Ansell Annual Report 2019

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FY2019 Annual Report · Ansell

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Safer. Smarter. Stronger.
Annual Report 2019

Contents

About Ansell

Financial Summary

Our Global Footprint

Chairman’s Review

Chief Executive Officer’s Review

Operating and Financial Review
Strategy
Outlook
Our Performance
Industrial Global Business Unit
Healthcare Global Business Unit

Corporate Social Responsibility
and Sustainability

Board of Directors

Executive Leadership Team

Report by the Directors

Remuneration Report

Financial Report
Consolidated Income Statement
Consolidated Statement
of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement
of Changes in Equity
Consolidated Statement
of Cash Flows
Notes to the Financial Statements

Directors’ Declaration

Independent Audit Report

Five-Year Summary

Shareholders

Shareholder Information

12
12
13
15
18
20

65
65

66
67

70
71

113

114

120

121

123

Ansell Limited – ABN 89 004 085 330

About Ansell

Safer.
Ansell is a global safety company and protection is at the heart of everything we do.
Our products and services inspire confidence in people everywhere and enable businesses
and workers to perform better.

Smarter.
Innovation is central to Ansell’s market-leading position. We are uniquely focused on customer
needs, which guide our innovation and allow Ansell to deliver practical, functional and
revolutionary new products.

Stronger.
From the expansion of our proprietary INTERCEPT™ Cut Resistance Technology to increasingly
higher ISO & ANSI cut levels, to our surgical products utilising our GLOVE-IN-GLOVE Double
Gloving Technology, Ansell is constantly striving to provide our clients with unprecedented
protection and comfort.

Ansell has evolved from an Australian
rubber latex products manufacturer to
one of the world’s most advanced safety
solutions providers. Every day millions
of people around the world depend on
Ansell. With Ansell products they always
know they are protected and can perform
better. Our category expertise, innovative
products, trusted brands and advanced
technologies give them peace of mind
and confidence that no other company
can deliver. By expanding the Company’s
global reach, category depth and robust
innovation pipeline, we support our
customers’ expansion and provide solutions
for new needs. This approach allows us
to continue to deliver for our customers,
employees and shareholders.

Our Values

Integrity – We value doing what is right and ethical.

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 inventiveness, innovation and new
and divergent ways of thinking.

Passion – We value energy and excitement, commitment,
drive and dedication.

Involvement – We value our team members’ input,
influence and initiative.

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 2019Financial Summary

Statutory Results Ansell Group

Statutory Results Continuing Operations

-3%

Sales down

-77%

Profit Attributable down

-72%

EBIT down

-75%

EPS down

+1%

Sales up

EBIT

-20%

Profit Attributable down

-14%

EPS down

Adjusted Results Continuing Operations

Adjusted Results in Constant Currency

Sales up

+1%
+3%

Profit Attributable up

EBIT up

+5%
+9%

EPS up

Sales up

+3%
+5%

EBIT up

+4%
+11%

Profit Attributable up

EPS up

Industrial GBU Results

Healthcare GBU Results

Organic constant
currency sales

+12%

Adjusted constant
currency EBIT up

+4%

Organic constant
currency sales up

-2%

Adjusted constant
currency EBIT down

5 Year Performance

$1,645

$1,573

$1,600

$1,490

$1,499

14.9%

15.0%

13.6%

13.5%

13.0%

$245

$237

$218

$193

$203

122.5¢

105.1¢

100.1¢

102.0¢

111.5¢

Sales

EBIT

Profit Attributable

Operating Cash Flow

2015

2016

2017

2018

2019

Sales
($m)

EPS
(¢)

EBIT
($m)

EBIT Margin
(%)

Earnings Per Share (US cents)

Dividends Per Share (US cents)

* Refer to definition of Adjusted Results and Constant Currency on page 3.

Total Group Statutory Results
before the Sale of the Sexual
Wellness Business

2015
US$m

2016
US$m

2017
US$m

Results from the
Continuing Operations
after the Sale of the
Sexual Wellness
Business

2018
Adjusted
US$m

2019
Adjusted
US$m

1,645.1

1,572.8

1,599.7

1,489.8

1,499.0

245.3

187.5

116.4

122.5

43.0

236.7

159.1

144.8

105.1

43.5

217.8

147.7

146.0

100.1

44.0

193.1

146.7

104.5

102.0

45.5

202.8

150.9

164.7

111.5

46.75

Ansell Limited – Annual Report 2019Results Commentary
We have provided our results on both a Statutory and Adjusted
basis for Continuing Operations. The Adjusted results have
excluded the costs incurred during the year under the
Transformation Program embarked upon following the sale
of the Sexual Wellness (SW) business. As in prior years, we have
also normalised the prior period for constant currency and
foreign currency impacts. The adjusted results show solid revenue
and profitability growth in what was another successful year.

Statutory Results

US$m

Sales
EBIT1
Profit Attributable
Operating Cash Flow2
Earnings Per Share – US cents
Dividends Per Share – US cents

FY18

1,547.5
557.0
484.3
93.6
336.8
45.5

Group

FY19

1,499.0
157.3
111.7
133.3
82.6
46.75

Continuing Operations
FY19
FY18

1,489.8
157.8
138.8
85.5
96.5

1,499.0
157.3
111.7
133.3
82.6

Adjusted

FY19

1,499.0
202.8
150.9
164.7
111.5

FY18

1,489.8
193.1
146.7
104.5
102.0

1. EBIT defined as Earnings Before Interest and Tax.
2. Net cash provided by operating activities (after tax paid) per the Consolidated Statement of Cash Flows adjusted for Net Capex, interest received and paid

(net interest). Adjusted Operating Cash Flow is the Operating Cashflow from Continuing Operations excluding Transformation Costs of $31.4m for FY19 (FY18: $19.0m).

Key Definitions

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

Constant Currency
The presentation of constant currency information is designed to facilitate
comparability of reported earnings by restating the prior period’s results
at the exchange rates applied in determining the results for the current
period. This is achieved by analysing and estimating, where necessary,
revenue and cost transactions by underlying currencies of our controlled
entities. These transactions are converted to US dollars at the average
exchange rates applicable to the current period on a month by month basis.

Adjusted Results
Adjusted results are Continuing Operations results after excluding
the impact of the Transformation Costs and the FY18 change in accounting
estimate for development costs.

Adjusted Constant Currency
Adjusted constant currency is Constant Currency (as described above)
after excluding the impact of the Transformation Costs and the FY18
change in accounting estimate for development costs.

Organic Constant Currency
Organic constant currency is Constant Currency information
(as described above) after excluding the impact of acquisitions,
divestments and exited products.

In addition, the following adjustments are made to the current and prior
year’s results: the profit and loss impact of net foreign exchange gains/
losses is excluded; and the foreign exchange impact on unrealised profit
in stock is excluded.

Transformation Costs
Summarised in Note 2: Segment Reporting. They include Asset
Impairment, Restructuring and costs of the Transformation Program
totalling $45.5m in FY19 ($24.1m FY18).

The principles of constant currency reporting and its implementation are
subject to oversight by the Audit and Compliance Committee of the Board.
It is considered as supplemental non-IFRS financial information.

Ansell Limited – Annual Report 2019
Our Global Footprint

Every day, more than
12,000 people in 55 countries
across four regions bring
their passion and dedication
to the design, manufacturing
and marketing of our
products on which millions
of workers and healthcare
professionals rely.

The Transformation Program and
further significant investment in FY19
have seen us fundamentally reshape
our core manufacturing business,
with fewer, larger and more modern
manufacturing facilities.

Map Key

Corporate hubs

Offices

Manufacturing and distribution facilities

Research and development facilities

Images
Page 04 left: Chemical line in Kedah, Malaysia.
Page 04 right: Knitting machines in Seeduwa, Sri Lanka.
Page 05 left: Dipping line in Melaka, Malaysia.
Page 05 right: Biomass boiler in Biyagama, Sri Lanka.

North
America

Europe,

Middle East

& Africa

Latin America
& Caribbean

Asia Pacific

Ansell Limited – Annual Report 2019

North

America

Europe,
Middle East
& Africa

Latin America

& Caribbean

Asia Pacific

Ansell Limited – Annual Report 2019Chairman’s Review

Our core manufacturing base is now consolidated,
scaled for globally leading performance and
closely connected to our R&D centres.

Dear Fellow Shareholders,

Global markets in 2019 were frequently volatile, uneven and
unpredictable, and Ansell and its customers were not immune
to this instability. I am pleased to say that your Company met
these challenges with strength and resilience, maintaining
organic growth while at the same time completing the core
elements of our ambitious Transformation Program.

Our core manufacturing base is now consolidated, scaled for
globally leading performance and closely connected to our
R&D centres. We have fewer plants, producing more output,
utilising better technology. The final phase of our Transformation
Program, which will see our global logistics systems streamlined
and modernised for faster and more comprehensive delivery to
customers, is also well underway. Management is also making
sound progress in the planning, testing and implementation of
elements of the Company’s digital transformation to take
advantage of the opportunities offered by the latest potential
networking advances in smart production, logistics and
distribution so profound that analysts have christened them
collectively as the Industrial Revolution 4.0.

This year we made significant steps to prepare for the CEO
succession in 2021. The Senior Executive Team was strengthened
with a number of executive appointments. Selected internal
candidates for the CEO role have been given new opportunities
to gain broader experience and the Board is taking a keen
interest in their progress.

As well, Board renewal has continued apace. Christine Yan, a highly
experienced US and China-based manufacturing executive, joined
the Board this year. This brings a 44/56 gender balance to the
Board, which will increase to 50/50 upon my retirement later in the
year – a target we committed to as a priority some years ago.

Ansell takes its social responsibility commitments seriously. I urge
shareholders to read closely the Corporate Social Responsibility
(CSR) and Sustainability section of this Annual Report, as well as
our FY19 CSR and Sustainability Report, which will be released
later this year. I welcome the impact of CSR reporting. It has given
clear standing to issues such as working conditions, gender equality
and protection of the environment, and where we fall short we can
measure how much we need to improve and do better.

This year a number of labour standards issues in our industry
came to the attention of global observers. We committed to a
comprehensive global review of labour standards in the Ansell
supply chain, with a focus on safe working hours and sensible
utilisation of rest days. The review covered both third-party
suppliers and Ansell’s own facilities. Our foremost responsibilities
are to provide a safe working environment and to meet the
legally required standards of the countries in which we operate.
We also assessed the appropriateness of guidelines of the
International Labour Organization (ILO) and other recognised
organisations. This review is now complete and we have
delineated the appropriate standards to ensure the health
and safety of our people. Further details regarding our labour
standards can be found in this Annual Report and in our 2019
CSR & Sustainability Report.

In closing I would like to reflect for a moment on Ansell Limited and
its journey over the recent years of my association with the Company.

Ansell Limited is part of a very
select group of companies that
have managed to survive for over
125 years. Upon reflection, I think
the major factors that have
contributed to this are a clear
sense of purpose, quality products
and sound professional values.
In saying this, I do not wish to
ignore the fact that the Company
has been through its share of
challenges, both externally and internally generated. However,
it is the way the Company and its people have addressed the
challenges, and continually sought better ways of serving our
customers and end users, that has underpinned our ability
to sustain and grow the enterprise.

Ansell Limited – Annual Report 2019Since joining the Ansell Board in 2005, I have seen the Company
rebuild its balance sheet, renew its management team and
re-cast the strategies to underpin future success. The journey
has been a long and challenging one, as the Company had been
through a prolonged period of under-investment in people and
their capabilities, modern processes and equipment, and R&D.
In contrast to the relatively quick turnarounds that dot-com
or financial services companies can achieve, fundamentally
remediating a multi-faceted manufacturing company takes
considerable time, effort and focus.

Modern business finds itself today in one of the most dynamic
periods of economic history, with geopolitical, technological,
demographic, climatic, social and economic challenges all
intensifying. This makes planning and running a global company
extremely complex and demanding. Our management bench is
both resourceful and resilient and continues to develop in
capability as it steps up to face the demands of today’s and
tomorrow’s environment. The Ansell Board continues to review
the required capabilities of its members as well as those for the
senior management of the Group – and seeks to build and import
capability as required.

It has been my privilege to be involved with Ansell over the
past 14 years. I would like to thank the customers, shareholders
and staff of the past and present for their role in making this
possible. In particular, I would like to thank my Board colleagues
over the years for creating a challenging environment where

the ‘appropriate’ outcome was always the objective, and
professionalism and a sense of humour were maintained in the
face of all situations. Finally, I would like to thank Magnus Nicolin
for his insightful, courageous and energetic leadership of
Ansell through one of the biggest transformations in the
Company’s history.

In summary, Ansell Limited is well placed to face the future with
a clear purpose and strategy. It has a capable Board to be led
by John Bevan, and management team being led by Magnus Nicolin.
My thanks to all associated with the Company and I wish you well.

Glenn L L Barnes
Chairman

Ansell Limited – Annual Report 2019Chief Executive Officer’s Review

As a result of the great work by all the Ansell
team, our financial results for the year met or
exceeded guidance. We enjoyed a good year
overall, with results improving in the second half.

Dear Shareholders,

I want to start this year by reporting progress in a field that is critical
to Ansell – not just in the way we work, but in all we do: safety.

Safety

Ansell is a safety company and safety in our own workplace is
fundamental to everything we do. This year we delivered our
lowest injury rates on record and very strong results against key
safety metrics. I congratulate our staff on this excellent outcome.
It is important for Ansell to demonstrate that safety is not just
core to the products we sell, but that it is central to how we
conduct our own business.

Lost Time Injuries (LTIs)

y
c
n
e
u
q
e
r
F

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

3
0
0
2

4
0
0
2

5
0
0
2

6
0
0
2

7
0
0
2

8
0
0
2

9
0
0
2

0
1
0
2

1
1
0
2

2
1
0
2

3
1
0
2

4
1
0
2

5
1
0
2

6
1
0
2

7
1
0
2

8
1
0
2

Ansell

Leading Science Company

Leading Healthcare Company

Leading Personal Care Company

Leading Packaging Company

Leading Food & Beverage Company

Leading Life Science, Healthcare
& Agricultural Company

Leading Wind Turbine Company

Performance in 2018/19

As a result of the great work by all the Ansell team, our financial
results for the year met or exceeded guidance. We enjoyed a good
year overall, with results improving in the second half. We saw sales
up 1%, EBIT for Continuing Operations up 5%, Earnings Per Share
(EPS) up 9% and Profit Attributable up 3% (on an adjusted results
Continuing Operations basis). This result was delivered in an
increasingly uncertain global economic environment with slowing
economies in Europe and increasing trade tensions worldwide.

These results deliver on our promises and further enhance the
position of Ansell.

Adjusted Results Continuing Operations

+1%

+5%

Sales up

EBIT up

+3%

Profit
Attributable up

+9%

EPS up

Adjusted Results in Constant Currency

+3%

+4%

Sales up

EBIT up

+5%

+11%

Profit
Attributable up

EPS up

Delivering on Our Promises

We told the market on October 2017 that we would deliver:

3–5% Organic sales
growth p.a.

Delivered 3.2% on constant
currency basis but 1.9%
organic growth for FY19 after
adjusting for acquisitions

5–10% EBIT growth

Delivered 5% in FY19 

5–10% EPS growth

Increase 250bps to reach
14–15% ROCE by 2021

Delivered 11% on constant
currency basis in FY19



Delivered 30bps
improvement to
reach 13.2% in FY19



From the proceeds of the Sexual Wellness sale, we promised
to invest our cash effectively and profitably, and during
FY18/19 we deployed:

$90m in accelerated profitable
and transformative investments

$80m in acquisitions

$265m Share Buyback Program

$125m dividends increasing our
dividend for the 16th year in a row

Delivered 

Ansell Limited – Annual Report 2019HyFlex 11-542
Cut resistant level 7 glove

Focused on Executing our Strategy

We have adopted four key strategies to make Ansell stronger:
through parallel focus on innovation, emerging market
development, leveraging our already industry-leading and trusted
brands, and through close partnerships with leading distributors.
We made solid progress in all these strategies during the year.

Through investment in innovation, new product sales in our
Industrial business held up at roughly 13% of all sales. Although
this was slightly below last year’s level, it was a good achievement
given the number of important product lines that were no longer
categorised as ‘new’ this year. New product sales in our Healthcare
business rose from 14% to 15%, reflecting a greater focus on
innovation. Examples of key innovations include our proprietary
GLOVE-IN-GLOVE Double Gloving Technology and the new thin
cut-resistant level 7 product made with a unique proprietary
combination of materials to provide high cut level protection.

We expanded our sales coverage in emerging markets such as
Mexico, Latin America, China, South-East Asia, India and Africa.
Emerging market sales grew 5% during the year, with particularly
strong growth (7%) in the second half. Emerging market sales in the
first half were impacted by slower economic conditions triggered
by international concerns about trade barriers. As those concerns
dissipated, both emerging and developed markets improved.

Our core brands continued to grow in absolute terms and as
a percentage of total Ansell sales. HyFlex® flexible mechanical
protection products grew 1.8% to approach $300m as our largest
brand and AlphaTec® chemical protection products, our newest
mega brand, grew 8.3% to surpass $120m.

Ansell Limited – Annual Report 2019

Chief Executive Officer’s Review continued

Our distributor partnerships worldwide enjoyed strong
momentum with existing partners and were augmented by the
number of new distribution arrangements growing year on year.

facilities in Vietnam, Malaysia, Sri Lanka and Bangkok. These
investments are yielding the returns anticipated and add to the
strengths of the Company.

With this focus, we are also able to enhance our lead in the
industry and to seek further avenues to differentiate Ansell from
our competitors. See our Eight Dimensions of Differentiation
diagram on page 12.

Ansell Transformed

I am pleased to report that the Transformation Program
we embarked upon following the sale of our Sexual Wellness
business is largely complete.

Transformation has seen us fundamentally reshape our core
manufacturing business. We have fewer and larger manufacturing
facilities, our plants are modern and appropriately scaled and
nearly all are located in low-cost jurisdictions with a good
balance of sovereign risk.

The sale enabled Ansell to invest in the simplification of the
corporate structure of our business: we reduced spending on
SG&A, closed three plants – two in Mexico and one in South Korea
– while also making significant financial investments in existing

We have invested $95m of cash on the Transformation Program,
with plans to deliver $35m in savings in FY20. So far, the program
has delivered 15% more than the original savings targets.
Some supply chain reforms are ongoing, but we expect to
see a significant further improvement in on time/in full (OTIF)
service levels by the end of FY20, resulting also in lower
inventory holdings and additional savings.

The modern Ansell is unique in structure and capability. We
develop our own materials, design, engineer and manufacture
the products that we market and distribute, and we advise and
mentor our customers in safety processes and outcomes along
the way. This uniquely integrated capability is the foundation of
our leadership because it enables us to focus on customer needs,
target our innovation and bring new products to market quickly.

The Ringers acquisition this year was a clear demonstration
of an acquisition in line with our strategy. By acquiring Ringers,
Ansell has complemented our already world-leading positions
in mechanical, chemical, single use and surgical gloves with the
number one market share position now in the impact protection
and oil and gas segments, and is further set to benefit from
Ringers’ highly creative design capability.

Ansell Limited – Annual Report 2019Digital, AI and Automation

Ansell made significant progress in digital marketing, in re-tooling
to leverage artificial intelligence (AI) and in enhancing the scope
and strategic use of automation and robotics during the year.

Over 20% of Ansell’s total sales are now sourced through a
variety of digital channels – distributors’ digital channels and
digital distributors, linking directly to specialist safety product
sites and selling directly through ansell.com.

During the year we launched a new global website that is cleaner
and simpler to use and promotes online engagement with
customers. In parallel, we have renewed our back-office systems
to support digital partner sites directly, with minimal processing
and handling.

The exciting new challenge is to deploy artificial intelligence
systems to analyse the huge volume of data produced in our
manufacturing operations and more broadly as we engage with
our customers’ safety needs across many industries. We believe
artificial intelligence systems will enable us to present highly
valuable safety insights from our unique databases on plant
operations in multiple industries, and specifically in the complex
chemical industry where millions of chemical combinations need
to be understood and managed.

To enhance automation, we have deployed a number of new and
more automated manufacturing lines during FY19, specifically in
packaging systems, in-line printing, load/unload and with smarter
semi-automated lines which reduce the time to on-board new
workers and improve their productivity more quickly.

Once again, I want to thank Ansell’s committed employees who
have continued to demonstrate their ability to drive our business
forward in a year of widespread change, building a stronger and
improved company for the future.

Finally, it has been a great pleasure to work with Glenn Barnes
during my period as CEO. We have created and sustained an
extremely productive and complementary partnership over
the years. I wish him all the best and I welcome John Bevan
as our new Chairman of the Board from November onwards.

Magnus Nicolin
Managing Director and Chief Executive Officer

Ansell Limited – Annual Report 2019Strategy

Ansell has global market-leading positions in single and
multi-use hand protection products for industrial and surgical
applications. We also have fast-growing positions in industrial
body protection products, safety solutions for surgical operating
theatres and clean room laboratory environments. Overall, our
product range is well balanced between products that are driven
by cyclical economic demands and those that are considered more
counter cyclical.

Eight Dimensions of Differentiation

Make it easy with
digital to do business
with and within Ansell
(including e-com)

Quality, reliability
and consistency
in supply

7.
DELIVERY
& SERVICE

8.
EASY
ENGAGEMENT

1.
CUSTOMER
INTIMACY

Employee

Industry leading customer
intimacy and expertise to
solve customers’ safety and
productivity challenges

2.
PRODUCT
RANGE &
INNOVATION

Broadest product
range and best
innovation capability
leveraging advanced
materials and new
technology

Regulatory and societal pressures that seek to improve safety
outcomes for workers around the globe are continuing to
outpace general economic activity. This provides a robust
platform for growth in demand for our products. Whether in
healthcare or industrial environments, regulatory requirements
and improving standards globally continue to help drive
demand for safety solutions.

Ansell’s continued ability to build and maintain its leading positions
in these attractive markets arises from a number of strengths.

• Foremost, there is 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 satisfy

protection needs 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 while 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

AnsellGUARDIAN® 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.

6.
MFG
ENGINEERING

Safety

Passion

3.
ANSELL
BRAND
EQUITY

5.
REGULATORY &
COMPLIANCE
SERVICES

4.
GEOGRAPHIC
COVERAGE

World-class
manufacturing,
engineering and
sourcing

Expertise in safety,
regulatory and compliance
solutions and services

Most trusted and
well known brands
worldwide

Broadest geographic and
channel reach

By leveraging the unique and well defined
strengths of Ansell, we deliver better
solutions to customers

Key:

Demonstrated competitive advantage
Aspirational competency

Ansell’s sources of competitive advantage can be summarised
under eight dimensions of differentiation. At Ansell, we believe
that our differentiation across all eight dimensions is unique
in our industry and sets us apart from all competitors. We have
continued to build upon and strengthen our eight dimensions
of differentiation.

Business Priorities
Our business priorities for advancing our strategic goals in FY19
were oriented around the following main objectives:

• Implementing the multi-year Transformation Program to

realise significant efficiencies in our manufacturing and supply
chain functions.

• New product development.

• Growing our emerging market footprint.

• 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 globally.

• Strengthening brand performance by expanding existing

growth brands such as HyFlex® as well as recently acquired
product ranges such as MICROFLEX® and MICROGARD® globally.

• Through a disciplined acquisition strategy we have:

• Building stronger and deeper partnerships with our key

– strengthened our core market positions;

distribution partners.

– 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.

• Working to resume growth of our leading synthetic surgical range.

• Reduce wastage levels in our key manufacturing plants.

• Improving 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 capex

investments and our sharper focus Transformation Program.

• Strategic and disciplined acquisition evaluation.

Our progress on these goals are detailed on pages 15 to 21.

Ansell Limited – Annual Report 2019Outlook

Shareholder Value Creation Model

At Ansell, we strive to be focused, efficient and agile in executing our differentiated business proposition. By consistently delivering
on our promises, we aim to gain market share and grow profitability, which in turn will improve shareholder value.

Our shareholder value creation model is summarised below.

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p
a
C
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By Being

Ansell will

Targeting

Differentiated (8 dimensions)

Focused

Efficient

Agile

Gain Share
• Organically through customer focus
• By acquisition

Demonstrate industry leadership in
• Innovation
• Manufacturing capability
• Supply chain excellence

3–5% Organic growth p.a.

5–10% EPS growth p.a.

ROCE1 improving to 14–15% range by FY20

Strong cash flow generation

Achieving High Return by Reinvesting in the Base Business

Disciplined Synergistic Acquisitions, Returning Above WACC

Continued Dividend Growth

Opportunistic Buy-backs

1. Excluding impact of the Transformation Program and phasing the impact of recent acquisition costs in the funds employed over a three year period.

Priorities for Shareholder Value Creation
Ansell ranks its strategic priorities according to the most important
drivers for long-term shareholder value, these being organic
revenue growth, profitability growth and strong cash flow
generation and successful deployment of capital.

We continue to see growth opportunities
in some regions with the IGBU business set
to benefit from new product sales initiatives,
emerging market growth and ongoing
benefits from the Transformation Program.

Organic Growth
With slow or slowing economic conditions observed for FY19
in our key geographies of the Eurozone and the US, a higher
degree of economic uncertainty is pervading global markets
for FY20. We continue to see growth opportunities in some
regions with the Industrial Global Business Unit (IGBU) set to
benefit from new product sales initiatives, emerging market
growth and ongoing benefits from the Transformation Program.
This view assumes no major disruptions will impact the business
as a result of any new tariff and Brexit-related economic shocks.
We believe that organic growth within our targeted 3% to 5%
range is still achievable, subject to the caveats above.

Profitability and Cash Flow

Profitability
Having achieved meaningful manufacturing and supply chain
productivity improvements in FY19, our aim is to grow the business
and maintain or improve our EBIT margins. If this can be achieved,
then EPS growth of 5–10% p.a. is considered realistic by the Board.

Cash Flow
With elevated inventory levels at June 2019, we believe that
ongoing improvements to our supply chain processes will lead
to meaningful improvements in our stock turnover ratios.
We are aiming to do this while improving our ‘on time/in full’
(OTIF) customer metrics and this in turn is expected to result
in higher sales via improved customer focus.

Ansell Limited – Annual Report 2019

Outlook continued

Capital Deployment – ROCE Improvements
Our priority for capital deployment continues to be:

• investment in core business to drive growth and productivity; and

• acquisitions that meet our strategic and financial criteria.

Our Transformation Program is a clear example of investment
in our core business. We are also investing in other areas of our
business, which include the ongoing ERP roll-outs which are now
planned for our manufacturing facilities and Asia Pacific sales
and marketing centres. We are also planning further investments
in e-commerce and Customer Relationship Management (CRM)
planning tools to augment our customer focus initiatives.

