the Global Code to the Board the level of fixed • review of key findings of the of Conduct and incentive arrangements external auditor and implement • reviewed anticipated changes for the CEO and senior any planned changes in their to Ansell’s operating management leadership team audit plan environment, and how this • reviewing and recommending • reviewing and overseeing may impact future strategy to the Board the 2013 of the Company’s half- and and capital requirements of remuneration outcomes full-year financial reporting the Company and associated audit • oversee the implementation of the Company’s dual Enterprise Resource Plan (ERP) strategy

Consultation Other Directors, members of Other Directors and members As required, the Committee may management and the principal of management are invited to engage independent professional external audit partner are invited attend Committee meetings advisers to: to attend Committee meetings to to provide reports and/or • assist in identifying high-calibre provide reports and/or guidance guidance where appropriate. Directors and executives where appropriate The Committee may engage • advise on whether the Company’s legal and financial advisers employment policies and to assist with the effective practices, including terms and discharge of its duties conditions, are competitive and consistent with those offered by comparable companies The Committee may also request members of management to attend meetings and/or provide information where appropriate

On-going Committees will meet at least once a year for review and to make sure they are adhering to their specific Review charters. Each committee maintains the need for evolvement in regards to the consistent improvement in the corporate governance environment. The Committees will recommend to the Board the formal adoption of any revised charter

Ansell Limited – Annual Report 2013 43 Corporate Governance Statement continued

Section 2 – Maximising Board effectiveness continued

2.3 Performance evaluation The Board undertakes an evaluation process to review its performance on a regular basis. As noted in Section 1.1 above, the Board reviews the performance of Board members who are seeking re-election to ensure that they provide shareholders with a considered recommendation.

Since the date of the last report the Board formally reviewed its performance using a comprehensive and structured self-assessment approach based on the individual input and responses of Directors. The review included:

• an assessment and consideration of the effectiveness of the Board and its performance against the requirements of its Charter • an assessment of the effectiveness of the structure and the composition of the Board; • an assessment of the Board meeting, performance monitoring and communication processes; and • an assessment of whether the Company’s corporate governance principles were appropriate and reflect ‘good practice’.

The overall conclusion was that the Board comprised an appropriate level of knowledge, skills and experience reflective of the Company’s needs and necessary to maintain effective governance.

Since the date of the last report, the Board has also formally assessed the performance of the Chief Executive Officer. A formal process for the evaluation of the performance of senior executives of the Company is conducted by the Chief Executive Officer on an annual basis and overseen by the Nomination, Remuneration and Evaluation Committee.

Section 3 – Board Governance Policies – Leading from the Top Relevant policies and charters (see www.ansell.com)

• Code of Conduct

3.1 Remuneration Full details of the remuneration policies and practices of the Company and of the amounts paid to Non-executive and Executive Directors and the Company’s senior executives are set out in the Remuneration Report on pages 64 to 79.

3.2 Conflicts of interest In order to ensure that any ‘interests’ of a Director in a particular matter to be considered by the Board are brought to the attention of each Director, the Company has developed protocols to require each Director to disclose any contracts, offices held, interests in transactions, contracts and other directorships which may involve any potential conflict. Appropriate procedures have been adopted to ensure that, where the possibility of a material conflict arises, relevant information is not provided to the Director, and the Director does not participate in discussion on the particular issue or vote in respect of the matter at the meeting where the matter is considered. The Board has reviewed and is comfortable with the veracity of these protocols.

3.3 External advice Any Director can seek independent professional advice at the Company’s expense in the furtherance of his or her duties, subject to prior discussion with the Chairman. If this occurs, the Chairman must notify the other Directors of the approach, with any resulting advice received to be generally circulated to all Directors.

Section 4 – Governance Policies to Promote Global Values Relevant policies and charters (see www.ansell.com)

• Code of Conduct • Share Trading Policy • Continuous Disclosure Policy • Risk Management Policy • Diversity Policy

44 Ansell Limited – Annual Report 2013 4.1 Code of Conduct The Company is committed to upholding the highest legal, moral and ethical standards in all of its corporate activities, and has adopted a Code of Conduct consisting of Guiding Principles and Policies on Business Conduct, which aim to strengthen its ethical climate and provide basic guidelines for situations in which ethical issues arise. The Code of Conduct is available on the Company’s website, www.ansell.com.

The Code of Conduct applies to Directors, executives, management and employees, sets high standards for ethical behaviour and business practice beyond complying with the law, and is based on the following guiding principles whereby the Company:

Strives to uphold high ethical standards in all corporate activities.

Is committed to competing lawfully, fairly and ethically in the market place, consistent with its aim of providing high quality products to its customers.

Is committed to pursuing sound growth and earnings goals, by operating in the best interests of the Company and shareholders.

Guiding Strives to treat all employees and applicants with fairness, honesty and respect. Principles

Expects all employees to work together for the common good and to avoid placing themselves in a position that is in conflict with the interests of the Company.

Is committed to good corporate citizenship and participating actively in, and improving, the communities in which the Company does business.

Expects all employees to conduct themselves in accordance with the guiding principles.

It is the Company’s policy to comply with the letter and spirit of all applicable laws; and no Director, executive or manager has authority to violate any law or to direct another employee or any other person to violate any law on behalf of the Company. Assistance is available to clarify whether particular laws apply and how they may be interpreted.

The Code of Conduct also sets out the Company’s policies in respect of ethical issues such as conflicts of interest, social accountability and fair dealing.

The Company also provides avenues for employees to report their concerns of suspected breaches and seek compliance advice, including anonymously to an independent hotline. Individuals who report their concerns in good faith are protected under the Company’s policies from any form of retaliation.

Employees and Directors are required to participate in compliance training programs to ensure that they remain up-to-date regarding relevant legal and industry developments, as well as ethical practices. During the 2013 financial year compliance training was provided across the organization covering areas such as anti–corruption, trade practices, anti-discrimination and anti-harassment and Ansell’s Global Code of Conduct.

4.2 Dealing in shares Subject to the restriction that persons may not deal in any securities when they are in possession of price-sensitive information, Directors and employees generally may only buy or sell Ansell shares in the period immediately following any price-sensitive announcements, including the half-year and full year results and the Annual General Meeting. The Company also has specific blackout periods, during the four weeks prior to the release of half and full year results, during which time directors and senior executives are prohibited from dealing in Ansell shares.

At other times, Directors dealing in Ansell shares must obtain prior approval from the Chairman, and senior executives must obtain approval from the Managing Director.

Ansell Limited – Annual Report 2013 45 Corporate Governance Statement continued

Section 4 – Governance policies to promote global values continued

It is the Company’s policy that executives who participate in the Ansell Long Term Incentive Plan are prohibited from entering into hedging arrangements in respect of any unvested performance rights.

Where a Director or Executive holds Ansell shares under the terms of a margin lending arrangement, the Company will disclose details to the market where required by law or practice, having regard to the materiality of the arrangement.

4.3 External audit It is Board policy that the lead external audit partner and review partner are each rotated periodically. The Board has adopted a policy in relation to the provision of non-audit services by the Company’s external auditor that is based on the principle that work that may detract from the external auditor’s independence and impartiality, or be perceived as doing so, should not be carried out by the external auditor. Details of the amounts paid to the external auditor for non-audit services performed during the year are set out in the Report of the Directors on page 54. The Board is satisfied based on advice from the Audit and Compliance Committee that the provision of these non-audit services was not in conflict with the role of the external auditor or their independence. The Company’s external auditor has also confirmed its independence to the Directors in accordance with applicable laws and standards as set out in the Report of the Directors.

4.4 Risk management Ansell places a high priority on risk identification and management throughout all its operations, and has processes in place to review their adequacy.

The Company’s risk management practices include:

• a comprehensive risk control program that includes property protection and health, safety and environmental audits using underwriters, self-audits, and engineering and professional advisers; • processes to identify the business risks (both financial and non-financial) applicable to each area of the Group’s activities and the maintenance of a specific framework that prioritizes and monitors the mitigation of those risks; and • regular reporting to the Audit and Compliance Committee or Risk Committee, as appropriate, and the Board.

The diagram below sets out division of risk management functions and responsibilities within the Company.

Division of risk management functions

Board

• Approving risk management framework and internal compliance systems. • Reviewing the Company’s wider risk profile. • Overseeing implementation of risk management policies, procedures and systems.

Audit and Compliance Committee Risk Committee CEO/CFO

• Monitor the risk profile of the • Assessing whether risk • Liaising with and reviewing the Company against the Company’s management procedures and activities of, internal and external risk appetite and risk management systems are operating efficiently audit functions. framework. and effectively in all material • Reviewing adequacy of financial • Monitoring relevant legal and respects. controls. regulatory requirements. • Providing sign-off to the Board • Monitoring relevant legal and • Overseeing the identification, regarding the Company’s regulatory requirements. management and reporting risk management framework of business risks by management. (including internal control systems).

Internal Audit Management

• Reviewing effectiveness of the Company’s risk • Identifying and managing risks (including financial, management framework (including internal control operational, reputational and compliance risks). systems). • Implementing policies, procedures and systems • Reporting to the Audit and Compliance Committee adopted by the Board. regarding operation of financial risk management • Providing internal sign-offs and reporting to the procedures and systems. Audit and Compliance Committee regarding financial risk management procedures and systems.

46 Ansell Limited – Annual Report 2013 4.5 Management assurance – Financial Risk In accordance with the Company’s system of internal sign-offs, the Chief Executive Officer and Chief Financial Officer have provided assurances to the Board that having made appropriate enquiries, they have formed the opinion that:

• the financial records of the Company and its subsidiaries are maintained in accordance with the Corporations Act; • the financial statements for the year ended 30 June 2013 have been prepared in accordance with the relevant accounting standards, and give a true and fair view, in all material respects, of the financial position and performance of the Company and its subsidiaries; and • the assurances given are based on a sound system of risk management and internal control which, in all material respects: – was consistent with the policies adopted and delegated by the Board; – was based on the risk management framework adopted by the Board; and – was operating effectively in relation to financial reporting risks.

4.6 Disclosure to investors The Company has implemented procedures to ensure that it provides relevant and timely information to its shareholders and to the broader investment community, in accordance with its obligations under the ASX continuous disclosure regime.

In addition to the Company’s obligations to disclose information to the ASX and to distribute information to shareholders, the Company publishes its annual reports, annual and half-year results presentations, media releases and other investor relations publications on its website.

The Board encourages full participation of shareholders at the Annual General Meeting to ensure a high level of accountability and discussion of the Group’s strategy and goals. The external auditor attends the Annual General Meeting to answer shareholder questions about the conduct of the audit, and the preparation and content of the auditor’s report.

4.7 Diversity Ansell recognizes that effectively harnessing a talented and diverse global workforce is a key competitive advantage for our business and our success is a reflection of not only the quality and skills of our people, but our ability to channel their backgrounds, experiences, regional points of view and cultural and ethnic differences.

We actively value and embrace the diversity of our employees and are committed to creating an inclusive workplace where everyone is treated equally and fairly and where discrimination, harassment and inequity are not tolerated.

Ansell has formalized its approach to diversity and inclusion with adoption of the Ansell Diversity and Inclusion Policy. The Policy is underpinned by certain key principles including:

• striving to leverage diversity in all its forms (including gender, skills, background and experience) to compete more effectively in the global marketplace and driving customer satisfaction, innovation and company performance; • maintaining fair and equitable recruitment and compensation practices and fostering development and career progression based on performance and merit; • fostering an inclusive culture that treats our workforce with fairness and respect; and • monitoring and measuring our diversity performance and striving for continuous improvement.

To achieve the objectives set out in our policy, we have reviewed and standardised our processes for recruitment to eliminate any barriers to diversity, we have implemented a global grading structure to ensure equity and fairness across the organization, we have developed a global learning and development curriculum to provide career opportunities for every employee and we have implemented succession planning and talent management processes across the organization to identify potential employees whose skills can be further developed.

The proportion of our workforce currently represented by women is set out below:

Ansell Limited Group Board 25% (2 female Board members out of 8) Executive Leadership Team and senior management 23% Total workforce 51%

Ansell Limited – Annual Report 2013 47 Corporate Governance Statement continued

Section 4 – Governance policies to promote global values continued

The Group’s Global Code of Conduct further supports our commitment to diversity within Ansell. It includes a dedicated section on the importance of a workplace free of harassment and discrimination, the consequences for any of our employees found to be harassing or discriminating against other of our employees and reiterates the Group’s commitment that all employment decisions, whether in relation to recruitment, promotion or remuneration, will be based on merit.

Reflecting the extensive global reach of Ansell’s businesses, the Board is committed to ensuring sufficient diversity in its composition, particularly in relation to having directors with experience in our different markets, and will continue to review its Board succession plans to encourage further diversity.

Section 5 – ASX Principles The following checklist summarizes the Company’s compliance with the ASX Principles (as applicable to the Company for the 2013 financial year), and provides reference to where the specific Principles are dealt with in this report:

ASX Principle Reference Compliance Principle 1: Lay solid foundations for management and oversight 1.1 Establish the functions reserved to the board and those Section 2.1 Comply reserved to management. 1.2 Disclose the process for evaluating the performance of Section 2.4 Comply senior executives. 1.3 Provide the information indicated in the Guide to Comply reporting on Principle 1 Principle 2: Structure the board to add value 2.1 A majority of the board should be independent directors. Section 1, 1.3 Comply 2.2 The chair should be an independent director. Section 1 Comply 2.3 The roles of chair and chief executive officer should not Section 1 Comply be exercised by the same individual. 2.4 The board should establish a nomination committee. Section 2.2 Comply 2.5 Disclose the process for evaluating the performance Section 2.4 Comply of the board, its committees and individual directors. 2.6 Provide the information indicated in the Guide Comply to reporting on Principle 2. Principle 3: Promote ethical and responsible decision-making 3.1 Establish a code of conduct and disclose the code Section 4.1 Comply or a summary of the code. 3.2 Establish a diversity policy and disclose the policy or Section 4.7 Comply a summary of that policy. The policy should include requirements for the board to establish measurable objectives for achieving gender diversity and for the board to assess annually both the objectives and progress in achieving them. 3.3 Disclose the measurable objectives for achieving gender Section 4.7 Comply diversity set by the board in accordance with the diversity policy and progress towards them. 3.4 Disclose the proportion of women employees in the Section 4.7 Comply whole organization, women in senior executive positions and women on the board. 3.5 Provide the information indicated in the Guide to Comply reporting on Principle 3. Principle 4: Safeguard integrity in financial reporting 4.1 The board should establish an audit committee. Section 2.2 Comply 4.2 The audit committee should be structured so that it: Section 2.2 Comply

• consists only of non-executive directors; • consists of a majority of independent directors; • is chaired by an independent chair, who is not chair of the board; and • has at least three members.

4.3 The audit committee should have a formal charter. Section 2.2 Comply 4.4 Provide the information indicated in the Guide to Comply reporting on Principle 4.

48 Ansell Limited – Annual Report 2013 Principle 5: Make timely and balanced disclosure 5.1 Establish written policies and procedures designed to Section 4.6 Comply ensure compliance with ASX Listing Rule disclosure requirements and to ensure accountability at a senior executive level for that compliance and disclose those policies or a summary of those policies. 5.2 Provide the information indicated in the Guide to Comply reporting on Principle 5. Principle 6: Respect the rights of shareholders 6.1 Design a communications policy for promoting effective Section 4.6 Comply communication with shareholders and encouraging their participation at general meetings and disclose the policy or a summary of that policy. 6.2 Provide the information indicated in the guide to Comply reporting on Principle 6. Principle 7: Recognise and manage risk 7.1 Establish policies for the oversight and management Section 4.4 Comply of material business risks and disclose a summary of those policies. 7.2 The board should require management to design and Section 4.4 Comply implement the risk management and internal control system to manage the company’s material business risks and report to it on whether those risks are being managed effectively. The board should disclose that management has reported to it as to the effectiveness of the company’s management of its material business risks. 7.3 The board should disclose whether it has received Section 4.5 Comply assurance from the chief executive officer and the chief financial officer that the declaration provided in accordance with section 295A of the Corporations Act is founded on a sound system of risk management and internal control and that the system is operating effectively in all material respects in relation to financial reporting risks. 7.4 Provide the information indicated in the Guide to Comply reporting on Principle 7. Principle 8: Remunerate fairly and responsibly 8.1 The board should establish a remuneration committee. Section 2.2 Comply 8.2 The remuneration committee should be structured so that it:

• consists of a majority of independent directors; • is chaired by an independent chair; and • has at least three members.

8.3 Clearly distinguish the structure of non-executive Section 3.1 Comply directors’ remuneration from that of executive directors and senior executives. 8.4 Provide the information indicated in the Guide to Comply reporting on Principle 8.

Ansell Limited – Annual Report 2013 49 Report of the Directors

This Report by the Directors of Ansell Limited (‘the Company’) is made for the year ended 30 June 2013. The information set out below is to be read in conjunction with the:

• Remuneration Report appearing on pages 64 to 79. • Notes 23 and 25 to the financial statements, accompanying this Report.

Directors and Secretary The names and details of each person who has been a Director of the Company during or since the end of the financial year are:

• Glenn L L Barnes (Chairman); • Magnus R Nicolin (Managing Director and Chief Executive Officer); • Ronald J S Bell; • John A Bevan; • L Dale Crandall; • W Peter Day; • Annie H Lo (appointed 1 January 2013); • Marissa T Peterson; and • Peter L Barnes (retired 22 October 2012).

Particulars of the qualifications, experience and special responsibilities of each Director, as at the date of this Report, and of their other directorships, are set out on pages 55 and 56.

Details of meetings of the Company’s Directors (including meetings of Committees of Directors) and each Director’s attendance are also set out on page 51.

The Company Secretary is Craig Cameron, B Bus (Acc), CA, who was appointed to that position in January 2008. Mr Cameron joined the Company in 1984, and has an accounting, finance and tax background. He has held senior positions in the Corporate Head Office, including the position of Group Chief Accountant.

Principal Activities The activities of the Ansell group of companies (the Group) principally involve the development, manufacturing and sourcing, distribution and sale of gloves and protective products in the industrial and medical gloves market, as well as the sexual health and well-being category worldwide. Ansell operates in four main business segments: Medical, Industrial, Specialty Markets and Sexual Wellness.

Operating and Financial Review The Operating and Financial Review for the Group for the financial year is set out on pages 57 to 63, and forms part of this Report.

State of Affairs During the year the Company continued to progress the seven strategies that have been identified to accelerate growth and create increased shareholder value. The Operating and Financial Review provides additional information on the Company’s seven growth strategies. Other than set out in the Operating and Financial Review no significant changes occurred in the state of affairs of the Group during the financial year.

Likely Developments Likely developments in the operations of the Group are referred to on page 63 of this Report. In the opinion of the Directors, the disclosure of any further information about likely developments in the operations of the Group has not been included in the Report because disclosure of this information would likely result in unreasonable prejudice to the Group.

Significant Events Since Balance Date The Directors are not aware of any significant matters or circumstances that have arisen since the end of the financial year that has affected or may affect the operations of the Group, the results of those operations or the state of affairs of the Group in subsequent financial years.

50 Ansell Limited – Annual Report 2013 Dividends and Share Buy-back The final dividend of 20.5 cents per share (unfranked) in respect of the year ended 30 June 2012 was paid to shareholders on 21 September 2012. An interim cash dividend of 16 cents per share (unfranked) in respect of the half-year ended 31 December 2012 was paid to shareholders on 20 March 2013. A final dividend of 22 cents per share (unfranked) in respect of the year ended 30 June 2013 is payable on 26 September 2013 to shareholders registered on 5 September 2013. The financial effect of this dividend has not been brought to account in the financial statements for the year ended 30 June 2013 and will be recognized in subsequent financial reports.

During the year the Company bought back 223,376 shares at a cost of $3,475,095 as part of the on-market share buy-back program that was announced on 13 February 2013. This buy-back program expires on 12 February 2014.

Details of unissued shares under option at the date of this Report and shares issued during or since the end of the financial year as a result of the exercise of options are set out in Note 6 to the financial statements, which accompany this Report.

Interests in the Shares of the Company The relevant interests of each Director in the share capital of the Company, as at the date of this Report, as notified to the ASX Limited pursuant to the Listing Rules and section 205G of the Corporations Act 2001, were:

1. G L L Barnes 21,178 R J S Bell 7,223 J A Bevan 676 L D Crandall 16,662 W P Day 10,850 M T Peterson 11,293 M R Nicolin 20,042

1. Beneficially held in own name or in the name of a trust, nominee company or private company.

Directors’ Meetings The following table sets out the number of Directors’ meetings (including meetings of Board Committees) held during the financial year and the number of meetings attended by each Director.

Audit and Nomination, Remuneration Board Compliance(1) Risk(2) and Evaluation Held Attended Held Attended Held Attended Held Attended G L L Barnes 9 9 3 3 7 7 R J S Bell 9 9 7 7 J A Bevan 8 8 3 3 2 2 L D Crandall 9 9 4 4 1 1 2 2 W P Day 9 9 4 4 1 1 A H Lo 5 5 1 1 1 1 M T Peterson 9 9 4 4 1 1 M R Nicolin 9 9 P L Barnes 3 3 3 3

Held – Indicates the number of meetings held while each Director was a member of the Board or Committee. Attended – Indicates the number of meetings attended during the period that each Director was a member of the Board or Committee. A meeting of a special Board Committee comprising P L Barnes and M R Nicolin was convened on 14 August 2012 in relation to the review and lodgement of the 2012 Financial Report and the 2012 Full-Year Results Announcement. A meeting of a special Board Committee comprising G L L Barnes and M R Nicolin was convened on 13 February 2013 in relation to the review and lodgement of the Half-Year Results Announcement, Reports and financial statements for the six months ended 31 December 2012. Audit and Compliance Committee meetings were generally attended by all other Directors. The Business Process Transformation Committee, comprising M T Peterson (Chair), G L L Barnes and W P Day met five times during the year. The activities of the Business Process Transformation Committee were absorbed into the Risk Committee following its establishment in June 2013. (1) The Audit and Compliance Committee operated during the year as the Audit and Risk Committee, prior to the establishment of the Risk Committee as a standing Committee of the Board in June 2013. (2) The Risk Committee was established in June 2013 and, as such, only met once during the year.

Ansell Limited – Annual Report 2013 51 Report of the Directors continued

Performance in Relation to Environmental Regulations Group entities are subject to environmental regulation in the jurisdictions in which they operate. The Group has risk management programs in place to address the requirements of the various regulations.

From time to time, Group entities receive notices from relevant authorities pursuant to local environmental legislation. On receiving such notices, the Group evaluates potential remediation or other options, associated costs relating to the matters raised and, where appropriate, makes provision for such costs.

The Directors are not aware of any material breaches of Australian or international environmental regulations during the year.

The Board monitors compliance with the Group’s environmental policies and practices, and believes that any outstanding environmental issues are well understood and are being actively managed. At the date of this Report, any costs associated with remediation or changes to comply with regulations in the jurisdictions in which Group entities operate are not considered material.

Indemnity Upon their appointment to the Board, each Director enters into a Deed of Access, Indemnity and Insurance with the Company. These Deeds provide for indemnification of the Directors to the maximum extent permitted under law. They do not indemnify for any liability involving a lack of good faith. Since the date of the previous Report of the Directors, Mrs Annie H Lo upon her appointment to the Board on 1 January 2013, entered into a Deed on the same terms as those entered into by each Non-executive Director.

No Director or officer of the Company has received the benefit of an indemnity from the Company during or since the end of the year.

Rule 61 of the Company’s Constitution also provides an indemnity in favour of officers (including the Directors and Company Secretary) of the Company against liabilities incurred while acting as such officers to the extent permitted by law. In accordance with the powers set out in the Constitution, the Company maintains a Directors’ and officers’ insurance policy. Due to confidentiality obligations and undertakings of the policy, no further details in respect of the premium or the policy can be disclosed.

52 Ansell Limited – Annual Report 2013 Auditor Independence The Directors received the Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001, as follows:

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

To: The Directors of Ansell Limited

I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2013 there have been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation to the audit.

KPMG

Gordon Sangster Partner

Melbourne 20 August 2013

Ansell Limited – Annual Report 2013 53 Report of the Directors continued

Non-audit Services During the year, the Company’s auditor, KPMG, was paid the following amounts in relation to non-audit services provided by KPMG:

Taxation and Other Services: $47,000 Other Assurance and Advisory Services: $146,000

The Directors are satisfied that the provision of such non-audit services is compatible with the general standards of independence for auditors imposed by, and do not compromise the auditor independence requirements of, the Corporations Act 2001 in view of both the amount and the nature of the services provided and that all non-audit services were subject to the corporate governance procedures adopted by the Company and have been reviewed by the Audit and Compliance Committee to ensure they do not impact the integrity and objectivity of the auditor.

Rounding The Company is a company of the kind referred to in Australian Securities and Investments Commission Class Order 98/100, dated 10 July 1988 and, in accordance with that Class Order, unless otherwise shown, amounts in this Report and the accompanying financial statements have been rounded off to the nearest one hundred thousand dollars.

This Report is made in accordance with a resolution of the Board of Directors made pursuant to section 298(2) of the Corporations Act 2001 and is signed for and on behalf of the Directors.

G L L Barnes Director

M R Nicolin Director

Dated in Melbourne this 20th day of August 2013.

54 Ansell Limited – Annual Report 2013 Directors Glenn L L Barnes, B Ag Sc (Melb), CPM, FAMI, FAIM, FAICD, SF Fin, FRSA Appointed Non-executive Director in September 2005 and Chairman in October 2012. Member of the Nomination, Remuneration and Evaluation Committee.

Current Directorships: Chairman of Australian Unity Limited.

Mr Barnes has over 20 years of governance experience in banking and financial services, business information, consumer goods and the not-for-profit sector. He was involved in the packaged goods, banking and financial services sectors for over 30 years, as an executive, business leader and Director in Australia, New Zealand, the United Kingdom, United States of America, Republic of Ireland, Japan and China.

The Board considers Glenn Barnes to be an independent Director.

Ronald J S Bell, BA (Strathclyde) Appointed Non-executive Director in August 2005. Chairman of the Nomination, Remuneration and Evaluation Committee.

Current Directorships: Director of The Edrington Group.

Mr Bell is an experienced international consumer industry executive with a background of over 30 years in highly competitive global branded products. He is a former President of Kraft Foods, Europe and served as executive Vice President of Kraft Foods Inc. and brings to the Board broad general management and marketing skills particularly in the European and North American markets.

The Board considers Ronald Bell to be an independent Director.

