CSL Annual Report 2023 | Quarterlytics

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FY2023 Annual Report · CSL

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Driven by Our Promise

CSL Limited Annual Report 2022/23

Contents

OFR 1 Chair and CEO message

2 Our Company

3 CSL’s Performance and Strategy

4 CSL’s Material Risks

5 CSL’s Future Prospects

6 Powered by Innovation

7 CSL’s People

8 Environment

9 Social

OFR 10 CSL’s Governance

11 Share Information

12 Key Performance Data Summary

13 Medical Glossary

OFR 14 Financial Performance

CSL Calendar
2023
15 August

Annual results and ﬁ nal dividend
announcement

11 September

Shares trade ex-dividend

12 September Record date for ﬁ nal dividend

4 October

11 October

Final dividend paid

Annual General Meeting

31 December Half Year ends

2024
13 February

11 March

12 March

3 April

30 June

13 August

Half Year results and interim dividend
announcement

Shares trade ex-dividend

Record date for interim dividend

Interim dividend paid

Full Year ends

Annual results and ﬁ nal dividend
announcement

9 September

Shares trade ex-dividend

10 September Record date for ﬁ nal dividend

2 October

Final dividend paid

30 October

Annual General Meeting

31 December Half Year ends

Annual General Meeting

The 2023 Annual General Meeting (AGM) of CSL Limited
(ABN 99 051 588 348) will be held on Wednesday,
11 October 2023 at 10am (Melbourne time) Clarendon
Auditorium, Melbourne Convention and Exhibition
Centre (MCEC), South Wharf, Melbourne 3000.

Find out more CSL.com

About this report

This Annual Report combines CSL’s ﬁ nancial and non-ﬁ nancial
performance in one comprehensive account, linking our sustainability
and strategic priorities to our business results.

CSL conducts a detailed sustainability materiality assessment every
two years, with our most recent assessment undertaken in early
2022. The prioritised results of our assessment are available within
this report and on CSL.com. In addition, this year, we compared
CSL’s materiality assessment with that of Vifor Pharma, and while
there were minor variations, an enterprise-wide assessment will
be conducted in ﬁ nancial year 2024. In addition to an independent
audit of our consolidated ﬁ nancial accounts, limited assurance on a
selection of corporate responsibility (CR) metrics has been provided
by Ernst & Young, and an assurance statement for non-ﬁ nancial
indicators can be found on page 81. Further, more detailed Group
and sustainability information, including CSL’s materiality assessment,
can be found on CSL.com (Sustainability).

Legal notice: This report is intended for global use.
This 2023 Annual Report is a summary of CSL’s operations and activities for the 12-month period ended 30 June 2023 and ﬁ nancial position as at 30 June 2023.
This report covers CSL’s global operations, including subsidiaries, unless otherwise noted. A reference to CSL, CSL Group, we, us and our and similar expressions
refer collectively to CSL Limited and its related bodies corporate.
Some statements about products, registered product indications or procedures may differ in certain countries. Therefore, always consult the country-speciﬁ c
product information, package leaﬂ ets or instructions for use. For more information, please contact a local CSL representative.
Brand names designated by a ® or a ™ throughout this publication are trademarks either owned by and/or licensed to CSL or its afﬁ liates. Not all brands
mentioned are used or registered as trademarks in all countries served by CSL.

Forward-looking statements
This report contains forward-looking statements including statements with respect to future company compliance and performance. This report also includes
forward-looking statements regarding climate change and other environmental and energy transition scenarios. While these forward-looking statements
reﬂ ect CSL’s expectations at the date of this report, they are not guarantees or predictions of future performance or statements of fact. These statements
involve known and unknown risks and uncertainties. Many factors could cause the Group’s actual results, performances or achievements to differ, possibly
materially, from those expressed in the forward-looking statements. These factors include changes in government and policy; actions of regulatory bodies
and other governmental authorities such as changes in taxation or regulation (or approvals under regulation); the effect of economic conditions; technological
developments in the healthcare ﬁ eld; advances in environmental protection processes; and geopolitical developments. There are also limitations with respect
to scenario analysis, and it is difﬁ cult to predict which, if any, of the scenarios might eventuate. Scenario analysis is not an indication of probable outcomes and
relies on assumptions that may or may not prove to be correct or eventuate.
Readers are cautioned not to place undue reliance on forward-looking statements.
Except as required by applicable laws or regulations, CSL does not undertake to publicly update or review any forward-looking statements. Past performance
cannot be relied on as a guide to future performance.

Non-IFRS ﬁ nancial information
References to AASB refer to the Australian Accounting Standards Board and IFRS refers to the International Financial Reporting Standards. There are references
to IFRS and non-IFRS ﬁ nancial information in this report. Non-IFRS ﬁ nancial measures are ﬁ nancial measures other than those deﬁ ned or speciﬁ ed under
any relevant accounting standard and may not be directly comparable with other companies’ information. Non-IFRS ﬁ nancial measures are used to enhance
the comparability of information between reporting periods and enable further insight and a different perspective into the ﬁ nancial performance. Non-IFRS
ﬁ nancial information should be considered in addition to, and is not intended to be a substitute for, IFRS ﬁ nancial information and measures. Non-IFRS ﬁ nancial
measures are not subject to audit or review.

CSL Limited ABN 99 051 588 348

Contents

OFR 1 Chair and CEO message

2 Our Company

8 Environment

9 Social

3 CSL’s Performance and Strategy

OFR 10 CSL’s Governance

4 CSL’s Material Risks

5 CSL’s Future Prospects

6 Powered by Innovation

7 CSL’s People

11 Share Information

12 Key Performance Data Summary

13 Medical Glossary

OFR 14 Financial Performance

CSL Calendar

2023

15 August

Annual results and ﬁ nal dividend

announcement

11 September

Shares trade ex-dividend

12 September Record date for ﬁ nal dividend

4 October

11 October

Final dividend paid

Annual General Meeting

31 December Half Year ends

14 February

Half Year results and interim dividend

2024

11 March

12 March

3 April

30 June

announcement

Shares trade ex-dividend

Record date for interim dividend

Interim dividend paid

Full Year ends

15 August

Annual proﬁ t and ﬁ nal dividend

announcement

9 September

Shares trade ex-dividend

10 September Record date for ﬁ nal dividend

2 October

Final dividend paid

9 October

Annual General Meeting

31 December Half Year ends

Annual General Meeting

The 2023 Annual General Meeting (AGM) of CSL Limited

(ABN 99 051 588 348) will be held on Wednesday,

11 October 2023 at 10am (Melbourne time) Clarendon

Auditorium, Melbourne Convention and Exhibition

Centre (MCEC), South Wharf, Melbourne 3000.

Find out more CSL.com

About this report

This Annual Report combines CSL’s fi nancial and non-fi nancial

performance in one comprehensive account, linking our sustainability

and strategic priorities to our business results.

CSL conducts a detailed sustainability materiality assessment every

two years, with our most recent assessment undertaken in early

2022. The prioritised results of our assessment are available within

this report and on CSL.com. In addition, this year, we compared

CSL’s materiality assessment with that of Vifor Pharma, and while

there were minor variations, an enterprise-wide assessment will

be conducted in fi nancial year 2024. In addition to an independent

audit of our consolidated fi nancial accounts, limited assurance on a

selection of corporate responsibility (CR) metrics has been provided

by Ernst & Young, and an assurance statement for non-fi nancial

indicators can be found on page 81. Further, more detailed Group

and sustainability information, including CSL’s materiality assessment,

can be found on CSL.com (Sustainability).

Legal notice: This report is intended for global use.

This 2023 Annual Report is a summary of CSL’s operations and activities for the 12-month period ended 30 June 2023 and fi nancial position as at 30 June 2023.

This report covers CSL’s global operations, including subsidiaries, unless otherwise noted. A reference to CSL, CSL Group, we, us and our and similar expressions

refer collectively to CSL Limited and its related bodies corporate.

Some statements about products, registered product indications or procedures may differ in certain countries. Therefore, always consult the country-specifi c

product information, package leafl ets or instructions for use. For more information, please contact a local CSL representative.

Brand names designated by a ® or a ™ throughout this publication are trademarks either owned by and/or licensed to CSL or its affi liates. Not all brands

mentioned are used or registered as trademarks in all countries served by CSL.

Forward-looking statements

This report contains forward-looking statements including statements with respect to future company compliance and performance. This report also includes

forward-looking statements regarding climate change and other environmental and energy transition scenarios. While these forward-looking statements

refl ect CSL’s expectations at the date of this report, they are not guarantees or predictions of future performance or statements of fact. These statements

involve known and unknown risks and uncertainties. Many factors could cause the Group’s actual results, performances or achievements to differ, possibly

materially, from those expressed in the forward-looking statements. These factors include changes in government and policy; actions of regulatory bodies

and other governmental authorities such as changes in taxation or regulation (or approvals under regulation); the effect of economic conditions; technological

developments in the healthcare fi eld; advances in environmental protection processes; and geopolitical developments. There are also limitations with respect

to scenario analysis, and it is diffi cult to predict which, if any, of the scenarios might eventuate. Scenario analysis is not an indication of probable outcomes and

relies on assumptions that may or may not prove to be correct or eventuate.

Readers are cautioned not to place undue reliance on forward-looking statements.

cannot be relied on as a guide to future performance.

