FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of August 2004 (August 12, 2004)
Commission File Number: 0-15850
ANSELL LIMITED
(Translation of registrant’s name into English)
Level 3, 678 Victoria Street, Richmond, Victoria 3121, Australia
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulations S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
This Form 6-K contains forward-looking statements within the meaning of the Securities Exchange Act of 1934 as amended, and information that is based on management’s beliefs as well as assumptions made by and information currently available to management. When used in this Form 6-K, the words “anticipate,” “approach,” “begin,” believe,” “continue,” “expect,” “forecast,” “going forward,” “improved,” “likely,” “look forward,” “opportunity,” “outlook,” “plans,” “potential,” “proposal,” “should” and “would” and similar expressions are intended to identify forward-looking statements. These forward-looking statements necessarily make assumptions, some of which are inherently subject to uncertainties and contingencies that are beyond the Company’s control. Should one or more of these uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, expected, estimated or projected. Specifically, the ability of the Company to realize its ongoing commitment to increasing shareholder value through its ongoing restructuring, asset dispositions, strategic review and implementation, and cost cutting initiatives, may be affected by many factors including: uncertainties and contingencies such as economic conditions both in the world and in those areas where the Company has or will have substantial operations; foreign currency exchange rates; pricing pressures on products produced by its subsidiaries; growth prospects; positioning of its business segments; future productions output capacity; and the success of the Company’s business strategies, including further structural and operational changes, business dispositions, internal reorganizations, cost cutting, and consolidations.
Ansell Limited Full Year Results 30 June 2004 Chief Executive Officer
Doug Tough -
• growth Recovery divisions) costs
• Challenges (all Latex competitiveness Positioning sales Surgical sales of Glove US UK
• Scorecard Organicdisappointing—- Impact Condom Exam i i i
• Annual -
• (TSR) growthWon Return Safety Sigma reductions ROE Price Commitments transition salesContractsmarkets improvements Class Six cost ROA, Share Achievements Market CEO forGPO Launched Further Higher Shareholder USEmerging World Met Smooth Seeding— Operational—-—- TotalDividends, i i i i i
% Change +4.4 +11.2 +21.8 +72.0 +77.7 +46.4 +18.2 F’04 US$M 791.9 104.1 93.7 50.4 27.9 39.1 13.0 F’04 Financial Results F’03 US$M 758.7 93.6 76.9 29.3 15.7 26.7 11.0 HealthCare Ansell Ltd.
Sales EBITA i i Attributable Profit Earnings Per Share Dividends Declared
• (+11%) -2% $104 +12% +40%
• Year on
• (+4%) EBITA AM 46 EUR 29 AP 29 Region Year
• by
• $792
• AM 387 EUR 285 AP 120 F’04 Change =
• SALES % +1% +5% +17%
• of 04 Commentary Ahead usage F’ pricing Euro in sales Opportunities Gloves Moving capita Strong exam Verticals Region Signed / Strong per generating to Surgical issues Across Results Regional recovery, Contracts programs due Providing Changeover highestworld sales hasthe Tender Selling Branded PF in GPO UK Results Surgical Pressure Program to Slow New Solution Partnership Price AVP Move Broad Pacific: Strong Surgical AustraliaHyFlex Condom 5 Americas: iiii Europe/ME/Africa: iiii Asia iii
• (+11%) +43% -9% -10% $104
• Year
• (+4%) EBITA OCC 53 PROF 29 CON 22 on
• $792 Business Year = by
• OCC 388 PROF 272 CON 132 F’04 Change SALES = +6% +2% +5% %
• Commentary sales
• +19%) plant ground negative Foamlined) Pressures increasedSelling (vol (positiveknitted Continues restructuring lower by& gains: gaining costs, savings. new offset Growth and pricing, sales before Segment Conversion Latex plant Competitive Marketing Margin Selling/AVP exam glove savingsin HyFlex PF EBITA: offset Market Strong outsourcing Surgical mix,– (de-stocking cost Occupational: Continuedmix,savings) Solution Lowersalescosts Household Retail Plantinvestment i i Professional: ii Consumer: i ii
What Do I See After 100 days With Ansell Successful, loyal, committed and proud organisation Numerous entities (business, geography) all important Powerful Cash Generator Efficient and Effective Supply Chain Internally good in most functions but needs to be better Diverse, supportive Board New senior team, talented, hungry, professional Company that needs to be fast and disciplined getting to next level i i i i i i i i
Ansell’s Key Objectives No. 1 to Achieve F’05 Forecast Leverage Financial Strength To Develop a Growth Strategy for F’06 and Beyond F’04 Base i i i Methodology:
Consumer FHP Partnership Recover in UK Tenders Professional GPO contracts Emerging markets Expansion Solidify strong position Growth Opportunities Occupational Solution AVP SafetyNet™ Sumitomo JV / Japan selling -Americas Europe Asia Pacific
Ansell’s Key Objectives No. 1 to Achieve F’05 Forecast Leverage Financial Strength To Develop a Growth Strategy for F’06 and Beyond F’04 Base i i i Methodology:
Rustom Jilla Chief Financial Officer Financial Results
• % +4.4 +21.8 +72.0 pts pts Change +470 +250 non-recurring F’04 791.9 93.7 15.2 11.9 14.8 1.4 50.4 40.5% 6.4% 9.5X and write-offs US$4.9M) FITB
• F’03 758.7 76.9 14.8 15.5 15.8 1.5 29.3 3.9% 6.4X US
• 35.8% F’04 of Loss $2.3M, US$1.6M
• (F’03 and
• US$4.9M
• Profit restructuring Sales US$1.2M) included
• F’04 Sales : Tax Healthcare F’04
• Borrowings : F’04 Cover after
• Attributable Margin Attributable $3.6M, and
• EBITA Profit EBITA (F’03 F’03
• US$M Sales Goodwill Interest Tax Minorities Gross Profit Interest i
EBITA * * -4 +2 +10 +6 -3 -3
F’04 Key Performance “movers” Sales +14 +4 -4 *
Exam pricing FX offset higher Latex costs Knitted plant and outsourcing savings Professional plant improvements Condom Marketing & Selling Healthcare restructuring (US) US$M HyFlex Condom tenders * Not disclosed
Charged Against EBITA investment Write Down $0.7M (to Market ($5.2M)
Non-Recurring & Legacy Items Massillon Equipment $5.3M H1 a share H1) Compensation costs from GNB/Exide US Property Valuation $0.9M H2 Workers’
Non Cash Property & Equipment Write Downs $6.2M: - - Non Cash Ambri Price of Sales Tax Refunds Re Discontinued Businesses $12.4M Legacy Expenses & Provisions $6.7M - * All numbers in US$M
Net Total Cost $1.2M – i i i i
F’04 156.9 202.1 (27.9) 138.4 171.8 641.3 82.2 559.1 12.8 14.0 8.8 F’04 Balance Sheet F’03 175.3 216.4 (8.6) 134.0 170.2 687.3 124.2 563.1 18.1 11.7 5.6 Net Debt & Equity) Funds * US$M Fixed Assets Goodwill & Intangibles Other Assets/Liabilities Investment in SPT Working Capital Net Operating Assets Net Debt Shareholders’ Gearing % (Net Debt: ROA % ROE % *F’04 ROA excluding SPT is 18.0% (up from 14.9%)
• 2001 each 2006 and 2007 below option A$M 138 64 202 August the necessary to but of February - if 2005 better end expectations to the adjusted August 2006 till trading Tyres and Value interest) from significantly future September are investment on reviewed Goodyear from Pacific F’04 retain be (Carrying) accrued expectations. based to call for to is guaranteed. will put plan Book can South Results expects Value not Value Net Investment (including Structure can Loan Ansell Goodyear SPT’s restructure Ansell period. Carrying therefore Carrying half. Current • Options • • i i i i i i
F’04 113.0 (1.6) (11.3) (9.8) 90.3 (14.0) (47.9) (21.9) 35.5* 42.0 F’03 98.9 0.2 (5.0) (9.1) 85.0 (17.5) (4.8) (1.0) 21.2 82.9
Cash Flow
Operating EBITDA Working Capital Tax Paid Capital Expenditure Free Cash Flow Interest Paid (Net) Share Buy Back Dividends Other Reduction in Net Debt receivables and FX movements
US$M Interest Cover F’03 6.4X and F’04 9.5X *Includes proceeds from sales tax refunds, property sales, collections from non-trade
Driving TSR
Capital Management … million shares purchased in F’04 under on-market buyback Steps: Obtain approval at AGM, ATO ruling, ASIC relief, purchase around 17 million shares in F’05 H1 Benefits: Capital structure, ROE and EPS, TSR, Fairness Progress made Higher profits and strong cash generation lowering NIBD Good progress on legacy “overhang” Dividends resurrected for F’03 and increased 18% in F’04 9.9 Corporate governance progressed; internal audit, code of conduct, management alignment Next steps Return surplus cash through off-market buyback - - Aim to maintain and steadily grow dividends Seek to maintain investment grade financial profile i i i i i i i i
Doug Tough Chief Executive Officer Wrap Up
Go Forward Share/Value
Numerous avenues Occupational continue revitalisation Restoration Plan for Professional/Consumer Organic Geographical External –Continue Track Record of Performance Delivery, TSR Solidify New Senior Team Re Culture/Accountability Expectations Deliver Base Growth –—- Raise Team to Next Performance Level of Operational Excellence Develop Mid & Longer Term Plan Establish Platform for Future Growth among compelling opportunities—- -i i i i i i
• Segment Growth +10% +11% +11% grow
• 9 9
• Commitments to
• Market Commitment Actual 94 104 year F’05: >77 >92 >103 115 multi – Forecast
• Meeting a F’01
• made from we 50%
• 2002, EBITA US$ F’02 F’03 F’04 F’05 In i
ANSELL LIMITED
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| ANSELL LIMITED (Registrant) | ||
| By: | /s/ DAVID M. GRAHAM | |
| Name: | DAVID M. GRAHAM | |
| Title: | GROUP TREASURER | |
Date: August 12, 2004