John A Bevan, BCom Appointed Non-executive Director in August 2012. Member of the Audit and Compliance Committee and Nomination, Remuneration and Evaluation Committee.

Current Directorships: Executive Director of Alumina Limited.

Mr Bevan is currently the Chief Executive Officer and Executive Director of Alumina Limited and brings to the Board extensive international business experience. Prior to joining Alumina Limited in June 2008 he had a long career with the BOC Group Plc where he was a member of the Board of Directors and held a variety of senior management positions in Australia, Korea, Thailand, Singapore and the United Kingdom.

The Board considers John Bevan to be an independent Director.

L Dale Crandall, CPA, MBA (UC Berkeley) Appointed Non-executive Director in November 2002. Member of the Audit and Compliance Committee, Risk Committee and Nomination, Remuneration and Evaluation Committee.

Current Directorships: Director of Bridgepoint Education Inc.

Mr Crandall has a background in accounting and finance and is a former Group Managing Partner for Southern California for Price Waterhouse. He was formerly President and Chief Operating Officer of Kaiser Foundation Health Plan and Hospitals in the United States.

The Board considers Dale Crandall to be an independent Director.

Ansell Limited – Annual Report 2013 55 Report of the Directors continued

Directors continued

W Peter Day, LLB, MBA (Monash), FCPA, FCA, GAICD Appointed Non-executive Director in August 2007. Chairman of the Audit and Compliance Committee and member of the Risk Committee.

Current Directorships: Chairman of Orbital Corporation Limited and Director of SAI Global Limited and Federation Centres Limited.

Mr Day was formerly Chief Financial Officer for Amcor Limited for seven years and has also held Senior Executive positions with, Bonlac Foods, the Australian Securities and Investments Commission, Rio Tinto, CRA and Comalco. He has a background in finance and general management across diverse industries.

The Board considers Peter Day to be an independent Director.

Annie H Lo, BSc (Bus Adm), MBA (Eastern Michigan) Appointed Non-executive Director on 1 January 2013. Member of the Audit and Compliance Committee and Risk Committee.

Mrs Lo was formerly the Chief Financial Officer of Johnson & Johnson’s Worldwide Consumer and Personal Care Group. She retired from this role in late 2011, having spent over 20 years in executive roles with Johnson & Johnson.

Mrs Lo has significant experience in directing business expansion across the Asia Pacific region and globally as well as in managing healthcare business challenges and regulatory processes.

The Board considers Annie Lo to be an independent Director.

Marissa T Peterson, BSc (MECH), MBA (Harvard), Hon Doctorate (MGMT) Appointed Non-executive Director on 22 August 2006. Member of the Audit and Compliance Committee and Chair of the Risk Committee.

Current Directorships: Chair of Oclaro Inc. and Director of Humana Inc.

Mrs Peterson retired from executive roles in mid-2006, having spent the previous 18 years with Sun Microsystems in Senior Executive positions. She has extensive experience in supply chain management, manufacturing and quality, logistics and distribution, customer advocacy, and leadership development.

The Board considers Marissa Peterson to be an independent Director.

Magnus R Nicolin, BA, MBA Managing Director and Chief Executive Officer since March 2010.

Prior to joining Ansell, Mr Nicolin, a Swedish citizen, spent three years with Newell Rubbermaid Inc., most recently as President, Europe, Middle East, Africa and Asia Pacific. Prior to that he spent seven years with Esselte Business Systems Inc. where in 2002 he led the leveraged buy-out of Esselte from the Stockholm and London Stock Exchanges. Following the buy-out he became the Chief Executive Officer of Esselte.

Mr Nicolin has also held senior management positions with Bayer AG, Pitney Bowes and McKinsey & Company.

Mr Nicolin holds an MBA from the Wharton School of the University of Pennsylvania and a BA from the Stockholm School of Economics.

As an Executive Director, Magnus Nicolin is not independent.

56 Ansell Limited – Annual Report 2013 Operating and Financial Review

US$ commentary In keeping with past practice, the Company reports in Australian dollars, however United States $ (US$) is the currency in which the global business is managed. The discussions contained in the Operating and Financial Review reflect the US$ results, which can be found in Note 32 of the Financial Statements.

Overview Ansell has endured a difficult external environment to post a significant year on year improvement in its financial results. Sales are up strongly, with a large contribution from acquisitions, as is profitability measured both in terms of Earnings before Income and Tax (EBIT) and earnings per share (EPS). The Group was pleased to announce the acquisitions of Comasec, Hércules, Preferred Surgical Products (PSP) and Guangzhou that all settled during the year. Whilst increasing gearing, the strong operating cash flows particularly in the second half, assisted in priming the Balance Sheet for further growth.

As alluded to above, Ansell encountered flat trading conditions in its two largest markets of EMEA and North America, with the latter also impacted by adverse customer sentiment from the prior year ERP issues. This was despite service levels being much improved during 2012/13. Government austerity measures also saw a focus on reduced healthcare and military spending in many jurisdictions whilst mining and construction sectors also softened in key markets. Foreign exchange translation effects dampened reported sales as well as adversely impacting EBIT.

Despite these headwinds, the Group achieved an 11 per cent year on year improvement in EBIT to $170.5 million and grew EPS by 5 per cent to 106.5 cents. A focus on process improvements in manufacturing, prudent cost control, raw material price reductions and acquisition performance all contributed.

Ansell’s four Global Business Units are described below:

GBU Description of Activities Medical Medical is organised into three segments:

1. Surgical and exam gloves. 2. Healthcare Safety Devices covering a wide range of perioperative safety devices that enhance protection for healthcare workers and patients. 3. Active infection Protection that encompasses gloves, but will also be expanded to a wider portfolio with active infection protection technology.

Industrial Industrial provides hand and upper arm protective solutions for a range of industrial applications and is organised around the following market segments:

1. Automotive. 2. Machinery and equipment. 3. Chemical. 4. Life sciences.

Specialty Markets Specialty Markets focus on the following segments:

1. Specialized application specific gloves for Oil, Gas/Mining, Construction, and First Responder. 2. Specialized retail gloves for DIY and Gardening. 3. Product adjacencies such as clothing, suits and fall protection. 4. Specialized gloves for the Food processing Industry.

Sexual Wellness The Sexual Wellness GBU provides consumers worldwide with high quality condoms, lubricants, feminine hygiene products and vibrating devices. The GBU also supplies many major government and social marketing organizations’ global contracts.

Ansell Limited – Annual Report 2013 57 Operating and Financial Review continued

Overview continued

The GBU’s operate globally in four major regional segments:

• Asia Pacific (APAC) • Europe, Middle East and Africa (EMEA) • Latin America and Caribbean (LAC) • North America

Financial Performance Sales Sales revenue of $1,373 million was up 9 per cent on last year, with acquisitions accounting for $131.7 million. Growth excluding acquisitions on a constant currency basis was 1 per cent and reflected range rationalization and the flat trading conditions referred to above.

Sales performance by GBU was as follows:

• Medical was down 2 per cent to $349.5 million. Strong growth of 16 per cent was achieved in the synthetic surgical and 11 per cent in Surgical Safety categories but was not enough to counter the planned reduction in unprofitable Natural Rubber Latex exam volumes. PSP made a small contribution of approximately $1.9 million, but was largely offset by adverse exchange rate impacts. Reduced governmental healthcare spending in key jurisdictions also impacted this segment. • Industrial grew by 12 per cent to $563.6 million, predominantly due to the acquisition of Comasec, which operates in both the Industrial and Specialty Markets GBU’s. Overall, the impact of weak manufacturing in key markets has negatively impacted growth. Sales of our HyFlex brand were subdued, with AlphaTec and TouchNTuff growing more strongly. However we are excited about our New Product launches that are expected to make a solid contribution in FY14. Whilst these were planned for launch during the year, capacity constraints at our plants caused some delays in their launch. Further plant investments including dedicated pilot testing lines are expected to improve these capacity constraints going forward. • Specialty Markets grew 30 per cent to $230 million driven by the acquisitions of Comasec and Hércules coupled with a full-year contribution from Trelleborg Protective garments. The Household gloves category fell due to lower pricing driven by lower input costs whilst military spending cuts in key markets has seen the Military category fall significantly. • Sexual Wellness was up 5.6 per cent to $229.7 million, which would have been 8 per cent except for foreign exchange translation impacts. The increases were driven by impressive growth in branded products such as SKYN. Further adding to the top line was the launch of amele in Australia and OrgazMax across Australia, Poland and France. Regionally, the North American business continued to be impacted by a subdued trading environment. In addition, although the system is now stable, negative customer sentiment stemming from the Fusion ERP warehousing problems of 2011/12 persisted. Sales suffered as a result, although the last quarter was far more encouraging. The EMEA region saw modest underlying growth after normalizing for acquisition and foreign currency effects, primarily as a result of weak European industrial output and lower pricing on commodity products such as Household and exam gloves. LAC grew strongly due to the Hércules acquisition and also in Mexico following the launch of our new warehouse. Asia Pacific growth came primarily from the Sexual Wellness improvements and strong growth in South East Asia Industrial and Medical whilst the Australian mining and industrial sectors softened.

Profit Gross profit after distribution expenses (GPADE) improved as a percentage of sales to 37.7 per cent from 36.5 per cent last year. A great deal of effort has been put into improving manufacturing processes via our ‘Lean’ improvement initiative and SKU rationalization programs. Additionally, lower raw material costs also helped, however offsetting impacts were encountered in the form of higher labour costs, energy costs, and foreign exchange losses of $2.7 million.

Selling, General and Administration costs increased as a percentage of sales to 25.3 per cent from 24.3 per cent due to higher spending on sales and marketing activities, Guardian hand protection solutions and New Product research and development.

58 Ansell Limited – Annual Report 2013 As advised, EBIT grew a pleasing 11 per cent to $170.5 million, whilst EBIT as a percentage of sales was up marginally on the prior year to 12.4 per cent. The EBIT contribution by GBU is as follows: GBU profitability 2013 2012 2013 2012 2013 2012 EBIT/ EBIT/ Business Segments Sales Sales EBIT EBIT Sales % Sales % Industrial 563.6 504.1 92.0 83.7 16.3 16.6 Medical 349.5 356.4 41.1 39.5 11.8 11.1 Sexual Wellness 229.7 217.3 34.2 33.2 14.9 15.3 Specialty Markets 230.0 177.5 11.7 7.2 5.1 4.1 Total Business Segments 1,372.8 1,255.3 179.0 163.6 13.0 13.0 Corporate costs (8.5) (10.4) 0.6 0.8 EBIT 170.5 153.2 12.4 12.2

Commentary on GBU profitability • The Industrial GBU profit growth came through tight cost control, improved manufacturing efficiencies, lower raw material prices and the Comasec acquisition. • Medical profit growth was largely driven by raw material price reductions, while reduced sales of low margin exam gloves improved gross margins. • Sexual Wellness grew modestly, with EBIT margins falling as a result of significant sales and marketing expenditure in growing SKYN and costs incurred in closing a condom packaging facility in North America. • Specialty Markets grew largely as a result of the Hércules and Comasec contributions, which were offset to an extent by lower pricing on Household gloves and the decline in demand in the military category.

Regional performance is summarized below:

2013 2012 2013 2012 2013 2012 EBIT/ EBIT/ Regional Segments Sales Sales EBIT EBIT Sales % Sales % Asia Pacific 280.4 267.9 65.0 64.0 23.2 23.9 EMEA 572.3 478.4 70.7 62.6 12.4 13.1 LAC 101.3 82.8 14.0 10.4 13.8 12.6 North America 418.8 426.2 29.3 26.6 7.0 6.2 Total 1,372.8 1,255.3 179.0 163.6 13.0 13.0

Commentary on regional profitability • Asia Pacific grew sales primarily due to Sexual Wellness (refer above) but EBIT margins fell, partly due to additional sales and marketing expenditure in Sexual Wellness and soft conditions in Australia’s mining and manufacturing sectors. • EMEA profitability grew significantly year on year due to tight cost control and the impact of the Comasec acquisition. However margins fell slightly due to subdued manufacturing sectors in Europe and lower pricing on Household gloves. • LAC grew strongly mainly due to growth in Mexico and Brazil, whilst Hércules also assisted albeit only for the second half. • North America EBIT profits and margins improved as it continued to optimize its processes following the ERP difficulties of FY12. Whilst the closure of a North American condom packaging plant adversely impacted earnings in the current year, margins still need to improve further.

Net financing costs Net financing costs increased 114 per cent to $10.7 million ($5.0 million in 2011/12) primarily due to acquisition funding.

Taxation expense Income tax expense increased to $16.5 million due to higher profitability. Deferred Tax Asset (DTA) recognition and Non-Operating Tax Items (NOTI) reduced tax expense by $9.7 million (2011/12: $9.8 million). The effective tax rate, excluding DTA and NOTI impacts, was 16.4 per cent (2011/12: 14.8 per cent).

Ansell Limited – Annual Report 2013 59 Operating and Financial Review continued

Financial Performance continued

Profit attributable to shareholders and earnings per share Profit attributable to shareholders and EPS both improved by 5 per cent to $139.2 million and 106.5 cents respectively.

Foreign exchange Ansell has a substantial global footprint and as such, is exposed to exchange rate impacts from both a translational and transactional perspective. The Group manages its transactional exposures via its hedging program, which is explained in Note 24 to the Financial Statements. The current year again saw volatility in foreign exchange markets, with the Group being impacted by a broadly stronger US$ in particular. This had the effect of reducing the reported sales results by approximately $19.7 million, as the major revenue currencies contracted in value (i.e. Euro, Australian $).

As indicated above, the impact on EBIT was a loss of $2.7 million.

Dividends and share buy-back The total dividend for 2012/13 of A38 cents per share is up 7 per cent on 2011/12’s A35.5 cents.

Future dividends will be declared in US cents a share. Shareholders will be formally notified of this change and be offered the opportunity to have their US$ dividend converted to and paid in another currency.

In February 2013, an on-market share buy-back was announced, which resulted in 223,376 shares being bought back during the year at a total cost of $3.6 million (A$3.5 million). The impact of the share buy-back on EPS was immaterial.

Working capital, cash flow management and financing Operating cash flows improved to $130.4 million from $98.4 million, largely through an emphasis on improving working capital management. Recent acquisitions are weaker than Ansell’s existing business in this area and improvements are targeted to bring them to Ansell standards. This will be achieved via greater rigour in credit and collection, SKU rationalization, improved forecast accuracy and improved supplier relationships.

Cash used in Investing activities rose significantly to US$242.3 million with the four recent acquisitions (Comasec, PSP, Guangzhou and Hércules) costing US$208.6 million. Payments for property, plant and equipment of $39.8 million were made to increase Plant Capacity and invest in new infrastructure such as the new Science and Technology Centre in Sri Lanka.

Cash proceeds from the sale of property, plant and equipment related primarily to the sale of a warehouse in China and was down approximately $4 million compared to the prior year.

During the year, new long-term debt totalling $142.5 million with maturities ranging from eight to 12 years was issued. At June 30, 2013, the Company had $305.3 million of cash and $165 million of available unused facilities, with the average maturity of drawn debt being 4.8 years.

Ansell’s Seven Growth Strategies Ansell has previously identified seven growth strategies that it is pursuing in order to achieve its objectives. The following is intended to provide an update on the progress in achieving these strategies.

1. Target defined verticals within the GBUs and regions Over the last two years, Ansell’s acquisition strategy has primarily focussed on Industrial and Specialty Markets via the conclusion of the Comasec, Hércules and Trelleborg transactions. These have been supported this year with a strong emphasis on New Product development. Acquisitions in the Medical GBU have, via Sandel and PSP, targeted hospital safety devices and perioperative products, whilst innovation is seen as a driver of active infection control. The Sexual Wellness GBU has targeted its spending on growing the Branded condom categories into new regions augmented by a small acquisition in China.

2. Accelerate innovation During the year, the Group has expanded its Science and Technology Centre in Colombo, Sri Lanka, whilst also continuing to invest in its facility at Shah Alam, Malaysia. The investments included expanded line capacity to undertake testing of prototypes of new products. All in all Ansell launched 48 new products in FY13 – up fourfold on the average of prior years. Some of the New Product launches in each GBU are summarized on the following page.

60 Ansell Limited – Annual Report 2013 Industrial GBU Launched a number of HyFlex gloves including:

• HyFlex 11-927 a three quarter dipped oil repellent glove with ANSELL GRIP technology. • HyFlex 11-818 a light weight, high durability multi-purpose glove. • HyFlex 11-840 glove provides extreme durability and superior fit for precision handling in abrasive applications. • HyFlex 11-515 a high visibility glove with improved fit and ergonomic characteristics where cut and abrasion resistance properties are important.

These are intended to build on the highly successful HyFlex 11-518 glove that was released in 2011/12. The next generation of HyFlex gloves are expected to offer further points of differentiation which will assist in overcoming the soft trading conditions experienced during 2012/13.

Medical GBU • The Gammex Nitrile Antibacterial Product is a nitrile based ambidextrous glove with an antimicrobial coating (PHMB) applied to the exterior surface of the glove. The aim of the product is to reduce Hospital Acquired Infection risks in nurse/doctor to patient interactions. • Micro-Touch Denta-Glove Nitrile delivers state-of-the-art hand barrier protection to dental professionals around the world and is synonymous with quality, superior comfort and fit.

Specialty Markets • ActivArmr Cold Weather FR Impact Glove is a first to market cold weather flame-resistant glove, providing insulation and a waterproof barrier that will be available for the Oil, Gas and Mining segments. • ActivArmr TouchTech Flyers Glove is a flame-resistant Aviators glove for combat. • VersaTouch and Polar Bear have been released for use in the Food segments and provide enhanced comfort and fit leveraging Ansell’s patented zonal knit technology.

Sexual Wellness • Manix OrgazMax studded condoms, a major technological innovation creating texture on the condom exponentially larger than anything we’ve ever made, presented in innovative packaging and given a bold emotional name.

3. Manufacturing and supply chain efficiencies The Group has sought to improve its manufacturing processes by the adoption of Lean manufacturing principles. With an emphasis on eliminating duplication and minimizing the physical product movements, Lean as a principle has encouraged a culture of continuous improvement to embed itself into our operations area. As a result, the productivity improvements delivered by manufacturing are up significantly against annual productivity historically.

Supply chain efficiencies are being pursued throughout the business, most notably in our Malaysian consolidation warehouse. As we grow in this important region, Malaysia’s strategic importance as both a manufacturing and procurement hub is anticipated to continue.

4. Implement best market practice to build the Ansell franchise and core brands such as HyFlex, Gammex, ActivArmr and SKYN This strategy continues the rationalization of non-core brands, with all new products launched under core brands. Ongoing investments are made to drive the adoption, awareness and improved relevance through improved design, visibility and impact of our core brands.

5. Emerging markets During the year, the Group has seen emerging markets grow to represent approximately 27 per cent of Group revenue up from 25 per cent of sales in 2011/12. Acquisitions added to this growth with the Hércules acquisition based out of São Paulo in Brazil, being an exciting addition to our Specialty Markets offering. In addition, the Guangzhou acquisition in China, continues to entrench Ansell’s growing position in China’s Sexual Wellness market.

The Group is also continuing to invest in personnel in terms of additional headcount and training to build local knowledge and promote customer intimacy.

We have also launched a range of brands including Edge and Medi-Grip, which are aimed specifically at emerging markets.

Ansell Limited – Annual Report 2013 61 Operating and Financial Review continued

Ansell’s Seven Growth Strategies continued

6. Streamline and improve core processes The ERP difficulties experienced during 2011/12 are now largely behind us. The North American platform is stable with the local activities of recent acquisitions such as Comasec and Trelleborg fully integrated onto the Oracle IT system. Furthermore, the Group is continuing to invest in ERP systems as it works toward implementing SAP into its EMEA Industrial and Specialty Markets businesses. Preliminary design and testing is well advanced, and the go live date is anticipated to occur during the first half of FY14.

7. Leverage strong Balance Sheet and cash flow With $208.6 million spent on acquisitions, Ansell still has a considerable capacity to grow as evidenced by its operating cash flow generation of around $130 million for the year. In addition, the Group has invested in expanded manufacturing and research facilities as already discussed. Further investments to increase capacity are planned. In addition, the Group will continue to explore attractive investments that fit the relevant criteria we require for growth.

Risk The risk management processes are summarized in the Corporate Governance Statement on pages 37 to 49. Below are specific risks identified and mitigated by management and considered by the Board during the year.

Enterprise risk management Ansell’s risk management framework provides for the production of a Group risk matrix, which sets out Ansell’s top risks and the steps taken to mitigate those risks. These risks are rated on the basis of their potential impact on the Group as a whole after taking into account current mitigating actions. Listed below are some of the top risks faced by the Group, however investors should be aware that there are other risks not listed below associated with an investment in Ansell.

Systems and technology Ansell relies on the continuing operation of its information technology platforms. Interruption, compromise or failure of these platforms could affect Ansell’s ability to service its customers effectively. The Group has completed a first wave of improvements in North America and is in the process of upgrading its IT systems in part of its European operations.

Emerging markets instability The Group is continuing to expand its presence in emerging markets. Instability in those markets is possible and could arise from geopolitical, regulatory or other factors beyond the Group’s control.

Major incident at a significant manufacturing site The Group has a diverse and expansive manufacturing and supply chain footprint. However financial losses stemming from a natural disaster, civil or labour unrest, terror incident, major fire or other incident are possible.

Acquisitions It is possible that acquisitions could underperform against their initial business case following their integration into the Group.

Foreign exchange risk The Group’s foreign exchange risks and strategies are detailed in Note 24 to the Financial Statements.

62 Ansell Limited – Annual Report 2013 Outlook Ansell’s forward planning considers both the 2014 budget and its long range plan. The long range plan involves the execution of its seven growth strategies as outlined above with the budget being more targeted to specific areas. Some of these initiatives by GBU are as follows:

Industrial • Continue to integrate the Comasec business in accordance with the acquisition business case. • Successfully grow the recent New Product launches whilst optimizing the portfolio and the three core brands HyFlex, AlphaTec and TouchNTuff. • Further expand manufacturing capacity to facilitate growth and eliminate bottlenecks in the supply chain.

Medical • Support recent New Product launches, whilst focusing on further New Product development and commercialization primarily under the Gammex brand. • Focus on emerging market support particularly in the Medi-Grip range. • Dedicated sales model for the Safety Device Products from the Sandel and PSP ranges. • Further expand manufacturing capacity, particularly in the Synthetic Surgical segment.

Specialty Markets • Successfully grow the recent New Product launches whilst optimizing the portfolio of ActivArmr branded innovative solutions. • Pursue an improved model for Retail Products such as DIY and gardening gloves. • Integrate the Hércules and Comasec businesses whilst further growing the Clothing category. • Drive growth in the Food channel through multiple launches of innovative VersaTouch branded product.

Sexual Wellness • Continue to invest in New Product development in ‘mother brand’ categories. • Continue growth of the SKYN product range in China and other priority markets such as Brazil, Poland, France and the US. • Expand plant capacity as we expand further into Japan, India and Turkey.

In addition, the Group will explore process improvement opportunities as it seeks to optimize its ERP investments to more accurately service our customer’s needs.

Global economic factors are expected to continue having a dampening effect particularly in EMEA and Asia Pacific, despite a more positive trend from North America and LAC.

The Group is looking forward to yet another successful year in 2013/14.

Ansell Limited – Annual Report 2013 63 Remuneration Report

The Directors of Ansell Limited present the Remuneration Report prepared in accordance with section 300A of the Corporations Act for the Group for the year ended 30 June 2013. This Report, which has been audited by KPMG, forms part of the Report of the Directors.

This Remuneration Report outlines Ansell’s remuneration philosophy and strategy together with details of the remuneration information of Key Management Personnel (KMP) in accordance with the requirements of the Corporations Act.

For the purposes of this Report the Board has determined that in addition to the Non-executive Directors, the KMP of the Group comprise the members of the Executive Leadership Team, listed below, who have the authority and responsibility for planning, directing and controlling the activities of the Group. The use of the term Senior Executives in this Report is a reference to direct reports of the CEO.

Table 1 – Key Management Personnel Non-executive Directors Glenn L L Barnes Ronald J S Bell John A Bevan L Dale Crandall W Peter Day Annie H Lo (appointed 1 January 2013) Marissa T Peterson Peter L Barnes (retired 22 October 2012)

CEO and other Key Management Personnel Magnus R Nicolin Managing Director and Chief Executive Officer (CEO) Peter B Carroll President and General Manager – Sexual Wellness GBU Scott R Corriveau President and General Manager – Industrial GBU Thomas Draskovics President and General Manager – Specialty Markets GBU Steve Genzer Senior Vice President – Operations Rustom F Jilla Senior Vice President and Chief Financial Officer (CFO) (ceased employment 15 April 2013)(1) Anthony Lopez President and General Manager – Medical GBU and LAC Region

(1) As announced to the market during the year, Mr Neil Salmon was appointed as CFO, effective 15 July 2013 and as such full details of his remuneration will be included in the Company’s 2014 Remuneration Report. Mr Francois Le Jeune acted as CFO during the period between Mr Jilla’s resignation and Mr Salmon’s appointment, however was not a member of the Key Management Personnel during this period.

Remuneration Philosophy and Strategy Our remuneration philosophy is designed to provide a link between the achievement of our strategic objectives and executive reward. It is designed to reward, motivate and retain the Company’s senior management team, with market competitive remuneration and benefits, to support the continued success of our businesses and the creation of shareholder wealth.

We continue to adapt our remuneration framework to the changing external environment, as well as our growth and performance goals and our desire to recognize the contribution of our people. We are constantly working to make our remuneration structures clearer, more transparent, and applicable to all our people.

Accountability to shareholders is very important at Ansell and we are committed to simple and transparent reporting.

At Ansell, remuneration for the CEO and Senior Executives is determined by reviewing what is generally paid for similar roles in similar businesses in the relevant geographic location. This is not a simple matter given that Ansell is an international company made up of a diverse group of executives working in a range of different countries. Furthermore, their responsibilities extend beyond their own geographic location.

64 Ansell Limited – Annual Report 2013 The principles of Ansell’s executive remuneration strategy, frameworks and programs are designed to:

• apply a pay for performance philosophy that directly links executive reward to the achievement of individual results and the strategic goals and overall performance of the Group; • align remuneration to business outcomes that deliver value to shareholders; • balance incentives to appropriately reward superior performance in the short term and sustained performance over the long term; • drive a performance culture by setting challenging objectives and ensuring that executives are remunerated in a way that recognizes and rewards individual performance; and • ensure remuneration is competitive in the relevant employment market place to support the attraction, motivation and retention of executive talent.

