Ansell Annual Report 2017

← All annual reports

FY2017 Annual Report · Ansell

Loading PDF…

PROTEC TI O N RE I MAGIN ED

2017
Annual Report

Contents

About Ansell

Our Purpose and Vision

Our Values

Financial Summary

Chairman’s Review

Chief Executive Officer’s Review

Five-Year Summary

Operating and Financial Review

Corporate Social Responsibility
& Sustainability Report

Board of Directors

Executive Leadership Team

Report by the Directors

Remuneration Report

Consolidated Income Statement

Consolidated Statement of
Comprehensive Income

Consolidated Balance Sheet

Consolidated Statement of
Changes in Equity

Consolidated Statement of Cash Flows 94

Notes to the Financial Statements

Directors’ Declaration

Independent Audit Report

Shareholders

Shareholder Information

133

134

139

141

ANSELL LIMITED ANNUAL REPORT 2017

ANSELL LIMITED ANNUAL REPORT 2017About Ansell

Our Purpose and Vision

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 a
peace of mind and confidence that no
other brand can deliver.

Ansell Protects.

We enable others to perform better and be
more productive; this has earned us a leadership
position as well as a track record of impressive
growth. By expanding the Company’s global
reach, category depth and robust innovation
pipeline, we support our customers’ expansion
and provide solutions for emerging needs. This
approach allows us to continue to deliver for our
customers, employees and shareholders.

ANSELL LIMITED ANNUAL REPORT 2017

ANSELL LIMITED ANNUAL REPORT 2017Protection Reimagined

At Ansell, we continue to challenge ourselves
on how best to serve our customers. During the
next year, Ansell will be simplifying its business
structure. Following the sale of the Sexual
Wellness business, Ansell will merge its Single Use
and Medical GBUs into a single Healthcare GBU.
The Industrial GBU will remain largely unchanged.
The goal is to deliver a more streamlined business
proposition to customers.

Ansell

Industrial

Healthcare

Our Values

• Integrity – We value doing
what is right and ethical.
Ever since its start over 100
years ago, Ansell has been
dedicated to a mission of
making a difference in the
lives of its customers. All
employees are trained
regularly on our Code of
Conduct and we encourage
reporting of any concerns
employees may have
including through a
confidential hotline.

• Trustworthiness – We value
acting with respect, fairness
and dependability.

• Agility – We value

responsiveness to customers
and each other, openness to
change and flexibility.

• Creativity – We value

• Involvement – We value

inventiveness, innovation and
new and divergent ways of
thinking. Ansell continues to
extend its leadership in the
cut protection market with
a suite of HyFlex® gloves
engineered with next-
generation INTERCEPT™
Technology® yarns, featuring
an innovative new knitting
technology which blends
engineered, synthetic and
natural fibres into high
performance yarns.

• Passion – We value energy

and excitement, commitment,
drive and dedication.

our team members’ input,
influence and initiative.
Each year Ansell holds its
Innovation Awards, in which
hundreds of Ansell employees
around the world submit ideas
that have changed traditional
ways of thinking.

• Teamwork – We value

collaboration and a sense
of partnership, sharing
and caring.

• Excellence – We value a

tenacious focus on results,
accountability and goal
achievement.

ANSELL LIMITED ANNUAL REPORT 2017

ANSELL LIMITED ANNUAL REPORT 2017ANSELL LIMITED ANNUAL REPORT 2017

0505

ANSELL LIMITED ANNUAL REPORT 2017Financial Summary

Sales

EBIT 1

Profit Attributable

Operating Cash Flow 2

Earnings Per Share (US cents)

Dividends Per Share (US cents)

Results in Operating
Currency – US Dollars

2016
US$m

1,572.8

236.7

159.1

144.8

105.1

43.5

2017
US$m

1,599.7

217.8

147.7

146.0

100.1

44.0

1. EBIT defined as Earnings Before Tax and Interest.
2. Net cash provided by operating activities per the Consolidated Statement of Cash Flows adjusted for

Net Capex and interest received and paid (net interest).

14%

Sexual Wellness

25%

Medical

41%

Industrial

20%

Single Use

Results as Reported

+2%

Sales up

-8%

EBIT down

-5%

EPS down

+1%

Dividends up

Currency Reporting – United States dollar
1. The United States dollar (US$) is the predominant global currency of Ansell business transactions
and the currency in which the global operations are managed and reported. Non-US$ values are
included in this Report where appropriate.

ANSELL LIMITED ANNUAL REPORT 2017

Sales by Global Business Unit (GBU)Financial Summary continued

Results in Constant Currency

+3%

Sales up

-6%

EBIT down

-2%

EPS down

+1%

Operating
Cash flow

Results commentary

Sales growth momentum is improving on new
product success. FY17 EBIT benefited from
improving sales and product margins, but overall
was lower versus last year, with last year benefiting
from a gain on sale of the OnGuard footwear
business and unusually low incentive expense.

17%

Sexual Wellness

20%

Medical

35%

Industrial

28%

Single Use

Constant Currency Reporting
2. Constant currency financial reporting is supplemental information. It is provided using the best
estimate of the prior year results translated at the foreign currency exchange rates applicable
to the current period and compared to the financial performance for the current year. As such,
it is non-IFRS financial information. The Board believes that this provides greater insight into
the financial performance of the business by the removal of year on year foreign exchange
volatility. The principles of constant currency reporting and its implementation are subject to
oversight by the Audit and Compliance Committee of the Board.

ANSELL LIMITED ANNUAL REPORT 2017

Segment EBIT by GBUChairman’s Review

“We concluded a year of major achievements with the most notable being the divestiture
of our Sexual Wellness business. Organic growth improved and we developed detailed
plans to realise further significant value from our transformation program. We have also
put in place our CEO and Board succession plans as we prepare for the future.”
Glenn L L Barnes, Chairman

Dear Fellow Shareholders,

This has been a year of major
achievements for our Group on both
the strategic and operational fronts.
Our strategic portfolio review has resulted
in an agreement to divest our Sexual
Wellness business to owners who are
better placed to leverage its potential
and we have developed detailed plans to
realise further significant value creation
in our Industrial and Medical businesses.
Concurrent with these developments, we
have also recorded the strongest organic
revenue growth for the total business for
many years – including a very strong
performance from our largest business
unit serving the industrial market.

Global Economic Backdrop
Overall economic conditions improved
moderately through the course of the year
and provided some assistance to business
performance in the second half of our
fiscal year. Economic activity in North
America and European markets showed
signs of strengthening through the year,
particularly in Western Europe. In
emerging markets Ansell performed well
both in markets supported by improving
economic conditions, such as in Brazil, and
in markets, such as China, where economic
indicators remained subdued.

The business had to manage the impact
of very significant raw material price rises
for several months around the turn of the
calendar year. Even though these cost
pressures have subsequently moderated,
raw material costs remain significantly
higher year on year. We have notified our
customers of necessary price increases
that will start going into effect from the
beginning of FY18.

Our Results
Overall sales increased 1.7% to $1,600
million. Earnings per Share (EPS) was
5% lower at $1.00, for reasons anticipated
at the beginning of the year, including
the dilution to EPS from the OnGuard
divestment completed in FY16, and the
costs of the portfolio review that we

announced at the beginning of the year.
Higher raw material costs and a reduction
in provisions for employee incentives last
year also contributed.

It was particularly encouraging to see
the demonstration of broad-based
improvement in organic revenue growth1
when measured at constant currency.
The company achieved 3.6% growth on
this measure overall for the year and 6%
in the second half. The improvement in
Industrial was the standout performance,
Sexual Wellness continued its growth
trend, Single Use finished the year
strongly and Medical recovered lost
ground after difficulties in our Malaysian
manufacturing facility last year.

Operating cash flow continued to be
strong at $146 million. We maintained
a strong balance sheet with a level
of gearing well within the range we
consider appropriate for our business
and consistent with maintaining our
investment grade debt rating.

The Board declared a final dividend
of 23.75 cents, unfranked, taking the
total dividend to 44 cents per share,
representing a 1.1% increase on the
prior year. The record date for the final
dividend is 21 August 2017 and the
dividend payment is 8 September
2017. This constitutes the 14th year in
a row with an increasing dividend pay-out.

Portfolio Review and Sale of
Sexual Wellness business
Whilst the Sexual Wellness business is
the oldest part of Ansell, it is also unique
as a consumer goods business and one
where we are significantly smaller than
the global market leader. The other parts
of the Ansell portfolio focus on sales to
businesses where we have a stronger
market position and the go to market
model is different. During the year, the
Board announced a strategic review
of our portfolio and this led to the
announcement of an agreement to sell the
Sexual Wellness business for $600 million,
with closing subject to regulatory

approvals and other normal contractual
matters. We expect to conclude the
transaction by the end of September 2017.
This constitutes a good outcome for
shareholders and will allow Ansell to
now become even more focused on the
segments in which we are a global market
leader – Industrial and Healthcare hand
and body protection.

Transformation Agenda
The portfolio review also identified
opportunities to accelerate delivery of
the strategic potential inherent in the
markets we address and our business
model. These opportunities, once realised,
will create significant additional value
for our shareholders. The plans we have
announced have four main objectives: a
simplified, lower cost organisation structure
that is also more agile and responsive to
customer needs; an increased focus on
global supply chain excellence; increased
investment against our successful organic
growth strategy; and finally enhancing
returns on capital through improved
product cost competitiveness and a
more innovative, effective and productive
manufacturing base.

Board and CEO Succession Planning
As announced during the year, your
Board was delighted to announce that
our CEO Mr Magnus Nicolin has agreed
to lead the company until the end of the
2021 financial year, with his intention
to retire thereafter. This will allow the
Board time to further challenge and
assess the pool of internal CEO succession
candidates to allow the best candidate
to develop and emerge.

Furthermore, the Board has continued
to evaluate its own succession plans and
prepare for future requirements. John
Bevan has been announced as Deputy
Chairman and as my successor. This gives
John the opportunity to play a key role in
the shaping of future leadership of the
company at both the governance and
management levels. We have also
reconfirmed that the optimal size
of our Board is eight directors and

1. Refers to Organic Constant Currency Revenue growth as described on page 18 – Operating and Financial Review.

ANSELL LIMITED ANNUAL REPORT 2017Chairman’s
Review continued

decided that from time to time this
number will need to be increased to nine
directors to ensure an adequate balance
between corporate experience and the
change dynamic.

At this year’s AGM Mr Dale Crandall retires
after 15 years of service on our Board.
Dale was one of a small group of
experienced and dedicated directors who
joined the Ansell Board at a challenging
time in our company’s history and led the
reshaping of our business strategy and
rebuilding of our financial and operational
capacity and capability. On behalf of all
within the company and our shareholders
I would like to thank Dale for his
commitment, hard work and many
beneficial inputs to our company.

Also at this Year’s AGM we are seeking
shareholder support for the appointment
of Christina Stercken and Bill Reilly to
the Board as non-executive Directors.
Their respective details are included in
the notice of meeting. Your Board believes
that the capabilities and experience
Christina and Bill bring to the Board
will be of significant benefit to the
company’s future.

Finally, I would like to acknowledge
the committed efforts and hard work
of the men and women of Ansell. The
improved results we are seeing this year
are only possible thanks to many years
of dedication and sheer hard work by
our people as the company faced the
post GFC market malaise, built new
capability, refined its competitive
advantage and ability to grow ahead
of market rates. The confidence that the
Board has in our people and their ability
to continue to execute well against our
strategic plan gives us great confidence
for the years ahead.

Glenn L L Barnes
Chairman

ANSELL LIMITED ANNUAL REPORT 2017Chief Executive Officer’s Review

"Ansell continues to challenge itself, and the focus on growing our industry leading brands is showing
clear evidence of success. The portfolio review that led to the sale of the Sexual Wellness business also
identified significant opportunity to accelerate the performance of the Company’s continuing businesses.
The aim is to achieve this through a transformation program and continued investment in the Ansell
business. I’m very proud of the staff in what has been an impressive year, and I’m excited by the
prospects going forward."

Magnus Nicolin, Managing Director and Chief Executive Officer

Keeping our promises
Looking back on FY17, I am pleased to
report a year of achievements gained
against a series of strategic goals towards
which we have been working for a number
of years, and with the benefits now clearly
showing.

It was decided 12 months ago that there
would be three key metrics against which
medium-term performance would be
targeted: organic revenue growth; EPS
growth; and Return on Capital Employed
(ROCE). Specifically for FY17, the most
important objective was to realise
improved organic revenue growth – and
the 3.6% achieved is at the upper end of
the targeted range for the year. Success
was achieved through improved execution
against the four key drivers of organic
growth outlined opposite.

Looking to FY18 and beyond, I am
confident that the right strategies are in
place for Ansell to seize the opportunity
to refocus on the business to business
portfolio and realise the long-term
value creation opportunities available.

Achievement Against Strategic Priorities:

Organic Growth Drivers Update

1. Innovative new

• 37% growth of new products within Industrial, utilising

products

the patented innovations in yarn and latex formulations.

• Successful restoration to growth of the Medical synthetic

surgical portfolio, with synthetic surgical up 22%.

2. Gain emerging
market share

• Total emerging market sales up 9%, Latin America sales

up 18%, and a strong recovery in Russia from a weak FY16.

3. Strong global brands

• Third successive year of HyFlex® growth above 5%,

achieving 12% in FY17. Growth brands in total up over 8%,
and now representing 62% of total sales.

4. Channel

partnerships

• Strong growth with distributor partnerships, realising

market share gain targets and 16% year on year growth
in the 18 accounts signed.

Profitability and Cash Flow Business Priorities

Reduce waste in
manufacturing

Realise Capex
productivity gains

Capital Deployment

• Manufacturing waste levels were significantly

reduced, with combined waste and productivity
savings of $5 million.

• Strong results now being achieved on the primary
productivity investments in Medical packaging
rationalisation and Industrial insourcing of key raw
materials, including yarn wrapping. The combined ROCE
on both projects exceeded 35% contributing to the
positive long term development of our global ROCE.

Strategic, disciplined
M&A

• Nitritex was acquired for $56 million, significantly

strengthening capability in the Life-Science vertical.

• Success in realising growth opportunity arising from
earlier acquisitions evident in strong results from
Microgard® (sales up 27% in the second half) and
growth of Microflex® outside North America (up 19%).

Portfolio review

• The outcome of the portfolio review was very positive

– both the price achieved for the Sexual Wellness
business and the plans developed to accelerate delivery
against strategic objectives for the ongoing business
to business portfolio.

Share buy-backs

• Announced a $265 million buy-back program and initiated

this in May 2017.

ANSELL LIMITED ANNUAL REPORT 2017Chief Executive Officer’s Review continued

Group EBIT

236.7

4.9

10.7

Constant Currency Growth -6.0%

EBIT benefit of sales growth
less RM inflation 11.2%

33.9

220.8

217.8

3.0

11.0

11.5

198.7

11.8

FY16
Reported

Net
Acquired/
Exited

Incentive
Cash
Expense
Change

Incentive
Provision
Change

FY16
Pro-forma

Raw
Material
Inflation

EBIT
Benefit
from Sales
Growth

FY17
ex Portfolio
Review
Costs

Portfolio
Review
Costs

FY17
Reported

Sexual Wellness business
divestment
The expected completion of the
divestment of the Sexual Wellness
business is a significant event. The
business has achieved excellent results in
the last couple of years and maintained
that momentum in FY17, despite the
uncertainty of the portfolio review. The
dynamism and creativity of Jeyan Heper,
President SW, and the SW team will be
missed; however, ultimately this business
can achieve even more under a new
owner focused on consumer products.
An in-depth process was conducted that
involved the evaluation of more than
40 bids from a wide range of potential
owners, with the Chinese consortium of
Humanwell and CITIC Capital being the
successful party. The sale is expected to be
completed by the end of September 2017.

Group Results – inclusive of
discontinued operations
Overall, sales were up 1.7% in FY17.
Organic revenue growth at constant
currency was up 3.6%, the strongest
organic growth in the last five years.

EBIT at $218 million was $19 million lower
than in FY16. The decline was anticipated
at the beginning of the year as prior year
benefits, from the gain on sale of OnGuard®
and a reduction in incentive provisions,
were not expected to recur in FY17. These
negative effects were partially offset by
the benefit to EBIT of sales growth and

improving gross margins, achieved even
though the prices of key raw materials
increased significantly in the second half
of the year.

Selling price increases have been
implemented, but it will take time for the
benefits to be realised. The success of
differentiated new products and growth
in higher margin end markets were able
to offset the impact on gross margins of
raw material inflation. The decline in
EBIT also resulted in a fall in Return on
Capital Employed (ROCE); however, capital
productivity measured in proportion to
sales revenue improved and this bodes
well for future improvement in ROCE.

Industrial GBU
The Industrial GBU is a complex business
that serves a wide variety of different
end market needs through an extensive
product portfolio of over 1,000 different
product styles. Effectively managing this
complexity is key to the long-term success
of Industrial. It is therefore particularly
satisfying to see the significant
improvement in organic growth achieved
in Industrial in FY17 as a result of a
multi-year strategy focused on enhancing
the long-term growth potential of the
business. Success was seen initially as key
global brands gained traction. HyFlex®,
for example, has now enjoyed its third
year of high single or low double-digit
growth. The strategy to drive growth
through innovation began 6 years ago and
started to deliver strong results two years

ago, with new product sales up 77% over
the last two years. These results were not
initially visible as the growth from these
initiatives was offset by the continued
effects of necessary rationalisation and
simplification of the product portfolio
and planned exits of non-core markets
and product lines such as military gloves
and retail offerings.

In FY17, Ansell continued to deliver strong
results from new products including an
increased contribution from recently
acquired product ranges, such as
Microgard® chemical protective clothing.
The concurrent focus on strengthened
partnerships with key distributors and
growth in emerging markets with the
EDGE brand also contributed. As a result,
all components of the growth strategy
are now delivering, while the drag from
rationalisation is smaller, resulting in
the 5% Industrial organic revenue growth
achieved in the year.

Single Use
Our Single Use business gained significant
momentum in the second half to finish the
year with sales revenue ahead of last year.
Innovation continued to yield benefits,
with sales of the new High Chem® range
exceeding first year expectations, whilst
growth in emerging markets was also very
strong. Moreover, the global expansion
of Microflex®, from a traditionally North
American brand to other Ansell regions,
is generating strong growth (+19%) with
more upside forecast. Raw material cost
increases placed downward pressure on
trading margins during the year, however
price increases went into effect from the
beginning of FY18 and are expected to
benefit margins in the coming fiscal year.

Also contributing to growth was the
Nitritex acquisition completed in January
2017, and already exceeding original
projections for the business. Plans in place
to build on the acquired BioClean® brand,
as Ansell’s branded offering in the sterile
clean room environment, should be well
received by customers. Changes to
improve Ansell’s relevance and customer
service to the life science vertical, have
been recognised by a number of customer
awards from leading global distributors.

ANSELL LIMITED ANNUAL REPORT 2017Chief Executive Officer’s Review continued

Capital Deployment
Ansell remains active in identifying
and progressing potential acquisition
opportunities whilst maintaining a
disciplined approach, and anticipates
continuing to pursue a balanced capital
deployment strategy incorporating
dividends and share buy-backs when
that is the best use of surplus capital.

The Nitritex acquisition described above
is a good example of how Ansell can
leverage smaller acquisitions to
strengthen long-term growth potential,
a formula that has worked well across
a range of recent acquisitions. There are
continued opportunities to complete
attractive ‘tuck-in’ acquisitions similar
to Nitritex, with a number of larger
acquisition opportunities also under
evaluation.

The Ansell Team
Finally, I would like to recognise and thank
my colleagues and all Ansell employees
across the world for an impressive year
of accomplishment. The team has worked
harder and more effectively than ever,
realising strong development of the core
business, successfully completing the
portfolio review and securing a great
outcome for our shareholders, while also
developing a compelling plan to bring
about the vision of a re-shaped Ansell that
will be more focused, more agile, and
better positioned for success in the years
to come – thank you

Magnus Nicolin Managing Director
and Chief Executive Officer

As part of this transformation program,
Ansell will:

1. Merge the Single Use and Medical
GBUs into a new Healthcare GBU,
which will leave Ansell with two GBUs
(after the Sexual Wellness divestiture).
The main benefit of the combined
GBU is to integrate product innovation,
manufacturing and supply chain
strategy to accelerate growth and
enhance returns across the full range of
exam and surgical product portfolios;

2. Enhance significantly the focus on

global supply chain excellence. While
Ansell has made significant strides in
this area in the last couple of years,
supply chain efficiency and effectiveness
remain well short of the benchmarks
Ansell aspires to. While customers are
pleased at the improvements that have
been made in service levels, further
improvement is possible while also
reducing the amount of inventory
carried;

3. Step up investment behind new product
technologies, improved sales coverage,
and expanded production capacity to
ensure Ansell remains ahead of market
demand while enabling continued
improved organic growth performance;

4. Create a multi-year program to

bring about significant benefits to
the competitiveness of production
costs while enhancing returns on the
manufacturing asset base from a series
of investments that will realise the
potential now being seen at the
best-performing and lowest-cost sites.

The objective over time is to fully offset
the dilution to earnings, from the sale of
the Sexual Wellness business, through
accelerated organic EBIT growth of the
Industrial and Healthcare businesses. In
addition, Ansell aims to realise benefits
to shareholders from redeploying the
estimated $529 million after-tax proceeds
from the Sexual Wellness divestment
through a continuation of our balanced
approach to capital deployment.

Medical
Ansell’s synthetic surgical gloves utilise a
patent protected technology to maximise
dexterity and comfort for the most
important tools that medical professionals
have: their hands. During the year, there
was an accelerated shift in the industry
away from outdated powdered rubber
latex surgical gloves towards synthetic
surgical gloves in a number of regions.
A star performer within the synthetic
portfolio was the SENSOPRENE®
technology that is unique to Ansell
and was up 65% year on year.

This created an opportunity to gain market
share. In North America, for example, the
Company picked up more than 130 basis
points of market share. This growth was
possible as capacity constraints seen in
FY16 were addressed and there is now
significant future potential in the surgical
glove area.

Whilst surgicals grew strongly, overall top
line growth in Medical was subdued due to
continued declines in sales of low margin
exam gloves. Initiatives are underway to
restore growth in the exam sector through
new product launches and a more
dynamic sourcing strategy that will
improve Ansell’s cost competitiveness.

Balance Sheet and Cash Flow
The Group continues to enjoy a strong
balance sheet, with net cash provided
by operating activities of $216.2 million.
Lower requirements for capital
expenditure ensured our preferred
operating cash flow measure, calculated
after deducting capex and net interest
payments, improved on the prior year.

Transformation
The portfolio review had two key
objectives. The first was to divest the
Sexual Wellness business at an attractive
valuation, and that was successfully
accomplished as described above. The
second was to identify a way to realise
the full potential of the continuing hand
and body protection businesses. In recent
announcements a transformation program
has been outlined that aims to achieve
significantly enhanced performance in
these businesses.

ANSELL LIMITED ANNUAL REPORT 2017Five-Year Summary
of Ansell Limited and Subsidiaries for the year ended 30 June 2017

Income Statement

Sales

EBIT

Net financing costs

Income tax expense

Non-controlling interests

Profit attributable to Ansell Limited shareholders

Balance Sheet

Cash – excluding restricted deposits

Other current assets

Property, plant and equipment

Intangible assets

Other non-current assets

Assets held for sale

Total assets

Current payables

Current interest bearing liabilities

Other current liabilities

Non-current interest bearing liabilities

Other non-current liabilities

Liabilities held for sale

Total liabilities

Net assets

Issued capital

Reserves

Retained Profits/(Accumulated Losses)

Ansell Limited shareholders' equity

Non-controlling interests

Total shareholders' equity

Total funds employed

Share information

Basic earnings per share (cents)

Diluted earnings per share (cents)

Dividends per share (cents)

Net assets per share ($)

General

Net cash from operating activities

Capital expenditure

Shareholders (no.)

Employees (no.)

Ratios

EBIT margin (%)

Return on average shareholders' equity (%)

EBIT return on funds employed (%) – ROCE

Average days working capital

Interest cover (times)

Net liabilities to shareholders' equity (%) – gearing

Number of shares at 30 June (million)

1. Includes continuing and discontinued operations.

2013
US$m

1,373

171

139

306

523

187

541

147

1,704

219

451

930

774

865

(144)

758

774

1,009

106.5

106.1

A38.0

5.9

130

33,126

12,596

12.5

19.1

16.9

82.5

15.5

80.6

131

2014
US$m

1,590

321

611

206

1,068

155

2,360

243

108

720

134

1,219

1,141

1,227

(151)

1,125

1,141

1,555

29.3

29.1

US39.0

7.5

221

33,886

12,607

5.3

4.6

5.4

85.9

4.6

78.7

153

2015
US$m

1,645

245

188

278

619

231

1,116

132

2,376

244

734

147

1,210

1,167

1,230

(49)

(29)

1,152

1,167

1,629

122.5

121.4

US43.0

7.6

200

36,014

14,500

14.9

16.4

15.1

81.4

11.4

79.8

153

2016
US$m

1,573

237

159

270

577

245

1,077

122

2,291

241

687

152

1,154

1,137

1,147

(88)

1,121

1,137

1,559

105.1

104.5

US43.5

7.7

232

39,884

15,890

15.0

14.1

14.9

85.6

10.7

77.8

148

20171
US$m

1,600

218

148

314

546

218

1,050

122

201

2,451

230

717

142

1,222

1,229

1,142

(78)

147

1,211

1,229

1,636

100.1

98.9

US44.0

8.3

216

36,798

15,483

13.6

12.7

13.6

83.2

9.6

73.9

147

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review

The World of Ansell

The world’s need for better protection never stops, so we are constantly researching,
developing and investing to stay on the cutting edge of product innovation and new
technologies. With our global presence, we are a market leader that continues to grow,
through new-product development, acquisitions and the expansion of our footprint in
emerging markets. Customers in 100 countries around the world trust Ansell and our
protection solutions.

North
America

Europe,
Middle East
and Africa

Latin America
and Caribbean

Map Key

Corporate offices

Operating facilities

Manufacturing and distribution facilities

Research and development facilities

Asia Pacific

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review continued

North

America

Europe,

Middle East

and Africa

Latin America

and Caribbean

Map Key

Corporate offices

Operating facilities

Manufacturing and distribution facilities

Research and development facilities

Asia Pacific

North America

Head office:
Metro Park, New Jersey

Revenue

$628m

Assets

$224m

Latin America and
Caribbean (LAC)

Head office:
São Paulo, Brazil

Revenue

$94m

Assets

$49m

Asia Pacific (APAC)

Head office:
Melbourne, Australia and Cyberjaya, Malaysia

Revenue

$168m

Assets

$313m

Europe, Middle East
and Africa (EMEA)

Head office:
Brussels, Belgium

Revenue

$485m

Assets

$180m

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review continued

Strategy & Focus

Grow share
in emerging
markets

Build strong
global brands

Innovate
and grow new
product sales

Develop
stronger channel
partnerships in
focus verticals

Organic
Growth

Leverage core
processes
for improved
customer
service

In-sourcing
key materials
and technology

Profitability &
Cash Flow

Lean
Manufacturing

Rationalising
brands, SKUs,
legal entities,
sites

Capital
Deployment

High return
capex enabling
growth and
productivity

Consistent
dividend
growth

Strategic,
disciplined
M&A

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review continued

Strategy
Ansell has the global market leading position in single and multi-use hand protection for industrial end-users and in surgical gloves. We
also have fast-growing positions in Industrial body protection products, safety solutions to the surgical operating room and an expanded
offering in clean room laboratory environments.

The markets we focus on provide attractive long term sources of growth. Demand for improved protection of workers, whether in
medical or industrial environments, is often driven by increased regulatory requirements or government initiatives to improve worker
safety. This helps drive demand for advanced protection equipment in developed and emerging markets.

Ansell’s ability to build and maintain its leading positions in attractive markets arises from the following:

• The breadth and performance of our unmatched product range. Through our focus on R&D and innovation, we created many of these

product categories and continue to lead the industry in product performance.

• Our unique material science capability allows us to provide solutions to the needs of protection with a product that is comfortable
to use and improves worker productivity. Many of these capabilities are patent protected. For example, some products maximise
protection whilst also reducing the risk of skin irritation and allergic reaction. Our commitment to maintaining optimum comfort and
dexterity means that many products are unique in their field in having ergonomic certification. We also lead our industry in providing
high cut protection from light weight yarns.

• We have invested over many years in our patented Guardian® technology (tools that provide comprehensive advice to end users on

the right products to use for optimal safety and productivity) and so built strong relationships with end users.

• We are uniquely positioned to provide global solutions as the only industry participant with leading market positions in all our product

ranges in all regions.

• Through a disciplined acquisition strategy we have:

– strengthened our core market positions,

– increased our ability to differentiate in material science, and

– added near adjacent product portfolios which we are demonstrating we can grow rapidly on a global basis.

Our business priorities for advancing our strategic goals in FY17 were oriented around the following main objectives:

• New product development.

• Grow emerging market footprint.

• Stronger brands, by expanding existing growth brands such as HyFlex® as well as recently acquired product ranges such as Microflex®

and Microgard® globally.

• Build stronger and deeper partnerships with our key distributor partners.

• As capacity constraints are resolved in Medical, work to resume growth of our leading synthetic surgical range and reduce wastage

levels in our key manufacturing plants.

• Continue improvement in service and quality metrics to ensure Ansell is the leading company globally on these criteria as well as in

product performance.

• Ongoing productivity savings stemming from our past capex investments.

• Engage in a portfolio review of the core business, focusing on the longer term future of the SW business as well as evaluating growth

opportunities within our business framework.

• Strategic and disciplined acquisition evaluation.

Our progress on these goals are detailed on the following pages.

Review of Operations
Financial Reporting Presentation – Held for Sale
As a result of the announcement of the divestiture of our Sexual Wellness business (‘SW’) for $600 million, our reported results have
been split between:

• Discontinued Operations – SW held for sale

• Continuing Operations

The sale also has implications for the reported results of the Continuing Operations as the central costs previously absorbed by SW
have been allocated to the continuing GBU’s. In readiness for the SW sale, the group announced a transformational agenda for FY18
and beyond, which is expected to yield significant benefits from a simplified corporate structure as well as the implementation of other
initiatives. These are discussed further in the outlook section and are expected to ensure that the higher cost allocation to Continuing
Operations will only be temporary with the transformation program targeting cost savings that will more than offset this impact.

At Ansell, we believe in providing the necessary information to our investors to ensure that our financial statement commentary is
meaningful and at all times provides relevant year over year comparatives. Given the above, commentary on the results will be on
the group including the SW business, with commentary on EBIT generally on the GBU EBIT before corporate cost allocations as these
provide the best like for like comparisons for the year.

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review continued

Financial Summary

US$ millions

Sales

Profit before interest and tax (EBIT)4

Profit for the period attributable to Ansell Ltd shareholders

EPS (US ¢)

EPS excluding portfolio review cost2

Operating Cash Flow3

Dividend (US ¢)

FY16

1,573

237

159

105.1

144.8

43.5

FY17

1,600

218

148

100.1

101.7

146.0

44.0

% Change

% CC Change1

+1.7%

-8.0%

-7.2%

-4.8%

-3.2%

+0.8%

+2.6%

-6.0%

-5.0%

-2.4%

-0.9%

1. CC denotes Constant Currency – compares FY17 to FY16 results restated at FY17 average FX rates and excludes the value of FX gains or losses in both periods.
As such, it is non-IFRS financial information. The Board believes that this provides greater insight into the financial performance of the business by the removal
of year on year foreign exchange volatility. The principles of constant currency reporting and its implementation are subject to oversight by the Audit and
Compliance Committee of the Board.

2. Portfolio review costs are described in the Group EBIT commentary on the following page.

3. Operating Cash Flow, is Net cash provided by operating activities per the Consolidated Statement of Cash Flows adjusted for net expenditure on property,

plant equipment, intangible assets and net interest.

4. EBIT is after corporate costs have been allocated.

Group Sales Commentary
• Sales revenue was 1.7% higher as reported; this reflected an improved rate of organic revenue growth of 3.6% calculated after

excluding the negative effect of changes in currency rates on revenue (-0.9%) and divestments and acquisitions (-1%).

