HI5002 Finance Project: Financial Performance of Two Companies

This finance project report analyzes the financial performance of Australian Pharmaceuticals Limited and ANSELL Limited, two ASX-listed companies. The report examines the companies' descriptions, including their history and core activities. It then evaluates their performance using profitability ratios (return on sales, assets, and equity), liquidity ratios (current and quick ratios), and capital structure ratios (debt ratio and financial leverage). The analysis includes a comparison of the companies' monthly share prices, significant factors affecting stock prices, beta values, CAPM, and dividend policies. The report concludes with a letter of recommendation, summarizing the investment potential of the companies based on the financial analysis conducted. The study utilizes financial statements and market data to provide a comprehensive assessment of the companies' financial health and investment prospects.

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Project Report: Finance

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Contents
Introduction.......................................................................................................................3
1. Description of companies........................................................................................3
1.1. Australian pharmaceuticals limited..................................................................3
1.2. ANSELL limited..............................................................................................3
2. Performance ratio evaluation and comparison.........................................................4
2.1. Profitability ratios.............................................................................................4
2.2. Liquidity ratios.................................................................................................6
2.3. Capital structure ratios......................................................................................7
3. Monthly share price.................................................................................................8
4. Significant factors....................................................................................................9
5. Beta values and CAPM............................................................................................9
6. Dividend policy......................................................................................................10
7. Letter recommendation..........................................................................................11
References.......................................................................................................................13
Appendix.........................................................................................................................15

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Introduction:
The financial management process is helpful for the investors, analyst and the internal
stakeholder of the business to recognize the performance of the business in terms of
investment. The process of financial evaluation contains various methods which makes it
easier for the business to identify and evaluate the exact market position and the return level
of the business. In the report, two companies, Australian pharmaceuticals limited and
ANSELL limited has taken into concern to evaluate the investment position in the Australian
market.
The description of history, core activities etc of the companies, performance ratio
evaluation, monthly share price, beta values, CAPM, dividend policies etc of both the
companies have been identified to measure the investment level of the business. In the report,
the various financial analysis and stock analysis tools have been applied on the business to
make it easier for the business to reach over a better conclusion.
1. Description of companies:
1.1. Australian pharmaceuticals limited:
“Australian pharmaceuticals industries” is a pharmaceuticals company which offers
the healthy and beauty products in the Australian market. The company is involved in
manufacturing and retailing the pharmaceuticals products and the health and beauty products
in the Australian market. It is amongst the largest wholesale distributor pharmaceutical
company in the Australian market. The company retails its products through its own retail
store and the franchise, the main brands of the company includes Priceline pharmacy,
Priceline, soul pattinson and pharmacists advice (Home, 2018). The company has been
founded in 1971.
1.2. ANSELL limited:
Australian limited is a pharmaceuticals company which offers the pharmaceutical
solutions in the Australian market. The company is involved in manufacturing and retailing
the pharmaceuticals products such as protective industrial gloves, condoms etc in the
Australian market. The company retails its products through its delivering it to pharmacist
and through the retail stores in the Australian market (Home, 2018). The company has been
founded in 1893.

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The main competitive advantage of both the companies is highest share market in
their own products and the market performance of both the companies is improving rapidly.
2. Performance ratio evaluation and comparison:
The performance ratio study has been performed on both the companies to measure the
performance and the various financial positions of both the business. Performance ratio is a
financial evaluation study in which the income statement, balance sheet and cash flow
statement are evaluated and the main information are collected from the financial statement
to measure the various position of the business such as liquidity, long term solvency,
profitability etc positions (Madura, 2014). In case of Australian pharmaceuticals industries
and Ansell limited, the performance ratio calculations and the evaluation are as follows:
2.1. Profitability ratios:
Profitability ratios represent about the total profits of the business which has been
generated against various financial items such as sales, assets, equity etc of the business. the
return on sales, return on assets, return on equity, and DuPont analysis ratios have been
calculated in the report to measure the total profit which has been generated by both the
companies in order to improve the performance of the business (Gibson, 2011). The
profitability analysis graph of both the companies is as follows:
Figure 1: Profitability ratios
(Annual report, 2017)
On the basis of the above graph, it has been found that the profitability position of
Australian pharmaceutics industries has been improved from 2015 to 2016 and in 2017 a
decrement has been seen. The changes have occurred into the financial profitability analysis

