The last time I stood before you was at the Company's Extraordinary General Meeting in April. At that meeting I talked about the Company's past, its performance and sales of various businesses. I am not proposing to go over that ground again today. It is well described in our new look Annual Report.

I indicated at that meeting that although we could not change the past, your Board was optimistic about the future. I outlined our objectives and a plan titled "Operation Full Potential".

The first objective was for the ongoing Ansell Healthcare business in financial year 2002 to exceed the previous year at the level of Earnings before Interest, Tax and Amortisation in US dollars. I am pleased to say this was achieved, with a 9.3% increase in EBITA to US$84 million, against the previous year's US$77 million. This, we feel, was a solid result in a year marred by September 11 and a significant downturn in the world economy.

You will note that we are quoting key financial information, both here today and in our Annual Report, in US$. This is because the US$ is the predominant global currency of our business transactions and it emphasises our transition to an international business. Our Annual Report does also include all key information in A$.

We are now well into the 2003 financial year, with a stated objective of achieving double digit EBITA growth over the 2002 financial year. I will comment on our progress a little later.

In terms of Operation Full Potential, I am pleased to inform you that it is in full swing and I can inform you that the program is moving in accordance with our original plan.

I indicated we were looking to a new strategy of moving "from Products to Solutions" and, under Operation Full Potential, we have introduced eight initiatives and a timetable for their implementation. We have refined the program, divided it into three waves and created sub-sets of the original eight initiatives to make it more workable. We have employed a small number of highly motivated well-qualified staff to really ensure the program gets off to a flying start. Each initiative has at least two senior executives as sponsors to oversee performance. Additionally, there are regular reports to the Board with both Stanley Gold and myself actively involved in overseeing the total program on behalf of the Board.

Your Chief Executive Officer Mr Harry Boon is driving this program and he will now up date you on progress:

Refer Harry Boon's Slides
View Presentation.

Thank you, Harry.

It is pleasing to note the progress made by Harry and his team. Make no mistake this Company is a powerhouse in the industries it operates in, holding number one or two ranking in every major product group and in every major trading region in which it competes. You are owners of a global leader in broad-based healthcare protection, with trusted and respected brands.

The year has also seen a number of other major changes and improvements. I would like to mention just a few:

• The continued development of innovative products. To this end and to ensure we continue to lead our field, we have created a new state of the art, Science and Technology centre at Shah Alam in Malaysia and have continued our strong links with a number of leading Universities and medical research institutions in the U.S. and Australia.
• A major restructuring is in progress, which will see the closure of a number of U.S. plants and the transfer of production to Asia and Mexico. We are well into this process, but it will take another six months for the transition to be completed.
• Ansell continues to have an outstanding safety record, of which we are exceedingly proud. For example, a number of our plants have been injury free for more than 3 years.
• There has been continued transition from powdered to non-powdered gloves in the surgeon's glove area. The significant advantage of powder free gloves is being recognised worldwide and is steadily gaining Government support. Ansell is one of only a handful of suppliers able to produce top quality powder free surgeon's gloves.
• Our ergonomic glove range, called "HyFlexä" continues to gain market share and customer acceptance. Its success comes from the protection it provides, while retaining excellent grip and near bare hand sensitivity and dexterity.
• In the Consumer products area, the Company's innovative range of styles and packaging lead the condom market, and we continue to introduce new and innovative household gloves to the market, such as the new foam lined glove with superior absorption and comfort.
• The Group balance sheet is not only clean, but reflects a robust gearing position and strong liquidity.

The Annual Report for 2002 details Other Investments that remain on our books. Progress is being made in exiting some of them while longer-term plans have been established for others. Substantial progress has also been made in finalising numerous issues that were carried over from the previous corporate structure. All known costs associated with these issues have been accounted for in the 2002 accounts.

I would like to comment on one specific issue. We reported in the Contingent Liabilities note to the Financial Statements in the Annual Report that the Company had provided environmental warranties, capped at US$40 million, to Exide Technologies, the purchaser of GNB Technologies, the Company's former battery business. I can now report that the period during which Exide could claim under the environmental warranties expired on 29 September, and no claims for environmental remediation have been received.