• Industrial achieved particularly strong results through the success of Growth Brands3. This was achieved through the rapid growth

of new products and market share gains through our strengthened partnership with key distributors.

• Medical sales benefited from improved surgical glove revenue, with the business quickly returning to growth following the resolution
of the manufacturing issues that limited product availability last year. Our leading synthetic surgical range grew 22%. This was offset
somewhat by a decline in sales of lower margin examination gloves in less differentiated end markets.

• Our continued efforts on service and quality delivered a significant improvement in the service metrics important to our customers.
We were pleased to see this recognised in a number of customer awards and it has been important to our strengthened strategic
customer partnerships.

• The Sexual Wellness division continued its recent track record of strong growth, overcoming the uncertainty caused by the

announcement of the portfolio review at the beginning of the year and the subsequent sale process.

• The year over year sales performance is summarised below.

Group Sales Bridge

Constant Currency (CC1) Growth 2.6%

Organic Constant Currency Growth 3.6%

62.6

8.8

1,599.7

1,572.8

13.2

15.0

1,544.6

16.4

FY16

Net
Acquired/Exited4

FY16
Pro-forma

SUIM2
Growth
Brands3

SUIM
All Other

SW2

FY17

1. CC denotes Constant Currency – which compares FY17 results to FY16, restated at FY17 average exchange rates and excluding the value of Foreign Currency gains

and losses in both periods.

2. SUIM means Single Use, Industrial and Medical GBU. SW means Sexual Wellness GBU.

3. Growth brands composed of Industrial – HyFlex®, ActivArmr®, AlphaTec®, SolVex®, Edge®; Single Use – Microflex®, TouchNTuff®; Medical – GAMMEX®, ENCORE®,

MEDIGRIP®, SANDEL®.

4. Net Acquired/Exited refers to the net impact of the FY17 acquisition of Nitritex less the FY16 disposal/exit of the OnGuard, French retail and military businesses.

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review continued

Group EBIT Commentary
EBIT was down 7.5% from $237 million to $218 million for the year. A number of factors explain the decline in EBIT:

1. The net effect of acquisitions and divestments reduced EBIT by $10.7 million against a prior year result that included an $8 million

gain recorded on the sale of the OnGuard business in May 2016.

2. Portfolio review costs of $3 million were incurred during FY17. These were one-off costs arising as a result of activities with a
particular focus on identifying the optimal strategy for the continuing business and leading to the transformation program
subsequently announced.

3. The Group saw significant raw material price increases that adversely affected profitability by $11.8 million. Price increases have

now been implemented and are expected to offset this effect in FY18, however they had limited benefit to the current year.

4. Finally, our accrual for short-term and long-term employee incentives increased in comparison to FY16. The FY16 incentive expenses

were lower on reduced STI achievement and the reduction in provisions for current and future year expected LTI achievement.
Furthermore, the FY17 incentive expense increased on improved STI achievement. The LTI plan vesting in FY17 did not meet threshold,
however provisions were made for expected future LTI vesting.

Excluding these factors, the business achieved profit growth arising from manufacturing process improvements, organic sales growth
and strong cost control.

A graphical summary of the key profit drivers is shown below.

Constant Currency Growth -6.0%

EBIT benefit of sales growth less RM inflation 11.2%

236.7

4.9

10.7

11.0

11.5

198.7

11.8

33.9

220.8

217.8

3.0

FY16
Reported

Net
Acquired/Exited

Incentive Cash
Expense Change

Incentive
Provision
Change

FY16
Pro-forma

Raw Material
Inflation

EBIT Benefit
from Sales
Growth

FY17
ex Portfolio
Review Costs

Portfolio
Review
Costs

FY17
Reported

Borrowing Costs and Taxes
Net interest costs were up $0.5 million or 2.2%. The increase largely reflected the funding of the Nitritex acquisition for $56.1 million
during the second half of the year.

Taxation expense of $44.9 million reflected an effective tax rate of 23%, slightly below the 24.5% rate from the prior year. The reduction
in the effective rate was largely due to the significant tax expense incurred on the sale of the OnGuard business in FY16.

Cash Flow Commentary
FY17 demonstrated the continued strong cash generation profile of the Group. Net cash provided from operating activities at
$216.2 million was lower, however this was more than offset by reduced capital expenditure against FY16. Other factors influencing
cash flow included:

• Higher Tax payments as a result of the timing of taxation payments, a large part of which related to the one-off gain on sale of the

OnGuard business in FY16.

• Lower net receipts from operations, due in part to increased inventory levels in anticipation of higher go forward sales and also in

support of desired customer service levels.

Cash outlays on investing activities were higher than FY16 despite lower expenditure on property, plant and equipment. The main
increase related to the $56.1 million outlay for the acquisition of the Nitritex business, which completed in January 2017.

ANSELL LIMITED ANNUAL REPORT 2017
Operating and Financial
Review continued

Industrial –
Global Business Unit

+5%

Sales (organic
constant currency)

Reported sales
% change

+4%

EBIT before
corporate costs

-10%

Reported EBIT
% change

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review continued

Industrial – Global Business Unit

Sales

EBIT

EBIT/Sales

FY16

654.8

89.0

13.6%

FY17

655.9

79.8

12.2%

% change

+0.2%

-10.3%

CC%

+1.0%

-8.4%

The Industrial GBU manufactures and
markets high-performance, hand and
body protection solutions for a wide-
range of Industrial applications. Ansell
protects workers in almost every industry
including Automotive, Chemical, Metal
Fabrication, Machinery & Equipment,
Food, Construction, Mining, and First
Responders.

Sales Performance
Sales performance has been impacted
by the sale of the OnGuardTM business
in the prior year. Organic sales grew
5.2% after adjusting for OnGuardTM
and constant currency.

• Growth Brands were up 13% on the back
of strong gains in HyFlex® and AlphaTec®,
whilst Edge® also made strong inroads,
particularly in the emerging markets.

• New products grew 37% assisted by our
innovative core technology platforms of
INTERCEPTTM and FORTIXTM.

• Global channel partnership program

continues to gain strength and
momentum.

EBIT Performance
EBIT was down 10.3% on the prior year
as a result of an increased corporate cost
allocation including a portion of the costs
previously allocated to SW. EBIT before
corporate costs was up 4%, with improved
margins on the success of new products
more than offsetting the negative impact
of divestments and exits.

Record new product sales delivered +$128m

Almost 20 new HyFlex® products
launched, including a series of the
worlds thinnest cut plus oil protection
products HyFlex® 11-93X Series.

$235m

HyFlex® sales
up 10%

Record core brand growth in addition to HyFlex®

$21m

$13m

Brands

AlphaTec®
sales up 16%

Edge®
up 80%

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review continued

Medical – Global Business Unit

Sales

EBIT

EBIT/Sales

FY16

396.3

52.3

13.2%

FY17

399.6

47.0

11.8%

% change

+0.8%

-10.1%

CC%

+1.1%

-15.4%

• Surgical gloves up 6% with synthetic

surgical gloves up 22%.

• New products grew 17% assisted
by the US FDA ban on powdered
gloves and growth in the SENSOPRENE®
brand of 65%.

• Significant declines observed again
in low-margin exam glove sales,
particularly in the highly competitive
acute vertical.

The Medical GBU manufactures and
markets surgical and examination
gloves together with a range of
healthcare safety devices such as
disposable scalpels and antimicrobial
surgical theater consumables. Its customer
base includes Acute Care Hospitals,
Emergency Services, Alternate Care,
Dentistry & Veterinary clinics.

Sales Performance
Significant capacity was added to the
production facilities for synthetic and
powder-free surgical production lines
over the past two years. These investments
have seen:

EBIT Performance
EBIT was down 10.1% on the prior year
as a result of an increased corporate
cost allocation including a portion of the
costs previously allocated to SW. EBIT
performance benefited from the plant
performance improvements and cost
reduction initiatives stemming from the
SmartPak packaging improvements.
Furthermore, the business continued to
effectively control its overheads with
discretionary expenditures curtailed
wherever possible. Unfortunately,
higher raw material costs offset these
improvements and EBIT before corporate
costs was level with last year.

Core growth brand sales +7%

+10%

+27%

GAMMEX®

ENCORE®

New product sales

+$75m

New products growing 17%

Brands

ANSELL LIMITED ANNUAL REPORT 2017
Operating and
Financial Review continued

Medical –
Global Business
Unit

+1%

Sales (organic
constant currency)

+1%

Reported
sales growth

EBIT before
corporate costs

-10%

Reported
EBIT

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review continued

Single Use –
Global Business Unit

+3%

Sales (organic
constant currency)

-2%

EBIT before
corporate costs

+6%

Reported
sales growth

-2%

Reported EBIT
% change

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review continued

Single Use – Global Business Unit

Sales

EBIT

EBIT/Sales

FY16

301.7

64.6

21.4%

FY17

319.0

63.1

19.8%

% change

+5.7%

-2.3%

CC%

+6.7%

+0.2%

• New products growing 25%, primarily
on the back of the Microflex® global
expansion and the new High Chem®
launch.

The Single Use GBU has the market
leading range of high-performance
single-use gloves used in a broad variety
of applications including Chemical, Food
Services, Life Sciences, Electronics, and
Automotive After Market. The GBU was
created subsequent to the acquisition of
BarrierSafe Solutions International (BSSI)
in January 2014.

Sales Performance
Sales were up 6.7% in constant currency
terms, however this included the benefit of
the Nitritex acquisition. Underlying organic
growth was 3% for the year, with 8% year
over year growth in the second half.

Key drivers of the growth included:

• Ongoing global expansion outside

of North America. The new Microflex®
global expansion products grew 19%.

Expanding Single Use internationally

+19%
growth

+18%
growth

High
Chem
launch

Sales outside of
North America

Emerging
markets

New products

Developing life sciences platform

$100m
sales

Ansell global
life sciences

Brands

• Emerging markets sales are accelerating
strongly with 18% growth over the last
three years.

EBIT Performance
EBIT was down 2.3% on the prior year as
a result of an increased corporate cost
allocation including a portion of the costs
previously allocated to SW. Furthermore,
higher raw material costs and price
reductions implemented earlier in the
year also affected the EBIT result. Price
increases have been communicated to
customers and will begin to go into effect
from July 2017.

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review continued

Sexual Wellness – Global Business Unit

EBIT Performance
EBIT was up 29% on the prior year, which
included the impact of the SW corporate
allocation referred to earlier. EBIT before
corporate costs was up 10.4% on the back
of higher sales, however trading margins
also improved due to the on-going focus
on increasing high margin products
coupled with strong cost control.

Sales

EBIT

EBIT/Sales

FY16

220.0

31.0

14.1%

FY17

225.2

40.0

17.8%

% change

2.4%

29.0%

CC%

4.1%

33.3%

The Sexual Wellness GBU (SW) manufactures,
sells and markets a range of branded
condoms, lubricants, devices and
fragrances globally. It sells through
retail outlets and also supplies condoms
to public health programs globally.
As discussed above, Ansell has reached
an agreement to divest the SW business
to a consortium consisting of Humanwell
and CITIC Capital for $600 million. The
sale is anticipated to settle by the end
of September 2017.

Sales Performance
The SW business once again delivered
solid organic growth of 4.1% on a constant
currency basis. Key drivers of growth
included:

• Emerging markets growing at 7% with

China and Brazil leading the way.

• Growth in China was assisted by

e-commerce growth.

• Lubricant products growth under the

already successful SKYN® brand.

• New product sales growth at 22%.

Lubricant sales up 8%

No.1

+30%
growth

+21%
growth

SKYN® is the No.1
non latex condom
in the world

China – SKYN®
and e-commerce

Strong demand in
Brazil for SKYN®
post the Olympics

Brands

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review continued

Material Business Risks
Ansell has established controls and procedures that are focused on safeguarding the Group’s assets and the integrity of its reporting.
The Group’s internal control processes cover accounting, financial reporting, safety and sustainability, fraud, delegations of authority
and other control points. The risk management framework below summarises the Group’s approach to managing risk, including the
identification, definition or establishment of risk appetite and monitoring of risks to that appetite.

Risk Management Framework

Risk Appetite

• Management

establishes risk
appetite (goals,
metrics)

• Risk Committee and

Board oversight

• Cascades through
the organisation

Organisational
Alignment

Resource and
Adherence

• Identify major risks

• Risk mitigation

process

• Risk appetite updated

after feedback

• Adherence to risk

appetite

• Supports risk culture
to ensure they are
within acceptable
tolerances

Communication

• Organisational
communication
of strategies and
objectives

• Clear communication

of how much risk
organisation will
accept

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review continued

Material Risks – Description and Mitigation Actions

Risk

Global markets instability

Systems and technology

Nature of Risk

Mitigation Actions

The Group's presence in over 30 countries
globally and its growing presence in
emerging markets exposes the Company to
geopolitical, regulatory and other factors
beyond the Group's control.

• Continually monitor the Group's exposure
to these risks through our local presence.

• Geographic diversification provides

protection in itself.

Ansell relies on Information Technology
(IT) platforms. Interruption, compromise to
or failure of these platforms could affect
Ansell's ability to service its customers
effectively.

• Modern ERP systems are in place in the
largest regions of North America and
EMEA whilst also managing our supply
chain. Disaster recovery plans are in
place and tested regularly.

• These systems are progressively being

deployed through the rest of the group.

• The Group has an active cyber risk
management program, including
conducting tests on the vulnerability
of key systems and ongoing training to
employees on their responsibility for
mitigating cyber fraud risk.

• The Group has business continuity and

disaster recovery plans for all major sites.

• Insurance coverage including business

interruption cover.

• The Group monitors its overall exposure
to individual sites and seeks to limit its
dependence on any one site through dual
sourcing strategies.

• Ongoing safety, fire preparedness and
local country economic reviews are
conducted.

• A dedicated project management office

has been established reporting to the CEO.

• Detailed communication plans are under
way to ensure affected staff are clear on
new roles and responsibilities.

• Contingency and risk management plans

have been developed.

• The Group's foreign exchange risks and
management strategies are detailed in
Note 15 to the financial statements.

• Investment in quality assurance and

governance practices, including
systematic quality assurance testing
during and after the manufacturing and
procurement process.

• Dedicated team of quality and regulatory

staff monitor this.

• Utilise dual sourcing strategy wherever

feasible.

• In recent years there has also been a
strategy of vertical integration which
reduces dependency on third parties.

Major incident at a significant
manufacturing site or warehouse

The Group has a number of materially sized
manufacturing sites and warehouses. These
are vital to the business and financial losses
from natural disasters, civil or labour unrest,
terrorism, major fire or other incidence are
possible.

Transformation change management

Foreign exchange risk

Product quality and reputational risk

Loss of a key supplier

The Group has announced a series of
initiatives designed to improve the
performance of the continuing business.
With any change of this nature there is
a risk of business disruption.

Around half of the Group's revenues and
costs are in currencies other than the US$.
With volatile foreign exchange markets,
significant changes can occur in foreign
exchange rates and result in a significant
impact on US$ earnings.

As a manufacturer, quality is paramount to
the Group and failures in this area can have
a significant negative effect on results and
customer relationships.

Raw materials purchased for manufacturing
purposes and buying finished goods exposes
the group to the risk of the failure of a
supplier to perform leaving the Company
short of a vital ingredient or product.

ANSELL LIMITED ANNUAL REPORT 2017Operating and Financial Review continued

Outlook
Ansell organises its strategic priorities under the most important
drivers for long-term shareholder value, being organic revenue
growth, profitability and cash flow generation and successful
deployment of capital.

Profitability
& Cash flow

Organic
Growth

Capital
Deployment

Shareholder
Value Creation

Organic Growth
The Group expects to build on the
momentum seen in organic growth
particularly in the second half of FY17,
through a continuation of its existing
growth strategy. New product launches
at the end of FY17 and those planned for
this year have been well received by
customers and the Company expects to
build on the success of its innovative
Intercept yarn technology while also
growing the unique chemically resistant
single-use range. Continued growth in
synthetic surgical gloves is also a priority.

Continued development and broadening
of the distributor channel partnership
program is expected to contribute to
market share gains, particularly in
developed markets. In emerging markets
we will continue to increase our sales
resource while also launching new
products dedicated to emerging
market customers.

Successful delivery of announced
price increases is a further important
objective to offset the impact of higher
raw material costs.

Profitability and Cash Flow –
Transformation Agenda
The primary driver to strengthened
profitability and cash flow performance
in the coming years is expected to be
successful accomplishment of the
transformation plan objectives.

The Group announced a streamlined
organisation structure in which the Group
would be organised around two Global
Business Units (GBUs) being Industrial and
Healthcare. Healthcare has been formed
through the merger of the former Single
Use and Medical GBUs. The simpler GBU
structure will enable productivity gains
in support functions and in the regional
sales organisations while also improving
the organisation’s agility and
responsiveness to customers’ demands.

The Group will continue to target strong
cash flow performance. A key priority of
the transformational agenda is improved
supply chain effectiveness, with a new
global supply chain function bringing
together all sales and operations planning,
transportation, and distribution into a
single global function. The objectives
include further improvements in customer
service, reduced distribution cost and cash
flow benefits in excess of $30 million from
higher inventory turnover.

The Group will seek to optimise its
13 global plants and more closely link them
under the two GBU reporting lines. Site
productivity initiatives will be implemented
and the realignment of product
manufacturing locations will ultimately
lead to lower costs and improved flexibility
and further enhance Ansell’s leadership
in product performance and quality.

The Group will also accelerate its
investments in technology and automation
to support its fastest-growing and most
innovative products. Step change
improvements in manufacturing
efficiencies will be implemented while
creating the capacity to support continued
market share gains in key target market
verticals.

The total expenditure on the
transformational program will be in the
vicinity of $70 million to $100 million.
Between $40 million to $50 million of
this is targeted towards cost reduction
initiatives and these are anticipated to
yield annualised benefits of $30 million
by FY20. Savings of approximately
$5 million to $7 million are expected to
be realised in FY18. Non-cash asset
write-downs of $20 million to $30 million
are also expected in the coming 30 months
as older, less productive manufacturing
lines are decommissioned. The balance
of the investment will be on increased
capital expenditure with benefits to be
seen primarily in continued rapid growth
arising from the Group’s product
innovation strategy.

Capital Deployment
The Group anticipates that the SW sale
will be finalised by 30 September 2017,
with net after-tax proceeds estimated to
be $529 million. In addition to reducing
the net interest expense for Ansell, the
proceeds will also be used towards a
$265 million share buy-back program
that was announced in May 2017.

Furthermore, the Group will continue
to carefully evaluate acquisition
opportunities, with a number already
in the pipeline for consideration.

ANSELL LIMITED ANNUAL REPORT 2017
Corporate Social Responsibility & Sustainability Report

A N S E L L
C O R P O R AT E S O C I A L
R E S P O N S I B I L I T Y

Introduction

Ansell’s commitment to
protection goes well beyond the
solutions we bring to the market.
We seek to lead transformational
change within our company and
our industry, creating a safer,
healthier world. We recognise
that our journey is ahead of
us but our strategy maintains
continuous improvement
towards a positive difference.

We believe that the pathway to true
stewardship is to bring our core values
of Integrity, Transparency, Creativity,
Involvement, Passion, Agility, Teamwork and
Excellence to our commitment of creating
a more sustainable future for Ansell.

In September 2015, the UN adopted the
Sustainable Development Goals (SDGs),
providing a powerful ambition for
improving our world. The SDGs comprise
17 goals and 169 targets that seek to end
all forms of poverty, fight inequalities,
improve health and education, tackle

Materiality Assessment Map

s
r
e
d
l
o
h
e
k
a
t
s
o
t
e
c
n
a
t
r
o
p
m

Water Use and
Management

Supplier
Diversity

Packaging
Transportation
Impacts

Volunteerism

Commitment to the United Nation’s sustainable
development goals

Key focus areas

Business Ethics &
Competitive Behavior

Climate & Resource
Efficiency

Disaster Preparedness
& Response

Health &
Safety

Labour Practice
& Local Hiring

Product Quality
& Recall

Strategic
Engagement

Strategic
Philanthropy

Talent Development
& Recruitment

climate change and promote economic
growth and prosperity over the next 15
years. Identifying our key sustainability
focus areas has enabled us to assess how
we can align with the UN Sustainable
Development Goals to ensure our

sustainability priorities are consistent
with these Global Goals.

Refer to http://www.undp.org/content/
undp/en/home/sustainable-development-
goals.html for more information on the
UN Sustainable Development Goals.

Disaster
Preparedness/
Response

Labour
Practice
and Local
Hiring

Supply Chain
Transparency

Stakeholder
Engagement

Product Quality
and Recall

Climate and
Resource
Efficiency

Business ethics
and competitive
behaviour

Strategic
Philanthropy

Diversity and
Inclusion

Waste
Management

Talent
Development
and
Recruitment

Health and
Safety

Employee
Engagement
and Satisfaction

Influence on business success

Human Rights

Community

Environmental

Governance

In FY16, Ansell conducted a materiality mapping study to determine the sustainability issues most important to Ansell’s stakeholders and that have the greatest influence on business success.
While Ansell is cognisant of and addresses all the issues identified on this Materiality Matrix, nine key focus areas, illustrated in the upper right quartile, have received the greatest attention in
FY17. These nine key focus areas are firmly embedded in our protection mission and represent both risks and opportunities. In FY17, we developed a process of governance and made progress in
implementing actions to address gaps and enhance strengths in these areas but we know that we still have more work to do. Long-term goals will be established and shared in FY18 as we
continue our journey to greater sustainability.

ANSELL LIMITED ANNUAL REPORT 2017

Corporate Social Responsibility & Sustainability Report
continued

Human Rights
Starting with ethical leadership and continuing along our value chain,
Ansell is committed to respecting human rights as established in the
United Nations Guiding Principles on Business and Human Rights.

The Code of Conduct outlines the options
available to all Ansell employees to report
concerns and seek advice without fear of
retaliation, and provides information on
the additional obligations of supervisors
and managers.

Our People and Human Rights
Ansell operates with a fundamental
respect for the people we employ, do
business with, and interact with along
our value chain and in accordance with
local and country governance. In recent
years, we have made progress on our
sustainability journey on some important
issues, most notably the adoption by the
Board in FY16 of the Ansell Human Rights
Statement (which can be found online at
http://www.ansell.com/en/About/
Corporate-Responsibility/About.aspx)
in accordance with the UN Guiding
Principles on Business and Human Rights.

The adoption of the Ansell Human Rights
Statement is a call to action for all of
us at Ansell as we strive to create open
and inclusive workplaces where human
rights are respected and all employees
are valued.

In FY17, we conducted Human Rights Impact
Assessments at manufacturing plants in
Malaysia, Sri Lanka and Mexico, along with
our third-party partner BSR. Human rights
risks impacting production workers were
identified through this assessment and from
reviews by stakeholders in civil society and
Ansell has developed policies and actions to
mitigate these risks.

“After successfully launching a number of
sustainability initiatives during the first year
of our partnership, Ansell has once again
demonstrated its leadership in their industry
sector by undertaking a Human Rights
Impact Assessment to identify, prioritise
and remedy human rights impacts across
its value chain, moving the needle forward
on its commitment to sustainable business
practices.”

Laura Gitman
Senior Vice President, BSR

A key finding of the Human Rights Impact
Assessment concerned production
employees working excessive hours.
In response to this issue, the Human
Resources department implemented
online tracking for employee time,
attendance, leave and hours of work.
This online system went live in June 2017.
Overtime hours are now more closely
monitored, with monthly reports from
the manufacturing plants shared with
the head of Human Resources and the
Executive Leadership Team, and summary
reports provided at Board level.

Additionally, Ansell participated in human
rights workshops during FY17 and is in the
process of updating and standardising our
policies to be more forward looking on
human rights issues facing our business
today and in future.

Ansell meets or exceeds minimum
labour standards and remuneration
for its manufacturing organisation and
works to ensure that its employees
are adequately rewarded for their
contributions at, or in most cases,
above the prevailing market-rate.

Ansell Code of Conduct
The global Code of Conduct is the
foundational policy for the high level of
ethical behavior expected by each Ansell
employee. Along with other significant
policies such as the Ansell Corporate
Responsibility Policy and the Modern
Slavery Statement, the Code of Conduct
can be found online at http://www.ansell.
com/en/About/Corporate-Responsibility/
About.aspx as well as on the employee
Intranet.

The Code of Conduct explains Ansell’s
fair employment practices. We respect
workers’ rights to freedom of association
as well as collective bargaining in all our
businesses. Ansell further ensures freedom
of movement for its contract workers.
Ansell has a firm policy against child
labour and verifies the ages of workers
in its operations.

Supplier Accountability
Ansell expects the same degree of respect
for human rights from our suppliers. We
expect that suppliers will comply with all
applicable laws and regulations in the
manufacture and distribution of our
products, and in providing us their
services.

All suppliers are required to review and
add their signature to the Ansell Supplier
Code of Conduct (which can be found
online at http://www.ansell.com/-/media/
Corporate/MainWebsite/About/Corporate/
Corporate-Governance/Supplier-Code-of-
Conduct.ashx?la=en).

We require that all material direct
suppliers of Ansell products whose
contracts with our Company exceed
US$100,000 comply with our Third-Party
Social Accountability Policy. These
suppliers must demonstrate their
compliance with this policy at Ansell’s
request, and may be subject to audits
and self-assessments.

In FY17, Ansell began working with its
partner Sedex, a not-for-profit association,
on a process to assess risk within our supply
chain, verifying the ethical practices of
Ansell suppliers, and identifying areas of
strength and improvement within the
Company’s supply chain.

“Ansell’s valued membership of Sedex
enables them to collaborate with their
global supplier base on responsible sourcing
practices. We are delighted to support
Ansell in their continued strengthening of
CSR performance, and to support them, as
with all our members, with their continuous
improvement programs.”

If you are viewing this report electronically, click or tap the image above to see what
Ansell employees think about Human Rights.

Jonathan Ivelaw-Chapman
CEO, Sedex

ANSELL LIMITED ANNUAL REPORT 2017Corporate Social Responsibility & Sustainability Report
continued

Human Rights Day
On December 10, 2016, Ansell employees
around the world commemorated Human
Rights Day, the day on which, in 1948, the
United Nations General Assembly adopted
the Universal Declaration of Human
Rights. Ansell employees demonstrated
their belief that human rights are those
basic rights inherent to all human beings
that form the foundation for freedom,
justice and peace, and which apply
equally in all countries.

From ‘being treated fairly and with respect
and dignity’ to ‘having a fair say without
discrimination,’ Ansell employees shared
their beliefs via videos responding to the
question, “What matters most to me about
Human Rights?”

Human Capital Management
The Ansell Human Resources Committee,
chaired by a member of the Board of
Directors, has oversight for the
management of people resources at
Ansell. Employees are at the core of our
business success and we focus significant
resources on workforce acquisition,
workforce management and workforce
optimisation company-wide. People risks
updates are provided to the Board
regularly through the Risk Committee,
chaired by a member of the Board of
Directors. The Executive Leadership Team
and the Board Risk Committee provide
oversight for the actions and results of the
CSR Steering Committee at Ansell.

Programs, policies and procedures
are in place to nurture employee
engagement. In FY16 Ansell launched a
global onboarding program to increase
retention and expanded the program to
Ansell manufacturing facilities in FY17.
Responding to employee feedback from
the 2015 Employee Engagement and
Culture Survey, Ansell launched and
expanded training and management
programs in FY 17 to enable employees
to develop their professional goals and
support their ability to contribute
effectively to the organisation.

Recruitment, Talent
Development and Retention
At Ansell, we are building a strong
global leadership foundation anchored
around the Company’s core Leadership
Competencies. We are introducing new
programs and expanding existing
programs to better develop Ansell people,
those individuals around the world who
rise to the challenges of meeting the
Company’s evolving business needs daily.

Leadership Competencies encourage
employee engagement and frame the
commitments we make to Ansell’s
workers, customers, consumers and
shareholders. Building on the 2015
Employee Engagement and Culture
Survey, several new programs for
employees at various levels within
the Company have been introduced to
increase employee productivity while
reinforcing existing skills. At Ansell,
we’re building leaders.

Demonstrating the
Ansell Values of

Integrity
Trustworthiness
Creativity
Involvement
Passion
Agility
Teamwork
Excellence

through an Innovative and
Engaging Culture where
our leaders are

People Oriented
Bringing out the best in others to work
collaboratively in a global environment

Candid & Transparent
Speaking openly with respect for all

Decisive
Taking action with good judgement

Global & Long-Term Oriented
Creating a compelling future
and destination

Growth focused
Innovating to be faster, better, smarter

Proactive
Initiating and driving change

Risk Tolerant
Taking calculated risks for
disruptive change

ANSELL LIMITED ANNUAL REPORT 2017Corporate Social Responsibility & Sustainability Report
continued

"Being a part of Ansell's Global
Management development program has
been an amazing experience! As a leader,
we challenge ourselves to develop our
managerial style to help our employees
to be high performers, foster employee
engagement, and create a good
collaborative working environment.
The GMD has helped me to achieve
these objectives."

Ornsuma Phatthanasing
Sr Analyst, Finance Lat Krabang

Recognition by Development
Feedback from the 2015 Employee
Engagement and Culture Survey indicated
that employees were not receiving
appropriate recognition (beyond pay and
benefits) for their contributions and
accomplishments. This half-day program
was created for all people managers
around the world, led by production line
managers in partnership with Human
Resources. Eighty percent of all Ansell
people managers have completed
the program and the 2017 Employee
Engagement and Culture Survey
showed significant improvement
in that specific survey item.

Ansell360 Feedback
Ansell360 is our customised 360 feedback
program. The approach leverages the
rigor, validity and reliability offered
through the technology provided by the
Center for Creative Leadership. The
Ansell360 is also driven by Ansell’s seven
Leadership Competencies. Employees
who participate in the Ansell360 receive

comprehensive development feedback
aligned to our Leadership Competencies.
To date, nearly 150 leaders, including the
Executive Leadership Team, have
participated in the Ansell360 process.

Corporate Athlete
Ansell has partnered with Johnson &
Johnson’s Human Performance Institute
to deliver the Corporate Athlete program.
This one-day program, which is facilitated
by Ansell, focuses on comprehensive
energy management. By integrating the
sciences of performance psychology,
exercise physiology and nutrition, Ansell
is training employees to effectively
maximise their energy. In FY17, we
delivered the program twice and received
outstandingly positive feedback. We plan
to deliver 12 additional sessions in FY18.

Ansell University provides a way for
employees to balance life, work and
professional development. In FY17,
employees completed just over 10,000
online learning modules anchored around
the Ansell Leadership Competencies.

The most-accessed trainings in FY17
included instructor-led Corporate Athlete,
Recognition by Development, Global
Manager Development and Global
Supervisor Development.

Lost Time Injuries (LTIs) and Medical Treatment Injuries (MTIs) per 100 employees
per annum. These figures continue to be at historically very low levels.

0.75

0.5

0.25

7
0
Y
F

8
0
Y
F

9
0
Y
F

0
1
Y
F

1
1
Y
F

2
1
Y
F

3
1
Y
F

4
1
Y
F

5
1
Y
F

6
1
Y
F

7
1
Y
F

LTI history (rolling 12 months at 30 June)

MTI history (rolling 12 months at 30 June)

This chart is current as of 30 June 2017.

Global Supervisor Development
Early in FY17, we set out to create an
Ansell-customised leadership development
program targeted primarily at people
managers in the plants. Leveraging input
from many of those supervisors as well
as senior leaders, we crafted a 6-day
leadership program which is delivered
over a 6-month period using a blend of
classroom and experiential learning. The
Supervisor program covers leadership
fundamentals: coaching, delegating,
motivating, performance management
and communications. The program was
piloted at the Bangalore plant and then
delivered in Thailand. In FY18, the program
will expand to manufacturing plants in
Malaysia and Sri Lanka.

Global Manager Development
More than 27 sessions have been held
around the Ansell world, training over
500 managers. This interactive and
engaging learning experience strengthens
the ability of managers to lead and coach
direct reports and to collaborate with
cross-functional teams in a way that
energises and motivates them to higher
levels of performance. Managers learn
foundational skills that are key not
only to the growth of Ansell but to
each manager’s own professional and
personal development as well.

