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 2003 (August 20, 2003)

 

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 is designated as incorporated by reference into the Form F-3 Registration Statement filed with the Securities and Exchange Commission on November 20, 1990 with file numbers 33-37752 and 33-37752-01, the Form F-3 Registration Statement filed with the Securities and Exchange Commission on April 30, 1991 with file number 33-40228, the Form F-3 Registration Statement filed with the Securities and Exchange Commission on October 31, 1994 with file numbers 33-85802 and 33-85802-1, the Form S-8 Registration Statement filed with the Securities and Exchange Commission with file number 33-18603, and the Form F-3 Registration Statement filed with the Securities and Exchange Commission on July 25, 1997 with file number 333-6472.

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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.

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Ansell Limited

 

Announcement of Results

 

Year Ended 30th June 2003

 

Harry Boon – Chief Executive Officer

 

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Our Business In FY03

 

Revenue = US$759 M

 

Occupational		48%		Barrier Protection For Worker Consumer Patient
[PHOTO]								Injury
Medical Professional		35%				Protect Against		Contamination
[PHOTO]
Consumer		17%						Infection
[PHOTO]

 

 

 

 

 

 

 

 

 

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FY03 Financial Results

 

		30/6/02			30/6/03
		US$M			US$M			Change
Sales—Healthcare Segment		738.5			758.7			+2.7	%
EBITA
·    Healthcare Segment		84.7			93.6			+10.5	%
·    Continuing Business		70.2			80.5			+14.7	%
Attributable Income		(60.5	)		29.3
Earnings Per Share US¢		(32.3	)		15.7	*
A¢		(61.9	)		26.7	*

 

*

Excluding Ambri write-down, EPS is US17.6¢ A30.0¢ respectively

 

[PHOTO]

[PHOTO]

[PHOTO]

[PHOTO]

[PHOTO]

[PHOTO]

 

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Highs		Issues
•       Double-digit Healthcare Segment US$ EBITA growth   •       Operation Full Potential Wave 1 completed and Wave II begun   •       New management team   •       Operations:   -        Improved productivity at 6 plants -        World class Safety record   •       Benefits of weaker US$   •       Share buy back   •       Dividend payment		Operations:-   •       Massillon transfer to Shah Alam (surgeons’ gloves)   -        Slow scale-up (technical)   -        FDA detention   -        Supply shortage in H1   •       Latex cost increases   •       Exam glove price reductions in H1

 

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Occupational Division

48% of Operation Revenue and 39% of EBITA

 

US$M		F’02			F’03
Sales
HyFlexTM		35.5			52.5			Growing demand – 4 new variants launched
Chemical Resistant		50.5			55.7			Volume growth-Asia Pacific +22%, Europe +10%
Knitted		52.0			46.8			Lower volumes, but richer margin mix
Other		196.3			211.5			Broad based gains in each region
Total Sales		334.3			366.5
EBITA – Segment		19.3			36.9			Improved mix, plant rationalization benefits
EBITA – Margin		5.8	%		10.1	%

 

Strategy:   •       Continue development of hand injury solutions   •       Continue emphasis on higher margin products   •       Further benefit from lower cost plants

[PHOTO]

 

 

 

 

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Professional Division

35% of Operation Revenue and 34% of EBITA

 

US$M				F’02			F’03
Surgeons:		Powder Free		62.6			61.0			+22% in Europe; -14% in USA
		Powdered		85.0			76.2			Conversion to PF
		Synthetic		12.0			12.0			Future Growth Opportunity
Exam:		Powder Free		72.7			64.8			Price & volume stabilized in H2
		Powdered		19.5			14.0			Conversion to PF
		Synthetic Latex		23.3			26.2			Future Growth Opportunity
Other				10.5			11.3
Total Sales				285.6			265.5			H2 stronger than H1
EBITA – Segment				48.4			31.6
EBITA – Margin				17.0	%		11.9	%

 

Strategy:   •       Hospital Exam Gloves –       Demand/Supply equilibrium; grow PF and Synthetics   •       Surgeons’ Gloves –       US recovery now that supply is available –       Grow PF –       Expand synthetic range

[PHOTO]

 

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CONSUMER DIVISION

 

17% of Operation Revenue and 27% of EBITA

 

US$		$ F’02			F’03
Sales
Condoms: Branded Retail		62.0			66.0			Growth-Europe, Asia Pacific
Bid/Public Sector		26.6			30.1			Global Tenders (HIV/AIDS Funding)
HHG & Other		30.0			30.6			Household glove shares up in Australia
Total Sales		118.6			126.7
EBITA – Segment		17.0			25.1			Lower costs – Asian production
EBITA – Margin		14.3	%		19.8	%

 

Strategy:

 

•

Growth in USA – retail condoms

 

•

Expand unique Household gloves foamlined                                                                             [PHOTO]

 

•

Bolt-on acquisitions

 

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A Global Leader

 

Estimated global market size and positions

 