We remunerate the CEO and Senior Executives using a combination of fixed and variable plans, with a greater emphasis on variable performance-based plans. Performance metrics are carefully selected to ensure alignment with business objectives.

Remuneration Governance The Board is ultimately responsible for determining the remuneration strategy and structure and quantum of remuneration for the executives of the Company that supports and drives the achievement of Ansell’s strategic objectives. The Nomination, Remuneration and Evaluation (NRE) Committee is responsible for reviewing and recommending to the Board the remuneration policy, strategy and structure for Ansell’s Board, the CEO and Senior Executives. Where appropriate, the Committee seeks and considers advice from independent external remuneration advisers. The Committee has in place a process of engaging and seeking advice from external remuneration advisers and ensures remuneration recommendations in relation to Key Management Personnel are free from undue influence by management.

Aon Hewitt has been engaged by the Committee in accordance with this structure to provide advice and recommendations in respect of Key Management Personnel. During the 2013 financial year the following key services were provided by Aon Hewitt:

• benchmarking of Board, CEO and Key Management Personnel remuneration; • advice and assistance to review Key Management Personnel remuneration arrangements; • advice and assistance to review the CEO’s remuneration arrangements; • advice and assistance with the Remuneration Report; and • ad-hoc advice as requested.

Aon Hewitt has provided a declaration to the Committee confirming that the recommendations provided on Key Management Personnel remuneration arrangements were made free from undue influence from any member of the Company’s Key Management Personnel and the Board is satisfied of this having regard to the processes and structure in place. The fees paid to Aon Hewitt for their advice and remuneration recommendations were $53,978.

As part of the Board’s commitment to maximizing the performance of the Company and shareholder wealth, executive performance is assessed annually against agreed performance objectives set at the commencement of the relevant financial year. So far as practical, objectives aim to be Specific, Measurable, Achievable, Relevant and Time bound (SMART).

The NRE Committee considers that a robust performance review system is essential in ensuring a strong link between remuneration and performance. The performance of the Chief Executive Officer is reviewed by the Non-executive Directors of the Board. The performance of the Chief Financial Officer and all other Senior Executives is reviewed by the Chief Executive Officer and overseen by the NRE Committee and the Board.

Section 1 Company Performance and Link to Reward The link between company performance and executive reward is provided by:

(i) requiring a significant portion of executive remuneration to vary with the short-term and long-term performance of the Company; (ii) applying challenging financial and non-financial measures to assess performance; and (iii) ensuring that these measures focus executives on strategic business objectives that create shareholder wealth.

Ansell Limited – Annual Report 2013 65 Remuneration Report continued

Section 1 – Company Performance and Link to Reward continued

The following graph shows the performance of Ansell’s share price compared to the S&P/ASX 200 Accumulation Index over the period 1 July 2008 to 30 June 2013. The Ansell share price has outperformed the S&P/ASX 200 Accumulation Index reflecting the strength of Ansell as a world leader in providing superior health and safety protection solutions and the success of the Company’s growth strategies.

Ansell Share Price Performance 75% Ansell Limited S&P/ASX 200 50%

25%

0%

-25%

Feb 11Apr 11Jun 11 Oct 11 Dec 09Feb 10Apr 10Jun 10Aug 10Oct 10Dec 10 Aug 11 Dec 11Feb 12Apr 12Jun 12Aug 12Oct 12Dec 12Feb 13Apr 13Jun 13Aug 13

Ansell has a strong track record of providing solid Earnings per Share growth, which is considered to be a driver of the creation of shareholder wealth and a strong track record of providing steady reliable dividend growth.

Earnings Per Share (US Cents)

106.5 101.4 91.6 79.7

66.1 66.3

2008 2009 2010 2011 2012 2013

Dividends Per Share (AUD Cents)

22.0 20.5 19.0 17.5 16.0 15.5

Final 15.0 16.0 13.0 14.0 11.0 12.0

Interim 2008 2009 2010 2011 2012 2013

66 Ansell Limited – Annual Report 2013 The table below summarizes key indicators of the performance of the Company and relevant shareholder returns over the period from 2009 to 2013. In reviewing these indicators it should be recognized that the Company’s predominant global currency is the US dollar, the Company’s global businesses are managed in US dollars and the majority of the Senior Executives operate out of the Company’s operational headquarters located in the United States and therefore are paid in US dollars. Further details of how remuneration outcomes for FY13 were aligned with some of these performance indicators are detailed in the relevant annual incentive and long-term incentive sections below.

Table 2 – Key indicators of Company Performance and Shareholder Return

2009 2010 2011 2012 2013 Sales (US$m) 1,002.9 1,086.2 1,206.9 1,255.3 1,372.8 Sales (A$) 1,352.1 1,230.6 1,219.8 1,218.3 1,340.0 EBIT (US$m) 107.3 127.3 136.9 153.2 170.5 EBIT (A$m) 142.4 143.1 138.8 149.4 167.2 Profit Attributable (A$m) 121.4 119.4 122.7 130.0 136.8 Share Price at 30 June (A$) 8.77 13.13 14.16 13.20 17.63 EPS – US$ cents 66.3 79.7 91.6 101.4 106.5 EPS – A$ cents 89.2 89.6 92.4 99.1 104.6 Full-year dividend (A$) 0.28 0.305 0.33 0.355 0.38 Total Shareholder Return % p.a.(1) (4.8) 48.4 7.8 (6.5) 32.9

(1) Total shareholder return, is broadly, a measure of the return to shareholders provided by movements in the Company’s share price plus any dividends paid in respect of the relevant financial period.

Over the period from 1 July 2008 to 30 June 2013:

• the compound growth in total shareholder return (movement in the Company’s share price plus dividends received) was 15.7 per cent; • the compound growth rate in earnings per share (EPS) in US dollars has been 10.0 per cent; and • the compound growth in full-year dividend has been 7.2 per cent.

Section 2 Non-executive Directors’ Remuneration A. Policy The table below sets out the key principles relating to Non-executive Directors’ remuneration.

Principle Comment Aggregate Board The current aggregate fee pool for Non-executive Directors of $1,250,000 was approved by and Committee shareholders at the 2010 Annual General Meeting. fees are approved by shareholders (Note: Some benefits are payable outside of the shareholder-approved cap – refer table 3 for details.)

Remuneration To preserve independence and impartiality, no element of Non-executive Director remuneration is is structured linked to the performance of the Company. However, to create alignment between Directors and to preserve shareholders, the equivalent of at least 10 per cent of gross annual fees must be invested to acquire independence Ansell shares at market value. whilst creating alignment Since the end of the 2013 financial year the Board has reviewed and subsequently revised the rules, now requiring Non-executive Directors to invest an appropriate percentage of gross annual fees to acquire Ansell shares at market value, to achieve a shareholding of two times annual Board fees within a period of 10 years.

Ansell Limited – Annual Report 2013 67 Remuneration Report continued

Section 2 – Non-executive Directors’ Remuneration continued

Principle Comment Fees are set by Board and Committee fees are set by reference to a number of relevant considerations including: reference to key considerations • responsibilities and risks attaching to the role of Director; • time commitment expected of Directors; • fees paid by peer companies; • independent advice received from external advisers; and • the global nature of our businesses (to ensure that the Director’s fee attracts and retains the best international Directors).

No retirement No additional benefits are paid to Non-executive Directors upon their retirement from office (i.e. only benefits contributions to applicable superannuation funds during their term of office).

Regular reviews of The Board periodically reviews its approach to Non-executive Director remuneration to ensure it remuneration remains in line with general industry practice and best practice principles of corporate governance.

Element of 2013 remuneration framework Fees Fees are not linked to the performance of the Company so that independence and impartiality is maintained. Directors are required to invest a minimum of 10 per cent of their gross fees in acquiring shares on market, and may elect to invest a higher proportion.

As a result of our ongoing review of the market competitiveness of our fees to attract and retain the best international Directors available and as part of the Board’s succession planning, we propose to ask shareholders for an increase in the maximum fee pool available at the 2013 Annual General Meeting.

Other fees/benefits Directors are permitted to be paid additional fees for special duties, including fees paid for serving on ad hoc projects or transaction-focused committees.

Post-employment Superannuation contributions are made at a rate that satisfies the Company’s statutory superannuation obligations. No additional retirement benefits are paid.

B. Components of remuneration Reflecting the Board’s focus on long-term strategic direction and corporate performance rather than short-term results, remuneration for the Chairman and other Non-executive Directors is structured with a fixed fee component only. To reflect the global representation that exists in the composition of the current Board (which includes both US and UK resident Directors), Directors are paid in their local currency based on exchange rates agreed by the Board at the beginning of the financial year. No changes were made to the underlying Australian dollar Non-executive Director fee levels during the year.

68 Ansell Limited – Annual Report 2013 The table below summarizes the components of Non-executive Director remuneration.

Table 3 – Elements of Non-executive Directors’ remuneration Included in the Shareholder Element Description Approved Cap? Board fees: Yes Chairman A$242,500 Other Directors A$97,000 / US$97,000 / £61,780

Committee fees: Yes Chair of the Audit and Compliance A$24,250 / US$24,250 / £15,445 (2.5 times the Committee fee) Committee Chair of the Nomination, Remuneration A$19,400 / US$ 19,400 / £12,356 (2 times the Committee fee) and Evaluation Committee and Chair of the Risk Committee Committee member A$9,700 / US$9,700 / £6,178 (10 per cent of the Board fee)

Travel allowance A$10,000 / US$10,000 / £6,369 Yes

Superannuation Superannuation contributions are made on behalf of the Non- Yes executive Directors at a rate of 9 per cent, which satisfies the Company’s statutory superannuation obligations.

Other fees/benefits Non-executive Directors are permitted to be paid additional No fees for special duties or exertions, including fees paid for serving on ad hoc projects or transaction-focused committees which, for the 2013 financial year, included the Business Process Transformation Committee. The fees payable to the Chair and members of this Committee are the same as those payable to the Chair and members of the Nomination, Remuneration and Evaluation Committee.

In addition, Directors are also entitled to be reimbursed for all business related expenses, including travel expenses as may be incurred in the discharge of their duties.

C. Remuneration of Non-executive Directors Table 4 – Non-executive Directors’ remuneration 2013 Superannuation Fees (1) Contributions Total $ $ $ G L L Barnes 247,030 – 247,030 R J S Bell £85,446 £2,368 £87,814 J A Bevan 111,016 9,991 121,007 L D Crandall US$141,208 US$3,713 US$144,921 W P Day 131,250 11,812 143,062 A H Lo 65,157 1,969 67,126 M T Peterson US$144,527 US$3,923 US$148,450 P L Barnes(2) 89,776 5,490 95,266

2012 Superannuation Fees (1) Contributions Total $ $ $ P L Barnes 270,023 15,775 285,798 G L L Barnes 148,349 – 148,349 R J S Bell £84,688 £2,283 £86,971 L D Crandall US$140,730 US$3,763 US$144,493 W P Day 126,400 11,376 137,776 M T Peterson US$145,972 US$3,860 US$149,832

(1) Includes amounts payable to the members of the Business Process Transformation Committee – M T Peterson (Chair), G L L Barnes and W P Day. (2) Retired 22 October 2012.

Ansell Limited – Annual Report 2013 69 Remuneration Report continued

Section 2 – Non-executive Directors’ Remuneration continued

D. Non-executive Directors’ Share Plan The table below contains details of the shares acquired during the year on behalf of the Non-executive Directors out of their after-tax fees through participation in the Non-executive Directors’ Share Plan.

Shares are acquired quarterly on the ASX at the prevailing market price and are registered in the name of the Director, but are subject to a restriction on dealing until the Director ceases to hold office.

Shares were purchased on market (at no discount) on behalf of the Directors in September 2012 (at $15.62 per share), December 2012 (at $15.46 per share), March 2013 (at $15.73 per share) and June 2013 (at $18.40 per share).

Table 5 – Number of shares acquired by Non-executive Directors in the 2013 financial year G L L Barnes 1,383 R J S Bell 774 J A Bevan 676 L D Crandall 813 W P Day 801 M T Peterson 834

Section 3 CEO and Senior Executive Remuneration A. Policy The diagram below illustrates the key aspects of the Company’s remuneration policy for Senior Executives, including the CEO. The Remuneration policy is designed to:

Create shareholder value. Reward, motivate and retain key Be flexible enough to reflect local executives. market conditions.

Pay for performance Total remuneration set by reference to local geographic market at: • 62.5th percentile for target performance; and • 75th percentile for stretch performance.

Fixed remuneration At-risk STI At-risk LTI 25-50% 50-75% (at target levels of performance) Based on: Targets linked to: Challenging and transparent targets • market rate for job skills; • individual; linked to the creation of shareholder value. • job requirements; and • business unit; and • individual performance. • corporate performance.

Forfeiture and Clawback Ansell’s incentive plans provide for unvested awards to be forfeited in the event of fraud, gross misconduct or the material misstatement of the financial statements by executives and allow clawback of vested awards in those circumstances.

70 Ansell Limited – Annual Report 2013 Elements of 2013 Remuneration Framework Fixed remuneration Fixed remuneration is based on the executive’s responsibilities, performance, qualifications, experience and location. In setting fixed remuneration reference is made to Ansell’s peers in similar sized companies, in similar industries operating in similar jurisdictions. During the year salary increases across the Company were relatively modest at an overall average of 3 per cent. The fixed remuneration for the majority of the Executive Leadership Team, including the CEO, was increased by 3 per cent.

Annual incentive Participation in the Company’s annual short-term incentive program gives executives the opportunity to earn a cash bonus subject to the achievement of performance targets based on annual growth in sales revenue, EBIT, profit attributable, maximizing plant performance, improving free cash flow and agreed personal objectives. The Annual incentive puts a portion of executive remuneration ‘at risk’ and encourages the achievement of the Company’s shorter-term strategic objectives.

Long-term incentive Participation in the Company’s long-term incentive arrangements gives executives the opportunity to achieve a cash award and allocation of shares on the vesting of performance share rights, subject to the achievement of performance targets based on earnings per share growth over a rolling three-year period. The long-term incentive is designed to link Senior Executive reward with the creation of shareholder value.

During the year, the Board introduced a ‘gateway’ condition which must be met before any awards can vest. The gateway requires a minimum level of return on equity (which is measured against the Company’s weighted average cost of capital) to ensure that our capital is being employed efficiently and earnings growth is translating to shareholder value.

The Board also reviewed the EPS growth targets and determined that the appropriate growth targets over the three-year performance period for the long-term incentive grant in 2013 were:

• threshold 7 per cent per annum EPS growth; • target 8 per cent per annum EPS growth; and • stretch 12 per cent per annum EPS growth.

Post-employment Executives may be entitled to post-employment benefits, depending on the circumstances in which their employment is terminated.

The following chart sets out the average remuneration mix for Senior Executives, including the CEO, for the achievement of target performance during FY2013:

Remuneration Mix

Fixed CEO Remuneration STI 25% LTI 50% 25%

Fixed Senior Remuneration STI 21% LTI 37% Executives 42%

B. Components of remuneration i. Fixed remuneration Fixed remuneration comprises base salary plus contributions to superannuation and pension plans in accordance with relevant legislation or as contractually required and is set to attract and retain executives.

Base salary, which is expressed in local currency, is set having regard to an individual’s responsibilities, performance, qualifications, experience and location and having regard to the market rate for a comparable role.

Ansell Limited – Annual Report 2013 71 Remuneration Report continued

Section 3 – CEO and Senior Executive Remuneration continued ii. At-risk remuneration Annual incentive Table 6 – Summary of the 2013 Short Term Incentive Plan What is the STI and who The annual Short Term Incentive Plan (STI) is a cash-based plan that involves linking specific participates? targets with the opportunity to earn incentives based on a percentage of base salary for Senior Executives.

Why does the Board The STI is designed to put a large proportion of annual executive remuneration ‘at risk’ against consider the STI to be an meeting targets linked to Ansell’s annual business objectives. appropriate incentive?

What is the maximum In relation to members of the Senior Executive Team, this comprises an amount equal to amount executives can 50 per cent (100 per cent for the CEO) of their fixed annual remuneration for target earn under the STI? performance, and up to 100 per cent (200 per cent for the CEO) of their fixed annual remuneration for performance that is well in excess of target performance.

What are the performance Performance measures for 2013 were based on a mix of improvement across Ansell Limited, conditions for the STI? the GBUs and the regions in sales revenue (sales), earnings before interest and tax (EBIT), plant performance, free cash flow and, for the CEO and CFO with more direct responsibility for overall corporate performance, profit attributable to shareholders (Profit Attributable).

In addition, the performance of each Senior Executive was assessed against key strategic objectives specific to their role and responsibilities, as determined by and agreed with the CEO (and, in the case of the CEO, by the Non-executive Directors).

The hurdles were set so that achievement of the internal financial goals (business plan) and personal objectives result in 100 per cent of the award being earned.

Vesting under the STI commences at threshold levels (50 per cent of the STI target levels), which were set at 95 per cent of the 2013 business plan goals. Additional incentive payments were available for performance exceeding target objectives.

Why were these The Board considers these performance measures to be appropriate as they are aligned with performance conditions the Company’s objectives of delivering profitable growth and improving shareholder return. chosen? In addition, executives have a clear line of sight to the targets and are able to affect results through their actions.

Who assesses performance The NRE Committee assesses performance against the conditions in respect of the CEO and when? and makes a recommendation to the Board. The CEO assesses the performance against the conditions in respect of other Senior Executives and makes recommendations to the NRE Committee. Performance against the hurdles is determined, and incentives paid, following the completion of the audit of the accounts for the financial year.

To what extent were In a challenging global trading environment the Company produced strong US dollar results performance conditions with sales increasing by 9 per cent, EBIT increasing by 11 per cent and Profit Attributable met during the year? increasing by 5 per cent. The Industrial and Specialty Markets GBUs achieved solid growth at the sales line with the Medical GBU achieving good growth at the EBIT line. Free cash flow was very strong at $128 million up from the previous year’s $97.2 million. The level of performance achieved in respect of the 2013 STI performance measures was as follows:

• Sales – the internal targets for Ansell Limited sales were not met and GBU sales targets were not met in the majority of cases, however the internal target for EMEA region sales was met between threshold and target and LAC region sales achieved its stretch target. • EBIT – the internal target for Ansell Limited EBIT was met between threshold and target, the Industrial GBU EBIT target was achieved between threshold and target and the Medical GBU achieved its stretch target. Regional EBIT targets were met in the majority of cases between threshold and stretch. • Profit Attributable – the internal performance target was achieved between threshold and stretch. • Plant Performance – the internal performance targets were not met. • Free Cash Flow – the stretch internal performance target was achieved.

Specific information relating to the STI payable for target performance and the percentage of the target awards achieved in respect of the Key Management Personnel is set out in Table 7.

72 Ansell Limited – Annual Report 2013 Table 7 – Annual incentive payments provided in relation to the 2013 financial year for Key Management Personnel pursuant to the Company’s STI Plan Value of Award at Value of Award Percentage of Percentage of Target Level (1) Achieved (2) Target Award Achieved Target Award Forfeited M R Nicolin US$850,000 US$521,900 61.4 38.6 S R Corriveau US$182,500 US$103,204 56.5 43.5 T Draskovics US$140,000 US$57,470 41.0 59.0 S Genzer US$170,000 US$89,675 52.7 47.3 A Lopez US$170,000 US$200,685 118.0 – P B Carroll A$213,500 A$127,673 59.8 40.2

(1) Target award is the level at which achievement of the performance measures would result in 100 per cent of the incentive being earned. (2) The value of grants provided under the STI Plan during the year is set out in this table. The minimum value of the STI, if the performance targets had not been satisfied, would have been nil.

Long-term incentive During 2012 the NRE Committee reviewed Ansell’s Long Term Incentive Plan (LTI), which since 2009 had operated as a cash-based plan. The cash plan was introduced to simplify the long-term incentive arrangements and to create a plan that was sufficiently flexible to reflect local market conditions and allow for consistency of arrangements for executives, given the global nature of the Company’s businesses. The NRE Committee recommended and the Board approved a change in the long-term incentive arrangements to include an equity-based component for Senior Executives for the 2013 financial year to more closely align Senior Executive ‘at-risk’ remuneration with the creation of long-term shareholder value.

This new Long Term Incentive Plan operated by way of a grant of performance share rights to the Chief Executive Officer, for which approval was obtained at the Company’s 2012 AGM and an equal proportion of cash and performance share rights for other members of the Executive Leadership Team and senior management with a grading designation of Vice President and above.

In addition, the NRE recommended a gateway vesting condition be introduced into the Plan. As a result the Board determined that in addition to the achievement of predetermined compound annual earnings per share growth targets, the 2013 Long Term Incentive Plan would introduce a new gateway condition based on the Company’s return on equity performance, similar to the condition applying to the vesting of the CEO Special Long Term Incentive Plan.

Company EPS – US cents performance over the last five years 2009 2010 2011 2012 2013 EPS – US cents 66.3 79.7 91.6 101.4 106.5

Table 8 – Summary of the 2013 Long Term Incentive Plan What is the LTI and The LTI Plan is an element of the Company’s remuneration strategy. The LTI Plan links Senior Executive who participates? reward with ongoing creation of shareholder value through the grant of performance share rights (Rights) and cash awards, subject to performance conditions which underpin sustainable growth in shareholder value. The LTI Plan is structured to align executive reward with Company performance and shareholder value. Participation in the Company’s LTI arrangements is only offered to executives who are able, or have the potential, to influence shareholder value.

How is the amount The long-term incentive grant, under the LTI Plan, provided to Senior Executives is designed to of the LTI grant be the equivalent of 60 per cent to 100 per cent (200 per cent for the CEO) of their fixed annual determined? remuneration for target performance and up to 120 per cent to 200 per cent (400 per cent for the CEO) of their fixed annual remuneration for stretch performance. Other executives are offered grants representing a lower proportion of their fixed annual remuneration.

What equity Under the LTI Plan, the CEO received an annual grant of Rights, for which approval was obtained at the instruments are Company’s 2012 AGM. Other members of the Executive Leadership Team and senior management with granted under the a grading designation of Vice President and above receive 50 per cent of their long-term incentive in LTI? the form of Rights, while the balance of their incentive is cash-based. For the remainder of the Senior Management Team participating in the Incentive Plan their incentive will continue to be cash-based.

Details of the grants made to Key Management Personnel during the 2013 financial year are set out in Tables 9 and 10.

Ansell Limited – Annual Report 2013 73 Remuneration Report continued

Section 3 – CEO and Senior Executive Remuneration continued

What are the key Rights are granted at no cost to the participant. Each Right granted will entitle the participant to terms of the Rights one ordinary share in the Company, subject to the satisfaction of performance conditions set by the and cash awards Board in respect of the grant. Cash awards that are granted will vest subject to the satisfaction of granted under the performance conditions set by the Board in respect of the grant. LTI? Grants under the Plan are tested over a three-year performance period.

If the relevant performance conditions are satisfied at the end of the performance period, then:

• the rights will vest automatically and shares in the Company will be allocated to the participant; and • the cash awards will vest automatically and payment of the cash award will be made to the participant.

What are the During the year, the Board approved a ‘gateway’ condition to the LTI Plan, which is designed to require performance a minimum level of return on equity (which is measured against the Company’s weighted average cost conditions for the of capital) to ensure that our earnings growth is translating to shareholder value. Rights and cash awards granted in The ‘gateway’ must be satisfied before any LTI awards may vest. The EPS ‘performance’ condition the 2013 financial will determine the level of vesting of the LTI awards. year? If either the ‘gateway’ condition or the threshold level of the performance condition is not satisfied, the Rights and cash awards will lapse.

Condition ‘Gateway’ condition Requires Ansell’s return on equity (ROE) at 30 June 2015 to be at least 1.5 times the Company’s Weighted Average Cost of Capital (WACC). ‘Performance’ condition Based on growth in the Company’s earnings per share (EPS) over the three-year performance period.

The percentage of the Rights and cash award grants which vest at particular EPS growth rates is as follows:

EPS growth Rights and cash award grant that vest (%) Threshold (7% per annum CAGR) 25 Between threshold and target Sliding scale from 25 to 50 Target (8% per annum CAGR) 50 Between target and stretch Sliding scale from 50 to 100 Stretch or above (12% per annum CAGR) 100

The Board selected US93.9 cents EPS (being the underlying EPS for the 2012 financial year – reported EPS excluding the impact of deferred tax asset adjustments and non operational tax items) as the base EPS for the 2012 financial year (Base Point).

Accordingly, in order for the Rights and cash awards to vest, underlying EPS of US115.0 cents (Threshold) will need to be achieved at the end of the three-year performance period. Stretch performance would require underlying EPS of US131.9 cents to be achieved at the end of the three-year performance period.

The Board will exclude the effect of net changes in capital when measuring EPS performance. This ensures the Company’s capital management program of share buy-backs will not influence performance against these targets. The Board may vary the performance conditions to take account of the effect of any material business acquisition or divestment and any exceptional non-operating items that may occur during the performance period.

74 Ansell Limited – Annual Report 2013 Why were these The Board selected EPS as a performance measure for vesting of the Rights and cash awards on the performance basis that it: conditions chosen? • is a relevant indicator of increases in shareholder value; and • is a target that provides a suitable line of sight to encourage and motivate executive performance.

What happens The Board has discretion to determine if the Rights and cash awards will vest in the event of a change in the event of a of control. change of control?

What happens Where a participating executive ceases employment with the Company any unvested Rights and if the executive cash award will lapse, except where employment ceases due to death, disability or other exceptional ceases employment circumstances with the approval of the Board, in which case the Board has a discretion to determine during the that the Rights and cash award will vest on a pro-rata basis (having regard to performance up to performance cessation of employment). period?

As part of its remuneration strategy, the Company made the following Rights and cash award grants during the year to Senior Executives.

Table 9 – LTI equity grants made to Key Management Personnel during the 2013 financial year pursuant to the Company’s LTI Plan. Number of Maximum Value of Rights Granted (1) Rights Granted (2) M R Nicolin 259,080 US$3,442,546 S R Corriveau 27,359 US$363,535 T Draskovics 19,542 US$259,667 S Genzer 25,405 US$337,571 A Lopez 25,795 US$342,753 P B Carroll 19,328 A$250,104

(1) The grant of Performance Share Rights (Rights) was made to the CEO on 22 October 2012 in accordance with a resolution passed at the Company’s 2012 Annual General Meeting. Grants of Performance Share Rights (Rights) to Senior Executives were made on 21 October 2012 in accordance with a resolution of the Nomination, Remuneration and Evaluation Committee. The grants made during the year constituted 100 per cent of the grants available for the year. As the Rights only vest on satisfaction of the performance conditions, to be tested at the end of the 2015 financial year, none of the Rights detailed above were forfeited during the year. Details of the relevant performance conditions are set out in Table 7. (2) The value per Right was calculated as A$12.94. The assumptions used in the calculation of this value are set out in Note 23 to the financial statements accompanying this Report. The minimum total value of the grant, if the applicable performance conditions are not met, is nil in all cases.