ANSELL LIMITED ANNUAL REPORT 2017

Corporate Social Responsibility & Sustainability Report
continued

Most viewed eLearning courses in
FY17 included Distracted Driving,
Office Ergonomics, Unconscious Bias,
Comprehending Financials: A Guide to
Financial Statements, Gender Dynamics
& Talent Development and LinkedIn’s
‘Rock Your Profile,’ as well as Ansell
Code of Conduct, Internet Security and
other mandatory trainings.

Overall, Ansell’s employee engagement
score increased two percentage points,
to 63%, demonstrating that the initiatives
we put into place are having an important
impact. In addition, Ansell’s engagement
score is significantly higher than the
benchmark for global manufacturing
companies. Ansell is committed to
developing key areas of focus, continuing
to progress in leading our industry by
putting people first.

Employee Health and Safety
As a manufacturer of personal protection
equipment, Ansell maintains a sustained
focus on EH&S and holds a commitment to
a high-level safety and risk management
performance on behalf of our employees
and contractors around the world. Injury
and illness statistics continue at ‘World
Class’ levels and favourably compare to
competitors and industry safety leaders.

Safety areas surveyed to date include Work
at Heights, Lock Out-Tag Out, Safeguarding
of Machinery, and Hazardous Substances.
The methodology requires completion
of a survey, identification of action items
to overcome performance gaps, and
implementation of the action items. All
Executive Leadership Team and plant
meetings at Ansell now begin with a
moment dedicated to safety awareness.

In May 2016, however, Ansell experienced
a loss of life accident at its manufacturing
facility in Thailand. In addition to
supporting the family of the deceased,
Ansell responded by reviewing its safety
training policies and procedures and by
reinforcing safety awareness for its
employees worldwide.

In FY17, to prevent future serious injuries
and fatalities, Ansell’s Risk Management
leadership prioritised 12 high risk areas
and has initiated a program to focus
special attention on a new safety area
every 120 days.

During Safety Month in June 2017,
safety trainings and awareness building
initiatives were further highlighted at
Ansell locations around the globe as
well as online, through Ansell University.

Additionally, in FY17, in our commitment
to safeguard workers and protect the
Company’s business assets, Ansell
spent US$0.9 million to install new
fire protection systems or upgrade
existing fire protection systems at
its manufacturing facilities.

Employee Engagement
In FY15, Ansell completed its first ever
all-employee engagement and culture
survey. Responding to the feedback
we received, Ansell launched several
initiatives ranging from leadership
development training to structural
mechanisms to diversity initiatives.

In FY17, Ansell completed its second
I AM ANSELL Employee Engagement and
Culture Survey of our 15,000+ member
workforce. An impressive ninety-one
percent of employees responded to the
survey and let their voices be heard.

ANSELL LIMITED ANNUAL REPORT 2017Corporate Social Responsibility & Sustainability Report
continued

Travel Alert System
At Ansell, employee safety is our highest
priority. In FY17, Ansell launched a risk
management initiative empowering
employees to travel with confidence and
receive important updates. As part of a
new Ansell risk management program we
have partnered with an industry-leading
travel risk management company, to
ensure greater confidence, both at home
and when traveling abroad, by providing
security alerts, travel information and
health updates via a mobile app.

Employee Turnover Data FY17

Gender

FY16
(%)

FY17
(%)

Turnover

Male staff

18.0

Turnover

Female staff

18.8

23.0

22.4

Total
Turnover

18.4

22.7

Some degree of employee turnover can
be attributed to enhanced automation and
new technology that reduces the number
of employees required for manufacturing
processes. To counter increased employee
turnover not attributed to these workplace
efficiencies, specific remedies have been
placed into action.

An employee onboarding program,
introduced in FY16, has been expanded
to manufacturing facilities to enhance
both integration to Ansell and employee
retention. A full benefits review has taken
place in Malaysia with changes in FY18
to better align several benefits to market
practice. Compensation for production
workers in Mexico was reviewed, resulting
in some adjustments. Mexico and other

plants have had employee engagement
activities including enhanced training,
including physical therapy exercises, as
well as monthly social events such as
Mother’s Day celebrations, picnics and
sporting contests.

All new employees are assigned a
‘buddy’ to support the new hire through
this transition. Human Resources Business
Partners conduct ‘Walk and Talks’ at each
site, communicating with workers on the
plant floor. Feedback is summarised to
the management team, as input for
corrective actions.

Turnover status is the topic of a monthly
review with each local management
team. Workers leaving Ansell are asked
to participate in an exit interview, and
this feedback is also used for corrective
action. A worker referral program rewards
employees who introduce a friend or
colleague to Ansell, who is hired, and
helps to maintain a pipeline of potential
new hires.

Diversity and Inclusion
Companies that lead in performance have
diverse workforces, supporting the belief
that achieving equality and empowerment
for women in the workplace makes good
business sense. In FY16, the Board
confirmed its strategies designed to

Creating Better Gender Balance

Women in Leadership
Percentages at Ansell

Non-Executive Directors

Executive Leadership

increase diversity. As part of this drive,
the Board agreed on gender diversity
objectives to be achieved by 2020.

While the number of women leaders at
Ansell remained essentially flat between
FY16 and FY17, several new programs
have been introduced to improve gender
diversity at all levels and especially within
the Company’s senior leadership ranks.
Ansell also maintains a robust pipeline of
high-potential women who have the
capacity and desire to take charge of
positions of increasingly higher
responsibility as they become available.

Mentorship Program for
Ansell Women
In FY17, Ansell worked to enrich the
gender diversity profile of our management
employees with the launch of a new
mentorship program in North America
which attracted 55 female managers
seeking mentorship, and 35 mentors.

Aimed at increasing the number of
women in top jobs, this mentorship
program is being replicated in other
Regions at Ansell. Through mentoring,
women at Ansell are being motivated,
supported, challenged and inspired
as they develop personally and
professionally.

FY16
(%)

FY17
(%)

Roles

Board of Directors

29.0

Director level and above

19.0

Management

Manager level through Associate Director

32.0

29.0

19.9

32.4

ANSELL LIMITED ANNUAL REPORT 2017Corporate Social Responsibility & Sustainability Report
continued

International Women’s Day
#BEBOLDFORCHANGE was the theme of the 2017 International Women’s Day on March 8,
2017, a global day celebrating the social, economic, cultural and political achievements of
women. This annual observance also marks a call to action for accelerating gender parity.

Ansell employees around the world used the occasion to speak up about their own
ideas on how to progress gender parity. Using brief handheld videos, employees
spoke movingly about their own personal beliefs and how they will commit to
taking individual actions to increase gender parity at Ansell.

Click on the images below to see what Ansell employees think about women’s rights.

Alin Popesu
Victoria Gardens, Australia

Christina Foo
Melaka, Malaysia

Suraiya Yaacub
Cyberjaya, Malaysia

John Martensen
Reno, Nevada USA

“If you set a flexible and inclusive culture that emphasises productivity over
presenteeism (being in the workplace but not fully functioning because of illness,
stress or other distraction), that ethic will quickly filter through.”

Suraiya Yaacub
Video Participant

Breakthrough Leadership for
Women
In FY17, a groundbreaking training course
was offered to 22 Ansell women working
at different levels of the Company and
around the globe.

Highly interactive, the program enhanced
each woman’s skillset to provide
leadership in her current position,
expanded each woman’s understanding
of the requirements for leadership at
higher levels, and prepared participants
to develop and demonstrate their ability
to lead as they move forward at Ansell.

The training included sections on Career
Enablers for Leadership, Foundation of
Business Acumen, Speaking the Language
of Power, Strategic Relationships, PIR:
Performance of the Business, and Image,
Exposure, Mentoring and Action Planning.
Ansell women identified the Missing
33%™, as Ansell consultant Susan
Colantuono calls that missing 33%
of a woman’s background that keeps
her from reaching the top.

Women’s Leadership Forum
Celebrating its two-year anniversary, the
Women’s Leadership Forum (WLF) at
Ansell is addressing issues fueling the
leadership gender gap by helping to
provide women with the tools needed to
develop in preparation for larger roles.

FY17 initiatives include:

• Launching WLF groups in Australia, Brazil,

EMEA, Malaysia and North America

• Conducting learning sessions and

presentations around the world, including
topics such as Unconscious Bias, Speed
Networking, and presentations by
external speakers and members of
Ansell’s own Executive Leadership Team

• Providing opportunities for mentoring,

financial acumen training, and
professional development and growth

• Female Board members held informal

learning sessions at each hub.

ANSELL LIMITED ANNUAL REPORT 2017Corporate Social Responsibility & Sustainability Report
continued

Financial and Business
Acumen Training
In FY17, under the auspices of the
Women’s Leadership Forum, employees
in North America, Australia and Brussels
were invited to join an interactive
Financial & Business Acumen Training
Workshop. Hundreds of Ansell employees
– both men and women – took advantage
of the opportunity to better understand
how Ansell business drives and is driven by
strategy and finance. In FY18, the training
will be extended to Malaysia, with plans
for future presentations at additional
Ansell sites.

Positive Response to
HERhealth Pilot
Workers have embraced the HERhealth
pilot that launched earlier this year at
Ansell plants in Xiamen, China; Bangalore,
India; and Dong Nai Province, Vietnam.
HERhealth, which was created by Ansell’s
partner BSR in 2007, brings important
health information and services to women
in the workplace.

HERproject programs, which includes
HERhealth, have reached over 500,000
women workers around the world, 80% of
whom report influencing others, leading to
approximately one million beneficiaries.

Over 90% of female employees (and
many men!) in the three Ansell plants
have engaged in HERhealth education.
Ansell employees trained by HERhealth
as peer instructors led sessions on
general and reproductive health, diet,
exercise, preventative care, family health
and health misconceptions. Female
workers also gain access to important
health screenings.

Sessions take place during working hours
and have strengthened communication
and comradely among workers. The
program will continue, educating new
female hires.

Thirty workers in Xiamen, China formed the new Happy Jogging Club.

Workers in Bangalore, India learn the importance of starting the day with a healthy breakfast.

A health awareness assessment being conducted with operators in Dong Nai Province, Vietnam.

ANSELL LIMITED ANNUAL REPORT 2017Corporate Social Responsibility & Sustainability Report
continued

Community
Ansell steps in to lend a helping hand when disaster or disease strike. Ansell employees share a
commitment to building a better life for people in our hometowns and to creating a safer, healthier
world. It’s a part of our culture, one that is helping to make us an employer of choice.

Corporate Philanthropy and Community Engagement

Ansell Global Partnership with
Operation Smile
In FY16, Ansell announced a global
partnership with Operation Smile, a
non-profit organisation providing
corrective surgery to children born with
cleft palate, cleft lip and other facial
deformities, bringing smiles to the faces of
underprivileged kids. Our support included
the donation of nitrile examination gloves
and sterile marking pens.

In FY17, Ansell employees went beyond
product donations to the heart of the
cause, volunteering to assist on a medical
mission to West Bengal, India. Joining
Team Operation Smile were Anna
Lobanova, Director of Emerging Markets
for EMEA/APAC region, and Rajat Khosla,
Marketing Manager for Indian Sub-
Continent.

Earth Day Activities Across Ansell
Demonstrating a commitment to
environmental stewardship, several
Ansell manufacturing sites shared green
initiatives to celebrate Earth Day. Ansell
Lat Krabang and Ansell Korea organised
Big Cleaning Day and educated employees
on individual actions that have
environmental impact. Ansell Thailand
highlighted a program to recycle ash
waste from its biomass boiler into organic
fertiliser and soil conditioner. Ansell Vina
switched incandescent lighting to LED
lighting, reducing energy consumption by
60%. Ansell Suratthani eliminated 1.1 tons
of CO2e annually by adding thicker
thermal insulation on its dipping lines.
Blowtex Aluminio, in Brazil, upgraded its
effluent treatment plant to ensure the
quality of the discharge and helping
protect the local ecosystem.

Glove Donation in Northern Peru
In March 2017, Peru suffered its worst
flooding in decades, in which 94 people
lost their lives. More than 115,000 homes
and 100 bridges were damaged, and over
700,000 people were left homeless in 12 of
the country’s 25 regions. Rain storms burst
river banks, caused mudslides, closed
roads and forced schools and official
buildings to close. ActivArmr® gloves were
welcome donations for rescue brigades
supporting the city of Piura.

ANSELL LIMITED ANNUAL REPORT 2017Corporate Social Responsibility & Sustainability Report
continued

Helping Our Own in Suratthani
From December 2016 through January
2017, devastating floods impacted more
than 1.72 million people in Thailand.
Roads and bridges were washed out and
rail service was inoperable. The homes of
many Ansell Suratthani employees were
flooded. To help their colleagues,
employees from Ansell Lat Krabang rallied
together to donate more than a ton of rice
plus 7,750 pairs of gloves to help the flood
victims. Throughout a two-week period,
the Suratthani management team
monitored the situation and helped move
affected employees and their families,
often by boat, to safety.

A Makeover at Ampara Gonagala
School in Sri Lanka
With the intention of creating a better
learning environment for isolated
Gonagala School in Ampara, Sri Lanka,
the Global Engineering team from Ansell
Lanka helped to meet the school’s goals to
restore the schoolhouse after it was hit by
a series of natural disasters and a 30-year
war. The Global Engineering team
organised an effort to refurbish the school
library, donated stationary, educational
supplies and bookbags for each student,
plus sports equipment and a sound system
for the school’s auditorium. Members of
the Ansell team also conducted a
Mathematics and Science seminar.

A Piece of Cake for a Cause
in Portugal
Each year, Ansell Portugal employees pick
up the challenge to don their “chef’s” hats
and bake for a cause close to their hearts
and communities. In FY17, Ansell Portugal
supported ‘To Believe,’ an association
of parents and friends of children with
cancer. Donations included a wide
assortment of home appliances,
school supplies and basic needs.

Product Donations
In the right hands, a pair of gloves can
do extraordinary things. In FY17, Ansell
donated more than 200,000 pairs of gloves
to long-time charitable partner Direct
Relief. These product donations were
used to help people in need following
natural disasters and disease outbreak
in Argentina, Armenia, Dominican
Republic, Guatemala, Haiti, United
States and Venezuela.

Ansell is proud to support Direct “Reliefs”
mission to “improve the health and
lives of people affected by poverty or
emergency situations by mobilising and
providing essential medical resources
needed for their care.”

I AM ANSELL Employee
Engagement and Culture
Survey Donation
CEO Magnus Nicolin once again posed
a challenge to Ansell workers tied to
employee survey participation.

Once again surpassing the top percentage
of participation, Ansell donated US$25,000
to Direct Relief in FY17.

Trees For Our Future
In FY17, employees Ansell-wide celebrated
Earth Day. To mark Earth Day, Ansell
Lanka and Ansell Textiles Lanka embarked
on a project that engaged each employee,
all working together to create an “Ansell
Protected World.”

Commemorating Earth Day in FY17, the
Lanka Management Team distributed
more than 3,400 fruit trees, one to each
employee, who in turn planted the trees
around their homes. These trees will yield
both shade and fruit, and represent
Ansell’s company wide efforts to offset
CO2 levels in the environment.

During the week leading up to Earth Day,
employees participated in awareness
building sessions on climate change and
learned simple “life hacks” to reduce their
individual impact on the environment.

ANSELL LIMITED ANNUAL REPORT 2017Corporate Social Responsibility & Sustainability Report
continued

Environment
We are making smart
environmental decisions for
the future and implementing
new climate and resource
efficiencies as we manage
increased productivity with
a commitment to safety and
sustainability on behalf of our
employees and stakeholders.

Ansell is a world-class manufacturer and
in FY17 operated 19 manufacturing sites
throughout Asia, the Americas and Europe,
and has an extensive third party supply
chain. Ansell is committed to sustainable
practices in its manufacturing processes
and supply chain, demonstrating its
environmental stewardship and effectively
managing the risk of its operations.

Environmental Management
Ansell manages its environmental impact
with policies and systems in place to
mitigate risk commensurate with its
business, specifically in the areas of
water management, hazardous waste
management and involvement with toxic
materials. The Ansell Board and its Risk
Committee continuously monitor the
key risks of the Company’s operations
worldwide, some of which are outlined
below.

GHG Strategy and Targets
Ansell invests its human and capital
resources to create greenhouse gas
(GHG) efficiencies by acquiring or
upgrading to new technologies and
equipment, adopting new environmental
standards, and holding our employees
to best practices and continuous
improvement in terms of environmental
stewardship.

We know that we can’t improve what we
don’t measure, so an important step in
FY17 has been to establish standardised
online measurement of GHG production
in our plants, to the degree of ‘by machine’
or ‘by process area’ and ‘by energy type’.
This new online monitoring system has
replaced manual tracking at Ansell plants
in Korea, Malaysia and Thailand. Online
monitoring is currently in the process of
being implemented in Sri Lanka and will
then roll out to other Ansell manufacturing
locations.

Management
infrastructure

People

Energy
Strategy

Technology and Capex

Disaster Preparedness and Prevention
Ansell’s major risks and mitigation actions relating to its material business risks are outlined
on pages 27 and 28 of the Annual Report under the Operating and Financial Review section.

Energy KPIs help our managers to track
improvements across Ansell manufacturing
sites, with a 5% YOY improvement goal for
overall energy metrics. Global monthly
reporting ensures that operational and
engineering actions are aligned with
Ansell’s energy strategy.

Ansell has developed a program
for qualifying secondary and/or
alternate suppliers for key supplies
and/or materials, and product can
be sourced from alternative product
facilities or warehouses.

Ansell will continue to invest in
people training and education,
building management infrastructure
and technology to create greater
energy conservation awareness
and improve energy efficiency.

GHG Third-party Validation
Ansell is playing a more active role in
several carbon-emission and energy
reduction projects, and in FY17, provided
Company data to the Carbon Disclosure
Project, a global disclosure system
that enables companies like Ansell
to better measure and manage their
environmental impact.

Also in FY17, Ansell obtained third-party
certification of its GHG inventory by
Lloyd’s Register LRQA, in accordance with
the requirements of ISO 14064-3: 2006
and ISO 14064-1: 2006.

Ansell has set new standards to ensure
that manufacturing equipment is operated
at optimal efficiency, and that energy
efficiency is a consideration for all new
purchases. Energy meters are installed
as part of each new machine installation,
and we make sure that energy efficiency
performance is visibly displayed at each
plant location to engage employees
and drive improvement.

ANSELL LIMITED ANNUAL REPORT 2017Corporate Social Responsibility & Sustainability Report
continued

Climate Change
Resource Efficiency
This section reviews Ansell’s use of
key resources. Beginning in FY17, the
calculation of CO2 emissions has been
reconfigured for FY16 and FY17 and is
based on ISO 14064-1 standards, which
provide for qualification and reporting of
greenhouse gas emissions and removals.
The change to the new ISO 14064 method
has resulted in a greater number of inputs
being included in the CO2 emission
calculations. This has caused a reported
increase for the FY16 base year, despite
emissions falling as demonstrated in the
graphical analysis.

New Biomass Boiler Will be
the Third for Ansell Lanka
During FY17, Ansell invested US$2.7 million
to install a third biomass boiler to meet
expansion at its Biyagama manufacturing
plant in Sri Lanka. The new 12.5MW heater
is Ansell’s most technology advanced, and
is designed with a built-in heat recovery
process and online cleaning systems.

Biomass boilers use bio-fuels to provide
clean and renewable energy. Green-thinking
companies use bio-fuels to mitigate the
impact of manufacturing processes by
reducing emissions of greenhouse gases
as an offset of fossil fuels.

Greenhouse gas emission reduction
forecast from the new biomass heater
is 13,000 TCO2e. Total emission reduction
for the three biomass heaters at plants
in Sri Lanka and another in Thailand is
forecast to be 66,000 TCO2e per annum.
Ansell biomass boilers are fueled by
wooden chips. The wood ash generated
by this combustion is collected, stored
and returned to the earth as a nutrient-
rich soil additive and used in the
manufacture of bricks and paving blocks.

ISO 14001 Certification and
Waste Management
Ansell manufacturing sites, except for
Blowtex Alumino in Brazil and Ansell
Xiamen in China, are certified to the ISO
14001 Environmental Management System
in developing and implementing waste
management and all Ansell facilities meet
local regulations and requirements. For a
manufacturer to hold ISO certification, the
site must have an acceptable environmental
management system in place to manage
its responsibilities in that area. Ansell’s
Microgard facility in China will receive
ISO 14001 certification in early FY19.

Global CO2 Emissions Per Production Value

M
$

e
u
l
a
V
n
o
i
t
c
u
d
o
r
P
/
e
2
0
C
n
o
T

450

400

350

300

250

200

150

100

FY13

FY14

FY15

FY16

FY17

Energy Consumption Per Production Value

)

M
$

e
u
l
a
V
n
o
i
t
c
u
d
o
r
P
/
u
t
b
m
m

(

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0

FY13

FY14

FY15

FY16

FY17

Water Use Per Production Value

)

M
$

e
u
l
a
V
n
o
i
t
c
u
d
o
r
P
/
3

(

12.0

10.0

8.0

6.0

4.0

2.0

0.0

CO2 Emissions Commentary

As indicated, the change to the new
ISO 14064-1 standard has resulted in
a restatement of FY16 data and a new
calculation methodology for FY17. Had
the new standard not been adopted,
the data points under the previous
methodology would show a continued
decline. By way of example, FY15 to
FY16 declined by 1.4%.

Energy Use Commentary

The energy consumption metrics
increased in FY16 due to the
integration of recent acquisitions,
which includes the higher value
adding but also more energy intensive
yarn technology products.

Water Use Commentary

Water use has been steadily increasing
due to the shift towards higher water
intensive products such as Fortix® and
synthetic medical gloves. Ansell has
taken measures to improve water use
efficiency by installing a 500m3 a day
water recycling plant in Sri Lanka.
Furthermore, water spray nozzles for
our Fortix® manufacturing processes
have also been installed. The
improvements seen in FY17 are
anticipated to continue going forward.

FY13

FY14

FY15

FY16

FY17

Ansell’s significant technology investment in recent years is resulting in improved resource
efficiency per production value, and are detailed on the graphs relating to CO2 and energy
consumption. Water consumption per production value is maintained despite product mix
shifts towards higher water intensive products.

Ansell Launches Reforestation
Project in Sri Lanka and Reaps
Carbon Reduction Benefit
Planting the first of thousands of trees
in a multi-year commitment commencing
in FY18, the Ansell Bio-Link will form a
biodiversity corridor within the overall
Hiniduma Bio-Link project, linking two
large existing rainforests, and will become
the country’s first ISO-140642 certified
Carbon Insetting Project.

Image credit, Carbon Consulting Company.

Carbon insetting, a climate-conscious
business practice, enables Ansell to
contribute to sustainable agriculture
in Sri Lanka, where it operates two
manufacturing facilities, Ansell Lanka
and Ansell Textiles Lanka. The project
will also create a source of income for
local farmers who maintain the trees
and harvest their fruit.

ANSELL LIMITED ANNUAL REPORT 2017

Corporate Social Responsibility & Sustainability Report
continued

Energy Down Case Studies

Water Efficiency
In FY17, Ansell Lanka began a
reverse osmosis pilot to reuse
100m3 of waste water per day. In
early FY18, a rain water harvesting
feasibility study will be conducted
to continue identifying innovative
new ways to better manage
natural resources.

Heat Recovery
In FY17, two new projects were completed
which capture expended heat from plant
chimneys. In Lanka Biyagama, following
green energy practices, recovered heat is
being used to pre-heat water returned to the
manufacturing process, and is forecast to
reduce GHG emissions by approximately 1,400
TCO2e annually. A pilot project to recover heat
from waste water was also completed at Lanka
Biyagama. This pilot is now being rolled out to
three plants in Malaysia and Thailand, and will
save more than 300,000 liters of
fuel oil, reducing GHG emissions by
800 TCO2e per annum.

Thermal Energy Efficiency
Improvements in oven insulation in
the manufacturing lines in
Bangalore, India will save 200,000
kWh per year, and reduce GHG
emissions by 160 TCO2e annually.

Electrical Energy Efficiency
New high efficiency chiller systems
were installed at plants in India
and Thailand. These new systems
are expected to save 2,210,000
kWh per annum, and reduce GHG
emissions by 1,430 TCO2e per year.

4242

ANSELL LIMITED ANNUAL REPORT 2017Corporate Social Responsibility & Sustainability Report
continued

Governance
Ansell is committed to good corporate governance, recognising that
an effective and efficient governance framework promotes fairness,
transparency and accountability.

The Board, together with the Executive
Leadership Team, are leading by example
to ensure the highest level of ethical
behaviour is adopted throughout Ansell.
The Company’s governance framework is
driven through the organisation with
continual communication, training,
compliance and ethics.

A report on the Company’s Corporate
Governance practices for the year ending
30 June 2017 and a checklist summarising
the Company’s compliance with the ASX
Corporate Governance Principles and
Recommendations (3rd ed.) (Principles)
can be found at www.ansell.com.

Some of the key governance elements are
outlined below:

Board and Director Responsibilities
The Board has ultimate responsibility
for setting policy regarding the business
and affairs of the Ansell Group for the
benefit of the shareholders and other
stakeholders, and is accountable to
shareholders for the performance of
the Company.

The Board oversees the Chief Executive
Officer and senior management, ensuring
that appropriate procedures and controls
are in place and the Company operates
in an ethical manner on a day-to-day
basis. In particular, the Risk Committee
is responsible for the identification,
monitoring and oversight of the
Company’s material risks.

The Board has standing Committees, being
the Audit and Compliance Committee, the
Risk Committee, the Human Resources
Committee, and the Governance
Committee. Each Committee operates
under a specific charter and provides
advice to the Board on specific matters
within the Committee’s remit. The Board
also delegates specific function to ad hoc
Committees of Directors on an ‘as needs’
basis. Refer to the Company’s Corporate
Governance Statement for information
on the members of each Committee.

Board Composition and Succession
The Board relies upon the Board Charter
and the Skills Matrix to ensure that each
Director has the necessary international
experience and business acumen to
oversee Ansell’s diverse global businesses.
The Board annually reviews the
performance of the Board and each
Committee, as well as individual directors
and the Chairman, and requires all
directors (except for the Chief Executive
Officer) to submit themselves for re-
election at least once every three years.
The Board will endorse a retiring director
for re-election only where his or her
performance over the preceding year
meets or exceeds the Board’s expectations.
An external review of the Board is also
completed every three years.

To ensure appropriate and ongoing
renewal of the Board, it is a general policy
that non-executive directors should not
serve for a consecutive period exceeding
15 years, and the Chairman should not
serve in that role for more than 10 years,
contributing to strong corporate
governance.

As some of the Company’s Non-Executive
Directors near the end of their tenure, the
Board recently approved a succession plan
that it believes facilitates the optimal
injection of new skills and thinking, while
retaining the wealth of corporate
knowledge to support the long-term
strategic direction of the Company.

After nearly fifteen years’ service,
Mr Dale Crandall will retire from the
Board at the 2017 Annual General
Meeting. Mr Crandall was appointed as a
Non-Executive Director in 2002 at a time
when the Company required strong and
courageous leadership from the Board
as it worked through the legacy issues
inherited from the restructuring of the
troubled Pacific Dunlop Limited Group.
He has provided insightful guidance,
sound counsel and unwavering support
to the Company throughout the journey
to the profitable and stable Ansell of
today. The Board and the Management
of Ansell Limited wish to acknowledge
the extraordinary contribution that
Mr Crandall has made to Ansell during
his tenure.

ANSELL LIMITED ANNUAL REPORT 2017

ANSELL LIMITED ANNUAL REPORT 2017Corporate Social Responsibility & Sustainability Report
continued

With Mr Crandall’s retirement, Mr William
Reilly will seek election to the Board at
the 2017 Annual General Meeting. Mr
Reilly will bring his 35+ years experience
as an in-house lawyer, 17 years of which
were with Ansell, to the Board in his new
role as a Non-Executive Director. Mr Reilly
was appointed as General Counsel of
Ansell Healthcare in 2000 when it was a
division of Pacific Dunlop Limited,
subsequently becoming General Counsel
of Ansell Limited in 2002. Mr Reilly has
also served with three Chief Executive
Officers and has played pivotal roles
leading many of Ansell’s corporate
strategic and legal initiatives, including
mergers and acquisitions, litigation and
the successful intellectual property
strategy. He has also overseen the Global
Compliance and Risk functions, acted as
interim head of Human Resources, leader
of the Regulatory function and joint
Company Secretary. The Board looks
forward to continued access to Mr Reilly’s
extensive knowledge of the business and
thoughtful counsel as a Director of Ansell.

Mr Ronald Bell has also indicated his plan
to retire from the Board at the 2018 AGM,
after nearly 13 years’ service on the Board.
The Board therefore considered it prudent
to nominate an additional Non-Executive
Director, to ensure a smooth and effective
transition.

Mrs Christina Stercken will, therefore,
also seek election to the Board as an
independent Non-Executive Director.
Mrs Stercken is currently partner at
EAC – Euro Asia Consulting PartG, a
management consultancy firm specialising
in internationalisation strategies, M&A
and operational excellence. Before joining
EAC, Mrs Stercken served as Managing
Director Corporate Finance M&A of
Siemens AG. Among other management
positions within Siemens AG, she was
responsible for the Siemens Task Force
China and Head of Public Sector Business
Unit at Siemens Business Services. She
started her career in Marketing with
BMW Pvt Ltd, South Africa. Mrs Stercken
will bring a broad range of competencies
relevant to the Company’s strategies,
including mergers and acquisitions,
supply chain optimisation and business
building in developing markets.

In February 2017, Mr John Bevan was
appointed as Deputy Chairman of the
Board, and it is intended that Mr Bevan
will succeed the current Chairman,
Mr Barnes, following the 2019 Annual
General Meeting as the Company’s
Chairman.

The Board is confident that with
this well-orchestrated succession plan,
the Company will add new skills and
experience while maintaining continuity
and corporate knowledge.

The Company’s Constitution currently
provides for a maximum of eight
Directors, unless the Company in general
meeting resolves otherwise. Given the
above mentioned Board succession plans,
the Company had intended to seek
shareholder approval to temporarily
increase the maximum number of
Directors to nine, to enable the
appointment of both Mr Reilly and
Mrs Stercken, until Mr Bell’s retirement
at the end of FY18.

While the Board is very comfortable
that the current size of the Board is both
appropriate and optimal at this time, and
has no intention to permanently increase
the size of the Board, the Board have,
however, acknowledged investors’
preference for the Company to allow
for a ‘spare’ seat on the Board and the
Board wishes to maintain flexibility for
succession planning so as to be able to
appoint additional Directors to enhance
and complement the Board’s skill set if
required. The Company is therefore
proposing at the 2017 AGM that, in
accordance with the Constitution, the
maximum of Directors permitted be
permanently increased from eight to nine.
Refer to the Company’s Notice of Annual
General Meeting 2017 for more details.

This year the Company also took the
unusual step of announcing CEO
succession plans. The Board has identified
potential candidates to make up the
next generation senior team and our next
CEO, reaffirming our strong commitment
to developing internal talent

ANSELL LIMITED ANNUAL REPORT 2017Corporate Social Responsibility & Sustainability Report
continued

People
Our people are central to our success.
Ansell recognises 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.

In FY16, the Board endorsed strategies
designed to increase gender diversity and
agreed on gender diversity objectives. The
Board has since committed that Ansell
would aim to have women constituting
50% of its Board by 2020. In FY17, women
made up 29% of the Board (Non-Executive
Directors) and Mrs Stercken’s appointment
at the 2017 Annual General Meeting will
increase this to 38%, demonstrating the
Company’s commitment to diversity.

Further details on diversity in the
Company are provided in the Human
Rights section of this CSR and
Sustainability Report and in our
Corporate Governance Statement
found at www.ansell.com.

Human Rights
Ansell believes that human rights are those
basic rights inherent to all human beings
that form the foundation for freedom,
justice and peace, and which apply equally
in all countries. As a responsible corporate
citizen, Ansell adopted a Human Rights
Statement consistent with the United
Nations Guiding Principles on Business and
Human Rights. Wherever we operate, we
will seek to respect human rights in our
employment policies and practices, our
business operations and our relationships
with stakeholders. Our Human Rights
Statement can be found at www.ansell.com.

Corporate Conduct
Ansell’s Core Values and the global Code
of Conduct constitute the platform for
all activities, serving as a guide to ethical
principles and business conduct at Ansell.
The Code of Conduct applies to Directors,
executives, management and employees
and sets high standards for ethical
behaviour and business practice beyond
complying with the law. The global Code
of Conduct forms part of the induction of
new employees and all employees are
regularly trained on the global Code
of Conduct. In addition, Ansell provides
focus specific compliance training. In FY17,
the Company launched a global online
anti-corruption training for all email-
enabled employees, as well as providing
targeted internet security training.