Non-IFRS fi nancial information

Except as required by applicable laws or regulations, CSL does not undertake to publicly update or review any forward-looking statements. Past performance

References to AASB refer to the Australian Accounting Standards Board and IFRS refers to the International Financial Reporting Standards. There are references

to IFRS and non-IFRS fi nancial information in this report. Non-IFRS fi nancial measures are fi nancial measures other than those defi ned or specifi ed under

any relevant accounting standard and may not be directly comparable with other companies’ information. Non-IFRS fi nancial measures are used to enhance

the comparability of information between reporting periods and enable further insight and a different perspective into the fi nancial performance. Non-IFRS

fi nancial information should be considered in addition to, and is not intended to be a substitute for, IFRS fi nancial information and measures. Non-IFRS fi nancial

measures are not subject to audit or review.

CSL Limited ABN 99 051 588 348

Our Purpose

The people and science of CSL
save lives. CSL develops and
delivers innovative medicines
that help people with serious
and life-threatening conditions
live full lives and protect the
health of communities around
the world. The CSL Values guide
us in creating sustainable value
for our stakeholders.

CSL has delivered biotechnology
excellence for over a century.
Today, with the combined expertise
of CSL Behring, CSL Seqirus and
CSL Vifor, CSL’s offerings are more
diverse than ever to help patients
and people everywhere get the
treatments they need.

Isabelle is an 8 year old girl from Melbourne,
Australia who has received the CSL Seqirus
Afluria Quad™ flu vaccine.

CSL Limited Annual Report 2022/231 Chair and CEO message

US$2.61
billion in underlying
profit (NPATA)
attributable to CSL
Limited Shareholders

US$2.36
dividend per share
for 2023

Chair Message

Dear Fellow Shareholders,

I am pleased to share our results and operating review for
the 2022/23 financial year. In the following pages you will
see that CSL has once again performed strongly, with many
operational highlights around the world.

Our third objective is about creating social and economic
opportunities and enabling people to benefit as we grow
as an organisation, be it employees, suppliers, plasma donors
or research partners.

A Purpose-Driven Company

To begin, I’d like to share my view on why our organisation
exists. Your Board is grateful to have many long-term
shareholders who have followed our story for decades.
Our businesses, and certainly the science that underpins
them, can be quite complex. Our purpose though is simple.

The people and science of CSL save lives. We develop and
deliver innovative medicines that help people with serious
and life-threatening conditions live full lives, and protect the
health of communities around the world. The great thing
about our company is that in fulfilling this purpose, we create
value for a variety of stakeholders.

First and above all else, our most important task is to
contribute to a healthier and more productive society.
We do this by saving lives and protecting public health.

Our second aim is financial growth – delivering consistent,
profitable growth for our investors. It is our sustainable,
financial growth that provides the fuel for more innovation
and research. If done successfully, it is a great continuous
loop: quality research leads to more research, which has the
potential to create innovate therapies that benefits society.
CSL has been able to demonstrate this over many years.

Being able to create value in these ways is a great privilege,
but also a responsibility. Good governance is an essential part
of this responsibility.

Leadership Transition

The role of the Board is to guide our company in navigating
the complexities of the world to create value over the long
run. One aspect of this is talent: monitoring the composition
of the Board and management teams so that we have the
right skills to lead our company.

During the year, Paul Perreault retired from his role of
Chief Executive Officer (CEO) and Managing Director.
The Board and I wish to acknowledge the remarkable
leadership of Paul as CEO for 10 years. With Paul at the
helm, CSL delivered sustainable growth and innovation
with a patient-focused culture.

Following a thorough process conducted by the Board,
Dr Paul McKenzie was appointed as CEO and Managing
Director of CSL from 6 March 2023. Dr McKenzie’s detailed
work history can be found later in this report; he brings
more than 30 years of leadership experience in the global
biotechnology industry to CSL. He is a patient-focused leader
with a demonstrated track record of leading complex
organisations and delivering outstanding business results.
This includes his time at CSL as the Chief Operating Officer,
where he has been accountable for optimising CSL’s
operations as well as growing the CSL Seqirus, CSL Behring
and CSL Vifor businesses.

CSL Limited Annual Report 2022/23A Bright Future

I can assure you that CSL will remain true to the formula that
has largely driven our success to date. There is so much
potential to make a difference to people’s lives – so many
problems to solve and so much science to translate. CSL has
been very deliberate about targeting areas where we know
we can develop a competitive advantage. This will not
change; we will remain dedicated to our strategy.

But this should not be seen as a conflict with our growth
aspirations. The two goals are very much complementary:
our strategy is built for sustained, long-term growth.

Our confidence about this is built around a few key factors.
Firstly, the underlying demand for our products will remain
robust. It is an unfortunate reality that patients will continue
to be diagnosed with rare and serious diseases. We have a
high-quality range of safe and effective products that help
these patients, and will continue to do so well into the future.

Secondly, our research and development (R&D) pipeline
is constantly maintained and evaluated. The nature of our
business means we have to think decades ahead. We have
certainly done this, and a number of key prospective
treatments are nearing the commercialisation phase.
Importantly, we also have key early-stage options to take
their place.

And finally, as we grow we will benefit from the capital we
have reinvested back into the business. Our global network
is built for efficient, reliable supply that we aim to deliver with
some of the best margins in the sector. We will continue to
drive value across the organisation.

The Board and I believe that CSL is in a strong position and
we look forward to sharing our progress with shareholders.

Brian McNamee AO
Chair

Despite there being no changes to CSL’s non-executive
Board members this year, the composition of the Board
is an ever-present priority. We aim to have the right skills
and expertise to navigate our industry and the broader
macro environment. We believe we have a strong and
complementary dynamic that will continue our long
record of exceptional governance.

Bruce Brook will retire as a Director at this year’s Annual
General Meeting. I’d like to thank Bruce for his service over
the last 12 years. His guidance has been of immense value
to the Board and our shareholders. Alison Watkins will
become Chair of the Audit and Risk Management
Committee following Bruce’s retirement.

Our Evolving Footprint

As we grow and our operations become more complex,
your Board continues to prioritise meeting our employees
and spending time at our facilities around the world.

This year we visited our European operations, including
our manufacturing plants and research and development
facilities in Bern (Switzerland), St Gallen (Switzerland) and
Marburg (Germany).

We also spent a very productive week with our Australian
teams and inspected our Australian facilities. Underpinned
by the confidence we have in the long-term prospects for
our company, we have invested a significant amount of
capital in our Australian operations over the past few years.
This includes the recently completed Plasma Fractionation
Facility in Broadmeadows, and our new US$530-million
state-of-the-art cell-based vaccine manufacturing facility
in Tullamarine, which will be operational in 2026. These
investments will enhance our capacity to meet patient
needs into the future.

We also officially moved into our new Global Headquarters
and Centre for R&D in Melbourne in March. Located in the
heart of the city’s biomedical precinct, the building represents
the progress CSL has made during its journey from a small,
local company to the global biotech leader we are today.
This is a significant milestone not just for CSL, but for
Australia, and I look forward to the scientific and commercial
developments that will no doubt come from collaboration
in the precinct.

Environment and Sustainability

In August last year, we took the next step in our sustainability
strategy by announcing CSL Group carbon emission
reduction targets for the first time. The specific targets build
on our previous work by serving as a tangible, transparent
roadmap to decarbonising CSL’s operations by reducing the
company’s direct and indirect emissions footprint. You can
read more in the Environment section of this report, but I am
pleased to see the progress we’ve already made.

In addition to reducing carbon emissions, CSL is prioritising
integrating environmental considerations into key business
decisions; minimising end-to-end production of waste
through removal, reduction and recycling; and reducing
waste in our supply chain. This year, our teams will also be
focusing on advancing the social pillar of our sustainability
strategy. We will continue to be transparent with our
stakeholders, and will share more information as our
efforts progress.

More on CSL.com (Investors > Financial Results and Information)

CSL Limited Annual Report 2022/231 Chair and CEO Message

CEO Message

Dear Shareholders,

I am honoured to be writing to you as Chief Executive Officer
and Managing Director of CSL, a role in which I began in
March 2023.

Since joining CSL as Chief Operating Officer, I have been
accountable for optimising CSL’s operations as well as
growing the CSL Seqirus, CSL Behring and CSL Vifor businesses.
Along with the current management team, I have been
intimately involved in developing CSL’s 2030 Strategy – from
development to execution. My predecessor Paul Perreault
was an exceptional leader and oversaw a decade of great
success for CSL. I have inherited a highly motivated, values-
based team with a relentless focus on continuing our
purpose-driven journey of sustainable and profitable growth.

Building on Success

At CSL, given the essential nature of our work, the iconic
history of our company, and the world-class quality of our
team, I am truly humbled and, at the same time, extremely
excited to be your CEO.

For more than a century, we have been driven by our promise
to patients. This has distinguished CSL, defining our strong
position as one of the world’s leading biotech companies.
Our purpose, values, and promise remain steadfast and even
more relevant in today’s complex, and evolving world.

The formula that has enabled CSL to deliver value for a variety
of stakeholders throughout our history is proven. On page 23
you can read about 2030 Strategy. CSL will continue to follow
this strategy under my leadership, but as I look forward over
the medium term, I see the following five priorities:

1. Leverage our scale and execute on our commercial

portfolios and innovation agendas.

2. Evolve and differentiate our vaccine platform.

3. Unlock the value and growth within CSL Vifor.

4. Drive further improvement in CSL Behring margins.

5. Be an employer of choice and a strategic partner of choice.

Playing to Our Strengths

I believe CSL is uniquely equipped to contribute in the next
era of innovation and to make a lasting impact on communities
around the world. CSL’s many strengths position us well for
the future, as shown in the following examples.

• We deliver innovative life-saving medicines in over

100 countries.

• Every day, more than 342 plasma collection centres
enhance donor experiences and provide our critical
raw material to save lives.

• Our R&D pipeline has never been more robust or

more promising.