On the acquisition front, we continue to assess businesses with a
strong strategic fit and we hope to announce further acquisitions
in the near future.

Ansell also expects to be able to continue its balanced capital
deployment approach through continuing to buy back shares
as previously announced and retaining a focus on dividends
as an important part of the cash return to shareholders.

The Board, management and staff are genuinely excited by the
future prospects of the business and we look forward to delivering
on our promises.

Ansell Limited – Annual Report 2019Our Performance

Financial Reporting Presentation

Impact of Sexual Wellness Divestiture and Other
One-off Items
Ansell divested its Sexual Wellness Global Business Unit during
FY18, the results of which are reported under Discontinued
Operations in Table A below.

In addition, three other items were announced during FY18:

• Multi-year Transformation Program;

• Deferred tax asset revaluation gains from the US corporate

tax rate changes; and

• Change in estimated useful life of development costs.

Table B below is provided to summarise the financial impact
of these items, while Table C summarises the Group’s FY18 and
FY19 income statements after these adjustments.

To ensure that the financial results of the Group are meaningfully
understood, the commentary on the FY19 financial statements
will be provided on the financial results adjusted for these items
(‘Adjusted Results’).

Foreign Exchange Impacts and Organic Growth
Ansell is a US$ reporting entity with a majority of its commercial
operations transacting in US$. However, Ansell also has substantial
non-US$ transactions across a diverse multinational footprint.
While the Group maintains a foreign exchange hedging program,
it is not immune to foreign exchange impacts on its results,
particularly via foreign exchange translation effects. As a result,
the Group also provides constant currency financial information
so that foreign exchange translation impacts are excluded.

In determining the rate of organic growth, the Group reports
its year over year growth after normalising results for
constant currency impacts and also the effect of acquisitions
and divestitures.

Table A – Financial Summary

US$m

Sales

EBIT

Profit Attributable

EPS (US¢)

Dividend (US¢)

FY18

Continuing

Discontinued

1,489.8

157.8

138.8

96.5

45.5

57.7

399.2

345.5

240.3

–

Group

1,547.5

557.0

484.3

336.8

45.5

FY19

Continuing

Discontinued

1,499.0

157.3

111.7

82.6

46.75

–

Group

1,499.0

157.3

111.7

82.6

46.75

Table B – Summary of Adjustments to the Statutory Income Statement

US$m

Consolidated Group

Less – Gain on sale
of Sexual Wellness GBU*

Less – Sexual Wellness
trading income

Continuing Operations

Add back – Transformation
Costs

Exclude – Major non-cash,
non-recurring Items:

Estimated useful life change
of development costs

Deferred tax revaluation

–

Adjusted income

1,489.8

* Sale completed September 2017.

FY18

FY19

Sales

1,547.5

Profit
Attributable

484.3

EBIT

557.0

EPS
(cents)

336.8¢

–

(398.2)

(344.8)

(239.8)¢

(57.7)

1,489.8

(1.0)

157.8

(0.7)

138.8

(0.5)¢

96.5¢

Sales

1,499.0

–

Profit
Attributable

111.7

EBIT

157.3

EPS
(cents)

82.6¢

–

1,499.0

157.3

111.7

82.6¢

24.1

18.7

13.0¢

11.2

–

193.1

7.9

(18.7)

146.7

5.5¢

(13.0)¢

102.0¢

–

45.5

39.2

28.9¢

–

1,499.0

202.8

150.9

111.5¢

Ansell Limited – Annual Report 2019Our Performance continued

Table C – FY18 and FY19 Income Statement
Excluding Adjustments

US$m

Sales

GPADE

SG&A

EBIT

Net interest

Taxes

Minority interests

Profit Attributable

FY18
Adjusted

1,489.8

FY19
Adjusted

1,499.0

517.7

(324.6)

193.1

(12.5)

(32.1)

(1.8)

146.7

514.1

(311.3)

202.8

(13.6)

(36.9)

(1.4)

150.9

Group Sales Commentary1
Sales growth momentum slowed during the year, with sales up
1.9%. While the Healthcare GBU (HGBU) business growth of 4.0%
was within our target range of 3% to 5% per annum, the Industrial
GBU (IGBU) business declined 0.4% in soft market conditions in
the Eurozone and elsewhere.

The HGBU business saw growth in both emerging and mature
markets with significant growth coming from synthetic surgicals,
clean room products and the exam glove range.

The IGBU business was significantly impacted by declining demand
in the European automotive sector as regulatory changes impacted
car manufacturers. Furthermore, there is early evidence of a
slowdown in the US economy stemming from the trade sanctions
being implemented between the US and China.

Overall we continue to see the benefits of our channel partnerships
(up 4.2%), emerging markets (up 4.9%) and new product sales
with our HyFlex® INTERCEPT™, MICROFLEX® global expansion
and the triple-layer Chem3™ initiatives all delivering pleasing
results. Ultimately, these positives were offset by macro-economic
conditions affecting our IGBU business, which are discussed in
greater detail later in the Report.

Group EBIT Commentary

While sales growth was subdued by the issues affecting the IGBU
business, we saw a strong increase in EBIT (up 5% and up 4.4%
on a constant currency basis).

GPADE2 margins of 34.3% were just below the prior year of 34.7%.
While suppressed during the first half of FY19 due to raw material
pricing, margins improved by 280 basis points in the second half
due to a combination of price increases, some easing of raw
material cost pressures and Transformation benefits flowing
through our manufacturing facilities.

Discretionary expenditures were well controlled during the second
half and with Transformation benefits also flowing through, our
SG&A expenses were well below the prior year, which combined
with the higher sales to deliver a strong EBIT result.

Transformation Program

During FY18, the Group announced a multi-year Transformation
Program to more sharply focus on ongoing business activities
following the Sexual Wellness divestiture. With an estimated
cost of between $60m to $80m of expenses and a further $38m
of capital expenditure, the Group expected significant savings
to flow through to the results via SG&A cost reductions and
also from manufacturing and supply chain efficiencies.

Following the expenditure of $24.1m in FY18, the Group incurred
a further $45.5m of costs during FY19 to bring the cumulative
expenses to $69.6m. The major component of the expenditure
during FY19 related to the closure of our factories in Mexico
and South Korea and a further $38m capital expenditure on
ensuring expansion in Vietnam, Sri Lanka and Thailand.

CEO succession was also included within the Transformation
category as the Board undertook a rigorous process of evaluating
the internal CEO candidates, resulting in a number of executive
level changes being implemented – see the Remuneration Report
for further details.

1. All growth rates are based on organic growth, which is year over year growth on a constant currency basis and excluding acquisitions and divestitures.

2. GPADE means Gross Profit after distribution expenses. Gross Profit means sales less cost of goods sold.

Ansell Limited – Annual Report 2019Borrowing Costs and Taxes

Net interest costs were up 9% to $13.6m due mainly to higher
year on year debt levels. While cash flow generation was again
very strong, the Group’s net debt position increased due to
the significant outlays for the share buy-back ($176m up 91%)
and the Transformation Program ($31m cash costs up 65%).
Furthermore, the Group also spent $75m in acquisition
expenditures in the second half.

Taxation expense of $36.9m reflected an effective tax rate of
19.5%, which was above the prior year rate of 17.8%. The increase
in the effective tax rate was due partly to the recognition of a
deferred tax asset relating to German taxation losses in FY18.

Cash Flow Commentary

Net Cash Flow From Operating Activities
The Group generated $188.9m of net cash inflow from its operating
activities, which was up significantly on the $153.6m the previous
year. However, in keeping with previous commentary, the cash
flow needs to be normalised for the Sexual Wellness business
trading activities (FY18) and cash Transformation costs across
the two years as per the table below:

Net cash inflow from
operating activities

FY18

FY19 % Change

153.6

188.9

23.0%

Less – Sexual Wellness business

Add – Transformation cash costs

(8.8)

19.0

31.4

Net cash inflow from operating
activities excluding
Sexual Wellness and
Transformation impacts

163.8

220.3

34.5%

1. Working capital is summarised in Note 7 of the financial statements.

The year on year improvement of $56.5m is due mainly to a
combination of working capital management and lower tax
payments in FY19.

Working Capital1
Although working capital balances at June 2019 are higher than
those at June 2018, after excluding the business acquisition effects
of $11m and other non-cash impacts, the underlying working
capital levels fell – contributing $9.6m to operating cash flow.

The June 2019 stock balance has been temporarily built up due
to the Transformation Program. Management was incentivised
to reduce inventory significantly this year after the plant closures
had occurred, but were unable to achieve this target as sales
momentum slowed.

Net Cash Provided By/(Used In) Investing Activities
Ansell invested $123.7m cash in FY19 as compared to $476.8m
cash generated from its investing activities in FY18, which resulted
primarily from the sale of the Sexual Wellness business last year.
Approximately $80m of the FY19 spend relates to acquisition and
disposal initiatives, with $69.1m relating to the the Ringers Gloves
acquisition. Capital expenditure was $43.6m, which mainly related
to outlays in our Sri Lanka, Malaysia, Thailand and Vietnam
manufacturing facilities. These initiatives included new dipping
lines, site expansion initiatives and biomass boilers intended
to support our growth targets.

Cash Used In Financing Activities
After excluding the impact of the $170.9m repayment of
borrowings, the net cash used in financing activities increased
by $83.7m due mainly to the higher payments for Ansell’s
ongoing share buy-back (up $88.8m). During the year Ansell
spent $176.0m in acquiring 10.1m Ansell Limited shares under
the Group’s share buy-back program. A further $5.1m was spent
to acquire shares to settle the Performance Share Rights that
vested pursuant to the FY16 LTI Plan.

Ansell Limited – Annual Report 2019Industrial Global Business Unit

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 and equipment, food,
construction, mining, oil & gas and first responders.

Sales from Growth Brands now account for 70% of IGBU sales

#1 Global Brand
Approaching $300m

8.3% Growth
Surpassed $120m Sales

28.5% Growth
Achieved in FY19

Financial Summary

US$m

Sales
EBIT2
% EBIT/sales

FY18

FY19 % Change

CC%1

$715.5m
$86.9m
12.1%

$703.7m
$98.7m
14.0%

(1.6)%
+13.6%

+1.5%
+12.3%

1. CC refers to adjusted constant currency as described on page 3 of this Report.

2. EBIT excludes the impact of restructuring and transformation costs

(FY18: $11.6m, FY19: $34.1m) and the change in accounting treatment
for development costs of $7.3m in FY18.

Sales Performance
Sales were up 1.5% on a constant currency basis, but declined
slightly (down 0.4%) after normalising for acquisitions. Our two
largest markets either declined (EMEA) or slowed (North America),
while our smaller Asia Pacific and Latin America regions grew
strongly. Emerging markets growth was 3.7%, with pleasing
second half results in Russia and Brazil.

Organic Constant Currency Growth (-0.4%)

13.0

19.4

(22.1)

715.5

706.4

703.7

FY18

Acquired

FY18
Pro-forma

Growth
Brands

All Other

FY19

Portfolio Highlights
• The flagship HyFlex® brand continues to bring best-in-class,
innovative solutions to users in need of protection against
mechanical risks, including high-performance cut resistant
gloves with INTERCEPT™ Technology. Unfortunately, demand
for HyFlex® was impacted by a challenging environment in the
European automotive sector and growth was a modest 1.8%.

• EDGE®, which is targeted towards emerging markets, grew

very strongly (up 28.5%), while our INTERCEPT™ and FORTIX™
technology platforms continue to expand via our new product
development initiatives.

• Our AlphaTec® range grew 8.3% and our clothing range
grew 3.1%; however, our chemical range fell 1% overall.
Two significant drivers of this decline included the temporary
customer destocking on retail household gloves, and volume
reductions in low-end chemical gloves.

EBIT Performance
While sales performance was slightly down, EBIT growth was
very strong primarily driven by the Transformation Program,
which saw production shift from Mexico and Korea into lower-
cost locations. Gross profit margins improved by 190 basis points
during the year as a result. Furthermore, discretionary
expenditures were curtailed in the second half of the year when
it became apparent that sales momentum was not as strong
as targeted levels. Management is looking forward to growing
sales more strongly while maintaining or improving EBIT margins.

Brands

Ansell Limited – Annual Report 2019Our Industrial GBU

Safer.
Our industrial solutions and services provide
a safer workplace for our customer, improving
performance and reducing the risk of injury
in multi-risk environments.

Smarter.
Our market-leading regulatory know-how, focus
on innovation and extensive product portfolio
keep us ahead of the competition.

Stronger.
Safety solutions providing superior protection,
such as our INTERCEPT™ Technology, which
delivers highest levels of cut protection for
laceration risks across multiple applications
and risk environments.

Ansell Limited – Annual Report 2019Healthcare Global Business Unit

The Healthcare GBU manufactures and markets innovative solutions for a wide range of
customers, including hospitals, surgical centres, dental offices, veterinary clinics, first responders,
manufacturers, auto repair shops, chemical plants, laboratories, and pharmaceutical companies.
The portfolio includes surgical gloves, single use and examination gloves, clean and sterile
gloves and garments, and consumables used by healthcare, life sciences and industrial workers.

Sales from Growth Brands now account for 78% of HGBU sales

7.0% Growth

Surgical synthetic products
16.9% Growth

Life Sciences
11.1% Growth

Portfolio Highlights
• Surgical and Healthcare safety solutions grew 3.4% with strong

sales growth coming from Surgical synthetic products (up 16.9%).

• Life Sciences products continued to grow strongly (up 11.1%)

on the back of recent acquisitions of Nitritex and
gammaSUPPLIES. The BioClean™ brand was up 12%.

• Sales of single use and exam products grew 3.4%, driven by solid
growth in sales for industrial applications of 5.2% and growth in
emerging markets.

EBIT Performance
Trading margins fell during the first half due to raw material
cost increases. While price increases were implemented during
the year, not all increases were able to be passed on. However,
margins improved in the second half of the year due to a
combination of price increases, improved sales mix and some
easing of raw material costs. Discretionary expenditure was well
controlled during the year.

Financial Summary

US$m

Sales
EBIT2
% EBIT/sales

FY18

FY19 % Change

$774.3m
$120.1m
15.5%

$795.3m
$115.3m
14.5%

+2.7%
(4.0)%

CC%1

+4.8%
(2.4)%

1. CC refers to adjusted constant currency as described on page 3 of this Report.

2. EBIT excludes the impact of transformation costs (FY18: $5.4m and FY19:
$3.1m) and the change in accounting treatment for development costs
of $3.9m in FY18.

Sales Performance
Organic sales growth3 of 4.0% was driven by strong growth
in emerging markets such as Mexico, India, Korea, China and
Russia, while higher new product sales also assisted growth
in mature markets.

Organic Constant Currency Growth (4.0%)

19.8

10.7

5.9

(15.4)

774.3

764.8

795.3

FY18

Acquired

FY18
Pro-forma

Growth
Brands

All Other

FY19

3. Organic sales growth refers to constant currency sales growth after adjusting

for acquisitions and divestitures.

Brands

Ansell Limited – Annual Report 2019Our Healthcare GBU

Safer.
For more than 125 years, we have been developing
new products and technologies to keep healthcare
professionals, patients, scientists and clean room
and general workers safe.

Smarter.
Our market leading regulatory know-how, our
clinical, technical and R&D experts and our focus
on innovation and customer needs ensure we
deliver high quality, functional and revolutionary
products to the industry.

Stronger.
We provide solutions and services for today
and tomorrow. Combining innovation, advanced
technologies and best in class manufacturing
and quality assurance practices, we are able
to offer a broad portfolio to meet constantly
evolving needs of our customers.

Ansell Limited – Annual Report 2019Corporate Social Responsibility and Sustainability

A Responsible and Responsive Strategy

Better
Society

Better
Environment

Better
Business

Employees and
wider workforce

Community

Business ethics

Water

Energy and
carbon

Materials and
waste

• We care about our people and safety is our top priority
• We support our communities
• We play fair and conduct business ethically

• We use natural resources with care
• We work to continually lower our GHG emissions
• We respect the local environment

Customers

Suppliers

Investors

• We provide our customers with safety and productivity solutions
• We choose like-minded partners
• We reward investors

Ansell is committed to leading the Personal Protective Equipment
(PPE) industry in responsible human rights, environmental and
governance practices and acknowledges that sustainability
is vital to our business success.

Below provides a summary of some of the key sustainability topics
for FY19. Please refer to our standalone CSR & Sustainability Report
to be released in November 2019.

Employees and Wider Workforce
For 125 years, Ansell has delivered advanced protection solutions
to millions of people around the world. We are proud of our track
record in creating a safe working environment at Ansell and we
strive to promote and respect the rights and well-being of all
workers. As announced earlier this year, given the increased
scrutiny of labour practices in our industry, Ansell committed to
a comprehensive review of labour standards in our facilities and
those in our supply chain. This review is now complete, and we
have concluded that we now have standards appropriate to
ensure the health and safety of our people and for those working
in our supply chain.

As a responsible business with high standards for business ethics
and values, Ansell is committed to operating in accordance with
all applicable national laws as a minimum and will apply more
stringent working conditions in circumstances where national
standards do not meet the company’s health and safety standards.
Ansell aligns with the UN Guiding Principles on Business and
Human Rights (as well as the ILO core conventions) and respects
human rights as set out in the Universal Declaration of Human
Rights. Ansell’s commitment to respecting human rights extends
to its supply chains and we seek to engage with suppliers and
contractors who aspire to do the same.

Ansell has a unique geographic manufacturing footprint, with
major activities in many countries with different workforce
standards and cultures, each with different approaches and
methods for regulation. We have reviewed our practices against
several highly detailed universal standards proposed by public
interest groups and have concluded that a one size fits all
approach is neither desirable nor practical when taking into
account the various issues and stakeholder views that require
consideration. Ansell will evaluate, on an ongoing and case-by-case
basis, whether implementing any additional requirements on work
practices would be prudent in light of concerns for worker safety.

During our review we came to a new appreciation of just how
difficult and complex the process of managing working hours can
be at some of our manufacturing sites. Despite the best intentions

and having clear policies and guidelines in place, many variables
and complications – ranging from changing shift patterns and the
deployment of temporary workers, to absenteeism and employee
turnover – make it very challenging for our plant management
and supervisors to manage the more than 60,000 work-hour
events which occur (on average) each week across our production
sites. The outcome of the review is that we have re-affirmed a
clear standard of full compliance with applicable local national
laws and standards.

Many of Ansell’s production workers expect to receive high levels
of overtime, looking to maximise their work hours as much as
possible over short periods – and in the case of migrant workers,
to maximise earnings during their time spent away from home.
Adherence to rest day requirements and overtime limitations
often cause employees to look instead for work at other local
companies who will offer them additional overtime (without rest
days) despite the existing but sometimes unenforced regulations.
Also, some of Ansell’s production sites are in geographies where
labour markets are booming and competition for workers is high.

In response to these challenges, Ansell offers competitive
compensation and an attractive work environment to retain
employees and to recruit and attract a dependable workforce.
We have already hired several hundred additional workers across
key sites (including in Sri Lanka and Vietnam) – to preemptively
ensure compliance with requirements and limitations as we
have increased production loads at expansion locations in line
with our planned Transformation Program. We have implemented
tracking tools to monitor compliance (including the use of card,
finger or face scanning to capture worker attendance and
automated time-clock systems in most sites). Also, we have
instituted manager and supervisor training, with a further view
towards developing and implementing additional tools and
technologies to enable improved ‘real-time’ shift and personnel
planning and decision-making to minimise and prevent mistakes.

Our learnings from the highly publicised audit failures of
key suppliers in the glove manufacturing industry have led
us to mandate third party independent audits of our suppliers
within this challenged industry segment. Where such audits
have identified non-compliance with law, we have amplified
pressure for corrective action and will continue to audit suppliers
in our supply chain until compliance is achieved and at regular
intervals thereafter.

We believe we have made and are making further progress and
are facing up to our responsibility to ensure that human rights
are preserved and enhanced through sustainable and ethical
business practices.

Ansell Limited – Annual Report 2019Environment
As a leader in its industry, Ansell recognises the obligation to
operate more efficiently, protecting resources and communities
through strategic environmental management. We understand
that companies that fail to adequately manage environmental
risk issues – from climate change and energy, to fresh water
management, pollution and waste – may face increasing
pressure on not only their social licence to operate, but their
ability to continue to generate strong financial returns.

We understand that the bar of leading practice in environmental
sustainability management in general – and climate change risk
management and disclosure in particular – continues to rise.
We will continue to work to raise our own ambition accordingly,
and to ensure our ambition for business growth goes hand in
hand with improvement in environmental performance.

In FY18, Ansell set environmental commitments and targets
to advance its sustainability vision. These goals are:

GHG Emissions

Energy

Water

Waste

Goals:

25% of Scope 1 (direct) and Scope 2
(indirect) emissions, in tonnes of
CO2– equivalent/$M production value,
below FY16 baseline by end of FY25.

Continuous improvement
and reduction of
energy usage.

15% reduction in water usage,
measured in m3/$M production
value, below the FY16 baseline by
the end of FY25.

Zero waste to landfill
by the end of FY23.

Refer to our 2019 CSR & Sustainability Report, to be released in November 2019, for details of our progress in FY19 against these goals.

Climate Risk
In FY19, we commenced our journey to assess and disclose our
material climate change-related financial risks in accordance
with the Recommendations of the Taskforce on Climate-Related
Disclosures (TCFD). We formalised this commitment by joining
the growing list of leading companies to register their support
of the Recommendations with the TCFD in Q4.

We are pleased to provide our inaugural disclosure with regard
to the Recommendations of the TCFD in this Annual Report.

Our approach to climate change is overseen at board level,
by the board’s CSR & Risk Committee. The Committee is supported
by our executive CSR & Sustainability Council (whose members
include the CEO, CFO, General Counsel, CHRO and Head of
Operations), who have responsibility for the development and
operational implementation of Ansell’s strategic approach
to climate-related risks and opportunities.

We understand that climate change may have both physical and
economic transition impacts which, if left unaddressed, may
present both financial risks and missed opportunities. In
responding to these challenges, we have prioritised initiatives

including country-level physical risk assessments in 27 key
countries in which we operate, and the building of economic
resilience via quantified targets to reduce our own scope 1 and 2
emissions footprint. We have continued to progress and refine
our strategic approach to the identification, management
and disclosure of climate-related risks in FY19, including:

• commencing our TCFD reporting journey, and formally

registering Ansell as a supporter of the Recommendations
of the TCFD;

• participating in the CDP (formerly Carbon Disclosure Project)
climate and water environmental stewardship assessment
process (our second year).

These initiatives are not at the limits of our ambition. We understand
that our climate change strategy and risk management must be
dynamic, and continually improve. In future, we intend to reflect
upon the insights from our initiatives to date to review and
strengthen our approach to both physical and economic
transition risk analysis and management. The outputs of that
review will be consolidated and formalised within a dedicated
Climate Change Policy, to provide a framework guide for our
climate risk strategy and risk management into the future.

Ansell Limited – Annual Report 2019Board of Directors

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

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

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

Current Directorships:
Non-executive Director
of Stronghold Pty Ltd, and
Barnes Investments Pty Ltd.

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

The Board considers
Glenn Barnes to be an
independent Director.

Magnus R Nicolin
Managing Director
And Chief Executive
Officer
BA (Stockholm), MBA (Wharton)
Based in Brussels, Belgium

Appointed Managing
Director and Chief Executive
Officer in March 2010.

Current Directorships:
Non-executive Director
of 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.

As an Executive Director,
Magnus Nicolin is not an
independent Director.

John A Bevan
Deputy Chairman
BCom (UNSW)
Based in Sydney, Australia

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

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

Current Directorships:
Chairman of BlueScope Steel
Limited (2014 to present),
Non-executive Director of
Humpty Dumpty Foundation
(2017 to present) and Alumina
Limited (2018 to present).

Former Directorships:
Non-executive Director of
Nuplex Industries Limited
(2015 – 2016), Executive
Director of 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 UK.

The Board considers
John Bevan to be an
independent Director.

Marissa T Peterson
Non-executive
Director
BSc (MECH), MBA (Harvard),
Hon Doctorate (MGMT)
Based in California, USA

Leslie A Desjardins
Non-executive
Director
B. Industrial Admin,
Finance (Kettering),
MS. Management (MIT)
Based in South Carolina, USA

Appointed Non-executive
Director in August 2006.

Appointed Non-executive
Director in November 2015.

Chair of the Audit and
Compliance Committee and
member of the CSR & Risk
Committee and the M&A
Sub-Committee.

Current Directorships:
Director and Audit
Committee Chair of Terry
Fox Cancer Foundation
(2018 to present).

Former Directorships:
Director of Aptar Group
(2012-2015).

Mrs Desjardins is a former
international finance
executive with experience
in business performance
and growth. Mrs Desjardins
was formerly the Chief
Financial Officer of Amcor
Limited. Prior to Amcor,
she held executive roles at
General Motors Corporation,
in Canada, the US and
Australia, including Chief
Financial Officer GM Holden,
Controller for GM North
America, and Finance Director
for GM’s manufacturing
facilities in North America.
Mrs Desjardins has extensive
experience in finance, M&A,
strategy, government
relations and global
operations.

The Board considers
Leslie Desjardins to be
an independent Director.

Chair of the Human
Resources Committee
and member of the Audit
& Compliance Committee.

Current Directorships:
Director of Humana Inc.
(2008 to present).

Former Directorships:
Chair of Oclaro Inc.
(2011 to 2018).

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 with
an unprecedented legacy of
concurrently leading some
of Sun’s largest and most
effective organisations:
as Executive Vice President
of Services, Executive Vice
President of Worldwide
Operations, and as Chief
Customer Advocate. She has
extensive experience in
supply chain management,
manufacturing and quality,
logistics, information
technologies, customer
advocacy and leadership
development. Among her
awards are Women Inc’s
Most Influential Corporate
Director, Silicon Valley
Tribute to Women in Industry,
National Association of
Corporate Directors
Leadership Fellow, Filipinas
Magazine Corporate Leader of
the Year, National Co-op Hall
of Fame, and the Excellence
in Science and Engineering
Award from the Philippine
Development Forum.

The Board considers
Marissa Peterson to be
an independent Director.

Ansell Limited – Annual Report 2019W Peter Day
Non-executive
Director
LLB (Hons), MBA (Monash),
FCPA, FCA, FAICD
Based in Melbourne, Australia

Christina M Stercken
Non-executive
Director
BEcon & MEcon (Univ.
of Bonn), EMBA (Duke)
Based in Munich, Germany

William G Reilly
Non-executive
Director
BA (Fairfield), J.D (Seton Hall)
Based in New Jersey, USA

Christine Y Yan
Non-executive
Director
BS (Mech. Eng) (Shandong),
MSc, (Mech. Eng) (Wayne
State), MBA (Michigan)
Based in Connecticut, USA

Appointed Non-executive
Director in August 2007.