Stakeholder Engagement
Ansell recognises the importance of
engaging with its stakeholders – which
include employees, customers, investors,
regulators, suppliers and communities.
Ansell keeps its stakeholders updated
through a variety of media such as the
ASX electronic lodgement platform,
periodic updates to shareholders,
discussions with large investor groups
and proxy analysts, and its Annual
General Meeting.

All corporate governance documentation,
including ASX and media releases, are
placed on the Company’s website at
www.ansell.com and periodically updated.

Ansell’s membership with Sedex has
enhanced supplier engagement. Sedex
is a global not-for-profit membership
organisation providing the world’s
largest collaborative platform for
sharing responsible supply chain sourcing
data. Other examples of stakeholder
engagement include ongoing dialogue
with organisations such as Finnwatch,
the Swedish County Council, the British
Medical Association and responsible
corporate sustainability analysis
organisations.

ANSELL LIMITED ANNUAL REPORT 2017Board of Directors

Glenn L L Barnes
Chairman
B Ag Sc (Melb), CPM, FAMI,
FAICD, SF Fin, FRSA

Magnus R Nicolin
Managing Director and
Chief Executive Officer
BA, MBA (Wharton)

John A Bevan
Deputy Chairman
BCom (UNSW)

Ronald J S Bell
Non-Executive Director
BA (Strathcylde)

Appointed Non-Executive
Director in August 2005.

Chair of the Risk Committee
and member of the Audit and
Compliance Committee.

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.

Appointed Non-Executive
Director in September 2005
and Chairman in October
2012.

Chair of the Governance
Committee and a member of
the Human Resources
Committee and M&A
Sub-Committee.

Current Directorships:
Non-Executive Director at
Sydney Children's Hospital
Foundation, Stronghold Pty
Ltd and Barnes Investments
Pty Ltd.

Former Directorships:
Chairman of Australian Unity
Limited (2012 – 2016).

Mr Barnes has over twenty
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 thirty 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.

Managing Director and
Chief Executive Officer since
March 2010.

Current Directorships:
Non-Executive Director at
FAM AB.

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.

Appointed Non-Executive
Director in August 2012
and Deputy Chairman in
February 2017.

Member of the Human
Resources Committee,
Governance Committee and
Audit and Compliance
Committee and Chair of
the M&A Sub-Committee.

Current Directorships:
Chairman of BlueScope Steel
Limited (2014 to present),
Director of Humpty Dumpty
Foundation (2017 to present).

Former Directorships:
Non-Executive Director of
Nuplex Industries Limited
(2015 – 2016) and Alumina
Limited (2008 – 2014).

Mr Bevan was formerly the
Chief Executive Officer and
Executive Director of
Alumina Limited and brings
to the Board extensive
international business
experience. Prior to joining
Alumina Limited, 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.

ANSELL LIMITED ANNUAL REPORT 2017Board of Directors continued

L Dale Crandall
Non-Executive Director
CPA, MBA (UC Berkeley)

W Peter Day
Non-Executive Director
LLB (Hons), MBA (Monash),
FCPA, FCA, FAICD

Leslie A Desjardins
Non-Executive Director
B. Industrial Admin
(Kettering), MS (MIT)

Marissa T Peterson
Non-Executive Director
BSc (MECH), MBA (Harvard),
Hon Doctorate (MGMT)

Appointed Non-Executive
Director in November 2002.

Appointed Non-Executive
Director in August 2007.

Appointed Non-Executive
Director in November 2015.

Appointed Non-Executive
Director in August 2006.

Member of the Audit and
Compliance Committee, Risk
Committee and M&A
Sub-Committee. Special
Advisor for mergers and
acquisitions.

Current Directorships:
Director of Bridgepoint
Education Inc. (2008 to
present) and Endurance
International Group, Inc
(2013 to present).

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 and lead
trustee of The Dodge and
Cox Mutual Funds.

The Board considers
Dale Crandall to be an
independent Director.

Chair of the Audit and
Compliance Committee
and member of the Risk
Committee.

Current Directorships:
Alumina Limited (2014 to
present), Australian Unity
Investment Real Estate
Limited (2015 to present),
Boart Longyear Limited
(2014 to present).

Former Directorships: SAI
Global Limited (2008 – 2016),
Orbital Corporation Limited
(2007 – 2014), Centro Retail
and Federation Centres
(2009 – 2014).

Mr Day was formerly Chief
Financial Officer of Amcor
Limited for seven years, and
Chief Financial Officer and
Executive Director Finance
of Bonlac Foods Limited. He
also has held senior office
and executive positions in
the Australian Securities
Commission (Deputy Chair),
Rio Tinto, CRA and Comalco.
He is also involved with
disability services and
education initiatives. He has
a background in finance and
general management across
diverse and international
industries.

The Board considers Peter
Day to be an independent
Director.

Member of the Audit and
Compliance Committee,
Human Resources
Committee, Governance
Committee and M&A
Sub-Committee.

Former Directorships: Aptar
Group (2012 – 2015) Mrs
Desjardins is an experienced
international finance
executive with a focus on
business performance and
growth. Mrs Desjardins was
formerly a Director of Aptar
Group and Chief Financial
Officer for Amcor Limited.
Mrs Desjardins held various
executive roles at General
Motors Corporation,
including Chief Financial
Officer, General Motors
Holden and Controller for
General Motors North
America. She has extensive
experience in finance,
strategy, government
relations and global
operations. Mrs Desjardins
currently serves on the
Terry Fox Cancer Foundation
Audit Committee.

The Board considers
Leslie Desjardins to be an
independent Director.

Chair of the Human
Resources Committee and
member of the Risk
Committee.

Current Directorships:
Chair of Oclaro Inc. (2011
to present) and Director
of Humana Inc. (2008 to
present) Mrs Peterson
currently runs Mission Peak
Executive Consulting, an
executive coaching and
consulting firm specialising
in helping develop, grow
and scale leaders in the
high technology space.
Mrs Peterson retired from
full-time executive roles in
2006, having spent 18 years
with Sun Microsystems in
senior executive positions.
She has extensive experience
in supply chain management,
manufacturing and quality,
logistics, information
technologies, customer
advocacy and leadership
development.

The Board considers
Marissa Peterson to be an
independent Director.

ANSELL LIMITED ANNUAL REPORT 2017Executive Leadership Team

Magnus Nicolin
Managing Director and
Chief Executive Officer

BA, MBA

Steve Genzer
President and General
Manager Industrial Global
Business Unit

Joe Kubicek
President and General
Manager Single Use Global
Business Unit

BSc, MBA

BA, MBA

William Reilly
Senior Vice President
Corporate General Counsel

BA, JD

Peter Dobbelsteijn
Chief Commercial Officer
EMEA and APAC Region
and Ansell Global Guardian

BMkt

Darryl Nazareth
Senior Vice President
Global Operations and R&D

Neil Salmon
Chief Financial Officer
(Finance and IT)

Jeyan Heper
President Sexual Wellness
Global Business Unit

BS, MS, MBA

BA, ACMA

BA, (Hons)

ANSELL LIMITED ANNUAL REPORT 2017Executive Leadership Team continued

Anthony Lopez
President and General
Manager Medical Global
Business Unit

BS, MS

Debbie Lynch
Chief Human Resources
Officer

BS, MS, PhD

Chrystelle Fontan
Senior Vice President Quality

BS, MS

Francois Le Jeune
Senior Vice President Business
Development and Chief
Commercial Officer Body
Protection SBI

BS, MS, MBA

Mark Nicholls
Senior Vice President
and Chief Commercial
Officer-Americas

BA, LLB (Hons) Melb.

Giri Peddinti
Senior Vice President and
Global Chief Information
Officer

BE, MBA

ANSELL LIMITED ANNUAL REPORT 2017Report by the Directors

This Report by the Directors of Ansell Limited (‘the Company’) is made for the year ended 30 June 2017. The information set out below
is to be read in conjunction with the:

• Remuneration Report appearing on pages 55 to 88.

• Notes 20 and 21 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)

• John A Bevan (Deputy Chairman)

• Ronald J S Bell

• L Dale Crandall

• W Peter Day

• Leslie A Desjardins

• Marissa T Peterson

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 46 and 47.

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

The Company Secretary was Alistair Grant, BA/LLB, LL. M, FGIA until his resignation effective 5 May 2017. Mr Grant was appointed to
that position in October 2013. Mr Grant joined the Company in 2009, and has a legal background. He has held senior positions in the
Corporate Head Office, including the position of Asia Pacific Regional Legal Counsel. Catherine Stribley, B.Com/LLB (Hons), was appointed
as Company Secretary on 18 April 2017. Ms Stribley first joined the Company in 2010, and has held legal positions in both Australia and the
United States, including Senior Counsel and Senior Counsel, IP.

Principal Activities
The activities of Ansell Limited and its subsidiaries (‘the Group’) principally involve the development, manufacturing and sourcing,
distribution and sale of gloves and protective personal equipment in the industrial and medical gloves market, as well as the sexual
wellness category worldwide. In FY17, Ansell operated in four main business segments: Medical, Industrial, Single Use and Sexual Wellness.

Operating and Financial Review
The Operating and Financial Review for the Group for the financial year is set out on pages 14 to 29, and forms part of this Report.

State of Affairs
During the year the Group continued to progress the strategies that have been identified to accelerate growth and create increased
shareholder value. The Operating and Financial Review provides additional information on the Group’s 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 29 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.

ANSELL LIMITED ANNUAL REPORT 2017Report by the Directors continued

Dividends and Share Issue
The final dividend of US 23.5 cents per share (unfranked) in respect of the year ended 30 June 2016 was paid to shareholders on
8 September 2016. An interim dividend of US 20.25 cents per share (unfranked) in respect of the half-year ended 31 December 2016 was
paid to shareholders on 10 March 2017. A final dividend of US23.75 cents per share (unfranked) in respect of the year ended 30 June
2017 is payable on 8 September 2017 to shareholders registered on 21 August 2017. The financial effect of this dividend has not been
brought to account in the financial statements for the year ended 30 June 2017 and will be recognised in subsequent financial reports.
On 19 July 2016 the Company issued 4,000 shares; and on 29 June 2017 the Company issued 1,000 shares, each such issue being in
respect of the conversion of partly-paid shares to fully paid shares under the Executive Share Plan. On 9 September 2016, the Company
issued 132,678 shares under its Dividend Reinvestment Plan. On 10 March 2016, the Company issued 104,391 shares under its Dividend
Reinvestment Plan. 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 13 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:

G L L Barnes

J A Bevan

R J S Bell

L D Crandall

W P Day

L A Desjardins

M T Peterson

M R Nicolin

63,478^

18,728^

18,740

22,077

28,838^

4,230

23,647

251,783^

^ 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.

Board

Audit and Compliance
Committee

Risk
Committee

Human Resources
Committee

Governance
Committee

Held

Attended

Held

Attended

Held

Attended

Held

Attended

Held

Attended

G L L Barnes
R J S Bell 1,2,3
J A Bevan
L D Crandall
W P Day
L Desjardins 4,5
M T Peterson 6,7
M R Nicolin

7
7
7
7
7
7
7
7

1
4
4
4
4
3

4
4
3
4

6
4
6

2
2

6
4
6

2
2

3
2
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.
In February 2017, the Board made changes to the Chairs and Members of the Board Committees for the purposes of both planning for the future and refreshing the
Committees. The above table incorporates these changes.
1. Mr Bell was Chair of the Human Resources Committee and remained a member until 10 February 2017.
2. Mr Bell was appointed Chair of the Risk Committee and a member of the Audit & Compliance Committee on 10 February 2017.
3. Mr Bell was a member of the Governance Committee until 10 February 2017.
4. Mrs Desjardins was a member of the Risk Committee until 10 February 2017.
5. Mrs Desjardins was appointed to the Human Resources Committee and the Governance Committee on 10 February 2017.
6. Mrs Peterson was Chair of the Risk Committee and a member of the Audit & Compliance Committee until 10 February 2017.
7. Mrs Peterson was appointed Chair of the Human Resources Committee on 10 February 2017.

In June 2016, the Board resolved to form a Sub-Committee of the Board lead by Mr John Bevan and comprised of Mr Glenn Barnes, Mrs Leslie
Desjardins, Mr Dale Crandall and Mr Magnus Nicolin to review M&A and divestment opportunities – including related business transformation.
This Sub-Committee met 12 times during FY17. All M&A Sub-Committees are excluded from the number of meetings noted above.

Audit and Compliance Committee, Risk Committee and Human Resources Committee meetings were attended by all Directors.

ANSELL LIMITED ANNUAL REPORT 2017Report by the Directors continued

Corporate Governance
The Board of Ansell Limited believes that a strong corporate governance framework helps to underpin a strong company. Ansell’s
corporate governance policies and practices are set out in the Corporate Governance Statement. We have provided a summary of the
Company’s Corporate Governance practices in the Annual Report, and the full Statement, which sets out the extent to which Ansell’s
policies and practices comply with the requirements of the ASX Corporate Governance Council’s Corporate Governance Principles and
Recommendations, can be found at www.ansell.com.

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 Ansell Group. 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. No Director or officer of the Group has received the benefit of an indemnity from the Group during or
since the end of the year. Rule 61 of Ansell’s Constitution also provides an indemnity in favour of officers (including the Directors and
Company Secretary) of the Group 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 Group 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.

ANSELL LIMITED ANNUAL REPORT 2017Report by the Directors continued

Auditor Independence

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 of Ansell Limited for the financial year ended 30 June 2017
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

Alison Kitchen
Partner

Melbourne
14 August 2017

KPMG, an Australian partnership and a member
firm of the KPMG network of independent member
firms affiliated with KPMG International, a Swiss
Cooperative.

Liability limited by a scheme approved under
Professional Standards Legislation.

ANSELL LIMITED ANNUAL REPORT 2017Report by the Directors continued

Non-audit Services

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

Advisory services

Taxation and other services

Other audit and assurance services

$132,016

$6,647

$2,140

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 Group 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 Group is a company of the kind referred to in Australian Securities and Investments Commission Instrument 2016/191 dated
31 March 2016 and, in accordance with that Instrument, 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 14 day of August 2017

ANSELL LIMITED ANNUAL REPORT 2017
Remuneration Report

Contents
1. At a Glance

2. Remuneration Governance

3. Remuneration Policy

Philosophy and Strategy

Remuneration Framework Components

Remuneration Mix

4. Group Performance and Remuneration Outcomes

Group Performance

Realised Pay

How the Remuneration Policy was Operated for FY17

5. Statutory Information

Executive Service Agreements

Mandatory Shareholding Policy

Share Trading Policy

Executive Statutory Remuneration

Equity Instruments

6. Non-Executive Directors

Policy and Approach to Setting Fees

Base Fees for 2017

Non-Executive Directors’ Statutory Remuneration

Non-Executive Directors’ Shares

7. Glossary

ANSELL LIMITED ANNUAL REPORT 2017

Remuneration Report

Chairman’s letter

Dear Shareholders

On behalf of the Board of Directors, we are pleased to present Ansell’s Remuneration Report for the financial year ended 30 June 2017.

The remuneration of Ansell’s Key Management Personnel (KMP) for FY17 is detailed in the following pages.

Looking Back on the Changes Made in the 2017 Financial Year
Last year we announced a number of important changes to Ansell’s remuneration policy. The objectives of these changes were to:

• better align incentives with our strategic objectives;

• have a remuneration framework that operates and is competitive in the global environment;

• continue to attract, retain and reward our executive team; and

• take into account feedback from our shareholders.

These changes included:

• deferral of a portion of STI awards into equity restricted for two years – ensuring that the short term performance that resulted in the

STI outcomes was achieved in a sustainable manner;

• more challenging vesting schedules for the STI and LTI plans where vesting reward levels of performance now starts at 0% of base

salary;

• all LTI awards being delivered in equity for all Executive KMP participants to provide greater alignment with shareholders;

• the introduction of new LTI performance measures and a revised performance gateway more focused and aligned with our long term

goals; and

• the assessment of performance measures on a constant currency basis to not reward or unduly penalise for currency fluctuations

that may otherwise mask underlying performance.

These changes were successfully implemented in FY17.

Company Performance and Remuneration in the 2017 Financial Year
The Ansell Board is committed to transparency around our remuneration practices and ensuring that shareholders are made fully aware
of the link between financial results, performance against our long term strategic goals and executive remuneration outcomes.

Despite a continued uneven economic backdrop across our global markets and continued political uncertainties, the Ansell business has
continued to make significant strategic progress and has recorded solid business results.

The outcomes of our FY17 STI program for our executive KMP reflected our performance against targets set for performance on sales,
EBIT, Profit Attributable, Inventory turns and Operating Cash Flow. Recognising that the proceeds from selling the Sexual Wellness (SW)
business will not be recorded until FY18 and in order to not unfairly penalise management, transaction costs related to the portfolio
review and SW sale that were incurred in 2017 have been excluded from the financial measures (as applicable) used to determine the
STI outcomes this year.

Disappointingly our earnings per share growth over the past three years did not meet the threshold of the FY15 LTI grant targets,
and accordingly executives will receive no payout from that grant.

ANSELL LIMITED ANNUAL REPORT 2017
Remuneration Report continued

Structural Change in the Size and Profile of the Group and its Effect on Remuneration
The 2017 financial year was a significant one in terms of the direction of Ansell. The following major announcements were made:

• in May 2017, Ansell announced that it has executed a binding agreement for the sale of its SW business for US$600 million to
Humanwell Healthcare (Group) Co. Ltd. and CITIC Capital China. We expect to conclude the transaction by September 2017;

• the acquisition of Nitritex in January 2017 for approximately $56 million.

As a first step in business transformation, the company announced on 20 July 2017 a new organisational and operational structure that
will create the necessary focus on key drivers of growth and profitability while also reducing overhead cost and redirecting resources
towards the most important priorities.

It should be noted that the divestment is expected to generate a sizeable statutory profit in FY18 which is of significant benefit to our
shareholders. The Board could, had it determined remuneration outcomes in an unadjusted manner, provided management with a
sizeable windfall gain in terms of the assessment of performance. While management have successfully sold this one hundred year old
business, its value is attributable to all of the hard work of Ansell employees over the past century and it seemed unfair to allow the last
Ansell management team to oversee this business, to benefit from that sizeable profit.

The Board have therefore determined that the gain will be excluded from the assessment of the FY18 incentive awards.

The Board has however, determined that the plans on foot, being the FY16 and FY17 grants, be adjusted to reflect the planned
divestment of the SW business. This is explained in detail on page 74.

Ansell – An Australian Listed, Global Organisation
In reading our report, we encourage our shareholders to remember that Ansell is one of a small group of ASX listed companies that is
highly global in its structure and operations and its executive remuneration framework must take this into account. While Australian listed:

• Ansell has four management hubs in the United States, Belgium, Malaysia and Australia;

• Ansell operates in local currencies, reports in US dollars and usually remunerates executives in the local currencies in which the

Executive is located (exposing Ansell and its executives to international currency fluctuations); and

• Consistent with the fact that 95% of Ansell revenue and all products are manufactured outside Australia, all of Ansell’s Executive KMP

are located outside of Australia, as are nearly all our employees and our operations.

Ansell's performance is affected by global (in addition to Australian) economic conditions including currency fluctuations. Attracting,
motivating and retaining a talented global workforce requires our remuneration practices to be globally competitive, regionally
appropriate and flexible.

We hope that you find this year’s remuneration report informative and we encourage you to open a dialogue with us where you require
further clarification on anything in the report.

On behalf of the Directors, we look forward to welcoming you to the 2017 AGM.

Marissa Peterson
Chairman of the HR Committee
Ansell Limited

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued
Remuneration Report continued

Section 1 – At a Glance
Ansell’s Remuneration Practice for FY17
The table below sets out how the pay policy was operated during FY17

Element of pay

Base salary

Retirement and other benefits

STI

LTI

Objective

How we implemented policy for FY17

Provide market-competitive base salaries,
which reflect the skills and experience of
the individual.

Increases in the range of 0% to 5%
were made effective October 2016.

Provide cost-effective retirement
provisions and other benefits which
reflect the market norms in the jurisdiction
in which the individual is based.

Contributions to relevant pension plans.
Benefits vary depending on location and
the circumstances of the individual.

Incentivise and reward for the delivery
of annual performance goals.

Based on financial measures; Sales, EBIT,
Operating Cash Flow, Profit Attributable
Inventory targets and individual objectives.

Incentivise and reward for long-term,
sustained performance, aids retention
and aligns participants with shareholders.

Part payable in cash with the remainder
deferred into shares, with restrictions
for two years.

Three year performance period, subject
to three performance measures; EPS,
(with ROCE gateway) Organic Growth,
and ROCE. The LTI is payable in shares.

Progress towards targets is monitored.

Shareholding requirements

Align interests with shareholders and
encourage long-term thinking.

FY17 STI Performance Measures and Weights

Other KMP

Individual 10%

Inventory
Turns 20%

Sales 35%

EBIT 35%

CEO & CFO

Individual 10%

Profit
Attributable 10%

Operating
Cash Flow 10%

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

FY17 STI Outcomes

Metric

Sales (all KMP)

EBIT (all KMP)

Operating Cash Flow
(CEO & CFO only)

Profit Attributable
(CEO & CFO only)

Inventory Turns
(KMP excluding CEO & CFO)

Performance

FY17 STI Payout Realised

Magnus R
Nicolin
67%
of max

Neil Salmon
65%
of max

Peter
Dobbelsteijn
52%
of max

Steve Genzer
53%
of max

Jeyan Heper
55%
of max

Joe Kubicek
52%
of max

Anthony Lopez
51%
of max

Mark Nicholls
52%
of max

Mid

Max

Mid

Max

Mid

Max

Performance Outcomes Under the FY15 LTI (Performance Measured FY15-17)
Awards granted in FY15, were subject to a three-year EPS growth measure, which was assessed
based on performance ended FY17. Based on the EPS performance of the Group for FY17, nothing
is deemed to be payable under this award and it therefore lapses for all participants.

Max

Mid

Max

Mid

Max

Mid

Max

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued
Remuneration Report continued

Section 2 – Remuneration governance
Introduction
The Directors of Ansell Limited (Ansell) present the Remuneration Report (Report) prepared in accordance with Section 300A of the
Corporations Act for the Group for the financial year ended 30 June 2017. This Report, which has been audited by KPMG, forms part
of the Report of the Directors.

The Report outlines the remuneration arrangements in place for the Non-Executive Directors and Executive KMP of Ansell being
those executives who have authority and responsibility for planning, directing and controlling the activities of the Group. In this
Report, ‘Executives’ refers to members of the Group Executive team identified as KMP.

Role of the Human Resources Committee
Ansell’s approach to Executive remuneration is founded on the principle that rewards should reflect Group performance. The Human
Resources Committee (HRC) is responsible for ensuring that our Executive remuneration philosophy, strategy and policies are designed
with this objective in mind.

Our governance framework for determining executive remuneration is outlined below:

Board
The Board is responsible for:

• defining Ansell’s remuneration strategy

• determining the structure and quantum of remuneration for the

CEO and Other Executives that support and drive the achievement
of Ansell’s strategic objectives.

The Board has an overarching discretion with respect to the awards
given under Ansell’s incentive plans.

HRC
The HRC is delegated responsibility by the Board to review and make
recommendations on the remuneration policy, strategy and structure
for Ansell’s Board members and Executives.

The HRC has in place a process of engaging and seeking independent
advice from external remuneration advisors and ensures remuneration
recommendations are free from undue influence by management.

Consultation with Shareholders
and Other Stakeholders

Remuneration Consultants and
Other External Advisors

• Provide independent advice,

information and recommendations
relevant to remuneration decisions.

• In performing its duties and making
recommendations to the Board,
the Chairman of the HRC seeks
independent advice from external
advisors on various remuneration
related matters.

• Any advice provided by external
advisers are used to assist the
Board – they do not substitute
for the Board and HRC process.

Management
Provides information relevant to remuneration decisions and makes
recommendations to the HRC.

Obtains remuneration information from external advisors to assist the
HRC (i.e. market data, legal advice, accounting advice, tax advice).

Remuneration Consultants and
Other External Advisors

• Management may seek its own

independent advice with respect to
information and recommendations
relevant to remuneration decisions.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

KMPs Comprising
The Board of Directors and Executives
The following table details Ansell’s Board of Directors and KMP during FY17:

Non-Executive Directors

Location of Board Member

Role

Glenn L L Barnes

John Bevan

Ronald J S Bell

L Dale Crandall 1

W Peter Day

Leslie A Desjardins

Marissa T Peterson

Australia

Chairman, Independent Non-Executive Director

Deputy Chairman, Independent Non-Executive Director

United Kingdom

Independent Non-Executive Director

United States

Australia

United States

Independent Non-Executive Director

Executive Director

Location of Executive

Role

Magnus R Nicolin

Belgium

Managing Director (MD) and Chief Executive Officer (CEO)

Other KMPs

Neil Salmon

Peter Dobbelsteijn

Steve Genzer

Jeyan Heper

Joe Kubicek

Anthony Lopez

Mark Nicholls

1. Will retire on 20 October 2017.

Location of Executive

Role

Belgium

United States

Belgium

United States

Chief Financial Officer (Finance and IT)

Chief Commercial Officer EMEA and APAC Region and Ansell Global Guardian

President and General Manager Industrial Solutions GBU

President and General Manager Sexual Wellness GBU

President and General Manager Single Use GBU

United States/Belgium

President and General Manager Medical GBU

United States

Chief Commercial Officer Americas

External consultants
From time to time during the financial year ended 30 June 2017, the Group engaged external consultants to provide insights on
remuneration trends, regulatory and governance updates and market data in relation to the remuneration of Non-Executive Directors,
the CEO and Other Executives. During the year the HRC engaged 3 Degrees to provide independent advice on the overall pay policy,
advice on the drafting of the Remuneration Report and ad-hoc advice on market practice and regulatory trends.

3 Degrees was acquired by KPMG, the Group's external auditor, effective April 2017. The Board considered the independence
of 3 Degrees (now KPMG) and the potential for any conflict and determined there was no compromise of audit independence.

Shareholder engagement
The HRC maintains a regular dialogue with major shareholders and relevant institutional investor bodies. The views and opinions
expressed are considered when determining remuneration. The HRC monitors trends and developments in corporate governance
and market practice to ensure the structure of executive remuneration remains appropriate. The HRC would undertake a
consultation process in advance of any material changes to the remuneration policy.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued
Remuneration Report continued

Section 3 – Remuneration policy
Philosophy and strategy
Our remuneration philosophy links the achievement of our strategic objectives and corporate plans with appropriate and measured
rewards for our Executives.

Our governing principles are summarised below:

Ensure
competitiveness
in base salary
and total salary
package

Offer competitive levels of remuneration in the relevant
employment marketplace in which the employee is based to
attract and retain the best talent available. These remuneration
arrangements are truly global, not those traditionally adopted
by most of our predominantly Australian operating ASX peers.

Support a
performance
culture

Support high performance culture by setting appropriately
challenging performance objectives that drive the generation
of shareholder value and link rewards to the achievement of
those objectives and provide the largest part of the remuneration
package ‘at risk’.

Balance short
and long term
performance

Balance the reward for superior performance against short-term
goals with rewards that are delivered in a manner that supports
generation of superior, sustainable shareholder returns over the
longer term.

ANSELL’S
EXECUTIVE
KMP
REMUNERATION

Link rewards to
business results

Apply a pay-for-performance philosophy that directly links Executive
reward to the achievement of Ansell and business unit operating
results and performance against strategic goals both annually and
over the longer term.

Significant equity
component to align
with shareholders

Provide a portion of total remuneration in the form
of Ansell equity and maintain market leading shareholding
guidelines to support alignment with shareholders and
encourage long-term thinking.

ANSELL LIMITED ANNUAL REPORT 2017Our remuneration philosophy links the achievement of our strategic objectives and corporate plans with appropriate and measured

Section 3 – Remuneration policy

Philosophy and strategy

rewards for our Executives.

Our governing principles are summarised below:

Ensure

competitiveness

in base salary

and total salary

package

Offer competitive levels of remuneration in the relevant

employment marketplace in which the employee is based to

attract and retain the best talent available. These remuneration

arrangements are truly global, not those traditionally adopted

by most of our predominantly Australian operating ASX peers.

Support a

performance

culture

Support high performance culture by setting appropriately

challenging performance objectives that drive the generation

of shareholder value and link rewards to the achievement of

those objectives and provide the largest part of the remuneration

package ‘at risk’.

Balance short

and long term

performance

Balance the reward for superior performance against short-term

goals with rewards that are delivered in a manner that supports

generation of superior, sustainable shareholder returns over the

longer term.

ANSELL’S

EXECUTIVE

KMP

REMUNERATION

Link rewards to

business results

Apply a pay-for-performance philosophy that directly links Executive

reward to the achievement of Ansell and business unit operating

results and performance against strategic goals both annually and

over the longer term.

Significant equity

component to align

with shareholders

Provide a portion of total remuneration in the form

of Ansell equity and maintain market leading shareholding

guidelines to support alignment with shareholders and

encourage long-term thinking.

Remuneration Report continued

The remuneration design and quantum for our Executives is determined by fit for purpose contemporary criteria as well as reviewing
what is generally paid for similar roles in similar businesses in the relevant geographic locations – the locations where the Executives
reside and work. While Ansell is publicly listed on the ASX, it generates returns across many currencies and reports in US dollars, more
than 95% of its revenue is derived outside of Australia and it is active in a diverse range of geographies. None of our Executives are
based in Australia, with their locations being our Global Hubs in the United States and Belgium. As such, the mix of remuneration for
individual Executives aims to be reflective of prevailing best practice and market conditions in the region in which the Executive is
based. When setting the appropriate pay structure and quantum the Board will consider data from multiple sources covering different
geographies (including Australia, Europe and the US). On occasion this may result in packages which have a higher potential quantum
than those in a purely Australian focused company of a similar size, but the Board considers that this is both necessary and appropriate
to recruit, retain and motivate high caliber individuals in the markets in which Ansell operates.

The policy set out on the following pages is cascaded to other members of the senior management team as appropriate. For those
operating in individual units, there will be some reference to regional or business unit financial performance, but they will retain a
link to Group level results. The LTI is targeted at those key individuals who have the potential to influence Group level performance.

Our Remuneration Policy and Strategy document is available on our website at the following link www.ansell.com/en/About/Investor-
Center/Corporate-Governance-and-Corporate-Governance-Statement.aspx.

Remuneration framework components
Our executive remuneration framework which was used for FY17 and will be followed for FY18 consists of the following components:

• base salary, pension contributions and other employment benefits, collectively known as Fixed Annual Remuneration (FAR);

• a Short Term Incentive (STI) plan; and

• a Long Term Incentive (LTI) plan.

The diagram on the following page outlines the link between the components of remuneration for Executives, the relevant performance
conditions and the strategic objectives of Ansell which these components were designed to achieve. Further information on each of
these components can be found in Section 4.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Component

Operation and Performance
Measure

Strategic Objective/
Performance Link

Fixed Annual Remuneration (FAR)
Base salary plus contributions
to retirement plans and other
benefits.

Base salary takes into account
responsibilities, qualifications,
experience, performance, location
and market rate for a comparable
role (similarly sized companies,
operating in similar jurisdictions).

Pension, statutory and other
benefit provisions which reflect
local market cultural norms and
relevant legislation.

STI
Awards granted as cash and,
for above mid-point performance,
shares in Ansell which will be
restricted from trading for
two years from date of grant.

Based on a combination of financial
and non-financial performance
metrics, set each year to reflect the
key priorities of the business.

Performance will be weighted
more towards performance
against stated financial KPIs
(not less than 80% of the award).

LTI
Awards granted as rights to
receive fully paid ordinary shares
in Ansell which will vest subject
to achieving pre-set performance
conditions.

3 year performance and
vesting period.

Performance to be assessed
based on a combination of
key financial and shareholder
value measures.

FAR set at competitive levels in the
market to attract, retain and engage
talented executives to achieve
results (including being competitive
internationally for talent).

The broad aim is to position
base pay +/-10% of the relevant
benchmark median.