I would like to make a comment now on corporate governance matters.

Your Board, and in particular the Audit Committee of the Board, is cognisant of Regulatory, Shareholder and Community expectations with regard to corporate governance. It is the Board's stated intention to act in an ethical and transparent manner in all of its dealings and deliberations.

A question has been raised at other companies' meetings in relation to fees paid to auditors for "other services"

Ansell has made payments for other services to its auditors, KPMG, as reported in the full financial statements. Such payments relate predominantly to the sale of businesses (principally the sale of Pacific Automotive and Pacific Brands). They were for the preparation of accounts for the Sale Documents, the Completion Accounts at the sale date, and the final adjustments at settlement. KPMG's knowledge of our businesses for sale was invaluable during these major undertakings and their engagement to assist in the sale process was definitely to the company's benefit.

KPMG also advised on a small number of tax issues related to Fringe Benefit Taxes and Research and Development. KPMG is not the Group's principal tax adviser.

It is anticipated that, now the major divestment program is complete, "Other Services'' supplied by KPMG in the future will be minimal.

As we have previously reported, the results for the year have been heavily affected by write-offs associated with matters carried over from the previous company structure. This has resulted in a loss for the year attributable to shareholders, and increased accumulated losses on the balance sheet. Your Board is therefore unable to pay a final dividend for 2002. The Board is pleased, however, with the improved share price. We see this as the market's confirmation and support of our strategy going forward.

Outlook
I believe there is a general acceptance that the world economy is struggling, rather than moving forward confidently. Having said that, for the initial months of this financial year, the Company's results are in line with plan due to the solid work that has been completed on the previously announced restructuring. The business continues to ramp up, is ahead of last year, and is on track to achieve full year double digit growth in US$ at the Earnings Before Interest Tax and Amortisation line as committed to shareholders when we announced Operation Full Potential in April.

We have indicated previously and most recently in our Annual Report, that the Company is progressing the appointment of a further Director with a strong financial background and international business experience.

I am pleased to announce today that Mr L. Dale Crandall, a resident of California, has agreed to join the Board.

Mr Crandall has a strong background in accounting and finance having been with Price Waterhouse in the US for some 32 years, including a period as Group Managing Partner for Southern California, one of Price Waterhouse's largest professional practices in the U.S. Dale then moved into industry where he was most recently President and Chief Operating Officer of Kaiser Foundation Health Plan Inc. and Kaiser Foundation Hospitals in the US.

Mr Crandall is also a Director of the Union Bank of California and a Director of Dodge & Cox Mutual Funds. His appointment will take effect from 1 November.

I would also announce today that Ms Carolyn Kay, who joined the Board in May 2000, has announced her intention to resign with effect from 1 November. Although Carolyn's tenure on the Board has been relatively short her contribution has been significant, including a period as Chair of the Audit Committee. We thank Carolyn for her contribution and wish her well for the future.

I am also pleased to announce we have successfully completed two senior management appointments in Rustom Jilla, who has joined the Company as Chief Financial Officer, and Duane Dickson who joins us in the key role of Program Director, Operation Full Potential. Both executives are based in the U.S.

I would now like to mention the Company's plan for a voluntary unmarketable parcel share sale facility.

I indicated to shareholders at our General Meeting in April that the Company would conduct such a share sale facility. Shareholders whose holding is less than $500 in value at 4 October (this is represented by 73 shares) will by now have received a communication from the Company inviting those shareholders who wish to do so, to participate in the share sale facility.

The facility involves the Company picking up the cost of brokerage for those people who may wish to sell their small shareholdings, but find that the cost of brokerage etc. would otherwise have made the transaction too expensive.

We currently have almost 9000 shareholders with holdings of less than $500 in value. A reduction in the number of shareholders with unmarketable parcels will directly reduce our administration costs.

I would emphasise that this is a voluntary arrangement. Shareholders may elect to retain their small shareholdings if they wish. The sale facility is, however, only available to those whose holdings fall within the definition of an unmarketable parcel, being less than $500 in value. Further details can be obtained from the Company's Share Registry whose contact number can be found in the Annual Report.