Appointed Non-executive
Director in October 2017.

Appointed Non-executive
Director in April 2019.

Chair of the CSR & Risk
Committee and member
of the Audit and Compliance
Committee and the
Governance Committee.

Current Directorships:
Chairman of Alumina Limited
(2018 to present, Director
since 2014), and Chairman
of Australian Unity
Investment Real Estate
Limited (2015 to present).

Former Directorships:
Boart Longyear Limited
(2014 – 2017), 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
and Investments 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 &
Compliance Committee, the
CSR & Risk Committee and
the M&A Sub-Committee.

Member of the CSR & Risk
Committee, the Human
Resources Committee and
the Governance Committee.

Member of the Audit &
Compliance Committee
and the Human Resources
Committee.

Current Directorships:
Ascom Holding AG, Landis
& Gyr Group AG, Myanmar
Foundation (Vice Chairman).

Mrs Stercken was a partner
at Euro Asia Consulting
PartG (EAC) until the end
of 2017. In this function,
Mrs Stercken helped
customers in machinery,
automotive, chemical,
healthcare and infrastructure
industries in strategy, M&A
and operational excellence
in growth markets. 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.
Mrs Stercken started her
career in Marketing at
BMW Pty. Ltd, South Africa.
Mrs Stercken brings a broad
range of competencies
relevant to Ansell’s
strategies, including M&A,
broad industry background
and business building in
developing markets. In her
function as Vice Chairman
of Myanmar Foundation,
Munich, Mrs Stercken
supports social projects
in Myanmar.

The Board considers
Christina Stercken to be
an independent Director.

Mr Reilly has over 35 years’
experience as an in-house
lawyer. 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 served with
three Chief Executive
Officers and has played
pivotal roles leading many
of Ansell’s corporate
strategic and legal initiatives,
including M&A, 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. Prior to joining
Ansell, Mr Reilly held senior
legal positions at C. R. Bard,
Inc., The Hertz Corporation
and McKesson Corporation.
In 2016, Mr Reilly was named
on the Financial Times first
ever Global GC 30 List.

As a recently retired
executive, William Reilly is
not an independent Director.

Current Directorships:
Non-executive Director of
Cabot Corporation (2019
to present), Non-executive
Director of ON Semiconductor
Corporation (2018 to present),
Non-executive Director of
Modline Manufacturing
Company Inc. (2014 to
present).

Ms Yan is an experienced
executive who has had a
distinguished career at
Stanley Black & Decker.
Ms Yan has held senior
management positions
in both the US and China,
including Vice President
of Sales and Marketing for
North America Automotive,
President of the Global
Automotive Division,
President of Americas for
the Engineered Fastening
division, President of Stanley
Storage and Workspace
Systems and more recently,
President of Asia and Vice
President of Integration.
Ms Yan brings a broad range
of general management
experience across different
geographies, as well as
experience in innovation,
business development, sales,
digital transformation and
marketing in the business-to-
business industry.

The Board considers
Christine Yan to be an
independent Director.

Ansell Limited – Annual Report 2019Executive Leadership Team

Magnus Nicolin
Managing Director and
Chief Executive Officer
BA, MBA
Based in Brussels, Belgium

Zubair Javeed
Chief Financial Officer
BA (Hons), ACMA, AMCT
Based in Brussels, Belgium

Neil Salmon
President, IGBU
BA, ACMA
Based in Brussels, Belgium

Darryl Nazareth
President, HGBU
BS, MS, MBA
Based in New Jersey, USA

Francois le Jeune
Senior Vice President –
Business Development,
Transformation and
Corporate Marketing
BS, MS, MBA
Based in Brussels, Belgium

Renae Leary
Chief Commercial Officer –
Americas
BA, MCom
Based in New Jersey, USA

Rikard Froberg
Chief Commercial Officer –
EMEA & APAC
MS, MA
Based in Brussels, Belgium

Michael Gilleece
Corporate General Counsel
BA, JD
Based in New Jersey, USA

Amanda Manzoni
Chief Human Resources
Officer
BS
Based in Brussels, Belgium

Peter Dobbelsteijn
Senior Vice President –
Global Supply Chain
BMkt
Based in Brussels, Belgium

Ansell Limited – Annual Report 2019John Marsden
Senior Vice President –
Global Operations and R&D
MEng
Based in Cyberjaya, Malaysia

Giri Peddinti
Global Chief Information
Officer
BE, MBA
Based in New Jersey, USA

Jocelyn Petersen
Vice President, Global FP&A,
Treasury & Investor Relations
BS, CPA
Based in Melbourne, Australia

Sean Sweeney
SBU Vice President & GM,
IGBU Mechanical Solutions
BA, MT
Based in New Jersey, USA

Paul Bryce
SBU Vice President & GM,
IGBU Chemical Solutions
Based in Hull, United Kingdom

Frederic Guyonneau
SBU Vice President & GM,
HGBU Life Sciences
MA Econ, MBA
Based in New Jersey, USA

Augusto Accorsi
SBU Vice President & GM,
HGBU Exam & Single Use
MBA
Based in New Jersey, USA

Angie Phillips
SBU Vice President & GM,
HGBU Surgical & HSS
BA, MT
Based in New Jersey, USA

Ansell Limited – Annual Report 2019Report by the Directors

This Report by the Directors of Ansell Limited (‘the Company’) is made for the year ended 30 June 2019. The information set out below
is to be read in conjunction with:

• Operating Financial Review appearing on pages 12 to 21;

• Remuneration Report appearing on pages 39 to 64; and

• 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)1

• Magnus R Nicolin (Managing Director and Chief Executive Officer)

• John A Bevan (Deputy Chairman)

• Ronald J S Bell2

• W Peter Day

• Leslie A Desjardins

• Marissa T Peterson

• William G Reilly

• Christina M Stercken

• Christine Y Yan3

1. Will retire from the Board on 14 November 2019.

2. Retired from the Board on 18 October 2018.

3. Appointed to the Board on 1 April 2019.

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 24 and 25.

Details of meetings of the Company’s Directors (including meetings of Board Committees) and each Director’s attendance are set out
on page 30.

The Company Secretary is Catherine Stribley, B.Com/LLB (Hons), FGIA, and she was appointed as Company Secretary in April 2017.
Ms Stribley first joined the Company in 2010 and has held legal positions in both Australia and the US, 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 end markets. Ansell operates in two
main business segments, Industrial and Healthcare.

Board Areas of Focus

This year the Board and its Committees have undertaken key strategic, governance and oversight activities. The key areas of focus
for the Board during FY19 were:

Company
strategy &
performance

Oversight of the
Transformation
Program

Board &
management
succession

Oversight
of capital
management
initiatives

Risk
management,
governance &
compliance

Corporate social
responsibility &
sustainability

External review
of Board
performance

Ansell Limited – Annual Report 2019Operating and Financial Review

The Operating and Financial Review for the Group for the financial year is set out on pages 12 to 21, 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 pages 13 and 14. 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 have
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.

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. Ansell works to evaluate each environment issue within a framework
of optimal management. 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.

Dividends and Share Issue

The final dividend of US25.00 cents per share (unfranked) in respect of the year ended 30 June 2018 was paid to shareholders on
13 September 2018. An interim dividend of US20.75 cents per share (unfranked) in respect of the half-year ended 31 December 2018
was paid to shareholders on 14 March 2019. A final dividend of US26.00 cents per share (unfranked) in respect of the year ended
30 June 2019 is payable on 5 September 2019 to shareholders registered on 19 August 2019. The financial effect of this dividend has
not been brought to account in the financial statements for the year ended 30 June 2019 and will be recognised in subsequent financial
reports. On 23 January 2019 the Company issued 5,000 shares in respect of the conversion of partly paid shares to fully paid shares
under the Executive Share Plan. On 13 September 2018, the Company issued 74,029 shares under its Dividend Reinvestment Plan.
On 14 March 2019, the Company issued 58,845 shares under its Dividend Reinvestment Plan. There are no unissued shares under
option at the date of this Report.

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Ansell Limited – Annual Report 2019

Report by the Directors continued

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 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 Bell1

W P Day

L A Desjardins

M R Nicolin

M T Peterson

W G Reilly

C M Stercken

C Y Yan2

72,113^

27,061^

20,704

30,193^

11,667

265,930^

23,647

49,296

3,216

629

1. Retired from the Board on 18 October 2018.

2. Appointed to the Board on 1 April 2019.

^ 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

CSR & Risk
Committee9

Human Resources
Committee

Governance
Committee

Held

Attended

Held

Attended

Held

Attended

Held

Attended

Held

Attended

G L L Barnes

R J S Bell 1

J A Bevan 2

W P Day 3,4

L Desjardins 5

M T Peterson6

W G Reilly 7

C M Stercken

C Y Yan8

M R Nicolin

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.

1. Retired from the Board on 18 October 2018.

2. In preparation for his transition to Chairman of the Ansell Limited Board after the 2019 Annual General Meeting (AGM), Mr Bevan stepped down as a member

of the Audit & Compliance Committee, effective 18 October 2018.

3. Mr Day stepped down as the Chair of the Audit & Compliance Committee (but remained a member of the Audit & Compliance Committee) and was appointed

the Chair of the CSR & Risk Committee, effective 18 October 2018.

4. Mr Day was appointed as a member of the Governance Committee, effective 9 April 2019.

5. Mrs Desjardins was appointed the Chair of the Audit & Compliance Committee and a member of the CSR & Risk Committee and stepped down as a member

of the Human Resources Committee and the Governance Committee, effective 18 October 2018.

6. Mrs Peterson was appointed as a member of the Audit & Compliance Committee and stepped down as a member of the CSR & Risk Committee, effective

18 October 2018.

7. Mr Reilly was appointed as a member of the Human Resource Committee and the Governance Committee, effective 18 October 2018.

8. Ms Yan was appointed to the Board on 1 April 2019 and is a member of the Audit & Compliance Committee and the Human Resources Committee.

9. In August 2018, the Board resolved to widen the brief of the Risk Committee and renamed it the CSR & Risk Committee.

Ansell Limited – Annual Report 2019

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The Audit & Compliance Committee, CSR & Risk Committee and Human Resources Committee meetings were attended by
all Directors in FY19. In June 2016, the Board resolved to form a sub-committee of the Board to review M&A and divestment
opportunities – including related business transformation. This sub-committee is currently led by Mr John Bevan and comprised
of Mr Glenn Barnes, Mrs Leslie Desjardins and Mrs Christina Stercken. The sub-committee met three times during FY19. All M&A
Sub-Committee meetings are excluded from the number of meetings noted above.

In May 2017, the Board resolved to form a sub-committee of the Board to make recommendations on share buy-backs and
the dividend policy. This sub-committee is currently led by Mr Glenn Barnes and comprised of Mr John Bevan and Mr Peter Day.
The sub-committee met two times during FY19. All Share Buy-back Sub-Committee meetings are excluded from the number
of meetings noted above.

Indemnity

Upon their appointment to the Board, each Director enters into a Deed of Access, Indemnity and Insurance with the 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 2019 fiscal 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.

Corporate Governance

Ansell is committed to effective corporate governance. By putting in place the right governance framework, the Board and
management have set a culture of integrity, transparency and accountability that permeates throughout the Company.

Ansell’s Corporate Governance Statement
A detailed statement outlining Ansell’s principal corporate governance practices in place during the financial year ended 30 June 2019
can be found at ansell.com. This statement has been approved by the Board.

Governance Structure
The Board’s role is to represent the Company’s shareholders, taking into consideration the interests and wants of the broad range
of Ansell’s stakeholders. The Board leads and oversees the management of the Company and is accountable to shareholders for
creating and delivering shareholder value.

The Board is responsible for ensuring that management’s objectives and activities are aligned with the expectations and risks
identified by the Board.

The Board has adopted a formal Board Charter that details the Board’s role, authority, responsibilities, membership and operations.
The Board also has four standing committees that assist it in discharging its responsibilities:

• Audit & Compliance Committee

• CSR & Risk Committee

• Human Resources Committee

• 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 functions to ad hoc committees of Directors on an ‘as needs’ basis. Ansell’s Board and Committee
Charters can be found on the Ansell website at www.ansell.com.

Specific responsibilities for the day-to-day management and administration of the Company are delegated by the Board to the
Managing Director and Chief Executive Officer (CEO), assisted by the Executive Leadership Team (ELT). Ansell’s Delegation of Authority
Policy sets out the powers that are reserved to the Board and those that are delegated to the CEO.

Ansell Limited – Annual Report 2019

Report by the Directors continued

Board Composition and Processes
Ansell is committed to ensuring an appropriate mix of skills, expertise, experience and diversity (including gender diversity) on the
Board and its Committees so that the Board can effectively discharge its corporate governance and oversight responsibilities.

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 the CEO) 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. 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.

An external review of the Board is also completed every three years. In FY19, the Board engaged a third party consultant to review
the Board and its performance and to identify the major areas of opportunity for the Board to sharpen its focus on maximising
long-term sustainable economic profit within the confines of our business purpose and consistent with our various obligation
to all stakeholders. The Board is reviewing the report findings.

As previously announced, the Company has approved a succession plan with respect to the Board 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. As part of this plan, Ms Christine Yan was appointed to the Board as a Non-executive Director in April 2019.
Ms Yan brings considerable skill and experience to the Board, adding to its balance and diversity.

At this year’s Annual General Meeting (AGM), the Chairman, Mr Glenn Barnes, retires after 14 years of service on the Ansell Board.
The Board and management wish to acknowledge and thank Mr Barnes for his significant contributions made to the Company over
his tenure. Deputy Chairman, Mr John Bevan, will become the Chairman of the Company upon Mr Barnes’ retirement.

The Governance Committee will continue to consider the forward skill and experience requirements of the Board within the context
of the succession timetable.

With the commitment of Ansell’s CEO to remain in his role until the end of the 2021 financial year, the Board continues the process
of challenging and assessing the pool of internal CEO contenders to allow the identification of the best internal candidate. In March
2019, the Board announced an important step in this managed leadership transition, with selected internal candidates for the CEO
role being given new opportunities for broader experience, and four new senior leaders with impressive capabilities being added
to the Executive Leadership Team.

The Board sets clear targets for gender representation as part of Ansell’s broader commitment to diversity and inclusion. Ansell has
committed to have women constituting circa 50% of its Board by 2020 and beyond, acknowledging that this may fluctuate from time
to time due to the effect of changes on a small group size. The appointment of Ms Christine Yan brings a 44/56 gender balance to the
Board, which will increase to 50/50 upon Mr. Barnes’ retirement later in the year.

Refer to the Ansell CSR & Sustainability Report for further information on diversity within the Company, which will be released
in November 2019 and made available on www.ansell.com.

Shareholder Engagement
Ansell is committed to positive and meaningful stakeholder engagement. Ansell knows that it builds greater trust with stakeholders
when the Company is transparent and accountable. Ansell’s engagement occurs through a number of channels, including ASX
disclosures, Annual General Meetings, Annual Reports, the Ansell website and social media and interactions with large investor
groups, proxy analysts and regulators.

The Chairman and Deputy Chairman meet proxy advisers and shareholders twice per year to discuss proposed developments
and results.

In October 2017, Ansell hosted its first Capital Markets Day (CMD) in Sydney, Australia. The forum provided attendees with greater
appreciation of Ansell’s business fundamentals, strategic direction and growth plans. Ansell was recognised by the Australian
Investor Relations Association (AIRA) for holding one of the best Investor Days by an Australasian company in 2017. To connect with
key stakeholders in Europe and the Americas, a smaller Ansell team subsequently presented a condensed CMD event in London and
Toronto during November 2017. Ansell will be holding its next CMD in March 2020 in Sydney, London and the US.

Ansell Limited – Annual Report 2019Corporate Responsibility
Ansell is committed to sound corporate governance to underpin its sustainability practices. Its Core Values, Code of Conduct
and related policies constitute the governance framework for its activities, an important part of which are its corporate social
responsibility and sustainability activities.

Ansell is currently reviewing its corporate social responsibility strategy and is considering external reporting standards with
a view to reporting against such standards in the future. A key part of that review relates to our approach to climate change,
building upon the progress already made in FY19 (as detailed on page 23).

Code of Conduct
The Code of Conduct is Ansell’s core policy, serving as a guide to ethical behaviour and business conduct for all employees.
It sets out what it means to work for Ansell and the standards expected of all employees.

Human Rights Statement
As a responsible corporate citizen, Ansell has issued a human rights statement. The company reiterates in this statement that it
operates in accordance with the Universal Declaration of Human Rights (UDHR), the foundational document establishing human
rights for all. Ansell also takes into account the United Nations Guiding Principles on Business and Human Rights and respects
the core conventions of the ILO.

Modern Slavery Legislation
Ansell’s Modern Slavery Statement has been published to demonstrate compliance with the UK Modern Slavery Act 2015. Modern
Slavery laws took effect in Australia during FY19 and Ansell is reviewing its processes to ensure its Modern Slavery reporting also
complies with this legislation.

Risk Management

Ansell recognises that effective risk management and internal controls are an integral part of sound management practice and good
corporate governance. Ansell has established controls and procedures that are designed to safeguard the Group’s assets and the
integrity of its reporting. The Group’s internal controls cover accounting, financial reporting, safety, sustainability, fraud, delegation
of authority and other control points.

Ansell has also established practices for the oversight and management of key business risks. Ansell has adopted a formal Risk
Management Framework in recognition that the identification, evaluation and management of risk are central to achieving the
Company’s corporate purpose of creating long-term shareholder value.

Further details of Ansell’s Risk Management Framework are contained in Ansell’s Corporate Governance Statement.

Risk is inherent in our business and the effective management of risk is vital to the growth and success of the Company. We continuously
seek to identify, measure and monitor the most material risks across our organisation.

The following describes the material risks and opportunities that could affect our business and how we seek to manage them.
These risks are not listed in any order of significance, nor are they all encompassing. Rather, they reflect the most significant risks
identified at a whole-of-entity level through our risk management process.

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Ansell Limited – Annual Report 2019

Report by the Directors continued

Material Risks – Description and Mitigation Actions

Risk

Nature of Risk

Mitigation Actions

Global markets
instability

The Group’s presence in over 55 countries
globally and its growing presence in emerging
markets exposes the Company to geopolitical,
regulatory and other factors beyond the Group’s
control. These include changes in tariff barriers,
trade wars, taxation policies globally and policies
to implement or vary sanctions by one country
on another.

• Whilst our geographic diversification provides overall
protection in itself, we continually monitor the Group’s
exposure to these risks through our local presence.

• Careful monitoring and management of customer

credit risk.

• Using in-house and external local expertise to advise

on matters of country risk.

• Credit risk management in place in emerging markets.

Systems and
technology

As a modern business 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 Company is also exposed to the risk of theft
of confidential data, fraud committed through
cyber means, and has an obligation to adequately
protect the data it holds on employees and all
stakeholders in compliance with increasingly
complex global data protection regulations.

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.

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.

• Manufacturing materials and processes are subject to

continuous review and upgrade to enhance productivity
and maintain our competitive position.

• The Group has implemented new data protection

procedures and obtained external advice to ensure
its compliance with European GPDR and other
global regulations.

• The Group has Business Continuity Plans in place
at all manufacturing sites and major warehouses.

• Property Damage insurance including business

interruption cover is in place, as well as a political
violence insurance cover for all manufacturing sites
(to cover civil unrest and possible acts of terrorism).

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

• Regular risk engineering and safety audits are

conducted at each of the Group’s manufacturing sites
and major warehouses.

• Ongoing safety and fire preparedness reviews are
conducted. Continual maintenance and upgrade
of protection systems is undertaken.

• Duplication of most production lines minimises business

interruption risk.

Ansell Limited – Annual Report 2019
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Risk

Nature of Risk

Mitigation Actions

Transformation
change
management

In FY18, the Group commenced 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.

The Group is exposed to supply and product
quality risks when changes to manufacturing
locations occur.

• The Group has a detailed change management plan
in place, especially for the major transformation in
its manufacturing locations.

• A dedicated project management office was

established reporting to the CEO but with appropriate
Board oversight.

• Detailed communication plans were put in place

to ensure affected staff are clear on new roles and
responsibilities.

• Contingency and risk management plans were

developed.

• Inventory built up for products affected by

manufacturing location changes.

• Ongoing risk assessment meetings and internal and
external (customer) communications distributed.

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

Foreign
exchange risk

Product quality

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 affect on results and
customer relationships.

• 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, led by a quality steering committee that reports
to the CEO.

• Implementation of quality metrics to monitor and
correct defective processes before the product is
released to the market.

Loss of a key
supplier

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

• Utilise dual sourcing strategy wherever feasible.

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

• Crisis management techniques used to mitigate supplier

risk exposures.

• Increased quality audits and inspections of third-party
facilities for compliance with Ansell’s sustainability
standards.

• Regular review of suppliers’ financial risks.

• Ansell’s supplier arrangements are formalised into

supply contracts. Our business partners work with Ansell
to provide metrics on waste management and other
KPIs. Furthermore, Ansell regularly reviews the liquidity
of its suppliers to ensure ongoing solvency.

Ansell Limited – Annual Report 2019

Report by the Directors continued

Risk

Nature of Risk

Mitigation Actions

Changes in
competitive
environment

Ansell is a leading global manufacturer and
branded supplier of hand and body protection,
with the number one market share position in
most of its focus markets and product categories.
However, Ansell’s ability to achieve adequate
profit margins and maintain that profitability
in periods of increasing input cost, such as from
rising raw materials and energy, depends in part
on the actions of competitors and the relative
value of competitor products.

• Ansell’s focus on innovation and leadership in

manufacturing technology aims to maintain Ansell’s
competitive advantage in product technology while also
ensuring products are manufactured cost competitively.

• Diversity of products, markets and geographic position
limits Ansell’s risk to the actions of competitors who
mostly have a more narrow market or product focus.

• Through its channel partnership strategy Ansell aims
to increase its value to distributor partners and build
or maintain a leading market share.

In addition, a changing distribution environment
including e-commerce, as well as customer
concentration, may affect Ansell’s market share
if not monitored and managed.

• New Ansell.com significantly strengthens the company’s
ability to support customer e-commerce platforms with
efficient exchange of product information and enhanced
e-marketing capability.

• Acquisition of Ringers Gloves brings enhanced active
e-commerce capability which will provide important
learning and potential to extend across Ansell’s
product ranges.

• Commercial initiatives with e-commerce suppliers

underway.

• Developing a broader distributor network and

strengthening existing relationships and improving
margins; introduced the use of alternative route to
market models, focusing on Tier 1 and Tier 2
distributors.

• Working with large distributors by adopting

standardised pricing and terms.

Corporate Social
Responsibility
(CSR)

The impact of climate change can cause disruption
at manufacturing sites, warehouses and suppliers
and impact our ability to service customers needs.

• Cross-functional Management CSR & Sustainability

Council put in place for governance, led by the General
Counsel with updates to the CEO and full Executive team.

Poor environmental and social practices resulting
from undesirable working conditions, or a failure
to manage natural resource inputs or waste
outputs, in our operations or supply chains, may
give rise to reputational, legal and/or market risks.

The physical impacts of climate change can
compound existing environmental risks (including
natural disasters and extreme weather events)
to operations and supply chains and markets,
and impact on our ability to obtain key inputs
or to service customer needs. This may include
disruption to upstream suppliers, manufacturing
sites, and downstream warehousing and
distribution. The economic transition risks
associated with climate change may also impact
on cost inputs or customer demand preferences.

• Enforcement of supplier self-assessments through Sedex

for transparency and baseline on Human Rights,
Environment and Governance.

• Continued strong focus on Ansell’s Code of Conduct,

Values and Leadership Competencies.

• Qualitative and quantitative sustainability goals

established.

• Diversity initiatives and inclusion policies underway.

• Increased emphasis on CSR/Sustainability at the Board

level within the remit of the CSR & Risk Committee.

• Currently reviewing its corporate social responsibility

strategy and is considering external reporting standards
with a view to reporting against such standards in the
future. A key part of that review relates to our approach
to climate change, building upon the progress already
made in FY19 (as detailed on page 23).

Ansell Limited – Annual Report 2019

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Report 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

$101,123

Other audit and assurance services

$8,134

The Directors are satisfied that the provision of such non-audit services is compatible with the general standards of independence
for auditors, and does not compromise the auditor independence requirements of the Corporations Act 2001 in view of both the
amount and the nature of the services provided. 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 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 12th day of August 2019.

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Remuneration Report

Contents

Chairman’s Letter

1. At a Glance

2. Introduction and KMP Composition

3. Remuneration Policy

Philosophy and Strategy

Remuneration Framework Components

4. How the Policy was Operated for FY19 –

What Did the Executives Take Home in FY19?

Remuneration Framework Details

5. Statutory Information

Executive Service Agreements

Securities Trading Policy

Shareholder Alignment

Current Shareholding

Equity Instruments

Executive Statutory Remuneration

6. Non-executive Directors

Policy and Approach

Non-executive Directors’ Statutory Remuneration

7. Group Performance and Remuneration Outcomes

8. Governance

Role of the Human Resources Committee

9. Glossary

Ansell Limited – Annual Report 2019Report by the DirectorsFinancial ReportShareholders and Shareholder Information
Remuneration Report (audited) continued

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 2019.

Remuneration Summary
With results at the top end of guidance,
management are to be commended
and the remuneration outcomes
reflect this.

Except for the Performance Share Rights
described below, no changes have been
made to the remuneration framework
for FY19. After a review, we have decided
not to make any significant changes to
the FY20 remuneration framework.

Performance Share Rights allocated
as part of future Long Term Incentive
(LTI) (i.e. for FY20 LTI Plan onwards)
no longer have a share price discount
when calculating the Performance Share
Rights granted. The previous practice
of discounting the share price for the
anticipated future dividend streams
has been discontinued. Except for this
change, the remuneration policy was
operated in line with the previous year.

Company Performance
Ansell achieved strong EBIT and Profit
Attributable results and solid operating
cash flows. Sales were below target
levels and the inventory turnover metric
was not achieved.

For a year of great internal change and
external challenge, the Board considered
these results to be a good outcome. Against
a backdrop of slower global economic
conditions and higher raw material pricing
in the first half, management constrained
SG&A spending, captured Transformation
Program benefits and implemented price
increases to achieve a strong earnings result
for the year.