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because of the various economical and industrial factors. The changes and the evaluation on
company explain that the profitability position of the company would be improved much in
the near future (Annual report, 2017).
The return on sales, return on assets, return on equity and DuPont analysis, and all the
ratios explains that the position of the company has been improved from 2015 in 2017. Even
though, the changes in the year of 2016 were more positive and explains that the profitability
position of the company would be improved in near future.
Profitability Ratios
Return on sales (ROS) = Net income / Revenue 1.25% 1.35% 1.29%
Return on assets
(ROA) = Net income / Total assets 3.21% 3.57% 3.61%
Return on equity
(ROE)
= Net income / Stockholders'
equity 8.53% 9.63% 9.45%
DuPont Analysis of
ROE
= ROS x Asset turnover =
ROA x Financial leverage =
ROE 8.53% 9.63% 9.45%
(Morningstar, 2018)
Further, on the basis of the evaluation on the profitability position of ANSELL limited,
the decrement has occurred from 2015 in 2017. The changes have occurred into the financial
profitability analysis because of the lower demand of the products of the company and higher
expanse on the operational activities of the business. The changes and the evaluation on
company explain that the profitability position of the company would be lowered much if the
proper actions would not be taken by the business.
The return on sales, return on assets, return on equity and DuPont analysis, and all the
ratios explains that the position of the company has been decreased from 2015 in 2017. Even
though, the changes could be controlled by the business through making few relevant changes
into the performance of the business.
Profitability Ratios
Return on sales (ROS) = Net income / Revenue 11.49% 10.29% 8.82%
Return on assets
(ROA)
= Net income / Total
assets 7.96% 7.07% 4.95%
Return on equity
(ROE)
= Net income /
Stockholders' equity 16.42% 14.44% 10.01%
DuPont Analysis of
ROE
= ROS x Asset turnover =
ROA x Financial leverage
= ROE 16.42% 14.44% 10.01%

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(Morningstar, 2018)
2.2. Liquidity ratios:
Liquidity ratios represent about the total short term solvency position of the business.
The liquidity position of the business has been evaluated through identifying the current
assets quick assets, current liabilities, cash flow etc of the business (Halili, Saleh and Zeitun,
2015). The current ratio and quick ratios have been calculated in the report to measure the
total liquidity position which has been maintained by both the companies in order to manage
the position of the business. The liquidity analysis graph of both the companies is as follows:
Figure 2: Liquidity Ratios
(Morningstar, 2018)
On the basis of the above graph, it has been found that the liquidity position of
Australian pharmaceutics industries has been improved from 2015 to 2016 and in 2017 a
decrement has been seen. The changes have occurred into the financial liquidity position
because of the various changes in the credit and financial policies. The current changes in the
company are better in terms of liquidity risk and working capital cost.
Liquidity Ratios
Current ratio
= Current assets / Current
liabilities 1.278 1.335 1.317
Quick ratio
= Current assets- Inventory /
Current liabilities 0.810 0.846 0.848
(Morningstar, 2018)

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The below table of Ansell limited’s liquidity position explains that the changes have
been seen in the liquidity analysis of the company. The table represent that the position has
been improved in 2017. Though, the current changes in the company are higher in terms of
working capital cost and company lower it to improve the position.
Liquidity Ratios
Current ratio
= Current assets / Current
liabilities 2.727 2.690 2.924
Quick ratio
= Current assets- Inventory /
Current liabilities 1.695 1.664 2.009
(Morningstar, 2018)
2.3. Capital structure ratios:
Capital structure ratios represent about the total long term solvency position of the
business. The capital structure position of the business has been evaluated through identifying
the debt, equity and interest level etc of the business. The debt ratio and financial leverage
have been calculated in the report to measure the total solvency position which has been
maintained by both the companies in order to manage the financial gearing level of the
business (Kurth, 2013). The capital structure analysis graph of both the companies is as
follows:
Figure 3: Capital structure ratios
(Morningstar, 2018)