• Productivity and efficiency remain hallmarks and

competitive advantages for CSL. Our network strategy
is robust, and we are bringing on new capacity and
capabilities around the globe.

CSL Limited Annual Report 2022/23However, we did not stop innovating. Haemophilia B is caused
by a gene mutation, so we partnered with UniQure to
commercialise the world’s first gene therapy for adults with
haemophilia B, called HEMGENIX®. This year we received
approval for HEMGENIX® in the United States, Europe and the
UK. While there may be some patients who decide to switch
from IDELVION® to HEMGENIX®, we recognise that we need
to disrupt ourselves so we can make more breakthrough
therapies available to those who can benefit.

We must take innovation of all shapes and sizes and move
it to commercial reality. This is a strategic imperative for us,
and can generate speed, efficiency and value.

Outlook

I remain optimistic about the prospects of CSL. CSL is well
placed in markets where we operate. We have a strong
financial base, and we have the right leaders to guide our
next phase of growth. I can assure you that our people are
committed to our purpose and the great vision we share
for our company.

Paul McKenzie
CEO and Managing Director

The Board of Directors and management team are aligned
in our focus. We understand our strengths and are guided
by our 2030 Strategy, which defines the guardrails for
accelerating sustainable and profitable growth.

We unashamedly operate with long-term success in mind.
This involves making smart, bold choices today that seek
to benefit people and patients well into the future. This year,
several important capital investments were completed. As
I visited our sites around the world, I was impressed to see
these, and the teams responsible for their success, firsthand.

In August, we successfully closed the acquisition of CSL Vifor.
The integration into the CSL group is well advanced and
I want to recognise all the hard work that has gone into
this so far. While we have only owned CSL Vifor for a short
time we’re excited by the opportunity to grow the iron
franchise, to drive new indications, expand into new
geographies and improve access.

In Broadmeadows, Victoria, we opened our US$600-million
Plasma Fractionation Facility. This is the largest of its kind in
the Southern Hemisphere, and allows us to process up to
9.2 million plasma equivalent litres per annum, a nine-fold
increase on the previous capacity. In March, we opened its
sister facility in Marburg, Germany. Featuring identical
equipment and processes, we aim to leverage best practice
to further improve the efficiency of our network strategy.

Also in Marburg, after three years of construction, we opened
our new US$160-million R&D site. Covering around 40,000
square metres, the M600 centre provides space for up to 500
R&D employees, making it CSL’s largest R&D hub worldwide
and combining all disciplines under one roof. In March, we
opened the company’s new state-of-the-art vaccine R&D
centre near Boston, Massachusetts, United States. At this site,
we will aim to accelerate the development of next-generation
mRNA technology for vaccines and collaborate with local
partners within this world class research ecosystem.

Innovation Agenda

These new facilities are intended to underpin the next phase
of innovation for CSL. But this doesn’t happen without our
people who spend their days investigating new ways to serve
patients and public health. R&D, coupled with relentless and
disruptive innovation across all parts of the business, has
been vital to our success. CSL will continue to build a full and
innovative pipeline that has the potential to make a meaningful
difference to the lives of patients and to public health.

A key part of CSL’s innovation agenda is forming strategic
partnerships with others. This includes partnering with
Arcturus Therapeutics to develop and deliver next-generation
mRNA vaccines, and with UniQure on gene therapy.

At times, this means disrupting ourselves. In 2016, we
launched IDELVION®, a recombinant factor IX albumin
fusion protein, and it quickly became the standard of care
for thousands of patients suffering from haemophilia B.

CSL Limited Annual Report 2022/231 Chair and CEO Message

CSL’s Values

CSL’s strong commitment to its values has guided us for many
decades. Our Values are fundamental to our success – helping
us to save lives, protect the health of people and earn our
reputation as a trusted and reliable global leader. They are
at the core of how our employees interact with each other,
make decisions and solve problems.

PATIENT FOCUS

MAKE PEOPLE
AND PATIENTS
YOUR PASSION

INTEGRITY

WALK
YOUR TALK

INNOVATION

REACH
FOR THE
UNREACHABLE

COLLABORATION

ADVENTURE
TOGETHER

SUPERIOR
PERFORMANCE

MAKE
YOURSELF
PROUD

CSL Limited Annual Report 2022/23Patient
focus

Matthias’s story

Matthias works for CSL Vifor and is a packaging
team leader based in St Gallen, Switzerland.

He has been employed since 2016 and enjoys the
sense of purpose that comes from working for
a company that thinks about the future for both
patients and employees. Matthias likes the
atmosphere in the packaging team and the fact
that each day brings something new. He also feels
his opinions and ideas are valued when new
challenges confront his team.

CSL Limited Annual Report 2022/232 Our Company

CSL at a glance

40+

Countries of operations
around the world

32,000+

employees around
the world

US$13.3

billion in annual
revenue

2,000+

R&D employees across
10 countries

US$5.1

billion in R&D
investments in
the last 5 years
to advance
product pipeline

342

Plasma collection
centres across
China, Europe and
North America

CSL Limited Annual Report 2022/23Our businesses

CSL Behring is a global biotherapeutics leader driven by CSL’s promise to save lives. Focused
on serving patients’ needs by using the latest technologies, CSL Behring discovers, develops
and delivers innovative therapies for people living with conditions in the immunology,
haematology, cardiovascular and metabolic, respiratory, and transplant therapeutic areas.
CSL Behring uses three strategic scientific platforms of plasma fractionation, recombinant
protein technology, and cell and gene therapy to support continued innovation and
continually refine ways in which products can address unmet medical needs and help
patients lead full lives.

CSL Behring operates CSL Plasma, one of the world’s largest plasma collection networks.

As one of the leading influenza vaccine providers in the world, CSL Seqirus is a major
contributor to the prevention of influenza globally and a transcontinental partner in
pandemic preparedness.

CSL Seqirus operates state-of-the-art production facilities in the United States, the UK and
Australia and uses both egg-based and cell-based manufacturing technologies as well as
a proprietary adjuvant. It has leading research and development (R&D) capabilities, a broad
and differentiated product portfolio and commercial operations in more than 20 countries.

CSL Vifor is a global partner of choice for pharmaceuticals and innovative, leading therapies
in iron deficiency and nephrology. CSL Vifor specialises in strategic global partnering,
in-licensing and developing, manufacturing and marketing pharmaceutical products for
precision healthcare, aiming to help patients around the world lead better, healthier lives.
Headquartered in St Gallen, Switzerland, CSL Vifor also includes the joint company Vifor
Fresenius Medical Care Renal Pharma (with Fresenius Medical Care).

CSL Limited Annual Report 2022/232 Our Company

CSL’s R&D Pipeline

CSL’s world-class R&D organisation continues to advance
as a biotechnology leader by delivering high-quality
science and technologies developed by our own high-
calibre scientists and innovative collaborations. CSL R&D
uses its expertise in CSL’s strategic platforms – plasma
protein technology; recombinant protein technology; cell
and gene therapy; and vaccines technology. This means
CSL can develop and deliver innovative medicines and
vaccines that address unmet medical needs, help prevent
infectious disease and protect public health, and help
people lead full lives.

CSL’s strong R&D pipeline includes potential new
treatments that use these platforms and align with
its leading-edge scientific expertise and commercial
capabilities across CSL’s six therapeutic areas: immunology;
haematology; cardiovascular and metabolic; respiratory;
transplant; and vaccines. The addition of CSL Vifor allows
the R&D team to build on a heritage and expertise in iron
deficiency therapy and grow CSL’s presence in nephrology,
with a focus on dialysis and rare disease.

In 2022/23 CSL invested US$1.2 billion* in R&D across
its three businesses. Looking towards 2030, R&D
continues to strive to deliver on the current portfolio
of prospective medicines and vaccines and build a full
and innovative pipeline that has the potential to make
a meaningful difference to the lives of patients and to
public health. This pipeline is intended and expected to
contribute new revenue streams well into future decades.

* Limited assurance by Ernst & Young

CSL Limited Annual Report 2022/23Global Research and Development Pipeline 2022/23

Immunology

Clinical

Registration

Post-Launch

HAEGARDA®/BERINERT® (C1 Esterase Inhibitor SC & IV) Hereditary Angioedema
HIZENTRA® (20% subcutaneous Ig) Multiple Indications
PRIVIGEN® (10% intravenous Ig) Multiple Indications
Garadacimab (Anti-FXIIa mAb) Hereditary Angioedema
HIZENTRA® (20% subcutaneous Ig) Dermatomyositis
HIZENTRA® (20% subcutaneous Ig) Systemic Sclerosis
Anumigilumab (Anti-G-CSFR mAb) Hidradenitis Suppurativa
CSL730 (Recombinant Trivalent Human IgG1 Fc Multimer) Multiple Indications*†

Haematology

Clinical

Registration

Post-Launch

AFSTYLA® (Recombinant FVIII) Haemophilia A
IDELVION® (Recombinant FIX-FP) Haemophilia B
HEMGENIX® (Recombinant adeno-associated viral vector with codon-optimized Padua
derivative of Human FIX cDNA) Haemophilia B*
KCENTRA® (Prothrombin Complex Concentrate) Trauma
VAMIFEPORT® (Ferroportin inhibitor) Sickle Cell Disease
CSL301 (α2 Anti-Plasmin mAb) Sub-acute Pulmonary Embolism*
CSL889 (Hemopexin) Sickle Cell Disease

Respiratory

Clinical

Registration

Post-Launch

ZEMAIRA®/RESPREEZA® (Alpha 1 Antitrypsin) AAT Deficiency
Garadacimab (Anti-FXIIa mAb) Interstitial Lung Disease/Idiopathic Pulmonary Fibrosis
Trabikibart (Anti-Beta Common mAb) Asthma
CSL787 (Nebulised Ig) Non-Cystic Fibrosis Bronchiectasis