Remuneration Outcomes
The Short Term Incentive (STI) award
for FY19 varied between 38% to 51% of
maximum reflecting this generally good
result. 70% of the award is driven by sales
growth and EBIT targets, with working
capital, Profit Attributable and personal
objectives driving the remainder. The FY19

STI outcomes benefited from strong EBIT,
operating cash flow and Profit Attributable
outcomes, while below target sales and
inventory turn outcomes drove overall
achievement down. Inventory levels were
elevated, partly as a safety measure in the
lead-up to the restructuring of the global
manufacturing footprint as part of the
Transformation Program, and a combination
of this and slowing global growth resulted
in the inventory turn metric being missed.
Despite this, operating cash flows remained
strong, while interest savings and tax
planning initiatives helped deliver a strong
Profit Attributable outcome.

The LTI performance against the FY17–19
plan reflected the strong sustained
performance over that period. EPS was well
above target, organic growth below target
and ROCE, impacted by inventory, was also
below target (but above the ROCE gateway).
All targets were normalised to reflect the
FY18 divestiture of the Sexual Wellness
business as per the FY17 and FY18
Remuneration Reports. Overall, the outcome
of 48% of maximum was consistent with the
STI overall achievement described above.

The Changing Face of Ansell
The Transformation Program that
commenced during FY18 was largely
completed during FY19, with benefits being
realised during the year. The multi-year
program aimed to reduce the overhead
structure of the post-Sexual Wellness
business, capture benefits from an improved
manufacturing footprint and progress the
CEO succession. In order not to penalise
management for effecting these changes
which incur costs before the benefits flow
though, costs of the Transformation Program
were excluded from the FY19 STI and LTI
earnings outcomes. Furthermore, as with
past practice, relevant Transformation
Program costs are being adjusted back
as a cost for LTI testing purposes over
the ensuing three years.

Your Board continued to make progress
on the CEO succession process that was
announced during FY18. Thus, several
changes were made at the Executive Key
Management Personnel (KMP) and other
senior levels during the second half of the
year. The costs of these changes have been
included in the Transformation Program.
It is not proposed to charge these back
as an adjustment to management
incentives as this program is an initiative
of the Board of Directors.

Exercise of Board Discretion in
Arriving at Incentive Outcomes
As indicated above, the Board allowed
the Transformation Program costs to be
adjusted when calculating the STI and LTI
award performance. The Board also
exercised discretion in the treatment of
FY19 acquisitions, including with respect to
both transaction costs and their impact on
ROCE. In future years the Board has adopted
an approach where it will phase-in the
impact of acquisitions on ROCE over a
three-year period on a pro-rata basis.

Furthermore, we previously advised that
the FY17 and FY18 plans were normalised to
factor in the Sexual Wellness divestiture and
this year’s testing continued that principle.

Results after these exclusions were then
compared against the adjusted performance
targets for ongoing incentive plans.

The effects of these adjustments are shown
in Section 4 of the Remuneration Report.

Ansell is Global
Finally, Ansell continues to be a proudly
Australian organisation that is highly
global in its structure and operations.
Its executive remuneration framework
takes this into account as we continue to
attract, motivate and retain our talented
global workforce.

With Ansell’s Executive KMP all based
outside of Australia, our remuneration
practices need to remain globally
competitive, regionally appropriate and
flexible. This is particularly relevant in
the current period of great change that
we have experienced.

In keeping with this global approach, the
Board has continued to apply its constant
currency methodology when determining
incentive outcomes.

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 information in the Report.

On behalf of the Directors, we look forward
to welcoming you to the 2019 Annual
General Meeting.

Marissa Peterson
Chair of the Human Resources Committee
Ansell Limited

Ansell Limited – Annual Report 2019Section 1 – At a Glance

FY19 Performance
This section is intended to provide a high level visual summary of the remuneration outcomes for FY19 for Realised Pay4.
Further detail is provided on each of these in the ensuing sections of the Remuneration Report.

Highlights

• Transformation Program progressing well with savings in line

with the target or better.

• Organic growth in sales revenue was below target levels,

with several key markets affected by global trading conditions.

• EBIT1 of $187.5m exceeded target levels due to price increases,
transformation benefits and tight cost control offsetting the
impacts of slower sales and higher H1 raw material pricing.

• ROCE5 of 13.5% exceeded the 13.2% gateway and was impacted

by higher inventory holdings.

• Inventory turns, which some Executive Key Management

Personnel (KMP) are incentivised by, were below the minimum
threshold targets and no incentives were paid for this metric.

• Operating cash flow3 was again strong despite low inventory

turnover.

STI Performance (Realised)

Maximum

100%

75%

58%

49%

Target

50%

36%

Minimum

Sales

EBIT

Inventory
Turnover

Operating
Cash Flow

Profit
Attributable

Target:

$1,520.2m $184.6m

2.9 times

$189.8m $141.2m

CEO Realised Pay

3,000,000

2,000,000

$
S
U

1,000,000

48%

51%

Salary

Retirement and
Other Benefits

STI
Outcome

LTI
Outcome

Sales

EBIT1

Profit Attributable6

EPS2

$1,499.0

$187.5

$148.3

105.3¢

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Inventory turnover per annum (times)

2.6

Dividends per share

ROCE5

46.75¢

13.5%

Operating cash flow pre tax3

$189.6

LTI Performance
(Realised)

100%

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60%

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20%

48%

FY19
Realised LTI

1. EBIT for remuneration outcomes is reported EBIT excluding

the impact of foreign exchange gains and losses incurred during
the year and also Transformation Program costs.

2. EPS for remuneration outcomes purposes is Earning Per Share

excluding Transformation Program costs and other adjustments
as described in Section 4.

3. Operating cash flow pre tax is defined as net receipts from

operations, less payments for property, plant and equipment
and intangible assets, and interest and financing costs paid
net of interest received as reported in the Group’s Consolidated
Statement of Cash Flow, adjusted by excluding cash
Transformation Program costs and discontinued operations.

4. Realised pay is a non-IFRS measure and is defined in Section 9

– Glossary.

5. ROCE is defined in Section 9 – Glossary.

6. Profit Attributable for remuneration outcomes is reported

Profit Attributable excluding the impact of foreign exchange
and also Transformation Program costs incurred during the year.

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Remuneration Report (audited) continued

Shareholding requirements are higher than market norm and align executive and shareholder interests.

CEO and Other Executives Shareholding Requirements (expressed as a percentage of base pay)

447%

Actual

300%

Required

M Nicolin

N Salmon

169%

Actual

100%

Required

Actual

Z Javeed

100%

Required

42%

Actual

D Nazareth

100%

Required

100

200

300

400

500

The above graphs only include those Other Executives who will remain KMPs in FY20. As a recently appointed executive, Mr Javeed is expected to comply
with Ansell’s Mandatory Shareholding Policy over time.

Section 2 – Introduction and KMP Composition

Introduction
The Directors of Ansell Limited (Ansell) and its subsidiaries (the ‘Group’) present the Remuneration Report. This Report has been
prepared in accordance with Section 300A of the Corporations Act 2001 for the financial year ending 30 June 2019. 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.

KMPs Comprising the Board of Directors and Executives
The composition of the Ansell KMP changed during FY19. The Board farewelled Non-Executive Director Mr Ronald Bell, who retired
at the October 2018 Annual General Meeting. Subsequently, Ms Christine Yingli Yan joined the Board on 1 April 2019 as an Independent
Non-Executive Director. Furthermore, several Executive KMP changes occurred pursuant to the CEO succession process and are
summarised below:

• Neil Salmon, Chief Financial Officer, was appointed President of the Industrial GBU effective 30 April. Mr Salmon joined Ansell

in 2013 and has effectively led the Finance, Planning and IT teams along with project management functions.

• Darryl Nazareth, Senior Vice President of Global Operations and head of R&D for the Industrial GBU, was appointed President of the
Healthcare GBU and became a KMP from 1 April 2019. Mr Nazareth joined Ansell in 2011 as head of Industrial R&D and was then
responsible for Global Operations in 2015.

• Zubair Javeed joined Ansell as the new Chief Financial Officer effective 29 April, and will be based in Brussels. Mr Javeed,

a UK citizen, has had a successful career with the NHS, Arthur Andersen, CR Bard and Creganna Medical and was most recently
CFO for Ideal Standard International.

The former leaders of the Industrial and Healthcare GBUs, Steve Genzer and Joe Kubicek, have left Ansell to explore opportunities
elsewhere after a transition period to transfer their responsibilities to Neil Salmon and Darryl Nazareth respectively. The remuneration
of Ansell’s KMP for FY19 is detailed on the following pages.

Ansell Limited – Annual Report 2019The following table details Ansell’s KMP during FY19:

Non-Executive Directors

Location of Board Member

Role

Australia

Chairman, Independent Non-Executive Director

Deputy Chairman, Independent Non-Executive Director

United Kingdom

Independent Non-Executive Director

Glenn L L Barnes

John A Bevan

Ronald J S Bell1

W Peter Day

Leslie A Desjardins

Marissa T Peterson

William G Reilly

Australia

United States

Christina M Stercken

Germany

Christine Y Yan2

United States

Independent Non-Executive Director

Non-Independent Non-Executive Director

Independent Non-Executive Director

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Executive Director

Location of Executive

Role

Magnus R Nicolin

Belgium

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

Other Executives

Location of Other Executives

Role

Neil Salmon3

Steve Genzer4

Joe Kubicek4

Zubair Javeed5

Belgium

United States

Belgium

President of the Industrial GBU (IGBU)

President of the Healthcare GBU (HGBU)

Chief Financial Officer (CFO) (Finance, IT, Planning & Projects)

Darryl Nazareth6

United States

President of the Healthcare GBU (HGBU)

1. Retired on 18 October 2018.

2. Appointed as Non-executive Director on 1 April 2019.

3. Mr Salmon was previously the Chief Financial Officer until his appointment to his new role on 30 April 2019.

4. Ceased to be a KMP on 30 April 2019.

5. Became a KMP on 29 April 2019.

6. Mr Nazareth became a KMP on 1 April 2019. Mr Nazareth was previously the Senior Vice President of Global Operations until his appointment to his new role

as President of the Healthcare GBU.

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Remuneration Report (audited) continued

Section 3 – Remuneration Policy

Philosophy and Strategy
The Board’s remuneration philosophy links the achievement of our strategic objectives and corporate plans with appropriate and
measured rewards for the Company’s Executives.

Our governing principles are summarised below:

Ensure competitiveness in base
salary and total package

Support a performance
culture

Reflect the markets and
locations we recruit from

Balance of short and
long-term performance

Link rewards to business
results and strategy

Even though Ansell is listed on the Australian Stock Exchange, it has offices in approximately 55 worldwide locations, with the core
Executive Leadership Team (ELT) based in Belgium, the US and Malaysia.

US
Revenue 46%
ELT 8

North
America

Latin America
and Caribbean

LAC
Revenue 7%
ELT 0

Europe

Asia

EMEA
Revenue 35%
ELT 8

Middle
East

Africa

Asia
Revenue 8%
ELT 1

Australasia

Australia
Revenue 4%
ELT 1

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Remuneration Framework Components
Our Executive remuneration framework, which was used for FY19, consists of the following components:

Component

Operation and
Performance Measure

Strategic Objective/
Performance Link

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

Pay mix3
FAR: 30% – 39%1,2

Takes into account:

• responsibilities, qualifications,

experience; and

• performance, location and market

rate for a comparable role.

• Attract, engage and retain

talented Executives.

• Consider, but not constrained by,

relevant benchmarks.

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

STI
Cash plus deferral into equity for
part of the award above the target.

Pay mix3
STI: 17% – 23%1,2

LTI
Rights to receive fully paid ordinary
shares subject to performance.

Pay mix3
LTI: 43% – 47%1,2

Total Remuneration

• Combination of financial and

objectives.

• Aligned with the Group’s short-term

non-financial performance metrics.

• Performance weighted more

towards financial KPIs (i.e. not less
than 80% of the award).

• Three-year performance and

vesting period.

• Combination of key financial and

shareholder value measures.

• Clear line of sight for participants.

• Deferral of part of the award

encourages longer-term
sustainable performance.

• Reflects key long-term priorities

of the business at the time.

• Relevant indicator of shareholder

value creation.

• Suitable line of sight for

participants to encourage and
motivate executive performance.

• Attract, retain and motivate highly capable Executives.

• Reinforce short and long-term objectives.

• Alignment with shareholders.

• Deliver sustainable growth.

1. Excludes Darryl Nazareth and Zubair Javeed, who became KMP during FY19. If they are included, the pay mix changes to FAR: 30% to 100%, STI: 0% to 23%,

and LTI: 0% to 47%.

2. Excludes payments from cessation of employment from the total remuneration in determining the pay mix.

3. Pay mix is calculated based on the remuneration information as per Section 4 – Realised Pay Summary.

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Remuneration Report (audited) continued

Section 4 – How the Policy Operated for FY19 – What Did the Executives Take Home in FY19?

This section uses non-IFRS financial information to detail realised pay earned by the CEO and Other Executives during FY19, together
with prior year comparatives. This is a voluntary disclosure and is supplemental information to the statutory remuneration disclosure
contained in Section 5 of this Remuneration Report. Realised pay includes base salary, retirement and other benefits paid/payable in
relation to FY19. It also includes the full value of incentive payments earned in relation to the FY19 performance period. 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.

Ansell’s reporting currency is US$ and the CEO and several members of the KMP are paid in US$. For some Other Executives, the
reported numbers in the statutory and realised pay tables are subject to translation differences from year to year.

Realised Pay Summary

US$ Name

Year

Executive Director

Base
Salary1

Retire-
ment
Benefits2

Termi-
nation
Benefits

Other3

Cash

Restricted
Shares

Cash5

Equity7

2019
Total
Earnings

STI4

LTI6

Magnus R Nicolin

2019 1,066,000

376,781

2018 1,066,000

508,088

Other Executives

Neil Salmon8

Steve Genzer9

Joe Kubicek10

Zubair Javeed11

2019

2018

2019

2018

2019

2018

2019

2018

581,401

62,607

585,450

54,460

427,174

44,992

498,349

424,064

48,383

–

430,100

37,824

493,223

426,842

42,501

102,621

9,031

–

Darryl Nazareth12

2019

103,686

9,285

2018

–

150,478 1,199,250

23,203

– 2,490,832 5,306,544

155,065

910,830

–

– 1,791,104 4,431,087

30,019

438,199

12,860

–

997,796 2,122,882

29,609

346,114

–

210,971

157,296

212,416

152,782

234,194

–

14,158

42,853

–

195,888

312,710 1,524,231

–

538,304

1,719,790

172,398

183,473

985,614

–

507,508 1,681,071

144,160

153,427

919,712

–

345,846

–

36,343

206,325

–

1. Base salary includes the salary earned by the individual in FY19. The increases in base salary for Executives are based on performance and external

benchmarking of similar positions in the jurisdictions in which the Executives are based. Thus, the CEO did not receive any pay increase in FY19, while the
Other Executives’ pay increases ranged from 0% to 2%. Mr Salmon is remunerated in Euros and the US$ reduction above reflects translation impacts.

2. Retirement benefits include all the retirement benefits earned by the individual in FY19. Mr Nicolin’s retirement benefits are based on his base salary plus

prior year STI achievement and will vary from year to year.

3. Other includes the cost to the Company of cash benefits such as motor vehicle, expatriation and relocation expenses, insurance, expat tax equalisation

payments and other amounts. Mr Javeed’s other benefits include a cash sign-on bonus.

4. 2019 STI represents amounts payable under the 2019 STI Plan.

5. FY18 cash awards under the LTI are a legacy arrangement for Executives other than the CEO and have not been available since the F17 LTI grant.

6. LTI relates to the FY17 grant, which was approved by the HR Committee on 7 August 2019. The FY17 award was determined to be 48% of the maximum award.

The equity figure represents the US$ value of the number of PSRs that have vested multiplied by the closing share price of Ansell Limited on the ASX
on 7 August 2019 (A$25.88). This was the date on which the HRC approved the vesting of the shares. The translation to US$ used an foreign exchange (FX)
rate of A$1:US$0.6755.

8. Neil Salmon was appointed as President of the Industrial GBU on 28 April 2019.

9. Steve Genzer ceased to be a KMP on 30 April 2019. The remuneration information disclosed in this report is for 12 months ended 30 June 2019.
Termination payments include entitlements payable pursuant to Mr Genzer’s employment agreement in addition to unused leave entitlements
at 30 June 2019.

10. Joe Kubicek ceased to be a KMP on 30 April 2019. The remuneration information disclosed in this report is for 12 months ended 30 June 2019.

Termination payments include entitlements payable pursuant to Mr Kubicek’s employment agreement in addition to unused leave entitlements
at 30 June 2019.

11. Zubair Javeed was appointed as CFO and became a KMP on 29 April 2019.

12. Darryl Nazareth was appointed as President of the Healthcare GBU and became a KMP from 1 April 2019. Mr Nazareth’s remuneration information disclosed

in this report only relates to the period after 1 April 2019.

For further transparency, Mr Nazareth’s base salary, STI and LTI remuneration information (on a Realised Pay basis) for the full 12 months ended 30 June 2018
and 2019 are disclosed below.

Base Salary: $403,634 for FY19 (FY18: $364,250), STI Cash: $164,136 for FY19 (FY18: $106,741), LTI Cash: nil for FY19 (FY18: $89,040) and LTI Equity: $436,114
for FY19 (FY18: $67,422).

Ansell Limited – Annual Report 2019

6,000,000

5,000,000

4,000,000

$
S
U

3,000,000

2,000,000

1,000,000

Breakdown of CEO Realised Pay

2,490,832

5,306,544

Metrics

STI
Outcome

Sales

EBIT

Weight
%

Achieve-
ments
%

35%

36%

58%

Payouts
$

304,357

486,918

1,222,453

1,066,000

150,478

376,781

Base
Salary

Other
Benefits

Retirement
Benefits

STI
Outcome

LTI
Outcome

Total

Operating
Cash Flow

Profit
Attributable

Personal
Objectives

Overall

Organic
sales
growth

EPS

ROCE

Overall

10%

49%

118,663

10%

75%

180,598

10%

100%

55%

131,917

51% 1,222,453

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1/3rd

100%

36%

622,708

84% 1,452,985

23%

415,139

48% 2,490,832

LTI
Outcome

Remuneration Framework Details

Element of pay

How the policy operated for FY19

Base salary

Normally base salaries are reviewed annually.

No material changes were made to the policy in FY19.

For FY19 the HRC considered several 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 with caution.

The base salaries for the Executive KMPs, as a result of the increases, effective 1 October 2018 were:

Executive

Magnus R Nicolin

Neil Salmon

Steve Genzer

Joe Kubicek

Base Salary

$1,066,000

€512,193

$427,174

$430,100

Increase

–

Magnus Nicolin and Neil Salmon are based in Belgium, Steve Genzer and Joe Kubicek are based in
the US. The modest increases reflected the view that with the exception of Mr Salmon, the base salaries
were already at the appropriate market rates. Mr Javeed and Mr Nazareth were not KMP during the pay
review process.

As indicated in FY18 – no process changes were enacted during FY19.

Retirement benefits

Includes contributions to US benefit or non-qualified pension plans and Belgian pension fund
(as applicable).

Magnus Nicolin’s retirement benefit is based on his base salary plus prior year STI achievement,
which varies year to year.

As indicated in FY18 – no plan changes were enacted during FY19.

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Remuneration Report (audited) continued

Other benefits

May vary between Executives, depending on their local market and their particular circumstances.

May include benefits such as motor vehicle, Executive expatriation/repatriation and relocation
allowances, Executive insurance, expat tax equalisation payments and other amounts.

STI – awards granted
during the year

Reflect the Company’s overall policy on international mobility.

As indicated in FY18 – no plan changes were enacted during FY19.

Executives may participate.

Annual award payable part in cash and part in restricted shares. The deferral of equity only relates to
those awards earned for above mid-point performance. The restriction will see the shares held for a
minimum period of two years from when the shares are granted.

Base
Salary

Maximum
Incentive
(% of Salary)

Business
Performance
Metrics
(90%)

Individual
Performance
(10%)

STI
Outcome

Opportunity

Executive

CEO

CFO1

Other Executives

Minimum STI (% of base salary)2 Maximum STI (% of base salary)

225%

150%

130%

1. Applicable to Neil Salmon in his previous role as CFO.

2. STI bonus opportunity for Ansell executives begins at 0% achievement, which is more challenging in comparison

to most peer companies where achieving the minimum performance condition earns a threshold incentive outcome.

Methodology

Ansell sales and EBIT target setting process methodically factors the following aspects:

(a) Prior year fiscal performance as a baseline subject to limited adjustments (e.g. normalisation

of material items and projected FX rates).

(b) Targets are established for sales and EBIT growth.

• Sales targets at 1.5X GDP growth in markets weighted for Ansell Industrial and Healthcare.

• EBIT growth assumes costs increase below the rate of sales growth to leverage a higher EBIT

growth target.

(c) Incremental growth returns on committed significant investments are also added to targeted sales
and EBIT growth. For example, the Targets were increased to require the delivery of expected
benefits from the transformation program.

(d) The Board then applies discretion in reviewing the outcome of the above methodology against
their performance expectations of the business and may chose to increase the performance
conditions accordingly.

Performance measures

Requires the achievement of pre-set performance targets directly linked to Ansell’s business strategy:

Executive

CEO

CFO1

Other Executives

Sales

35%

EBIT

35%

Performance Measures

Inventory
Turns

Operating
Cash Flow After
Capex Pre-tax

Profit
Attributable

Individual
Objectives

–

20%

10%

–

10%

–

10%

Total

100%

1. Applicable to Neil Salmon in his previous role as CFO.

Ansell Limited – Annual Report 2019STI outcomes FY19

STI achievement against the five metrics (excluding individual objectives) used in different KMP STI
plans can be summarised as follows:

• Organic constant currency sales growth was below target levels due to a slowdown in the economic

activity of key verticals in several geographies.

• EBIT exceeded target due to a combination of Transformation Program benefits, SG&A savings
and price increase impacts, which offset the effects of below-target sales and raw material cost
increases. Consistent with past practice, Transformation Program costs are excluded from the target
and actual calculations.

• Significant adverse FX impacts were encountered during FY19. As with past practice, these were

adjusted for as part of the Group’s constant currency target-setting process.

• Inventory turns did not meet expectations and no payouts were achieved. While this was partly
due to safety stock levels needed for our Transformation Program, the Board and management
both agreed that this performance ought to be higher.

• A further year of strong operating cash flow delivery with more upside potential as stock turns

return to more acceptable levels.

• Profit attributable achieved above target outcomes on EBIT growth and the efficiencies gained
in the management of net interest expense as well as continued diligence in the management
of our taxation affairs.

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STI Performance (Realised)

Maximum

100%

75%

58%

49%

Target

50%

36%

Minimum

Sales

EBIT

Inventory
Turnover

Operating
Cash Flow

Profit
Attributable

Target:

$1,520.2m $184.6m

2.9 times

$189.8m $141.2m

Executive

Performance Against Individual Objectives

Magnus Nicolin

Magnus continued to deliver the business strategy and priorities through a
period of major change. He contributed to increased focus on ROCE and strong
cash flow position across the business. Key highlights include the successful
implementation of the surgical glove business strategy and effective senior
succession planning execution.

Zubair Javeed

Pursuant to the STI Plan rules, Zubair’s participation commences from FY20 due
to his start date, which was after 1 April 2019.

Neil Salmon

As CFO, Neil led the execution of the F19 operating plan, supported the
comprehensive and successful Transformation Program and recently moved into
a new role as President of the Industrial GBU where his start has been exemplary.

Darryl Nazareth

Darryl led the Manufacturing operations function and the Industrial R&D functions
with success. Darryl, in particular, deserves credit for the successful execution of the
Transformation Program and continued success from Industrial new product sales.

Steve Genzer

Joe Kubicek

Steve led the Industrial GBU and played a critical role in executing on the broad
Transformation Program, which delivered ahead of plan and increased margins
by more than 190 basis points.

Joe drove the Healthcare GBU as President and delivered a strong result with topline
growth of 4%, solid management of the price increases and operational efficiency
programs to sustain EBIT margins.

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Remuneration Report (audited) continued

Outcomes continued

For the FY19 STI, the Board approved the following payments to the Executives:

US$ Name

Financial

Individual

Executive Director

STI1

Total STI
Payable

Restricted
Shares

% Award
Achieved2

%
Forfeited2

Cash

Magnus R Nicolin

1,090,536

131,917

1,222,453 1,199,250

23,203

51%

49%

Other Executives

Neil Salmon

398,475

52,584

451,059

438,199

12,860

Steve Genzer4

183,205

27,766

210,971

Joe Kubicek4

184,459

27,957

212,416

Darryl Nazareth3

16,475

26,378

42,853

–

51%

38%

39%

49%

62%

61%

1. Any realised STI above the mid-point will be deferred in the form of restricted shares. For FY19, restricted shares were

granted for eligible KMP on 7 August 2019 and are subject to a two year sale restriction. As indicated in FY18, no changes
were made to the FY19 STI Plan.

2. All outcomes are expressed as a percentage of maximum.

3. Darryl Nazareth STI award relates to the pro rated portion of the STI award for the three months after becoming a KMP.

The value of Mr Nazareth’s full year STI award is $164,136.

4. Steve Genzer and Joe Kubicek STI awards relate to 12 months ended 30 June 2019.

LTI awards vesting in FY19

Exercise of Board discretion in arriving at incentive outcomes

The FY19 results included 28.9 cents (EPS) of the multi-year Transformation Program costs that
were announced in July 2017. Of these, 5.8 cents related to cost reduction initiatives required following
the divestiture of the Sexual Wellness business (including the elimination of associated overhead
costs) as well as CEO succession costs. As these arose from Board actions outside of management
responsibility, these costs were excluded from management incentive outcomes. As with past practice,
the remainder (23.1 cents) will be adjusted back as a cost for future LTI award testing over the ensuing
three years on a straight-line basis. This is done to more closely align the costs and benefits of the
relevant programs for incentive purposes. The Board expects to exceed its announcement that $30m
of annualised pre-tax savings would be realised by FY20 under the Transformation Program.

FY17–19 Plan performance

The FY17–19 and FY18–20 LTI Plans were on foot at the time of the Sexual Wellness divestiture that
completed during FY18. The performance conditions of these plans were normalised for the Sexual
Wellness divestiture by removing one-off impacts and normalising the future growth targets. This was
explained in detail in the FY17 Remuneration Report.

The performance conditions comprise three components with each component worth one-third
of the total LTI award for the FY17–19 LTI Plan. These, along with a summary of their outcomes against
maximum targets are show below:

• EPS growth (subject to a ROCE gateway)

Achieved 84% of Maximum

• Organic revenue growth

Achieved 36% of Maximum

• ROCE target

Achieved 23% of Maximum

The FY17–19 achievement was therefore 48% of Maximum on a combined basis. The breakdowns
are explained further in the sections below.