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On the basis of the above graph, it has been found that the solvency position of
Australian pharmaceutics industries has been improved from 2015 to 2016 and in 2017 a
decrement has been seen (Morningstar, 2018). The changes have occurred into the solvency
position because of the various changes in the credit and financial policies. The current
changes in the company are better in terms of financial gearing level and cost.
Long-term Solvency ratios
Debt ratio
= Total liabilities /
Total assets 0.624 0.630 0.618
Financial leverage
= Total assets / Total
equity 2.656 2.700 2.618
(Morningstar, 2018)
Further, on the basis of the above graph, it has been found that the solvency position of
Ansell limited has been lowered from 2015 to 2017. A decrement has been seen into the
solvency position because of the various changes in the credit and financial policies. The
current changes in the company are required to become better in terms of financial gearing
level and cost.
Long-term Solvency ratios
Debt ratio
= Total liabilities / Total
assets 0.515 0.511 0.506
Financial leverage = Total assets / Total equity 2.063 2.043 2.024
(Morningstar, 2018)
3. Monthly share price:
The monthly stock price of both the companies has been measured against the AORD
stock.

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Figure 4: Stock price changes
(Yahoo Finance, 2018)
Report:
On the basis of the above chart, it has been found that the return from API and ANN
are 1.04% and 0.79% whereas the 0.34%% return are offered by the AORD stock. It explains
that the changes in the API stock are more attractive further, the volatility of both the stock
has been measured and it has been found that the volatility of API is higher than ANN
(Yahoo finance, 2018). Though, both the stock represent that the stock prices are not
affecting the AORD stocks. And all the stocks are individually fluctuating in the market.
The correlation among both the stock has been identified and it has been evaluated
that the correlation among the API and AORD are 0.38 whereas the correlation among the
ANN and AORD are 0.53. It represents that the relations among the stock are positive and
depict that the same changes could be taken place in both the companies (Reuters, 2018). The
trend among both the stock explains that the stock of API is more diverse and the volatility of
API is also higher. On the basis of the evaluation, it has been concluded that performance of
both the stocks are better. Though, the API stock is more attractive.
4. Significant factors:
On the basis of API stock, it has been found that the stock price of the company has
been improved on 30/06/2016, by 14.29%. It represents a higher increment in the stock price,
the changes have occurred due to the dividend announcement (AFR, 2018). Further, on

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31/05/2018, the stock position of the company has been improved by 28.70% due to the
announcement of the new project of the company (Yahoo finance, 2018).
In case of ANN stock, it has been found that the stock price of the company has been
lowered on 31/01/2017, by 10.47% (Annual report, 2017). It represents a higher reduction in
the stock price, the changes have occurred due to the better credit rating and sudden demand
of the stock (AFR, 2018). Further, on 28/02/2017, the stock position of the company has been
improved by 14.45% due to the announcement about the new corporate governance policies
of the business (Yahoo Finance, 2018).
5. Beta values and CAPM:
The beta value of both the companies is as follows:
API ANN
Beta 1.31 0.72
(Reuters, 2018)
On the basis of the beta factors and the given risk free rate and market premium, the
CAPM method has been applied on both the stock to measure the required rate of return from
the business:
CAPM (Cost of equity)
API ANN
Risk free rate 5.00% 5.00%
RM 6.00% 6.00%
Beta 1.310 0.720
Required rate of return 12.86% 9.32%
(Reuters, 2018)
On the basis of the below calculations, it has been found that the required rate of
return of API is 12.86% and the required rate of return of ANN is 9.32%. It explains that the
stock of API would offer more return to the shareholders of the business, though, the
associated risk with the API stock is also higher than the stock of ANN (Kurth, 2013).
6. Dividend policy:
Dividend policy mainly represent about the dividend payout ratio of the business, if
the dividend about ratio of a business is higher that means the business is following the
relevant dividend policies or if the dividend payout ratio is lower than it lead to the