Cardiovascular and Metabolic

Clinical

Registration

Post-Launch

CSL112 Apolipoprotein A-I (human) Acute Myocardial Infarction
Clazakizumab (Anti-IL-6 mAb) End Stage Kidney Disease

Transplant

Clinical

Registration

Post-Launch

Clazakizumab (Anti-IL-6 mAb) Chronic Active Antibody-Mediated Rejection
CSL964 (Alpha 1 Antitrypsin) Prevention of Acute Graft-versus-Host Disease
CSL964 (Alpha 1 Antitrypsin) Treatment of Acute Graft-versus-Host Disease*

Vaccines

Clinical

Registration

Post-Launch

AUDENZ™ (Adjuvanted Cell-based Pandemic Vaccine) Influenza A (H5N1)
FLUAD® (Adjuvanted Trivalent Vaccine) Influenza
FLUAD® (Adjuvanted Quadrivalent Vaccine) Influenza
FLUCELVAX® (Quadrivalent Cell-based Vaccine) Influenza
FOCLIVIA®/AFLUNOV® (Adjuvanted Egg-based Pandemic Vaccine) Influenza A (H5N1)
ARCT-154 (COVID-19 Vaccine)*
Adjuvanted Quadrivalent Cell Culture Vaccine Influenza (aQIVc)

CSL Vifor

Clinical

Registration

Post-Launch

FERINJECT® (Ferric carboxymaltose) Iron Deficiency
KORSUVA®/KAPRUVIA® (Kappa Opioid Receptor Agonist)
Chronic Kidney Disease-associated Pruritus 1
RAYALDEE® (Oral ext. release Calcifediol) Secondary Hyperparathyroidism 2
TAVNEOS® (Oral C5a Receptor Inhibitor) Anti-Neutrophil Cytoplasmic Antibody
(ANCA)-Associated Vasculitis 3
VELPHORO® (Sucroferric Oxyhydroxide) Serum Phosphorous control in Chronic Kidney Disease
VELTASSA® (Oral Potassium Binder) Hyperkalemia
INJECTAFER® (Ferric carboxymaltose) Heart Failure in Iron Deficiency
Sparsentan (Dual ETA & AT1 antagonist) IgA Nephropathy 4
Sparsentan (Dual ETA & AT1 antagonist) Focal Segmental Glomerulosclerosis4
SNF472 (Vascular Calcification Inhibitor) Calcific Uraemic Arteriolopathy
in End Stage Kidney Disease†
SNF472 (Vascular Calcification Inhibitor) Peripheral Artery Disease in End Stage Kidney Disease
INS-3001 (Calcification Inhibitor) Peripheral Artery Disease, Aortic Valve Stenosis

Outlicensed Programs

Clinical

Registration

Post-Launch

Eblasakimab (Anti-IL-13R mAb) Atopic Dermatitis
Mavrilimumab (Anti-GM-CSFR mAb) Giant Cell Arteritis, Rheumatoid Arthritis 5
LASN01 (Anti-IL-11 mAb) Idiopathic Pulmonary Fibrosis, Thyroid Eye Disease

*Partnered Project. †Project discontinued.

1. KORSUVA®/KAPRUVIA® is a registered trademark of Cara Therapeutics, Inc.; 2. RAYALDEE® is a registered trademark of OPKO Health, Inc.; 3. TAVNEOS® is a registered
trademark of ChemoCentryx Inc.; 4. Sparsentan is licensed from Travere Therapeutics, Inc.; 5. Mavrilimumab Phase II studies in GCA & RA complete. Kiniksa evaluating
development in rare cardiovascular diseases. CSL’s pipeline also includes Life Cycle Management projects that address regulatory post-marketing commitments,
pathogen safety, capacity expansions, yield improvements, and new packages and sizes.

CSL Limited Annual Report 2022/232 Our Company

CSL’s Product Portfolio and Therapeutic Areas

Therapeutic
Areas

Immunology

Haematology

Respiratory

Cardiovascular
and metabolic

Transplant

Vaccines

Platform

Plasma Protein
Technology

Recombinant
Technology

Cell and
Gene Therapy

Adjuvant

Cell-based

Egg-based

mRNA

CSL Behring

CSL Behring discovers, develops and delivers the broadest range of products in the industry for treating rare
and serious diseases such as haemophilia, von Willebrand disease (vWD), primary and secondary immune
deficiencies (PID/SID), chronic inflammatory demyelinating polyneuropathy (CIDP), hereditary angioedema
(HAE) and inherited respiratory disease. CSL Behring’s products are also used in cardiac surgery, for burns
treatment and for urgent warfarin reversal. We strive to meet patients’ needs using the latest recombinant and
plasma-derived technologies as well as gene therapy approaches.

Immunology

CSL’s world leading immunoglobulin franchise is the cornerstone of the immunology therapeutic area and
is focused on developing and delivering trusted products and technologies to serve patients with a range of
serious immunologic and neurologic diseases, including primary and secondary immunodeficiencies (PID/
SID), chronic inflammatory demyelinating polyneuropathy (CIDP) and hereditary angioedema (HAE). Key
CSL Behring products on the market include PRIVIGEN®, HIZENTRA®, BERINERT®, HAEGARDA® and a range
of hyperimmunes.

Building on CSL’s long history of providing patients with immunoglobulin products, it continues to optimise
the patient experience by developing more convenient and flexible ways to dose and administer existing
immunoglobulin products. Key recombinant assets are also progressing in early development to treat
underserved immune-mediated diseases. CSL continues to build on its strong 40-year legacy in HAE,
working to expand on current medicines to provide optimal treatments for the full range of HAE patients.
Garadacimab, CSL’s first-in-class monoclonal antibody targeting activated Factor XII (FXIIa), is being
developed as a prospective long-term prophylactic treatment for patients with HAE.

Haematology

CSL remains focused on easing the burden of disease and improving the lives of patients with rare bleeding
disorders. Major advances have been made in haemophilia A and B in recent years with the launch of novel
recombinant coagulation factor medicines and through the acquisition of exclusive global licence rights to
commercialise HEMGENIX® (etranacogene dezaparvovec), an AAV5 (adeno-associated virus) gene therapy
for the treatment of haemophilia B, which has been approved in the United States, Europe and the UK.
Other key CSL Behring products on the market include IDELVION®, AFSTYLA®, HUMATE P®/HAEMATE®,
BERIPLEX®/KCENTRA®, RIASTAP®/HEMOCOMPLETTAN®, VONCENTO®/BIOSTATE® and albumin.

Additionally, exciting R&D efforts are underway to explore new indications in benign haematology as well
as novel therapeutics in haemostasis and thrombosis. This includes initiating an important global Phase III
study to evaluate the early administration of KCENTRA® (4-factor prothrombin complex concentrate)
on survival in trauma patients suffering life-threatening bleeding, and a Phase II study under a licensing
agreement with Translational Sciences using CSL301 (α2 anti-plasmin), a first-in-class, chimeric monoclonal
antibody as thrombolytic treatment in adults with acute sub-massive pulmonary embolism.

Respiratory

Respiratory diseases impose an enormous burden on patients and society and are a leading cause of death
and disability worldwide.

In addition to CSL’s existing product, ZEMAIRA®/RESPREEZA® for patients with alpha-1 antitrypsin deficiency,
CSL is investigating potential new clinical treatments for respiratory diseases using novel recombinant
monoclonal antibodies and plasma-derived therapies to address this need. Trabikibart, an anti-beta common
monoclonal antibody, is being investigated for the treatment of severe uncontrolled asthma and severe
chronic obstructive pulmonary disease (COPD). In idiopathic pulmonary fibrosis (IPF), a severe debilitating
disease, a clinical development program has started with garadacimab, the first of CSL’s compounds being
explored in this disease area. CSL787, a plasma-derived, inhaled immunoglobulin is being investigated for
patients with bronchiectasis.

1212

CSL Limited Annual Report 2022/23Cardiovascular and metabolic

CSL is focused on improving and extending the lives of patients with cardiovascular and metabolic diseases.
Many patients with cardiovascular disease also have some degree of renal impairment and CSL recognises
the critical need to address the unique challenges faced by this patient population.

CSL112, apolipoprotein A-I (human), is being developed to reduce the risk of recurrent cardiovascular events
during the 90-day high-risk period following a heart attack, the period when the majority of first-year
recurrent cardiovascular events occur. If successful, CSL112 will be the first therapy to demonstrate
cardiovascular risk reduction through the novel apoA-I mechanism and has the potential to transform how
acute myocardial infarction patients at high risk of recurrent cardiovascular events are treated. In addition,
clazakizumab, first-in-class anti-interleukin-6 (anti-IL-6) monoclonal antibody is being developed for the
reduction of major adverse cardiovascular events (MACE) in End Stage Kidney Disease (ESKD) dialysis patients.

Transplant

While advances in transplantation techniques and therapies have markedly improved short-term patient
survival, transplant rejection remains one of the greatest limitations to long-term graft and patient survival
for both solid organ and haematopoietic stem cell transplant recipients. CSL is focused on developing
therapies to address transplant rejection and while current solid organ focus lies in kidney transplants, this
vision encompasses a broader scope to help treat patients undergoing various solid organ transplantations.