Ansell Limited – Annual Report 2019LTI awards vesting in FY19
continued

EPS growth – FY17–19 Plan

The EPS growth of the continuing business was measured against the ‘to-go’ EPS growth targets, which
were adjusted to require equivalent performance to the original LTI targets for the period post divestment
of Sexual Wellness. The result below shows that the result achieved was towards the top end of the
range – 84% of the maximum.

Original EPS growth CAGR

Adjusted ‘to-go’ targets (cents)*

6.7

17.6

10%

28.4

Minimum

Target Maximum

Actual
Result

n/a

24.8

Vesting
% of
Maximum

n/a

84%

Adjustment takes account of achieved growth to end FY18 for total portfolio and projected growth in FY19 for Sexual
Wellness to derive required ‘to-go’ growth for continuing operations in FY19.

FY19 – EPS for the purposes of LTI award

In keeping with past practice, the one-time Transformation Program costs incurred during FY19 have been
excluded from the calculation of the LTI award, while an amortised portion of past expenditure has
been added back in.

The Board assessed the FY19 adjusted EPS relevant for incentive purposes as 105.3 US cents, with a
reconciliation to statutory EPS shown below along with the estimated amortisation adjustment impacts
in future periods:

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US cents

Statutory EPS

One-off costs1 arising from Board actions outside
of management responsibility

FY19

82.6

5.8

Future Period Adjustments
– For Illustration Only

FY20

FY21

FY22

Transformation Program costs FY19 with future benefits

23.1

(7.7)

Statutory EPS excluding Transformation

FX (gains), share buy-back benefit adjustment2
and Ringers acquisition costs

Amortisation of previously adjusted FY18
Transformation Program expenses

Adjusted EPS for LTI award

111.5

(5.0)

(1.2)

105.3

(1.2)

(1.1)

1. One-off costs include CEO succession (2.6 US cents EPS impact).

2. The Board excluded a portion of the favourable EPS impact of the FY19 share buyback. This was on the basis that

a portion of the cash used to undertake the buyback was derived from the SW divestiture.

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Remuneration Report (audited) continued

LTI performance
measures

FY19 – Calculating EPS growth

Having determined the appropriate adjusted EPS for incentive purposes (105.3 cents), constant currency
adjustments were then applied to FY18 to determine the year over year EPS growth. This was then added
to the EPS growth already achieved to FY18 to determine the final EPS achievement against the plan’s
revised targets.

FY17 EPS including adjustments for LTI awards

FY18 EPS including adjustments for LTI awards

FY18 LTI growth achieved – per FY18 Remuneration Report

(a)

FY19 EPS performance

FY18 adjusted for constant currency

FY19 EPS including adjustments for LTI awards (as per the previous page)

FY19 LTI growth

Net EPS growth for LTI purposes against revised ‘to-go’ targets

(b)

(a) + (b)

FY19 – Organic revenue growth and ROCE

The organic revenue growth and ROCE calculations are summarised below.

86.2

113.7

27.5

108.0

105.3

(2.7)

24.8

Minimum

Target

Maximum

Actual

Vesting % of
Maximum

Organic revenue growth

ROCE

6.1%

13.2%

11.0%

14.0%

15.8%

14.7%

9.6%

13.5%

36%

23%

The organic revenue growth result was below the target growth rate and was impacted by slower
growth rates in this fiscal year, driven by challenging economic conditions in several key geographies.

The ROCE target was introduced to ensure that management were incentivised to optimise the
returns on capital employed and was set as both a gateway for the EPS target and a performance
condition in its own right. The ROCE outcome of 13.5% was below target and was adversely impacted
by higher inventory holdings. This was partly due to safety stock that management held as the
manufacturing footprint was reduced in Korea and Mexico as part of the Transformation Program.
No adjustment was made for the higher inventory, but the Board did decide to adjust out the funding
impact of the $76.3m acquisitions so as not to inadvertently penalise management for acquisition
initiatives. Acquisition funding will be gradually phased in over three years so as not to penalise
management for targeting growth opportunities in this way.

LTI outcomes for KMP

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

Executive Director

Magnus R Nicolin

Other Executives

Neil Salmon

Steve Genzer2

Joe Kubicek2

Darryl Nazareth1

Date Award
Granted

Maximum
Value of PSRs
Granted (US$)

Number of
PSRs Vested
(Shares)

Number
of PSRs
Forfeited
(Shares)

11/08/2016

3,837,600

142,480

154,354

11/08/2016

1,537,169

11/08/2016

829,464

782,000

56,000

57,076

30,792

29,030

2,079

61,832

33,358

31,450

2,252

1. Darryl Nazareth LTI award relates to the pro rated portion of the LTI award for the three months after becoming a KMP.

2. Steve Genzer and Joe Kubicek ceased to be KMP on 30 April 2019. The remuneration information disclosed in this report

is for 12 months ended 30 June 2019.

Ansell Limited – Annual Report 2019

LTI design

FY19–21 Plan – There were no changes in FY19. It is worth noting, however, that future awards (i.e. from
FY20–22 Plan) will no longer attract any discount for foregone dividends and so will be directly set by
the prevailing share price at the time of the issue.

LTI – awards granted
during the year

Annual awards granted will vest after three years subject to the achievement of the performance
conditions and continued service.

LTI awards are entirely in the form of Performance Share Rights (PSRs). Executives are eligible
to participate in the LTI Plan.

How awards will vest:

Base
Salary

Maximum
Award
(% of Salary)

Share Price
at Grant

Number
of Awards
Granted

How awards will vest:

Number
of Awards
Granted

Business
Performance
Metrics

Share Price
on Vesting

Value of
Awards on
Vesting

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Opportunity

For FY19–21 Plan the LTI awards were as follows:

Executive

CEO

CFO1

Other Executives

Minimum LTI
(% of Base
Salary)2

Maximum LTI
(% of Base
Salary)

360%

300%

200%

1. Applicable to Neil Salmon in his previous role as CFO.

2. LTI bonus opportunity for Ansell executives begins at 0% achievement, which is more challenging in comparison

to most peer companies where achieving the minimum performance condition earns a threshold incentive outcome.

Performance metrics

Performance measures for FY19–21 Plan awards

Weighting

Minimum Hurdle (0% Vesting)

Performance Measure
and Weighting

EPS growth (also subject to
ROCE gateway in year three)

Organic revenue growth

ROCE

1/3rd

12.5% growth by year three
(4% Compound Annual
Growth Rate – CAGR)

6.1% growth by year three
(2% Compound Annual
Growth Rate – CAGR)

Maximum Hurdle
(100% Vesting)

33.1% growth
by year three
(10% CAGR)

15.8% growth
by year three
(5% CAGR)

14.0% in year three 15.5% in year three

The LTI metrics reflect the business strategy of maximising sustainable growth organically and through
acquisitions aligned with leadership as a safety solutions company. Growth will be measured against
FY18 continuing operations at constant currency. The ROCE gateway to EPS achievement for the
FY19–21 plan was set at the same level as the minimum performance condition for ROCE (i.e.14.0%).
However the plan design also allows for the ROCE gateway to EPS achievement to be set at a different
level to the minimum ROCE performance condition.

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Remuneration Report (audited) continued

Other policy issues

Board discretion

Change of control

(a) HRC policy covers individual material items including restructuring charges, acquisitions, divestments,
equity capital issuance and repurchase. Discretion may be exercised when events or accounting
rules create a favourable or unfavourable effect on earnings for a single year that may cause a
misalignment between incentive outcomes and shareholder value creation.

(b) As described on pages 50 and 51, the Board exercised its discretion to exclude several items from

statutory reported results for the purpose of determining 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
mid-point 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 that has expired. Any restricted ordinary shares under the STI will become unrestricted
ordinary shares, unless the Board determines otherwise.

Recovery and withholding

The recovering and withholding provisions are consistent across both STI and LTI. The Board can claw
back incentives to cover the following events:

(a) Material misstatement of the financial statements

(b) Misconduct

(d) Serious reputational damage to the Group

Leaver treatment

(a) 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.

(b) 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 either a full or a pro rated award in certain circumstances, such as death,
disability, retirement, or any other reason approved by the Board. The Board has, in very limited
circumstances, exercised its discretion to enable such schemes to remain on foot after the
departure of Senior Executives.

Section 5 – Statutory Information

Executive Service Agreements

Chief Executive Officer
Magnus 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 that:

• 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 wilful misconduct;

• provides that in certain circumstances, such as a material diminution of responsibility or the CEO ceasing to be the most Senior

Executive of Ansell, the CEO may be entitled to a payment equivalent to 12 months’ base salary;

• requires the CEO to give the 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 2001 regarding the payment
of benefits.

Ansell Limited – Annual Report 2019Other Executives
Neil 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.

Steve Genzer was a KMP based in the United States and employed ‘at will’ and as such, his service agreement did not specify a fixed
term of employment. He was 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.

Joe Kubicek was a KMP based in the United States and was employed on an ‘at-will’ basis. He was 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.

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As disclosed previously, Steve Genzer and Joe Kubicek ceased to be KMP on 30 April 2019. They will both continue to participate
in LTI awards still on foot on a pro-rata basis. The outcomes of these awards will be tested in due course with other recipients.

Zubair Javeed is a Belgium-based Executive whose agreement does not specify a fixed term of employment. He is 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.

Darryl Nazareth was domiciled in Malaysia and transferred to the US from July 2019 as part of his new responsibilities. He is employed
‘at will’ and, as such, his service agreement does not specify a fixed term of employment. He is entitled to a severance fee equal to
12 months’ base salary assuming a termination for any reason other than resignation, performance issues or cause.

Securities Trading Policy
Ansell’s Securities Trading Policy (formerly the Share Trading Policy) outlines the law relating to insider trading and details the Company’s
requirements with regards to dealings in Ansell securities. The policy applies to all Directors and employees, and aims to prevent the
misuse (or perceived misuse) of sensitive information and ensure compliance with insider trading laws. The policy can be found on
the Ansell website at www.ansell.com.

Shareholder Alignment

Mandatory Shareholding Requirements
To encourage alignment with shareholder interests, the Company adopted mandatory shareholding requirements, known as the
Share Purchasing Policy. This policy requires Directors and Executives to purchase a multiple of their fee/base salary in Ansell shares
over a 10-year period. The current requirement is:

• CEO: 3 x base salary

• Executives: 1 x base salary

• Non-Executive Directors: 2 x annual Director fees,

to be achieved by 2023 or within 10 years of becoming a Director or Executive if appointed after 2013.

Vested but unexercised awards are included in the target assessment. Unvested equity rights held pursuant to the incentive plans
are not included in the target assessment.

Voluntary Share Purchase Plan
Ansell has developed a mechanism to enable Directors and Executives to regularly purchase Ansell shares, known as the Voluntary
Share Purchase Plan (VSPP). While optional, the VSPP facilitates compliance with the Share Purchasing Policy, while complying with
the Securities Trading Policy and ASX Listing Rules.

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.

Shares were purchased on market (at no discount) on behalf of the Directors throughout FY19 pursuant to the VSPP (as shown in the
current shareholding table on page 56).

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Remuneration Report (audited) continued

Current Shareholding
The table below details the movement of shares held by each KMP and the progress of each KMP during FY19 in achieving their
respective share ownership goals in accordance with the mandatory shareholder requirements set out in the Share Purchasing Policy
detailed on page 55.

Held at 1 July
(or Date
Appointed KMP)

VSPP
Purchases9

Other
Purchases

Awarded
During
the Year

Net Movement
Due to Other
Changes

Held at
30 June

% of Share
Ownership
Goal Met10

Target
Year to
Comply

Target Year
Projected
to Comply

Non-Executive Directors
G L L Barnes
FY19
FY18
J A Bevan
FY19
FY18
R J Bell1
FY19
FY18
W P Day
FY19
FY18
L Desjardins
FY19
FY18
M T Peterson
FY19
FY18
W G Reilly2
FY19
FY18
C M Stercken3
FY19
FY18
C Y Yan4
FY19
FY18
Executive Director
M R Nicolin
FY19
FY18
Other Executives
N Salmon
FY19
FY18
Z Javeed5
FY19
FY18
D Nazareth6
FY19
FY18
S Genzer7
FY19
FY18
J Kubicek8
FY19
FY18

68,116
63,478

26,017
18,728

19,847
18,740

29,707
28,838

6,711
4,230

23,647
23,647

40,202
39,464

860
–

–
n/a

266,239
251,783

39,556
35,689

–
n/a

4,100
n/a

20,919
20,185

70,828
70,546

3,997
2,138

1,044
559

694
1,107

134
869

4,956
2,481

–
–

1,856
860

629
n/a

–
–

–
n/a

–
–

–
2,500

–
6,730

–
–

352
–

–
–

500
–

–
n/a

–
–

–
n/a

–
–

n/a
n/a

9,094
738

n/a
n/a

88,719
14,456

15,490
3,867

–
n/a

6,258
n/a

9,088
734

7,600
282

–
–

–
n/a

(89,028)

–

–
–

–
n/a

–
–

72,113
68,116

27,061
26,017

n/a
19,847

30,193
29,707

11,667
6,711

23,647
23,647

49,296
40,202

3,216
860

629
n/a

265,930
266,239

55,046
39,556

–
n/a

10,358
n/a

n/a
20,919

n/a
70,828

193%
162%

138%
140%

n/a
108%

151%
162%

60%
41%

122%
129%

284%
264%

19%
5%

4%
n/a

149%
157%

169%
124%

0%
n/a

42%
n/a

n/a
92%

n/a
311%

2023
2023

n/a
2023

2023
2023

2025
2025

2023
2023

2027
2027

2029
n/a

COMPLY
COMPLY

n/a
COMPLY

COMPLY
COMPLY

2021
2023

COMPLY
COMPLY

2025
2028

2024
n/a

2023
2023

COMPLY
COMPLY

2023
2023

2029
n/a

2024
n/a

n/a
2023

n/a
2024

COMPLY
COMPLY

2029
n/a

2021
n/a

n/a
2019

n/a
COMPLY

1. Ronald Bell retired from the Ansell Board of Directors with effect from 18 October 2018. His closing balance disclosed above is as at his retirement date

of 18 October 2018.

2. William Reilly was appointed as a Non-Executive Director on 20 October 2017. The shares awarded in FY19 relate to the FY16 LTIP award in respect to his

prior employment as an Executive at Ansell.

3. Christina Stercken was appointed as a Non-Executive Director on 20 October 2017.

4. Christine Yan was appointed as a Non-Executive Director on 1 April 2019.

5. Zubair Javeed became a KMP on 29 April 2019.

6. Darryl Nazareth became a KMP on 1 April 2019.

7. Steve Genzer ceased to be a KMP on 30 April 2019.

8. Joe Kubicek ceased to be a KMP on 30 April 2019.

9. Purchases made under the Voluntary Share Purchase Plan (see page 55).

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

at 30 June 2019.

Ansell Limited – Annual Report 2019
Equity Instruments
The table below details the movement in the number of Performance Share Rights (PSRs) over ordinary shares of Ansell Limited held
by the CEO and Other Executive KMPs during the 2019 financial year.

Held at
1 July or Date
Appointed

PSRs Granted
During the
Year1,8

PSRs Vested
During
the Year7

PSRs Lapsed/
Forfeited
During
the Year

Performance Share Rights

Magnus Nicolin

FY19

FY18

Neil Salmon

FY19

FY18

Zubair Javeed2,3

FY19

FY18

Darryl Nazareth4

FY19

FY18

Steve Genzer5

FY19

FY18

Joe Kubicek6

FY19

FY18

739,680

732,064

248,646

195,308

–

n/a

108,860

n/a

136,068

108,538

126,000

98,942

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Held at
30 June

733,525

739,680

306,090

248,646

50,000

n/a

203,089

233,602

(88,719)

(120,525)

–

(225,986)

93,976

93,206

50,000

n/a

39,206

n/a

58,796

50,484

59,198

47,596

(15,490)

–

n/a

(6,258)

n/a

(9,088)

–

(7,600)

–

(21,042)

(39,868)

n/a

(8,502)

133,306

n/a

(12,346)

(22,954)

(10,324)

(20,538)

173,430

136,068

167,274

126,000

1. PSRs were granted during FY19 pursuant to the FY19 LTI Plan, with the exception of a PSR grant to Zubair Javeed (see footnote 3). The fair values and factors
and assumptions used in determining the fair values of the PSRs applicable for FY19 are summarised in the table below. For completeness, FY18 and FY17 fair
values are also included. For FY20 onwards, the allocation of PSRs are to be calculated by way of a purely ‘face value’ methodology.

2. Zubair Javeed became a KMP on 29 April 2019.

3. Zubair Javeed was granted 50,000 Performance Share Rights as part of his sign-on bonus, which will vest on the second anniversary of his start date at Ansell.

4. Darryl Nazareth became a KMP on 1 April 2019.

5. Steve Genzer ceased to be a KMP on 30 April 2019.

6. Joe Kubicek ceased to be a KMP on 30 April 2019.

7. PSRs vested during FY19 pursuant to the FY16 LTI Plan.

8. Mr WG Reilly, a current Non-executive Director and former Senior Executive of the Company, held 42,819 (recorded at target) PSRs at the beginning of FY19
attributable to LTI grants in FY16 and FY17, at the time that he was an Executive. 9,094 PSRs originally allocated in FY16 vested during the year (and 1,630 lapsed)
following testing against the applicable performance conditions (see page 56). One share in Ansell was allocated to Mr Reilly in relation to each PSR that vested.
Pursuant to the terms of the LTI, no amount was payable by Mr Reilly for the shares allocated. As at 30 June 2019, Mr Reilly continued to hold 32,095 PSRs
(recorded at target) originally allocated in FY17 and that were tested following the end of FY19.

* Grants are recorded at maximum.

FY17 LTIP PSRs

FY18 LTIP PSRs

FY19 LTIP PSRs

Grant Date

Vesting Date

Fair Value

11/08/2016

30/06/2019

08/08/2017

30/06/2020

14/08/2018

30/06/2021

A$17.95

A$20.41

A$25.57

Share Price
on Grant
Date

A$19.49

A$22.01

A$27.86

Risk Free
Interest Rate

Dividend
Yield

n/a

2.85%

2.60%

2.98%

Awards that do not vest at vesting date automatically lapse.

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Remuneration Report (audited) continued

Executive Statutory Remuneration

Base
Salary1

Retirement
Benefits2

Termination
Benefits

Other3

Cash

Restricted
Shares

Cash

Equity

2019 Total
Earnings

STI4

LTI5

US$ Name

Year

Executive Director

Magnus R Nicolin

2019 1,066,000

376,781

2018 1,066,000

508,088

Other Executives

Neil Salmon

2019

581,401

62,607

2018

585,450

54,460

–

150,478 1,199,250

23,203

155,065

910,830

–

30,019

438,199

12,860

–

1,745,986 4,561,698

2,565,744 5,205,727

736,979 1,862,065

29,609

346,114

– 195,888

738,824 1,950,345

Steve Genzer6

2019

427,174

44,992

498,349

2018

424,064

48,383

–

Joe Kubicek7

2019

430,100

37,824

493,223

2018

426,842

42,501

Zubair Javeed8

2019

102,621

9,031

2018

–

Darryl Nazareth9

2019

103,686

9,285

Anthony Lopez10

Jeyan Heper11

2018

2019

2018

2019

2018

–

15,259

2,045

–

46,954

5,192

–

210,971

157,296

212,416

152,782

310,809

–

14,158

42,853

–

114

–

12,925

–

422,758 1,604,244

172,398

409,620 1,211,761

–

410,047 1,583,610

– 144,160

372,277 1,138,562

–

422,461

–

79,951

249,933

–

106,967

127,633

252,018

–

79,213

55,548

199,832

1. Base salary includes the salary earned by the individual in FY19. The increases in base salary for Executives are based on performance and external

benchmarking of similar positions in the jurisdictions in which the Executives are based. Thus, the CEO did not receive any pay increase in FY19, while
the Other Executives’ pay increases ranged from 0% to 2%. Mr Salmon is remunerated in Euros and the US$ reduction above reflects translation impacts.

2. Retirement benefits includes all the retirement benefits earned by the individual in FY19. Mr Nicolin’s retirement benefits are based on his base salary plus

prior year STI achievement and will vary from year to year.

3. Other includes the cost to the Company of cash benefits such as motor vehicle, expatriation and relocation expenses, insurance, expat tax equalisation

payments and other amounts. Mr Javeed’s other benefits include his sign-on bonus, which includes cash and accrued Performance Share Rights that will
vest on the second anniversary from 28 April 2019.

4. 2019 STI represents amounts payable under the 2019 Short Term Incentive Plan.

5. 2019 LTI includes amounts provided in respect of the Group’s LTI Plans.

6. Steve Genzer ceased to be a KMP on 30 April 2019. The remuneration information disclosed in this report is for 12 months ended 30 June 2019.
Termination payments include entitlements payable pursuant to Mr Genzer’s employment agreement in addition to unused leave entitlements
at 30 June 2019.

Joe Kubicek ceased to be a KMP on 30 April 2019. The remuneration information disclosed in this report is for 12 months ended 30 June 2019.
Termination payments include entitlements payable pursuant to Mr Kubicek’s employment agreement in addition to unused leave entitlements
at 30 June 2019.

8. Zubair Javeed was appointed as CFO and became a KMP on 29 April 2019.

9. Darryl Nazareth was appointed as President of the Healthcare GBU and become a KMP on 1 April 2019. Mr Nazareth’s renumeration information disclosed

in this report only relates to the period after 1 April 2019.

10. Ceased to be a KMP on 15 July 2017.

11. Left the Company on 31 August 2017.

12. FY18 cash awards under the LTI are a legacy arrangement for Executives other than the CEO and have not been available since the F17 LTI grant.

Ansell Limited – Annual Report 2019Section 6 – Non-executive Directors

Policy and Approach

Overview of policy

(a) Structured with a fixed fee component only.

(b) Fees are not linked to the performance of Ansell, so that independence and impartiality are maintained.

(subject to applicable currency exchange rates).

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

• accountabilities and responsibilities attaching to the role of Director;

• time commitment expected of Directors;

• fees paid by peer companies;

• independent advice received from external advisers;

• 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.

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Aggregate fees approved
by shareholders

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

Base fees for 2019

Fees for Non-Executive Directors during FY19 were as follows:

Base Fees (Board)

Non-Executive Chairman

US$320,000 (inclusive of Committee fees)

Non-Executive Deputy Chairman

US$160,000 (inclusive of Committee fees)

Non-Executive Director

US$116,500

Committee Fees

Committee Chair

Committee Member

Audit & Compliance Committee

US$30,000

HR Committee

CSR & Risk Committee

Governance Committee*

US$30,000

US$12,000

US$6,000

Fees for Governance Committee membership are incorporated in HR Committee fees. Where a member of the Governance
Committee is not a member of the HR Committee, a pro rated fee is paid.

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

Directors are entitled to be reimbursed for all business-related expenses, including travel expenses
incurred performing 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.

FY20 – no fee change for FY20.

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Remuneration Report (audited) continued

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

Non-executive Directors

G L L Barnes (Chairman)

J A Bevan (Deputy Chairman)

R J S Bell3

L D Crandall4

W P Day

L Desjardins

M T Peterson

W G Reilly5,6

C M Stercken7,8

C Y Yan9

Total Non-executive Directors’ remuneration

Year

FY19

FY18

FY19

FY18

FY19

FY18

FY19

FY18

FY19

FY18

FY19

FY18

FY19

FY18

FY19

FY18

FY19

FY18

FY19

FY18

Directors’ Fees1

Superannuation2

335,000

159,817

57,737

170,983

–

55,122

159,361

158,448

167,221

153,722

173,211

171,369

151,241

105,973

155,241

115,046

38,875

1,397,704

1,425,480

–

15,183

2,517

–

887

15,139

15,052

279

1,778

289

2,131

259

1,652

259

1,579

–

31,504

40,779

Total

335,000

175,000

57,833

173,500

–

56,009

174,500

173,500

167,500

155,500

173,500

151,500

107,625

155,500

116,625

38,875

1,429,208

1,466,259

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 in FY19, the fees differ between FY18 and FY19 (refer to the Report by the Directors for further information). 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. Mr Bell retired from the Board on 18 October 2018 and his Director’s fees and associated entitlements reflect a part-year entitlement up to his retirement

date in FY19.

4. Mr Crandall retired from the Board on 20 October 2017 and his Director’s fees and associated entitlements reflect a part-year entitlement up to his

retirement date in FY18.

5. Mr W Reilly was appointed on 20 October 2017 and his Director’s fees and associated entitlements reflect a part-year entitlement in FY18 from the date

of his appointment.

6. Prior to Mr Reilly’s appointment as a Non-executive Director, Mr Reilly was paid US$10,958 in consideration of various preparatory work in relation to his
role as a Director (including attendance at various meetings with Directors and management) before his commencement as a Director. This payment was
made in October 2017. Furthermore, the amount shown within the table excludes $553,060 (equivalent to 30,811 PSRs at their grant date fair value) entitled
to Mr W Reilly and vested during FY19 pursuant to the FY17 LTI Plan. Mr W Reilly earned these PSRs during his employment as an Executive at Ansell and prior
to his appointment as a Non-executive Director on 20 October 2017.

Mrs C Stercken was appointed on 20 October 2017 and her Director’s fees and associated entitlements reflect a part-year entitlement in FY18 from the date
of her appointment.

8. Prior to Mrs Stercken’s appointment as a Non-executive Director, Mrs Stercken was paid two payments of US$10,958 each in consideration of various

preparatory work in relation to her role as a Director (including attendance at various meetings with Directors and management) before her commencement
as a Director. These payments were made in September and October 2017.

9. Ms Y Yan was appointed on 1 April 2019 and her Director’s fees and associated entitlements reflect a part-year entitlement in FY19 from the date of her

appointment. Ms Yan did not attend any meetings in Australia and was therefore not affected by footnote (2) above relating to superannuation.

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

Ansell Limited – Annual Report 2019
Section 7 – Group Performance and Remuneration Outcomes

Group Performance
The five-year performance history of the Group is summarised below.