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conclusion that the dividend policies of the company are irrelevant. Relevant and irrelevant
are two main dividend policies of the business which explains about different dividend
payment to the shareholders of the business (Kaplan and Atkinson, 2015).
Relevant dividend policies explains that the dividend are the major attractive factor to
impress and attract the shareholders towards the company, the better the dividend payout
ratio of the business, the better the investors would invest into the company. Whereas,
irrelevant dividend policy explains that business should not distribute the profit as dividend
and must retain it for future (Higgins, 2012). The return could be achieved by the
shareholders through selling the stock in the market.
In case of API stock, it has been earners that the dividend of the business has been
improved from 2015 and the dividend payout ratio of the business is 70% (Annual report,
2017). It expresses that most of the profits are distributed by the company as dividend to
impress the shareholders; the company is following the relevant dividend policies.
API
2015-
06
2016-
06
2017-
06
Dividends AUD 0.05 0.07 0.07
Payout Ratio % * 62.50% 70.00% 70.00%
(Annual report, 2017)
Further, in case of ANN stock, it has been measured that the dividend of the business
has been lowered from 2015 and the dividend payout ratio of the business is 42.64%. It
expresses that most of the profits are not distributed by the company as dividend. The
company believed that the return could be generated by shareholders through selling the
stock in the market (Annual report, 2017). The company is following the irrelevant dividend
policies.
ANN
2015-
06
2016-
06
2017-
06
Dividends AUD 0.59 0.61 0.55
Payout Ratio % * 37.34% 43.26% 42.64%
(Annual report, 2017)
7. Letter recommendation:

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To,
Client,
Address.
Subject: Recommendation letter.
Dear Client,
According to your interest on two Australian companies and their investment position, a
financial study has been conducted on both the companies to measure the investment level.
description of history, core activities etc of the companies, performance ratio evaluation,
monthly share price, beta values, CAPM, dividend policies etc of both the companies have
been identified to measure the investment level of the business.
On the basis of the company description, main competitive advantage of both the companies
is highest share market in their own products and the market performance of both the
companies is improving rapidly. Further, on the basis of the ratio analysis on both the
companies, it has been measured that the position of API stock are better in terms of
profitability, liquidity and solvency all the position.
On the basis of the evaluation on stock price movement, it has been concluded that
performance of both the stocks are better. Though, the API stock is more attractive in terms
of return and the fluctuations. Further, in terms of required rate of return, the return from API
stock are higher, though, the associated risk with the API stock is also higher than the stock
of ANN. The API is following the relevant dividend policies as well to offer the dividend to
the shareholders of the business.
It recommends you to invest into the Australian pharmaceuticals industries in order to get
higher return from the Australian stock exchange.

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References:
AFR, 2018, Ansell Limited. Viewed September 2018,
https://www.afr.com/research-tools/ANN/company-profile/operational-history
AFR, 2018, Australian pharmaceuticals limited. Viewed September 2018,
https://www.afr.com/companies/australian-pharmaceutical-industries-limited-api-30406823
Annual report, 2017, Ansell Limited. Viewed September 2018,
http://www.ansell.com/en/About/Investor-Center/Annual-Reports.aspx
Annual report, 2017, Australian pharmaceuticals limited. Viewed September 2018,
http://www.api.net.au/investor/annual-reports/
Gibson, C.H., 2011. Financial reporting and analysis. South-Western Cengage Learning.
Halili, E, Saleh, A and Zeitun, R. 2015. 'Governance and Long-Term Operating Performance
of Family and Non-Family Firms in Australia', Studies in Economics and Finance, 32 (4),
pp.398-421.
Higgins, R. C., 2012. Analysis for financial management. McGraw-Hill/Irwin.
Home, 2018, Ansell Limited. Viewed September 2018, http://www.ansell.com/en-US
Home, 2018, Australian pharmaceuticals limited. Viewed September 2018,
http://www.api.net.au/
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Kurth, S. 2013. Critical Review about Implications of the Efficient Market Hypothesis. GRIN
Verlag.
Madura, J. 2014. Financial Markets and Institutions. Cengage Learning.
Morningstar, 2018, Ansell Limited. Viewed September 2018,
https://www.morningstar.com/stocks/XASX/ANN/quote.html
Morningstar, 2018, Australian pharmaceuticals limited. Viewed September 2018,
https://www.morningstar.com/stocks/XASX/API/quote.html
Reuters, 2018, Ansell Limited. Viewed September 2018,
https://www.reuters.com/finance/stocks/overview/ANN.AX