Summary of equity awards under the LTI

Held at Granted Vested Forfeited Held at 1 July 2012 During Year During Year During Year 30 June 2013 M R Nicolin Rights – 259,080 – – 259,080 S R Corriveau Rights – 27,359 – – 27,359 T Draskovics Rights – 19,542 – – 19,542 S Genzer Rights – 25,405 – – 25,405 A Lopez Rights – 25,795 – – 25,795 P Carroll Rights – 19,328 – – 19,328 Former executive R F Jilla(1) Rights – 39,210 – 39,210 –

(1) Ceased employment effective 15 April 2013.

Ansell Limited – Annual Report 2013 75 Remuneration Report continued

Section 3 – CEO and Senior Executive Remuneration continued

Table 10 – LTI cash award grants made to Key Management Personnel during the 2013 financial year pursuant to the Company’s LTI Plan Value of Cash Award at Stretch Level (1) S R Corriveau US$350,000 T Draskovics US$250,000 S Genzer US$325,000 A Lopez US$330,000 P B Carroll A$244,110

(1) Stretch award is the level at which achievement of the performance measures would result in 100 per cent of the incentive being earned.

Previous long-term incentive arrangements 2011 (due for testing at the end of the 2013 financial year) In the 2011 financial year the Company had a cash-based LTI Plan. Cash awards under the LTI Plan are subject to a three- year performance period that was tested at the end of the 2013 financial year. During the performance period the Company was required to achieve specific EPS performance measures in order for the awards to vest and executives to become entitled to the cash grant.

The cash awards are subject to performance measures based on the growth in the Company’s EPS over the performance period. The Board selected US69.5 cents EPS, (being the underlying profit for the 2010 financial year – reported earnings per share excluding the impact of deferred tax asset adjustments) as the base EPS for the 2011 financial year (Base Point). The target EPS growth rate was 5 per cent per annum compound, measured from the Base Point to the end of the 2013 financial year. This equates to a target EPS of US80.5 cents.

The stretch EPS growth rate was 10 per cent per annum compound, measured from the Base Point to the end of the 2013 financial year. This equates to a stretch EPS of US92.5 cents.

The reported EPS for the 2013 financial year was US106.5 cents which represented a compound annual growth rate of 10.1 per cent since 2010. The underlying EPS for the 2013 financial year was US100.5 cents which represented a compound growth rate of 13.1 per cent and exceeded the stretch EPS target of US92.5 cents therefore the cash grants vested at the stretch level.

2012 (due for testing at the end of the 2014 financial year) In the 2012 financial year the Company had a cash-based LTI Plan. Cash awards under the LTI Plan are subject to a three- year performance period that will be tested at the end of the 2014 financial year. During the performance period the Company is required to achieve specific EPS performance measures in order for the awards to vest and executives to become entitled to the cash grant.

The cash awards are subject to performance measures based on the growth in the Company’s EPS over the performance period. The Board selected US81.3 cents EPS, (being the underlying profit for the 2011 financial year – reported earnings per share excluding the impact of deferred tax asset adjustments and non operational tax items) as the base EPS for the 2012 financial year (Base Point). The target EPS growth rate is 7 per cent per annum compound, measured from the Base Point to the end of the 2014 financial year. This equates to a target EPS of US99.6 cents.

The stretch EPS growth rate is 10 per cent per annum compound, measured from the Base Point to the end of the 2014 financial year. This equates to a stretch EPS of US108.2 cents.

CEO Special Long Term Incentive Plan As approved by shareholders at the 2010 Annual General Meeting, the Managing Director and Chief Executive Officer has been allocated 129,730 performance rights pursuant to the CEO Special Long Term Incentive Plan. These rights are intended to align the CEO’s interest with shareholders over the longer term.

The rights were granted in two tranches, with 20 per cent of the total allocation to vest at the completion of four years (30 June 2014) and the balance of 80 per cent to vest after five years (30 June 2015), subject to the performance condition being met.

The applicable performance condition is that Ansell’s Return on Equity (ROE) in each of financial years 2014 and 2015 must equal at least 1.5 times Ansell’s Weighted Average Cost of Capital. The Board has selected this performance target as the Board believes ROE to be a strong long-term measure of how efficiently the capital employed in the business has been used to generate earnings growth, which should translate to an appropriate level of return for shareholders. If the performance condition applicable to a tranche is not satisfied, the performance rights will lapse.

76 Ansell Limited – Annual Report 2013 The Board believes that it is important that the CEO’s interests are aligned with those of shareholders. The grant of performance rights, each entitling the CEO to an ordinary share in the capital of Ansell Limited upon satisfaction of the performance condition, means that a significant amount of his remuneration will be determined by reference to the value of Ansell shares at the end of the applicable vesting periods.

As the performance condition is not tested until 2014, no part of the CEO Special Long Term Incentive Plan vested (or lapsed) during the financial year.

CFO Special Incentive Plan In order to align the incoming Chief Financial Officer’s interest with those of shareholders and to compensate him for deferred employment incentives from his previous employer that Mr Salmon forfeited in joining Ansell, he has been allocated 30,130 performance rights on the same terms to those granted to the Managing Director and Chief Executive Officer.

The rights were granted in two tranches, with 14,917 performance rights to vest at the end of the 2014 financial year and the remaining allocation to vest at the end of the 2015 financial year.

The applicable performance condition is that Ansell’s Return on Equity (ROE) in each of financial years must equal at least 1.5 times Ansell’s Weighted Average Cost of Capital. The Board has selected this performance target as the Board believes ROE to be a strong long-term measure of how efficiently the capital employed in the business has been used to generate earnings growth, which should translate to an appropriate level of return for shareholders. If the performance condition applicable to a tranche is not satisfied, the performance rights will lapse.

C. Remuneration of Key Management Personnel Table 11 – Key Management Personnel Remuneration 2013 Details of the remuneration provided to Key Management Personnel are set out in the following table.

Post- Long- Long- Short-term employment term term Proportion of Total Super- Remuneration Base Annual Non-salary annuation Cash- Share- Performance- Salary Incentive Benefits (1) contributions (2) based (3) based (4) Total related M R Nicolin(5) US$ 847,019 521,900 128,484 213,804 1,696,917 628,590 4,036,714 70.5% S R Corriveau(5) US$ 362,654 103,204 389,271 78,531 602,717 57,401 1,593,778 47.9% T Draskovics(5) US$ 273,667 57,470 4,948 52,279 291,778 41,002 721,144 54.1% S Genzer(5) US$ 337,667 89,675 4,406 71,224 595,779 53,301 1,152,052 64.1% A Lopez(5) US$ 338,917 200,685 75,110 63,664 384,945 54,124 1,117,445 57.2% P B Carroll(6) A$ 421,962 127,673 35,360 68,761 442,754 41,642 1,138,152 53.8% Former executive R F Jilla(7) US$ 362,405 – 30,281 88,991 – – 481,677 Total Remuneration – Key Management Personnel US$ 2,522,329 972,934 632,500 568,493 3,572,136 834,418 8,580,910 A$ 421,962 127,673 35,360 68,761 442,754 41,642 1,138,152

(1) Includes the cost to the Company of cash benefits such as motor vehicle, executive expatriation and relocation allowances, executive insurance and a sign-on bonus of US$50,000 for A Lopez. (2) Includes contributions to US benefit or non-qualified pension plans and to an Australian superannuation fund, as applicable. (3) Includes amounts provided in respect of the Company’s cash-based Long Term Incentive Plans. (4) Amount provided in respect of the Company’s share based Long Term Incentive Plan, including the CEO’s Special Long Term Incentive Plan. (5) US-based officers paid in US$. The average exchange rate for the 2013 financial year was US$1.02686 = A$1.00. (6) Australian-based officer paid in A$. (7) Ceased employment effective 15 April 2013.

Ansell Limited – Annual Report 2013 77 Remuneration Report continued

Section 3 – CEO and Senior Executive Remuneration continued

2012 Details of the remuneration provided to Key Management Personnel are set out in the following table.

Short- Post- Long- Long- Other term employment term term Benefits Proportion of Total Non- Super- Remuneration Base Annual salary annuation Cash- Share- Termination Performance- Salary Incentive Benefits (1) contributions (2) based (3) based (4) Payment (7) Total related M R Nicolin(5) US$ 856,731 580,140 102,927 305,791 1,547,454 240,000 3,633,043 65.2% R F Jilla(5) US$ 463,024 224,453 29,614 134,827 806,281 1,658,199 62.1% S Corriveau(5) US$ 345,000 200,000 129,268 74,857 498,201 1,247,326 56.0% T Draskovics(5) US$ 163,461 95,219 2,655 27,806 123,596 412,737 53.0% S Genzer(5) US$ 337,500 150,516 142,844 84,186 325,000 1,040,046 45.7% A Lopez(5) US$ 247,500 71,961 150,820 22,713 110,000 602,994 30.1% P B Carroll(6) A$ 406,850 253,671 35,360 91,434 340,730 1,128,045 52.7% Former executive W Heintz(7) € 217,176 – 44,846 47,575 155,572 2,229,771 2,694,940 Total Remuneration – Key Management Personnel US$ 2,413,216 1,322,289 558,128 650,180 3,410,532 240,000 8,594,345 A$ 406,850 253,671 35,360 91,434 340,730 1,128,045 € 217,176 – 44,846 47,575 155,572 2,229,771 2,694,940

(1) Includes the cost to the Company of cash benefits such as motor vehicle, relocation and housing allowances, executive insurance and sign-on bonuses of US$75,000 for S Genzer and US$120,000 for A Lopez. (2) Includes contributions to US benefit or non-qualified pension plans, European pension plans and to an Australian superannuation fund, as applicable. (3) Includes amounts provided in respect of the Company’s cash-based Long Term Incentive Plans. (4) Amount provided in respect of the CEO’s Special Long Term Incentive Plan. (5) US-based officers paid in US$. The average exchange rate for the 2012 financial year was US$1.03236 = A$1.00. (6) Australian-based officer paid in A$. (7) Ceased employment effective 31 October 2011. The termination amount provided for payment to Mr Heintz as part of his cessation of employment was made in accordance with Belgian labour law and his pre-2009 contract of employment.

D. Service agreements The remuneration and other terms of employment for the CEO and other Senior Executives are covered in formal agreements or letters of offer. Each of these agreements makes provision for a fixed remuneration component, performance-related annual cash incentive (as described above), other benefits, and participation, where eligible, in the Company’s long-term incentive arrangements (as described above).

Chief Executive Officer The Employment Agreement entered into with the CEO:

• does not specify a fixed term of employment; • provides that the Company may terminate the CEO’s employment upon giving 12 months’ notice or payment in lieu, and may terminate immediately in the case of wilful misconduct; • provides that in certain circumstances, such as a material diminution of responsibility or the CEO ceasing to be the most Senior Executive of Ansell, the CEO may be entitled to a payment equivalent to 12 months’ base salary; • requires the CEO to give the Company at least six months’ notice of resignation; and • in order to protect the Company’s business interests, prohibits the CEO from engaging in any activity that would compete with the Company for a period of 12 months following termination of his employment for any reason.

The Employment Agreement entered into with the CEO has been drafted to comply with the new legislative provisions of the Corporations Act regarding the payment of benefits on termination.

78 Ansell Limited – Annual Report 2013 Other Key Management Personnel – current executives S Corriveau and T Draskovics are assumed to be employed ‘at will’. As such, their respective service agreements do not specify a fixed term of employment. These executives are, in general, eligible for payments upon termination (other than for gross misconduct) equal to 12 months’ base salary plus certain other contractual entitlements. These executives would typically be expected to give the Company four weeks’ notice of resignation.

P Carroll is an Australian-based executive, and is employed under a service agreement of unlimited duration. The Company may terminate Mr Carroll’s employment by making a severance payment equal to 12 months’ base salary, other than termination for cause.

Each of the service agreements for these Senior Executives were entered into prior to the amendments to the Corporations Act regarding the payment of benefits on termination, which came into effect on 24 November 2009.

S Genzer and A Lopez, who are based in the United States, are employed ‘at will’ and as such, their service agreement does not specify a fixed term of employment, however the agreements have been drafted to comply with the new legislative provisions of the Corporations Act regarding the payment of benefits on termination.

The Board believes that the termination conditions agreed with the CEO and other Senior Executives are reasonable and mutually beneficial for the Company and the executives involved.

Ansell Limited – Annual Report 2013 79 Consolidated Income Statement of Ansell Limited and Subsidiaries for the year ended 30 June 2013

2013 2012 Note A$m A$m Revenue Total revenue 3 1,340.0 1,218.3 Expenses Cost of goods sold (778.4) (718.1) Distribution (60.4) (59.7) Selling, general and administration (334.0) (291.1) Total expenses, excluding financing costs (1,172.8) (1,068.9) Net financing costs 4 (10.5) (4.9) Profit before income tax 156.7 144.5 Income tax expense 7 (15.9) (11.5) Profit for the period 140.8 133.0

Profit for the period is attributable to: Ansell Limited shareholders 136.8 130.0 Non-controlling interests 4.0 3.0 Profit for the period 140.8 133.0

cents cents Earnings per share is based on profit attributable to Ansell Limited shareholders Basic earnings per share 31 104.6 99.1 Diluted earnings per share 31 104.2 98.9

The above Consolidated Income Statement should be read in conjunction with the accompanying notes.

80 Ansell Limited – Annual Report 2013 Consolidated Statement of Comprehensive Income of Ansell Limited and Subsidiaries for the year ended 30 June 2013

2013 2012 A$m A$m Profit for the period 140.8 133.0 Other comprehensive income Items that will not be reclassified to profit or loss: Actuarial loss on defined benefit pension/post-retirement health benefit plans (3.7) (8.1) Change in fair value of financial assets (3.3) (0.9) Tax benefit on items that will not be reclassified to profit or loss 2.5 2.6 Total items that will not be reclassified to profit or loss (4.5) (6.4) Items that may subsequently be reclassified to profit or loss: Net exchange difference on translation of financial statements of foreign operations 23.5 (2.6) Net movement in effective hedges for year 4.2 (5.3) Tax (expense)/benefit on items that may subsequently be transferred to profit or loss (1.3) 3.0 Total items that may subsequently be reclassified to profit or loss 26.4 (4.9) Other comprehensive income for the period, net of tax 21.9 (11.3) Total comprehensive income for the period 162.7 121.7

Attributable to: Ansell Limited shareholders 157.5 119.2 Non-controlling interests 5.2 2.5 Total comprehensive income for the period 162.7 121.7

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Ansell Limited – Annual Report 2013 81 Consolidated Balance Sheet of Ansell Limited and Subsidiaries for the year ended 30 June 2013

2013 2012 Note A$m A$m Current assets Cash on hand 9 0.5 0.7 Cash at bank and on deposit 9 328.8 245.1 Cash assets – restricted deposits 9 3.7 3.5 Trade and other receivables 10 253.2 184.7 Derivative financial instruments 24 10.7 6.8 Inventories 11 280.0 212.5 Other 12 15.6 10.0 Total current assets 892.5 663.3 Non-current assets Trade and other receivables 10 3.3 2.1 Investments 13 3.0 4.0 Property, plant and equipment 14 201.1 150.6 Intangible assets 15 583.1 389.6 Deferred tax assets 16 130.5 119.5 Other 21.9 19.2 Total non-current assets 942.9 685.0 Total assets 1,835.4 1,348.3 Current liabilities Trade and other payables 17 217.3 154.8 Derivative financial instruments 24 18.2 18.1 Interest bearing liabilities 18 97.0 16.7 Provisions 19 54.5 49.5 Current tax liabilities 23.2 14.3 Total current liabilities 410.2 253.4 Non-current liabilities Trade and other payables 17 10.8 5.0 Interest bearing liabilities 18 485.5 284.2 Provisions 19 19.5 20.0 Retirement benefit obligations 20 21.0 17.7 Deferred tax liabilities 21 34.9 29.6 Other 20.2 17.6 Total non-current liabilities 591.9 374.1 Total liabilities 1,002.1 627.5 Net assets 833.3 720.8 Equity Issued capital 6(a) 861.0 862.2 Reserves 6(b) (84.8) (109.0) Retained profits/(accumulated losses) 40.4 (46.5) Total equity attributable to Ansell Limited shareholders 816.6 706.7 Non-controlling interests 16.7 14.1 Total equity 833.3 720.8

The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes.

82 Ansell Limited – Annual Report 2013 Consolidated Statement of Changes in Equity of Ansell Limited and Subsidiaries for the year ended 30 June 2013

2013 2012 A$m A$m Total Equity at the beginning of the financial year 720.8 677.6 Total comprehensive income for the period attributable to: Ansell Limited shareholders 157.5 119.2 Non-controlling interests 5.2 2.5

Transactions with owners as owners attributable to Ansell Limited shareholders: Exercise of options 2.3 0.9 Share buy-back (3.5) (32.6) Share-based payments reserve 1.3 0.2 Dividends (47.7) (44.9)

Transactions with owners as owners attributable to non-controlling interests: Dividends (2.6) (2.1) Total equity at the end of the financial year 833.3 720.8

Share capital Balance at the beginning of the financial year 862.2 893.9 Transactions with owners as owners: Exercise of options 2.3 0.9 Share buy-back (3.5) (32.6) Balance at the end of the financial year 861.0 862.2

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Ansell Limited – Annual Report 2013 83 Consolidated Statement of Changes in Equity continued of Ansell Limited and Subsidiaries for the year ended 30 June 2013

2013 2012 A$m A$m Reserves Share-based payments reserve Balance at the beginning of the financial year 36.6 36.4 Transactions with owners as owners: Charge to the Income Statement 1.3 0.2 Balance at the end of the financial year 37.9 36.6 Hedging reserve Balance at the beginning of the financial year (10.6) (8.3) Comprehensive income for the period: Net movement in effective hedges 2.9 (2.3) Balance at the end of the financial year (7.7) (10.6) General reserve Balance at the beginning of the financial year 9.5 8.9 Transfer from retained profits/(accumulated losses) 0.5 0.6 Balance at the end of the financial year 10.0 9.5 Foreign currency translation reserve Balance at the beginning of the financial year (133.2) (131.1) Comprehensive income for the period: Net exchange differences on translation of financial statements of foreign operations 22.3 (2.1) Balance at the end of the financial year (110.9) (133.2) Transactions with non-controlling interests Balance at the beginning of the financial year (10.7) (10.7) Balance at the end of the financial year (10.7) (10.7) Fair value reserve Balance at the beginning of the financial year (0.6) – Comprehensive income for the period: Change in fair value of financial assets (2.8) (0.6) Balance at the end of the financial year (3.4) (0.6) Total reserves at the end of the financial year (84.8) (109.0)

Retained profits/(accumulated losses) Balance at the beginning of the financial year (46.5) (125.2) Transfer to reserves (0.5) (0.6) Comprehensive income for the period: Net profit attributable to Ansell Limited shareholders 136.8 130.0 Actuarial loss on defined benefit pension/post-retirement health benefit plans net of tax (1.7) (5.8) Transactions with owners as owners: Dividends paid (47.7) (44.9) Balance at the end of the financial year 40.4 (46.5)

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

84 Ansell Limited – Annual Report 2013 Consolidated Statement of Cash Flows of Ansell Limited and Subsidiaries for the year ended 30 June 2013

2013 2012 Note A$m A$m Cash flows related to operating activities Receipts from customers 1,309.0 1,210.4 Payments to suppliers and employees (1,166.7) (1,097.9) Net receipts from operations 142.3 112.5 Income taxes paid (15.2) (17.3) Net cash provided by operating activities 26(a) 127.1 95.2 Cash flows related to investing activities Payments for businesses, net of cash acquired 27 (201.2) (43.9) Payments for property, plant, equipment and intangible assets (39.0) (36.6) Payments for investments (1.8) (4.9) Proceeds from sale of property, plant and equipment 7.7 9.3 Net cash used in investing activities (234.3) (76.1) Cash flows related to financing activities Proceeds from borrowings 428.0 291.0 Repayments of borrowings (188.7) (221.0) Net proceeds from borrowings 239.3 70.0 Proceeds from issues of shares 2.3 0.9 Payments for share buy-back (3.5) (32.6) Dividends paid – Ansell Limited shareholders (47.7) (44.9) Dividends paid – non-controlling interests (2.6) (2.1) Interest received 7.5 6.8 Interest and financing costs paid (16.3) (12.1) Net cash provided by/(used in) financing activities 179.0 (14.0) Net increase in cash and cash equivalents 71.8 5.1 Cash and cash equivalents at the beginning of the financial year 249.3 242.5 Effects of exchange rate changes on the balances of cash and cash equivalents held in foreign currencies at the beginning of the financial year 11.9 1.7 Cash and cash equivalents at the end of the financial year 26(b) 333.0 249.3

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

Ansell Limited – Annual Report 2013 85 Notes to the Financial Statements

1. Summary of Significant Accounting Policies General Ansell Limited (‘the Company’) is a company domiciled in Australia. The Company and its subsidiaries (together referred to as the ‘Group’) is a global leader in protection solutions. The Group is a for-profit entity and designs, develops and manufactures a wide range of hand and arm protection solutions, clothing and condoms and is organised around four Global Business Units:

• 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.

Statement of compliance The Financial Report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The Financial Report of the Group also complies with International Financial Reporting Standards and interpretations adopted by the International Accounting Standards Board.

The consolidated financial statements were authorized for issue by the Board of Directors on 20 August 2013.

Basis of accounting The Financial Report is presented in Australian dollars and on the historical cost basis except that assets and liabilities in respect of derivative financial instruments and available-for-sale financial assets are stated at their fair value. The Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with the Class Order, amounts in the Financial Report and Directors’ Report have been rounded off to the nearest hundred thousand dollars, unless otherwise stated. A summary of the significant accounting policies of the Group are disclosed below. The accounting policies have been applied consistently by all entities in the Group.

Changes in accounting policies Presentation of transactions recognized in other comprehensive income The Group has applied the amendments to AASB 101 Presentation of Financial Statements as outlined in AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income. The amendment only relates to disclosure and has had no impact on consolidated net income or earnings per share. The revised disclosure requirements have been applied retrospectively to the Statement of Other Comprehensive Income. The Group is now required to separately disclose those items of other comprehensive income that may be reclassified to profit or loss in the future from those that will never be reclassified to profit or loss.

Classification and measurement of financial assets and financial liabilities The Group has elected to early adopt AASB 9 Financial Instruments (2009 and 2010) effective 1 July 2012, which has resulted in any changes in the fair value of financial assets being recognized in other comprehensive income and reflected in the fair value reserve in equity. Previously impairment charges in respect of such financial assets would have been recognized in profit or loss.

New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are effective for financial years beginning after 1 July 2012 and have not been applied in preparing these consolidated financial statements. None of these is expected to have a significant effect on the consolidated financial statements of the Group.

Principles of consolidation The financial statements of the Group include the Company being the parent entity, and its subsidiaries.

The financial statements incorporate the assets and liabilities of all subsidiaries of the Company as at balance date and the results of all subsidiaries for the year then ended. Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Results of subsidiaries are included in the Income Statement from the date on which control commences and continue to be included until the date control ceases to exist.

The effects of all transactions between entities in the Group are eliminated in full. Non-controlling interests in the results and equity of subsidiaries are shown separately in the Income Statement and Balance Sheet respectively.

86 Ansell Limited – Annual Report 2013 Foreign currency Transactions Transactions in foreign currencies are recorded at the rate of exchange ruling on the date of each transaction. At balance date, amounts payable and receivable in foreign currencies are converted at the rates of exchange ruling at that date with any resultant gain or loss recognized in the Income Statement except when deferred in equity as qualifying cash flow hedges or qualifying net investment hedges.

Translation The financial statements of overseas subsidiaries are maintained in their functional currencies and are converted to the Group’s presentation currency as follows:

• Assets and liabilities are translated at the rate of exchange as at balance date. • Income statements are translated at average exchange rates for the reporting period, which approximate the rates ruling at the dates of the transactions. • All resultant exchange differences are recorded in the foreign currency translation reserve.

On consolidation, exchange differences arising from borrowings and any other currency instruments designated as hedges of investments in overseas subsidiaries, are transferred to the foreign currency translation reserve on a net of tax basis where applicable. When an overseas subsidiary is sold the cumulative amount recognized in the foreign currency translation reserve relating to the subsidiary is recognized in the Income Statement as part of the gain or loss on sale.

Revenue recognition Revenues are recognized at fair value of the consideration received net of any goods and services tax (GST).

Sales revenue Sales revenue comprises revenue earned (net of returns, discounts and allowances which are accrued at expected levels as sales occur) from the provision of products to entities outside the Group. Sales revenue is recognized in the Income Statement when the significant risks and rewards of ownership have been transferred to the buyer.

Interest income Interest income is recognized as it accrues.

Financing costs Financing costs include interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and other related charges.

Income tax Income tax in the Income Statement for the periods presented comprises current and deferred tax adjusted for income tax over/under provided in previous years except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. The estimated liability for income tax outstanding in respect of the period’s operations is included in the Balance Sheet as a current liability. Deferred tax is provided using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: initial recognition of goodwill and goodwill not deductible for tax purposes, the initial recognition of assets or liabilities that are not part of a business combination and do not affect either accounting or taxable profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.

In jurisdictions where unbooked tax losses exist, regular reviews are undertaken of the past trading history and projected future trading performance of the operations in these jurisdictions as part of the determination of the value of any deferred tax asset that should be reflected in the accounts in respect of such losses. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or when the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date.

Trade debtors and other receivables Trade and other receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less an allowance for impairment. The collectability of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off to the Income Statement. An allowance for impairment is established when there is sufficient evidence to indicate that not all amounts due will be collected.

Ansell Limited – Annual Report 2013 87 Notes to the Financial Statements continued

1. Summary of Significant Accounting Policies continued

Inventories Stock on hand and work in progress Stock on hand and work in progress are valued on the basis of the lower of cost and net realizable value. The methods generally adopted throughout the Group in determining costs are:

Raw materials and other stock Actual costs, determined on a first in, first out basis or standard costs approximating actual costs.

Finished goods and work in progress Finished goods and work in progress are valued at standard costs, which approximate actual costs and include an appropriate allocation of manufacturing overheads where applicable.