Increases are linked to the
performance of the individual,
the organisation he/she leads
and, indirectly, the overall
business.

The Board will use performance
measures (both financial and
non-financial) which are
appropriately aligned with the
Group’s short-term objectives of
delivering profitable growth and
improving shareholder return.
Executives have a clear line of
sight to the targets and are able to
affect results through their actions.
Deferring part of the award in
shares ensures that there is no
incentive to exceed short term
target at the expense of longer
term sustainable performance.

The Board will select the
performance measures at the
start of each award based on
the key priorities at that time.
Measures used will be chosen
on the basis they provide:

• a relevant indicator of increases

in shareholder value; and

• a target that provides a
suitable line of sight to
encourage and motivate
executive performance.

A performance gateway is used
to ensure reasonable outcomes.

TOTAL REMUNERATION

The total remuneration mix is designed to attract, retain and motivate a highly
capable executive team, encourage and drive leadership performance that
reinforces Ansell’s short and long term strategic objectives and provide a
common interest between Executives and shareholders by linking the rewards
that accrue to Executives to the creation of value for shareholders.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Remuneration Mix
Ansell’s mix of fixed and at risk pay components is shown in the table below, based on an assumed mid-point level of performance
and at maximum levels based on remuneration potential for FY17. The balance of remuneration paid in cash (or near cash equivalent
for FAR) and equity is also shown.

CEO

CFO

Mid-point

Max

Mid-point

Max

Average other KMP

Mid-point

Max

FAR
%

STI
%

LTI
%

Total
%

Cash
%

Equity
%

Total
%

100

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued
Remuneration Report continued

Section 4 – Group performance and remuneration outcomes
Group performance
The five year performance history of the Group shows progression in top line sales and underlying profitability from FY13 to FY15, before a
decline in FY16 and subsequent return to growth in FY17. The primary reasons for the decline in FY16 were the adverse impact of foreign
currency translation, a sluggish world economy and an increased tax rate for the Group. Furthermore, manufacturing issues in our medical
division temporarily increased costs and affected supply. During FY17, the group returned to top line growth, but profitability fell due to
increased raw material costs and non recurring FY16 gains (due to asset sales and lower employee incentive expenses).

Income Statement

Sales

EBIT

Profit for the period attributable to Ansell shareholders

Share information

Basic earnings per share ($US cents)

Dividends per share2 (A$ or $US cents)

Ansell Share Price (A$)

Ratios

2013
US$m

2014
Underlying1

US$m

2015
US$m

2016
US$m

2017
US$m5

1,372.8

1,590.2

1,645.1

1,572.8

1,599.7

170.5

139.2

106.5

A38.0

17.63

206.5

156.9

245.3

187.5

236.7

159.1

217.8

147.7

110.0

122.5

105.1

100.1

US39.0

US43.0

US43.5

US44.0

19.83

24.09

18.17

22.68

2017
vs 2016
CC%4

+2.6%

-6.0%

-5.0%

-2.4%

+1.1%

Return on average shareholders’ equity (%)

19.1

15.7

16.4

14.1

12.7

Table 4.1(b) – Cumulative Total Shareholder Return (TSR) 3

Cumulative TSR – A$

1.0

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

120%

100%

80%

60%

40%

20%

June 12

June 13

June 14

June 15

June 16

June 17

STI/LTI payouts as percentage of maximum

CEO incentive outcomes

STI (% of Maximum)

LTI grant (% of Maximum)

FY13

32%

100%

FY14

49%

82%

FY15

36%

50%

FY16

29%

FY17

67%

1. During FY14, the Group acquired BSSI and restructured its business, which involved significant non-cash write-downs as well as cash expenses total $122 million.

The underlying results exclude this charge.

2. Dividends have been declared in US$ since Ansell adopted the US$ as reporting currency in FY14.

3. Cumulative Total Shareholder Return (TSR) is the cumulative financial return which an investor received from holding shares in Ansell, assuming dividends
paid are reinvested in Ansell shares. It is expressed as a cumulative percentage change from a starting value at 1 July 2012 and finishing on 30 June 2017.

4. CC denotes Constant Currency.

5. The FY17 results include both continuing and discontinued operations as per note 2 – segment information of the Financial Statements.

ANSELL LIMITED ANNUAL REPORT 2017

Remuneration Report continued

Realised pay (Non-Statutory Remuneration Disclosure)
The table in this section uses non-IFRS financial information to detail realised pay earned by the CEO and Other Executives during FY17.
This is a voluntary disclosure and is supplemental information to the statutory remuneration disclosure prepared in accordance with
statutory requirements and accounting standards as detailed in Section 5 of this Remuneration Report. A description of how to calculate
the non-IFRS financial information is set out below and in the footnotes to the tables. Realised pay includes cash salary and fees,
retirement benefits, non-cash benefits paid/payable in relation to the FY17 year and the full value of incentive payments earned in
relation to the performance period ended 30 June 2017. This differs from the statutory amount as it excludes accruals and estimations
and is thus a closer measure of "take home pay" received in respect of the current year.

Our reporting currency is US$ and the CEO and a number of members of the KMP are paid in US$. For other executives the reported
numbers in the statutory and realised pay tables are subject to translation differences from year to year.

Table 4 a) – Realised Pay Summary (all shown in US$)

Base
salary ($)1

Retirement
Benefits ($)2 Other ($)3

Year

Cash ($)

Restricted
shares ($)

2017 STI4

2016 SIP5
Restricted
shares ($)

LTI

Cash
($)

PSRs6
($)

Total
Earnings ($)

US$ Name

Executive Director

Magnus R Nicolin

2017 1,059,500

312,171

152,627 1,199,251

400,749

2016 1,030,000

367,842

95,156

600,000

499,200

n/a

3,124,298

2,592,198

1,179,463

1,023,233

1,024,147

1,099,056

681,277

708,718

537,681

459,194

653,665

658,182

1,380,406

781,963

573,938

265,784

9,154,875

7,588,328

Other Executives

Neil Salmon7

Peter Dobbelsteijn8

Steve Genzer

Jeyan Heper

Joe Kubicek

Anthony Lopez 9

Mark Nicholls 10

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

497,277

48,597

149,191

373,188

111,210

490,738

76,718

108,450

196,682

150,645

384,174

37,977

401,525

192,206

8,265

385,114

38,456

458,240

124,141

93,105

414,732

44,115

2,000

207,366

13,064

412,699

74,818

2,222

119,443

99,536

293,222

28,444

52,256

148,467

15,292

277,446

27,500

26,736

127,512

391,000

37,645

21,113

195,500

8,407

n/a

378,250

66,475

10,137

125,120

78,200

378,420

42,712

765,712

189,210

4,352

376,565

70,693

134,899

108,985

90,821

350,000

39,542

1,871

175,000

7,525

175,000

34,221

563

56,000

n/a

Total

2017 3,768,325

591,202 1,546,295 2,680,188

568,864

2016 3,525,812

756,723

836,403 1,457,883

1,011,507

Base salary includes all of the base salary earned by the individual in FY17. The increases in Base salary for Executives are based on external benchmarking of
similar positions in the jurisdictions in which the executives are based. As a result, whilst the CEO increase was 2.5% with effect from 1 October 2016, increases
for Other Executives’ pay were either lower or higher depending upon their benchmarking of similar positions as well as by reference to their performance
against their personal objectives in their respective role, but ranged from 0% to 5%.

2. Retirement Benefits includes all of the retirement benefits earned by the individual in FY17.

Other includes the cost to the company of cash benefits such as motor vehicle, executive expatriation and relocation allowances, executive insurance,
expat tax equalisation payments and other amounts. Significant year over year variations in other benefits above are detailed below.

4. 2017 STI represents amounts payable under the 2017 STI plan.

2016 SIP represents amounts payable under the one-off SIP – refer to 2016 Remuneration Report. These were awarded as restricted shares, which are bought
on market by the Group with recipients being unable to sell the shares for a period of two years from the issue date.

6. The PSR's relate to the FY15 grant, for which nothing is deemed to be payable given the FY17 results.

7. Mr Salmon relocated to Belgium during FY16 and his other benefits include relocation expenses.

Mr Dobblesteijn is Chief Commercial Officer for EMEA and APAC and so is required to travel extensively in his role. As a result he is potentially exposed
to various complex income tax issues. During FY16, and following a review by relevant authorities of his previous tax returns, Mr Dobblesteijn was assessed
to owe additional tax liabilities to the Belgian authorities. These were reimbursed by Ansell pursuant to the terms of his employment agreement. These amounts
have been included in the other benefits category above.

Mr Lopez re-located to Belgium during FY15 and FY16 before returning to the USA in FY17. Relocation and tax equalisation costs were incurred as a result.
These represent the majority of the higher Other benefits paid or payable in FY17.

10. Mr Nicholls was appointed as a KMP on 1 January 2016. Mr Nicholls was not a participant of the FY14 LTI grant. As such, he was not entitled to participate

in the 2016 SIP. His pay details for FY16 represent the 6 months of realised pay for his time following his commencement as KMP.

ANSELL LIMITED ANNUAL REPORT 2017
Remuneration Report continued
Remuneration Report continued

How the remuneration policy was operated for FY17
During FY16 the HRC engaged extensively with stakeholders and made a number of significant changes to the policy in response
to those discussions.

For FY17 the HRC reviewed the revised policy and determined that on the whole it was working appropriately and therefore
did not require material changes. As such, the HRC has approved only minor changes to the operation of the policy for FY18.

Set out below are the details of how the policy works in practice, how it was operated for FY17 and any proposed changes for FY18:

Element of pay

Base salary

How the policy was operated for FY17 and any changes for FY18

The HRC will normally review base salaries annually. During FY17, the Board approved salary increases
for the KMP ranging from 0% to 5%. When making these increases, the HRC considered a number
of reference points including internal relativities, changes in scope of responsibilities, local market
inflation and the wider macro-economic environment. External market data was sourced during
the year but was used for reference only.

As a result of the increases the base salaries for the KMP, effective 1 October 2016 were:

Executive

Magnus R Nicolin

Neil Salmon

Peter Dobbelsteijn

Steve Genzer

Jeyan Heper

Joe Kubicek

Anthony Lopez

Mark Nicholls

Base Salary

$1,066,000

Increase

2.5%

€456,500

€352,671

$414,732

€272,041

$391,000

$378,420

$350,000

The CEO’s base salary was set at a level which reflects the skills, experience and performance of the
individual in the role. As a global company, the HRC feels it is important to be competitive across the
jurisdictions in which it operates, not just against Australian focused ASX listed companies of a similar
size, to attract and retain the best talent.

Our incentive plan quantum is based on a percentage of base salary (not a percentage of FAR).

FY18
The next Base Pay review is due in September 2017.

Retirement provisions

Retirement plan benefits include contributions to US benefit or non-qualified pension plans and to an
Australian superannuation fund as applicable.

FY18 – No changes proposed.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Other benefits

The provision of other benefits may vary between executives, depending on their local market and their
particular circumstances. Where necessary the company will make provision for benefits such as motor
vehicle, executive expatriation/ repatriation and relocation allowances, executive insurance, expat tax
equalisation payments and other amounts.

The level and type of benefits will reflect the Company’s overall policy on international mobility which
is regularly reviewed to ensure it complies with best practice.

FY18 – No changes proposed.

STI – structure and quantum All Executives may participate in the plan whereby they have the opportunity to earn an annual

award payable part in cash and part in restricted shares. This remuneration is ‘at risk’ as it requires
the achievement of pre-set performance targets directly linked to Ansell’s business strategy.

How the STI is determined:

Base
Salary

Maximum
Incentive
(% of Salary)

Business
Performance
Metrics
(90%)

Individual
Performance
(10%)

STI
Outcome

The table below shows the maximum award potential and the weighting of performance measures for
the FY17 STI. The measures were chosen to provide a balanced view of overall Group performance that
was aligned to our objective to deliver profitable growth and improve shareholder returns.

Performance measures and relative contribution to STI

Executive

CEO

CFO

Opportunity
Range
(% of Salary)

Sales EBIT

Inventory
Turns

0% – 225% 35% 35%

0% –150% 35% 35%

Other Executives

0% – 100% 35% 35%

20%

Operating
Cash Flow
After Capex
Pre Tax

10%

Profit
Attributable

Individual
Objectives Total

10%

10% 100%

The financial performance measures were chosen to reflect the key financial priorities including
profitability, cash generation and Inventory efficiency. The individual objectives include metrics
on safety and customer satisfaction which are reflective of broader non-financial measures of
corporate performance.

To help provide a longer-term focus, any part of the STI award above the mid-point will be deferred
in the form of restricted shares. Restricted shares are awarded in place of cash to place a part of the
reward at continued risk against future share price movements. The restriction will see the shares
held for a minimum period of two years from when the shares are granted.

FY18
There are no proposed changes to the structure or quantum of the STI for the CEO or CFO for FY18.
As a result of the recalibration of the KMP for FY18 and the additional scope and responsibilities
of Steve Genzer and Joe Kubicek, these Executives will have a maximum STI opportunity of 130%
of base salary for FY18. The HRC believes that this change is important to recognise the importance
of these roles in driving group performance.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Hurdles are set by the Board at the start of each financial year. The target setting process considers
the prior year base figure (adjusted to exclude divestments and other one-off items and restated at
constant currency) and then determines growth targets for Sales and EBIT with reference to external
growth benchmarks and specific Ansell initiatives including a requirement for adequate returns on key
investments made or planned. Generally this is consistent with a 'top down' approach where hurdles
are driven by the Board’s target setting process. Performance is measured on a Constant Currency basis.
Non-financial hurdles are assessed against quantitative data where possible, but by their nature, may
require a more subjective qualitative assessment.

Performance was assessed during August following the completion of the audit of the financial statements.

The performance outcomes reflect the following:

• Sales were $1,599.7 million and were up 3.6% in organic constant currency terms, which exceeded

the Target.

• EBIT was $217.8 million, down on the prior year FY16, with the prior year EBIT benefiting from the gain
on sale of OnGuard and reduced incentive provisions. These items were adjusted for when setting the
original targets for FY17. Against the target expectation, EBIT performance benefited from the organic
revenue growth noted and improving operating margins on improved manufacturing efficiencies that
more than offset the impact of higher raw material costs.

• Operating Cash flow after Capex and Interest was $146 million and exceeded FY16 by 0.8% and was

above target (CEO/CFO only).

• Inventory turns were 2.6 times and were below the threshold targets (executive KMP excluding the

CEO and CFO.)

• Profit Attributable (for CEO/CFO only) was $147.7million, which was above the minimum but below

the mid point performance targets.

The final outcomes above have been adjusted for constant currency, divestitures, one-off gains and
losses, net foreign exchange/losses as well as normalistion of employee incentives. When considering
adjustments to actual numbers, the Board is guided by an established policy to ensure any use of discretion
is applied appropriately and consistently. The Board is satisfied that the adjustments noted above are in
line with the policy and provide a fair reflection of the performance outcomes in the year.

Individual objectives were set based on broad topics but were then tailored to each role as appropriate.

For other executives, the CEO will make an assessment of the individual’s performance and this is reviewed
and approved by the Board. If objectives are fully met, this element of the bonus is paid in full. If partially
met, then a sliding scale will be used as appropriate. For the CEO, the performance assessment is made
by the Board.

The HRC considered individual performance against objectives at the August 2017 committee meeting
and following a comprehensive review approved the assessments noted below.

Magnus R Nicolin

• Exceeded agreed objectives in all five agreed focus areas;
Transformation, People Development, Operations, Quality
and Supply Chain.

Neil Salmon

• Managed outstanding result while executing Sexual Wellness

divestiture & work on transformation.

Peter Dobbelsteijn

• Affected strong recovery in EMEA-APAC while pushing through

price-increases across the board.

Steve Genzer

• Drove 5% YoY organic growth through innovation led

Jeyan Heper

Joe Kubicek

acceleration.

• Strong leadership in execution of business goals despite the

challenges of the divestiture process.

• Delivered on all three strategic priorities for the SU GBU; Core
brand, emerging markets and International sales acceleration.

Anthony Lopez

• Solid progress in improving quality, supply and profitability

in the medical business.

Mark Nicholls

• Took North America back to growth while expanding the

LAC region by more than 20%.

STI – performance
conditions and outcomes

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

STI – performance
conditions and outcomes
continued

For the FY17 STI the Board approved the following payments to the KMP:

Maximum Targets

FY17 Actual Outcome

Executive

Financial
(90%)

Individual
(10%)

Total
(100%)

STI
Payable

Cash
Payable1

Restricted
Shares2

Magnus R Nicolin

2,158,652

239,850

2,398,502

1,600,000

1,199,251

400,749

Neil Salmon

Peter Dobbelsteijn

Steve Genzer

Jeyan Heper

Joe Kubicek

Anthony Lopez

Mark Nicholls

Total

671,323

345,757

373,259

263,899

351,900

340,578

315,000

74,591

38,417

41,473

29,322

39,100

37,842

35,000

745,915

484,398

373,188

111,210

384,174

200,471

192,206

414,732

220,430

207,366

293,222

163,759

148,467

391,000

203,907

195,500

378,420

193,562

189,210

350,000

182,525

175,000

8,265

13,064

15,292

8,407

4,352

7,525

4,820,369

574,696

5,355,965

3,249,052

2,680,188

568,864

1. The 2017 STI was determined in conjunction with the finalisation of the FY17 results. Cash amounts will be paid in

September 2017.

2. Restricted shares will be granted in August/ September 2017 and are subject to a two year sale restriction. Awards are

subject to clawback in the event of fraud or dishonesty.

The Board may adjust incentive outcomes to ensure they are aligned to the shareholder experience.
The Board is satisfied that the outcomes noted above fairly reflect performance delivered in the year.

In October 2016, the HRC approved a retention plan for selected members of the Sexual Wellness
team, which included Jeyan Heper. The plan was intended to focus leadership on driving business
performance during a time of disruption and uncertainty, following the portfolio review. The plan is
contingent on a successful completion of a sale of the Sexual Wellness business. On the basis that
any sale is not expected to complete until FY18, there was no additional bonus to be paid in relation
to FY17. The total amount payable in FY18 is expected to be US$108,000, equivalent to five month’s salary.

FY18
No changes are proposed to the performance measures to be used for FY18.

The same target setting process as outlined above will be used and performance hurdles will be
disclosed in next year’s report.

LTI – awards granted
during the year

All KMP Executives are eligible to participate in the LTI Plan. Awards that are granted will vest
after three years subject to the achievement of the performance conditions and continued service.
Our LTI awards are entirely in the form of Performance Share Rights (PSRs). The HRC believes that
equity based awards of this type help align the interests of Executives and shareholders and promote
a focus on long-term, sustainable performance.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

How awards are granted:

Base
Salary

Maximum
Award
(% of Salary)

Share Price
at Grant

Number
of Awards
Granted

How awards will vest:

Number
of Awards
Granted

Business
Performance

Share Price
on Vesting

Value of
awards
on vesting

For FY17 the LTI maximum was based on a percentage of salary. The actual amount payable will be
calculated on a sliding scale, with 0% payable for Minimum target performance, rising on a straight-line
basis to the maximum potential set out in the table below:

Executive

Minimum LTI (% of Salary) Maximum LTI (% of Salary)

CEO

CFO

Other Executives

360%

300%

200%

The scale is significantly more challenging than Australian norms which typically provide for 50%
of target to vest at threshold. This is consistent with our pay for performance culture. Participants
are prohibited from hedging against awards.

Performance measures for FY17 awards

Performance Measure*

Weight

Minimum

Maximum

EPS Growth

Organic Revenue
Growth

ROCE (Return on Capital
Employed)

33.3% of Award
Also subject to gateway
condition being ROCE in
year 3 >=15%

33.3% of Award

12.5% growth by year 3
(4% Compound Average
Growth Rate – CAGR)

33.1% growth by year 3
(10% CAGR)

6.1% Growth by year 3
(2% CAGR)

15.8% growth by year 3
(5% CAGR)

33.4% of Award

15% in year 3

16.5% in year 3

* EPS, Organic Revenue Growth and ROCE as defined in the Glossary on pages 87 and 88.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

As Ansell has continued to invest capital in acquiring businesses which we believe complement
or augment our existing businesses, we have used multiple measures to give a broader focus on
long-term financial performance and value creation.

As communicated previously, the Board believes Ansell’s specific characteristics (in terms of being
Australian listed but a global company, not having many global listed competitors and being of a
different size to many of them), prevent us identifying an appropriate comparator group for use in
a relative TSR measure. The Board is still of this view but will keep the matter under review for
future years if it is possible to construct a relevant peer group.

Approach to setting performance hurdles
Performance hurdle ranges, which determine the minimum to maximum incentive range for EPS,
Organic Growth and ROCE, are set each year with reference to expected economic conditions and
strategic priorities of the business.

The hurdle range has been set on a challenging, yet realistic, basis. The lower end of the range
should be considered attainable in the current environment, but the upper end would require
excellent performance. Achieving full vesting against all three measures would be considered
an exceptional achievement.

The hurdle range is set using constant currency to eliminate the impact of currency fluctuations.
The HRC is of the view that the use of constant currency is appropriate in light of the global nature
of the business to prevent management from being favoured or penalised as the result of fluctuations
outside of their control.

In line with standard practice, the HRC has discretion to make adjustments in calculating the
applicable performance conditions to:

• exclude matters that are beyond the reasonable control or foresight of management; and

• include matters that are within management control or should reasonably have been foreseen to
ensure no unfair advantage or penalty in incentive outcomes when viewed in light of shareholder
value creation.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

FY18
No changes are proposed to the structure or quantum for FY18. However, the Board will recalibrate
the LTI performance measures of organic growth, EPS and ROCE to recognise the new organisational
structure due to the expected sale of the SW business and the resulting dilution. The intention is to use
the same performance measures for awards granted in FY18, albeit with performance hurdles reflective
of the current market environment. The HRC believes that the hurdles set below are as equally challenging
as those set previously when taking into account the current growth prospects of the business.

Adjustments to current LTI plans
The successful divestment of the SW business, expected to complete by the end of September 2017, will
result in the company’s new profile being focused on its core Industrial and Healthcare businesses. In
anticipation of this significant change, it is necessary to make adjustments to calculation of performance
against target for the calculation of payment outcomes against the LTI plans that will be tested for vesting
at the end of FY18 and FY19.

The Committee has decided to follow the approach described below in calculating performance against
existing plan targets. The intent of this approach is to neutralise the impact of the one off divestment and
to require operating performance consistent with the original business portfolio targets, so as to permit an
appropriate achievement opportunity for incentive outcomes. The expected gain on sale of the business
will also be excluded from calculation of incentive outcomes.

The original growth targets for EPS were expressed as an EPS CAGR against a base period EPS. To facilitate
performance measurement, this target has now been converted into the equivalent EPS Growth in cents,
with performance then measured against the required EPS growth target as below.

Performance will be assessed as follows:
• The period up to end of FY17 will be judged as normal on the total business portfolio including the

actual operating performance of SW.

• The previously agreed adjustments to EPS for LTI performance measurement will continue to be applied

as in past years

• See Table 4 b) for the calculation to end FY17 of ‘Achieved EPS growth’.

For performance from FY18 and beyond this will be assessed in two components:
• The continuing business will be measured on its actual performance against the restated FY17

continuing business EPS as disclosed in the annual accounts.

• In addition, the forecast growth of the SW business as contained in the projections formally shared with
buyers as part of the sale process, will also be added to the calculation of performance achieved in FY18
and FY19, the ‘SW Growth Projection’.

The Committee believes that as the Ansell shareholder benefited from the expected future performance
of the business through the mechanism of the selling price achieved for the business, management should
benefit accordingly in their potential LTI incentive outcomes, via the performance achieved in actual
performance to date and the forecast targets now effectively realised through the SW sale process.

For the benefit of Shareholders, Table 4 c) shows the calculation of the required performance in the
remaining years of the existing plans. This is shown as the ‘to go EPS Growth’ that would be required to
reach minimum and maximum performance levels as set originally for these plans.

As noted above achievement against the remaining ‘to go’ target will be measured for the continuing
business only against the FY17 continuing business results as disclosed in the FY17 Financial Statements.

For the FY17-19 LTI plan, the Committee also addressed the measurement of performance against the
organic revenue growth and ROCE performance measures.

For organic revenue, this will continue to be measured in each year excluding the effects of acquisitions
and divestments and the combined 3 year performance on this basis measured against the original
performance range for organic revenue CAGR of 2% at minimum and 5% at maximum.

For ROCE, the Committee recognised that the Sale of SW will be dilutive to ROCE and therefore the ROCE
measure should be adjusted down by the expected effect of the SW divestment which is a reduction to
Ansell ROCE of 180 basis points in the vesting year. The targeted ROCE range has therefore been adjusted
down by 180 basis points to a minimum of 13.2% and a maximum of 14.7% for ROCE in FY19.

ANSELL LIMITED ANNUAL REPORT 2017
Remuneration Report continued

Table 4 b) – Calculating EPS Growth on Total Portfolio (Including SW) for Existing LTI Plans

Prior year reported
Prior year EPS at Constant Currency (CC)
Current year EPS

FY16
122.5
106.7 a
105.1 b

FY17
105.1
103.3 c
100.1 d

Prior year EPS at CC after prior year LTI Adjustments
Current year EPS after current year LTI Adjustments

102.5 h=(a+e)
101.0 i=(b+f)

99.2 j=(c+f)
101.1 k=(d+g)

‘Achieved EPS Growth’ for LTI Measurement

-1.5 l=(i-h)

1.9 m=(k-j)

LTI Adjustments
Adjustments – EPS impact
Shah Alam Sale: Note 1
Restructuring FY15: Note 3
Exclude gain/loss on Australian c/f tax loss accounting: Note 4
Previously deducted DTAs expensed in current year
Other: Note 2
Exclude net FX gain/loss in reported EPS: Note 5
Exclude portfolio review costs: Note 6
EPS impact total adjustments

FY15
-10.3
8.9
-2.3
1.1
-1.6

FY16

-3.0
0.5

-1.6

-4.2 e

-4.1 f

0.1

FY17

-3.0
3.3

-1.6
0.7
1.6
1.0 g

5.1

Notes on LTI Adjustments

1. Refers to target set for the gain on the sale of the Shah Alam property in Malaysia that was initiated as part of the FY14
restructuring program. The targeted gain served to reduce the targeted net cost of the FY14 restructuring program. With
the gain having now been realised in FY15, the targeted gain has been excluded from FY15 EPS for LTI calculation purposes.

2. Includes the agreed amortisation of the post-tax cost of the cash related elements of the FY14 restructuring program,

consistent with the treatment described for these items in the FY14 annual report.

3. Excludes the post-tax cost in FY15 of the restructuring program announced in June 2015. And in subsequent years includes an

adjustment to EPS for LTI calculation purposes representing an amortisation of the restructuring cost over the next three years
beginning in FY16.

4. Consistent with prior practice, the impact of carried forward Australian tax losses has been excluded from EPS for LTI

purposes, including the recognition of the DTA asset up until end FY15 and from FY16 on the effect of recording a tax charge
on Australian income following full recognition of the tax losses.

5. Consistent with the policy to measure performance for incentive plans on a constant currency basis, P&L gains or losses arising

from FX movements are also excluded from reported EPS

6. As detailed elsewhere in this report, the Board has elected to exclude the costs of the portfolio review to be consistent with

the exclusion of the gain on sale on divestment of Sexual Wellness, anticipated in FY18

Table 4 c)

FY16 – FY18 LTI Plan

Threshold Target Stretch

FY17 – FY19 LTI Plan

EPS Growth CAGR
(1) CC EPS Growth (cents)

7%
26.6

8%
30.7

12%
47.9

(2) FY16 – FY17

2 year ‘achieved growth’

(3) FY18 ‘SW Growth

Projection’

0.4

1.5

0.4

1.5

0.4

1.5

EPS Growth CAGR
EPS Growth Total
(1) CC EPS Growth (cents)

(2) 17 1 year achieved

growth

(3) FY18 – FY19

Min Max

4% 10%
12.5% 33.1%
34.8

13.1

1.9

‘SW Growth Projection’

4.5

‘To Go’ EPS Growth
(cents) = (1-2-3)

24.7

28.8

46.0

‘To Go’ EPS Growth
(cents) = (1-2-3)

6.7

28.4

Note: 2 year achieved growth is
sum of l+m from table 4 b)

Note: 1 year achieved growth is
labelled m from table 4 b)

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Performance measures for FY18 awards

Performance measure and weighting

Organic Growth (one-third)

EPS (one-third)

ROCE (one-third)

Minimum Hurdle
(0% Vesting)

Maximum Hurdle
(100% Vesting)

14%

10%

15.5%

LTI outcomes under the
FY15 LTI grant

In FY15, the CEO was granted PSRs, which was approved at the Company’s 2014 Annual General
Meeting (AGM). Senior Executives were granted an equal proportion of cash and PSRs. The remainder
of the management team participating in the LTI Plan were granted cash-based awards. The awards
were subject to the achievement of a ROE gateway and a three year earnings growth target based on
EPS performance.

The gateway condition was calculated at 1.5 times the Company’s WACC when the plan vests.
The ROE gateway condition, calculated at 1.5x WACC was 11.2%. The Company’s actual ROE for
FY17 was 12.7%, exceeding the gateway condition.

The performance hurdle is based on growth in the Company’s EPS over the three year performance
period to 30 June 2017.

EPS Growth

PSRs and Cash Award Grant that Vest (%)

Threshold (7% p.a. CAGR)

Target (8% p.a. CAGR)

Stretch (12% p.a. CAGR)

Awards vest on a sliding scale between each point

25%

50%

100%

As previously disclosed, the Board selected US 105 cents EPS (being the underlying EPS for FY14
excluding the impact of deferred tax asset adjustments and non-operational tax items) as the base
EPS for FY14 (Base Point). Accordingly, the targets are US 128.0 cents (Threshold), US 132.3 cents
(Target) and US 147.5 cents (Stretch).

For the FY15 LTI Grant, the Board has excluded the effect of net changes in capital when
measuring EPS performance.

On this basis the actual FY17 EPS of US 100 cents means that 0% of these awards will vest.

The outcome for each executive is shown in the table below:

Maximum
Cash
Opportunity
(US$)

Maximum
Value
of PSRs
Granted
(US$)

Date Award
Granted

Cash
Award
Vested
(US$)

Number
of PSRs
Vested
(Shares)

Amount
of Cash
Forfeited
(US$)

Number
of PSRs
Forfeited
(Shares)

14-Aug-14

1,870,000

14-Aug-14
14-Aug-14
14-Aug-14
14-Aug-14
14-Aug-14
14-Aug-14
14-Aug-14

440,000
435,200
380,000
306,000
340,000
350,000
110,000

660,000
435,200
380,000
306,000
340,000
350,000
110,000

0
0
0
0
0
0
0

225,986

440,000
320,000
380,000
225,000
340,000
350,000
110,000

39,867
26,202
22,954
18,424
20,538
21,142
6,645

Name
Executive Director
Magnus R Nicolin
Other Executives
Neil Salmon
Peter Dobbelsteijn
Steve Genzer
Jeyan Heper
Joe Kubicek
Anthony Lopez
Mark Nicholls

Awards continue to be subject to clawback in accordance with the rules of the plan, but typically related
to acts of fraud, dishonesty or serious breach of obligations.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Board discretion

Exercise of discretion by the Board

Our remuneration policy aims to link management incentive outcomes to performance against strategic
objectives that drive long term shareholder value creation.

In certain circumstances, events or accounting rules (such as the recognition of previously unrecognised
tax losses as deferred tax assets) can create a favourable or unfavourable effect on earnings for a single
year that may cause a misalignment between incentive outcomes and shareholder value creation.
Similarly, changes in accounting policy as recommended by the Audit and Compliance Committee and
approved by the Board may be subject to discretionary exclusion. In these circumstances the Board
retains its discretion to incorporate adjustments to the calculation of incentive outcomes.

The HRC has developed a policy that will guide it in applying this discretion and that will be applied
consistently. The policy covers individually material items including restructuring charges, acquisitions
and divestments and equity capital issuance and repurchase.

For FY17, the Board exercised discretion to exclude costs related to the portfolio review.

The HRC will continue its practice of clearly explaining in its annual remuneration report the basis
and calculation of any adjustments made that have influenced incentive outcomes.