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Reuters, 2018, Australian pharmaceuticals limited. Viewed September 2018,
https://www.reuters.com/finance/stocks/overview/API.AX
Yahoo finance, 2018, Ansell Limited. Viewed September 2018,
https://finance.yahoo.com/quote/ANN.AX/history?p=ANN.AX
Yahoo Finance, 2018, Australian pharmaceuticals limited. Viewed September 2018,
https://finance.yahoo.com/quote/API.AX/history?p=API.AX&.tsrc=fin-srch

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Appendix:
API ANN AORD
Date
Adj
Close Return
Adj
Close Return Adj Close Return
30/06/2015 1.427 22.46 5681.7
31/07/2015 1.459 2.20% 19.83 -11.69% 5222.1 -8.09%
31/08/2015 1.360 -6.77% 17.05 -13.99% 5058.6 -3.13%
30/09/2015 1.777 30.69% 18.30 7.31% 5288.6 4.55%
31/10/2015 1.840 3.54% 19.84 8.40% 5218.2 -1.33%
30/11/2015 1.755 -4.65% 19.49 -1.74% 5344.6 2.42%
31/12/2015 1.900 8.29% 18.23 -6.49% 5056.6 -5.39%
31/01/2016 1.768 -6.94% 15.64 -14.17% 4947.9 -2.15%
29/02/2016 1.777 0.51% 16.00 2.25% 5151.8 4.12%
31/03/2016 1.782 0.26% 18.44 15.27% 5316 3.19%
30/04/2016 1.695 -4.85% 17.68 -4.11% 5447.8 2.48%
31/05/2016 1.546 -8.81% 16.81 -4.92% 5310.4 -2.52%
30/06/2016 1.767 14.29% 17.92 6.60% 5644 6.28%
31/07/2016 1.634 -7.55% 20.78 15.95% 5529.4 -2.03%
31/08/2016 1.776 8.73% 21.55 3.70% 5525.2 -0.08%
30/09/2016 1.749 -1.55% 20.63 -4.28% 5402.4 -2.22%
31/10/2016 1.753 0.26% 21.48 4.15% 5502.4 1.85%
30/11/2016 1.932 10.21% 23.50 9.38% 5719.1 3.94%
31/12/2016 1.768 -8.50% 22.62 -3.76% 5675 -0.77%
31/01/2017 1.782 0.80% 20.25 -10.47% 5761 1.52%
28/02/2017 1.913 7.37% 23.17 14.45% 5903.8 2.48%
31/03/2017 2.092 9.31% 22.91 -1.12% 5947.6 0.74%
30/04/2017 1.674 -19.96% 22.49 -1.85% 5761.3 -3.13%
31/05/2017 1.814 8.37% 22.84 1.58% 5764 0.05%
30/06/2017 1.672 -7.87% 21.15 -7.42% 5773.9 0.17%
31/07/2017 1.395 -16.52% 21.01 -0.68% 5776.3 0.04%
31/08/2017 1.419 1.71% 21.75 3.53% 5744.9 -0.54%
30/09/2017 1.433 1.01% 23.43 7.72% 5976.4 4.03%
31/10/2017 1.433 0.00% 23.94 2.21% 6023.5 0.79%
30/11/2017 1.643 14.59% 23.72 -0.94% 6167.3 2.39%
31/12/2017 1.462 -10.98% 24.55 3.50% 6146.5 -0.34%
31/01/2018 1.491 2.00% 25.62 4.37% 6117.3 -0.48%
28/02/2018 1.462 -1.96% 24.92 -2.73% 5868.9 -4.06%
31/03/2018 1.321 -9.67% 25.73 3.25% 6071.6 3.45%
30/04/2018 1.321 0.00% 25.90 0.65% 6123.5 0.85%
31/05/2018 1.700 28.70% 26.83 3.58% 6289.7 2.71%
Average Return 1.04% 0.79% 0.34%
Correlation 0.38697 0.534812