In kidney transplant recipients, antibody-mediated rejection (AMR) is a leading cause of allograft loss, and
there is significant unmet need for effective treatments. Clazakizumab, our anti-IL-6 monoclonal antibody, is
currently being investigated in a Phase III clinical trial (IMAGINE) for the potential treatment of chronic active
antibody-mediated rejection. In haematopoietic stem cell transplantation, acute graft-versus-host disease
(GvHD) is a life-threatening type of rejection where the donor cells attack the recipient; it is a leading cause
of mortality and morbidity following transplant. There is a significant unmet need for more effective, less
toxic therapies for GvHD. We are investigating alpha-1 antitrypsin (AAT, ZEMAIRA®) for the prevention and
treatment of acute GvHD in two Phase III studies.

CSL Seqirus

CSL Seqirus’ broad range of influenza vaccines addresses the needs of different populations around the world.
In Australia and New Zealand, CSL Seqirus is also a leading provider of in-licensed vaccines and specialty
pharmaceuticals. It is also the world’s only supplier of a unique range of products of national significance
for the Australian Government, including Q fever vaccine and antivenoms for venomous creatures in Australia
and other Pacific countries.

Vaccines

Developing new and better vaccines across all age groups in expanded markets is a strategic priority for
CSL Seqirus. CSL Seqirus is focused on developing differentiated vaccines protecting against respiratory
viruses, influenza and COVID-19 utilising innovative technologies, including further advancing our cell-based
manufacturing technology, our MF59® adjuvant, and developing the next-generation messenger RNA (mRNA)
platform, targeting seasonal and pandemic potential viruses.

Through these technologies, CSL Seqirus aims to enhance the immune response of those particularly
vulnerable to influenza and COVID-19, such as children and older adults. The portfolio includes a number
of key investigational products, including a higher dose adjuvanted cell-based influenza vaccine (aQIVc),
multiple monovalent and quadrivalent influenza candidates using the sa-mRNA technology and a COVID-19
seasonal booster. In addition, our collaboration with sa-mRNA-focused Arcturus Therapeutics complements
our long-term strategy in vaccines with benefits including faster clinical development with higher probability
of success; application to additional pathogens including those with pandemic potential; access to an
established manufacturing network; and access to lipid nanoparticles and a lipid library with application
across vaccines. Key CSL Seqirus influenza vaccines on the market include AGRIPPAL®, AFLURIA®, FLUAD®,
and FLUCELVAX® for seasonal use, and AFLUNOV® for zoonotic use.

As a trusted partner to more than 30 countries throughout the world, CSL Seqirus is the leader in
preparedness for pandemic influenza, and is constantly working to expand its offerings to new countries
and to address emerging pandemic threats. Key approved CSL Seqirus pandemic vaccines include PANVAX®,
FOCLIVIA® and AUDENZ®.

In-licensed vaccines and pharmaceuticals

Key CSL Seqirus in-licensed products on the market in Australia and New Zealand include CATIONORM®,
GARDASIL-9®, IKERVIS®, PALEXIA®, REAGILA®, RYALTRIS®, XADAGO® and ZOSTAVAX®.

CSL Limited Annual Report 2022/232 Our Company

CSL Vifor

Iron deficiency and nephrological disorders pose significant unmet medical needs globally. The CSL Vifor
portfolio provides a strong and rapidly growing presence in nephrology, particularly in patients requiring
dialysis. CSL Vifor is committed to launching the next generation of therapies as it endeavours to truly address
the full spectrum of kidney disease, with a focus on dialysis and rare disease. This is supported by a founding
heritage and expertise in iron deficiency therapy, helping to support a broad range of patients.

The acquisition of Vifor Pharma in August 2022 has enhanced CSL’s product portfolio, complementing
existing products and offering a wider range of treatments for conditions such as chronic kidney disease
(CKD), anaemia and renal disorders. Key CSL Vifor products on the market include TAVNEOS®, KORSUVA®/
KAPRUVIA®, MIRCERA®, RETACRIT®, VELTASSA®, RAYALDEE®, VELPHORO® and our iron products
FERINJECT®/INJECTAFER®, VENOFER® and MALTOFER®.

With the combination of resources, research capabilities, scientific insights and CSL’s patient-centred
approach, CSL can develop innovative therapies, accelerate the development of novel treatments, improve
patient outcomes, and contribute to advancements in these specialised fields. This expanded portfolio
positions CSL to address a wider range of unmet needs in patients with iron and nephrological disorders
and should support a more comprehensive range of options for patients with improved access to
effective treatments leading to better disease management, enhanced quality of life and improved
patient care overall.

In June, we initiated further activities to progress the integration of the CSL Vifor R&D teams and programs
into the overall CSL R&D organisation and processes. This includes incorporating them into our Therapeutic
Areas and Project Operating Model, as well as aligning them with our R&D governance framework.
More information about the CSL Vifor R&D integration will be communicated at our annual R&D update
to the market.

New products to market
CSL continues to broaden the geography and use of its
medicines for rare and specialty diseases across the globe within
the immunology and haematology therapeutic areas as well
as in nephrology and iron deficiencies, and the use of vaccines
to help prevent infectious disease and protect public health.

Within the immunology portfolio, regulatory indication
expansion and new registrations are primarily focused
on subcutaneous immunoglobulin, HIZENTRA®, and our
human C1-esterase inhibitor, BERINERT®, each with four
new registrations including, importantly, BERINERT® S.C.
Injection 2000 in Japan for the treatment of HAE. The new
HIZENTRA® registrations supported indications for primary
immunodeficiency (PID), a chronic disorder in which part of
the body’s immune system is missing or malfunctioning, and
chronic inflammatory demyelinating polyneuropathy (CIDP),
a chronically progressive, rare autoimmune disorder that
affects the peripheral nerves and may cause permanent
nerve damage. With CIDP, the myelin sheath, or the
protective covering of the nerves, is damaged, which may
result in numbness or tingling, muscle weakness, fatigue
and other symptoms, which worsen over time. Additionally,
indication expansion was approved for HIZENTRA® for
secondary immunodeficiency (SID) in two countries. SID
is similar to primary immunodeficiency (PID); however,
SID occurs when the immune system is compromised
as a result of disease or due to an environmental factor
(e.g., chemotherapy, disease complication).

In CSL’s haematology therapeutic area, there is continued focus
on the expansion of the current portfolio as well as the first
registrations of HEMGENIX®, etranacogene dezaparvovec,
a one-time gene therapy for the treatment of adults with
haemophilia B. Five new registrations were achieved for

our recombinant factor VIII product, AFSTYLA®, which is used
to control and prevent bleeding episodes in people with
haemophilia A. Four new registrations were achieved for our
human coagulation factor VIII/vWF, HAEMATE® and seven
for human albumin. One new registration was achieved for
BERIPLEX®, our human prothrombin complex concentrate and
one for BERIPLAST® P, our combined human fibrinogen, factor
XIII and bovine aprotinin product. Four new registrations were
achieved for HAEMOCOMPLETTAN® P, our human fibrinogen
concentrate. Three new registrations and expansions were
achieved for IDELVION®, our recombinant factor IX albumin
fusion protein (rFIX-FP) which is used to control and prevent
bleeding episodes in people with haemophilia B.

For our CSL Seqirus business, FLUAD® QUADRIVALENT,
our adjuvanted influenza vaccine, was authorised for persons
65 years and older in Taiwan, Brazil and South Korea.

For CSL Vifor, there were seven new registrations for
KORSUVA® (difelikefalin), for the treatment of moderate-to-
severe pruritus associated with chronic kidney disease in
adult patients on haemodialysis. Four new registrations were
achieved for TAVNEOS® (avacopan) to treat adults with severe
active anti-neutrophil cytoplasmic autoantibody (ANCA)-
associated vasculitis. For VELPHORO®, there were two new
registrations for the control of serum phosphorus levels in
adults with chronic kidney disease on haemodialysis or
peritoneal dialysis. There was one new registration for
VELTASSA® (patiromer sorbitex calcium) for the treatment of
high blood potassium. There was one new registration, and
two label expansions for FERINJECT® (ferric carboxymaltose)
and one indication expansion for INJECTAFER®, ferric
carboxymaltose injection, for the treatment of iron deficiency
in patients with heart failure.

1414

CSL Limited Annual Report 2022/23Product Registrations and Indications 2022/23*

Immunology

Focus and deliver enhanced patient convenience, plasma yield improvements, expanded labels and indications,
new formulation science and recombinant therapies for underserved immune-mediated conditions

Product

Type

Country/Region

BERINERT® C1-Esterase Inhibitor (Human) Intravenous or Subcutaneous1

Japan (2000 IU); Qatar & United Arab Emirates
(500, 2000, 3000 IU); Argentina (2000, 3000 IU)

HIZENTRA® Immune Globulin Subcutaneous (Human) 20% Liquid

Saudi Arabia, Qatar, United Arab Emirates, Oman

HIZENTRA® Immune Globulin Subcutaneous (Human) 20% Liquid

Switzerland, Russia (SID)

Haematology

Maximise the value and performance of our new and existing therapies and discover and develop new
innovative therapies in benign (non-malignant) haematology

AFSTYLA® Coagulation Factor VIII (Recombinant)

Albumin (human) 20% Behring, low salt

ALBURX® Human Albumin

Turkey (500, 1000, 2000 IU); Kuwait & Oman
(250, 500, 1000, 2000, 3000 IU); Chile (250, 500,
1000, 1500, 2000, 3000 IU); Brunei (250, 500 IU)

NR Qatar, United Arab Emirates, Morocco

Costa Rica, El Salvador, Guatemala, Trinidad
and Tobago

BERIPLAST® P Combi-Set Human thrombin, Aprotinin, Human
Fibrinogen, Calcium chloride

Singapore

BERIPLEX® Prothrombin Complex (Human)

HAEMATE® Coagulation Factor VIII/vWF (Human)