On a change of control, the Board has discretion to vest some or all of the LTI awards but, unless it uses
its discretion, awards will vest as if the applicable performance condition has met the target level of
performance (and without time pro-rating). In exercising this discretion, the Board will consider all
relevant circumstances, including performance against the various measures and conditions for the
part period up to the change of control event and the portion of the performance period which has
expired. Any restricted shares under the STI will be converted into ordinary shares, unless the Board
determines otherwise.

Change of control

Clawback

From FY18, the recovering and withholding provisions will be broadened and will now be applied
consistently across both the STI and LTI. The Board will have the ability to clawback incentives for
a period of up to three years from the date of payment/vesting and will cover the following events:

• Material misstatement of the financial statements

• Misconduct

• Error in calculation of the performance condition

• Serious reputational damage to the Group

Leaver treatment

If an Executive ceases his or her employment with Ansell at any time prior to the end of the performance
period, the Executive shall not be entitled to any STI payment. However, the HRC may, in its sole
discretion, pay a pro-rated award in certain circumstances (such as death, disablement, retirement,
or other approved situations).

If an Executive ceases his or her employment with Ansell at any time prior to the end of the vesting
period, the Executive shall not be entitled to any LTI award. However, the Board may, in its sole
discretion, pay a pro-rated award in certain circumstances such as death, disability, retirement
or any other reason approved by the Board.

Section 5 – Statutory Information
Executive Service Agreements
The remuneration and other terms of employment for Executives are covered in formal agreements or letters of offer.

Chief Executive Officer
The CEO, M Nicolin, was recruited as a US based executive and his contract reflects this. He has subsequently relocated to Belgium and
there has been no substantial change to the terms and conditions of his contract. He is engaged by the Group under an agreement which:

• does not specify a fixed term of engagement;

• provides that the Group may terminate the CEO’s engagement upon giving 12 months’ notice or payment in lieu, and may terminate

immediately in the case of willful 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;

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

• requires the CEO to give the Group at least six months’ notice of termination of services; and

• in order to protect the Group’s business interests, prohibits the CEO from engaging in any activity that would compete with the Group

for a period of 12 months following termination of his engagement for any reason.

The agreement entered into with the CEO has been drafted to comply with the Corporations Act regarding the payment of benefits
on termination.

Other Executives
N Salmon was recruited as a US based executive and his contract reflects this. He has subsequently relocated to Belgium and there has
been no substantial change to the terms and conditions of his contract. His services are engaged by the Group for an unlimited duration.
He is entitled to a separation fee upon termination by the Group (other than for gross misconduct) equal to 12 months’ base salary plus
certain other contractual entitlements. He is required to give the Group six months’ prior notice of termination of services.

S Genzer and M Nicholls, who are based in the United States, and A Lopez, who was seconded to the Group’s office in Brussels (returning
to the US in FY17), are employed ‘at will’ and as such, their service agreement does not specify a fixed term of employment. These
executives are entitled to a severance fee equal to 12 month’s base salary assuming a termination for any reason other than resignation,
performance issues or cause.

P Dobbelsteijn manages the sales and marketing operations of three major geographies being Europe, Middle East and Africa and
Asia Pacific. His services are engaged by the Group for an unlimited duration. He is entitled to a separation fee upon termination
by the Group (other than for gross misconduct) equal to 12 months’ base salary plus STI and LTI awards pro-rated according to the
applicable performance period and subject to final approval by the Board. He is required to give the Group three months’ prior
notice of resignation.

J Heper is a Belgium based executive who is employed by the Group for an unlimited duration. He is eligible for 10 week severance
benefits upon termination by the Group in accordance with applicable Belgian laws and regulations. He is required to give 5 weeks’
notice to the Group if he wishes to resign.

J Kubicek was employed under agreements entered into at the time of Ansell’s acquisition of the BarrierSafe Solutions International
business in January 2014. These employment agreements have a fixed two-year term through 2 January 2016. As this period has now
passed, employment continues on an ‘at-will’ basis.

Mandatory Shareholding Policy
Ansell has, for some years, been committed to encouraging strong alignment with shareholder interests. To encourage such alignment,
the Company has adopted a mandatory shareholding policy, known as the Share Purchasing Policy, which requires Directors and
Executives to purchase a multiple of their Director’s fees/base salary in Ansell shares over a set period.

The current level of mandatory shareholding requirement (applicable from FY17) are:

• CEO – 3 x base salary

• Executives – 1 x base salary

• Non-Executive Directors – 2 x annual Director’s fees

Executive and Non-Executive Directors are expected to achieve the above shareholdings within 10 years from its inception in
2013 or within 10 years of becoming a KMP if after 2013.

Vested but unexercised awards (such as restricted shares granted under the FY17 STI and FY16 SIP which are subject to holding
requirements) will be included in assessing whether an Executive meets the mandatory shareholding targets. Unvested equity
rights held pursuant to the incentive plans are not included in the target assessment.

Ansell has developed a mechanism to enable Directors and Executives to regularly purchase Ansell shares, known as the Voluntary
Share Purchasing Plan (VSPP). While optional, the VSPP facilitates compliance with the Share Purchasing Policy, while complying
with ASX trading rules and the restrictions of the Share Trading Policy (detailed below).

Under the VSPP, a pre-agreed amount of Ansell shares (by value) are acquired monthly on the ASX through a trustee company at the
prevailing market price and are transferred into the name of the applicable Executive/Director, but are subject to a restriction on
dealing until the Executive/Director ceases to hold office.

Share Trading Policy
Ansell has a Share Trading Policy which prohibits certain individuals within the Company, including KMP, from trading Ansell shares
other than during specified trading windows or in accordance with the VSPP. All KMP are required to declare to either the CEO (for Other
Executives) or the Chairman (for the CEO and Non-executive Directors) and the Company Secretary any share trades into which they enter
during trading windows for the purpose of disclosure on the ASX.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

The movement in the number of shares held by each KMP and the progress of each KMP during FY17 in achieving their respective share
ownership goals is as follows:

Table 5 a)

Non-Executive Directors
Glenn L L Barnes
FY17
FY16
Ronald J S Bell
FY17
FY16
John Bevan
FY17
FY16
L Dale Crandall
FY17
FY16
W Peter Day
FY17
FY16
Leslie A Desjardins1
FY17
FY16
Marissa T Peterson
FY17
FY16
Executive Director
Magnus R Nicolin2
FY17
FY16
Other Executives
Neil Salmon
FY17
FY16
Peter Dobbelsteijn
FY17
FY16
Steve Genzer
FY17
FY16
Jeyan Heper
FY17
FY16
Joe Kubicek
FY17
FY16
Anthony Lopez
FY17
FY16
Mark Nicholls
FY17
FY16

Held at
1 July

Purchases

Granted
Under
Awards

Net
Movement
Due to Other
Changes

Held at
30 June

% of Share
Ownership
Goals Met3

Target Year
to Comply

Target Year
Projected to
Comply

61,748
41,509

15,429
10,568

17,402
11,320

20,680
18,585

27,540
17,361

1,961
0

20,133
14,896

229,030
65,665

30,130
14,917

13,627
5,308

15,648
6,493

0
0

66,981
30,000

12,373
2,885

12,000
0

1,730
20,239

3,311
4,861

1,326
6,082

1,397
2,095

1,298
10,179

2,269
1,961

3,514
5,237

0
0

0
1,480

0
1,151

1,500
0

0
10,000

0
1,360

0
12,000

n/a
n/a

0
0

63,478
61,748

18,740
15,429

18,728
17,402

22,077
20,680

28,838
27,540

4,230
1,961

23,647
20,133

22,753
233,897

0
(70,532)

251,783
229,030

5,559
15,213

4,969
10,151

4,537
12,702

0
0

3,565
26,981

4,140
12,898

1,097
0

0
0

0
(3,312)

0
(4,698)

0
0

0
(4,770)

0
0

35,689
30,130

18,596
13,627

20,185
15,648

1,500
0

70,546
66,981

16,513
12,373

13,097
12,000

162%
129%

99%
69%

98%
78%

113%
86%

142%
111%

23%
9%

119%
84%

135%
78%

123%
43%

83%
25%

83%
27%

9%
0%

308%
124%

75%
23%

64%
24%

2023
2023

2025
2025

2023
2023

2024
2024

2023
2023

2026
2026

COMPLY

2018

COMPLY

2025

COMPLY

2018

2028

COMPLY

2019

2024

1. Leslie Desjardins was appointed as a Non-Executive Director on 30 November 2015, and in accordance with the policy, is required to be compliant with the policy

within a 10 year period.

2. In FY16 Magnus Nicolin sought leave to sell a portion of his shareholdings to pay for tax liabilities on past PSR awards and the Board authorised the sale in

accordance with the Group’s share trading policies.

3. The percentage of ownership goals met are based upon a multiple of an individual’s base pay or directors fees (as applicable).

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Executive statutory remuneration
Table 5 b)

US$

Executive Director

Magnus R Nicolin

Other Executives

Neil Salmon

Peter Dobbelsteijn

Steve Genzer

Jeyan Heper

Joe Kubicek

Anthony Lopez

Mark Nicholls

Total Executive Remuneration

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

Base Salary1
$

Share Based STI2
$

Cash Based STI

Other Benefits3
$

Retirement Plan Benefits4

Short Term Employee benefits

Post-employment Benefits

Share Based Payment Expense5

1,059,500

1,030,000

497,277

490,738

384,174

385,114

414,732

412,699

293,222

277,446

391,000

378,250

378,420

376,565

350,000

175,000

3,768,325

3,525,812

400,749

111,210

8,265

13,064

15,292

8,407

4,352

7,525

568,864

1,199,251

600,000

373,188

196,682

192,206

124,141

207,366

119,443

148,467

127,512

195,500

125,120

189,210

108,985

175,000

56,000

2,680,188

1,457,883

152,627

95,156

149,191

108,450

401,525

458,240

2,000

2,222

52,256

26,736

21,113

10,137

765,712

134,899

1,871

563

1,546,295

836,403

312,171

367,842

48,597

76,718

37,977

38,456

44,115

74,818

28,444

27,500

37,645

66,475

42,712

70,693

39,542

34,221

591,202

756,723

LTI

669,705

(1,042,559)

268,275

(154,445)

138,138

(56,182)

144,733

(105,021)

101,482

(24,611)

136,450

66,110

132,060

(101,208)

122,142

1,712,984

(1,417,916)

Cash6

LTI

SIP7

Total

499,200

(132,987)

150,645

(55,725)

93,105

(110,609)

99,536

(24,341)

(63,890)

78,200

(106,360)

90,821

(493,912)

1,011,507

3,794,002

1,549,639

1,447,739

735,801

1,162,285

987,149

826,010

493,088

639,162

410,242

790,114

660,402

1,512,466

574,395

696,080

265,784

10,867,860

5,676,500

1. Base Salary includes the base salary earned by the individual in FY17. The increases in base salary for Executives are made following a broad review which

considered pay increases in each jurisdiction, external benchmarking data and wider economic considerations. Increases for FY17 were 2.5% for the CEO and
0% to 5% for other executives.

2. STI represents amounts payable under the 2017 Short Term Incentive Plan.

3. Other includes benefits such as motor vehicle, executive expatriation and relocation allowances, executive insurance, expat tax equalisation payments and other

amounts.

4. Retirement benefits includes retirement benefits earned by the individual in FY17.

5. Share based payment expenses includes amounts provided in respect of the Group’s shared based LTI Plan. Primarily as a result of the cancellation of the FY14

grant, the Group reversed previously expensed amounts relating to these plans in FY16. As such, these reversals are being reflected in the negative amounts shown
above for FY16, even though such amounts are not receivable from the participants.

6. Cash based payment expenses includes amounts provided in respect of the Groups cash based LTI Plans. The negative amounts shown are due to the same factors

as note 5) above (share based LTI). Based on the FY17 results, nothing is considered payable under the remaining cash based LTI grants.

7. SIP represents amounts payable under the one-off Special Incentive Plan – which was explained in detail in the 2016 Remuneration Report.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Short Term Employee benefits

Post-employment Benefits

Share Based Payment Expense5

Base Salary1

Share Based STI2

Cash Based STI

Other Benefits3

Retirement Plan Benefits4
$

312,171

367,842

48,597

76,718

37,977

38,456

44,115

74,818

28,444

27,500

37,645

66,475

42,712

70,693

39,542

34,221

591,202

756,723

LTI
$

669,705

(1,042,559)

268,275

(154,445)

138,138

(56,182)

144,733

(105,021)

101,482

(24,611)

136,450

66,110

132,060

(101,208)

122,142

1,712,984

(1,417,916)

Executive statutory remuneration

Table 5 b)

US$

Executive Director

Magnus R Nicolin

Other Executives

Neil Salmon

Peter Dobbelsteijn

Steve Genzer

Jeyan Heper

Joe Kubicek

Anthony Lopez

Mark Nicholls

Total Executive Remuneration

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

1,059,500

1,030,000

497,277

490,738

384,174

385,114

414,732

412,699

293,222

277,446

391,000

378,250

378,420

376,565

350,000

175,000

3,768,325

3,525,812

400,749

111,210

8,265

13,064

15,292

8,407

4,352

7,525

568,864

152,627

95,156

149,191

108,450

401,525

458,240

2,000

2,222

52,256

26,736

21,113

10,137

765,712

134,899

1,871

563

1,546,295

836,403

1,199,251

600,000

373,188

196,682

192,206

124,141

207,366

119,443

148,467

127,512

195,500

125,120

189,210

108,985

175,000

56,000

2,680,188

1,457,883

1. Base Salary includes the base salary earned by the individual in FY17. The increases in base salary for Executives are made following a broad review which

considered pay increases in each jurisdiction, external benchmarking data and wider economic considerations. Increases for FY17 were 2.5% for the CEO and

0% to 5% for other executives.

2. STI represents amounts payable under the 2017 Short Term Incentive Plan.

amounts.

4. Retirement benefits includes retirement benefits earned by the individual in FY17.

3. Other includes benefits such as motor vehicle, executive expatriation and relocation allowances, executive insurance, expat tax equalisation payments and other

5. Share based payment expenses includes amounts provided in respect of the Group’s shared based LTI Plan. Primarily as a result of the cancellation of the FY14

grant, the Group reversed previously expensed amounts relating to these plans in FY16. As such, these reversals are being reflected in the negative amounts shown

above for FY16, even though such amounts are not receivable from the participants.

6. Cash based payment expenses includes amounts provided in respect of the Groups cash based LTI Plans. The negative amounts shown are due to the same factors

as note 5) above (share based LTI). Based on the FY17 results, nothing is considered payable under the remaining cash based LTI grants.

7. SIP represents amounts payable under the one-off Special Incentive Plan – which was explained in detail in the 2016 Remuneration Report.

Cash6

LTI
$

SIP7
$

Total
$

499,200

3,794,002

1,549,639

1,447,739

(132,987)

150,645

735,801

(55,725)

(110,609)

(24,341)

(63,890)

(106,360)

1,162,285

93,105

99,536

78,200

987,149

826,010

493,088

639,162

410,242

790,114

660,402

1,512,466

90,821

(493,912)

1,011,507

574,395

696,080

265,784

10,867,860

5,676,500

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Equity instruments
The below table details the movement in the number of Performance Rights (PRs) and PSRs over ordinary shares of Ansell Limited by the
CEO and Other Executives during the 2017 financial year.

Table 5 c)

Performance Rights

Magnus R Nicolin
2017
2016
Neil Salmon
2017
2016
Joe Kubicek
2017
2016
Performance Share Rights

Magnus Nicolin
2017
2016
Neil Salmon
2017
2016
Peter Dobbelsteijn
2017
2016
Steve Genzer
2017
2016
Jeyan Heper
2017
2016
Joe Kubicek
2017
2016
Anthony Lopez
2017
2016
Mark Nicholls
2017
2016

Held at 1 July 2016
or Date Appointed

PSRs Granted
during the Year

PRs/PSRs Vested
During the Year

PRs/PSRs Lapsed/Forfeited
During the Year

Held at
30 June 2017

0
104,357

0
15,213

0
26,981

435,230
701,136

76,400
67,830

46,144
64,624

44,388
69,966

31,528
18,424

38,462
38,495

40,700
68,544

13,038
6,644

0
0

296,834
209,244

118,908
36,532

61,228
19,942

64,150
21,434

44,980
13,104

60,480
17,924

58,534
19,558

54,138
6,394

0
-104,357

0
-15,213

0
-26981

0
-129,540

0
0

0
-10,151

0
-12,702

0
0

0
-12,898

0
0

0
-345,610

0
-27,962

0
-28,271

0
-34,310

0
0

0
-17,957

0
-34,504

0
0

732,064
435,230

195,308
76,400

107,372
46,144

108,538
44,388

76,508
31,528

98,942
38,462

99,234
40,700

67,176
13,038

1. PSR’s were granted during FY17 pursuant to the FY17 LTIP. The Fair Values and factors and assumptions used in the determining the fair values of the PSRs

applicable for FY17 are summarised in Table 5d) below.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Table 5 d) – PSR Fair Values at Grant Date

Grant Date

Vesting Date

Fair Value

Share Price on
Grant Date

Risk Free
Interest Rate

Dividend Yield

FY15 LTIp PSRs

FY16 LTIp PSRs

FY17 LTIp PSRs

14/8/2014

13/8/2015

11/8/2016

30/6/2017

30/6/2018

30/6/2019

A$17.73

A$18.53

A$17.95

A$19.05

A$20.20

A$19.49

n/a

2.5%

3.0%

2.9%

Awards that do not vest as at Vesting date automatically lapse.

Section 6 – Non-Executive Directors
Policy and approach to setting fees

Overview of policy

Aggregate fees approved by shareholders

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. Fees are not linked to the
performance of Ansell so that independence and impartiality is maintained.

To reflect the global representation that exists in the composition of the current Board
(which includes Australian, US and UK resident directors), Directors fees are payable in
US dollars, however Directors may elect to be paid in their local currency of choice. Thus
Directors may be subject to currency fluctuations as their payment is done by converting
their US dollar fees into their local currency using the applicable monthly spot exchange
rates at the time of payment.

Board and Committee fees are set by reference to a number of relevant considerations
including:

• responsibilities and accountabilities attaching to the role of Director;

• time commitment expected of Directors;

• fees paid by peer companies;

• independent advice received from external advisors;

• the global nature of our businesses (to ensure that the Directors’ fee attracts and

retains the best international Directors); and

• the requirement to travel internationally to familiarise oneself with international

operations and for required meetings.

The current aggregate fee pool for Non-Executive Directors of US$1,600,000 was
approved by shareholders at the 2014 AGM. The fee pool in US$ reflects the fact
the vast majority of business operations are run from outside Australia.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Base fees for 2017

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

Fees for Non-Executive Directors during FY17 were as follows:

Base fees (Board)

Non-Executive Chairman

US$320,000

Non-Executive Deputy Chairman

US$160,000

Non-Executive Director

Committee fees

US$116,500

Committee
Chair
(Pre-February
2017)

Audit and Compliance Committee

US$30,000

HR Committee

Risk Committee

US$24,000

Committee
Chair
Post-February
2017)

US$30,000

Committee
member

US$12,000

The Board resolved, effective February 2017, that the appropriate fee for each Chair
role was $30,000. This reflects the time commitment and level of responsibility now
associated with these roles.

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

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.

A travel allowance of US$15,000 per annum is paid to each Non-Executive Director,
which is in addition to the above fees.

Superannuation contributions are made on behalf of the Non-Executive Directors at
a rate of 9.5% as required by Australian law. For non-Australian based Directors, these
payments are pro-rated for the period of time spent in Australia. The Directors fees
above are inclusive of any Superannuation payments payable by law.

FY18
The fees noted above will remain in place for FY18.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Non-Executive Directors’ statutory remuneration
Details of Non-Executive Directors’ remuneration are set out in the following table:

Table 5 e)

Non-Executive Directors

G LL Barnes (Chairman)

J A Bevan (Deputy Chairman)3

R J S Bell

L D Crandall

W P Day

L A Desjardins4

A H Lo5

M T Peterson

Total Non-Executive Directors’ Remuneration

Directors Fees1

Superannuation2

Year

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

335,000

148,664

143,311

160,401

153,685

165,326

165,722

158,138

159,749

153,401

90,708

n/a

64,054

167,353

165,722

1,288,283

1,277,951

14,441

12,189

2,119

1,815

2,174

1,778

15,362

13,751

2,099

n/a

738

2,487

1,778

38,682

32,049

Total

335,000

163,105

155,500

162,520

155,500

167,500

173,500

155,500

90,708

n/a

64,792

169,840

167,500

1,326,965

1,310,000

1. Directors Fees include Base and Committee Fees plus travel allowances less Superannuation (see footnote (2) below). All Fees are expressed in US$. Due to

changes to Committee Fees (as documented on page 84), the Fees have changed as compared with the prior year. The methodology of converting the Fees into
the base currency of the Directors has not changed.

2. Superannuation contributions are made on behalf of the Non-Executive Directors at a rate of 9.5% as required by Australian law. For non-Australian based

Directors, these payments are pro-rated for the period of time spent in Australia.

3. Following his appointment as Deputy Chairman on 10 February 2017, the Board resolved to pay Mr J Bevan a fee equivalent to half the Chairman’s fee. This fee, plus

travel allowances, represents the entire Board and Committee fees earned by Mr J Bevan.

4. Mrs L Desjardins was appointed on 30 November 2015 and her Directors fees and associated entitlements reflects a part year entitlement in FY16 from her

appointment.

5. Mrs A Lo retired from the Board on 30 November 2015 and her Directors fees and associated entitlements reflects a part year entitlement up to her retirement date

in FY16.

The Composition of the Committees is summarised in the Report by the Directors.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Non-Executive Directors’ Shares
As noted above, the Non-Executive Directors are expected to invest an appropriate percentage of their gross fees in acquiring Ansell
shares on market to achieve a shareholding worth two times’ annual Non-Executive Directors’ fees within a 10-year period from the
earlier of 2013 or their start date. Under the Voluntary Share Purchasing Plan, a pre-agreed amount of Ansell shares (by value) are
acquired monthly on the ASX through a trustee company at the prevailing market price and are transferred into 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 throughout FY17 pursuant to the Voluntary Share
Purchasing Plan at the following prices per share. The second table shows the total number of shares purchased by the directors,
both under the Voluntary Share Purchasing Plan and individual purchases in compliance with the Share Trading Policy.

Month

July 2016

August 2016

September 2016

October 2016

November 2016

December 2016

January 2017

February 2017

March 2017

April 2017

May 2017

June 2017

Share Price

Director

Total Purchased in FY17

Glenn L L Barnes

Ronald J S Bell

John Bevan

L Dale Crandall

W Peter Day

Leslie A Desjardins

Marissa Peterson

1,730

3,311

1,326

1,397

1,298

2,269

3,514

19.40

22.46

23.15

21.62

22.63

24.76

23.79

21.24

24.16

n/a*

* Voluntary Share Purchasing Plan suspended in compliance with continuous disclosure obligations.

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Section 7 – Glossary
Board means the Board of Directors of Ansell Limited.

Capex is an abbreviation for Capital Expenditure and means the Payments for property, plant, equipment (PP&E) and intangibles less
the proceeds from sale of PP&E.

Constant Currency financial reporting is supplemental information. It is provided using the best estimate of the prior year results
translated at the foreign currency exchange rates applicable to the current period and compared to the financial performance for
the current year. As such, it is non-IFRS financial information.

CAGR means Compound Average Growth Rate which as used in this document measures the average year-over-year growth rate
of a financial metric over the specified time period.

Corporations Act means the Corporations Act 2001 (Cth).

EBIT means all profits of Ansell before taking into account interest payments and income taxes.

EBITDA means EBIT before Depreciation and Amortisation.

EMEA means Europe, Middle East and Africa.

EPS means Earnings Per Share which means the portion of Ansell’s profit which is allocated to each outstanding ordinary fully-paid share.

Executive or Group Executive in this report refers to the CEO and Other Executive KMP.

FY16 means the 2016 financial year commencing on 1 July 2015 and ending on 30 June 2016.

FY17 means the 2017 financial year commencing on 1 July 2016 and ending on 30 June 2017.

FY18 means the 2018 financial year commencing on 1 July 2017 and ending on 30 June 2018.

FY19 means the 2019 financial year commencing on 1 July 2018 and ending on 30 June 2019.

HRC means the Human Resources Committee of the Board.

KMP means the Key Management Personnel of Ansell, which comprises all Directors (executive and non-executive) and those executives
who have authority and responsibility for planning, directing and controlling the activities of the Group.

Long Term Incentive (LTI) means the Ansell Long Term Incentive Plan which is subject to the rules of the Ansell Long Term Incentive
Plan as periodically approved by the Board.

Operating Cash Flow as referred to in the Remuneration Report, means net receipts from customers per the Consolidated Statement
of Cash Flows adjusted for Capex (see above), and Interest received and paid (Net Interest).

ANSELL LIMITED ANNUAL REPORT 2017Remuneration Report continued

Other Executives means the group of people who are KMP but are not Non-executive Directors or the CEO.

Organic Growth means the change in total revenue achieved by normal business activities such as customer base expansion or new
product development. It excludes the effects of corporate developments such as mergers, acquisitions, divestments and exiting lines
of business.

PSRs means Performance Share Rights.

Profit Attributable means those profits of the Company which are available to the shareholders for distribution.

Realised Pay means the pay actually received/receivable by the executive during the financial year, including salary, benefits, STI in
relation to the relevant financial year and any equity incentives which vested in relation to the completion of the relevant financial year.

ROCE means Return on Capital Employed which is the amount of EBIT returned as a percentage of the average funds that are employed
(both equity and debt used in the business).

ROE Gateway means the return on equity required for the successful achievement of the relevant award.

Short Term Incentive Plan (STI) or (STIP) means the Ansell Short Term Incentive Plan which is subject to the rules of the Ansell Short
Term Incentive Plan as periodically approved by the Board.

TSR means Total Shareholder Return which means the total financial return which an investor receives from holding shares
in Ansell, assuming dividends paid are reinvested in Ansell shares.

TSR (A$) means Total Shareholder Return calculated in Australian dollars.

Working Capital is the balance as defined in Note 7 to the Financial Statements.

Underlying means, in connection with Underlying EPS and Underlying Profit Attributable, the respective EPS or Profit Attributable
which is adjusted to exclude certain items (which might relate to one-off or extraordinary items). The exclusion of any items from
the underlying result is approved by Ansell’s Board. The underlying measure may also be used in connection with the calculation
of the vesting of the LTI Plan.

WACC means the Weighted Average Cost of Capital which is a calculation of the average cost to Ansell of the debt and equity
capital employed in the business.

ANSELL LIMITED ANNUAL REPORT 2017Consolidated Income Statement
of Ansell Limited and Subsidiaries for the year ended 30 June 2017

Continuing operations

Revenue

Sales revenue

Expenses

Cost of goods sold

Distribution

Selling, general and administration

Total expenses, excluding financing costs

Net financing costs

Profit before income tax

Income tax expense

Profit from continuing operations

Discontinued operations

Profit from discontinued operations, net of tax

Profit for the period

Profit for the period is attributable to:

Ansell Limited shareholders

Non-controlling interests

Profit for the period

Earnings per share from continuing operations:

Basic Earnings Per Share

Diluted Earnings Per Share

Earnings per share from discontinued operations:

Basic Earnings Per Share

Diluted Earnings Per Share

2017
US$m

2016^
Restated
US$m

Note

1,374.5

1,352.8

(833.3)

(60.7)

(302.7)

(827.9)

(60.9)

(258.3)

(1,196.7)

(1,147.1)

(22.7)

155.1

(33.9)

121.2

(22.2)

183.5

(43.5)

140.0

4(a)

18(b)

29.0

150.2

21.9

161.9

147.7

2.5

150.2

159.1

2.8

161.9

2017
US cents

2016
US cents

81.0

80.0

19.1

18.9

91.5

91.0

13.6

13.5

^ In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations prior year comparatives have been restated to be consistent with
disclosures for 30 June 2017. Refer to Note 18(b) Disposal Group held for sale.

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

ANSELL LIMITED ANNUAL REPORT 2017
Consolidated Statement of Comprehensive Income
of Ansell Limited and Subsidiaries for the year ended 30 June 2017

Profit for the period

Other comprehensive income

Items that will not be reclassified to the Income Statement:

Retained earnings

2017
US$m

150.2

2016
US$m

161.9

Remeasurement of defined benefit superannuation/post retirement health benefit plans

Tax (expense)/benefit on items that will not be reclassified to the Income Statement

Total items that will not be reclassified to the Income Statement

2.9

(1.5)

1.4

(3.8)

1.3

(2.5)

Items that may subsequently be reclassified to the Income Statement:

Foreign currency translation reserve

Net exchange differences on translation of financial statements of foreign subsidiaries

5.0

(30.9)

Hedging reserve

Net movement in effective hedges for year

Tax expense on items that may subsequently be reclassified to the Income Statement

Total items that may subsequently be reclassified to the Income Statement

Other comprehensive income for the period, net of tax

Total comprehensive income for the period

Attributable to:

Ansell Limited shareholders

Non-controlling interests

Total comprehensive income for the period

Attributable to Ansell Limited shareholders:

From continuing operations

From discontinued operations

Total comprehensive income for the period, attributable to Ansell Limited shareholders

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

0.4

(0.3)

5.1

6.5

156.7

154.1

2.6

156.7

124.6

29.5

154.1

(6.4)

(0.5)

(37.8)

(40.3)

121.6

119.7

1.9

121.6

104.1

15.6

119.7

ANSELL LIMITED ANNUAL REPORT 2017Consolidated Balance Sheet
of Ansell Limited and Subsidiaries for the year ended 30 June 2017

Current assets

Cash and cash equivalents

Trade and other receivables

Derivative financial instruments

Inventories

Other current assets

Assets held for sale

Total current assets

Non-current assets

Trade and other receivables

Derivative financial instruments

Property, plant and equipment

Intangible assets

Deferred tax assets

Other non-current assets

Total non-current assets

Total assets

Current liabilities

Trade and other payables

Derivative financial instruments

Interest bearing liabilities

Provisions

Current tax liabilities

Liabilities held for sale

Total current liabilities

Non-current liabilities

Trade and other payables

Derivative financial instruments

Interest bearing liabilities

Provisions

Retirement benefit obligations

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities

Total liabilities

Net assets

Equity

Issued capital

Reserves

Retained profits

Total equity attributable to Ansell Limited shareholders

Non-controlling interests

Total equity

Note

6(a)

7(a)

15(c)

7(b)

18(b)

15(c)

4(b)

7(c)

15(d)

18(b)

15(d)

12(a)

4(c)

2017
US$m

316.6

189.9

4.6

331.9

16.8

200.9

2016*
US$m

272.7

223.5

8.2

322.8

19.4

–

1,060.7

846.6

2.7

4.0

217.9

1,049.8

88.5

26.9

1,389.8

2,450.5

2.6

4.9

245.0

1,077.3

90.6

23.6

1,444.0

2,290.6

222.5

235.2

7.9

3.8

56.7

29.0

42.8

5.8

5.0

48.8

19.9

–

362.7

314.7

1.3

0.8

4.1

5.0

716.7

686.6

8.2

19.0

89.9

23.2

859.1

1,221.8

1,228.7

10.6

23.1

89.5

20.3

839.2

1,153.9

1,136.7

13(a)

1,142.2

1,146.9

(78.2)

146.9

(88.3)

62.4

1,210.9

1,121.0

17.8

15.7

1,228.7

1,136.7

* In accordance with AASB 5 Non-current Assets held for Sale and Discontinued Operations prior year comparatives have not been restated for the impact
of the Disposal Group held for sale. Refer to Note 18(b) Disposal Group held for sale.

