ANSELL LIMITED — Management Reports 2009

Oct 13, 2009

Attention ASX Company Announcements Platform Lodgement of Open Briefing[®]

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Ansell Limited Level 3 678 Victoria Street Richmond VIC 3121

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Date of lodgement: 14-Oct-2009

Title: Open Briefing[®] . Ansell. CEO & CFO on Q1 Update

Record of interview:

corporatefile.com.au

Ansell Limited has just indicated that its EPS for the current year ending June 2010 is trending towards the top end of the US$0.56 to US$0.62 guidance range provided in August. What drove this degree of confidence this early in the year?

CEO Doug Tough

We’ve had a strong first quarter with both sales and EPS above budget. There were three main drivers. First, the US dollar was weaker in the first quarter and we’re benefitting at both the top and bottom line. Our original guidance assumed that forex translation versus F’09 would be neutral and in our market communications in August we flagged the potential for upside from a weaker US dollar. Second, our overall business and particularly Occupational is performing better than we expected. It could be that the global economy is recovering more swiftly than we envisioned. We’re not certain of the strength and sustainability of this growth but certainly each of the first three months of the financial year was better than we’d budgeted. Finally, there is the EPS contribution from the 2.5 million share buy-back.

Yes, it’s early in the fiscal year, but we felt that we should share our higher degree of confidence with the market.

corporatefile.com.au

Your guidance in August assumed a double digit sales decline in the first half, with a year-on-year increase in the second half. With Occupational performing

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better than expected, how are your other two businesses travelling compared with your expectations?

CEO Doug Tough

We think of our Professional and Consumer businesses as the more “recession resistant” parts of our portfolio. While not totally immune from economic downturns, they’re affected more by competitive activity, new products and specific marketing initiatives. Consumer has started the year more slowly than we’d like but we expect a pick-up in the areas that are behind. Professional is off to a solid start and is running slightly above our expectations.

corporatefile.com.au

Ansell undertook some restructuring in 2009 and you’ve indicated that you will have further restructuring costs in the current year. What benefits are expected from these restructuring initiatives in 2010 and when will the full benefits be realised?

CFO Rustom Jilla

The manufacturing restructuring we carried out in the second half of last year and the SG&A restructuring we carried out in July this year are delivering the expected savings. We haven’t quantified the F’10 benefits but we communicated our expectation that the net EPS benefit of these initiatives in F’11 vs. F’10 would be about US$0.10. That hasn’t changed.

corporatefile.com.au

In 2009 the level of tax booked to Ansell’s P&L was positively impacted by the recognition of US$6.9 million of Australian deferred tax assets, and the effective underlying tax rate was 11.3 percent. What tax rate does your 2010 guidance assume and what is the expected tax rate for the business in the medium term?

CFO Rustom Jilla

Ansell’s book tax rate varies from period to period depending on the tax jurisdictions in which we make profits. Forex plays a role here, as does economic activity in Europe and the US. So please use the range I’m about to give you with that caveat in mind! Based on how we are tracking and on our expectations of profits by country, our F’10 guidance assumes an underlying book tax range of 18 to 20 percent. At this stage you can assume a similar range for F’11 as well.

In recent years our effective book taxes have been reduced by deferred tax adjustments as unbooked tax losses were recognised. The expected F’10 and F’11 range does not include any net deferred tax adjustment benefits. Of course, there could well be additional deferred tax adjustment credits each year and this would reduce our book taxes and increase our reported EPS.

For F’10 we expect our cash tax rate to range from around 11 to 14 percent and there’s no reason right now to expect the F’11 rate to be any different.

corporatefile.com.au

Ansell commenced executing and completed its 2.5 million on-market share buyback in the last two months and you have just announced another buy-back – this

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time for 5 million shares. What is the expected EPS benefit from these buy-backs? Given continuing investment in organic growth and your stated interest in acquisitions, what is the rationale for continuing to buy back shares?

CFO Rustom Jilla

The EPS benefit of the 2.5 million share buy-back in F’10 will be slightly under US$0.01. The original EPS forecast for F’10 did not include this. Our current comment that we expect F’10 EPS to trend towards the top end of the guidance range includes the EPS accretion from the 2.5 million shares bought back but does not include the impact of the newly announced buy-back. It’s our practice to count on the benefits of buy-backs only after they are executed!

CEO Doug Tough

The fact that we’ve announced another buy-back reflects our belief that it’s appropriate to have an approved capital management program in place. We ended F’09 with strong cash generation and surplus cash, some of which we returned to our owners as we’ve continued to do since 2003. We might not be as swift to execute this next 5 million share buy-back, as we’ve just utilised US$20 million for the previous one, but buy-backs remain a key part of Ansell’s balanced capital management philosophy.

Of course we’re continuing to look at acquisitions as well. This isn’t necessarily an either/or situation. We have a strong balance sheet and undrawn debt facilities, and can buy back shares at the levels we’re talking about while also making small bolt-on acquisitions. What’s most important is that we invest the cash prudently; always looking for the highest returns to our owners, and that will continue to drive our actions.

corporatefile.com.au

Thank you Doug and Rustom.

For more information about Ansell, visit www.ansell.com or call David Graham on (+61 3) 9270 7215

For previous Open Briefings by Ansell, or to receive future Open Briefings by e- mail, visit www.corporatefile.com.au

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