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Beta 1.357411 1.314895
AUSTRALIAN PHARMACEUTICAL INDUSTRIES LTD (API) CashFlowFlag INCOME
STATEMENT
Fiscal year ends in August. AUD in thousands except per share
data. 2015-08 2016-08 2017-08
Revenue 3457400 3839987 4061200
Cost of revenue 3003613 3362053 3567817
Gross profit 453787 477934 493383
Operating expenses
Sales, General and administrative 460800 478328 489296
Other operating expenses 20381 26443 28624
Total operating expenses 481181 504771 517920
Operating income -27394 -26837 -24537
Interest Expense 14807 16727 12928
Other income (expense) 101656 112473 113877
Income before taxes 59455 68909 76412
Provision for income taxes 16329 17239 24041
Net income from continuing operations 43126 51670 52371
Net income 43126 51670 52371
Net income available to common shareholders 43126 51670 52371
Earnings per share
Basic 0.08 0.1 0.1
Diluted 0.08 0.1 0.1
Weighted average shares outstanding
Basic 488116 488911 489704
Diluted 495701 492095 494066
EBITDA 94643 112079 117964
AUSTRALIAN PHARMACEUTICAL INDUSTRIES LTD (API) CashFlowFlag BALANCE
SHEET
Fiscal year ends in August. AUD in thousands except per share
data. 2015-08 2016-08 2017-08
Assets
Current assets
Cash
Cash and cash equivalents 28047 25489 39776
Total cash 28047 25489 39776
Receivables 580933 678959 685630
Inventories 364206 413782 399344
Deferred income taxes 2426

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Prepaid expenses
Other current assets 18195 10736 -4010
Total current assets 993807 1128966 1120740
Non-current assets
Property, plant and equipment
Gross property, plant and equipment 226791 228080 230374
Accumulated Depreciation -124845 -127951 -135094
Net property, plant and equipment 101946 100129 95280
Equity and other investments
Goodwill 45979 46973 50019
Intangible assets 147714 143002 143640
Deferred income taxes 22722 19223 20210
Other long-term assets 30380 10882 21187
Total non-current assets 348741 320209 330336
Total assets 1342548 1449175 1451076
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 57021 1457 1608
Capital leases 1233 1521 1157
Accounts payable 609422 748749 751500
Deferred income taxes 13359 16899
Other current liabilities 110044 80546 79869
Total current liabilities 777720 845632 851033
Non-current liabilities
Long-term debt 37384 45992 28642
Capital leases 3229 2428 1192
Deferred taxes liabilities 364
Pensions and other benefits 5566 5690 4185
Other long-term liabilities 13247 12738 11414
Total non-current liabilities 59426 66848 45797
Total liabilities 837146 912480 896830
Stockholders' equity
Common stock 566461 566461 566461
Other Equity 43980 73283 92638
Retained earnings -104664 -104664 -104664
Accumulated other comprehensive income -375 1615 -189
Total stockholders' equity 505402 536695 554246
Total liabilities and stockholders' equity 1342548 1449175 1451076
AUSTRALIAN PHARMACEUTICAL INDUSTRIES LTD (API) Statement of CASH FLOW
Fiscal year ends in August. AUD in thousands except per share 2015- 2016-08 2017-08

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data. 08
Cash Flows From Operating Activities
Cash Flows From Investing Activities
Investments in property, plant, and equipment -8034 -14417 -12130
Property, plant, and equipment reductions 691 2115 513
Acquisitions, net 4361
Purchases of intangibles
-
22600 -5128 -16160
Other investing activities 84
Net cash used for investing activities
-
29859 -13069 -27777
Cash Flows From Financing Activities
Debt issued 1327196 1598000
Debt repayment -7155
-
1374147
-
1615198
Dividend paid
-
19525 -24430 -34286
Other financing activities
-
19057 -1455 -1601
Net cash provided by (used for) financing activities
-
45737 -72836 -53085
Effect of exchange rate changes 61 490 -333
Net change in cash
-
75535 -85415 -81195
Cash at beginning of period 23526 28047 25489
Cash at end of period
-
52009 -57368 -55706
Free Cash Flow
Capital expenditure
-
30634 -19545 -28290
Free cash flow 49422 63312 67192
ANSELL LTD (ANN) CashFlowFlag INCOME STATEMENT
Fiscal year ends in June. AUD in thousands except per share
data. 2015-06 2016-06 2017-06
Revenue
214205
7
211796
4
178692
1
Cost of revenue
124088
5
125585
8
108333
3
Gross profit 901172 862106 703588
Operating expenses
Research and development 15755 16698 1690
Sales, General and administrative 885547 811069 754160
Restructuring, merger and acquisition 13021