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

ANSELL LIMITED ANNUAL REPORT 2017

Consolidated Statement of Changes in Equity
of Ansell Limited and Subsidiaries for the year ended 30 June 2017

Total equity

Balance at the beginning of the financial year

Total comprehensive income for the period attributable to:

Ansell Limited shareholders

Non-controlling interests

Transactions with owners attributable to Ansell Limited shareholders:

Shares issued under Dividend Reinvestment Plan

Share buy-back

Share-based payments reserve

Dividends

Transactions with owners attributable to non-controlling interests:

Dividends

Total equity at the end of the financial year

Share capital

Balance at the beginning of the financial year

Transactions with owners as owners:

Shares issued under Dividend Reinvestment Plan

Share buy-back

Balance at the end of the financial year

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

2017
US$m

2016
US$m

1,136.7

1,166.6

154.1

2.6

119.7

1.9

4.0

(8.7)

4.7

(64.3)

5.4

(88.1)

(2.2)

(65.6)

(0.4)

(1.0)

1,228.7

1,136.7

1,146.9

1,229.6

4.0

(8.7)

5.4

(88.1)

1,142.2

1,146.9

ANSELL LIMITED ANNUAL REPORT 2017Consolidated Statement of Changes in Equity continued
of Ansell Limited and Subsidiaries for the year ended 30 June 2017

Reserves

Share-based payments reserve

Balance at the beginning of the financial year

Transactions with owners as owners:

Charge/(credit) to the Income Statement

Balance at the end of the financial year

Hedging reserve

Balance at the beginning of the financial year

Comprehensive income for the period:

Net movement in effective hedges

Balance at the end of the financial year

General reserve

Balance at the beginning of the financial year

Transfer from retained profits

Balance at the end of the financial year

Foreign currency translation reserve

Balance at the beginning of the financial year

Comprehensive income for the period:

Net exchange differences on translation of financial statements of foreign subsidiaries

Balance at the end of the financial year

Transactions with non-controlling interests

Balance at the beginning of the financial year

Balance at the end of the financial year

Fair value reserve

Balance at the beginning of the financial year

Balance at the end of the financial year

2017
US$m

2016
US$m

43.0

45.2

4.7

47.7

(2.2)

43.0

(2.2)

0.1

(2.1)

11.7

0.3

12.0

4.7

(6.9)

(2.2)

11.6

0.1

11.7

(132.5)

(102.5)

5.0

(127.5)

(30.0)

(132.5)

(10.9)

2.6

(10.9)

2.6

Total reserves at the end of the financial year

(78.2)

(88.3)

Retained profits

Balance at the beginning of the financial year

Transfer to reserves

Comprehensive income for the period:

Net profit attributable to Ansell Limited shareholders

Remeasurement of defined benefit superannuation/post retirement health benefit plans net of tax

Dividends paid

Balance at the end of the financial year

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

62.4

(0.3)

147.7

1.4

(64.3)

146.9

(28.5)

(0.1)

159.1

(2.5)

(65.6)

62.4

ANSELL LIMITED ANNUAL REPORT 2017Consolidated Statement of Cash Flows
of Ansell Limited and Subsidiaries for the year ended 30 June 2017

Cash flows related to operating activities

Receipts from customers

Payments to suppliers and employees

Net receipts from operations

Income taxes paid

Net cash provided by operating activities

Cash flows related to investing activities

Payments for businesses, net of cash acquired

Payments for property, plant, equipment and intangible assets

Payments for transaction costs associated with disposal group held for sale

Proceeds from the sale of a subsidiary

Proceeds from the sale of property, plant and equipment

Net cash used in investing activities

Cash flows related to financing activities

Proceeds from borrowings

Repayments of borrowings

Net proceeds from borrowings

Payments for share buyback

Dividends paid – Ansell Limited shareholders

Dividends paid – Non-controlling interests

Interest received

Interest and financing costs paid

Net cash used in financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the financial year

Effects of exchange rate changes on the balances of cash and cash equivalents
held in foreign currencies at the beginning of the financial year

Cash and cash equivalents at the end of the financial year

Note

2017
US$m

2016*
US$m

1,607.6

(1,355.6)

252.0

(35.8)

216.2

1,583.4

(1,321.3)

262.1

(29.8)

232.3

6(b)

(56.1)

(51.0)

(2.9)

–

2.1

(107.9)

74.2

(49.9)

24.3

(8.7)

(60.3)

(0.4)

3.6

(24.9)

(66.4)

41.9

272.7

2.0

316.6

–

(67.2)

–

41.5

2.0

(23.7)

44.8

(81.0)

(36.2)

(88.1)

(60.2)

(1.0)

4.1

(26.4)

(207.8)

0.8

281.4

(9.5)

272.7

3(a)

6(a)

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

ANSELL LIMITED ANNUAL REPORT 2017Notes 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 and clothing and is organised around three Global Business Units ('GBUs') as detailed
in Note 2:

• Industrial GBU;

• Medical GBU; and

• Single Use GBU.

As a result of the execution of a binding agreement for the sale of the Sexual Wellness business the results of this business are reported
as a Discontinued Operation. Refer to Note 18(b) Disposal Group held for sale.

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 authorised for issue by the Board of Directors on 14 August 2017.

Basis of accounting
The Financial Report is presented in United States 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 Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 dated
31 March 2016 and in accordance with the Instrument, 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.

There has been no change to the Group’s accounting policies during the financial year.

New accounting standards issued but not yet applied
IFRS 15/AASB 15 Revenue from Contracts with Customers establishes a comprehensive framework for determining whether, how much,
and when revenue is recognised. It replaces existing revenue recognition guidance, including IAS 18/AASB 118 Revenue, IAS 11/AASB 111
Construction contracts, and IFRIC 13/Australian Interpretations 13 Customer Loyalty Programmes. IFRS 15/AASB 15 is effective for
annual reporting periods beginning on or after 1 January 2018 (financial year commencing 1 July 2018 for the Group), with early
adoption permitted. The Group has assessed the impact on its consolidated financial statements resulting from the application of IFRS
15/AASB 15 and has determined that this will have no material impact.

IFRS 16/AASB 16 Leases removes the classification of leases as either operating leases or finance leases. IFRS 16/AASB 16 introduces
a single lessee accounting model and requires a lessee to recognise a right-of-use asset representing its right to use the underlying
leased asset and a lease liability representing its obligations to make lease payments. Short-term leases (less than 12 months) and
leases of low-value assets (such as personal computers) are exempt from the lease accounting requirements. There are also changes in
accounting over the life of the lease. In particular, companies will now recognise a front-loaded pattern of expense for most leases, even
when they pay constant annual rentals. IFRS 16/AASB 16 is effective for annual reporting periods beginning on or after 1 January 2019
(financial year commencing 1 July 2019 for the Group), with early adoption permitted. The Group is assessing the potential impact on its
consolidated financial statements resulting from the application of IFRS 16/AASB 16.

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

1. Summary of Significant Accounting Policies continued

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 is
exposed to, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through
its power over the entity. 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.

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
recognised 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; and

• 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. When an overseas subsidiary is sold the cumulative
amount recognised the foreign currency translation reserve relating to the subsidiary is recognised in the income statement as part of the
gain or loss on sale.

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 recognised whenever the carrying amount of a non-current asset exceeds its
recoverable amount. The impairment loss is recognised 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 of disposal and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a post-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 (CGU) 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.

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements 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 recognised 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:

Business combinations
A business acquisition requires judgement with respect to the determination of the fair value of purchase consideration given and the
fair value of identifiable assets and liabilities acquired. Many of these assets and liabilities either given up or acquired are not normally
traded in active markets, and thus management judgement is required in determining their fair values. Management judgement is also
required in ascertaining the assets and liabilities, which should be recognised, in particular with respect to intangible assets such as
brand names, customer relationships, patents and trademarks and contingent liabilities.

Current asset provisions
In the course of normal trading activities, management uses its judgement in establishing the net realisable 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/amortised
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 CGUs. These assumptions are detailed in Note 9.

Income tax
The Group operates in a number of tax jurisdictions and needs to consider their varying complexities, differing tax rules and the
changing tax environments. The Group has processes to assess and manage these issues including the use of external tax advisors.

The reviews undertaken to determine whether a deferred tax asset should be recognised 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 recognised 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 utilised in the determination of the Group’s defined benefit superannuation plan obligations.
These assumptions are detailed in Note 12.

Other accounting policies
Other accounting policies that summarise the measurement basis used and are relevant to an understanding of the financial
statements are provided throughout the notes to the financial statements.

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

2. Segment Information
The Group comprises the following main operating segments:

Industrial GBU: multi-use hand, foot and body protection solutions for industrial worker environments and specialty applications.

Medical GBU: surgical and examination gloves, healthcare safety devices and active infection prevention products for healthcare
professionals and patients.

Single Use GBU: single use industrial application gloves.

Operating Segments

Industrial
US$m

Medical
US$m

Single Use
US$m

Corporate
US$m

Continuing
Operations
US$m

Discontinued
Operations
US$m

Total
Group
US$m

655.9

399.6

319.0

–

1,374.5

225.2

1,599.7

79.8

47.0

63.1

Profit before income tax expense

79.8

47.0

63.1

(12.1)

(22.7)

(34.8)

177.8

(22.7)

155.1

(33.9)

121.2

(1.7)

40.0

–

40.0

(11.0)

29.0

(0.8)

217.8

(22.7)

195.1

(44.9)

150.2

(2.5)

119.5

28.2

147.7

735.2

119.8

19.5

29.6

480.8

74.0

10.4

14.3

552.2

40.4

4.5

1.6

481.4

944.8

6.4

0.8

2,249.6

1,179.0

40.8

46.3

200.9

42.8

2,450.5

1,221.8

4.1

4.7

44.9

51.0

1. The current year’s results of continuing operating segments have been impacted by the absorption of corporate costs that were allocated to the Sexual Wellness

(Discontinued) operating segment in the prior year.

654.8

396.3

301.7

–

1,352.8

220.0

1,572.8

89.0

–

52.3

–

64.6

–

Profit before income tax expense

89.0

52.3

64.6

(8.3)

8.1

(22.2)

(22.4)

197.6

8.1

(22.2)

183.5

(43.5)

140.0

(1.5)

31.0

228.6

–

31.0

(9.1)

21.9

(1.3)

8.1

(22.2)

214.5

(52.6)

161.9

(2.8)

138.5

20.6

159.1

704.8

107.6

16.1

25.2

468.7

78.7

8.9

22.5

474.8

28.0

4.2

3.5

437.8

889.7

4.9

7.2

2,086.1

1,104.0

34.1

58.4

204.5

49.9

2,290.6

1,153.9

3.9

8.8

38.0

67.2

2. In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations prior year comparatives have been restated to be consistent with

disclosures for 30 June 2017. Refer to Note 18(b) Disposal Group held for sale.

2017

Sales revenue

Profit/(loss) before net financing
costs and income tax expense1

Net financing costs

Income tax expense

Profit after income tax

Non-controlling interests

Net profit attributable to
Ansell Limited shareholders

Segment assets

Segment liabilities

Segment depreciation
and amortisation

Segment capital expenditure

20162

Sales revenue

Profit/(loss) before gain sale of a
subsidiary and net financing costs
and income tax expense

Gain on sale of a subsidiary

Net financing costs

Income tax expense

Profit after income tax

Non-controlling interests

Net profit attributable to
Ansell Limited shareholders

Segment assets

Segment liabilities

Segment depreciation and
amortisation

Segment capital expenditure

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

Regional information
Sales Revenue is disclosed in the four geographical regions based on where the products are sold to external customers.

Assets (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, Sri Lanka, South Korea, China and Vietnam.

Europe, Middle East and Africa: manufacturing facilities in Lithuania and Portugal.

Latin America and Caribbean: manufacturing facilities in Brazil.

North America: manufacturing facilities in USA and Mexico.

The table set out below summarises:

(i) Regional sales revenue from continuing operations.

(ii) Regional assets related to continuing operations at 30 June 2017 and all operations at 30 June 2016.

Regions
Asia Pacific
Europe, Middle East and Africa
Latin America and Caribbean
North America
Total Regions

Sales Revenue

Regional Assets

2017
US$m

168.4
485.0
93.6
627.5
1,374.5

2016^
Restated
US$m

159.6
484.1
75.8
633.3
1,352.8

2017
US$m

312.8
180.4
49.4
223.8
766.4

2016
US$m

376.4
187.8
49.4
213.2
826.8

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

(i) Sales revenue from continuing operations.

(ii) Assets related to continuing operations at 30 June 2017 and all operations at 30 June 2016.

Sales Revenue

Assets

3. Profit Before Income Tax
This table summarises expenses by nature from continuing operations:

2017
US$m

116.6

2016^
Restated
US$m

96.3

2017
US$m

2016
US$m

47.4

47.6

(a) Profit before income tax has been arrived at after charging/(crediting) the following items:

Interest expense
Other financing costs
Interest income
Net financing costs

Research and development costs expensed as incurred
Previously capitalised development costs written off
Research and development costs

Bad debts written off
Provision for impairment of trade receivables – recognised
Net bad debts expense and provision for impairment of trade debtors

^ In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations prior year comparatives have been

restated to be consistent with disclosures for 30 June 2017. Refer to Note 18(b) Disposal Group held for sale.

2017
US$m

2016^
Restated
US$m

23.3
3.0
(3.6)
22.7

11.0
0.2
11.2

–
–
–

23.7
2.6
(4.1)
22.2

10.5
0.9
11.4

0.1
0.1
0.2

ANSELL LIMITED ANNUAL REPORT 2017

Notes to the Financial Statements continued

3. Profit Before Income Tax continued

Wages and salaries

Increase in provision for employee entitlements

Defined contribution superannuation plan expense

Defined benefit superannuation plan expense

Equity settled share-based payments expense

Employee benefits expense

Net foreign exchange loss/(gain)

Loss/(profit) on the sale of property, plant and equipment

Gain on the sale of a subsidiary

Operating lease rentals

Write-down in value of inventories

2017
US$m

222.7

11.3

13.7

0.3

4.7

2016^
Restated
US$m

202.4

12.3

13.0

2.8

(2.2)

252.7

228.3

1.2

0.1

–

24.7

4.9

(0.7)

(1.1)

(8.1)

23.5

5.9

^ In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations prior year comparatives have been restated to be consistent
with disclosures for 30 June 2017. Refer to Note 18(b) Disposal Group held for sale.

(b) Recognition and measurement
Sales revenue
Sales revenue is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and allowances.
External sales are recognised when the significant risks and rewards of ownership of the goods have been transferred to the buyer and
can be measured reliably.

100

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

4. Income Tax

(a) Income tax expense

2017
US$m

2016^
Restated
US$m

Prima facie income tax calculated at 30% (2016: 30%) on profit before income tax

46.5

55.1

Reduced taxation arising from:

Investment and export incentive allowances

Net (lower)/higher overseas tax rates

Utilisation/recognition of previously unbooked tax losses

Other permanent differences

Income tax expense attributable to profit before income tax

Income tax expense attributable to profit before income tax is made up of:

Current year income tax

Deferred income tax attributable to:

Increase in deferred tax liability

(Increase)/decrease in deferred tax asset

(9.3)

(0.4)

(2.6)

(0.3)

33.9

(8.9)

0.8

(7.3)

3.8

43.5

35.4

27.7

0.4

(1.9)

33.9

4.5

11.3

43.5

^ In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations prior year comparatives have been restated to be consistent with

disclosures for 30 June 2017. Refer to Note 18(b) Disposal Group held for sale.

Income tax benefit/(expense) recognised in other comprehensive income

Remeasurement of defined benefit superannuation/post retirement health benefit plans

Movement in effective hedges for year

2017
US$m

2016
US$m

1.5

0.3

1.8

(1.3)

0.5

(0.8)

101

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

4. Income Tax continued

The following summarises deferred tax assets and liabilities related to continuing operations at 30 June 2017 and all operations
at 30 June 2016:

(b) Deferred tax assets

Deferred tax assets arising from:

Deductible temporary differences

Accumulated tax losses

Deferred tax assets are attributable to the following:

Trading stock tax adjustments

Provisions

Accruals

Amortisation of intangible assets

Assets/liabilities held for sale

Accumulated tax losses

Total deferred tax assets

Details of the movement in the balance of deferred tax assets are as follows:

Balance at the beginning of the financial year

(Over)/under provision of prior year balance

Amount charged to the Income Statement

Amount (charged)/credited to other comprehensive income

Reclassification to assets held for sale

Net exchange differences on translation of foreign subsidiaries

Balance at the end of the financial year

Deferred tax liabilities are attributable to the following:

Depreciation on plant and equipment

Amortisation of intangible assets

Other

Total deferred tax liabilities

Details of the movement in the balance of deferred tax liabilities are as follows:

Balance at the beginning of the financial year

Under provision of prior year balance

Amount charged to the Income Statement

Reclassification to liabilities held for sale

Net exchange differences on translation of foreign subsidiaries

Balance at the end of the financial year

102

2017
US$m

2016
US$m

51.8

36.7

88.5

5.9

19.6

7.1

11.5

7.7

36.7

88.5

45.2

45.4

90.6

6.4

19.9

6.0

12.9

–

45.4

90.6

101.2

(0.1)

1.9

(1.8)

(4.1)

2.0

88.5

4.2

85.7

–

89.9

1.6

(11.3)

0.8

–

(1.7)

90.6

3.8

85.2

0.5

89.5

84.4

0.7

0.4

(0.6)

(0.1)

1.0

4.5

–

(0.4)

89.9

89.5

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

(d) Recognition and measurement
Current tax
Income tax on the profit or loss for the financial year comprises current and deferred tax and is recognised in the Income Statement.
Current tax is the expected tax payable or receivable on taxable income for the financial year, using tax rates enacted or substantively
enacted at reporting date, and any adjustments to tax payable or receivable in respect of previous years.

Deferred tax
Deferred tax balances are determined using the Balance Sheet method which calculates temporary differences based on the carrying
amounts of an entity’s assets and liabilities in the Balance Sheet and their associated tax bases. The amount of deferred tax provided
is based on the expected manner of realisation of the asset or settlement of the liability, using tax rates enacted or substantively
enacted at reporting date. 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 recognised only to the
extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets
are reduced to the extent it is no longer probable that the related tax benefit will be realised.

The Group has not recognised the tax value of deferred tax assets in respect of trading tax losses of $13.8 million (2016: $14.3 million)
and $54.8 million of capital losses (2016: $113.4 million). The reduction in unbooked capital losses during the year was due to the tax
attributes of the expected sale of the Sexual Wellness business. Deferred tax assets in respect of these unbooked losses have not been
recognised as it is not probable that future taxable profits will be available against which these losses can be utilised.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive
income. In this case, the associated tax is also recognised in other comprehensive income.

5. Earnings Per Share

Earnings reconciliation

Profit for the period

Less profit for the period attributable to non-controlling interests

Basic earnings

From continuing operations
From discontinued operations

Diluted earnings

From continuing operations

From discontinued operations

Weighted average number of ordinary shares used as the denominator

Number of ordinary shares for basic Earnings Per Share

Effect of partly paid Executive Plan shares and Performance Share Rights (PSRs)

Number of ordinary shares for diluted Earnings Per Share

Earnings per share from continuing operations

Basic earnings per share

Diluted earnings per share

Earnings per share from discontinued operations

Basic earnings per share

Diluted earnings per share

2017
US$m

150.2

(2.5)

147.7

119.5
28.2
147.7

147.7

119.5

28.2

147.7

2016
US$m

161.9

(2.8)

159.1

138.5
20.6
159.1

159.1

138.5

20.6

159.1

Number of Shares (Millions)

147.5

1.8

149.3

151.4

0.8

152.2

US Cents

81.0

80.0

19.1

18.9

91.5

91.0

13.6

13.5

103

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

5. Earnings Per Share continued
Recognition and measurement
Earnings per share (EPS) is the amount of profit attributable to each share. Basic EPS is calculated on the Group's profit for the year
attributable to equity shareholders divided by the weighted average number of shares on issue during the year. Diluted EPS reflects
any commitments the Group has to issue shares in the future. Partly paid Executive Plan shares and PSRs have been included in diluted
earnings per share.

6. Cash and Cash Equivalents

(a) Cash and cash equivalents
Cash on hand
Cash at bank
Short-term deposits

Restricted deposits

Total cash and cash equivalents

2017
US$m

0.2
144.7
168.7
313.6

3.0

316.6

2016
US$m

0.2
87.2
182.4
269.8

2.9

272.7

(b) Reconciliation of net profit after tax to net cash provided by operating activities
Profit for the period

150.2

161.9

Add/(less) non-cash items:
Depreciation
Amortisation
Impairment/(impairment reversal) – trade receivables
Share-based payments expense

Add/(less) items classified as investing/financing activities:
Interest received
Interest and financing costs paid
Gain/loss on the sale of property, plant and equipment
Gain on the sale of a subsidiary
Net cash provided by operating activities before change in assets and liabilities

Change in assets and liabilities net of effect from acquisitions and disposals of businesses and subsidiaries:
Decrease in trade and other receivables
(Increase)/decrease in inventories
Increase in other assets
Increase in trade and other payables
Increase/(decrease) in provisions/other liabilities
(Decrease)/increase in retirement benefit obligations
Increase in provision for deferred income tax
(Increase)/decrease in deferred tax asset
Increase in provision for income tax

Other non-cash items (including foreign currency impact)

Net cash provided by operating activities

30.7
14.2
(0.6)
4.7

(3.6)
26.3
(0.5)
–
221.4

8.2
(38.0)
(2.1)
8.4
10.4
(1.1)
0.4
(1.3)
9.9

–

29.0
9.0
0.4
(2.2)

(4.1)
26.4
(1.1)
(8.1)
211.2

14.3
0.7
(2.4)
–
(15.8)
1.4
6.6
10.3
5.5

0.5

216.2

232.3

(c) Recognition and measurement
Cash at bank and on deposit
Cash and cash equivalents includes cash on hand and at banks and investments in money market instruments, net of outstanding
bank overdrafts.

Restricted deposits
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 11 Provisions – Other Provisions).

104

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

7. Working Capital
This table summarises working capital related to continuing operations at 30 June 2017 and all operations at 30 June 2016:

Working capital comprises:

Net trade receivables

Inventories

Trade payables

Total working capital

2017
US$m

174.6

331.9

(197.8)

308.7

(a) Current trade and other receivables
This table summarises current trade and other receivables related to continuing operations at 30 June 2017 and all operations
at 30 June 2016:

Trade receivables

Allowance for impairment

Provision for rebates and allowances

Net trade receivables

Other amounts receivable

Total current trade and other receivables

218.5

(4.5)

(39.4)

174.6

15.3

189.9

2016
US$m

219.0

322.8

(199.9)

341.9

263.1

(8.2)

(35.9)

219.0

4.5

223.5

Movements in the allowance for impairment of trade receivables:
This table summarises the allowance for impairment of trade receivables related to continuing operations at 30 June 2017 and all
operations at 30 June 2016:

Balance at the beginning of the financial year

Amounts charged to the Income Statement

Amounts utilised for intended purposes

Reclassification to assets held for sale

Net exchange differences on translation of foreign subsidiaries

Balance at the end of the financial year

Ageing of trade receivables:

Within agreed terms

Past due 0 – 60 days

Past due 61 – 90 days

Past due 91 days or more

Total

8.2

–

(0.1)

(3.7)

0.1

4.5

8.6

0.4

(0.4)

–

(0.4)

8.2

Gross Trade Receivables

Allowance for Impairment

2017
US$m

189.0

26.0

1.5

2.0

2016
US$m

213.3

33.8

1.7

14.3

218.5

263.1

2017
US$m

2016
US$m

–

2.1

0.6

1.8

4.5

–

1.9

0.3

6.0

8.2

105

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

7. Working Capital continued

(b) Inventories
This table summarises inventories related to continuing operations at 30 June 2017 and all operations at 30 June 2016:

Raw materials

Work in progress

Finished goods

Total inventories

Inventories recognised as an expense

2017
US$m

35.7

15.2

281.0

331.9

2017
US$m

794.9

2016
US$m

40.1

19.0

263.7

322.8

2016^
Restated
US$m

791.2

^ In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations prior year comparatives have been restated to be consistent
with disclosures for 30 June 2017. Refer to Note 18(b) Disposal Group held for sale.

(c) Current trade and other payables
This table summarises current trade and other payables related to continuing operations at 30 June 2017 and all operations
at 30 June 2016:

Current

Trade payables

Other payables

Total current trade and other payables

2017
US$m

197.8

24.7

222.5

2016
US$m

199.9

35.3

235.2

(d) Recognition and measurement
Trade receivables
Trade receivables are carried at amounts due. Receivables that are not past due and not impaired are considered recoverable. Trade
receivables are recognised initially at the value of the invoice sent to the customer and subsequently at the amount considered recoverable.
Customer trading terms are generally between 30 – 60 days.

Allowance for impairment of trade receivables
The collectability of trade receivables is assessed continuously and at balance date specific allowances are made for any doubtful trade
receivables based on a review of all outstanding amounts at year end. Bad debts are written off during the year in which they are identified.
The following basis have been used to assess the allowance for doubtful trade receivables:

• individual account by account assessment based on past credit history;

• prior knowledge of debtor insolvency;

• high risk customers’ assessments based on continuous analysis of customers’ payment trends and monitoring of the
political and economic climates particularly for those customers who are located in emerging market countries; and

• customer accounts which have been referred to a collection agency.

Inventories
Inventories are valued at the lower of cost and net realisable value. The net realisable value of inventories is the estimated selling price
in the ordinary course of business less estimated costs to sell. The cost of inventories is based on the first-in, first-out principle. In the
case of manufactured inventories and work in progress, cost includes an appropriate share of the production overheads as applicable.

Allowances are established for obsolete or slow moving inventories taking into consideration the ageing or seasonal profile of
inventories, the nature of inventories, discontinued lines, sell through history and forecast sales.

Trade and other payables
Trade payables are normally settled within 30 days from invoice date or within the agreed payment terms with the supplier.

106

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

8. Property, Plant and Equipment

This table summarises property, plant and equipment related to continuing operations at 30 June 2017 and all operations at
30 June 2016:

Year ended 30 June 2017

Cost

Accumulated depreciation

Movement

Freehold
Land
US$m

Freehold
Buildings
US$m

Leasehold
Land and
Buildings
US$m

Plant and
Equipment
US$m

Buildings and
Plant Under
Construction
US$m

Total
US$m

7.0

–

7.0

32.5

(16.8)

15.7

57.0

(19.5)

37.5

46.1

0.1

–

(0.1)

(8.0)

2.7

(2.2)

(1.1)

436.8

(292.1)

144.7

140.2

3.9

1.0

(0.7)

(19.9)

45.2

(26.2)

1.2

13.0

546.3

–

(328.4)

13.0

217.9

28.2

245.0

36.0

41.3

–

(0.1)

(1.9)

1.5

(1.0)

(39.9)

(48.7)

–

(29.2)

(0.5)

0.2

15.7

37.5

144.7

13.0

217.9

Balance at the beginning of the financial year

9.3

21.2

Additions

Additions through entities/businesses acquired

Disposals/scrappings

Reclassification to assets held for sale

Transfer from buildings and plant under construction

Depreciation

Net exchange differences on translation of foreign subsidiaries

Balance at the end of the financial year

–

(2.8)

0.3

–

0.2

7.0

1.3

0.5

(0.1)

(7.3)

0.5

(0.8)

0.4

Year ended 30 June 2016

Cost

Accumulated depreciation

Movement

Balance at the beginning of the financial year

Additions

Disposal of entities

Disposals/scrappings

Transfer from buildings and plant under construction

Depreciation

Net exchange differences on translation of foreign subsidiaries

Balance at the end of the financial year

Freehold
Land
US$m

Freehold
Buildings
US$m

Leasehold
Land and
Buildings
US$m

Plant and
Equipment
US$m

Buildings and
Plant Under
Construction
US$m

Total
US$m

9.3

–

9.3

10.2

–

(0.5)

–

(0.4)

9.3

53.6

(32.4)

21.2

22.9

0.2

–

(0.5)

1.4

(2.2)

(0.6)

64.2

(18.1)

46.1

451.2

(311.0)

140.2

28.2

606.5

–

(361.5)

28.2

245.0

34.4

136.8

–

(0.2)

(0.3)

14.1

(1.8)

(0.1)

6.4

(1.5)

(0.2)

29.6

(25.0)

(5.9)

26.9

231.2

48.6

55.2

(0.3)

–

(45.1)

(2.0)

(1.5)

–

(29.0)

(1.9)

(8.9)

21.2

46.1

140.2

28.2

245.0

107

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

8. Property, Plant and Equipment continued

Recognition and measurement
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditure
that is directly attributable to the acquisition of the item. Subsequent costs are included in the asset’s carrying amount or recognised
as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Group and that the cost of the item can be measured reliably.

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

9. Intangible Assets

This table summarises intangible assets related to continuing operations at 30 June 2017 and all operations at 30 June 2016:

Goodwill
US$m

Brand
Names
US$m

Development
Costs
US$m

Software
Costs
US$m

Other
Intangibles
US$m

Total
US$m

243.3

–

(17.0)

–

0.2

226.5

60.8

0.4

–

0.1

61.3

165.2

25.0

3.0

–

(1.9)

(0.2)

0.8

26.7

12.3

4.4

(1.0)

0.4

16.1

10.6

69.9

2.0

–

(0.3)

71.6

27.4

5.4

–

1.0

33.8

37.8

24.0

1,321.1

–

5.0

48.7

(69.6)

(0.2)

(1.2)

24.0

1,303.8

3.8

1.4

–

243.8

11.6

(1.0)

(0.4)

5.2

254.0

18.8

1,049.8

Year ended 30 June 2017

Cost

Balance at the beginning of the financial year

Additions

Additions through entities acquired/completion
of provisional accounting

Reclassification to assets held for sale

Written off to the Income Statement

Net exchange differences on translation
of foreign subsidiaries

Balance at the end of the financial year

958.9

–

48.7

(50.7)

–

(1.9)

955.0

Provision for amortisation and impairment

Balance at the beginning of the financial year

139.5

Amortisation

Reclassification to assets held for sale

Net exchange differences on translation of
foreign subsidiaries

Balance at the end of the financial year

Written down value at the end of the financial year

–

(1.9)

137.6

817.4

108

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

Goodwill
US$m

Brand
Names
US$m

Development
Costs
US$m

Software
Costs
US$m

Other
Intangibles
US$m

Total
US$m

Year ended 30 June 2016

Cost

Balance at the beginning of the financial year

Additions

Additions through entities acquired/completion
of provisional accounting

Amounts related to businesses disposed of

Written off to the Income Statement

Net exchange differences on translation of
foreign subsidiaries

Balance at the end of the financial year

999.0

–

(10.4)

(13.3)

–

(16.4)

958.9

Provision for amortisation and impairment

Balance at the beginning of the financial year

140.1

Amortisation

Amounts related to businesses disposed of

Net exchange differences on translation of
foreign subsidiaries

Balance at the end of the financial year

Written down value at the end of the financial year

–

(0.6)

139.5

819.4

245.6

–

11.3

(8.4)

–

(5.2)

243.3

64.5

0.1

–

(3.8)

60.8

182.5

22.5

4.0

–

(0.9)

(0.6)

25.0

8.3

4.2

–

(0.2)

12.3

12.7

63.6

8.0

–

(1.7)

69.9

25.0

3.2

–

(0.8)

27.4

42.5

Carrying amount of goodwill and brand names allocated to each of the CGUs related to continuing operations
at 30 June 2017 and all operations at 30 June 2016:

Industrial

Medical

Single Use

Sexual Wellness

25.7

1,356.4

–

(1.7)

–

12.0

0.9

(23.4)

(0.9)

(23.9)

24.0

1,321.1

2.5

1.5

(0.2)

–

3.8

240.4

9.0

(0.2)

(5.4)

243.8

20.2

1,077.3

2017
US$m

311.3

256.7

414.6

–

2016
US$m

314.1

256.3

363.8

67.7

982.6

1,001.9

Recognition and measurement
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 amortised. 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 or where management intends to phase out the use of a brand. Brand names subject
to a licensing arrangement are amortised over the life of the arrangement. Brand names that are intended to be phased out are
amortised over the period management anticipates that this process will take. The amortisation of brand names, development
and software costs and other intangibles are recognised in selling, general and administration costs in the Income Statement.
No amortisation is provided against the carrying value of those brand names not subject to a licensing arrangement or phase
out process as the Group believes that the lives of such assets are indefinite at this point.

109

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

9. Intangible Assets continued

Development and software costs
Capitalised development and software costs are amortised over a 3 to 10 year period.

Other intangible assets
Other intangible assets that are acquired by the Group and have finite useful lives are initially recorded at cost based on independent
valuation at acquisition date, which equates to fair value. These assets include patents which are amortised on a straight-line basis over
the legal life of the patent and customer and distributor relationships, which are amortised on a straight-line basis over their estimated
useful lives, which range from 6 to 20 years.