Trinidad and Tobago

Saudi Arabia (250, 500 IU); United Arab
Emirates, Bulgaria & Algeria (250, 500, 1000 IU)

HAEMOCOMPLETTAN® P Fibrinogen Concentrate (Human)

NR United Arab Emirates, Malaysia, Morocco, Oman

HEMGENIX® Etranacogene dezaparvovec

NR United States, European Union, Great Britain

IDELVION® Coagulation Factor IX (Recombinant) Albumin Fusion Protein

NR New Zealand (3500 IU), Turkey (250, 500, 1000, 2000

IDELVION® Coagulation Factor IX (Recombinant) Albumin Fusion Protein

IU); Kuwait (250, 500, 1000, 2000, 3000 IU)

European Union, Great Britain & Switzerland (PUP);
South Korea (21d dosing)

Vaccines

Develop products for the prevention of infectious diseases

FLUAD® QUADRIVALENT2 Influenza Vaccine, Adjuvanted
(surface antigen, inactivated)

Taiwan, Brazil, South Korea (for the prevention
of influenza in persons aged 65 yrs and older)

CSL Vifor

Focus and deliver products for the treatment of iron deficiency, dialysis, nephrology & rare disease

FERINJECT® Ferric carboxymaltose

INJECTAFER® Ferric carboxymaltose

KORSUVA® Difelikefalin3,4

TAVNEOS® Avacopan5

VELPHORO® Sucroferric oxyhydroxide

VELTASSA® Patiromer sorbitex calcium

China

European Union, Great Britain (for the treatment
of iron deficiency in patients aged 1-13 years)

NI United States (for the treatment of iron deficiency

in patients with heart failure)

Switzerland, Canada, Australia, Singapore, United
Arab Emirates, Kuwait, Israel

Australia, Switzerland, United Arab Emirates, Kuwait

China, Thailand

Russia

* First-time registrations or registered indications for CSL products in the listed countries/regions over the reporting period.
1 In some markets, subcutaneous version of C1-esterase inhibitor is marketed as HAEGARDA®.
2 In some markets, FLUAD® QUADRIVALENT is marketed as FLUAD® QUAD and FLUAD® TETRA.
3 In some markets, KORSUVA® is marketed as KAPRUVIA®.
4 KORSUVA®/KAPRUVIA® is a registered trademark of Cara Therapeutics, Inc.
5 TAVNEOS® is a registered trademark of ChemoCentryx, Inc.
IU = International Unit, NI = New Indication, NR = New Registration, PUP = Previously Untreated Patients, SID = Secondary Immunodeficiency.

CSL Limited Annual Report 2022/232 Our Company

Our operating review

CSL Behring

Total revenue was US$9,290 million, up 12%1 when compared
to the prior comparable period.

This growth was achieved against a backdrop of reduced rates
of immunisation and highlights the strength of CSL Seqirus’
strategy and its high value, differentiated product portfolio.

Immunoglobulin (Ig) product sales of US$4,675 million,
increased 21%1 with strong growth recorded across all
geographies as global supply recovered strongly.

PRIVIGEN® (Immune Globulin Intravenous (Human), 10%
Liquid) sales delivered strong growth of 29%1 as demand
continues to recover from the pandemic with patient
diagnosis and new patient starts steadily increasing.

HIZENTRA® (Immune Globulin Subcutaneous (Human),
20% Liquid) sales were up 12%1 as patient diagnosis rates
continue to improve and new patients emerge.

Underlying demand for Ig continues to be strong due to
significant patient needs in core indications – namely Primary
Immune Deficiency, Secondary Immune Deficiency and
Chronic Inflammatory Demyelinating Polyneuropathy (CIDP).

Albumin sales of US$1,109 million, were up 11%1. Sales in
China were up strongly as COVID restrictions eased. Solid
growth was also recorded in the United States and Europe
as supply improved.

Haemophilia product sales of US$1,193 million increased 8%1.

IDELVION®, CSL Behring’s novel long-acting recombinant
factor IX product, achieved strong growth of 13%1 as patient
interactions with health care providers increased post COVID.

HEMGENIX®, the first and only gene therapy for haemophilia B
was successfully launched in the United States.

The haemophilia A market continued to be competitive
resulting in a modest increase in sales for AFSTYLA®, a novel
recombinant factor VIII product, and a decline in sales for
plasma-derived products.

Specialty product sales of US$1,831 million, up 6%1 led
predominately by demand for KCENTRA® and ZEMAIRA®.

KCENTRA® (4 factor prothrombin complex concentrate) recorded
sales growth of 10%1, as social mobility increased post COVID.

ZEMAIRA® Alpha1-Proteinase Inhibitor (Human) sales were
up 24%1 as supply returned.

Plasma Collections

Plasma collections were robust with plasma volumes up 31%
and now at record levels.

Improved social mobility post COVID, targeted marketing
campaigns and enhanced digital initiatives to attract donors all
contributed to this unprecedented growth.

The cost of collecting plasma, which includes donor
compensation and labour, declined ~14% over the previous
year end and ~17% down from the peak in March 2022.

The significant increase in plasma supply underpins the
company’s ability to manufacture plasma products and
enables CSL to meet the underlying patient demand for core
plasma products.

CSL Seqirus

Total revenue of US$2,031 million, was up 9%1 driven by growth
in seasonal influenza vaccines, in particular FLUCELVAX® which
increased 30%1.

During the period:

• A licence agreement was signed with Arcturus Therapeutics

for next-generation mRNA vaccine technology.

• The United States Centers for Disease Control and Prevention

recognised FLUAD® as a preferentially recommended
seasonal vaccine option for adults aged 65+ years.

• Fill and finish capacity expansion now fully operational

at Holly Springs and Liverpool.

• Good progress was made on construction of the new

cell-culture facility in Melbourne.

CSL Vifor

Total revenue was US$1,989 million representing approximately
11 months contribution since the business was acquired on
9 August 2022. This amounts to approximately 14% growth1,2
compared to the 11 months in FY22 before CSL ownership,
reflecting solid growth across all key product areas.

The integration of CSL Vifor is well advanced and the cost
synergies are well on track.

During the period INJECTAFER® (ferric carboxymaltose) was
approved in the United States for the treatment of iron
deficiency in adult patients with heart failure and FERINJECT®
was launched in China in April 2023.

Outlook

The strong growth in the immunoglobulins franchise is
expected to continue following record plasma collections in FY23.

There are a number of initiatives underway to improve
efficiencies which include a focus on optimising plasma
collection costs, improving manufacturing yields and bringing
new products to market, all of which will support the medium
term recovery in CSL Behring’s gross margin.

The launch of HEMGENIX®, in the United States last quarter
will continue to deliver this paradigm-shifting treatment to the
haemophilia B community in the United States and Europe
in the year ahead. The R&D pipeline includes a number
of late-stage programs nearing completion which will lead
to more options for patients.

CSL Seqirus is anticipated to deliver another strong year driven
by demand for its differentiated products. CSL Seqirus is
progressing global registrations for its next-generation mRNA
COVID vaccine.

For CSL Vifor, there is a focus on unlocking the value and
growth within this newly acquired business. Supporting
the medium-term outlook, research and development
capabilities are being brought into the one R&D organisation.
Nephrology and transplant therapeutic areas are being
brought together and a number of patient blood management
initiatives are underway that will cross between CSL Vifor
and CSL Behring businesses.

Further information

Additional details about CSL’s results are included in the
company’s 4E statement, investor presentation slides and
webcast, all of which can be found on CSL’s website csl.com.
A glossary of medical terms can also be found on the website.

1 Constant currency (CC) removes the impact of exchange rate movements, facilitating the comparability of operational performance.

For further detail refer to CSL’s Financial Statements for the Full Year ended June 2023 (Directors Report).

2 Eleven months to FY22 pre-CSL ownership and unaudited v eleven months to FY23.

1616

CSL Limited Annual Report 2022/2317

CSL Limited Annual Report 2022/232 Our Company

CSL’s locations

Melbourne, Australia
CSL Headquarters

CSL Behring and CSL R&D
Broadmeadows, Australia
Wuhan, China
Marburg, Germany
Bern, Switzerland
Kankakee, United States
King of Prussia, United States

CSL Vifor and CSL R&D
Zurich, Switzerland

CSL Vifor
St. Gallen, Switzerland

CSL Plasma*
Goettingen, Germany
Schwalmstadt, Germany
Boca Raton, United States
Indianapolis, United States
Knoxville, United States
Mesquite, United States
Union, United States

CSL Seqirus and CSL R&D
Parkville, Australia
Liverpool, U.K.
Holly Springs, United States
Summit, United States

CSL Seqirus
Maidenhead, U.K.

CSL R&D
Melbourne, Australia
Shanghai, China
Siena, Italy
Tokyo, Japan
Amsterdam, Netherlands
Palma de Mallorca, Spain
London, U.K.
Pasadena, United States
Waltham, United States

Regional Sales and/or Distribution

* CSL Plasma operates 342 plasma collection centres in the United States, Europe and China.

1818

CSL Limited Annual Report 2022/23Integrity

Bukola’s story

Bukola is currently a Field Marketing Manager
at CSL Plasma.

She joined CSL in December 2016 and within
two years was named the Centre Manager. In
her tenure with CSL, she has gained experience
across operations and quality, supporting her
current marketing role. She is currently pursuing
a graduate business degree supported by CSL’s
tuition reimbursement benefit.