Obsolete and slow moving stocks are written down to net realizable value where such value is below cost. Net realizable value is determined on the basis of each inventory line’s normal selling pattern. Expenses of marketing, selling and distribution to customers are estimated and are deducted to establish net realizable value.

Investments Subsidiaries All investments are valued at the lower of cost and recoverable value. Dividends and distributions are brought to account in the Income Statement when they are paid by the subsidiary.

Other Includes quoted and unquoted equity instruments. These investments are initially recorded at cost and subsequently measured at fair value and any changes are recognized in other comprehensive income and reflected in the fair value reserve in equity.

Property, plant and equipment Acquisition Items of property, plant and equipment are initially recorded at cost and depreciated as set out below. The cost of property, plant and equipment constructed by the Group includes the cost of materials, direct labour and any other costs directly attributable to bringing the asset to a working condition for its intended use.

Depreciation and amortization Depreciation and amortization is generally calculated on a straight-line basis so as to write off the net cost of each item of property, plant and equipment, excluding land, over its estimated useful life.

The expected useful lives in the current and prior years are as follows:

Freehold buildings 20–40 years. Leasehold buildings The lesser of 50 years or life of lease. Plant and equipment 3–20 years.

Depreciation and amortization rates and methods are reviewed annually for appropriateness.

Leases Operating lease payments are expensed as incurred on a straight-line basis over the term of the lease.

Recoverable amount of non-current assets valued on the cost basis The carrying amounts of non-current assets valued on the cost basis are reviewed to determine whether they are in excess of their recoverable amount at balance date. An impairment loss is recognized whenever the carrying amount of a non- current asset exceeds its recoverable amount. The impairment loss is recognized as an expense in the Income Statement in the reporting period in which it occurs.

The recoverable amount of a non-current asset is the higher of an asset’s fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash flows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

Impairment losses, other than those in respect of goodwill, are reversed through the Income Statement when there is an indication that the impairment loss may no longer exist.

88 Ansell Limited – Annual Report 2013 Intangible assets Goodwill and brand names Goodwill on acquisition is measured at cost being the excess of the cost of the acquisition over the fair value of the Group’s share of the net identifiable assets acquired. Goodwill is not amortized. Brand names are initially recorded at cost based on independent valuation at acquisition date (which equates to fair value). Based on the nature of the major brand names acquired by the Group, which are international brands that benefit from competitive advantages due to technology, innovation and product development, it is not possible to make an arbitrary assessment that these brand names have a finite useful life, quantifiable in terms of years except where such brands are subject to licensing agreements covering a finite period. Brand names subject to a licensing arrangement are amortized over the life of the arrangement. No amortization is provided against the carrying value of those brand names not subject to a licensing arrangement as the Group believes that the lives of such assets are indefinite at this point.

Goodwill and brand names are reviewed annually, or more frequently if events or changes in circumstances indicate that their carrying values may be impaired, and are carried at cost less accumulated impairment losses.

For the purposes of impairment testing, goodwill and brand names are allocated to cash-generating units (which equate to the Group’s reportable business segments i.e. Industrial, Medical, Sexual Wellness and Specialty Markets) upon acquisition. Acquired businesses can readily be allocated to one of the business segments on the basis of products manufactured and/ or marketed. Such manufacturing and marketing operations tend to cover more than one geographical region. Impairment is determined by assessing the recoverable amount of the cash-generating unit to which the goodwill and brand names relate. Where the recoverable amount of the cash-generating unit is less than the carrying value, an impairment charge to goodwill and/or brand names is recognized in the Income Statement. An impairment loss in respect of goodwill is not reversed.

Development and software costs Capitalized development and software costs are amortized over a three- to 10-year period.

Payables Trade and other creditors Trade and other creditors are recognized for amounts to be paid in the future for goods and services received, whether or not billed to the Group.

Interest bearing liabilities Interest bearing liabilities are initially recognized at fair value less attributable transaction costs. Subsequent to initial recognition interest bearing liabilities are stated at amortized cost. Any difference between the cost and redemption value is recognized in the Income Statement over the period of the liability using the effective interest method.

Employee entitlements Wages, salaries and annual leave Liabilities for employee entitlements to wages, salaries and annual leave represent the amount which members of the Group have a present obligation to pay resulting from employees’ services provided up to the balance date calculated at undiscounted amounts based on expected wage and salary rates that will be paid when the obligation is settled and include related on-costs.

Long service leave and post-retirement health benefits The liability for employee entitlements to long service leave represents the present value of the estimated future cash outflows to be made by the Group resulting from employees’ services provided in the current and prior periods. Post- retirement health benefits are subject to annual actuarial reviews.

The liability is calculated using estimated future increases in wage and salary rates including related on-costs, expected settlement dates based on turnover history and medical cost trends and is discounted using rates attaching to national government securities at balance date, which most closely match the terms of maturity of the related liabilities.

Retirement benefit obligations Certain members of the Group contribute to certain defined benefit and defined contribution superannuation plans maintained to provide superannuation benefits for employees. The defined benefit plans generally provide benefits based on salary in the period prior to retirement. The defined contribution plans receive contributions from members of the Group and the Group’s legal or constructive obligation is limited to these contributions.

Ansell Limited – Annual Report 2013 89 Notes to the Financial Statements continued

1. Summary of Significant Accounting Policies continued

A liability or asset in respect of each defined benefit superannuation plan is recognized in the Balance Sheet and is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods. This benefit is discounted to determine its present value and the fair value of plan assets is deducted. The present value of the defined benefit is based on expected future payments calculated annually by independent actuaries using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash flows.

Actuarial gains or losses are taken to other comprehensive income and all expenses related to defined benefits plans are recognized in employee-related expense in the Income Statement. Contributions to defined contribution plans are recognized as an expense as they become payable.

Share-based Payments The fair value of Performance Rights granted to the Chief Executive Office on his appointment in March 2010 and to Senior Executives under the 2013 Long Term Incentive Plan is recognized as an employee benefit expense with a corresponding increase in equity over the vesting period.

Provisions A provision is recognized when there is a legal, equitable or constructive obligation as a result of a past event and it is probable that a future sacrifice of economic benefits will be required to settle the obligation, the timing or amount of which is uncertain.

A provision is determined by discounting the expected future cash flows required to settle the obligation at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

Rationalization and restructuring Provisions for rationalization and restructuring are only recognized when a detailed plan has been approved and the restructuring has either commenced or been publicly announced, or firm contracts related to the restructuring have been entered into. Costs related to ongoing activities are not provided for.

Accufix pacing lead-related expenses and insurance claims The Group provides for certain specifically identified or obligated costs when these amounts are reasonably determinable.

Dividends A provision for dividends payable is recognized in the reporting period in which the dividends are declared.

Derivatives The Group uses derivative financial instruments, principally foreign exchange and interest rate related, to reduce the exposure to foreign exchange rate and interest rate movements.

The Group has adopted certain principles in relation to derivative financial instruments:

• derivatives may be used to hedge underlying business exposures of the Group. Trading in derivatives is not undertaken; • derivatives acquired must be able to be recorded in the Group’s treasury management systems, which contain extensive internal controls; and • the Group predominantly does not deal with counter-parties rated lower than A- by Standard & Poor’s or A3 by Moody’s Investors Service.

The Group follows the same credit policies, legal processes, monitoring of market and operational risks in the area of derivative financial instruments, as it does in relation to other financial assets and liabilities on the Balance Sheet.

On a continuing basis, the Group monitors its future exposures and on some occasions hedges all or part of these exposures. The transactions which may be covered are future net cash flows of overseas subsidiaries, future foreign exchange requirements and interest rate positions.

These exposures are then monitored and may be modified from time to time. The foreign exchange hedge instruments are predominantly up to 12 months’ duration and are used to hedge operational transactions the Group expects to occur in this timeframe. From time to time minor mismatches occur in the forward book, however these mismatches are managed under guidelines, limits and internal controls. Interest rate derivative instruments can be for periods up to 10 years as the critical terms of the instruments are matched to the underlying borrowings.

90 Ansell Limited – Annual Report 2013 Derivative financial instruments are recognized initially at fair value and subsequently remeasured to their fair value at each reporting date. The fair value of forward exchange contracts, foreign exchange options and interest rate swap contracts is determined by reference to current market rates for these instruments.

The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument and continues to satisfy the conditions for hedge accounting, and if so, the nature of the item being hedged. The Group designates certain derivatives as either; (1) hedges of the fair value of recognized assets or liabilities (fair value hedge); or (2) hedges of highly probable forecast transactions (cash flow hedges).

The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items.

Fair value hedge Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the Income Statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

Cash flow hedge The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in equity in the hedging reserve. The gain or loss relating to the ineffective portion is recognized immediately in the Income Statement.

Gains or losses that are recognized in the hedging reserve are transferred to the Income Statement in the periods when the hedged item will affect profit or loss. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset or a non-financial liability, the gains or losses previously deferred in equity are transferred from equity and included in the measurement of the initial cost or carrying amount of the asset or liability.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer meets the conditions for hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognized in equity remains in equity until the forecasted transaction is ultimately recognized in the Income Statement. When a hedged transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the Income Statement.

Derivatives that do not qualify for hedge accounting Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognized immediately in the Income Statement.

Issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax where applicable, from the proceeds. When shares are repurchased, the amount of the consideration paid, including directly attributable costs, is recognized as a deduction from equity.

Earnings per share Basic earnings per share (EPS) is calculated by dividing the net profit attributable to Ansell Limited shareholders for the reporting period, after excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares of the Company, adjusted for any bonus issue and share split.

Diluted EPS is calculated by dividing the basic EPS earnings, adjusted by the after-tax effect of financing costs associated with dilutive potential ordinary shares and the effect on revenues and expenses of conversion to ordinary shares associated with dilutive potential ordinary shares, by the weighted average number of ordinary and dilutive potential ordinary shares adjusted for any bonus issue.

Ansell Limited – Annual Report 2013 91 Notes to the Financial Statements continued

1. Summary of Significant Accounting Policies continued

Accounting estimates and judgements The preparation of consolidated financial statements in conformity with Australian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. The estimates and associated assumptions are based on historical experience and various factors that are believed to be reasonable under the circumstances and are reviewed on an ongoing basis. Actual results could differ from these estimates.

Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key estimates and assumptions that may have a significant impact on the financial statements are as follows: Current asset provisions In the course of normal trading activities, management uses its judgement in establishing the net realizable value of various elements of working capital – principally inventory and accounts receivable. Provisions are established for obsolete or slow moving inventories and bad or doubtful receivables. The actual level of obsolete or slow-moving inventories and bad or doubtful receivables in future periods may be different from the provisions established and any such differences would affect future earnings of the Group.

Property, plant and equipment and definite life intangible assets The Group’s property, plant and equipment and intangible assets, other than indefinite life intangible assets, are depreciated/amortized on a straight-line basis over their useful economic lives. Management reviews the appropriateness of useful economic lives of assets at least annually and any changes to useful economic lives may affect prospective depreciation rates and asset carrying values.

Impairment of goodwill and brand names The Group tests whether goodwill and brand names are impaired at least annually, or more frequently if events or changes in circumstances indicate that their carrying values may be impaired, in accordance with the accounting policy on Intangible Assets. The policy requires the use of assumptions in assessing the carrying values of cash-generating units.

These assumptions are detailed in Note 15.

Income tax The reviews undertaken to determine whether a deferred tax asset should be recognized in jurisdictions where unbooked tax losses exist and in assessing the recoverability of booked tax losses, involve the use of judgement and estimates in assessing the projected future trading performances of relevant operations.

These judgements and estimates are subject to risk and uncertainty hence there is a possibility that changes in circumstances will alter expectations which may impact on the amount of the deferred tax asset in respect of tax losses recognized on the Balance Sheet. In such circumstances the carrying amount of this asset may require adjustment resulting in a corresponding credit or charge to the Income Statement.

Defined benefit superannuation plans Various actuarial assumptions are utilized in the determination of the Group’s defined benefit superannuation plan obligations.

These assumptions are detailed in Note 20.

2. Operating Segments 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.

92 Ansell Limited – Annual Report 2013 External Revenue Segment Result 2013 2012 2013 2012 A$m A$m A$m A$m Operating segments Industrial 550.0 489.0 90.2 81.3 Medical 341.2 346.0 40.6 38.6 Sexual Wellness 224.2 210.9 33.6 32.2 Specialty Markets 224.6 172.4 11.7 7.1 Total operating segments 1,340.0 1,218.3 176.1 159.2 Corporate costs (8.9) (9.8) Earnings before interest and tax (EBIT) 167.2 149.4 Net interest expense and other financing costs (10.5) (4.9) Profit before income tax 156.7 144.5 Income tax (15.9) (11.5) Profit for the period 140.8 133.0 Non-controlling interests (4.0) (3.0) Total consolidated 1,340.0 1,218.3 136.8 130.0 Regional information Asia Pacific 273.7 259.8 63.7 62.0 Europe, Middle East and Africa 558.6 463.7 69.7 61.0 Latin America and Caribbean 99.2 80.5 13.8 10.2 North America 408.5 414.3 28.9 26.0 Total regional information 1,340.0 1,218.3 176.1 159.2

Assets Employed Liabilities 2013 2012 2013 2012 A$m A$m A$m A$m Operating segments Industrial 474.6 335.3 103.2 100.7 Medical 302.1 284.2 75.9 81.5 Sexual Wellness 224.8 200.0 41.6 33.6 Specialty Markets 290.8 123.2 60.4 22.9 Total operating segments 1,292.3 942.7 281.1 238.7 Corporate assets/liabilities 210.1 156.3 721.0 388.8 Cash 333.0 249.3 – – Total consolidated 1,835.4 1,348.3 1,002.1 627.5 Regional information Asia Pacific 306.3 242.3 101.8 95.0 Europe, Middle East and Africa 225.7 143.1 90.4 52.6 Latin America and Caribbean 63.8 33.1 24.4 5.6 North America 177.7 191.9 64.5 85.5 Goodwill and brand names 518.8 332.3 – – Total regional information 1,292.3 942.7 281.1 238.7

Ansell Limited – Annual Report 2013 93 Notes to the Financial Statements continued

2. Operating Segments continued

(a) Corporate costs Represents costs of the Statutory Head Office and part of the costs of the Corporate Head Office.

(b) Cash Cash also includes Accufix Pacing Leads restricted deposits.

(c) Regional information The allocation of Operating Revenue and Operating Results reflect the geographical regions in which the products are sold to external customers.

Assets Employed (excluding goodwill and brand names) 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 United States and Mexico and sales activity.

(d) Country of domicile The Company’s country of domicile is Australia. The Operating Revenue and Assets Employed for the Australian trading operations (reported within the Asia Pacific region) are as follows:

2013 2012 A$m A$m Operating revenue 131.3 137.8 Assets employed 63.4 60.6

(e) Operating segments’ capital expenditure Industrial 14.1 11.8 Medical 7.7 8.8 Sexual Wellness 4.7 2.4 Specialty Markets 3.3 2.6

(f) Operating segments’ depreciation Industrial 7.0 5.2 Medical 8.1 8.4 Sexual Wellness 3.1 3.0 Specialty Markets 2.7 1.3

3. Total Revenue 2013 2012 A$m A$m Revenue from the sale of goods 1,340.0 1,218.3 Total revenue 1,340.0 1,218.3

94 Ansell Limited – Annual Report 2013 4. Profit Before Income Tax 2013 2012 A$m A$m Profit before income tax has been arrived at after charging/(crediting) the following items: Net financing costs Interest expense 15.2 9.7 Other financing costs 2.8 2.0 Interest income (7.5) (6.8) Total net financing costs 10.5 4.9

Depreciation Buildings 1.3 1.5 Plant and equipment 19.2 15.8

Amortization Leasehold land and buildings 1.8 1.2 Brand names 0.1 – Capitalized development costs 1.7 1.6 Capitalized software costs 3.8 1.8

Research and development costs Expensed as incurred 12.9 10.7

Net bad debts expense (0.1) (0.3)

Amounts set aside to/(released from) provision for: Impairment of trade debtors (0.9) (0.7) Rationalization and restructuring costs (0.5) (0.3) Insurance claims (0.9) 0.1

Employee-related expenses Wages and salaries 194.8 165.6 Increase in provision for employee entitlements 11.2 10.6 Defined contribution superannuation plan expense 8.5 8.1 Defined benefit superannuation plan expense 1.5 1.5 Equity settled share-based payments expense 1.3 0.2

Net foreign exchange loss/(gain) 2.7 (4.8) Gains arising from sale of property, plant and equipment (3.8) (8.1) Operating lease rentals 24.8 21.1 Write-down in value of inventories 2.2 2.3

5. Auditors’ Remuneration 2013 2012 A$’000 A$’000 Audit and review of the financial reports: Auditors of Ansell Limited and Australian entities – KPMG 1,122 1,088 Other member firms of KPMG 1,631 1,606 2,753 2,694 Other services: Other audit and assurance services Other member firms of KPMG 146 114 Taxation and other services Other member firms of KPMG 47 58 Total other services 193 172 Total auditors’ remuneration 2,946 2,866

Ansell Limited – Annual Report 2013 95 Notes to the Financial Statements continued

6. Issued Capital and Reserves (a) Issued capital 2013 2012 A$m A$m Issued capital 130,617,963 (2012 – 130,656,668) ordinary shares, fully paid 861.0 862.2 67,900 (2012 – 67,900) Executive Share Plan shares, paid to 5 cents – – Total issued capital 861.0 862.2

Movement in shares on issue Number of Shares Ordinary shares Balance at 1 July 130,656,668 133,011,550 Conversion of performance rights and exercise of options 184,671 97,812 Buy-back/cancellation of shares (223,376) (2,452,694) Balance at 30 June 130,617,963 130,656,668

Executive Share Plan shares Balance at 1 July 67,900 67,900 Balance at 30 June 67,900 67,900

The Company does not have authorized capital or par value in respect of its issued shares.

Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at shareholders’ meetings. In the event of winding up of the Company ordinary shareholders rank after all other shareholders and creditors and are fully entitled to any proceeds of liquidation.

Share buy-back On 15 August 2011 the Company announced an on-market buy-back program of up to 5 million shares to be completed within 12 months. Under this program, a total of 2,452,694 shares were bought back during the previous year. No further buy-backs were made under this program in the current year. This program has now ceased.

On 13 February 2013 the Company announced a further on-market buy-back program of 2 to 3 million shares. Under this program 223,376 shares have been bought back during the year.

Executive Share Plan During the financial year, no amounts outstanding on existing Executive Plan shares were paid (2012 – nil). Shares allotted under the Pacific Dunlop Executive Share Plan (which was discontinued in 1996) have been paid to 5 cents per share. Refer to Note 23 Ownership-based Remuneration Schemes for details of the price payable for shares issued under this Plan.

Options As at the date of this Report 64,415 (2012 – 249,086) unissued shares in the Company remain under option.

(b) Reserves Nature and purpose of reserves Share-based payments This reserve is used to record the value of equity benefits provided to employees as part of their remuneration under the Ansell Limited Stock Incentive Plan, the CEO Special Long Term Incentive Plan and the 2013 Long Term Incentive Plan. Refer to Note 23 Ownership-based Remuneration Schemes for further details of these plans.

Hedging This reserve records the portion of the unrealized gains or losses on cash flow hedges that are deemed to be effective.

General In certain jurisdictions regulatory requirements result in appropriations being made to a general reserve. The amount in the general reserve is available for release to retained profits/(accumulated losses).

96 Ansell Limited – Annual Report 2013 Foreign currency translation The foreign currency translation reserve records the foreign currency differences arising from the translation of the financial statements of foreign operations where their functional currency is different to the presentation currency of the Group, as well as the translation of borrowings or any other currency instruments that hedge the Company’s net investment in a foreign operation. Refer to Note 1 Summary of Significant Accounting Policies.

Transactions with non-controlling interests Represents the excess paid over the fair value of assets acquired as a result of the purchase of additional equity in non- wholly-owned subsidiaries.

Fair value reserve This reserve records the cumulative net change in the fair value of financial assets.

7. Income Tax 2013 2012 A$m A$m Prima facie income tax calculated at 30% (2012: 30%) on profit before income tax 47.0 43.4 Investment and export incentive allowances (2.8) (2.5) Net lower overseas tax rates (2.6) (2.4) Utilization/recognition of previously unbooked tax losses* (25.2) (20.6) Reversal of valuation allowance against deferred tax asset – (5.4) Other permanent differences (0.5) (1.0) Income tax expense attributable to profit before income tax 15.9 11.5 Income tax expense attributable to profit before income tax is made up of: Current year income tax 16.1 26.5 Deferred income tax attributable to: Increase in deferred tax liability 3.3 2.7 Increase in deferred tax asset (3.5) (17.7) 15.9 11.5

* Includes additional net booked tax losses of $7.8 million (2012 – $4.3 million).

2013 2012 A$m A$m Income tax benefit/(expense) recognized in other comprehensive income Actuarial loss on defined benefit pension/post-retirement health benefit plans 2.0 2.3 Change in fair value of available for sale financial assets 0.5 0.3 Movement in effective hedges for year (1.3) 3.0 1.2 5.6

8. Dividends Paid or Declared 2013 2012 A$m A$m Dividends paid A final dividend of 20.5 cents per share unfranked for the year ended 30 June 2012 (June 2011 – 19.0 cents unfranked) was paid on 21 September 2012 (2011 – 21 September 2011) 26.8 25.3 An interim dividend of 16.0 cents per share unfranked for the year ended 30 June 2013 (June 2012 – 15.0 cents unfranked) was paid on 20 March 2013 (2012 – 14 March 2012) 20.9 19.6 47.7 44.9

Dividends declared Since the end of the financial year the Directors have declared a final dividend of 22.0 cents per share unfranked, for the year ended 30 June 2013.

The financial effect of this dividend has not been brought to account in the financial statements for the year ended 30 June 2013 and will be recognized in subsequent financial reports.

Dividend franking account The balance of the dividend franking account as at 30 June 2013 was nil (2012 – nil).

Ansell Limited – Annual Report 2013 97 Notes to the Financial Statements continued

9. Cash and Cash Equivalents 2013 2012 A$m A$m Cash on hand 0.5 0.7 Cash at bank 86.9 60.8 Short-term deposits 241.9 184.3 329.3 245.8 Restricted deposits 3.7 3.5 Total cash and cash equivalents 333.0 249.3

Restricted deposits represent cash set aside (under Court orders) to cover the provisions established to address any remaining liability of members of the Group for claims arising with respect to the Accufix Pacing Lead (refer Note 19 Provisions – Provision for Accufix Pacing Lead related expenses).

10. Trade and Other Receivables 2013 2012 A$m A$m Current Trade debtors 286.9 209.8 Allowance for impairment (9.9) (7.1) Provision for rebates and allowances (35.5) (27.5) 241.5 175.2 Other amounts receivable 11.7 9.5 Total current 253.2 184.7 Non-current Other amounts receivable 3.3 2.1 Total non-current 3.3 2.1 Total trade and other receivables 256.5 186.8

The reconciliation of allowance for impairment – trade debtors is presented below: 2013 2012 A$m A$m Balance at the beginning of the financial year 7.1 10.5 Amounts credited to the Income Statement (0.9) (0.7) Amounts utilized for intended purposes – (2.8) Amounts from businesses/entities acquired 2.7 – Net exchange differences on translation of foreign operations 1.0 0.1 Balance at the end of the financial year 9.9 7.1

11. Inventories 2013 2012 A$m A$m Raw materials 46.5 23.7 Work in progress 19.7 13.8 Finished goods 213.8 174.9 Other stock – 0.1 Total inventories 280.0 212.5 Inventories recognized as an expense 773.6 716.9

98 Ansell Limited – Annual Report 2013 12. Current Assets – Other 2013 2012 A$m A$m Prepayments 12.5 7.2 Engineering spares 3.1 2.8 Total current assets – other 15.6 10.0

13. Investments 2013 2012 A$m A$m Investments Other investments At fair value 3.0 4.0 Total investments 3.0 4.0

14. Property, Plant and Equipment 2013 2012 A$m A$m (a) Freehold land At cost 14.0 12.6

(b) Freehold buildings At cost 57.6 45.0 Provision for depreciation (30.4) (21.2) 27.2 23.8

(c) Leasehold land and buildings At cost 61.7 43.9 Provision for amortization (22.5) (17.1) 39.2 26.8

(d) Plant and equipment At cost 459.8 339.1 Provision for depreciation (347.4) (263.2) 112.4 75.9

(e) Buildings and plant under construction At cost 8.3 11.5 Total property, plant and equipment 201.1 150.6

Ansell Limited – Annual Report 2013 99 Notes to the Financial Statements continued

14. Property, Plant and Equipment continued

Reconciliations Reconciliations of the balances for each class of property, plant and equipment are set out below:

2013 2012 Note A$m A$m Freehold land Balance at the beginning of the financial year 12.6 12.8 Additions through entities/businesses acquired 27 0.9 – Disposals/write-downs (0.5) – Net exchange differences on translation of foreign operations 1.0 (0.2) Balance at the end of the financial year 14.0 12.6

Freehold buildings Balance at the beginning of the financial year 23.8 25.0 Additions 0.1 – Additions through entities/businesses acquired 27 3.1 – Disposals/write-downs (1.7) – Transfer from buildings and plant under construction 0.8 1.1 Depreciation (1.3) (1.5) Net exchange differences on translation of foreign operations 2.4 (0.8) Balance at the end of the financial year 27.2 23.8

Leasehold land and buildings Balance at the beginning of the financial year 26.8 25.5 Additions 1.8 0.4 Additions through entities/businesses acquired 27 8.1 – Disposals/write-downs (1.1) (0.8) Transfer from buildings and plant under construction 2.4 2.2 Amortization (1.8) (1.2) Net exchange differences on translation of foreign operations 3.0 0.7 Balance at the end of the financial year 39.2 26.8

Plant and equipment Balance at the beginning of the financial year 75.9 72.1 Additions 7.8 5.6 Additions through entities/businesses acquired 27 14.8 1.1 Disposals/write-downs (0.6) (1.0) Transfer from buildings and plant under construction 23.6 12.4 Depreciation (19.2) (15.8) Net exchange differences on translation of foreign operations 10.1 1.5 Balance at the end of the financial year 112.4 75.9

Buildings and plant under construction Balance at the beginning of the financial year 11.5 5.5 Additions 23.2 21.6 Additions through entities/businesses acquired 27 0.1 – Transfers to property, plant and equipment (26.8) (15.7) Net exchange differences on translation of foreign operations 0.3 0.1 Balance at the end of the financial year 8.3 11.5

100 Ansell Limited – Annual Report 2013 15. Intangible Assets 2013 2012 A$m A$m Brand names At cost Balance at the beginning of the financial year 107.4 104.1 Additions through entities/businesses acquired – 4.1 Amounts written off to the Income Statement (0.2) – Net exchange differences on translation of foreign operations 1.8 (0.8) Balance at the end of the financial year 109.0 107.4

Provision for amortization and impairment Balance at the beginning of the financial year – – Amortization 0.1 – Balance at the end of the financial year 0.1 – Written down value of brand names at the end of the financial year 108.9 107.4

Goodwill At cost Balance at the beginning of the financial year 357.2 315.8 Additions through entities/businesses acquired 159.8 36.6 Net exchange differences on translation of foreign operations 37.7 4.8 Balance at the end of the financial year 554.7 357.2

Provision for amortization and impairment Balance at the beginning of the financial year 132.3 128.2 Net exchange differences on translation of foreign operations 12.5 4.1 Balance at the end of the financial year 144.8 132.3 Written down value of goodwill at the end of the financial year 409.9 224.9

Development costs At cost Balance at the beginning of the financial year 17.9 13.5 Expenditure capitalized in the current period 6.2 4.3 Previously capitalized costs charged to the Income Statement (5.3) – Net exchange differences on translation of foreign operations – 0.1 Balance at the end of the financial year 18.8 17.9

Provision for amortization and impairment Balance at the beginning of the financial year 7.7 6.1 Accumulated amortization on previously capitalized costs charged to the Income Statement (5.3) – Amortization 1.7 1.6 Balance at the end of the financial year 4.1 7.7 Written down value of development costs at the end of the financial year 14.7 10.2

Software costs At cost Balance at the beginning of the financial year 48.9 39.9 Additions 6.1 9.0 Net exchange differences on translation of foreign operations 0.2 – Balance at the end of the financial year 55.2 48.9

Provision for amortization and impairment Balance at the beginning of the financial year 1.8 – Amortization 3.8 1.8 Balance at the end of the financial year 5.6 1.8 Written down value of software costs at the end of the financial year 49.6 47.1

Total intangible assets 583.1 389.6

Ansell Limited – Annual Report 2013 101 Notes to the Financial Statements continued

15. Intangible Assets continued

Amortization charge The amortization of brand names, development and software costs is recognized in selling, general and administration costs in the Income Statement.