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Other operating expenses 33073 51710 58372
Total operating expenses 947396 879478 814223
Operating income -46224 -17371 -110634
Interest Expense 34766 35416 34191
Other income (expense) 372396 341637 346464
Income before taxes 291406 288850 201638
Provision for income taxes 45182 70832 44072
Other income 0 0
Net income from continuing operations 246224 218018 157566
Net income from discontinuing ops 37702
Other -2083 -3771 -3250
Net income 244141 214247 192018
Net income available to common shareholders 244141 214247 192018
Earnings per share
Basic 1.6 1.41 1.3
Diluted 1.58 1.41 1.29
Weighted average shares outstanding
Basic 153100 151400 147500
Diluted 154451 151400 149337
EBITDA 372266 375438 294202
ANSELL LTD (ANN) CashFlowFlag BALANCE SHEET
Fiscal year ends in June. AUD in thousands except per share
data. 2015-06 2016-06 2017-06
Assets
Current assets
Cash
Cash and cash equivalents 366406 367223 411596
Total cash 366406 367223 411596
Receivables 356510 354296 284061
Inventories 442188 434689 431487
Prepaid expenses
Other current assets 3516 -16159 251820
Total current assets
116862
0
114004
8
137896
5
Non-current assets
Property, plant and equipment
Gross property, plant and equipment 762891 816725 710218
Accumulated Depreciation -461849 -486803 -426937
Net property, plant and equipment 301042 329922 283281
Equity and other investments
Goodwill 111835 110342 106266

Running Head: Finance
20
9 0 3
Intangible assets 334766 347293 302132
Deferred income taxes 131771 122004 115055
Prepaid pension benefit
Other long-term assets 39714 41880 43682
Total non-current assets
192565
1
194451
9
180681
2
Total assets
309427
1
308456
8
318577
7
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 9245 6733 4940
Accounts payable 255729 269189 257150
Deferred income taxes 20443 26798 37702
Other current liabilities 143099 121061 171737
Total current liabilities 428516 423781 471529
Non-current liabilities
Long-term debt 955729 924589 931747
Deferred taxes liabilities 109896 120522 116875
Pensions and other benefits 42708 45381 35361
Minority interest 19271 21142 23141
Other long-term liabilities 38411 39591 32891
Total non-current liabilities
116601
6
115122
5
114001
6
Total liabilities
159453
1
157500
7
161154
4
Stockholders' equity
Common stock
160104
2
154443
8
148491
9
Other Equity 65885 56019 60712
Retained earnings -37109 84029 190978
Accumulated other comprehensive income -130078 -174926 -162376
Total stockholders' equity
149974
0
150956
1
157423
3
Total liabilities and stockholders' equity
309427
1
308456
8
318577
7
ANSELL LTD (ANN) Statement of CASH FLOW
Fiscal year ends in June. AUD in thousands except per share
data.
2015-
06
2016-
06
2017-
06
Cash Flows From Operating Activities
Cash Flows From Investing Activities
Investments in property, plant, and equipment - -90493 -66303

Running Head: Finance
21
10976
6
Property, plant, and equipment reductions 29297 2693 2730
Acquisitions, net
-
13958
3 55885 -72933
Sales/Maturities of investments 15104
Sales of intangibles
Other investing activities 0 0 -3770
Net cash used for investing activities
-
20494
8 -31915
-
14027
6
Cash Flows From Financing Activities
Debt issued
17096
4 60329 96464
Debt repayment
-
12083
3
-
10907
6 -64873
Common stock issued 651
Common stock repurchased
-
11863
7 -11310
Dividend paid -78776 -82413 -78913
Other financing activities -27734 -30030 -27691
Net cash provided by (used for) financing activities -55729
-
27982
8 -86323
Effect of exchange rate changes -54818 -12793 2600
Net change in cash
-
31549
5
-
32453
5
-
22399
9
Cash at beginning of period
42213
5
37893
9
35452
4
Cash at end of period
10664
1 54403
13052
5
Free Cash Flow
Capital expenditure
-
10976
6 -90493 -66303
Free cash flow
15000
0
22232
7
21476
9