CSL Limited Annual Report 2022/233 CSL’s Performance and Strategy

Business performance and highlights

Focus

Innovation

Efficiency and
reliable supply

Sustainable
growth

Digital
transformation

People and
culture

• Focus on serving patients and protecting public health.
• US$13.7 million supporting product access across the world.*
• CSL Vifor integration is well advanced with synergies on track.
• Multiple manufacturing yield initiatives underway.
• Achieved 98 product registrations or new indications in 34 countries around the globe.
• HEMGENIX® (Haemophilia B gene therapy) launched in the United States.
• FERINJECT® approved in China for the treatment of iron deficiency in adult patients.
• INJECTAFER® approved in the United States for the treatment of iron deficiency in adult

patients with heart failure.

• TAVNEOS® (avacopan) approved in Australia for the treatment of ANCA-associated vasculitis.

• Research and development (R&D) investment of US$1.2 billion.*
• US$42.6 million in global community investment across our strategic areas of support.
• HIZENTRA® (Immune Globulin Subcutaneous (Human) 20% Liquid) Pre-Filled Syringe

approved by the FDA.

• BERINERT® S.C. Injection 2000 (lyophilised human C1-esterase inhibitor concentrate) approved

by Japan MHLW.

• Garadacimab (Anti-FXIIa mAb) Phase III study met its primary and secondary endpoints,

demonstrating that monthly subcutaneous injections of garadacimab significantly reduced
attack rate compared to placebo in patients with Hereditary Angioedema.

• CSL112 (ApoA-1) enrolment in Phase III study complete.
• Clazakizumab (Anti-IL-6 mAb) Phase IIb/III study commenced in patients with end stage

kidney disease.

• KAPRUVIA® (difelikefalin) recommended by England’s NICE for the treatment of adults with

moderate-to-severe CKD-associated pruritus.

• Phase II study for aQIVc (adjuvanted QIV cell-based influenza vaccine) completed.
• A licence agreement was signed with Arcturus Therapeutics for late-stage next-generation

mRNA vaccine technology.

• Record levels of plasma collections.
• In 2022/23, 12 new plasma collection centres opened.
• 130 million influenza vaccine doses distributed by CSL Seqirus.
• Base fractionation capacity completed at Broadmeadows and Marburg.
• Participated in 475 regulatory inspections of our manufacturing facilities and plasma

collection centres.*

• A strong year with underlying profit (NPATA) of US$2.61 billion for the 12 months ended 30 June 2023,

up 20% on a constant currency1 basis when compared to the prior comparable period.

• Strong growth in Immunoglobulins portfolio, up 21% at constant currency1.
• CSL Seqirus revenue up 9% at constant currency1 driven by strong growth in FLUCELVAX.
• US$13.2 billion distributed in supplier payments, employee wages and benefits, shareholder

returns, government taxes and community contributions.*

• Across CSL’s European manufacturing facilities, achieved 100% renewable electricity purchased

from certified sources.

• CSL Plasma App which has been downloaded over 3 million times, with more than 530,000

users logged in every month.

• Continuing to support life and data scientists with automation, artificial intelligence and

stronger data and analytics platforms.

• CSL R&D is using digital technology and analytics to simulate, automate, monitor and enhance

productivity and experimentation. These technologies offer new insights through the use of big
data sets generated by CSL platforms, and have the potential to fundamentally change the way
CSL works in R&D.

• 76.2% employee engagement* index.
• 44% women at the Board level and 59% women across the Group*.
• Early career programs for STEM talent around the globe help to build CSL’s future talent pipeline.
• Wide range of professional and personal development programs to meet the evolving needs of

current and future leaders.

• Ranked among the best large employers in America by Forbes magazine and named to Forbes
Global 2000; also among Work180 Top Workplaces for Women in Australia and Prosple Top 100
Graduate Employers in Australia.

* Limited assurance by Ernst & Young

2020

CSL Limited Annual Report 2022/23Financial highlights & reported results

Interim unfranked
dividend of

US$1.07

per share

Final 10% franked
dividend of

Total ordinary
dividends for 2023

US$1.29 =

per share

US$2.36

per share

CSL announced an underlying profit (NPATA) of

Sales revenue was

US$2.61 billion

for the 12 months ended 30 June 2023

US$13,310 million

Expense Performance

Financial position

Research and development (R&D) expenses were
US$1,2322 million, up 22%1 when compared to the prior
comparable period. The increase in expenses reflects the
inclusion of CSL Vifor and progression of pipeline.

Selling and marketing expenses (S&M) were US$1,454 million,
up 58%1 when compared to the previous year. The inclusion
of CSL Vifor for the first time, accounts for the increase in
S&M expenses while other S&M expenses were held in line
with the prior year.

General and administrative (G&A) expenses were
US$9072 million, an increase of 27%1 when compared
to the prior comparable period. The increase in G&A
expenses were related to the inclusion of CSL Vifor.

Depreciation, amortisation (D&A) expense and impairment
was US$831 million, up 27%1 in comparison to the prior
comparable period. The increase in D&A was largely due
to the acquisition of CSL Vifor.

Net finance costs were US$406 million, up 165%1. The increase
in net finance costs was due to the debt associated with the
acquisition of Vifor Pharma and higher interest rates.

Cashflow from operations was US$2,601 million, down 1%. Cash
earnings growth was offset by growth of plasma collections.

Cash outflow from investing was US$11,843 million, up
significantly when compared to the prior comparable period
driven by the acquisition of Vifor Pharma.

CSL’s balance sheet remains in a strong position with net
assets of US$17,826 million.

Current assets decreased by 44% to US$9,259 million. The
main driver was the cash payment relating to the acquisition
of Vifor Pharma.

Non-current assets increased by 127% to US$26,975 million
in comparison to the previous year. The increase is largely due
to the acquisition of Vifor Pharma and the intangible assets
recognised by the acquisition.

Current liabilities decreased by 35% to US$4,608 million.
The decrease was mainly due to the reclassification of the
144A senior notes from current to non-current following the
removal of a mandatory redemption feature on the close of
the Vifor Pharma acquisition.

Non-current liabilities increased by 107% to $13,800 million
compared to last financial year. The increase was due to
the draw down in bank borrowings in connection with the
acquisition of Vifor Pharma in addition to interest-bearing
liabilities and borrowings assumed on the acquisition
of Vifor Pharma.

1 Constant currency (CC) removes the impact of exchange rate movements, facilitating the comparability of operational performance.

For further detail refer to CSL’s Financial Statements for the Full Year ended June 2023 (Directors Report).

2 Underlying results have been adjusted to exclude impairment and amortisation of acquired intellectual property, business acquisition and

transaction costs and unwind of the inventory fair value uplift.

2121

CSL Limited Annual Report 2022/233 CSL’s Performance and Strategy

CSL’s value creation chain

The unmet health need and CSL's resources and assets

Unmet need
Opportunities to improve and protect
the quality of life of patients and
communities in CSL’s therapeutic areas.

Natural resources
Includes: plasma donations for rare
and serious diseases; inﬂuenza virus
strains for product manufacture;
iron sources (including synthetic)
for iron-based products; and
environmental inputs such as
water and energy.

Physical assets

Plasma centres to collect raw material,
dialysis clinics for our joint-venture,
manufacturing facilities for our products,
warehouses, ofﬁces for our people.

Our people
32,000+ people with diverse skills that
are driven by our purpose and values.

Financial resources
Cash, equity and debt for future growth.

Collaborators and business partners
Accessing and sharing intellectual
know-how to develop and innovate
our products.

CSL’s Strategy

L P e o ple & Cultu

Patients and
Public Health

Our expertise and operations

Sourcing
including plasma collection

Pharmacovigilance

Strategic Sustainability
Pillars & Focus Areas

Environment

Social
Workforce

Early stage research
& collaboration

Product development
& clinical trials

Manufacturing
& distribution

Sales, marketing, policy
advocacy & patient support

CSL’s Purpose, Values and Code of Responsible Business Practice

Value we create

Sustainable ﬁnancial growth
Delivering consistent, proﬁtable
and responsible growth for our
investors, which fuels innovation
and development.

Social and economic opportunity
Enabling hundreds of thousands
of people to beneﬁt from
opportunity created by growing
along with us, including employees,
suppliers, plasma donors and
research partners.

Our promise to patients

A healthier more productive society
Protecting global health and the
wellbeing of individuals, families,
businesses and communities from
life-threatening and/or complications
resulting from inﬂuenza.
Saving and/or improving the quality
of life of hundreds and thousands of
people with rare and serious diseases.

2222

CSL Limited Annual Report 2022/23CSL’s 2030 Strategy

CSL operates with a long-term mindset. Over time, we have served patients with life-saving
therapies and effective vaccines. We have achieved consistent top-line growth and strong
margins, which helps fuel further growth by allowing us to re-invest in our own businesses.

CSL is committed to the 2030 Strategy which includes Focus in core therapeutic areas, Innovation, Efficiency & Reliable
Supply, Sustainable Growth, and Digital Transformation, with people at the centre of our strategy. We believe this is the best
path, given our capabilities in an increasingly challenging and competitive world. The core elements of the 2030 Strategy
are represented below.

E fﬁciency &
R e l iable Supply

• Technology
• Operational
Excellence
• Capital Project
Execution
• Partnerships

a ti o

• Products
• Delivery
• Services
• Technology
• Yield

Sustain

ble

• Plasma
• Recombinants
• Cell & Gene Therapy
• Preventative Vaccines
• Iron Therapy

s
u
c
o
F

• Immunology
• Haematology
• Cardiovascular
& Metabolic
• Respiratory
• Transplant
• Vaccines
• Nephrology
& Iron Therapy

L P e ople & Cultu

Patients &
Public Health

• Business
Model
• Connected
Healthcare
• New
Capabilities

m
a
t
i

o
n

CSL’s long-term priorities are focused on delivering
sustainable, profitable growth. This will allow CSL to continue
to provide a reliable supply of our life-saving therapies and to
fund innovation that improves the health of patients and the
public. We are leaders in protein therapies, influenza vaccines
and the treatment of iron deficiency. For CSL Behring, our
immunoglobulin franchise is growing strongly, driven by
record levels of plasma collections. CSL Seqirus is delivering
strong sales growth driven by differentiated products and
has future growth potential with next-generation mRNA
vaccine technology that is in late-stage development with
our partner Arcturus Therapeutics. CSL Vifor provides new
opportunities to grow the iron deficiency treatment franchise
and in nephrology where there is significant unmet need
to drive new indications, expand into new geographies and
improve access.