Impairment
Goodwill and indefinite life intangible assets are tested for impairment as part of the year end reporting process. These assets are also
reviewed as part of the interim reporting process to determine whether there are any indicators of impairment.

The carrying amount of other non-current assets, excluding any defined benefit fund assets, deferred tax assets and financial assets are
reviewed at each reporting date to determine whether there are any indicators of impairment.

If such indicators exist, the asset is tested for impairment by comparing its recoverable amount to its carrying amount. The recoverable
amount of an asset is determined as the higher of fair value less costs of disposal and value in use.

The recoverable amount of the CGUs has been determined based on a value in use calculation utilising five-year cash flow projections
with the exception of the Sexual Wellness CGU. As the assets and liabilities of the Sexual Wellness CGU have been classified as held for
sale their recoverable amount has been calculated using fair value less costs of disposal.

The base for each CGU subject to a value in use calculation is the budget for the 2018 financial year as approved by the Board. Specific
growth and after tax WACC rates have been used for each CGU in developing internal forecasts for financial years ending June 2019 to
2022 and for the terminal year. Factors such as country risk, forecasting risk and country specific growth and tax rates have been taken
into consideration in arriving at these rates.

Cash flows used for value in use calculations are estimated for the asset in its present condition and therefore do not include cash
inflows or outflows that improve or enhance the asset’s performance or that may arise from future restructuring.

The post-tax discount rate used for a value in use calculation is derived based on an internal assessment of the Group's post-tax
weighted average cost of capital in conjunction with risk specific factors to the countries in which the CGU operates.

The average annual sales revenue growth rates applied in the discounted cash flow models range between 3% and 5% (2016: 2% and 4%)
while the growth in the terminal year was between 2% and 3% (2016: between 2% and 3%). The post tax discount rates applied range
between 8% and 9% (2016: 8% and 9%).

An impairment loss is recognised whenever the carrying amount of an asset or its CGU exceeds its recoverable amount. Impairment
losses are recognised in the Income Statement as part of cost of goods sold and selling, general and administration expenses.
Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated
to CGUs and then to reduce the carrying amount of the other assets in the unit.

An impairment loss is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after
the impairment loss was recognised. An impairment loss in respect of goodwill or other indefinite life intangible assets is not reversed.
An impairment loss in other circumstances is reversed only to the extent that the asset’s carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

110

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

10. Interest Bearing Liabilities

This table summarises interest bearing liabilities related to continuing operations at 30 June 2017 and all operations at 30 June 2016:

Current

Loans repayable in:

Canadian dollars

Indian rupees

Total current

Non-current

Loans repayable in:

Euros

United States dollars

United Kingdom pounds

Total non-current

Total interest bearing liabilities

2017
US$m

2016
US$m

3.8

–

3.8

144.7

437.0

135.0

716.7

720.5

3.9

1.1

5.0

149.7

474.0

62.9

686.6

691.6

The Group has a syndicated borrowing facility of US$500 million (US$167 million and GBP 103.8 million drawn down at 30 June 2017)
maturing in June 2019, a Euro 50 million revolving credit facility (Euro 25 million drawn down at 30 June 2017) maturing in January 2021
and Senior Notes to the equivalent of US$386.1 million. The Senior Notes of US$270 million and Euro 101.5 million mature between
June 2020 and April 2026. These facilities can be accessed by certain Australian, US, UK 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.

Net interest bearing debt

Current interest bearing liabilities

Non-current interest bearing liabilities

Cash at bank and short-term deposits

Net interest bearing debt

2017
US$m

3.8

716.7

(313.4)

407.1

2016
US$m

5.0

686.6

(269.6)

422.0

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

111

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

10. Interest Bearing Liabilities continued

This table summarises interest bearing liabilities related to continuing operations at 30 June 2017 and all operations at 30 June 2016:

Nature and Currency of Borrowing

Bank loans

Other loans

Total interest bearing liabilities

Canadian dollars

Euros

United Kingdom pounds

United States dollars

Euros

United States dollars

Effective
Interest Rate
% p.a.

Financial
Year of Debt
Maturity

2.23

1.07

1.38

2.83

2.91

3.83

3.43

3.21

3.87

2.26

2.45

2.67

3.37

3.52

1.63

3.75

3.91

4.70

4.05

4.68

2018

2021

2019

2020

2022

2023

2020

2021

2024

2025

2026

2017
US$m

3.8

28.6

135.0

20.0

15.0

10.0

20.0

35.0

30.0

17.0

10.0

34.3

40.9

20.0

50.0

100.0

50.0

720.5

112

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

Nature and Currency of Borrowing

Bank loans

Canadian dollars

Euros

Indian rupees

United Kingdom pounds

United States dollars

Euros

United States dollars

Other loans

Total interest bearing liabilities

Effective
Interest Rate
% p.a.

Financial
Year of Debt
Maturity

2.19

1.08

1.11

1.20

9.90

1.96

2.01

2.83

2.91

3.83

3.43

3.21

3.87

2.26

1.91

2.01

1.82

3.37

3.52

1.74

2.62

3.91

4.70

4.05

4.68

2017

2018

2017

2019

2020

2022

2023

2020

2021

2024

2025

2026

2016
US$m

3.9

3.3

5.6

27.8

1.1

62.9

15.0

20.0

15.0

10.0

20.0

35.0

30.0

35.0

6.0

8.0

33.4

39.8

20.0

50.0

100.0

50.0

691.6

113

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

11. Provisions

This table summarises provisions related to continuing operations at 30 June 2017 and all operations at 30 June 2016:

Current

Provision for employee entitlements

Provision for rationalisation and restructuring costs

Other provisions

Total current

Non-current

Provision for employee entitlements

Total non-current

Total provisions

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

Provision for rationalisation and restructuring costs

Balance at the beginning of the financial year

Amounts credited to the Income Statement

Payments made

Net exchange differences on translation of foreign subsidiaries

Balance at the end of the financial year

Other provisions

Balance at the beginning of the financial year

Payments made

Net exchange differences on translation of foreign subsidiaries

Balance at the end of the financial year

2017
US$m

2016
US$m

49.3

3.5

3.9

56.7

8.2

64.9

6.9

(0.2)

(3.2)

–

3.5

3.9

(0.1)

0.1

3.9

38.0

6.9

3.9

48.8

10.6

59.4

16.1

(2.4)

(6.4)

(0.4)

6.9

4.2

(0.2)

(0.1)

3.9

Recognition and measurement
A provision is recognised 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.

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 corporate bond rates, which most closely match the
terms of maturity of the related liabilities.

114

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

Provision for rationalisation and restructuring costs
Provisions for rationalisation and restructuring are only recognised 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.

Other Provisions
Other provisions are recognised to cover specifically identified or obligated costs relating to Accufix Pacing Lead and insurance claims.
The Accufix Pacing Lead related expenses include costs of patients associated with the monitoring and (where appropriate) explanation
of the leads and for legal costs in defence of claims made in respect of the Accufix Pacing Lead. This provision is covered by cash
required to be set aside by the Courts (refer to Note 6 – Cash and Cash Equivalents – Restricted deposits).

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

(a) Defined benefit superannuation plans
Funding for post-employment benefits is carried out in accordance with the requirements of the Trust Deed for the Fund and the advice
of the Fund’s actuarial adviser. Plan assets are held in trusts, which are subject to supervision by prudential regulators. Responsibility for
governance of the plan, including investment decisions and plan rules, rests solely with the Board of trustees of the plan.

The amounts recognised in the balance sheet related to continuing operations at 30 June 2017 and all operations at 30 June 2016 are
determined as follows:

Present value of accumulated defined benefit obligations

Fair value of defined benefit plan assets

Net defined benefit liability recognised in the Balance Sheet

The principal actuarial assumptions used (expressed as a weighted average)
to calculate the net defined benefit liability were as follows:

Discount rate

Future salary increases

The movements in the net defined liability during the year are outlined below:

Balance at the beginning of the financial year

Actuarial losses1
Current service cost2
Net interest cost2
Settlement gains2
Employer contributions3
Reclassification to liabilities held for sale

Net exchange differences on translation of foreign subsidiaries

Balance at the end of the financial year

1. Actuarial gains and losses are recorded in other comprehensive income.

2017
US$m

58.4

(39.4)

19.0

2017

2.5%

1.6%

2017
US$m

23.1

(2.9)
0.2
0.4
(0.3)
(1.8)
(0.1)

0.4

2016
US$m

62.6

(39.5)

23.1

2016

2.5%

2.3%

2016
US$m

18.1

3.8
2.5
0.3
–
(1.4)
–

(0.2)

19.0

23.1

2. Current service cost, interest cost and settlement gains are recorded in the Consolidated Income Statement as part of selling, general and administration expenses.

3. Employer contributions are a cash payment and are recorded as part of payments to suppliers and employees in the Consolidated Statement of Cash Flows.

115

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

12. Retirement Benefit Obligations continued

The Group expects $1.8 million in contributions to be paid to its defined benefit plans during the year ending 30 June 2018.

The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:

2017

29%

63%

2016

29%

63%

2017
US$m

13.7

2016
US$m

13.0

2017
US$m

2016
US$m

1,142.2

1,146.9

–

1,142.2

1,146.9

Number of Shares

2017

2016

147,660,815

153,154,841

237,069

–

5,000

383,322

488,735

–

(574,422)

(6,366,083)

147,328,462

147,660,815

58,900

(5,000)

53,900

58,900

–

58,900

Equity securities

Fixed interest securities

Property

Other

(b) Defined contribution superannuation plans

Contributions to defined contribution plans during the year

13. Issued Capital and Reserves
(a) Issued capital

Issued capital

147,328,462 (2016: 147,660,815) ordinary shares, fully paid

53,900 (2016: 58,900) Executive Share Plan shares, paid to A$0.05

Total issued capital

Movement in shares on issue

Ordinary shares

Balance at the beginning of the financial year

Issue of new shares under Dividend Reinvestment Plan

Conversion of PSRs and PRs

Conversion of Executive Share Plan shares to fully paid

Buy-back/cancellation of shares

Balance at the end of the financial year

Executive Share Plan shares

Balance at the beginning of the financial year

Conversion of Executive Share Plan shares to fully paid

Balance at the end of the financial year

116

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

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 recognised as a deduction from equity.

Ordinary shares are fully paid and do not have authorised capital or par value. They carry one vote per share and the right to dividends
as declared from time to time. 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.

Dividend Reinvestment Plan
The Company operates a dividend reinvestment plan which is open to all shareholders. Under this plan 237,069 were issued during the year
(2016: 383,322).

Executive Share Plan
During the financial year, 5,000 Executive Plan shares were paid (2016: nil). Shares allotted under the Pacific Dunlop Executive Share Plan
(which was discontinued in 1996) have been paid to A$0.05 per share. Refer to Note 21 Ownership-based Remuneration Schemes for
details of the price payable for shares issued under this plan.

Options
As at the date of this Report, there are nil (2016: nil) unissued shares in the Company remain under option.

Share-based payments
The fair value of PSRs granted to the Managing Director and Chief Executive Officer (CEO), Chief Financial Officer (CFO) and other Senior
Executives on their appointments and PSRs granted to the CEO, CFO and other Senior Executives under the Long Term Incentive Plans is
recognised as an employee benefit expense with a corresponding increase in equity over the vesting period.

(b) Nature and purpose of reserves
Share-based payments reserve
This reserve is used to record the value of equity benefits provided to employees as part of their remuneration under various
Long Term Incentive Plans. Refer to Note 21 Ownership-based Remuneration Schemes for further details of these plans.

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

General reserve
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.

Foreign currency translation reserve
The foreign currency translation reserve records the foreign currency differences arising from the translation of the financial statements
of foreign subsidiaries 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 foreign subsidiaries. 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.

117

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

14. Dividends Paid or Declared

Dividends paid

2017
US$m

2016
US$m

A final dividend of US 23.5 cents per share unfranked for the year ended 30 June 2016
(June 2015: US 23.0 cents unfranked) was paid on 8 September 2016 (2015: 10 September 2015)

34.6

34.0

An interim dividend of US 20.25 cents per share unfranked for the year ended 30 June 2017
(June 2016: US 20.0 cents unfranked) was paid on 10 March 2017 (2016: 10 March 2016)

29.7

64.3

31.6

65.6

Dividends declared
Since the end of the financial year the Directors have declared a final dividend of US23.75 cents per share unfranked, to be paid
on 8 September 2017. The financial effect of this dividend has not been brought to account in the financial statements for the year
ended 30 June 2017 and will be recognised in subsequent financial reports.

Dividend franking account
The balance of the dividend franking account as at 30 June 2017 was nil (2016: nil).

15. Financial Risk Management
Ansell has a range of financial policies designed to mitigate any potential negative impact financial risks may have on the Group’s
results. The Group’s risk management is carried out by a central treasury department under polices approved by the Board of Directors.
Group treasury identifies, evaluates and hedges financial risks in close cooperation with the Group’s business units. The Board reviews
and approves the Group’s policies for managing each of these risks which are summarised below:

• Note 15(a) Foreign Exchange Risk;

• Note 15(b) Interest Rate Risk;

• Note 15(c) Credit Risk;

• Note 15(d) Liquidity Risk; and

• Note 15(e) Commodity Price Risk.

These risks affect the fair value measurements applied by the Group, which is discussed in Note 15(f).

(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 Group manages its
transactional exposures as follows:

• 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 hedges up to 90% of its estimated foreign currency exposure in respect of forecast purchases and sales.

The Group enters into 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.

118

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

As at 30 June the exposure to foreign currency risk from the Group’s primary trading currency (US$) is:

Net receivable in non-US$ reporting entities

Net Receivable

2017
US$m

21.5

2016
US$m

28.2

The following table demonstrates the estimated sensitivity in the valuation of outstanding forward contracts and foreign exchange options
to a 10% increase/decrease in the US$ exchange rate, with all other variables held constant, on profit for the period and equity.

With all other variables held constant:

10% increase in US$ exchange rate

10% decrease in US$ exchange rate

Profit for the Period

Equity

2017
US$m

2016
US$m

2017
US$m

2016
US$m

–

4.6

(1.2)

3.9

1.4

(b) Interest rate risk
The Group has a 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 enables 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 1 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.

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 finalised; and

• unacceptable variations in interest expense from year to year.

It is recognised 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:

2017

Bank and other loans

Effect of interest rate swaps1

2016

Bank and other loans

Effect of interest rate swaps1

Weighted
Average Effective
Interest Rate %

Floating
US$m

1 Year
or Less
US$m

3.2

0.1

3.1

0.1

334.4

(185.7)

148.7

307.5

(108.0)

199.5

–

28.6

1.1

–

1.1

Fixed Interest Repricing in

1 to 2
Years
US$m

–

15.0

–

37.8

2 to 5
Years
US$m

145.2

183.0

328.2

103.4

110.0

213.4

> 5
Years
US$m

240.9

(40.9)

200.0

279.6

(39.8)

239.8

1. Represents notional amount of interest rate swaps.

A separate analysis of debt by currency can be found at Note 10 Interest Bearing Liabilities.

Total
US$m

720.5

–

720.5

691.6

–

691.6

119

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

15. Financial Risk Management continued

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

With all other variables held constant:

If interest rates were 10% higher

If interest rates were 10% lower

Profit for the Period

Equity

2017
US$m

2016
US$m

2017
US$m

2016
US$m

–

1.1

(1.2)

0.4

(0.4)

(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 recognised on the Balance Sheet. The Group is exposed to credit risk from its operating activities, primarily from
customer receivables and from its financing activities, including deposits with financial institutions, foreign exchange transactions
and other financial instruments.

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

(i) Credit risk – cash and cash equivalents
The Group held cash and cash equivalents of US$316.6 million at 30 June 2017 (2016: $272.7 million). The material cash and cash
equivalent balances are held with bank and financial institution counterparties which are rated A3 or above by Moody's Investor Service.

(ii) Credit risk – trade receivables
Customer credit risk is managed by each Region subject to established policies, procedures and controls relating to customer credit
risk management. The Group trades with recognised, creditworthy third parties, and also minimises concentrations of credit risk by
undertaking transactions with a large number of customers and counterparties in various countries. Customers who wish to trade
on credit terms are subject to credit verification procedures including an assessment of their independent credit rating, financial
position, past experience and industry reputation. In addition receivable balances are monitored on an ongoing basis. The Group
is not materially exposed to any individual customer. An ageing of trade receivables past due is included in Note 7.

The Group's maximum exposure to credit risk at the reporting date related to continuing operations at 30 June 2017 and all operations
at 30 June 2016 was:

Net trade receivables

Carrying Amount

2017
US$m

174.6

2016
US$m

219.0

Individual trade receivables which are known to be uncollectible are written off by reducing the carrying amount directly. Other trade
receivables are assessed where there is objective evidence that an impairment has been incurred but not yet recognised. For these
receivables, the estimated impairment losses are recognised as an allowance for impairment. Receivables for which an impairment
provision was recognised are written off against the provision where there is no expectation of recovering additional cash. Allowances
for impairment are recognised in the Income Statement. Subsequent recoveries of amounts previously written off are credited to the
Income Statement. Movements in the allowance for impairment and the ageing of trade receivables are included in Note 7.

120

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

(iii) Credit risk by maturity
Based on the policy of not having material overnight exposures to an entity rated lower than A3 by Moody’s Investors Service, the
risk to the Group of counterparty default loss is not considered material. The following table indicates the value of amounts owing
by counterparties by maturity.

Foreign Exchange
Related Contracts

Interest Rate
Contracts

Foreign Exchange
Options

Total

2017
US$m

2016
US$m

2017
US$m

2016
US$m

2017
US$m

2016
US$m

2017
US$m

2016
US$m

0.6

0.2

–

1.3

0.4

–

0.8

1.7

–

0.9

3.1

4.0

–

0.7

4.2

4.9

1.6

2.2

–

3.1

3.4

–

3.8

6.5

2.2

2.4

–

0.9

3.1

8.6

4.4

3.8

–

0.7

4.2

13.1

Term:

0–6 months

6– 12 months

1– 2 years

2– 5 years

> 5 years

Total

(d) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are
settled by delivering cash or another financial asset. The Group's approach to managing liquidity is to ensure, as far as possible, that it
will have sufficient liquidity to meet its obligations when they are due.

The Group manages liquidity risk by:

(a) maintaining adequate levels of undrawn committed facilities that can be drawn down upon at short notice;

(b) retaining appropriate levels of cash and cash equivalents;

(d) regular monitoring of cash balances and cash requirement forecasts.

The following table sets out the contractual maturities of the Group’s financial liabilities related to continuing operations at 30 June
2017 and all operations at 30 June 2016 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.

2017

Trade and other payables

Bank and other loans

Derivative financial instruments

Total

2016

Trade and other payables

Bank and other loans

Derivative financial instruments

Total

Carrying
Amount

Total
Contractual
Cash Flows

US$m

223.8

720.5

8.7

953.0

239.3

691.6

10.8

941.7

223.8

826.2

8.7

1,058.7

239.3

819.0

10.8

1,069.1

Contractual Maturity (Years)

0–1
US$m

222.5

26.1

7.9

256.5

235.2

27.4

5.8

268.4

1–2
US$m

1.3

324.2

0.2

325.7

4.1

59.1

1.9

65.1

2–5
US$m

212.0

0.6

212.6

–

419.8

3.1

422.9

> 5
US$m

263.9

–

263.9

–

312.7

–

312.7

121

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

15. Financial Risk Management continued

(e) 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 may, from time to time, buy from suppliers or brokers at a fixed price for up to several months into the future. To the extent that any
increases in these costs cannot be passed through to customers in a timely manner, the Group’s profit after income tax and
shareholder’s equity could be impacted adversely.

(f) Fair value
The Group considers that the carrying amount of recognised financial assets and financial liabilities approximates their net fair value.
Derivative financial instruments are carried at their fair value.

The following table displays:

(i) Nominal/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 counterparties who have amounts outstanding to the Group under
derivative financial instruments, fail to honor 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 realised between willing parties in a normal market in other than a liquidation or
forced sale environment. The net amount owing (to)/by financial institutions under all derivative financial instruments would have been
($0.1) million (2016: $2.3 million) if all contracts were closed out on 30 June 2017.

Nominal/Face Value

Credit Risk

Net Fair Value

2017
US$m

2016
US$m

2017
US$m

2016
US$m

2017
US$m

2016
US$m

51.7
13.2
20.8
–
34.2
12.5
31.5

135.8
3.8
6.1
14.2
17.1
35.1
39.1
10.7

78.0
69.5
285.0
858.3

50.5
13.7
6.3
5.7
33.3
21.2
27.1

123.1
4.6
15.1
5.2
15.5
51.7
51.8
15.8

–
67.6
235.0
743.2

–
0.3
0.1
–
–
0.1
0.3

0.7
–
–
0.2
0.8
0.9
0.9
0.3

–
3.0
1.0
8.6

0.6
0.1
–
–
0.1
0.4
0.5

2.3
–
0.1
0.5
0.2
2.5
0.8
0.1

–
4.2
0.7
13.1

(1.1)
0.3
0.1
–
(0.2)
0.1
–

(3.8)
–
–
(0.1)
0.7
-
0.8
0.3

–
3.0
(0.2)
(0.1)

0.5
–
(0.2)
–
(0.2)
0.3
0.3

0.4
–
(0.2)
0.5
(0.5)
1.8
0.5
(0.8)

–
4.0
(4.1)
2.3

Foreign exchange contracts

Purchase/sale contracts
– United States dollars
– Australian dollars
– Malaysian ringgits
– Thai baht
– Sri Lankan rupees
– Euros
– Other currencies

Foreign exchange options
– Euros/United States dollars
– Australian dollars/United States dollars
– Canadian dollars/United States dollars
– United Kingdom pounds/United States dollars
– United States dollars/Mexican peso
– United States dollars/Malaysian ringgits
– United States dollars/Thai baht
– Other currencies

Interest rate contracts
Interest rate swaps
– GBP
– Euros
– United States dollars
Total

122

ANSELL LIMITED ANNUAL REPORT 2017

Notes to the Financial Statements continued

(iv) Fair value hierarchy
The table below analyses financial assets and financial liabilities carried at fair value, including their levels in the fair value hierarchy
as well as the valuation method. It does not include information for financial assets and financial liabilities not measured at fair value
if the carrying amount is a reasonable approximation of fair value.

The different valuation 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).

The Group currently holds only Level 2 derivative financial instruments. 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.

Derivative financial assets

Derivative financial liabilities

Level 2

2017
US$m

8.6

8.7

2016
US$m

13.1

10.8

(g) Recognition and measurement
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 counterparties rated lower than 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 time frame. 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.

Derivative financial instruments are recognised 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 recognising 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 recognised assets or liabilities (fair value hedges); 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.

123

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

15. Financial Risk Management continued

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 recognised in
equity in the hedging reserve. The gain or loss relating to the ineffective portion is recognised immediately in the Income Statement.

Gains or losses that are recognised 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 recognised in equity
remains in equity until the forecasted transaction is ultimately recognised 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 recognised immediately in the
Income Statement.

Hedge Effectiveness
The Group determines its economic exposure to unexpected movements in foreign currency rates and interest rates and ensures
the hedging instruments entered into satisfactorily mitigate these risks. The Group ensures the changes in the fair value of the
hedging instruments are highly correlated to the change in the fair value of the underlying hedged item and are therefore effective.

Potential sources of ineffectiveness include but are not limited to:

• the Group no longer having the economic exposure rendering the hedge instrument ineffective;

• hedging instrument expires or is sold, terminated or exercised; and

• changes in counterparty credit status.

16. Expenditure Commitments

(a) Capital expenditure commitments
Contracted but not provided for in the financial statements:
Plant and equipment

Payable within one year

(b) Operating lease commitments
Future operating lease commitments not provided for in the financial statements and payable:
Within one year
One year or later and no later than five years
Later than five years

2017
US$m

2016
US$m

5.7
5.7
5.7

9.7
23.1
4.0
36.8

7.9
7.9
7.9

8.7
20.2
2.2
31.1

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. Operating lease commitments refer to future undiscounted minimum rentals payable
under non-cancellable operating leases not included within this Financial Report. Operating lease payments are recognised as an
expense in the Income Statement on a straight-line basis over the lease term.

124

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

17. Particulars Relating to Subsidiaries

Ansell Limited

Ansell Healthcare Japan Co. Ltd.

BNG Battery Technologies Pty. Ltd.

Corrvas Insurance Pty. Ltd.

Dunlop Olympic Manufacturing Pty. Ltd.

FGDP Pty. Ltd.

Nucleus Ltd.

Lifetec Project Pty. Ltd.

Medical TPLC Pty. Ltd.

N&T Pty. Ltd.

Nucleus Trading Pte. Ltd.

THLD Ltd.

TNC Holdings Pte. Ltd.

TPLC Pty. Ltd.

Societe de Management Financier S.A.

Olympic General Products Pty. Ltd.

Pacific Dunlop Finance Pty. Ltd.

Pacific Dunlop Holdings (China) Co. Ltd.

Ansell (Shanghai) Commercial and Trading Co. Ltd.

P.D. Holdings Pty. Ltd.

P.D. International Pty. Ltd.

Ansell Canada Inc.

Ansell Commercial Mexico S.A. de C.V.

Ansell Colombia SAS

Ansell Global Trading Center (Malaysia) Sdn. Bhd.

Ansell Lanka (Pvt.) Ltd.

Ansell (Middle East) DMCC

Ansell Perry de Mexico S.A. de C.V.

Ansell Protective Solutions Singapore Pte. Ltd.

Ansell Services (Asia) Sdn. Bhd.

Ansell (Kulim) Sdn. Bhd.

Ansell N.P. Sdn. Bhd.

Ansell Malaysia Sdn. Bhd.

Ansell Shah Alam Sdn. Bhd.

Hercules Equipamentos de Protecao Ltda

Ansell Textiles Lanka (Pvt.) Ltd.

Ansell (Thailand) Ltd.

Ansell US Group Holdings Pty. Ltd.

Ansell US Group Holdings (USA) LLC

Ansell (USA) Inc.

Ansell Brazil LTDA

Ansell Edmont Industrial de Mexico S.A. de C.V.

Country of Incorporation

Beneficial Interest

2017
%

2016
%

Australia

Japan*

Australia

Singapore*

Australia

Singapore*

Australia

France*

Australia

China*

Australia

Canada*

Mexico*

Colombia*

Malaysia*

Sri Lanka*

UAE*

Mexico*

Singapore*

Malaysia*

Brazil*

Sri Lanka*

Thailand*

Australia

United States*

Brazil*

Mexico*

100

–

100

125

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

17. Particulars Relating to Subsidiaries continued

Pacific Dunlop Holdings (USA) LLC

Barriersafe Solutions International Inc.

Microflex Corporation

Ansell Healthcare Products LLC

Ansell Sandel Medical Solutions LLC

SXwell USA LLC

Ansell Hawkeye Inc.

Pacific Chloride Inc.

Pacific Dunlop Holdings Inc.

TPLC Holdings Inc.

Accufix Research Institute Inc.

Cotac Corporation

Pacific Dunlop Finance Company Inc.

Comercializadora Ansell Chile Limitada

Corrvas Insurance (Singapore) Pte. Ltd.

Fabrica de Artefatos de Latex Blowtex Ltda.

Medical Telectronics N.V.

Pacific Dunlop Holdings (Europe) Ltd.

Ansell Healthcare Europe N.V.

Ansell GmbH

Ansell Italy Srl

Ansell Medikal Urunler Ithalat Ihracat Uretim ve Ticaret A.S.

Ansell Norway AS

Ansell Protective Solutions AB

Ansell Protective Solutions Lithuania UAB

Ansell Rus LLC

Ansell S.A.

Ansell SW Europe SAS

Ansell Services Poland Sp. z o.o.

Ansell Spain SL (Sociedad de Responsabilidad Limitada)

Comasec SAS

Ampelos International Malaysia

Ansell Industrial & Specialty Gloves Malaysia Sdn. Bhd.

Comasec Holdings Ltd.

Marigold Industrial Ltd.

Ansell Portugal – Industrial Gloves, Sociedade Unipessoal, Lda

Unimil Sp. z o.o.

Ansell UK Limited

Ansell Korea Co. Ltd.

Ansell Vina Corporation

Ansell Microgard Ltd.

Ansell Xiamen Limited

Ansell Microgard Xiamen Limited

126

Country of Incorporation

Beneficial Interest

2017
%

2016
%

United States*

United States*(i)

United States*

Chile*

Singapore*

Brazil*(i)

Netherlands Ant.*

United Kingdom*

Belgium*

Germany*

Italy*

Turkey*

Norway*

Sweden*

Lithuania*

Russia*

France*

France*(i)

Poland*

Spain*

France*

Malaysia*

United Kingdom*

Portugal*

Poland*(i)

United Kingdom*(i)

South Korea*

Vietnam*

United Kingdom*

China*

100

–

100

–

100

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

Nitritex Limited

Nitritex (M) Sdn. Bhd.

Nitritex Canada Ltd.

Pacific Dunlop Holdings (Singapore) Pte. Ltd.

Ansell India Protective Products Pvt Ltd.

JK Ansell Ltd.

Ansell (Hong Kong) Limted.

PDOCB Pty. Ltd.

Ansell Medical Products Pvt. Ltd.

Suretex Ltd.

Latex Investments Ltd.

Suretex Prophylactics (India) Ltd.

Wuhan Jissbon Sanitary Products Company Ltd.

Guangzhou Kangwei Trading Co Ltd

Shanghai Feidun Trading Company Ltd.

Shenyang Yipeng Trading Company Ltd.

PD Licensing Pty. Ltd.

Siteprints Pty. Ltd.

S.T.P. (Hong Kong) Ltd.

Pacific Dunlop Holdings N.V.

Pacific Dunlop (Netherlands) B.V.

SXWELL Australia Pty. Ltd.

The Distribution Group Holdings Pty. Ltd.

The Distribution Group Pty. Ltd.

The Distribution Trust

Xelo Pty. Ltd.

Xelo Sacof Pty. Ltd.

Country of Incorporation

United Kingdom*

Malaysia*

Canada*

Singapore*

India*

Hong Kong*

Australia

India*

Thailand*(i)

Mauritius*(i)

India*(i)

China*(i)

Australia

Hong Kong*

Netherlands Ant.*

Netherlands*

Australia*(i)

Australia

Beneficial Interest

2017
%

2016
%

100

–

100

–

100

90(a)

100

100(a)

100

–

100

100(a)

100

* Subsidiaries incorporated outside Australia carry on business in those countries.

(a) Owned 49.2% by P.D. International Pty. Ltd. and 40.8% by Pacific Dunlop Holdings (China) Co. Ltd.

(b) The trustee of The Distribution Trust is The Distribution Group Pty. Ltd. The beneficiary of the trust is Ansell Limited.

(i) Subsidiaries forming part of the sale of the Sexual Wellness business.

The following subsidiaries were liquidated or merged with another subsidiary during the year:

• Ansell Ambi Sdn. Bhd.

• Ansell (Kedah) Sdn. Bhd.

• Ansell Germany GmbH

• STX Prophylactics S.A. (Pty.) Ltd.

127

ANSELL LIMITED ANNUAL REPORT 2017Notes to the Financial Statements continued

18. Acquisitions and Disposal Group Held for Sale
(a) Acquisitions
Nitritex Limited
Effective 1 February 2017, Ansell Limited acquired 100% of Nitritex Limited, a manufacturer of premium cleanroom life sciences
consumables with head quarters in the United Kingdom. With approximately 250 employees, the Company specialises in a broad range
of sterile and non sterile consumables including disposable gloves, garments, goggles, face masks and accessories. Nitritex Limited forms
part of the Single Use GBU. The acquisition will provide an opportunity for the Group to better serve the needs of life sciences customers
and accelerate growth. The Income Statement includes the results of Nitritex Limited from the acquisition date.

In the five months to 30 June 2017, Nitritex Limited contributed revenue of $12.0 million and profit of $2.8 million to the Group's result.

The goodwill recognised is primarily attributed to the expected synergies and other benefits from combining the assets and activities
of Nitritex Limited with those of the Group. The goodwill is not deductible for income tax purposes.

The following fair values of the identifiable assets and liabilities of Nitritex Limited as at acquisition have been determined on a
provisional basis:

Assets

Cash and cash equivalents

Trade and other receivables

Inventories

Property, plant and equipment