Impairment testing of goodwill and brand names Goodwill and brand names are tested for impairment annually, or more frequently if events or changes in circumstances indicate that the carrying values may be impaired.

For the purposes of impairment testing, goodwill and brand names are allocated to cash-generating units (CGUs), which equate to the Group’s reportable business segments, i.e. Industrial, Medical, Sexual Wellness and Specialty Markets upon acquisition.

Carrying amount of goodwill and brand names allocated to each of the CGUs: 2013 2012 A$m A$m Industrial 187.1 130.4 Medical 100.7 89.3 Sexual Wellness 90.2 82.3 Specialty Markets 140.8 30.3 518.8 332.3

The recoverable amount of the CGUs has been determined based on a value in use calculation utilising five-year cash flow projections based on budgets for the next financial year as approved by the Board and internal forecasts for the 2015/2016 and 2016/2017 financial years. A zero growth rate has been assumed for the subsequent two years. The terminal value is based on the cash flows for year five and a zero growth rate.

The pre-tax discount rate applied is 10 per cent (2012 – 10 per cent) which equates to the Group’s pre-tax weighted average cost of capital.

The results of the impairment testing indicated that the value in use of each of the CGUs was in excess of the carrying value of its net operating assets (inclusive of goodwill and brand names) and no impairment charge was necessary.

16. Deferred Tax Assets 2013 2012 A$m A$m Deferred tax assets arising from: Deductible temporary differences 54.3 52.5 Accumulated tax losses 76.2 67.0 130.5 119.5

Deferred tax assets are attributable to the following: 2013 2012 A$m A$m Trading stock tax adjustments 8.6 8.2 Provisions 26.1 25.8 Accruals 6.7 7.4 Plant and equipment and capital allowances 0.9 0.8 Capitalized development costs 12.0 10.3 Accumulated tax losses 76.2 67.0 Total deferred tax assets 130.5 119.5

The Group has not recognized the tax value of deferred tax assets in respect of trading tax losses of $64.4 million (2012 – $86.4 million) and $153.5 million of capital losses (2012 – $153.2 million). Deferred tax assets in respect of these losses have not been recognized as it is not probable that future taxable profits will be available against which these losses can be utilized.

102 Ansell Limited – Annual Report 2013 Details of the movement in the balance of deferred tax assets are as follows: 2013 2012 A$m A$m Balance at the beginning of the financial year 119.5 98.1 Over provision of prior year balance 1.8 0.3 Amount credited to the Income Statement/Statement of Comprehensive Income 3.5 17.7 Net exchange differences on translation of foreign operations 5.7 3.4 Balance at the end of the financial year 130.5 119.5

An increase in deferred tax assets of $1.2 million was recognized in comprehensive income during the year (2012 – increase of $5.6 million).

17. Trade and Other Payables 2013 2012 A$m A$m Current Trade creditors 182.8 136.1 Other creditors 34.5 18.7 Total current 217.3 154.8 Non-current Other creditors 10.8 5.0 Total non-current 10.8 5.0 Total trade and other payables 228.1 159.8

18. Interest Bearing Liabilities 2013 2012 A$m A$m Current Loans repayable in: Canadian dollars 10.3 9.6 Indian rupees 1.3 1.3 US dollars 85.4 5.8 Total current 97.0 16.7 Non-current Loans repayable in: Euros 232.4 80.5 US dollars 253.1 203.7 Total non-current 485.5 284.2 Total interest bearing liabilities 582.5 300.9

The Group has revolving credit bank facilities of US$425 million and Euro 50 million and Senior Notes of the equivalent of US$200 million. The US$425 million (US$226.3 million drawn down) matures on various dates between 20 December 2013 and 14 December 2017. Of the Euro 50 million, Euro 27.5 million matures on 24 November 2014 (fully drawn down) and Euro 22.5 million (Euro 17.5 million drawn down) matures on 25 May 2015. The Senior Notes for US$70 million and Euro 101.5 million mature between 6 June 2020 and 10 May 2025. These facilities can be accessed by certain Australian, US and European subsidiaries.

There are a number of financial covenants attaching to the bank and note facilities including restrictions on the level of borrowings of non-guarantor subsidiaries and ensuring certain financial ratios are maintained. If any breaches of these covenants occur, all monies outstanding under the facility become immediately due and payable. The Company is in compliance with all covenants. The interest rates for these facilities are determined based on market rates at the time amounts are drawn down.

Ansell Limited – Annual Report 2013 103 Notes to the Financial Statements continued

18. Interest Bearing Liabilities continued

The following table sets out details in respect of Interest Bearing Liabilities at 30 June:

Interest Financial Rate Year of 2013 Nature and Currency of Borrowing % p.a. Maturity A$m Bank loans Canadian dollars 2.47 2014 10.3 Euros 2.02 2015 14.0 Euros 2.03 2015 7.0 Euros 2.06 2015 14.0 Euros 4.71 2015 38.7 Euros 4.81 2015 3.5 Euros 2.05 2016 12.7 Indian rupees 12.59 2014 1.3 US dollars 1.74 2014 5.4 US dollars 3.85 2014 16.2 US dollars 3.88 2014 1.6 US dollars 4.15 2014 21.5 US dollars 4.20 2014 16.2 US dollars 4.62 2014 10.8 US dollars 4.75 2014 5.4 US dollars 4.87 2014 5.4 US dollars 4.25 2015 26.9 US dollars 1.79 2016 53.9 US dollars 4.76 2016 10.8 US dollars 1.65 2017 33.9 US dollars 3.76 2017 19.9 US dollars 2.64 2018 32.3 Other loans Euros 3.37 2020 42.1 Euros 3.52 2022 50.2 Euros 2.21 2023 50.2 US dollars 0.28 2014 2.9 US dollars 3.75 2020 21.5 US dollars 4.05 2025 53.9 Total interest bearing liabilities 582.5

104 Ansell Limited – Annual Report 2013 Interest Financial Rate Year of 2012 Nature and Currency of Borrowing % p.a. Maturity A$m Bank loans Canadian dollars 2.45 2013 9.6 Euros 2.28 2015 6.2 Euros 4.71 2015 34.1 Euros 4.81 2015 3.1 Indian rupees 13.20 2013 1.3 US dollars 1.74 2014 10.0 US dollars 1.75 2014 6.0 US dollars 1.99 2014 4.9 US dollars 3.76 2014 18.5 US dollars 3.85 2014 4.9 US dollars 3.88 2014 1.5 US dollars 4.15 2014 20.0 US dollars 4.2 2014 15.0 US dollars 4.62 2014 10.0 US dollars 4.87 2014 4.9 US dollars 5.82 2014 4.9 US dollars 2.04 2014 4.9 US dollars 1.62 2015 31.4 US dollars 4.25 2015 24.8 US dollars 2.15 2016 2.0 US dollars 3.85 2016 10.0 US dollars 4.78 2016 10.0 Other loans Euros 3.37 2020 37.1 US dollars 0.20 2013 5.8 US dollars 3.75 2020 20.0 Total interest bearing liabilities 300.9

19. Provisions 2013 2012 A$m A$m Current Provision for employee entitlements 47.6 41.4 Provision for rationalization and restructuring costs 1.4 1.9 Provision for Accufix Pacing Lead related expenses 3.6 3.4 Provision for insurance claims 1.9 2.8 Total current 54.5 49.5 Non-current Provision for employee entitlements 19.5 20.0 Total non-current 19.5 20.0 Total provisions 74.0 69.5

Ansell Limited – Annual Report 2013 105 Notes to the Financial Statements continued

19. Provisions continued

Reconciliations of the carrying amount of each class of provision, except for employee entitlements, are set out below:

2013 2012 A$m A$m Provision for rationalization and restructuring Balance at the beginning of the financial year 1.9 2.2 Amounts credited to the Income Statement (0.5) (0.3) Balance at the end of the financial year 1.4 1.9

Provision for Accufix Pacing Lead related expenses Balance at the beginning of the financial year 3.4 3.3 Net exchange differences on translation of foreign operations 0.2 0.1 Balance at the end of the financial year 3.6 3.4

Provision for insurance claims Balance at the beginning of the financial year 2.8 2.7 Amounts charged/(credited) to the Income Statement (0.9) 0.1 Balance at the end of the financial year 1.9 2.8

Provision for rationalization and restructuring costs This provision covers a variety of matters predominantly relating to the sale of businesses and former subsidiaries and is regularly reviewed in light of issues that have been settled or new events that have arisen during the reporting period.

Provision for Accufix Pacing Lead related expenses This provision is to meet the costs of patients associated with the monitoring and (where appropriate) explantation of Accufix Pacing Leads and for legal costs in defence of claims made in respect of the Accufix Pacing Leads. This provision is covered by cash required to be set aside by the Courts (refer to Note 9 – Cash and Cash Equivalents – Restricted deposits). Provision for insurance claims Corrvas Insurance Pty. Ltd. and Corrvas Insurance (Singapore) Pte. Ltd. are entities authorized by their respective jurisdiction’s regulatory authority to operate as captive insurance companies for Ansell Limited and its subsidiaries. This provision comprises current open claims where the reserves are set for the total estimated costs of individual claims that have not been fully paid out and ‘Incurred but not reported’ (IBNR) claims.

In Australia, the provision is required to be supported by a ‘Liability Valuation Report’ prepared by an actuary approved by the Australian Prudential Regulatory Authority. In Singapore, captives are exempted from undertaking an actuarial assessment of their insurance liabilities and are not required to lodge such a report with the Monetary Authority of Singapore (MAS). In line with MAS regulations, the IBNR estimates are in accordance with a policy approved by the Board of Corrvas Insurance (Singapore) Pte. Ltd.

20. Retirement Benefit Obligations Certain members of the Group contribute to defined benefit and defined contribution superannuation plans maintained to provide superannuation benefits for employees.

The following sets out details in respect of defined benefit plans.

(a) Balance Sheet amounts 2013 2012 A$m A$m Present value of accumulated defined benefit obligations 71.8 65.7 Fair value of defined benefit plan assets (50.8) (48.0) Net liability in the Balance Sheet 21.0 17.7

Certain members of the Group are obliged to contribute to the various superannuation plans as a consequence of legislation or Trust Deeds; legal enforceability is dependent on the terms of the legislation or the Trust Deeds.

106 Ansell Limited – Annual Report 2013 (b) Reconciliations of benefit obligations and plan assets 2013 2012 A$m A$m Present value of accumulated defined benefit obligations Balance at the beginning of the financial year 65.7 62.8 Current service cost 2.3 1.8 Interest cost 2.1 2.5 Contributions by plan participants 0.1 0.1 Actuarial losses 4.7 5.7 Taxes and expenses paid (0.1) (0.2) Settlements (2.7) (4.2) Benefits paid (6.5) (3.3) Acquired entities 0.7 – Exchange rate changes/other movements 5.5 0.5 Balance at the end of the financial year 71.8 65.7

Fair value of plan assets Balance at the beginning of the financial year 48.0 50.4 Expected return on plan assets 2.9 3.0 Actuarial (losses)/gains 1.0 (2.4) Contributions by employer 4.4 3.5 Contributions by plan participants 0.1 0.1 Taxes and expenses paid (0.1) (0.2) Settlements (2.7) (4.4) Benefits paid (6.5) (3.3) Exchange rate changes/other movements 3.7 1.3 Balance at the end of the financial year 50.8 48.0

(c) Categories of plan assets The major categories of plan assets are as follows:

2013 2012 % % Equity securities 61 58 Fixed interest securities 30 32 Property 2 3 Other 7 7

(d) Amounts recognized in the Income Statement 2013 2012 A$m A$m Current service cost 2.3 1.8 Interest cost 2.1 2.5 Settlements – 0.2 Expected return on plan assets (2.9) (3.0) Total expense recognized in the Income Statement 1.5 1.5

The expense is recognized in the following line within the Income Statement: 2013 2012 A$m A$m Selling, general and administration 1.5 1.5 Actual return on plan assets 3.9 0.6

Ansell Limited – Annual Report 2013 107 Notes to the Financial Statements continued

20. Retirement Benefit Obligations continued

(e) Amounts recognized directly in retained profits/accumulated losses 2013 2012 A$m A$m Actuarial loss recognized for the year in other comprehensive income (3.7) (8.1) Cumulative actuarial loss in other comprehensive income (22.0) (18.3)

(f) Principal actuarial assumptions The principal actuarial assumptions used (expressed as a weighted average) were as follows:

2013 2012 % % Discount rate 3.3 3.9 Expected return on plan assets 6.0 6.1 Future salary increases 3.8 3.9

Expected return on plan assets The expected return on assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each class. The returns used for each asset class are net of any investment expenses.

(g) Historic summary 2013 2012 2011 2010 2009 A$m A$m A$m A$m A$m Defined benefit plan obligation 71.8 65.7 62.8 72.0 69.0 Plan assets (50.8) (48.0) (50.4) (51.6) (43.0) Deficit 21.0 17.7 12.4 20.4 26.0 Experience adjustments (gain)/loss – plan liabilities 0.2 (0.3) 0.6 0.1 0.3 Experience adjustments loss/(gain) – plan assets (1.3) 2.5 (1.9) (6.7) 17.4

The Group expects $2.0 million in contributions to be paid to its defined benefit plans during the year ending 30 June 2014.

(h) Defined contribution superannuation plans 2013 2012 A$m A$m Contributions to defined contribution plans during the year 8.5 8.1

21. Deferred Tax Liabilities The tax effect of temporary differences that give rise to significant portions of the provision for deferred income tax are presented below:

2013 2012 A$m A$m Depreciation on plant and equipment adjustments 6.1 4.6 Amortization of intangible assets 25.3 22.4 Other 3.5 2.6 Total deferred tax liabilities 34.9 29.6

Details of the movement in the balance of deferred tax liabilities are as follows: 2013 2012 A$m A$m Balance at the beginning of the financial year 29.6 25.7 Over provision of prior year balance (0.8) – Amount charged to the Income Statement 3.3 2.7 Net exchange differences on translation of foreign operations 2.8 1.2 Balance at the end of the financial year 34.9 29.6

108 Ansell Limited – Annual Report 2013 22. Expenditure Commitments

2013 2012 A$m A$m (a) Capital expenditure commitments Contracted but not provided for in the financial statements: Plant and equipment 3.0 4.1 3.0 4.1 Payable within one year 3.0 4.1

(b) Operating lease commitments Future operating lease commitments not provided for in the financial statements and payable: Within one year 4.9 3.3 One year or later and no later than five years 16.4 11.4 Later than five years 6.7 11.0 28.0 25.7

The Group leases property under operating leases expiring from one to 15 years. Leases generally provide the Group with a right of renewal at which time all terms are renegotiated.

23. Ownership-based Remuneration Schemes Ansell Limited Stock Incentive Plan The Company had previously operated the Ansell Limited Stock Incentive Plan under which options, Performance Share Rights (PSRs) and Performance Rights (PRs) were granted to employees. The final grant of PRs and options under this Plan (granted in 2008) were subject to a three-year performance period that was tested at the end of the 2010 financial year.

CEO Special Long Term Incentive Plan At the time of his appointment the Managing Director and Chief Executive Officer was allocated 129,730 PRs pursuant to the CEO Special Long Term Incentive Plan. The number of rights granted was determined by dividing the target remuneration value of US$1,000,000 by the value of the rights, which was determined based on Ansell’s average share price over the five days preceding the announcement of Mr. Nicolin’s formal appointment to the role.

2013 Long Term Incentive Plan The above plan involves the granting of PSRs to the Managing Director, other members of the Executive Leadership Team and Vice Presidents.

In accordance with the disclosure requirements of Australian Accounting Standards remuneration includes a proportion of the fair value of PRs and PSRs granted or outstanding during the year. The fair value is determined as at grant date and is progressively allocated over the vesting period for these securities. The amount included as remuneration in respect of PSRs (as disclosed in the Remuneration Report and Note 25 Key Management Personnel Disclosures) is not related to, or indicative of, the benefit that individual executives may ultimately realize should the PSRs vest.

The fair value of PSRs is calculated at grant date. The fair values and the factors and assumptions used in determining the fair values of the PSRs applicable for the 2013 financial year are as follows:

Share Grant Vesting Fair Price on Risk-free Dividend Instrument Date Date Value Grant Date Interest Rate Yield PSRs 10/8/2012 30/6/2015 $12.94 $13.90 N/A 2.5%

The PSRs are subject to a gateway condition and a performance condition. As the hurdles within these conditions are all non-market based performance hurdles, the valuation excludes the impact of performance hurdles.

Options – generally As at the date of this Report 64,415 unissued ordinary shares in the Company remain under option.

Ansell Limited – Annual Report 2013 109 Notes to the Financial Statements continued

23. Ownership-based Remuneration Schemes continued

Discontinued Executive Share Plan The Company (when it was Pacific Dunlop Limited) historically operated the Pacific Dunlop Executive Share Plan (Executive Plan), which was discontinued in 1996.

Shares issued under the Executive Plan to selected employees (executives) were paid up to 5 cents and were subject to restrictions for a period. While partly paid, the shares are not transferable, carry no voting rights and no entitlement to dividends (but are entitled to participate in bonus or rights issues as if fully paid). The price payable for shares issued under the Executive Plan varies according to the event giving rise to a call being made. Once restrictions ceased the price payable upon a call being made is the lesser of $10.00 ($2.50 for issues prior to 13 September 1991) and the last sale price of the Company’s ordinary shares on ASX Limited.

The number of Executive Plan Shares (ordinary plan shares paid to 5 cents) as at balance date are shown in Note 6 Issued Capital and Reserves.

The market price of the Company’s shares as at 30 June 2013 was $17.63.

24. Financial Risk Management Ansell has a range of financial policies designed to enable management to ensure financial risk (including foreign exchange and interest rate exposure) does not negatively affect the Group’s results. This is achieved as follows:

(a) Foreign exchange risk The Group is exposed to a number of foreign currencies however the predominant operating currency is the US dollar (US$). As such the Group has determined it appropriate to manage its foreign currency exposure against the US$. On this basis the Company manages its two types of exposures as follows: (i) Translation At 30 June and 31 December each year, the Group translates its accounts from US$ to Australian dollars (A$) for statutory reporting purposes in Australia. No foreign exchange contracts are taken out as these are non-cash journal entries.

(ii) Transaction Major revenue and cost currency net cash flow exposures are predominantly hedged back to US$ on a 12- to 18-month rolling basis so as to reduce any significant adverse impact of exchange rate fluctuations on the earnings per share guidance provided by the Company to the market.

The Group undertakes a range of derivative financial instruments, which can be defined in the following broad categories: (i) Forward/future contracts These transactions enable the Group to buy or sell specific amounts of foreign exchange or financial instruments at an agreed rate/price at a specified future date. Maturities of these contracts are predominantly up to one year.

(ii) Foreign exchange options This is a contract between two parties, which gives the buyer of the put or call option the right, but not the obligation, to transact at a specified exchange rate. The Group typically uses a combination of bought and sold options, generally for zero cost, to hedge foreign currency receivable and payable cash flows predominantly out to one year. Some options include knock out barrier levels, however under all option structures the Group’s minimum foreign exchange rate is known.

(b) Interest rate risk The Group has the broad aim of managing interest rate risk on its debt by setting a minimum level of interest rate risk days (the weighted average term of all interest rates in the portfolio) and a minimum fixed/floating interest rate ratio. The Group enters into interest rate swaps that enable parties to swap interest rates (from or to a fixed or floating basis) for a defined period of time. Maturities of the contracts are principally between one and 10 years.

Prior to the beginning of each year, the Group calculates its Financial Budget for the upcoming year using an updated set of financial assumptions and management’s view of the marketplace in the coming financial year. The Group forecasts interest rates for all debt repricing and new financing.

110 Ansell Limited – Annual Report 2013 In this context interest rate risk is the risk that the Group will, as a result of adverse movements in interest rates, experience:

• unacceptable variations to the cost of debt in the review period for which the Financial Budget has been finalized; and • unacceptable variations in interest expense from year to year.

It is recognized that movements in interest rates may be beneficial to the Group.

Within the context of the Group’s operations, interest rate exposure occurs from the amount of debt repricing that occurs in any one year.

The exposure to interest rate risk and the effective weighted average interest rate for interest bearing financial liabilities are set out below:

Weighted Fixed Interest repricing in: Average Effective 1 Year 1 to 2 2 to 5 >5 Interest Rate Floating or Less Years Years Years Total % A$m A$m A$m A$m A$m A$m 2013 Bank and other loans 2.5 360.3 4.3 – – 217.9 582.5 Effect of interest rate swaps* 0.7 (207.1) – 48.5 208.8 (50.2) – 153.2 4.3 48.5 208.8 167.7 582.5 2012 Bank and other loans 2.3 236.7 7.2 – – 57.0 300.9 Effect of interest rate swaps* 1.2 (161.7) – 92.0 69.7 – – 75.0 7.2 92.0 69.7 57.0 300.9

* Represents notional amount of interest rate swaps.

A separate analysis of debt by currency can be found at Note 18 – Interest Bearing Liabilities.

The table below shows the effect on profit for the period and equity, if interest rates had been 10 per cent higher or lower with all other variables held constant, taking into account all underlying exposures and related hedges. A sensitivity of 10 per cent has been selected as this is considered reasonable given the current level of both short-term and long-term US$ interest rates.

Profit for the period Equity 2013 2012 2013 2012 A$m A$m A$m A$m If interest rates were 10% higher with all other variables held constant – – 0.2 0.3 If interest rates were 10% lower with all other variables held constant – – (0.2) (0.3)

(c) Credit risk The credit risk on financial assets (excluding investments) of the Group, is the carrying amount, net of any provision for impairment, which has been recognized on the Balance Sheet.

The Group minimizes concentrations of credit risk by undertaking transactions with a large number of customers and counter-parties in various countries.

The Group is not materially exposed to any individual customer.

The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group does not hold any collateral.

Ansell Limited – Annual Report 2013 111 Notes to the Financial Statements continued

24. Financial Risk Management continued

The Group’s maximum exposure to credit risk at the reporting date was:

Carrying amount 2013 2012 A$m A$m Trade and other receivables 256.5 186.8

The ageing of the Group’s trade receivables is detailed below: Gross Trade Receivables Provision for Impairment 2013 2012 2013 2012 A$m A$m A$m A$m Within agreed terms 239.2 180.3 – – Past due 0–60 days 29.3 17.5 0.3 0.5 Past due 61–90 days 4.5 2.9 0.8 0.2 Past due 91 days or more 13.8 9.1 8.8 6.4 Total 286.8 209.8 9.9 7.1

(i) Credit risk by maturity The following table indicates the value of amounts owing by counter-parties by maturity. Based on the policy of not having material overnight exposures to an entity rated lower than A- by Standard & Poor’s or A3 by Moody’s Investors Service, the risk to the Group of counter-party default loss is not considered material.

Foreign Exchange Interest Rate Foreign Exchange Related Contracts Contracts Options Total 2013 2012 2013 2012 2013 2012 2013 2012 A$m A$m A$m A$m A$m A$m A$m A$m Term: 0–6 mths 0.4 – – – 3.9 4.6 4.3 4.6 6–12 mths 0.1 0.3 0.8 – 4.5 0.4 5.4 0.7 1–2 yrs – – – 1.5 – – – 1.5 2–5 yrs – – 1.0 – – – 1.0 – Total 0.5 0.3 1.8 1.5 8.4 5.0 10.7 6.8

(ii) Historical rate rollovers It is the Group’s policy not to engage in historical rate rollovers of forward exchange contracts except in circumstances where the maturity date falls on a bank holiday. In these instances, settlement occurs on the next trading day.

(iii) Hedges and anticipated future transactions The following table shows the Group’s deferred losses that are currently held on the Balance Sheet and the expected timing of recognition as revenue or expense:

Interest Rate Foreign Exchange 2013 2012 2013 2012 A$m A$m A$m A$m Unrealized losses Deferred Less than 1 year 2.0 – 1.5 4.6 1–2 years 2.2 3.5 0.1 – 2–5 years 0.8 5.1 – – >5 years 0.3 – – –

(d) Fair value The Directors consider that the carrying amount of recognized financial assets and financial liabilities approximates their net fair value with the exception of the derivative financial instruments detailed in the table below.

Refer to Note 1 Summary of Significant Accounting Policies for accounting policies in respect of the carrying values of financial assets and financial liabilities.