Total Group Statutory Results

Continuing Operations

2015
US$m

2016
US$m

2017
US$m

2018
US$m

2019
US$m

2018
Adjusted3
US$m

2019
Adjusted3
US$m

1,645.1

1,572.8

1,599.7

1,547.5

1,499.0

1,489.8

1,499.0

245.3

187.5

236.7

159.1

217.8

147.7

557.0

484.3

157.3

111.7

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193.1

146.7

102.0

45.5

202.8

150.9

111.5

46.75

Income Statement

Sales

EBIT

Profit for the period attributable to Ansell shareholders

Share information

Basic Earnings Per Share (US cents)

122.5

105.1

100.1

336.8

82.6

Dividends per share1 (US cents)

43.0

43.5

44.0

45.5

46.75

Ansell share price (A$)

24.09

18.17

22.68

27.19

26.854

Cumulative Total Shareholder Return (TSR)2

Ansell TSR Performance

140%

120%

100%

80%

60%

40%

20%

June 12

June 13

June 14

June 15

June 16

June 17

June 18

June 19

STI/LTI Payouts as Percentage of Maximum

CEO Incentive Outcomes

STI (% of maximum)

LTI (% of maximum)

FY14

49%

82%

FY15

36%

50%

FY16

29%

FY17

67%

FY18

37%

42%

FY19

51%

48%

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

2. Cumulative Total Shareholder Return (TSR) is the cumulative financial return that 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 2019.

3. Adjusted results are continuing operations adjusted for Transformation and other one-off costs.

4. Share price is at 28 June 2019.

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Remuneration Report (audited) continued

Section 8 – Governance

Role of the Human Resources Committee

Board
The Board is responsible for:

• defining Ansell’s remuneration strategy; and

• 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, the CEO and Other Executives.

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

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

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

Consultation with shareholders
and other stakeholders

Remuneration consultants
and other external advisers
• 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
advisers on various remuneration-
related matters.

• Any advice or recommendations

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

Remuneration consultants
and other external advisers
• Management may seek its own

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

External Consultants
During the year, the HRC engaged KPMG-3dc to provide an Australian market practice perspective on management’s international
remuneration proposals, disclosure in the Remuneration Report and to provide regular updates on Australian regulatory and
market trends.

During FY18 and FY19, the HRC engaged PwC to review variable pay strategy and incentive plan design. The Committee agreed
to defer making any determination on incentive plan changes until FY21.

During FY19, the HRC engaged FIT to provide independent advice on remuneration.

Shareholder Engagement
The HRC maintains a regular dialogue with major shareholders, relevant institutional investor bodies and proxy advisers. 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.

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Section 9 – Glossary

Board means the Board of Directors of Ansell Limited.

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

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.

Constant currency refer to page 3 of this Report.

Corporations Act means the Corporations Act 2001 (Cth).

EBIT means all profits of Ansell before taking into account interest 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 that is allocated to each outstanding ordinary fully paid share.

Executive or Group Executive in this Report refers to the CEO and Other Executives.

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 pre tax paid net receipts from customers per the Consolidated
Statement of Cash Flows, excluding transformation cash paid and discontinued operations and adjusted for Capex (see above), and
interest received and paid (net interest).

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.

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Remuneration Report (audited) continued

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

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

PSRs means Performance Share Rights.

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 that vested in relation to the completion of the relevant
financial year. Equity incentives were valued using the values of the shares determined as at the vesting date.

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). ROCE for remuneration outcomes is adjusted for acquisitions.

ROCE gateway means the ROCE required for the successful achievement of the relevant award.

Short Term Incentive Plan (STI) 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 that 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.

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 2019Consolidated Income Statement
of Ansell Limited and Subsidiaries for the year ended 30 June 2019

Note

2019
US$m

2018
US$m

Continuing operations

Revenue

Sales revenue

Expenses

Cost of goods sold

Distribution

Selling, general and administration including restructuring and change in accounting estimate

3(b)

3(a)

4(a)

18(b)

1,499.0

1,489.8

(915.0)

(69.9)

(356.8)

(907.1)

(65.0)

(359.9)

(1,341.7)

(1,332.0)

(13.6)

143.7

(30.6)

113.1

–

113.1

111.7

1.4

113.1

(12.5)

145.3

(4.7)

140.6

345.6

486.2

484.3

1.9

486.2

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Note

2019
US cents

2018
US cents

82.6

81.2

96.5

95.1

–

240.3

236.8

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

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

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Consolidated Statement of Comprehensive Income
of Ansell Limited and Subsidiaries for the year ended 30 June 2019

Profit for the period

Other comprehensive income

Items that will not be reclassified to the Income Statement:

Retained earnings

2019
US$m

113.1

2018
US$m

486.2

Remeasurement of defined benefit superannuation/post-retirement health benefit plans

Tax benefit/(expense) on items that may subsequently be reclassified to the Income Statement

Total items that will not be reclassified to the Income Statement

(1.5)

0.3

(1.2)

3.7

(2.2)

1.5

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

(10.7)

(26.4)

Hedging reserve

Movement in effective cash flow hedges for the year

Movement in time value of options for the year

Tax benefit/(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.

(5.5)

(0.5)

1.2

(15.5)

(16.7)

96.4

95.3

1.1

96.4

95.3

–

95.3

9.3

1.4

(2.8)

(18.5)

(17.0)

469.2

466.8

2.4

469.2

116.3

350.5

466.8

Ansell Limited – Annual Report 2019Consolidated Balance Sheet
of Ansell Limited and Subsidiaries for the year ended 30 June 2019

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

Retirement benefit 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

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

Note

6(a)

7(a)

15(c)

7(b)

18(c)

15(c)

4(b)

12(a)

7(c)

15(d)

18(c)

15(d)

12(a)

4(c)

13(a)

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US$m

397.5

201.1

5.1

335.6

19.9

–

2018
US$m

582.8

201.0

9.8

329.8

17.6

12.3

959.2

1,153.3

4.3

2.7

229.8

1,082.6

66.0

4.9

27.4

1,417.7

2,376.9

5.7

3.3

230.4

1,028.4

67.6

5.9

27.9

1,369.2

2,522.5

225.6

222.2

3.0

20.0

56.4

7.9

–

3.0

–

53.0

14.9

6.4

312.9

299.5

2.1

0.4

3.1

0.5

525.3

552.0

8.8

14.7

76.5

25.8

653.6

966.5

7.8

14.3

71.1

24.0

672.8

972.3

1,410.4

1,550.2

873.9

(85.5)

610.0

1,052.6

(82.0)

564.0

1,398.4

1,534.6

12.0

15.6

1,410.4

1,550.2

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information

Consolidated Statement of Changes in Equity
of Ansell Limited and Subsidiaries for the year ended 30 June 2019

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:

Non-controlling interests of entities disposed

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.

2019
US$m

2018
US$m

1,550.2

1,228.7

95.3

1.1

466.8

2.4

(181.1)

9.3

(62.1)

(4.2)

(0.5)

2.7

(92.3)

10.4

(63.8)

(3.0)

(1.7)

1,410.4

1,550.2

1,052.6

1,142.2

2.4

(181.1)

873.9

2.7

(92.3)

1,052.6

Ansell Limited – Annual Report 2019Reserves

Share-based payments reserve

Balance at the beginning of the financial year

Transactions with owners as owners:

Charge 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 year:

Movement in effective cash flow hedges net of tax

Movement in time value of options net of tax

Balance at the end of the financial year

General reserve

Balance at the beginning of the financial year

Transfer (to)/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 year:

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

Transfer to retained profits

Balance at the end of the financial year

Fair value reserve

Balance at the beginning of the financial year

Transfer to retained profits

Balance at the end of the financial year

2019
US$m

2018
US$m

58.1

47.7

9.3

67.4

5.8

(5.3)

0.5

1.0

16.9

(5.9)

11.0

10.4

58.1

(2.1)

6.9

1.0

5.8

12.0

4.9

16.9

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(154.5)

(127.5)

(10.4)

(164.9)

(27.0)

(154.5)

(10.9)

10.9

–

2.6

(2.6)

–

(10.9)

–

(10.9)

2.6

–

2.6

Total reserves at the end of the financial year

(85.5)

(82.0)

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.

564.0

(2.4)

111.7

(1.2)

(62.1)

610.0

146.9

(4.9)

484.3

1.5

(63.8)

564.0

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Consolidated Statement of Cash Flows
of Ansell Limited and Subsidiaries for the year ended 30 June 2019

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

Proceeds/(payments) from the disposal of discontinued operations, net of cash disposed
and disposal costs

Income tax paid on the net gain on the disposal of discontinued operations

Proceeds from the sale of property, plant and equipment

Net cash (used in)/provided by investing activities

Cash flows related to financing activities

Repayments of borrowings

Payments for share buy-back

Dividends paid – Ansell Limited shareholders

Dividends paid – Non-controlling interests

Interest received

Interest and financing costs paid

Net cash used in financing activities

Net (decrease)/increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the financial year

Effect of movements in exchange rates on cash held

Cash and cash equivalents at the end of the financial year

Cash and cash equivalents at the end of the financial year comprises:

Continuing operations

Discontinued operations

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

Note

2019
US$m

2018
US$m

1,502.6

(1,288.7)

213.9

(25.0)

188.9

(75.5)

(43.6)

(4.4)

(0.3)

0.1

(123.7)

1,544.4

(1,355.2)

189.2

(35.6)

153.6

(1.0)

(45.7)

567.2

(44.0)

0.3

476.8

–

(170.9)

(181.1)

(59.7)

(0.5)

8.8

(20.9)

(253.4)

(188.2)

589.8

(4.1)

397.5

–

397.5

(92.3)

(61.1)

(1.7)

7.6

(22.2)

(340.6)

289.8

316.6

(16.6)

589.8

582.8

7.0

589.8

6(b)

6(a)

18(c)

Ansell Limited – Annual Report 2019

Notes to the Financial Statements
of Ansell Limited and Subsidiaries for the year ended 30 June 2019

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, arm and body protection solutions and clothing and is organised around two Global Business Units (‘GBUs’) as detailed
in Note 2.

• Healthcare GBU

• Industrial GBU

Statement of Compliance
The Financial Report is a general purpose financial report that 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 (‘IFRS’ or ‘IAS’).

The consolidated financial statements were authorised for issue by the Board of Directors on 12 August 2019.

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 Financial Report has been
prepared on a going concern basis, which assumes the continuity of normal operations.

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The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 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 is disclosed below.
The accounting policies have been applied consistently by all entities in the Group. The Group has adopted the following new
accounting standards, which had no significant impact on the Group’s financial statements. The Group has made no other changes
to the Group’s accounting polices during the financial year.

New Standards Adopted Effective 1 July 2018
The Group early adopted IFRS 9/AASB 9 Financial Instruments (2013) effective 1 July 2013 and adopted IFRS 9/AASB 9 Financial
Instruments (2014) effective 1 July 2018. The Group has adopted the practical expedient for low credit risk financial assets, which
allows the impairment of trade receivable balances to be measured on a 12-month expected credit loss (ECL) model. The Group’s
existing policy for determining the impairment of trade receivables by using ageing profiles of outstanding balances and applying an
expected default rate based on the historical default rate (which has been low), adjusted for forward looking estimates is consistent
with the ECL model. As such, the adoption of IFRS 9/AASB 9 Financial Instruments (2014) has not had a significant impact on the
Group’s accounting policies and practices.

The Group also adopted IFRS 15/AASB 15 Revenue from Contracts with Customers effective 1 July 2018. The Group’s primary source
of revenue is the supply of finished goods to its customers under trading terms, which is considered as the performance obligation
for revenue recognition. This performance obligation is achieved whereby control of the goods passes to the customer either at the
time of shipment or when the goods are received at the customer’s premises. As such, the Group’s sales are recognised at a point
in time. Customers may be offered various forms of rebates or other allowances, the levels of which are regularly monitored and
adjusted throughout the year where necessary.

The majority of these rebates and allowances are treated as a reduction to reported sales revenue. IFRS 15/AASB 15 Revenue from
Contracts with Customers also requires the disclosure of sales revenue disaggregated into categories that depict how the nature, amount,
timing and uncertainty of revenue and cash flows are affected by economic factors. Management believes that the disaggregation
of total sales revenue by GBU and geographical regions as presented in Note 2 Operating Segments satisfies this requirement.

The adoption of IFRS 15/AASB 15 Revenue from Contracts with Customers has not had a significant impact on the Group’s accounting
policies or practices.

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
1. Summary of Significant Accounting Policies continued

New Standards and Interpretations Not Yet Adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2019 reporting
and have not been early adopted by the Group. The most significant of these to the Group is IFRS 16/AASB 16 Leases.

IFRS 16/AASB 16 Leases was issued in January 2016 and is effective for annual reporting periods beginning on or after 1 January 2019.
The Group will adopt the standard effective 1 July 2019.

IFRS 16/AASB 16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right-of-use asset
representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are
recognition exemptions for short-term leases and leases of low-value items.

The Group will apply the modified retrospective approach as if IFRS 16/AASB 16 had always been applied with the cumulative effect of
adopting the new standard being recognised as an adjustment to opening equity as at 1 July 2019. Prior years’ comparative information
will not be adjusted under this method.

The Group has assessed the estimated impact that the initial application of IFRS 16/AASB 16 will have on its consolidated financial
statements and expects to recognise right-of-use assets in the range of $44m–$47m, and lease liabilities in the range of $49m–$51m
on 1 July 2019. Based on the Group’s lease portfolio and exchange and discount rates as at 30 June 2019, profit before income tax for
the next year is not expected to be materially impacted by the adoption of this standard.

Future operating cash inflows and financing cash outflows will increase as the repayment of the principal portion of the lease
liabilities and the annual interest cost will be classified as cash flows from financing activities.

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.

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 within equity in the foreign currency translation reserve.

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

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019Accounting Estimates and Judgements
The preparation of consolidated financial statements 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:

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. The factors
considered are detailed in Note 7.

Property, Plant and Equipment and Finite 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.
The useful economic lives are detailed in Note 8.

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Impairment of Goodwill and Brand Names
The Group tests whether goodwill and brand names are impaired at least annually, or more frequently if events or changes in
circumstances indicate that their carrying values may be impaired, in accordance with the accounting policy on intangible assets.
The policy requires the use of assumptions in assessing the carrying values of cash generating units. These assumptions are detailed
in Note 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 advisers.

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 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
2. Segment Information

The Group comprises the following operating segments:

Healthcare GBU: surgical and examination gloves, healthcare safety devices and active infection prevention products for healthcare
professionals and patients and single-use industrial application gloves.

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

2019

Sales revenue

Profit/(loss) before restructuring, asset impairment, net financing costs
and income tax expense

Restructuring and Transformation

Asset impairment

Net financing costs

Profit before income tax expense

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

Operating Segments

Healthcare
US$m

Industrial
US$m

Unallocated
US$m

Total Group
US$m

795.3

703.7

–

1,499.0

115.3

(3.1)

–

112.2

98.7

(25.8)

(8.3)

–

64.6

(11.2)

(8.3)

–

(13.6)

(33.1)

1,014.2

109.2

14.6

16.4

825.2

115.7

18.3

22.7

537.5

741.6

5.3

4.5

202.8

(37.2)

(8.3)

(13.6)

143.7

(30.6)

113.1

(1.4)

111.7

2,376.9

966.5

38.2

43.6

Operating Segments

Healthcare
US$m

Industrial
US$m

Unallocated
US$m

Continuing
Operations
US$m

Discontinued
Operations
US$m

Total Group
US$m

774.3

715.5

–

1,489.8

57.7

1,547.5

2018

Sales revenue

Profit/(loss) before restructuring, change
in accounting estimate, gain on the sale of
business, net financing costs and income tax
expense

Restructuring and Transformation

Change in accounting estimate – development
costs

Gain on the sale of business

Net financing costs

120.1

(5.4)

(3.9)

–

86.9

(11.6)

(7.3)

–

Profit before income tax expense

110.8

68.0

Income tax expense

Profit after income tax

Non-controlling interests

Net profit attributable to Ansell Limited shareholders

(13.9)

(7.1)

–

(12.5)

(33.5)

193.1

(24.1)

(11.2)

–

(12.5)

145.3

(4.7)

140.6

(1.8)

138.8

2.3

–

(1.3)

398.2

–

399.2

(53.6)

345.6

(0.1)

345.5

195.4

(24.1)

(12.5)

398.2

(12.5)

544.5

(58.3)

486.2

(1.9)

484.3

Segment assets

Segment liabilities

Segment depreciation and amortisation

Segment capital expenditure

1,027.4

96.9

14.4

14.8

743.4

118.5

18.6

29.0

739.4

750.5

6.0

1.2

2,510.2

965.9

39.0

45.0

12.3

2,522.5

6.4

0.8

0.7

972.3

39.8

45.7

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019Regional Information
Sales revenue is disclosed in the four geographical regions based on where the products are sold to external customers.

Assets (excluding goodwill, brand names and other intangibles) are allocated to the geographical regions in which the assets
are located.

Asia Pacific: manufacturing facilities in Malaysia, Thailand, Sri Lanka, China and Vietnam.

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

Latin America and Caribbean: manufacturing facility in Brazil.

North America: manufacturing facility in Mexico.

The table set out below summarises:

(i) Regional sales revenue from continuing operations.

(ii) Regional assets related to continuing operations.

Regions

Asia Pacific

Europe, the Middle East and Africa

Latin America and Caribbean

North America

Total regions

Sales Revenue

Regional Assets

2019
US$m

181.4

531.6

109.4

676.6

2018
US$m

183.7

550.2

106.5

649.4

1,499.0

1,489.8

2019
US$m

340.9

183.7

54.8

206.1

785.5

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2018
US$m

325.7

172.4

51.5

224.4

774.0

Country of Domicile
The Company’s country of domicile is Australia. The sales revenue and assets for the Australian entities (reported within the Asia
Pacific region) are as follows:

(i) Sales revenue from continuing operations.

(ii) Assets related to continuing operations.

Sales revenue

Assets

2019
US$m

119.3

27.6

2018
US$m

125.7

39.4

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
3. Profit Before Income Tax

(a) Profit Before Income Tax from Continuing Operations has been Arrived
at after Charging/(Crediting) the Following Items
This table summaries expenses by nature from continuing operations:

Interest expense
Other financing costs
Interest income
Net financing costs

Bad debts written off

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

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
Research and development costs

Net foreign exchange (gain)/loss

Loss on the sale of property, plant and equipment
Operating lease rentals
Write-down in value of inventories

(b) Transformation and Change in Accounting Estimate
The following table summarises the impact on the profit before income tax of:

(i) Transformation initiative announced on 20 July 2017; and

(ii) change in accounting estimate effective 1 July 2017.

Continuing operations
Selling, general and administration
Restructuring – Transformation initiative
Asset impairment (property, plant and equipment) – Transformation initiative
Change in accounting estimate – development costs

Discontinued operations

Selling, general and administration
Change in accounting estimate – development costs

2019
US$m

2018
US$m

18.9
2.5
(7.8)
13.6

0.1
0.7
0.8

223.5
14.1
11.7
2.3
9.3
260.9
12.2

(6.8)
0.4
29.6
6.0

20.1
4.1
(11.7)
12.5

0.1
3.7
3.8

231.3
15.1
14.3
3.0
10.4
274.1
15.8

6.3
–
28.1
3.0

2019
US$m

2018
US$m

37.2
8.3
–

24.1
–
11.2

–

1.3

Sales Revenue
Sales revenue is revenue from contracts with customers and 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 control of the goods have been transferred to
the buyer and can be measured reliably.

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 20194. Income Tax

(a) Income Tax Expense

2019
US$m

2018
US$m

Prima facie income tax calculated at 30% (2018: 30%) on profit before income tax

43.1

43.6

Reduced taxation arising from:

Investment and export incentive allowances

Impact of transformation costs

Impact of US tax reform on net deferred tax balances

Net lower overseas tax rates

Recognition/utilisation 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/(decrease) in deferred tax liability

Decrease/(increase) in deferred tax asset

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

Remeasurement of defined benefit superannuation/post-retirement health benefit plans

Movement in effective hedges for year

(13.2)

7.4

–

(6.3)

–

0.4

30.6

(11.9)

–

(18.7)

(3.1)

(3.7)

(1.5)

4.7

23.2

13.0

7.2

0.2

30.6

(0.3)

(1.2)

(1.5)

(22.6)

14.3

4.7

2.2

2.8

5.0

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Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information

4. Income Tax continued

The following summarises deferred tax assets and liabilities related to continuing operations:

2019
US$m

2018
US$m

(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

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

Under provision of prior year balance

Amount charged to the Income Statement

Amount charged to other comprehensive income

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

Financial instruments

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

(Over)/under provision of prior year balance

Amount (credited)/charged to the Income Statement

Amount credited to other comprehensive income

Net exchange differences on translation of foreign subsidiaries

Balance at the end of the financial year

36.0

30.0

66.0

7.2

18.2

4.7

5.9

30.0

66.0

67.6

0.1

(0.2)

0.5

(2.0)

66.0

6.2

63.9

0.8

5.6

76.5

71.1

(0.1)

7.2

(1.0)

(0.7)

76.5

27.2

40.4

67.6

6.5

13.8

1.9

5.0

40.4

67.6

88.5

0.4

(14.3)

(5.0)

(2.0)

67.6

4.8

60.9

2.1

3.3

71.1

89.9

3.9

(22.6)

–

(0.1)

71.1

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019(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 $8.3m (2018: $8.0m) and
$60.2m of capital losses (2018: $63.5m). 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.

F
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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

2019
US$m

113.1

(1.4)

111.7

–

111.7

–

111.7

2018
US$m

486.2

(1.9)

484.3

138.8

345.5

484.3

138.8

345.5

484.3

Number of Shares (Millions)

135.3

2.2

137.5

143.8

2.1

145.9

US Cents

82.6

81.2

–

96.5

95.1

240.3

236.8

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
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

(b) Reconciliation of Net Profit After Tax to Net Cash Provided by Operating Activities

Profit for the period

Add/(less) non-cash items:

Depreciation

Amortisation

Impairment – trade receivables

Share-based payments expense

Change in accounting estimate – development costs

Write-down of property, plant and equipment

Add/(less) items classified as investing/financing activities:

Interest received

Interest and financing costs paid

Loss on the sale of property, plant and equipment

Gain on the sale of businesses, net of tax

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/(increase) in trade and other receivables

Decrease/(increase) in inventories

Increase in other assets

Decrease in trade and other payables

Increase/(decrease) in provisions/other liabilities

Increase/(decrease) in retirement benefit obligations

Increase/(decrease) in provision for deferred income tax

Decrease in deferred tax asset

Decrease in provision for income tax

Other non-cash items (including foreign currency impact)

Net cash provided by operating activities

2019
US$m

0.1

108.5

286.1

394.7

2.8

397.5

2018
US$m

0.2

126.6

453.1

579.9

2.9

582.8

113.1

486.2

31.5

6.7

0.7

9.3

–

8.3

(7.8)

21.4

0.4

–

183.6

3.5

2.4

(1.1)

(2.4)

5.0

0.5

6.2

1.2

(7.9)

(2.1)

32.7

7.1

3.7

10.4

12.5

3.2

(11.7)

24.2

–

(344.8)

223.5

(6.9)

(0.7)

(2.8)

(20.2)

(3.5)

(5.9)

(22.0)

14.2

(22.9)

0.8

188.9

153.6

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019(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).

7. Working Capital

This table summarises working capital related to continuing operations:

Net trade receivables

Inventories

Trade payables

Total working capital

(a) Current Trade and Other Receivables
This table summarises current trade and other receivables related to continuing operations:

Trade receivables

Allowance for impairment

Provision for rebates and allowances

Net trade receivables

Other amounts receivable

Total current trade and other receivables

Movements in the allowance for impairment of trade receivables:
This table summarises the allowance for impairment of trade receivables related to continuing operations:

2019
US$m

192.2

335.6

(185.3)

342.5

2019
US$m

251.6

(8.1)

(51.3)

192.2

8.9

201.1

F
i

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a
n
c
i

a
l

R
e
p
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t

2018
US$m

191.9

329.8

(182.1)

339.6

2018
US$m

240.5

(8.0)

(40.6)

191.9

9.1

201.0

2019
US$m

2018
US$m

8.0

0.7

(0.6)

–

8.1

4.5

3.7

–

(0.2)

8.0

Balance at the beginning of the financial year

Amounts charged to the Income Statement

Amounts utilised for intended purposes

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

Gross Trade Receivables

Allowance for Impairment

2019
US$m

211.0

33.1

0.8

6.7

2018
US$m

201.6

29.4

1.5

8.0

251.6

240.5

2019
US$m

2018
US$m

–

1.5

0.5

6.1

8.1

–

1.2

0.5

6.3

8.0

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
7. Working Capital continued

(b) Inventories
This table summarises inventories related to continuing operations:

Raw materials

Work in progress

Finished goods

Total inventories

Inventories recognised as an expense

(c) Current Trade and Other Payables
This table summarises current trade and other payables related to continuing operations:

Current

Trade payables

Other payables

Total current trade and other payables

(d) Recognition and Measurement

2019
US$m

44.5

21.5

269.6

335.6

2019
US$m

882.5

2019
US$m

185.3

40.3

225.6

2018
US$m

42.7

17.2

269.9

329.8

2018
US$m

870.0

2018
US$m

182.1

40.1

222.2

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 Group determines that the trade receivables are low credit risk financial assets and measures the impairment of trade receivable
balances based on an expected credit loss model. The following basis have been used to assess the allowance for impairment of
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 that 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 production overheads as applicable.

Provision for Obsolete or Slow-moving Inventories
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 and other payables are normally settled within 30 to 60 days from invoice date or within the agreed payment terms with the supplier.

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 20198. Property, Plant and Equipment

This table summarises property, plant and equipment related to continuing operations:

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

10.6

–

10.6

34.4

(15.4)

19.0

Balance at the beginning of the financial year

7.1

16.9

Additions

Additions through entities/businesses acquired

Disposals/scrappings

Transfer from buildings and plant under construction

Depreciation

Net exchange differences on translation of foreign subsidiaries

–

3.2

–

0.3

5.2

–

(2.8)

0.8

(1.1)

–

Balance at the end of the financial year

10.6

19.0

40.7

144.8

65.2

(24.5)

40.7

39.9

0.5

–

(0.2)

3.8

(2.8)

(0.5)

425.7

(280.9)

144.8

147.2

7.5

0.4

(5.3)

22.9

(27.6)

(0.3)

2019

Cost

Accumulated depreciation

Movement

2018

Cost

Accumulated depreciation

Movement

Balance at the beginning of the financial year

7.0

15.7

37.5

144.7

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

7.1

–

7.1

31.8

(14.9)

16.9

62.0

(22.1)

39.9

436.5

(289.3)

147.2

1.8

(1.1)

1.0

(1.0)

0.5

–

(0.1)

3.9

(2.5)

1.1

6.6

(1.9)

24.3

(28.4)

1.9

16.9

39.9

147.2

19.3

230.4

Total
US$m

550.6

14.7

–

(320.8)

14.7

229.8

19.3

26.8

–

(0.5)

(30.7)

–

(0.2)

14.7

19.3

–

19.3

13.0

35.2

(0.1)

(29.2)

–

0.4

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230.4

40.0

0.4

(8.8)

–

(31.5)

(0.7)

229.8

Total
US$m

556.7

(326.3)

230.4

217.9

43.6

(3.2)

–

(31.9)

4.0

Additions

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

–

0.1

7.1

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information

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 rates and methods are reviewed annually for appropriateness.