Surgical Gloves		Occupational Gloves (Synthetics)
Market: ~US$0.6B		Market: ~US$1.9B
2003		2003
#1 Ansell                    ~ 25%		#1 Ansell                        ~18%
#2 SSL                        ~ 23%		#2 Best                            ~ 6%
[MAP]
Exam Gloves (Excluding
Occupational)		Consumer (Condoms)
Market: ~US$1.0B		Market: ~US$0.9B
2003		2003
#1 Safeskin                ~ 19%		#1 SSL                            ~21%
#2 Ansell                    ~ 11%		=#2 Ansell                      ~11%

 

Source: Neilson, IMS, and internal estimates

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Meeting Market Commitments

 

Healthcare Segment EBITA US$M

 

		Committed		Actual		Growth
F’02		>77		85 ü		+10%
F’03		>93		94 ü		+11%
F’04		¯
F’05 *		115

 

* + 50% EBITA vs. 2001

 

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Rustom Jilla

 

Chief Financial Officer

 

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Reporting Currency

 

•

Ansell’s operating currency is US$ - all numbers today are in US$

•

US$ results translated to A$ solely for statutory reporting

•

No hedge on accounting translation into A$ as <6% of revenue is A$

•

Key financial hedge – Euro vs. US$

•

Recent share price trend mirrors A$/US$ FX movement

 

Share Price Trend A$ Vs US$

 

[CHART]

 

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Financial Highlights FY03

 

		Ansell Ltd						Continuing Operations
		F’02			F’03			F’02			F’03
EPS
US¢		(32.3	)		15.7			9.5			19.3
A¢		(61.9	)		26.7			18.3			32.8
ROA		12.0	%		11.7	%		12.3	%		14.6
INTEREST COVER		4.5	x		6.4	x
NIBD/EQUITY		42	%		22	%

 

•

Sales +2.7%

•

Gross Margin +8.7% (@ 36.1% - LY 34.3%)

•

Net Debt Reduced US$83 M

•

Asset Turns improved to 1.14 (LY 1.05)

•

1.46 M shares re-purchased @ av. A$5.80

•

Australia Corporate Office costs reduced by US$5.9M

•

Excluding Ambri write-down, EPS is US17.6¢ (A30.0¢ )

 

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[LOGO]    Group P&L

 

		Including discontinued businesses					Continuing Operations
		F’02			F’03		F’02			F’03		Change
US$ M												%
Sales Revenue		1,160.7			758.7		738.5			758.7		+2.7
EBITA		102.1			80.5		70.2			80.5		+14.7
Less Goodwill		15.2			14.8		14.6			14.8
EBIT		86.9			65.7		55.6			65.7
Less Interest & Borrowing Costs		28.6			15.5		16.7			12.4
PBT		58.3			50.2		38.9			53.3
Less Tax		20.9			15.8		19.5			15.8
Less Minorities		1.5			1.5		1.5			1.5
PAT		35.9			32.9		17.9			36.0		+101.0
Less Non recurring Before Tax		88.2			3.6		39.0			—
Less Non recurring Tax		8.2			—		—			—
Profit/(Loss) Attributable		(60.5	)		29.3		(21.1	)		35.9

 

13

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Cash Flow

 

US$ M		F’02			F’03
Operating EBITDA		92.1			98.9
Plus:                Working Capital Reduction		14.3			6.2
Less:                Tax Paid		(13.8	)		(5.0	)
Capital Expenditure		(11.6	)		(9.1	)
Interest Paid (Net)		(16.7	)		(12.4	)
Share Buy Back		—			(4.8	)
Dividends		(23.5	)		(1.0	)
Other		(30.6	)		12.6
Continuing Operations		10.2			85.4
Plus Discontinued		441.2			(2.5	)
Reduction in Net Interest Bearing Debt		451.4			82.9

 

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Net Debt and Gearing

 

		30/6/02 US$  M			30/6/03 US$  M
Gross Debt		353.3			314.4
Cash		(146.3	)		(190.2	)
Net Debt		207.0			124.2
Equity		495.9			563.1
Gearing (Net Debt:
Net Debt plus Equity)		29.4	%		18.1	%
Interest Cover		4.5X			6.4X

 

Including discontinued business

 

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Outlook: Growth From A Strong Base

 

Ansell has emerged from FY03 with:

 

•

Low-cost manufacturing base

 

•

Stronger Balance Sheet

 

•

Improved Cash Flow

 

•

Balanced Capital Management Strategy

 

Ø

share buy-back

 

Ø

reintroduced cash dividends

 

Revenue and EBITA growth will come from:

 

•

“ Sweet spot” growth opportunities

 

Ø

Occupational – ergonomic HyFlex range extensions & OVP

 

Ø

Professional – PF Conversions & Synthetics

 

Ø

Consumer – condom growth, HIV/AIDS & branded retail

 

•

Bolt on acquisitions

 

•

Operational Excellence – cost and quality

 

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Meeting Market Commitments

 

		Healthcare Segment EBITA US$ M
		Committed		Actual		Growth
F’02		>77		85ü		+10	%
F’03		>93		94ü		+11	%
F’04		¯
F’05 *		115

 

* + 50% EBITA vs. 2001

 

17

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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.

 

 

 

 

 

 

Date: August 20, 2003