112 Ansell Limited – Annual Report 2013 The following table displays: (i) Face value This is the contract’s value upon which a market rate is applied to produce a gain or loss which becomes the settlement value of the derivative financial instrument.

(ii) Credit risk (derivative financial instruments) This is the maximum exposure to the Group in the event that all counter-parties who have amounts outstanding to the Group under derivative financial instruments, fail to honour their side of the contracts. The Group’s exposure is almost entirely to banks. Amounts owed by the Group under derivative financial instruments are not included.

(iii) Net fair value This is the amount at which the instrument could be realized between willing parties in a normal market in other than a liquidation or forced sale environment. The net amount owing to financial institutions under all derivative financial instruments would have been $7.5 million (2012 – $11.3 million owing to financial institutions) if all contracts were closed out on 30 June 2013.

Face Value Credit Risk Net Fair Value 2013 2012 2013 2012 2013 2012 A$m A$m A$m A$m A$m A$m Foreign exchange contracts Purchase/sale contracts: US dollars 22.6 10.9 0.3 0.3 0.2 0.3 Australian dollars 16.9 9.8 0.1 – – (0.1) Malaysian ringgits 36.9 12.6 – – (1.4) (0.6) Thai baht 6.1 12.8 – – (0.2) (0.4) Sri Lankan rupees 22.1 18.7 0.1 – (0.1) (3.6) Other currencies 13.1 16.3 – – (0.1) (0.2)

Foreign exchange options Euro/US dollars 210.2 62.3 4.7 2.6 1.6 2.4 Australian dollars/US dollars 9.9 11.1 0.8 0.1 0.8 0.1 Canadian dollars/US dollars 12.2 14.9 0.3 0.4 0.3 0.3 Pounds sterling/US dollars 4.0 2.8 0.1 0.1 0.1 – US dollars/Mexican peso 16.5 21.0 0.4 0.4 – (0.7) US dollars/Malaysian ringgits 78.5 34.5 1.1 0.8 (0.9) (0.1) US dollars/Thai baht 37.8 13.9 0.3 0.2 (1.2) (0.1) US dollars/Sri Lankan rupees 15.6 – 0.3 – – – Other currencies 22.4 14.0 0.4 0.4 (1.3) –

Interest rate contracts Interest rate swaps: Euro 119.0 37.2 – – (1.4) (1.7) US dollars 242.3 164.3 1.8 1.5 (3.9) (6.9) Total 886.1 457.1 10.7 6.8 (7.5) (11.3)

(iv) Fair Value Hierarchy The table below analyses financial instruments carried at fair value, by valuation method. The different methods have been defined as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Ansell Limited – Annual Report 2013 113 Notes to the Financial Statements continued

24. Financial Risk Management continued

Level 1 Level 2 Level 3 Total 2013 2012 2013 2012 2013 2012 2013 2012 A$m A$m A$m A$m A$m A$m A$m A$m Derivative financial assets – – 10.7 6.8 – – 10.7 6.8 Available for sale financial assets 2.6 3.6 – 0.4 0.4 3.0 4.0 Derivative financial liabilities – – 18.2 18.1 – – 18.2 18.1

In order to determine the fair value of the financial instruments, management used valuation techniques in which all significant inputs were based on observable market data.

(e) Liquidity Risk Liquidity risk is the risk of an unforeseen event or miscalculation in the required liquidity level that may result in the Group foregoing investment opportunities or not being able to meet its obligations in an orderly manner, and therefore give rise to poor investment income or to excessive borrowing costs.

The Group seeks to reduce the risk of:

(a) being forced to exit derivative financial instrument positions at below their real worth; or (b) finding it cannot exit the position at all, due to lack of liquidity in the market; by:

(a) dealing only in liquid contracts dealt by many counter-parties; (b) dealing only in large, highly liquid and stable international markets, and (c) ensuring maturity risk days (the weighted average term of all maturity dates in the portfolio) remain within a specified range.

The following table sets out the contractual maturities of the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows comprising principal and interest repayments.

Total Contractual Maturity (Years) Carrying Contractual Amount Cash Flows 0–1 1–2 2–5 >5 A$m A$m A$m A$m A$m A$m 2013 Trade and other creditors 228.1 228.1 217.3 0.8 10.0 – Bank and other loans 582.5 669.0 113.9 117.0 158.2 279.9 Total 810.6 897.1 331.2 117.8 168.2 279.9 2012 Trade and other creditors 177.9 177.9 172.9 1.3 3.7 – Bank and other loans 300.9 327.7 23.4 111.5 129.8 63.0 Total 478.8 505.6 196.3 112.8 133.5 63.0

(f) Foreign currency risk The Group operates internationally and is exposed to foreign currency risk arising from various currency exposures.

Foreign currency risk arises from future commercial transactions and recognized assets and liabilities in a currency that is not the operating currency of the Group. The Group’s operating currency is the US$.

The Group mitigates this risk by using foreign currency contracts, natural hedges and/or foreign currency options.

114 Ansell Limited – Annual Report 2013 As at 30 June the exposure to foreign currency risk from the Group’s primary trading currency (US$) is:

Net Payable 2013 2012 A$m A$m Net payable in non-US$ reporting entities 22.0 35.8

The following table demonstrates the estimated sensitivity to a 10 per cent increase/decrease in the US$ exchange rate, with all other variables held constant, on profit for the period and equity.

Profit for the period Equity 2013 2012 2013 2012 A$m A$m A$m A$m 10% increase in US$ exchange rate with all other variables held constant: (0.2) 4.7 6.9 (4.2) 10% decrease in US$ exchange rate with all other variables held constant: (0.7) (1.9) (0.2) 2.5

(g) Commodity Price Risk Ansell is a significant buyer of natural rubber latex and a range of synthetic latex products. It purchases these products in a number of countries in Asia, predominately Malaysia, Thailand and Sri Lanka. The Group is not active in hedging its purchases on rubber exchanges but can, from time to time, buy from suppliers or brokers at a fixed price for up to several months into the future.

25. Key Management Personnel Disclosures This note is to be read in conjunction with the Remuneration Report.

Key Management Personnel The following were Key Management Personnel of the Group during the financial year: Non-executive Directors Peter L Barnes Chairman (retired 22 October 2012) Glenn L L Barnes Chairman (appointed 22 October 2012) Ronald J S Bell John A Bevan (appointed 1 August 2012) L Dale Crandall W Peter Day Annie Lo (appointed 1 January 2013) Marissa T Peterson

Executive Director Magnus R Nicolin Managing Director and Chief Executive Officer

Other Key Management Personnel Peter B Carroll President and General Manager – Sexual Wellness GBU Scott Corriveau President and General Manager – Industrial GBU Tom Draskovics President and General Manager – Specialty Markets GBU Steve Genzer Senior Vice President – Operations Rustom F Jilla Senior Vice President and Chief Financial Officer (ceased employment 15 April 2013) Anthony Lopez President and General Manager – Medical GBU and LAC Region

Ansell Limited – Annual Report 2013 115 Notes to the Financial Statements continued

25. Key Management Personnel Disclosures continued

Key Management Personnel Remuneration 2013 2012 A$ A$ Short-term benefits 5,658,379 6,146,983 Post-employment benefits 662,714 820,936 Share-based payments 854,232 232,477 Long-term cash-based incentives 3,921,448 3,846,003 Termination payment – 2,890,176 11,096,773 13,936,575

Details of Remuneration Directors of Ansell Limited Details of the remuneration of all Directors of Ansell Limited is set out in the following tables:

2013 Post- employment Share-based Long-term Short-term Benefits Benefits Payments Incentive Performance Share Rights and Cash Salary Non-salary Superannuation Performance and Fees Cash Bonus Benefits Contributions Rights Cash-based Total A$ A$ A$ A$ A$ A$ A$ Non-executive P L Barnes 89,776 – – 5,490 – – 95,266 G L L Barnes 247,030 – – – – – 247,030 R J S Bell 131,109 – – 3,633 – – 134,742 J A Bevan 111,016 – – 9,991 – – 121,007 L D Crandall 137,514 – – 3,616 – – 141,130 W P Day 131,250 – – 11,812 – – 143,062 A Lo 65,157 – – 1,969 – – 67,126 M T Peterson 140,746 – – 3,820 – – 144,566 Executive M R Nicolin (CEO and Managing Director) 824,862 508,248 125,123 208,211 612,147 1,652,528 3,931,119 Total 1,878,460 508,248 125,123 248,542 612,147 1,652,528 5,025,048

2012 Post- employment Share-based Long-term Short-term Benefits Benefits Payments Incentive Cash Salary Non-salary Superannuation Performance and Fees Cash Bonus Benefits Contributions Rights Cash-based Total A$ A$ A$ A$ A$ A$ A$ Non-executive P L Barnes 270,023 – – 15,775 – – 285,798 G L L Barnes 148,349 – – – – – 148,349 R J S Bell 129,946 – – 3,503 – – 133,449 L D Crandall 136,319 – – 3,645 – – 139,964 W P Day 126,400 – – 11,376 – – 137,776 M T Peterson 141,396 – – 3,739 – – 145,135 Executive M R Nicolin (CEO and Managing Director) 829,875 561,955 99,701 296,205 232,477 1,498,947 3,519,160 Total 1,782,308 561,955 99,701 334,243 232,477 1,498,947 4,509,631

116 Ansell Limited – Annual Report 2013 Other Key Management Personnel Details of the remuneration of each of the other Key Management Personnel of the Group are set out in the following tables:

2013 Post- employment Share-based Long-term Other Short-term Benefits Benefits Payments Incentive Benefits Cash Salary Cash Non-salary Superannuation Performance Cash- Termination and Fees Bonus Benefits Contributions Share Rights based Payment Total A$ A$ A$ A$ A$ A$ A$ A$ P B Carroll 421,962 127,673 35,360 68,761 41,642 442,754 – 1,138,152 S Corriveau 353,168 100,504 379,088 76,477 55,899 586,951 – 1,552,087 T Draskovics 266,508 55,967 4,819 50,911 39,929 284,146 – 702,280 S Genzer 328,834 87,329 4,291 69,361 51,907 580,194 – 1,121,916 R F Jilla 352,925 – 29,489 86,663 – – – 469,077 A Lopez 330,051 195,435 73,145 61,999 52,708 374,875 – 1,088,213 Total 2,053,448 566,908 526,192 414,172 242,085 2,268,920 – 6,071,725

2012 Post- employment Share-based Long-term Other Short-term Benefits Benefits Payments Incentive Benefits Cash Salary Cash Non-salary Superannuation Performance Cash- Termination and Fees Bonus Benefits Contributions Share Rights based Payment Total A$ A$ A$ A$ A$ A$ A$ A$ P B Carroll 406,850 253,671 35,360 91,434 – 340,730 – 1,128,045 S Corriveau 334,185 193,731 125,216 72,510 – 482,584 – 1,208,226 T Draskovics 158,337 92,234 2,572 26,934 – 119,722 – 399,799 S Genzer 326,921 145,798 138,366 81,547 – 314,812 – 1,007,444 W J Heintz 281,498 – 58,128 61,666 – 201,649 2,890,176 3,493,117 R F Jilla 448,510 217,417 28,686 130,601 – 781,007 – 1,606,221 A Lopez 239,742 69,705 146,092 22,001 – 106,552 – 584,092 Total 2,196,043 972,556 534,420 486,693 – 2,347,056 2,890,176 9,426,944

Equity instruments Options, Performance Rights (PRs) and Performance Share Rights (PSRs) granted as compensation In previous years the Company operated the Ansell Limited Stock Incentive Plan under which options were issued to employees.

At the time of his appointment the Managing Director and Chief Executive Officer was allocated 129,730 PRs pursuant to the CEO Special Long Term Incentive Plan.

Under the 2013 Long Term Incentive Plan PSRs were granted to the Managing Director, other members of the Executive Leadership Team and Vice Presidents.

Ansell Limited – Annual Report 2013 117 Notes to the Financial Statements continued

25. Key Management Personnel Disclosures continued

Movement in options, PRs and PSRs on issue The movement in the number of options, PRs and PSRs over ordinary shares of Ansell Limited held, directly, indirectly or beneficially, by each of the Key Management Personnel, including their related parties, is as follows:

2013 Options Options/PRs/ Exercised/PRs/ PSRs Lapsed/ Options Held at PSRs Granted PSRs Vested Forfeited During Held at Not Yet 1 July 2012 During the Year During the Year the Year 30 June 2013 Exercisable Options Key Management Personnel P B Carroll 12,500 – (1,132) – 11,368 – S Corriveau 22,222 – – – 22,222 – T Draskovics – – – – – – S Genzer – – – – – – W J Heintz 22,667 – (22,667) – – – R F Jilla 48,222 – (48,222) – – – A Lopez – – – – – – PRs Director M R Nicolin 129,730 – – – 129,730 PSRs Director M R Nicolin – 259,080 – – 259,080 Key Management Personnel P B Carroll – 19,328 – – 19,328 S Corriveau – 27,359 – – 27,359 T Draskovics – 19,542 – – 19,542 S Genzer – 25,405 – – 25,405 R F Jilla – 39,210 – (39,210) – A Lopez – 25,795 – – 25,795

2012 Options Options/PRs/ Exercised/PRs/ PSRs Lapsed/ Options Held at PSRs Granted PSRs Vested Forfeited During Held at Not Yet 1 July 2011 During the Year During the Year the Year 30 June 2012 Exercisable Options Key Management Personnel P B Carroll 12,500 – – – 12,500 – S Corriveau 22,222 – – – 22,222 – T Draskovics – – – – – – S Genzer – – – – – – W J Heintz 22,667 – – – 22,667 – R F Jilla 102,444 – (54,222) – 48,222 – A Lopez – – – – – – PRs Director M R Nicolin 129,730 – – – 129,730

118 Ansell Limited – Annual Report 2013 Movements in shares The movement in the number of ordinary shares of Ansell Limited held directly, indirectly or beneficially, by each of the Key Management Personnel, including their personally related entities during the 2013 financial year is as follows:

Held at Held at 1 July 2012 Purchases (a) Sales/Other 30 June 2013 Directors P L Barnes 26,773 556 (27,329) – G L L Barnes 16,221 4,957 – 21,178 R J S Bell 6,449 774 – 7,223 J A Bevan – 676 – 676 L D Crandall 15,849 813 – 16,662 W P Day 6,549 4,301 – 10,850 A Lo – – – – M T Peterson 10,459 834 – 11,293 M R Nicolin 10,000 10,042 – 20,042 Other Key Management Personnel P B Carroll 15,607 1,977 – 17,584 S Corriveau 19,421 5,144 – 24,565 T Draskovics – – – – S Genzer – – – – R F Jilla 224,957 5,849 (230,806) – A Lopez – – – –

The movement in the number of ordinary shares of Ansell Limited held directly, indirectly or beneficially, by each of the Key Management Personnel, including their personally related entities during the 2012 financial year is as follows:

Held at Held at 1 July 2011 Purchases (a) Sales/Other 30 June 2012 Directors P L Barnes 24,755 2,018 – 26,773 G L L Barnes 15,260 961 – 16,221 R J S Bell 5,556 893 – 6,449 L D Crandall 14,922 927 – 15,849 W P Day 5,656 893 – 6,549 M T Peterson 9,495 964 – 10,459 M R Nicolin 10,000 – – 10,000 Other Key Management Personnel P B Carroll 28,000 2,607 (15,000) 15,607 S Corriveau 21,489 3,932 (6,000) 19,421 T Draskovics – – – – S Genzer – – – – W J Heintz 40,507 – (22,164) 18,343 R F Jilla 268,249 6,708 (50,000) 224,957 A Lopez – – – –

(a) Includes shares purchased on market pursuant to the Non-executive Directors’ Share Plan.

Service agreements The Company has no service agreements with the Non-executive Directors. Refer to Section 3D of the Remuneration Report for details of service agreements with the Managing Director and other Key Management Personnel.

Other transactions with specified Directors and specified executives From time to time, Key Management Personnel of the Company or its subsidiaries, or their personally related entities, may purchase goods from the Group. These purchases are on terms and conditions no more favorable than those entered into by unrelated customers and are trivial or domestic in nature.

Ansell Limited – Annual Report 2013 119 Notes to the Financial Statements continued

26. Notes to the Statement of Cash Flows (a) Reconciliation of net cash provided by operating activities to profit for the period 2013 2012 A$m A$m Profit for the period 140.8 133.0 Add/(less) non-cash items: Depreciation 20.5 17.3 Amortization 7.4 4.6 Impairment – trade debtors (0.9) (0.7) Share-based payments expense 1.3 0.2

Add/(less) items classified as investing/financing activities: Interest received (7.5) (6.8) Interest and financing costs paid 16.3 12.1 Gain on sale of investments, property, plant and equipment (3.8) (8.1) Net cash provided by operating activities before change in assets and liabilities 174.1 151.6

Change in assets and liabilities net of effect from acquisitions and disposals of subsidiaries and businesses: Increase in trade and other receivables (31.0) (5.0) Increase in inventories (32.6) (19.5) Increase in other assets (14.5) (5.1) Increase/(decrease) in trade and other payables 41.7 (2.6) Decrease in provisions/other liabilities (13.1) (7.9) Decrease in retirement benefit obligations (1.2) (2.9) Increase in provision for deferred income tax 4.4 3.9 Increase in future income tax benefit (9.5) (15.8) Increase in provision for income tax 1.5 2.5

Other non-cash items (including foreign currency impact) 7.3 (4.0) Net cash provided by operating activities 127.1 95.2

(b) Components of cash and cash equivalents For the purposes of the Statement of Cash Flows, cash and cash equivalents includes cash on hand and at banks and investments in money market instruments, net of outstanding bank overdrafts. Refer to Note 9 for Cash and Cash Equivalents, at the end of the financial year, as shown in the Statement of Cash Flows.

27. Acquisition of Businesses and Subsidiaries The individually material acquisitions made during the year are as follows:

Comasec Effective 1 October 2012 Ansell acquired 100 per cent of the issued capital of Comasec SAS and its 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 specializes in gloves for chemical protection, food handling, cut protection, mechanical protection, dry box and thermal protection. The acquisition of Comasec will strengthen Ansell’s existing Industrial and Specialty Markets businesses. Related acquisition costs of $0.4 million have been expensed during the year and included in selling, general and administration expenses in the Income Statement.

In the nine months to 30 June 2013 Comasec contributed revenue of $88.4 million and profit of $3.7 million to the Group’s results. If the acquisition had occurred on 1 July 2012, estimated consolidated revenue would have been $1,375.7 million and estimated consolidated profit for the year would have been $139.0 million.

120 Ansell Limited – Annual Report 2013 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 24.6 Intangibles 9.8 Inventories 27.8 Trade and other receivables 30.4 Trade and other payables (10.2) Provisions and other liabilities (15.2) Net identifiable assets acquired 67.2 Goodwill on acquisition 62.1 Consideration paid 129.3

Hércules Equipamentos de Proteção Ltda Effective 1 January 2013 Ansell acquired 100 per cent of the issued capital of Hércules Equipamentos de Proteção Ltda (‘Hércules’), a privately held Brazilian company, located in São Paulo. Hércules is a leading manufacturer of Personal Protective Equipment in Brazil with a plant located outside São Paulo and wide distribution across Brazil. Its product lines include turn-out gear for Military and First Responders, molten metal protection garments, fall protection equipment and gloves. The acquisition will enable Ansell to better serve several strategic verticals (Construction, Military and First Responders, Mining and Oil and Gas) and at the same time strengthens Ansell’s presence in one of the world’s major emerging markets. In addition to the initial consideration paid a potential earn-out payment exists, which is tied to profit growth in the first year of ownership. Related acquisition costs of $0.6 million have been expensed during the year and included in selling, general and administration expenses in the Income Statement.

In the six months to 30 June 2013 Hércules contributed revenue of $15.2 million and profit of $1.1 million to the Group’s results. If the acquisition had occurred on 1 July 2012, estimated consolidated revenue would have been $1,363.1 million and consolidated profit for the year would have been $140.9 million.

The following fair values of the identifiable assets and liabilities of Hércules as at acquisition have been determined on a provisional basis:

A$m Property, plant and equipment 2.3 Cash and cash equivalents 0.5 Inventories 6.5 Trade and other receivables 6.3 Trade and other payables (2.8) Bank and other loans (0.9) Provisions and other liabilities (10.3) Net identifiable assets acquired 1.6 Goodwill on acquisition 76.9 Consideration paid/payable 78.5 Consideration paid in cash 68.6 Contingent consideration payable 9.9

Ansell also made a number of minor acquisitions during the year being the purchase of the outstanding 80 per cent of the issued capital of 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 LLC. (a US product and technology company with innovative solutions in infection prevention) effective 31 December 2012.

The total cost of these acquisition was $3.8 million resulting in goodwill on acquisition of $10.0 million. In addition to the original consideration paid for the Preferred Surgical Products business a potential earnout exists, which is tied to revenue and earnings growth over a three-year period. The combined contribution of the two acquisitions to consolidated revenue and profit for the period were $4.2 million and ($0.5) million respectively.

If both acquisitions had occurred at 1 July 2012, estimated consolidated revenue for the year would have been $1,349.1 million and estimated consolidated profit for the period would have been $140.6 million.

Ansell Limited – Annual Report 2013 121 Notes to the Financial Statements continued

27. Acquisition of Businesses and Subsidiaries continued

Trelleborg Protective Products The acquisition of the Trelleborg Protective Products business (TPP) was completed on 2 May 2012. As at 30 June 2012 the fair value of the identifiable assets and liabilities acquired was determined on a provisional basis. The acquisition accounting for TPP was completed during the current year resulting in a reduction in goodwill on acquisition of $3.1 million and an increase in brand names of $3.1 million. Comparative values have been adjusted for the recognition of the brand names.

Sandel Medical Solutions The acquisition of Sandel Medical Solutions was completed in July 2011. The purchase agreement included a contingent consideration payable quarterly based on the maintenance and growth in sales of specified products for a five-year period. An amount representing the fair value of this contingent consideration was recorded as a liability at 30 June 2012. A review of the performance of the business since acquisition and current projections indicate that it is unlikely that the full value of the existing liability will be required. As a result an amount of $1.9 million has been reversed to the Income Statement during the current year and included as a reduction to selling, general and administration expenses.

28. Related Party Disclosures (a) Subsidiaries Ansell Limited is the parent entity of all entities detailed in Note 29 Particulars Relating to Subsidiaries and from time to time has dealings on normal commercial terms and conditions with those entities, the effects of which are eliminated in these consolidated financial statements.

(b) Key Management Personnel Disclosures relating to Key Management Personnel are set out in Note 25 Key Management Personnel Disclosures.