9. Intangible Assets

This table summarises intangible assets related to continuing operations:

2019

Cost

Balance at the beginning of the financial year

Additions

Additions through entities acquired

Net exchange differences on translation
of foreign subsidiaries

Balance at the end of the financial year

Provision for amortisation and impairment

Balance at the beginning of the financial year

Amortisation

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

Goodwill
US$m

Brand Names
US$m

Software
Costs
US$m

Other
Intangibles
US$m

Total
US$m

237.7

–

14.2

(3.3)

248.6

59.6

0.1

(1.7)

58.0

190.6

69.4

3.6

–

(2.8)

70.2

37.8

5.3

(1.7)

41.4

28.8

23.7

1,272.8

–

3.6

64.3

(10.9)

23.7

1,329.8

6.3

1.3

–

7.6

244.4

6.7

(3.9)

247.2

16.1

1,082.6

942.0

–

50.1

(4.8)

987.3

140.7

–

(0.5)

140.2

847.1

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 20192018

Cost

Goodwill
US$m

Brand
Names
US$m

Development
Costs
US$m

Software
Costs
US$m

Other
Intangibles
US$m

Total
US$m

Balance at the beginning of the financial year

Additions

Additions through entities acquired/
completion of provisional accounting

Written off to the Income Statement

Net exchange differences on translation
of foreign subsidiaries

Balance at the end of the financial year

955.0

3.7

(12.7)

–

(4.0)

942.0

Provision for amortisation and impairment

Balance at the beginning of the financial year

137.6

Amortisation

Accumulated amortisation on amounts
written off to the Income Statement

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

–

226.5

–

16.3

–

(5.1)

237.7

61.3

0.1

26.7

–

(27.9)

1.2

–

16.1

–

(16.7)

3.1

140.7

(1.8)

59.6

801.3

178.1

0.6

–

71.6

1.4

–

(1.4)

(2.2)

69.4

33.8

5.7

(0.2)

(1.5)

37.8

24.0

1,303.8

–

5.1

3.6

(29.3)

(0.3)

23.7

(10.4)

1,272.8

5.2

1.3

–

(0.2)

6.3

254.0

7.1

(16.9)

0.2

244.4

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31.6

17.4

1,028.4

Carrying amount of goodwill and brand names allocated to each of the CGUs related to continuing operations:

Healthcare

Industrial

2019
US$m

677.7

360.0

1,037.7

2018
US$m

676.1

303.3

979.4

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, software costs and other intangible assets 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.

Software Costs
Capitalised 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 that are amortised on a straight-line basis
over the legal life of the patent and customer and distributor relationships that are amortised on a straight-line basis over their
estimated useful lives, which range from 6 to 20 years.

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
9. Intangible Assets continued

Recoverability Amount Assessment

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.

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.

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.

Goodwill and Indefinite Life Intangible Assets
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 CGUs has been determined based on a value in use calculation derived from five-year cash flow projections.

The base for each CGU is the budget for the 2020 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 2021 to 2024 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 3.0% and 9.4%
(2018: between 2.5% and 6.1%), while the growth in the terminal year was between 1.9% and 2.0% (2018: 2%).

The post-tax discount rates applied range between 7.9% and 8.2% (2018: 8% and 8.4%).

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 201910. Interest Bearing Liabilities

This table summarises interest bearing liabilities related to continuing operations:

Current

Loans repayable in:

US dollars

Total current

Non-current

Loans repayable in:

Euros

United States dollars

United Kingdom pounds

Total non-current

Total interest bearing liabilities

2019
US$m

2018
US$m

20.0

143.8

250.0

131.5

525.3

545.3

–

146.2

270.0

135.8

552.0

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This table summarises the movement in interest bearing liabilities related to continuing operations for the year ended 30 June 2019:

Balance at the beginning of the financial year

Movements in cash flows related to financing activities:

Proceeds from borrowings as per Consolidated Statement of Cash Flows

Repayments of borrowings as per Consolidated Statement of Cash Flows

Other movements:

Net exchange differences on translation of foreign subsidiaries

Balance at the end of the financial year

2019
US$m

552.0

–

(6.7)

545.3

The Group has a syndicated borrowing facility of US$300m, with GBP 103.8m (equivalent of US$131.5m) drawn down at 30 June 2019
maturing in June 2023, a Euro 25m revolving credit facility with Euro 25.0m (equivalent of US$28.4m) drawn down at 30 June 2019
maturing in January 2021, and Senior Notes to the equivalent of US$385.4m. A Senior Note of US$20.0m matures in June 2020.
The remaining Senior Notes of US$250m and Euro 101.5m (equivalent of US$115.4m) mature between June 2021 and June 2029.
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 Group 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

2019
US$m

20.0

525.3

(394.6)

150.7

2018
US$m

–

552.0

(579.7)

(27.7)

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.

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information

10. Interest Bearing Liabilities continued

This table summarises interest bearing liabilities related to continuing operations:

Nature and Currency of Borrowing

Bank loans

Other loans

Total interest bearing liabilities

Nature and Currency of Borrowing

Bank loans

Other loans

Total interest bearing liabilities

Euros

United Kingdom pounds

Euros

United States dollars

Euros

United Kingdom pounds

Euros

United States dollars

Effective
Interest Rate
% p.a.

Financial
Year of Debt
Maturity

1.00

2.35

1.02

2.75

2.47

4.41

3.91

4.70

4.05

4.68

2021

2023

2027

2028

2029

2020

2021

2024

2025

2026

Effective
Interest Rate
% p.a.

Financial
Year of Debt
Maturity

1.00

2.06

3.37

3.52

1.60

3.75

3.91

4.70

4.05

4.68

2021

2023

2020

2022

2023

2020

2021

2024

2025

2026

2019
US$m

28.4

131.5

40.6

34.2

20.0

50.0

100.0

50.0

545.3

2018
US$m

28.9

135.8

34.7

41.3

20.0

50.0

100.0

50.0

552.0

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 201911. Provisions

This table summarises provisions related to continuing operations:

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 charged 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

Amounts credited to the Income Statement

Payments made

Net exchange differences on translation of foreign subsidiaries

Balance at the end of the financial year

2019
US$m

2018
US$m

44.9

8.3

3.2

56.4

8.8

65.2

5.7

4.8

(2.3)

0.1

8.3

3.5

(0.3)

0.1

(0.1)

3.2

43.8

5.7

3.5

53.0

7.8

60.8

3.5

3.4

(1.2)

–

5.7

3.9

(0.3)

–

(0.1)

3.5

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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.

A non-current 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 that 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 at balance date that most
closely match the terms of maturity of the related liabilities.

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information

11. Provisions 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 the 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 Leads. 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 that 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 are determined as follows:

Retirement Benefit Asset

Fair value of defined benefit plan assets

Present value of accumulated defined benefit obligations

Defined benefit asset recognised in the Balance Sheet

The movements in the defined benefit asset during the year are outlined below:

Balance at the beginning of the financial year

Reclassification from defined benefit liability during the year

Actuarial (losses)/gains(i)

Current service cost(ii)

Net interest cost(ii)

Employer contributions(iii)

Net exchange differences on translation of foreign subsidiaries

Balance at the end of the financial year

2019
US$m

31.6

(26.7)

4.9

2018
US$m

33.7

(27.8)

5.9

2019
US$m

2018
US$m

5.9

–

(0.9)

(0.3)

0.2

–

4.9

–

(3.5)

2.4

(0.6)

(0.1)

7.8

(0.1)

5.9

The principal actuarial assumptions used (expressed as a weighted average) to calculate the defined benefit asset were as follows:

Discount rate

Future salary increases

2019
US$m

3.2%

3.0%

2018
US$m

3.7%

3.0%

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019Retirement Benefit Liability

Present value of accumulated defined benefit obligations

Fair value of defined benefit plan assets

Net defined benefit liability recognised in the Balance Sheet

The movements in the defined benefit liability during the year are outlined below:

Balance at the beginning of the financial year

Reclassification to defined benefit asset during the year

Actuarial losses/(gains)(i)

Current service cost(ii)

Net interest cost(ii)

Employer contributions(iii)

Net exchange differences on translation of foreign subsidiaries

Balance at the end of the financial year

2019
US$m

30.1

(15.4)

14.7

2019
US$m

14.3

–

0.6

2.0

0.2

(1.5)

(0.9)

2018
US$m

27.9

(13.6)

14.3

2018
US$m

19.0

(3.5)

(1.3)

2.2

0.1

(1.6)

(0.6)

14.7

14.3

The principal actuarial assumptions used (expressed as a weighted average) to calculate the defined benefit liability were as follows:

Discount rate

Future salary increases

2019
US$m

1.2%

1.5%

2018
US$m

1.4%

1.5%

(i) Actuarial gains and losses are recorded in other comprehensive income.

(ii) Current service cost and interest cost are recorded in the Income Statement as part of selling, general and administration expenses.

(iii) Employer contributions are a cash payment and are recorded as part of payments to suppliers and employees in the Consolidated Statement of Cash Flows.

The Group expects $1.1m in contributions to be paid to its defined benefit plans during the year ending 30 June 2020.

The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:

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Equity securities

Fixed interest securities

Property

Other

(b) Defined Contribution Superannuation Plans

Contributions to defined contribution plans during the year

2019
US$m

31%

63%

2019
US$m

11.7

2018
US$m

14%

66%

18%

2018
US$m

14.3

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
13. Issued Capital and Reserves

(a) Issued Capital

Issued capital

132,302,593 (2018: 142,280,089) ordinary shares, fully paid

44,700 (2018: 49,700) Executive Share Plan shares, paid to A$0.05 per share

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 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

2019
US$m

2018
US$m

873.9

1,052.6

–

873.9

1,052.6

Number of Shares

2019

2018

142,280,089

147,328,462

132,874

152,153

5,000

4,200

(10,115,370)

(5,204,726)

132,302,593

142,280,089

49,700

(5,000)

44,700

53,900

(4,200)

49,700

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, 132,874 shares were issued
during the year (2018: 152,153).

Executive Share Plan
During the financial year, 5,000 Executive Share Plan shares were paid (2018: 4,200). Shares allotted under the Pacific Dunlop Executive
Share Plan (which was discontinued in 1996) have been paid to A$0.05 per share.

Options
As at the date of this Report, there are nil (2018: nil) unissued shares in the Company remaining under option.

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019(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, the cumulative net change in the intrinsic
and time value of options and interest rate swaps 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. Refer to Note 1 Summary
of Significant Accounting Policies.

14. Dividends Paid or Declared

Dividends paid

2019
US$m

2018
US$m

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A final dividend of US25.00 cents per share unfranked for the year ended 30 June 2018 (June 2017:
US23.75 cents unfranked) was paid on 13 September 2018 (2017: 8 September 2017)

34.9

35.1

An interim dividend of US20.75 cents per share unfranked for the year ended 30 June 2019 (June 2018:
US20.50 cents unfranked) was paid on 14 March 2019 (2018: 8 March 2018)

27.2

62.1

28.7

63.8

Dividends Declared
Since the end of the financial year the Directors have declared a final dividend of US26.0 cents per share unfranked, to be paid on
5 September 2019. The financial effect of this dividend has not been brought to account in the financial statements for the year ended
30 June 2019 and will be recognised in subsequent financial reports.

Dividend Franking Account
The balance of the dividend franking account as at 30 June 2019 was nil (2018: nil).

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
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 co-operation 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.

• Under the policy, the Group can hedge 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 1 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 1 year.

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

2019
US$m

20.0

2018
US$m

19.5

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

2019
US$m

2018
US$m

2019
US$m

2018
US$m

–

8.0

(1.9)

7.9

(0.2)

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019(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 enable parties to swap interest rates (from or to a fixed or floating basis) for a defined period of time. Maturities of the
contracts are principally between 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 1 year.

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

Fixed Interest Repricing In:

2019

Bank and other loans

Effect of interest rate swaps*

2018

Bank and other loans

Effect of interest rate swaps*

Weighted
Average Effective
Interest Rate %

Floating
US$m

1 Year
or Less
US$m

1 to 2
Years
US$m

3.4

(0.1)

3.4

(0.1)

159.9

(43.8)

116.1

164.7

(46.1)

118.6

20.0

(20.0)

–

50.0

28.4

78.4

54.6

(20.0)

34.6

2 to 5
Years
US$m

100.0

35.4

135.4

132.7

66.1

198.8

> 5 Years
US$m

Total
US$m

215.4

545.3

–

215.4

545.3

200.0

552.0

–

200.0

552.0

* Represents notional amount of interest rate swaps.

A separate analysis of debt by currency can be found at Note 10 – Interest Bearing Liabilities.

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.

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With all other variables held constant:

If interest rates were 10% higher

If interest rates were 10% lower

Profit for the Period

Equity

2019
US$m

2018
US$m

2019
US$m

2018
US$m

–

0.2

(0.2)

0.3

(0.3)

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
15. Financial Risk Management continued

(c) Credit Risk
The credit risk on financial assets (excluding investments) of the Group is the carrying amount, net of any provision for impairment,
that 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 related to continuing operations of US$397.5m at 30 June 2019 (2018: US$582.8m).
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 counter-parties 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 was:

Net trade receivables

Carrying Amount

2019
US$m

192.2

2018
US$m

191.9

Individual trade receivables that are known to be uncollectible are written off by reducing the carrying amount directly. 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.

(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 counter-party default loss is not considered material. The following table indicates the value of amounts owing by
counter-parties by maturity.

Foreign Exchange
Related Contracts

Interest Rate
Contracts

Foreign Exchange
Options

Total

2019
US$m

2018
US$m

2019
US$m

2018
US$m

2019
US$m

2018
US$m

2019
US$m

2018
US$m

Term:

0–6 months

6–12 months

1–2 years

2–5 years

> 5 years

Total

1.6

0.5

–

3.1

1.4

–

2.1

4.5

–

3.3

–

3.3

1.7

1.3

–

2.2

3.1

–

3.0

5.3

3.3

1.8

–

2.7

–

7.8

5.3

4.5

–

3.3

–

13.1

–

2.7

–

2.7

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019(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 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.

2019

Trade and other payables

Bank and other loans

Derivative financial instruments

Total

2018

Trade and other payables

Bank and other loans

Derivative financial instruments

Total

Carrying
Amount
US$m

Total
Contractual
Cash Flows
US$m

227.7

545.3

3.4

776.4

225.3

552.0

3.5

780.8

227.7

633.7

3.4

864.8

225.3

642.4

3.5

871.2

Contractual Maturity (Years)

1–2
US$m

2.1

94.6

0.2

96.9

3.1

72.7

0.4

76.2

2–5
US$m

–

270.8

0.2

271.0

–

337.8

0.1

337.9

0–1
US$m

225.6

37.6

3.0

266.2

222.2

18.1

3.0

243.3

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> 5
US$m

–

230.7

–

230.7

–

213.8

–

213.8

(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 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 that becomes the settlement value of the
derivative financial instrument.

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

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
15. Financial Risk Management continued

(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 $4.4m (2018: $9.6m) if all contracts were closed out on 30 June 2019.

Average
Exchange Rates

Average
Maturity
Days

Nominal/
Face Value
US$m

Credit Risk
US$m

Net Fair
Value
US$m

1.19

77.88

4.15

30.98

180.10

0.70

–

139

184

–

186

135

195

129

21.7

6.7

101.9

5.5

34.6

20.3

61.5

134.8

3.5

3.0

6.6

4.6

76.0

40.6

28.4

20.0

569.7

0.8

–

0.3

–

0.6

0.1

0.3

2.7

–

0.2

0.1

–

2.7

–

7.8

0.8

–

(0.2)

–

(0.1)

–

1.5

–

0.1

–

(0.2)

2.7

(0.2)

4.4

2019

Foreign Exchange Contracts

Purchase/sale contracts:

– United States dollars/Euros

– Australian dollars/Japanese yen

– Malaysian ringgits/United States dollars

– Thai baht/United States dollars

– Sri Lankan rupees/United States dollars

– United States dollars/Australian dollars

– Other

Foreign exchange zero cost collar options

Options strike rates

– Euros/United States dollars

– Australian dollars/United States dollars

– Canadian dollars/United States dollars

– United States dollars/Mexican pesos

– Japanese yen/United States dollars

1.16 – 1.18

0.69 – 0.71

0.75 – 0.77

20.00 – 22.00

104.00 – 106.00

Interest rate contracts

Interest rate swaps:

– GBP

– Euros

Payable fixed

Payable floating

Payable fixed

– US dollars

Payable floating

Total

Interest rate %

Years

0.96

Euribor

0.00

Libor

2.7

3.2

1.6

1.0

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019Average
Exchange Rates

Average
Maturity
Days

Nominal/
Face Value
US$m

Credit Risk
US$m

Net Fair
Value
US$m

153

152

213

–

179

161

169

171

57.6

7.0

83.6

8.2

40.5

10.0

55.3

118.1

2.3

8.8

13.9

16.1

10.9

7.0

78.5

41.3

28.9

20.0

2.1

–

1.5

–

0.3

0.2

0.4

3.8

0.1

0.3

0.5

0.4

–

0.2

0.6

2.7

–

608.0

13.1

2.1

(0.1)

0.7

(0.2)

0.2

0.1

(0.1)

3.4

0.1

0.3

0.4

(0.1)

0.1

0.6

2.7

(0.1)

(0.4)

9.6

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2018

Foreign exchange contracts

Purchase/sale contracts:

– United States dollars/Euros

– Australian dollars/Japanese yen

– Malaysian ringgits/United States dollars

– Thai baht/United States dollars

– Sri Lankan rupees/United States dollars

– United States dollars/Australian dollars

– Other

1.21

81.96

4.08

32.33

164.70

0.75

–

Foreign exchange zero cost collar options

Options strike rates

– Euros/United States dollars

– Australian dollars/United States dollars

– Canadian dollars/United States dollars

– United Kingdom pounds/United States dollars

– United States dollars/Mexican pesos

– United States dollars/Thai baht

– Japanese yen/United States dollars

1.18 – 1.20

0.77 – 0.79

0.78 – 0.81

1.34 – 1.39

19.00 – 21.00

32.00 – 33.00

103.00 – 108.00

Interest rate contracts

Interest rate swaps:

– GBP

– Euros

Payable fixed

Payable floating

Payable fixed

– US dollars

Payable floating

Total

Interest rate %

Years

0.96

Euribor

0.00

Libor

3.7

4.2

2.6

1.9

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
15. Financial Risk Management continued

The effects of hedge accounting on the financial position and performance of the Group is as follows:

Carrying
Amount of
Hedging
Instruments*

Change in Value
of the Hedging
Instrument for
Calculating Hedge
ineffectiveness

Change in
Value of the
Hedged Item for
Calculating Hedge
Ineffectiveness

Change in Value
of the Hedging
Instrument
Recognised
in OCI

Hedge
Ineffectiveness
Recognised
in P&L

Amount
Reclassified
From CFHR
to P&L

2.3

(0.3)

(0.2)

–

2.7

–

2.3

(0.3)

(0.2)

–

0.4

(2.3)

0.3

0.2

–

(0.4)

2.3

(0.3)

(0.2)

–

6.5

0.7

(0.1)

0.6

–

Carrying
Amount of
Hedging
Instruments*

Change in Value
of the Hedging
Instrument for
Calculating Hedge
Ineffectiveness

Change in
Value of the
Hedged Item for
Calculating Hedge
Ineffectiveness

Change in Value
of the Hedging
Instrument
Recognised
in OCI

Hedge
Ineffectiveness
Recognised
in P&L

Amount
Reclassified
From CFHR
to P&L

6.5

0.7

(0.1)

0.6

–

2.7

(0.4)

6.5

0.7

(0.1)

0.6

–

(0.3)

(0.4)

(6.5)

(0.7)

0.1

(0.6)

–

0.3

0.4

6.5

0.7

(0.1)

0.6

–

(4.4)

(1.6)

–

0.2

–

2019

Cash flow hedges

Revenue (up to 1 year)

Costs (up to 2 years)

EUR interest

GBP interest

USD interest

Fair value hedges

EUR interest

USD interest

2018

Cash flow hedges

Revenue (up to 1 year)

Costs (up to 2 years)

EUR interest

GBP interest

USD interest

Fair value hedges

EUR interest

USD interest

* Includes the time value of foreign exchange options.

(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.

The fair values of forward exchange contracts, foreign exchange options and interest rate swaps are determined based on the unrealised
gains and losses at the reporting date. This is done using the standard valuation technique based on the applicable market observable
rates including spot rate, forward points, volatilities and interest rate data sourced from brokers and third party market data vendors.

100

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019Derivative financial assets

Derivative financial liabilities

(g) Recognition and Measurement

Level 2

2019
US$m

7.8

3.4

2018
US$m

13.1

3.5

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.

• The Group predominantly does not deal with counter-parties 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 that may be covered are future net cash flows of overseas subsidiaries, future foreign exchange requirements
and interest rate positions.

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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.

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.

101

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
15. Financial Risk Management continued

Cash Flow Hedge
The effective portion of changes in the fair value of derivatives (including the intrinsic value of options) 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. The time value of options is accounted for as a hedging cost with changes in fair
value being recognised in the hedging reserve through other comprehensive income.

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

2019
US$m

2018
US$m

7.9

16.9

27.2

22.8

66.9

6.6

16.4

31.8

13.5

61.7

The Group leases property, motor vehicles and other plant and equipment under operating leases with lease terms of between
1 and 99 years. Some of the property leases include options to extend the term beyond the original end date.

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.

102

Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 201917. 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.

Ansell (Shanghai) Management Co. Ltd.
(formerly Pacific Dunlop Holdings (China) Co. Ltd.)

Ansell (Shanghai) Commercial and Trading Co. Ltd.

P.D. Holdings Pty. Ltd.

P.D. International Pty. Ltd.

Ringers Technologies Australia Pty. Ltd.

Ansell Canada Inc.

Ansell Canadian Holdings Limited

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

Ringers Global Middle East FZE

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 Brazil LTDA

103

Country of Incorporation

Beneficial Interest

2019
%

2018
%

Australia

Japan*

Australia

Singapore*

Australia

Singapore*

Australia

France*

Australia

China*

Australia

Canada*

Mexico*

Colombia*

Malaysia*

Sri Lanka*

UAE*

Mexico*

Singapore*

Malaysia*

Brazil*

F
i

n
a
n
c
i

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R
e
p
o
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t

100

–

100

–

100

Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
17. Particulars Relating to Subsidiaries continued

Country of Incorporation

Beneficial Interest

2019
%

2018
%

Ansell Textiles Lanka (Pvt.) Ltd.

Ansell (Thailand) Ltd.

Ansell US Group Holdings Pty. Ltd.

Ansell USA LLC (formerly Ansell US Group Holdings (USA) LLC)

Ansell Liquid Asset Holdings LLC

Ansell (USA) Inc.

Ansell Edmont Industrial de Mexico S.A. de C.V.

Pacific Dunlop Holdings (USA) LLC

Barriersafe Solutions International Inc.

Ansell Healthcare Products LLC

Ansell Sandel Medical Solutions LLC

Ringers Technologies LLC

Valeo Technologies LLC

Ansell Hawkeye Inc.

Pacific Chloride Inc.

Pacific Dunlop Holdings LLC

TPLC Holdings Inc.

Accufix Research Institute Inc.

Cotac Corporation

Pacific Dunlop Finance Company Inc.

Comercializadora Ansell Chile Limitada

Corrvas Insurance (Singapore) Pte. Ltd.

Medical Telectronics N.V.

Ansell UK Limited

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 Services Poland Sp. z o.o.

Ansell Spain SL (Sociedad de Responsabilidad Limitada)

Comasec SAS

Sri Lanka*

Thailand*

Australia

USA*

Mexico*

USA*

Chile*

Singapore*

Netherlands Ant.*

UK*

Belgium*

Germany*

Italy*

Turkey*

Norway*

Sweden*

Lithuania*

Russia*

France*

Poland*

Spain*

France*

Ansell Industrial & Specialty Gloves Malaysia Sdn. Bhd.

Malaysia*

100

–

100

Ansell Portugal – Industrial Gloves, Sociedade Unipessoal,
Lda

Portugal*

100

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Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019Ansell Korea Co. Ltd.

Ansell Vina Corporation

Ansell Microgard Ltd.

Ansell Xiamen Limited

Ansell Microgard Xiamen Limited

Nitritex Limited

Nitritex (M) Sdn. Bhd.

Nitritex Canada Ltd.

Ringers Technologies UK Holdings Ltd.

Ringers Technologies Denmark APS

Pacific Dunlop Holdings (Singapore) Pte. Ltd.

Ansell India Protective Products Pvt. Ltd.

Ansell (Hong Kong) Limited.

PDOCB Pty. Ltd.

PD Licensing Pty. Ltd.

Siteprints Pty. Ltd.

S.T.P. (Hong Kong) Ltd.

Pacific Dunlop Holdings N.V.

Pacific Dunlop (Netherlands) B.V.

The Distribution Group Holdings Pty. Ltd.

The Distribution Group Pty. Ltd.

The Distribution Trust

Xelo Pty. Ltd.

Xelo Sacof Pty. Ltd.

Country of Incorporation

Beneficial Interest

2019
%

2018
%

Sth Korea*

Vietnam*

UK*

China*

UK*

Malaysia*

Canada*

UK*

Denmark*

Singapore*

India*

Hong Kong*

Australia

Hong Kong*

Netherlands Ant.*

Netherlands*

Australia

100

–

100

100(a)

100

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* Subsidiaries incorporated outside Australia carry on business in those countries.

(a) The trustee of The Distribution Trust is The Distribution Group Pty. Ltd. The beneficiary of the trust is Ansell Limited.

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17. Particulars Relating to Subsidiaries continued

The following subsidiaries were liquidated or merged with another subsidiary during the year:

• Microflex Corporation (merged with Ansell Healthcare Products LLC)

• Ampelos International Malaysia

• Comasec Holdings Ltd

• Marigold Industrial Ltd

The following entity was disposed of during the year:

• J.K. Ansell Ltd

18. Acquisitions and Discontinued Operations

(a) Acquisitions

Digitcare
Effective 31 October 2018, Ansell acquired the Digitcare business from Digitcare Corporation, an exam and specialty glove supplier.
The business offers purpose built Nitrile and latex gloves and is a leading glove supplier to the US Emergency Medical Services (EMS)
and Specialty Acute markets. The acquisition will provide an opportunity for the Group to strengthen its position as the leader in
disposable gloves for EMS professionals.

The total acquisition cost was $6.7m, comprised an upfront payment of $1.4m and a further $5.3m payable over 12 months.

The identifiable net assets acquired at fair value (determined on a provisional basis) were $2.4m resulting in goodwill of $4.3m.

Ringers Gloves
On 1 February 2019, Ansell Limited announced the acquisition of Ringers Gloves, a leading provider of specialty impact gloves
to the oil and gas and general industry segments with headquarters in Houston, Texas, for a total consideration of $69.6m.

The acquisition provides a highly complementary suite of industry-leading impact protection products, expanding Ansell’s position
in this attractive and growing specialty category.

Purchase Consideration and Cash Acquired

Gross cash consideration

Less:

Cash acquired

Payment for business combination, net of cash acquired

US$m

69.6

(0.5)

69.1

Acquisition-related Costs
Total transaction costs on acquisitions incurred to date are $1.3m. The total costs have been incurred in the current financial year.
These acquisition costs are not included in the purchase consideration disclosed above. These costs are included in the Income
Statement for the year ended 30 June 2019 and are disclosed in selling, general and administration expenses.

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Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019Identifiable Assets Acquired and Liabilities Assumed
The provisionally determined fair values of the assets and liabilities, excluding cash, of Ringers Gloves as at acquisition date are as follows:

Trade and other receivables

Inventories

Property, plant and equipment

Intangible assets, including goodwill ($45.8m)

Other assets

Total assets

Trade and other payables

Provision

Total liabilities

Total identified net assets acquired, excluding cash

Provisional
Fair Value
US$m

5.4

7.5

0.4

60.0

1.2

74.5

(4.4)

(1.0)

(5.4)

69.1

At 1 February 2019, the assets and liabilities of Ringers Gloves were measured at fair value at the acquisition date with fair values
having been determined on a provisional basis.

Revenue and Profit Contribution
In the five months to 30 June 2019, Ringers Gloves contributed sales revenue of $13.1m and profit after tax of $0.2m to the Group’s
results. If the acquisition had occurred on 1 July 2018, annualised sales revenue of $32.9m and a loss after tax of $1.1m would have
been recognised in the Group’s results for the year ended 30 June 2019. These amounts have been calculated using the subsidiaries’
results for the year. Acquisition costs relating to Ringers Gloves of $1.3m were incurred during the year ended 30 June 2019.

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Recognition and Measurement

Business Combinations
The Group accounts for business combinations using the acquisition method. Identifiable assets acquired and liabilities and contingent
liabilities assumed are measured at fair value. Any excess of the cost of acquisition over the fair values of the net identifiable assets
acquired is recognised as goodwill. Transaction costs are expensed as incurred unless related to the issue of debt or equity securities.

(b) Discontinued Operations

Sale of Sexual Wellness Business
On 25 May 2017, Ansell Limited announced that it had executed a binding agreement for the sale of its Sexual Wellness business
for US$600m to Humanwell Healthcare (Group) Co., Ltd and CITIC Capital China Partners III, L.L.P.

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18. Acquisitions and Discontinued Operations continued

Sale of J.K. Ansell Limited
On 4 September 2017, the Company also announced that it had executed an agreement with Raymond Limited, its joint venture partner
in J.K. Ansell Limited in India where Raymond Limited will take full ownership of the J.K. Ansell sexual wellness business. The associated
assets and liabilities were consequently presented as held for sale in the financial statements for the year ended 30 June 2018.
The transaction was completed on 1 July 2018.

Results from discontinued operations

Sales revenue

Cost of goods sold

Distribution

Selling, general and administration including change in accounting estimate

Gain on sale of business

Profit before income tax

Income tax expense on trading operations

Income tax expense on gain on sale of business

Profit after income tax

Non-controlling interests

Profit from discontinued operations attributable to Ansell Limited shareholders

Other comprehensive income from discontinued operations

Net exchange difference on translation of financial statements of foreign subsidiaries

Other comprehensive income from discontinued operations

Attributable to:

Ansell Limited shareholders

Non-controlling interests

Other comprehensive income from discontinued operations

Cash flows from discontinued operations

Net cash from operating activities

Net cash (used in)/from investing activities

Net cash flows from discontinued operations

2019
US$m

–

2018
US$m

57.7

(27.6)

(2.4)

(26.7)

398.2

399.2

(0.2)

(53.4)

345.6

(0.1)

345.5

4.8

5.0

(0.2)

4.8

–

(4.7)

8.8

522.5

531.3

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Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019Details of the sale of the discontinued operations

Net sale proceeds

Disposal costs

Net disposal consideration

Carrying amount of net assets sold

(Loss)/gain on sale before income tax, non-controlling interests of entities disposed and realisation
of foreign currency translation reserve

Non-controlling interests of entities disposed and realisation of foreign currency translation reserve

Income tax expense on gain

Gain on sale after income tax

Assets and liabilities of discontinued operations
The carrying amounts of assets and liabilities disposed of as at the dates of the disposals were as follows:

Cash and cash equivalents

Trade and other receivables

Inventories

Property, plant and equipment

Intangible assets

Deferred tax assets

Other assets

Total assets

Trade and other payables

Provisions

Current tax liabilities

Other liabilities

Total liabilities

Net assets disposed

2019
US$m

2.4

–

2.4

(5.4)

(3.0)

3.0

–

2019
US$m

7.0

1.7

2.2

1.4

–

2018
US$m

600.2

(40.7)

559.5

(161.3)

398.2

–

(53.4)

344.8

2018
US$m

15.6

33.4

36.2

35.6

72.7

3.8

2.7

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200.0

6.0

0.9

–

6.9

25.3

7.6

2.8

3.0

38.7

5.4

161.3

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18. Acquisitions and Discontinued Operations continued

(c) Disposal Group Held for Sale
As at 30 June 2018 the net assets of J.K. Ansell Limited were stated at their estimated net realisable value and comprised the following
assets and liabilities:

Cash and cash equivalents

Trade and other receivables

Inventories

Property, plant and equipment

Assets held for sale

Trade and other payables

Provisions

Liabilities held for sale

Net assets disposed

2018
US$m

7.0

1.7

2.2

1.4

12.3

6.0

0.4

6.4

5.9

Recognition and Measurement

Discontinued Operations
A discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly distinguished
from the rest of the Group and which:

• represents a separate major line of business or geographic area of operations;

• is part of a single co-ordinated plan to dispose of a separate major line of business or geographic area of operations; or

• is a subsidiary acquired exclusively with a view to re-sale.

Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified
as held-for-sale.

In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations, when an operation is classified as a
discontinued operation prior year comparatives in the Income Statement are restated as if the operation had been discontinued from
the start of the comparative year.

Assets Held for Sale
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held for sale if it is highly probable that they
will be recovered primarily through sale rather than through continuing use. Such assets, or disposal groups, are generally measured
at the lower of their carrying amount and fair value less costs of disposal. Any impairment loss on a disposal group is allocated first to
goodwill and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial
assets, deferred tax assets, or employee benefit assets that continue to be measured in accordance with the Group’s other accounting
policies. Impairment losses on initial classification as held-for-sale or held-for-distributions, and subsequent gains and losses on
remeasurement, are recognised in the Income Statement.

In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations, assets and liabilities held-for-sale are
disclosed separately from other assets and liabilities in the Balance Sheet. Prior year comparatives in the Balance Sheet are not restated.

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Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 201919. Parent Entity Disclosures

As at the end of and throughout the financial year ended 30 June 2019, the parent company of the Group was Ansell Limited.

Result of the parent entity

Profit for the period

Other comprehensive income

Total comprehensive income for the period, from continuing operations, net of income tax

Financial Position of the Parent Entity at Year End
This table summarises information related to continuing operations:

Current assets

Total assets

Current liabilities

Total liabilities

Total equity of the parent entity comprising:

Issued capital

Reserves

Retained profits

Total equity

2019
US$m

58.7

(3.2)

55.5

2019
US$m

1,035.0

2,451.6

1,236.4

1,239.9

873.9

(337.6)

675.4

2018
US$m

425.5

8.9

434.4

2018
US$m

1,276.5

2,806.3

1,352.9

1,358.0

1,052.6

(283.0)

678.7

1,211.7

1,448.3

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The Group has a net current asset position of $646.3m (2018: $853.8m), which the parent company controls. As at 30 June 2019, the parent
company has a net current liability position of $201.4m (2018: $76.4m). The Directors will ensure that the parent company has, at all
times, sufficient funds available from the Group to meet its commitments.

Parent Entity Guarantee
The parent entity guarantees the debts of certain subsidiaries that are guarantors under the Group’s revolving credit bank facility.

20. Related Party Disclosures

(a) Subsidiaries
Ansell Limited is the parent entity of all entities detailed in Note 17 Particulars Relating to Subsidiaries and from time to time has
dealings on normal commercial terms and conditions with those entities, the effects of which are eliminated in these consolidated
financial statements.

(b) Transactions with Key Management Personnel

(i) Key Management Personnel Remuneration

Short-term benefits

Retirement benefits

Termination benefits

Long-term equity-based incentives

Long-term cash-based incentives

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2019
US$

2018
US$

6,753,902

5,754,784

572,024

701,448

991,572

–

3,395,721

4,269,646

–

698,626

11,713,219

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Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
20. Related Party Disclosures continued

(ii) Service Agreements with Key Management Personnel
The Company has no service agreements with the Non-executive Directors. Refer to Section 5 of the Remuneration Report for details
of service agreements with the Managing Director and other Key Management Personnel.

21. Ownership-based Remuneration Schemes

Long Term Incentive Plans
The above plans involve the granting of Performance Share Rights (PSRs) to the Managing Director, other members of the Executive
Leadership Team and other members of senior management.

The fair value of PSRs granted is recognised as an employee benefit expense with a corresponding increase in equity over the
vesting period.

In accordance with the disclosure requirements of Australian Accounting Standards, remuneration includes a proportion of the fair
value of PSRs granted or outstanding during the year. The fair value is determined as at grant date and is progressively allocated over
the vesting period for these securities.

The fair value of PSRs is calculated at grant date. The fair values and the factors and assumptions used in determining the fair values
of the PSRs applicable for the 2019 financial year are as follows:

Instrument

Grant Date

Vesting Date

Fair Value

Share Price on
Grant Date

Risk Free
Interest Rate

Dividend
Yield

PSRs

11/08/2016

30/06/2019

08/08/2017

30/06/2020

14/08/2018

30/06/2021

A$17.95

A$20.41

A$25.57

A$19.49

A$22.01

A$27.86

n/a

2.85%

2.60%

2.98%

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

22. Auditors’ Remuneration

This table summarises auditors’ remuneration incurred in relation to continuing operations:

Audit and review of the financial reports:

Auditors of Ansell Limited and Australian entities – KPMG

Other member firms of KPMG(i)

Other services(ii):

Advisory services

Auditors of Ansell Limited and Australian entities – KPMG

Other member firms of KPMG

Other audit and assurance services

Other member firms of KPMG

Taxation and other services

Other member firms of KPMG

Total other services

Total auditors’ remuneration

2019
US$

2018
US$

1,388,259

1,421,889

779,854

714,509

2,168,113

2,136,398

53,633

47,490

172,851

–

8,134

28,000

–

9,010

109,257

209,861

2,277,370

2,346,259

(i) Includes fees paid or payable for overseas subsidiaries’ local statutory lodgement purposes, Group reporting and other regulatory compliance requirements.

(ii) Other services primarily include assurance-based engagements undertaken for compliance and internal governance purposes, tax and IT compliance.

Other services provided by KPMG to the Group are subject to appropriate corporate governance procedures encompassing the selection of service providers
and the setting of their remuneration.

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Notes to the Financial Statements continuedof Ansell Limited and Subsidiaries for the year ended 30 June 2019Ansell Limited – Annual Report 2019Directors’ Declaration

1. In the opinion of the Directors of Ansell Limited (‘the Company’):

(a) the consolidated financial statements and notes, set out on pages 65 to 112, and the Remuneration Report contained in

the Report by the Directors, set out on pages 39 to 64, are in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its performance, for the year ended

on that date; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001;

(b) the consolidated financial statements and notes also comply with International Financial Reporting Standards as disclosed

in Note 1;

and payable.

2. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Chief Executive

Officer and the Chief Financial Officer for the financial year ended 30 June 2019.

Signed in accordance with a resolution of the Directors:

G L L Barnes
Chairman

M R Nicolin
Director

Dated in Melbourne this 12th day of August 2019.

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Independent Audit Report
to the members of Ansell Limited

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Liability limited by a scheme approved under Professional Standards Legislation.KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.Independent Auditor’s Report To the shareholders of Ansell Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of Ansell Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: • giving a true and fair view of the Group's financial position as at 30 June 2019 and of its financial performance for the year ended on that date; and • complying with Australian Accounting Standards and the Corporations Regulations 2001. The Financial Report comprises: • Consolidated Balance Sheet as at 30 June 2019 • Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity, and Consolidated Statement of Cash Flows for the year then ended • Notes including a summary of significant accounting policies • Directors' Declaration. The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code. Ansell Limited – Annual Report 2019F
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Key Audit Matters The Key Audit Matters we identified are: • Valuation of goodwill and brand names • Taxation Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Valuation of goodwill and brand names (USD $1,037.7m) Refer to Note 9 to the Financial Report The key audit matter How the matter was addressed in our audit A key audit matter for us was the Group’s annual testing of goodwill and brand names for impairment, given the size of the balance (being 44% of total assets). The Group’s cash generating units (CGUs) operate in different countries or regions which give rise to complexity in determining a discount rate specific to each CGU. Valuation of goodwill and brand names is a key audit matter due to: •the inherent complexity in auditing the forward-looking assumptions applied to the Group’s value in use (VIU) models for each CGU given the significant judgement involved. The key assumptions in the cash flow models include the forecast revenue growth rate, margin percentages and terminal growth rate; and •The significant judgement associated with discount rates including the underlying risks of each CGU, the regions they operate in and the weighting applied to these risks. Our procedures included: •assessing the accuracy of prior period cash flow forecasts of the Group by reference to actual performance to inform our evaluation of current forecasts incorporated in VIU models; •using our knowledge of the Group and industry, and involving our valuation specialists, to challenge the significant judgements and assumptions incorporated in the Group’s VIU models by; •assessing the relevant cash flow forecasts and underlying assumptions against the latest Board approved plan; •challenging the Group’s forecast revenue growth rate and margin percentage assumptions by comparing against the Group’s current business performance and macroeconomic environment; •considering the impact to future cash flows of changes experienced during the year relating to the varying market conditions and expected volatility in the forecast period; and •considering the terminal growth rates used in comparison to relevant Gross Domestic Product growth rates and industry trends. •involving our valuation specialists in assessing the discount rate for each CGU by considering comparable market information; •assessing the Group’s determination of carrying values of CGUs against the requirements of the accounting standards; Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Independent Audit Report continued
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•evaluating the Group’s sensitivity analysis in respect of the key assumptions, including the identification of areas of estimation uncertainty and reasonably possible changes in key assumptions; and •assessing the related financial statement disclosures against accounting standard requirements. Taxation (Income Tax Expense USD$30.6m, Deferred Tax Assets USD$66.0m, Deferred Tax Liabilities USD$76.5m, Current Tax Liabilities USD$7.9m) Refer to Note 4 to the Financial Report The key audit matter How the matter was addressed in our audit The Group operates in a global tax environment across a number of tax jurisdictions. The corporate structure reflects the nature of the global operations and is driven by acquisitions, transactions and the execution of the Group’s global commercial strategy. This strategy includes: •manufacturing in countries with access to raw materials (including Sri Lanka, Thailand, China, Vietnam, Mexico and Malaysia); •managing sales and marketing on a regional basis. The key regional countries involved are the US, Belgium and Australia for the North America, EMEA and Asia Pacific regional structures respectively; and •external sales across many countries. Taxation is a key audit matter due to: •the number of jurisdictions and the need to consider their varying tax complexities and differing tax rules within each key jurisdiction including US, Belgium and Australia; •the nature of cross-border tax arrangements and our need to involve taxation specialists with cross border transactions experience and expertise in transfer pricing in key operational locations including; US, Belgium and Our procedures included: •identifying key tax areas impacting the Group by: •considering the latest Board approved Group Tax Risk Management policy; •attending regular meetings with Group management; •considering any judgmental positions; and •using our specialised knowledge of external developments in local jurisdictions and global tax environments; •evaluating the treatment of key tax areas using our local tax specialists’ knowledge by comparing against the local jurisdiction tax rules, legislation and compliance requirements; •focusing on new transactions undertaken in the year and where there had been significant developments with local tax authorities; •assessing the completeness of the tax provisions recorded by evaluating explanations using sources such: •communications from local tax authorities, including the status of recent and current tax authority audits and enquiries; •the outcomes of previous tax audits/reviews by the local tax authorities; and •transaction documentation; •considering tax advice obtained by the Group from external tax advisors. We assessed the skills and competencies of external advisors; •evaluating the tax balances and disclosure in the financial Ansell Limited – Annual Report 2019F
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Australia; •the changing tax environment where there have been significant developments to improve the transparency of tax arrangements; •the heightened awareness of tax disclosures given the global focus on tax transparency; and •the level of judgement applied by the Group in assessing the recoverability of deferred tax assets. statements against accounting standard requirement; and •assessing the Group’s tax loss utilisation models and key assumptions by: •comparing taxable profit to historical trends and performance to inform our evaluation of the current taxable profit forecasts; and •understanding the timing of future taxable profit and considering the consistency of the timeframes of expected recovery to our knowledge of the business and its plans. Other Information Other Information is financial and non-financial information in Ansell Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not and will not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Independent Audit Report continued
to the members of Ansell Limited

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Responsibilities of the Directors for the Financial Report The Directors are responsible for: • preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 • implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error • assessing the Group and Company's ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objective is: • to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and • to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our Auditor’s Report. Ansell Limited – Annual Report 2019F
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Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Ansell Limited for the year ended 30 June 2019, complies with Section 300A of the Corporations Act 2001. Directors’ responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibilities We have audited the Remuneration Report included on pages 41 to 64 of the Directors’ report for the year ended 30 June 2019. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.KPMG Suzanne Bell Partner Melbourne 12 August 2019 Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information
Five-Year Summary
of Ansell Limited and Subsidiaries for the year ended 30 June 2019

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 (US 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 debt to shareholders’ equity (%) – gearing

Number of shares at 30 June (million)

1. Includes continuing and discontinued operations.

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

43.0

7.6

200

36,014

14,500

14.9

16.4

15.1

81.4

11.4

39.7

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

43.5

7.7

232

39,884

15,890

15.0

14.1

14.9

85.6

10.7

37.1

148

20171
US$m

20181
US$m

1,600

218

1,548

557

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

44.0

8.3

216

36,798

15,483

13.6

12.7

13.6

83.2

9.6

33.1

147

484

580

561

230

1,028

112

2,523

226

–

552

121

973

1,550

1,052

(82)

564

1,534

1,550

1,522

336.8

331.9

45.5

10.9

154

34,307

12,482

36.0

35.0

35.3

82.1

44.6

(1.8)

142

2019
US$m

1,499

157

112

395

564

230

1,083

105

–

2,377

226

525

129

–

967

1,410

874

(86)

610

1,398

1,410

1,560

82.6

81.2

46.75

10.7

189

33,311

12,304

10.5

7.6

10.2

84.3

11.6

10.6

132

120

Ansell Limited – Annual Report 2019Shareholders

Details of quoted shares held in Ansell Limited as at 31 July 2019.

Distribution of Ordinary Shareholders and Shareholdings

Size of Holding

1 – 1,000

1,001 – 5,000

5,001 – 10,000

10,001 – 100,000

100,001 and over

Total

Number of Shareholders

Number of Shares

Percentage of Total

25,613

5,943

438

173

32,199

8,938,305

11,446,073

3,034,463

4,010,814

104,872,938

132,302,593

6.76

8.65

2.29

3.03

79.27

100.00

* Including 577 shareholders holding a parcel of shares of less than A$500 in value (1,970 shares), based on market price of $27.87 per unit.

Percentage of the total holdings of the 20 largest shareholders = 77.96%.

In addition to the foregoing, as at 30 June 2019, there were 18 members of the Executive Share Plan, holding a total of 44,700 plan
shares. Thirteen members have shares paid to 5 cents each, and five members have shares paid to $7.55 each.

Voting rights as governed by the Constitution of the Company provide that each ordinary share holder present in person or by proxy
at a meeting shall have:

(a) on a show of hands, one vote only;

(b) on a poll, one vote for every fully paid ordinary share held.

Twenty Largest Shareholders (as at 31 July 2019)

Rank Registered Holder

Number of Fully
Paid Shares

Percentage of
Issued Capital

HSBC Custody Nominees (Australia) Limited

J P Morgan Nominees Australia Pty Limited

Citicorp Nominees Pty Limited

National Nominees Limited

BNP Paribas Nominees Pty Ltd

Australian Foundation Investment Company Limited

BNP Paribas Noms Pty Ltd

HSBC Custody Nominees (Australia) Limited

Argo Investments Limited

Citicorp Nominees Pty Limited

National Nominees Limited

HSBC Custody Nominees (Australia) Limited-GSCO ECA

Australian Executor Trustees Limited

HSBC Custody Nominees (Australia) Limited - A/C 2

HSBC Custody Nominees (Australia) Limited

BNP Paribas Nominees Pty Ltd

Mirrabooka Investments Limited

Netwealth Investments Limited

Top 20 Holders of Ordinary Fully Paid Shares

Total Remaining Holders Balance

121

45,461,427

24,505,291

15,052,748

8,737,555

1,724,255

1,283,865

1,049,379

742,959

636,972

514,366

490,742

457,985

396,583

386,505

364,108

295,087

284,626

278,031

240,000

238,375

103,140,859

29,161,734

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18.52

11.38

6.60

1.30

0.97

0.79

0.56

0.48

0.39

0.37

0.35

0.30

0.29

0.28

0.22

0.21

0.18

77.96

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Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information

Shareholders continued

The names of substantial shareholders in the Company and the number of fully paid ordinary shares in which each has an interest,
as disclosed in substantial shareholder notices to the Company on the respective dates shown, are as follows:

Substantial Date

Name of Shareholder

Number of Shares

Percentage of Issued Share

3 December 2015

BlackRock, Inc.

19 February 2019

Vinva Investment Management Limited

12,261,519

7,155,008

9.27

5.41

122

Ansell Limited – Annual Report 2019Shareholder Information

Annual Report

Company Directory

Enquiries

Ansell’s Annual Report 2019 provides
shareholders with a summary of the
Group’s operations and contains the
full financial statement for FY19. The
Annual Report 2019 provides a summary
of the Group’s financial performance,
financial position, and financing and
investing activities.

The Annual Report and the Company’s
internet site are the main sources of
information for investors. Shareholders
who wish to contact the Company on any
matter relating to its activities are invited
to contact the most convenient office
listed below, or contact the Company
via its website at www.ansell.com.

Investor Relations Contact
Australia – Registered Company
Office

Mrs Jocelyn Petersen
Ansell Limited
Level 3, 678 Victoria Street
Richmond VIC 3121
Australia Mobile: +61 422 005 994
Australia Direct Line: +61 3 9270 7160
Australian Facsimile: +61 3 9270 7300
US Mobile: +1 732 567-4082
US Direct Line: +1 732 345-5348
Email: jocelyn.petersen@ansell.com

Europe

Mr Zubair Javeed
Ansell Limited
Boulevard International 55
1070 Anderlecht, Belgium
Telephone: +32 2 528 75 85
Facsimile: + 32 2 528 74 01
Email: zubair.javeed@ansell.com

Company Secretary
Australia – Registered Company
Office

Ms Catherine Stribley
Ansell Limited
Level 3, 678 Victoria Street
Richmond VIC 3121
Telephone: +61 3 9270 7125
Facsimile: +61 3 9270 7300
Email: catherine.stribley@ansell.com

There is currently an on-market buy-back.

Ansell Limited has opted to deliver its
Annual Report by making it available
on the Ansell website, www.ansell.com.
Shareholders are entitled to receive a
printed copy of the Annual Report, but
the Company will only send a printed
copy to shareholders who elect to
receive one.

Shareholders can also access other
information pertaining to the Company
and its activities from its website at
www.ansell.com.

Change of Address

Shareholders should notify the Company
in writing immediately if there is a
change to their registered address.
For added protection, shareholders
should quote their Securityholder
Reference Number (SRN) or Holder
Identification Number (HIN).

Dividend

A final dividend of US26.0 cents per
share will be paid on 5 September 2019
to shareholders registered on
19 August 2019.

The dividend will be unfranked.

Australian and US shareholders must
elect to have cash dividends paid
directly into any bank, building society
or credit union account in Australia
and the US (respectively). Shareholders
with a registered address in Canada
can receive their dividends in US dollars.

Shareholders requiring information
about their shareholdings should contact
the Company’s registry at:

Computershare Investor
Services Pty Ltd

Yarra Falls
452 Johnston Street
Abbotsford VIC 3067
or
GPO Box 2975
Melbourne VIC 3001 Australia
Telephone: +61 3 9415 4000
Facsimile: +61 3 9473 2500
Shareholder Enquiries: 1300 850 505
(Australian residents only)
Email: web.queries@computershare.com.au
or visit Computershare’s Investor Centre
online at www.investorcentre.com where
shareholder information can be accessed.
You will need to have your SRN or HIN
along with your postcode.

Listings

Ansell Limited shares (Ticker Symbol
ANN) are listed on the Australian
Stock Exchange.

Registered Office

Company Secretary: Catherine Stribley
Level 3, 678 Victoria Street
Richmond VIC 3121
Australia

Americas Commercial Hub

Commercial contact: Renae Leary
111 Wood Avenue, Suite 210
Iselin, NJ 08830
United States of America

EMEA/APAC Commercial Hub

Commercial contact: Rikard Froberg
Boulevard International 55
1070 Anderlecht
Belgium

Cyberjaya Commercial Hub

Commercial contact: John Marsden
Prima 6, Prima Avenue
Block 3512, Jalan Teknokrat 6
63000 Cyberjaya
Malaysia

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Ansell Limited – Annual Report 2019Report by the DirectorsRemuneration ReportFinancial ReportShareholders and Shareholder Information

Shareholder Information continued

2020 Financial Calendar*

Half year results announcement

Ex-dividend share trading commences

Record date for interim dividend

Interim dividend paid

Annual results announcement

Ex-dividend share trading commences

Record date for final dividend

Final dividend paid

Annual General Meeting

17 February 2020

21 February 2020

24 February 2020

12 March 2020

24 August 2020

28 August 2020

31 August 2020

17 September 2020

12 November 2020

* Timing of events may be subject to change. Any change will be notified to the Australian Securities

Exchange (ASX). See Ansell’s website for updates (if any).

124

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