29. Particulars Relating to Subsidiaries Beneficial Interest Country of 2013 2012 Incorporation % % Ansell Limited Australia Ansell Healthcare Japan Co. Ltd. Japan * 100 100 Ativ Pac Pty. Ltd. Australia 100 100 BNG Battery Technologies Pty. Ltd. Australia 100 100 Cliburn Investments Pty. Ltd. Australia 100 100 Corrvas Insurance Pty. Ltd. Australia 100 100 Dexboy International Pty. Ltd. Australia 100 100 Dunlop Olympic Manufacturing Pty. Ltd. Australia 100 100 FGDP Pty. Ltd. Australia 100 100 PSL Industries Pty. Ltd. Australia 100 100 Nucleus Ltd. Australia 100 100 Lifetec Project Pty. Ltd. Australia 100 100 Medical TPLC Pty. Ltd. Australia 100 100 N&T Pty. Ltd. Australia 100 100 Nucleus Trading Pte. Ltd. Singapore * 100 100 THLD Ltd. Australia 100 100 TNC Holdings Pte. Ltd. Singapore * 100 100 TPLC Pty. Ltd. Australia 100 100 Societe de Management Financier S.A. France * 100 100 Olympic General Products Pty. Ltd. Australia 100 100 Pacific Dunlop Finance Pty. Ltd. Australia 100 100 Pacific Dunlop Holdings (China) Co. Ltd. China * 100 100 Ansell (Shanghai) Commercial and Trading Co., Ltd. China * 100 100 Pacific Dunlop Linings Pty. Ltd. Australia 100 100 P.D. Holdings Pty. Ltd. Australia 100 100 P.D. International Pty. Ltd. Australia 100 100

122 Ansell Limited – Annual Report 2013 Beneficial Interest Country of 2013 2012 Incorporation % % Ansell Canada Inc. Canada * 100 100 Ansell Commercial Mexico S.A. de C.V. Mexico * 100 100 Ansell Korea Co., Ltd. Korea * 100 100 Ansell Lanka (Pvt.) Ltd. Sri Lanka * 100 100 Ansell (Middle East) JLT UAE * 100 100 Ansell Perry de Mexico S.A. de C.V. Mexico * 100 100 Ansell Protective Solutions Singapore Pte. Ltd. Singapore* 100 100 Ansell Services (Asia) Sdn. Bhd. Malaysia * 100 100 Ansell Ambi Sdn. Bhd. Malaysia * 100 100 Ansell (Kedah) Sdn. Bhd. Malaysia * 100 100 Ansell (Kulim) Sdn. Bhd. Malaysia * 100 100 Ansell Medical Sdn. Bhd. Malaysia * 75 75 Ansell N.P. Sdn. Bhd. Malaysia * 75 75 Ansell Malaysia Sdn. Bhd. Malaysia * 75 75 Ansell Shah Alam Sdn. Bhd. Malaysia * 100 100 Ansell Specialty Markets Participacoes Ltda Brazil* 100 – Hércules Equipamentos de Proteção Ltda Brazil* 100 – Ansell (Thailand) Ltd. Thailand * 100 100 CE Gloves (India) Limited India * 100 (a) 100 (a) Corrvas Insurance (Singapore) Pte. Ltd. Singapore * 100 100 Fabrica de Artefatos de Latex Blowtex Ltda. Brazil * 100 100 Medical Telectronics N.V. Netherlands Ant. * 100 100 Pacific Dunlop Holdings (Europe) Ltd. UK * 100 100 Ansell GBU Services (Europe) N.V. Belgium * 100 100 Ansell Healthcare Europe N.V. Belgium * 100 100 Ansell GmbH Germany * 100 100 Condomi Erfurt Produktions GmbH Germany * 100 100 Ansell Italy Srl Italy * 100 100 Ansell Medikal Urunler Ithalat Ihracat Uretim ve Ticaret A.S. Turkey * 100 100 Ansell Norway AS Norway * 100 100 Ansell Protective Solutions AB Sweden * 100 100 Ansell Protective Solutions Lithuania UAB Lithuania * 100 100 Ansell Rus LLC Russia * 100 100 Ansell S.A. France * 100 100 Ansell Spain SL (Sociedad de Responsabilidad Limitada) Spain * 100 100 Comasec SAS France * 100 – Ampelos International Malaysia Malaysia * 100 – Ansell Industrial & Specialty Gloves Malaysia Sdn. Bhd. Malaysia * 100 – Comasec GmbH Germany * 100 – Comasec Holdings Ltd. UK * 100 – Marigold Industrial Ltd. UK * 100 – Comasec Italia Srl Italy * 100 – Marigold Industrial Inc. Canada * 100 – Marigold Industrial Gloves Iberia SL Spain * 100 – Marigold Industrial Portugal Portugal * 100 – Marigold Industrial USA Inc. US * 100 – N.V. Comasec Benelux s.a. Belgium 100 – Medical Telectronics Holding & Finance (Holland) B.V. Netherlands * 100 100 Unimil Sp. z o.o. Poland * 100 100 Ansell UK Limited UK * 100 100 Pacific Dunlop Holdings (Singapore) Pte. Ltd. Singapore * 100 100

Ansell Limited – Annual Report 2013 123 Notes to the Financial Statements continued

29. Particulars Relating to Subsidiaries continued

Beneficial Interest Country of 2013 2012 Incorporation % % JK Ansell Ltd. India * 50 50 Ansell (Hong Kong) Limted. Hong Kong * 100 100 Pacific Dunlop Investments (USA) Inc. US * 100 100 Ansell Brazil LTDA Brazil * 100 100 Ansell Edmont Industrial de Mexico S.A. de C.V. Mexico * 100 100 Pacific Dunlop Holdings (USA) LLC. US * 100 100 Ansell Healthcare Products LLC. US * 100 100 Ansell Sandel Medical Solutions LLC. US * 100 100 Ansell Protective Products Inc. US * 100 100 Ansell Hawkeye Inc. US * 100 100 Pacific Chloride Inc. US * 100 100 Pacific Dunlop Holdings Inc. US * 100 100 Pacific Dunlop USA Inc. US * 100 100 TPLC Holdings Inc. US * 100 100 Accufix Research Institute Inc. US * 100 100 Cotac Corporation US * 100 100 Pacific Dunlop Finance Company Inc. US * 100 100 PDOCB Pty. Ltd. Australia 100 100 Ansell Medical Products Pvt. Ltd. India * 100 100 Suretex Ltd. Thailand * 100 100 Latex Investments Ltd. Mauritius * 100 100 Suretex Prophylactics (India) Ltd. India * 100 100 STX Prophylactics S.A. (Pty.) Ltd. South Africa * 100 100 Wuhan Jissbon Sanitary Products Company Ltd. China * 90 (b) 90 (b) Guangzhou Kangwei Trading Co Ltd. China * 100 – Shanghai Feidun Trading Company Ltd. China * 100 100 Shenyang Yipeng Trading Company Ltd. China * 100 100 Wuhan AnJie LuPu Trading Company Ltd. China * 100 100 PD Licensing Pty. Ltd. Australia 100 100 PD Shared Services Pty. Ltd. Australia 100 100 PD Shared Services Holdings Pty. Ltd. Australia 100 100 Siteprints Pty. Ltd. Australia 100 100 S.T.P. (Hong Kong) Ltd. Hong Kong * 100 100 Pacific Dunlop Holdings N.V. Netherlands Ant. * 100 100 Pacific Dunlop (Netherlands) B.V. Netherlands * 100 100 The Distribution Group Holdings Pty. Ltd. Australia 100 100 The Distribution Group Pty. Ltd. Australia 100 (c) 100 (c) The Distribution Trust Australia 100 100 Union Knitting Mills Pty. Ltd. Australia 100 100 Xelo Pty. Ltd. Australia 100 100 Xelo Sacof Pty. Ltd. Australia 100 100

* Subsidiaries incorporated outside Australia carry on business in those countries. (a) Owned 74.9 per cent by P.D. International Pty. Ltd. and 25.1 per cent by Suretex Prophylactics (India) Ltd. (b) Owned 49.2 per cent by P.D. International Pty. Ltd. and 40.8 per cent by Pacific Dunlop Holdings (China) Co. Ltd. (c) The trustee of The Distribution Trust is The Distribution Group Pty. Ltd. The beneficiary of the Trust is Ansell Limited.

124 Ansell Limited – Annual Report 2013 30. Parent Entity Disclosures As at the end of and throughout the financial year ending 30 June 2013, the parent company of the Group was Ansell Limited. 2013 2012 A$m A$m Result of the parent entity Profit for the period 85.1 103.0 Other comprehensive income (2.2) 0.8 Total comprehensive income for the period 82.9 103.8

Financial position of the parent entity at year end Current assets 593.1 503.7 Total assets 2,348.4 2,246.0 Current liabilities 1,240.4 1,171.8 Total liabilities 1,240.7 1,173.6 Total equity of the parent entity comprising: Issued capital 861.0 862.2 Reserves 34.6 37.5 Retained profits 212.1 172.7 Total Equity 1,107.7 1,072.4

The consolidated Group has a net current asset position of $482.3 million (2012 – $409.9 million) which the parent company controls. As at 30 June 2013, the parent company has a net current liability position of $647.3 million (2012 – $668.1 million). The Directors will ensure that the parent company has, at all times, sufficient funds available from the Group to meet its commitments.

Parent entity guarantee The parent entity guarantees the debts of certain subsidiaries that are guarantors under the Group’s revolving credit bank facility.

31. Earnings per Share 2013 2012 A$m A$m Earnings reconciliation Net profit 140.8 133.0 Net profit attributable to non-controlling interests 4.0 3.0 Basic earnings 136.8 130.0 Diluted earnings 136.8 130.0

Number of Shares (Millions) Weighted average number of ordinary shares used as the denominator Number of ordinary shares for basic earnings per share 130.7 131.2 Effect of partly paid Executive Plan shares, options and PRs 0.6 0.2 Number of ordinary shares for diluted earnings per share 131.3 131.4

Partly paid Executive Plan shares, options and PRs have been included in diluted earnings per share in accordance with Accounting Standards.

Earnings per share cents cents Basic earnings per share 104.6 99.1 Diluted earnings per share 104.2 98.9

Ansell Limited – Annual Report 2013 125 Notes to the Financial Statements continued

32. 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 Accounting Policies described in Note 1.

Translation of amounts from Australian dollars to US dollars in the Income Statement, Statement of Cash Flows and Operating Revenue and Operating Result within the Operating Segments have been made at the average of the 8.00 am mid buy/sell rate for Australian dollars as quoted by Reuters on the last working day of each month for the 13-month period June 2012 to June 2013.

Translation of amounts from Australian dollars to US dollars in the Balance Sheet and Assets Employed and Liabilities within the Operating Segments have been made at the 8.00 am mid buy/sell rate for Australian dollars as quoted by Reuters, on Friday 28 June 2013, at US$0.92845 = A$1 (30 June 2012: US$1.00415 = A$1).

Consolidated Income Statement of Ansell Limited and subsidiaries for the year ended 30 June 2013 2013 2012 US$m US$m Revenue Sales 1,372.8 1,255.3 Expenses Cost of goods sold (793.5) (735.9) Distribution (61.9) (61.5) Selling, general and administration (346.9) (304.7) Total expenses, excluding financing costs (1,202.3) (1,102.1) Net financing costs (10.7) (5.0) Profit before income tax 159.8 148.2 Income tax (16.5) (12.1) Profit for the period 143.3 136.1 Non-controlling interests (4.1) (3.1) Profit attributable to Ansell Limited shareholders 139.2 133.0

2013 2012 US cents US cents Earnings per share is based on profit attributable to Ansell Limited shareholders Basic earnings per share 106.5 101.4 Diluted earnings per share 106.1 101.2

126 Ansell Limited – Annual Report 2013 Consolidated Balance Sheet of Ansell Limited and subsidiaries for the year ended 30 June 2013 2013 2012 US$m US$m Current assets Cash on hand 0.5 0.7 Cash at bank and on deposit 305.3 246.1 Cash assets – restricted deposits 3.4 3.5 Trade and other receivables 235.1 185.6 Derivative financial instruments 9.9 6.8 Inventories 260.0 213.4 Other 14.4 10.0 Total current assets 828.6 666.1 Non-current assets Trade and other receivables 3.1 2.1 Investments 2.8 4.0 Property, plant and equipment 186.7 151.2 Intangible assets 541.4 391.2 Deferred tax assets 121.2 120.0 Other 20.1 19.3 Total non-current assets 875.3 687.8 Total assets 1,703.9 1,353.9 Current liabilities Trade and other payables 201.8 155.5 Derivative financial instruments 16.9 18.2 Interest bearing liabilities 90.1 16.8 Provisions 50.6 49.7 Current tax liabilities 21.5 14.4 Total current liabilities 380.9 254.6 Non-current liabilities Trade and other payables 10.0 5.0 Interest bearing liabilities 450.7 285.4 Provisions 18.1 20.1 Retirement benefit obligations 19.5 17.8 Deferred tax liabilities 32.4 29.7 Other 18.8 17.7 Total non-current liabilities 549.5 375.7 Total liabilities 930.4 630.3 Net assets 773.5 723.6 Equity Issued capital 799.4 865.8 Reserves (78.9) (109.6) Retained profits/(accumulated losses) 37.5 (46.7) Total equity attributable to Ansell Limited Shareholders 758.0 709.5 Non-controlling interests 15.5 14.1 Total equity 773.5 723.6

Ansell Limited – Annual Report 2013 127 Notes to the Financial Statements continued

32. US Dollar Financial Information continued

Consolidated Statement of Cash Flows of Ansell Limited and subsidiaries for the year ended 30 June 2013 2013 2012 US$m US$m Cash flows related to operating activities Receipts from customers 1,344.2 1,249.6 Payments to suppliers and employees (1,198.0) (1,133.4) Net receipts from operations 146.1 116.2 Income taxes paid (15.7) (17.8) Net cash provided by operating activities 130.4 98.4 Cash flows related to investing activities Payments for businesses, net of cash acquired (208.6) (44.8) Payments for property, plant, equipment and intangible assets (39.8) (37.6) Payments for investments (1.8) (5.1) Proceeds from sale of property, plant and equipment 7.9 9.6 Net cash used in investing activities (242.3) (77.9) Cash flows related to financing activities Proceeds from borrowings 439.5 296.9 Repayments of borrowings (193.8) (224.5) Net proceeds from borrowings 245.7 72.4 Proceeds from issues of shares 2.4 0.9 Payments for share buy-back (3.6) (33.4) Dividends paid – Ansell Limited shareholders (49.5) (46.6) Dividends paid – non-controlling interests (2.7) (2.2) Interest received 7.7 7.0 Interest and borrowing costs paid (16.9) (12.4) Net cash provided by/(used in) financing activities 183.1 (14.3) Net increase in cash and cash equivalents 71.2 6.2 Cash and cash equivalents at the beginning of the financial year 250.3 258.7 Effects of exchange rate changes on the balances of cash and cash equivalents held in foreign currencies at the beginning of the financial year (12.3) (14.6) Cash and cash equivalents at the end of the financial year 309.2 250.3

128 Ansell Limited – Annual Report 2013 Operating segments of Ansell Limited and subsidiaries for the year ended 30 June 2013 Operating Revenue Operating Result 2013 2012 2013 2012 US$m US$m US$m US$m Business segments Industrial 563.6 504.1 92.0 83.7 Medical 349.5 356.4 41.1 39.5 Sexual Wellness 229.7 217.3 34.2 33.2 Specialty Markets 230.0 177.5 11.7 7.2 Total business segments 1,372.8 1,255.3 179.0 163.6 Corporate costs (8.5) (10.4) Earnings before interest and tax (EBIT) 170.5 153.2 Net interest expense and other financing costs (10.7) (5.0) Profit before income tax 159.8 148.2 Income tax (16.5) (12.1) Profit for the period 143.3 136.1 Non-controlling interests (4.1) (3.1) Total consolidated 1,372.8 1,255.3 139.2 133.0

Regional segments Asia Pacific 280.4 267.9 65.0 64.0 Europe, Middle East and Africa 572.3 478.4 70.7 62.6 Latin America and Caribbean 101.3 82.8 14.0 10.4 North America 418.8 426.2 29.3 26.6 Total regional segments 1,372.8 1,255.3 179.0 163.6

Assets Employed Liabilities 2013 2012 2013 2012 US$m US$m US$m US$m Business segments Industrial 440.6 336.7 95.8 101.2 Medical 280.5 285.4 70.5 81.8 Sexual Wellness 208.7 200.8 38.6 33.7 Specialty Markets 270.0 123.7 56.1 23.0 Total business segments 1,199.8 946.6 261.0 239.7 Corporate assets/liabilities 194.9 157.0 669.4 390.6 Cash 309.2 250.3 – Total consolidated 1,703.9 1,353.9 930.4 630.3

Regional segments Asia Pacific 284.3 243.3 94.5 95.4 Europe, Middle East and Africa 209.6 143.7 83.9 52.8 Latin America and Caribbean 59.2 33.2 22.7 5.6 North America 165.0 192.7 59.9 85.9 Goodwill and brand names 481.7 333.7 – – Total regional segments 1,199.8 946.6 261.0 239.7

Ansell Limited – Annual Report 2013 129 Directors’ Declaration

1. In the opinion of the Directors of Ansell Limited (the Company):

(a) the consolidated financial statements and notes, set out on pages 80 to 129, and the Remuneration Report contained in the Directors’ Report, set out on pages 64 to 79, are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group’s financial position as at 30 June 2013 and of its performance, for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001;

(b) the consolidated financial statements and notes also comply with International Financial Reporting Standards as disclosed in Note 1;

(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

2. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Chief Executive Officer and the Chief Financial Officer for the financial year ended 30 June 2013.

Signed in accordance with a resolution of the Directors:

G L L Barnes M R Nicolin Chairman Director

Dated in Melbourne this 20th day of August 2013.

130 Ansell Limited – Annual Report 2013 Independent Audit Report to the members of Ansell Limited

ABCD

Independent auditor’s report to the members of Ansell Limited Report on the financial report We have audited the accompanying financial report of Ansell Limited (the Company), which comprises the consolidated balance sheet as at 30 June 2013, consolidated income statement and consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year ended on that date, notes 1 to 32 comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the Group comprising the Company and the entities it controlled at the year’s end or from time to time during the financial year. Directors’ responsibility for the financial report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement whether due to fraud or error. In note 1, the directors also state, in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements of the Group comply with International Financial Reporting Standards.

Auditor’s responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We performed the procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001 and Australian Accounting Standards, a true and fair view which is consistent with our understanding of the Group’s financial position and of its performance. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG Liability limited by a scheme approved under International Cooperative (“KPMG International”), a Swiss entity. Professional Standards Legislation.

Ansell Limited – Annual Report 2013 131 Independent Audit Report continued to the members of Ansell Limited

ABCD

Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Auditor’s opinion In our opinion: (a) the financial report of the Group is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group’s financial position as at 30 June 2013 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. (b) the financial report also complies with International Financial Reporting Standards as disclosed in note 1.

Report on the remuneration report We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2013. The directors of the company are responsible for the preparation and presentation of the remuneration report in accordance with Section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with auditing standards.

Auditor’s opinion In our opinion, the remuneration report of Ansell Limited for the year ended 30 June 2013, complies with Section 300A of the Corporations Act 2001.

KPMG

Gordon Sangster Partner Melbourne 20 August 2013

132 Ansell Limited – Annual Report 2013 Shareholders

Details of quoted shares held in Ansell Limited as at 16 August 2013

Distribution of Ordinary Shareholders and Shareholdings Number of Number of Size of Holding Shareholders % of Total Shares % of Total 1 – 1,000 27,081* 81.84 9,379,306 7.18 1,001 – 5,000 5,362 16.20 10,684,553 8.18 5,001 – 10,000 433 1.31 3,036,996 2.33 10,001 – 100,000 190 0.57 4,763,783 3.65 100,001 and over 26 0.08 102,753,325 78.66 TOTAL 33,092 100.00 130,617,963 100.00

* Including 494 shareholders holding a parcel of shares of less than $500 in value (28 shares), based on market price of $18.30 per unit.

Percentage of the total holdings of the 20 largest shareholders = 78.05 per cent.

In addition to the foregoing, there were 45 members of the Executive Share Plan, whose shares are paid to 5 cents each, holding 67,900 Plan shares.

Voting rights as governed by the Constitution of the Company provide that each ordinary share holder present in person or by proxy at a meeting shall have: (a) on a show of hands, one vote only; and (b) on a poll, one vote for every fully paid ordinary share held.

Twenty Largest Shareholders Number of Fully % of Issued Registered Holder Paid Shares Capital HSBC Custody Nominees (Australia) Limited 63,252,420 48.43 J P Morgan Nominees Australia Limited 16,506,143 12.64 National Nominees Limited 9,075,373 6.95 BNP Paribas Noms Pty Ltd 3,052,745 2.34 Citicorp Nominees Pty Limited 1,810,384 1.39 RBC Investor Services Australia Nominees Pty Limited 1,485,864 1.14 Australian Foundation Investment Company Limited 1,108,500 0.85 JP Morgan Nominees Australia Limited 850,065 0.65 HSBC Custody Nominees (Australia) Limited 724,429 0.55 Citicorp Nominees Pty Limited 669,957 0.51 Argo Investments Limited 665,685 0.51 AMP Life Limited 529,054 0.41 Mirrabooka Investments Limited 485,000 0.37 CS Fourth Nominees Pty Ltd C/- Credit Suisse Eqts Aust Ltd 351,575 0.27 SBN Nominees Pty Limited <10004 Account> 310,000 0.24 Aventeos Investments Limited <2477966 DNR A/C> 278,363 0.21 The Manly Hotels Pty Limited 222,044 0.17 Sandhurst Trustees Ltd 218,750 0.17 QIC Limited C/– National Nominees Limited 185,307 0.14 Superlife Trustee Nominees Ltd 170,395 0.13 Top 20 holders of Issued Capital Classes 101,952,053 78.05 Total Remaining Holder Balance 28,665,910 21.95

Register of Substantial Shareholders The names of substantial shareholders in the Company and the number of fully paid ordinary shares in which each has an interest, as disclosed in substantial shareholder notices to the Company on the respective dates shown, are as follows:

9 March 2011 M & G Investment Funds 23,973,737 18.01% 22 April 2013 FMR LLC 9,340,208 7.15% 3 May 2013 Lazard LLC 12,929,626 9.89% Matthews International 22 May 2013 Capital Management LLC 9,450,104 7.23%

Ansell Limited – Annual Report 2013 133 Shareholder Information

Annual Report Company Directory Or visit Computershare’s Investor Centre online at www.investorcentre.com Ansell’s Annual Report 2013 provides The Annual Report and the where shareholder information can be shareholders with a summary of the Company’s internet site are the main accessed. You will need to have your Group’s operations and contains the sources of information for investors. SRN or HIN along with your postcode. full financial statements for the 2013 Shareholders who wish to contact the financial year. The Annual Report 2013 Company on any matter relating to its provides a summary of the Group’s activities are invited to contract the Listings financial performance, financial most convenient office listed below, Ansell Limited shares (Ticker Symbol position, and financing and investing or contact the Company via its ANN) are listed on the Australian activities. website at www.ansell.com Securities Exchange.

Ansell Limited has opted to deliver its Annual Reports by making them Investor Relations Contact: Financial Calendar – 2014 available on our Company website Australia www.ansell.com 17 February 2014 Mr David Graham Announcement of result for half-year Ansell Limited Shareholders are entitled to receive ending 31 December 2013 Level 3 a printed copy of the Annual Report, 678 Victoria Street, but the Company will only send a Richmond VIC 3121 18 August 2014 printed copy to shareholders who Telephone: (+613) 9270 7270 Announcement of result for year elect to receive one. Facsimile: (+613) 9270 7300 ending 30 June 2014 Email: shareholderenquiries@ Shareholders can also access other ap.ansell.com information pertaining to the Company 16 October 2014 and its activities from its website at Annual General Meeting www.ansell.com United States Mr Neil Salmon Refer to Ansell’s website for Change of Address Ansell Limited Shareholder Calendar dates. Suite 210 Shareholders should notify the 111 Wood Avenue, South Company in writing immediately there Iselin NJ 08830 is a change to their registered address. Telephone: (+1732) 345 5359 For added protection, shareholders Facsimile: (+1732) 219 5114 should quote their Securityholder Email: [email protected] Reference Number (SRN) or Holder Identification Number (HIN). Enquiries Dividend Shareholders requiring information about their shareholdings should A final dividend of 22.0 cents per contact the Company’s registry at: share will be a paid on 26 September 2013 to shareholders registered on Computershare Investor Services Pty Ltd 5 September 2013. The dividend Yarra Falls will be unfranked. 452 Johnston Street Abbotsford VIC 3067 Australian shareholders may elect to have cash dividends paid directly or into any bank, building society or GPO Box 2975 credit union account in Australia. Melbourne VIC 3001 Shareholders with registered addresses Australia in New Zealand, the United Kingdom Telephone: (+613) 9415 4000 or the United States who receive cash Facsimile: (+613) 9473 2500 dividends may elect to be paid by Shareholder Enquiries: 1300 850 505 cheque in their respective currencies. (Australian residents only) Shareholders with a registered address Email: web.queries@computershare. in Canada can receive their dividends com.au in US dollars.

134 Ansell Limited – Annual Report 2013 Ansell Offices

Registered Office Principal Offices France – Cergy Ansell S.A. Ansell Limited Brazil – São Paulo 21 Rue du Petit Albi ABN 89 004 085 330 Fabrica de Artefatos de Blowtex Ltda. 95805 Cergy-Pontoise Cedex Level 3, 678 Victoria Street Rua Dr Jesuino Maciel, 125 France Richmond VIC 3121 Campo Belo Telephone: (+331) 3424 52 52 Australia São Paulo SP – 04615-000 Facsimile: (+331) 3073 93 46 Telephone: (+613) 9270 7270 Brazil Facsimile: (+613) 9270 7300 Telephone: (+5511) 5536 4669 France – Gennevilliers Email: shareholderenquiries@ Facsimile: (+5511) 5093 7470 ap.ansell.com Comasec SAS 5 Allee des Bas Tilliers Brazil – São Paulo 92238 Gennevilliers Cedex Corporate Offices Ansell Brazil Ltda. France Rua das Figueroas, 474 Telephone: (+331) 4792 92 92 Americas Region Santo André Facsimile: (+331) 4792 92 19 Ansell Healthcare São Paulo 09080-300 111 Wood Avenue South Brazil Germany – Munich Iselin NJ 08830 Telephone: (+5511) 3356 3100 United States Ansell GmbH Stadtquartier Reim Arcaden Telephone: (+1732) 345 5400 Brazil – São Paulo Facsimile: (+1732) 219 5114 Lehrer-Wirth-Str. 4 Hércules Equipamentos D-81829 Munich de Proteção Ltda Germany Asia Pacific Region Avenida Robert Kennedy, 675 Telephone: (+49) 0 89 451180 Ansell (Hong Kong) Limited Sao Bernardo do Campo Facsimile: (+49) 0 89 45118 140 2610B-12A, 26/F, Exchange Tower São Paulo 09895-003 33 Wang Chiu Road Brazil Japan – Tokyo Kowloon Bay Telephone: (+5511) 4391 6640 Hong Kong Ansell Healthcare Japan Co. Ltd. Ochanomizu Wing building, Telephone: (+852) 2185 0600 Canada – Cowansville Facsimile: (+852) 2956 2155 2nd Floor, Ansell Canada Inc. 15-13 Hongo 2-chome 105 Lauder Street Bunkyo-ku, Tokyo Europe, Middle East and Africa Cowansville Quebec J2K 2K8 Japan (EMEA) Region Canada Telephone: (+813) 5805 3741 Ansell Healthcare Telephone: (+1450) 266 1850 Facsimile: (+813) 5800 6171 Riverside Business Park Facsimile: (+1450) 266 6150 Boulevard International 55 Malaysia – Shah Alam B-1070 Brussels China – Shanghai Belgium Ansell Shah Alam Sdn Bhd Ansell (Shanghai) Commercial Telephone: (+322) 528 7400 Lot 16 Persiaran Perusahaan, & Trading Co. Ltd. Facsimile: (+322) 528 7401 Section 23 Room# 903–905, Selangor Darul Ehsan No. 1600, Zhongshan West Road Shah Alam 4000 Latin America and Caribbean Shanghai 200235 Malaysia Region China Telephone: (+603) 5541 9797 Ansell Healthcare Telephone: (+8621) 5103 6377 Facsimile: (+603) 5541 7955 111 Wood Avenue South Facsimile: (+8621) 5407 1107 Iselin NJ 08830 Mexico – Querétaro USA China – Wuhan Telephone: (+1732) 345 5400 Ansell Mexico Wuhan Jissbon Sanitary Facsimile: (+1732) 219 5114 Sierra de Zimapán No.4 Int.70 Products Co. Ltd. Edificio Fontana 16th Floor, West Block Col. Villas del Sol East Lake Hi-Tech Development Zone CP. 76047 Santiago de Querétaro, No. 546 Luoyu Road Querétaro Wuhan, Hubei Province 430074 México China Telephone: (+52) 442 248 1544 Telephone: (+8627) 8759 7916 Facsimile: (+52) 442 213 0049 Facsimile: (+ 8627) 8759 6260

Ansell Limited – Annual Report 2013 135 Ansell Offices continued

Poland – Krakow Unimil Sp. zo.o. Ansell Kamienskiego 47 30-644 Krakow Poland Telephone: (+48) 1242 41600 Facsimile: (+48) 1242 14930

Russia – Moscow Ansell Russia World Trade Centre Krasnopresnenskaya Emb. 12 Entrance 3 Office 1304-A Moscow 123610 Russia Telephone: (+749) 5528 1316

Sweden – Trelleborg Ansell Protective Solutions AB Johan Kocksgatan 10 SE-231 81 Trelleborg Sweden Telephone: (+46) 0 410 51000 Facsimile: (+46) 0 410 51840

United Arab Emirates (UAE) – Dubai Ansell Healthcare Middle East Reef Tower, Level 30-09 Jumeirah Lake Towers PO Box 115738 Dubai Telephone: (+971) 04 448 7111 Facsimile: (+971) 04 448 7108

USA – Chatsworth Ansell Sandel Medical Solutions LLC 19736 Dearborn Street Chatsworth, CA 91311 United States Telephone: (+1818) 534 2500 Facsimile: (+1818) 534 2510

136 Ansell Limited – Annual Report 2013