CSL provides life-saving products to patients in more than
40 countries and employs around 32,000 people globally.
We have an extensive network of manufacturing sites across
Australia, the United States, Europe and China. In addition, we
look beyond our walls to partner with leading organisations
across the value chain to support manufacturing, innovation,
technology and other areas of our business.

Delivering R&D

CSL remains committed to investing in targeted and
disruptive research and development (R&D) innovation to
better meet the needs of patients and public health. This
commitment is evidenced by the continued investment
in R&D, surpassing US$1 billion annually in recent years,
and the dedicated work of over 2,000 R&D employees
across 10 countries who collaborate in integrated teams.

CSL’s R&D organisation has made significant progress in
key clinical programs spanning our four strategic scientific
platforms and six therapeutic areas. Our R&D portfolio
includes promising projects such as garadacimab, our
anti-FXIIa monoclonal antibody for the potential long-term
prophylactic treatment of patients with hereditary
angioedema (HAE), CSL112, which aims to reduce the risk of
recurrent cardiovascular events during the 90-day high-risk
period following a heart attack, alpha-1 antitrypsin (AAT;
ZEMAIRA®) for the prevention and treatment of acute
graft-versus-host disease (GvHD), KCENTRA® for improving
survival in trauma patients experiencing life-threatening
bleeding, clazakizumab for the treatment of patients
with end stage kidney disease and for patients who have
received a kidney transplant, and next-generation
vaccine technologies like sa-mRNA and aQIVc to safeguard
public health.

Moreover, our early-stage pipeline consists of other promising
projects where CSL’s R&D team strives to challenge the status
quo and explore improved options for people and patients.

CSL Limited Annual Report 2022/23
3 CSL’s Performance and Strategy

While our R&D portfolio focuses on innovation in new
products, improved products and enhanced manufacturing
expertise, we acknowledge the importance of collaboration
and recognise that we cannot – and should not – tackle this
alone. Consequently, our R&D endeavours involve identifying
and establishing strategic partnerships that align with our
therapeutic areas of focus and increase the likelihood of
introducing disruptive and beneficial innovations. Notable
examples include the partnership with UniQure where
CSL has exclusive global licence rights to commercialise
HEMGENIX® (etranacogene dezaparvovec), an AAV5 (adeno-
associated virus) gene therapy for the treatment of adult
patients with haemophilia B and which was first launched
in 2023, as well as the collaboration with sa-mRNA-focused
Arcturus Therapeutics, which complements CSL’s long-term
vaccines strategy.

Delivering digital

CSL’s digital transformation journey continues with efforts
to improve our foundation while driving innovation. Demand
for information and technology services continues to
increase across the CSL Group, a by product of growth and
business integration.

From a digital foundation perspective, CSL continues to move
from physical infrastructure to a virtual environment. Benefits
of this include the ability to scale up and down quickly to
meet business needs and improve data accessibility across
the enterprise. CSL continuously reviews its enterprise
resource plan and looks for opportunities to improve
productivity by using data.

An example of how digital has helped with growing CSL’s
plasma collections is the use of the CSL Plasma App
which has been downloaded over 3 million times. Digital
investments like the CSL Plasma App also help to create
personal and integrated relationships with our donors in
addition to the more traditional methods of connecting
via text, phone, in-person and the website.

CSL continues to support its life scientists and data scientists
with automation, artificial intelligence and a stronger data
and analytics platform. Moving more to the cloud will
enhance our ability to work with an ever-growing ecosystem
of partners and help us prepare for future growth by being
better integrated.

Advancing promising futures

CSL’s people – which include more than 32,000 colleagues
around the world – and our values-based culture are at the
core of CSL’s 2030 Strategy. Investing in people and culture
is an enterprise-wide priority. There are a variety of initiatives
in place to continue attracting, developing, rewarding and
retaining top talent while fostering a collaborative, inclusive,
global and dynamic environment that drives innovation and
motivates the best and brightest to succeed.

At CSL, we believe our people can enjoy promising futures
where they fulfill their individual career aspirations and
potential and are inspired by a purpose-driven company that
saves lives and protects public health. At every level of the
organisation, we focus on:

• enabling career management and development with

special attention to our front-line leaders;

• ensuring successor readiness through leadership

development planning and rotational assignments
that support a robust leadership pipeline now and into
the future;

• enhancing our diversity, equity and inclusion (DE&I)

outcomes; and

• engaging employees and key stakeholders to continuously

improve the employee and patient experience.

For additional information about our people and culture
priorities and progress, please refer to the CSL’s People
section of this report on page 40.

Sustainability

Sustainability is a focus of our strategy. Being a responsible
partner across our three strategic pillars of environment,
social and sustainable workforce is important to our
ambitious vision for a healthier world.

For our environmental pillar last year, we set meaningful Paris
Climate Agreement-aligned emissions reduction targets.
This year, we have embedded foundational management
processes to support execution against these targets
(see section 8 for more information) and have submitted
our near-term ambition for direct and indirect emissions
reduction targets to the Science Based Targets initiative
for validation and endorsement.

We have also made clear progress on our social pillar. Subject
matter expert working groups from across functions have
begun to explore areas of opportunity and strength across
our identified focus areas of plasma donor experience, patient
experience and access to our therapies (see section 9 for
more information). As a science-based organisation, we are
working pragmatically to develop meaningful objectives
across these focus areas to further enhance existing shared
value for our stakeholders and communities. Last year, for
our workforce, we established near-term and long-term
gender-based targets and continue to implement DE&I
programs across our regions and operations (see section 7
for more information).

Ultimately, our sustainability strategy, along with a
determined focus on constant improvement across our
priority material sustainability topics, means that CSL can
continue to develop and supply products that save lives and
protect public health, now and well into the future.

For more information on performance, material topics and
how CSL contributes to the United Nations Sustainable
Development Goals, visit our expanded presence on
CSL.com (Sustainability).

2424

CSL Limited Annual Report 2022/2325

CSL Limited Annual Report 2022/234 CSL’s Material Risks

CSL operates in a fast paced and constantly evolving environment of science, technology
and healthcare. Although there are many risks inherent with operating in these environments
and industries, for example research and development, intellectual property and clinical
trial risks, CSL regularly reviews its group risk profile to identify and assess material business
risks. This includes external and emerging risks that could affect CSL’s global operations.

We are also exposed more broadly to external risks such
as the escalating trend of cyber threats and data privacy
breaches and we regularly review our group risk profile to
proactively identify material business risks and opportunities
and assess external risks that could affect our global operations.
Managing risks includes both the mitigation of disruptive
risks and the preparation for seizing opportunities. Our global
Enterprise Risk Management Framework is designed to
ensure robust risk oversight that is fit-for-purpose for both
the operation of our business and to support our strategy and
deliver on our commitments to patients and public health.

As part of CSL’s enterprise risk management process, the
Board and management team have identified the key risks
that are material to CSL. These material group risks are
described below along with an explanation of our approach
to managing them in the context of delivering on our 2030
Strategy. Key financial risks are set out in Note 11 (Financial
Risk Management) to the Financial Statements.

There are other risks that are inherent in the vaccine, plasma
therapies and pharmaceutical industries, including iron
deficiency and nephrology, besides those detailed below
or in the Financial Statements, that could also adversely
affect CSL’s business and operations.

Patient safety and product quality

Patient safety is paramount for CSL’s ongoing sustainability
as a global biotechnology leader and our long-term strategy
of efficiency and reliable supply. When we talk about patient
safety, we mean both in the use and administration of
registered products as well as in the conduct of our clinical
trials. While it is inherent in our industry that patients and trial
participants may sometimes experience adverse reactions
to therapies, CSL’s manufacturing, product quality assurance
and pharmacovigilance practices serve to ensure the
highest standards of safety and the preservation of our
reputational integrity.

Our processes and procedures adhere to global good
pharmacovigilance practice (GPV) and good clinical practice
(GCP) standards, and we seek to ensure that product
information is up-to-date and contains all relevant
information to assist healthcare practitioners to appropriately
prescribe CSL products. For clinical trials, participants are
informed about and acknowledge awareness of the potential
benefits and risks of participation in the trial through use of
Informed Consent Forms approved by relevant regulators,
institutional review boards and independent ethics
committees. Comprehensive qualitative and quantitative
safety signal detection activities are performed throughout
the development programs and the lifecycles of our
marketed products. Furthermore, our pharmacovigilance
risk management systems seek to ensure that potential
and identified safety risks are proactively addressed and
above all appropriately mitigated.

In terms of meeting product quality requirements through
our manufacturing and supply, we adopt and comply with
a broad suite of internationally recognised standards through
the CSL Quality Management System, including good
manufacturing practice, and good distribution practice (GDP)
that includes audits of third-party vendors and suppliers.
We are frequently inspected by independent regulatory
authorities auditing compliance with these standards.

Product innovation and competition

We recognise that an impediment to delivering on our
innovation and sustainable growth strategies is the changing
competitive landscape for new technologies and disruptive
therapies, such as gene and cell therapies. This material risk
may alter the economics and characteristics of, and the
demand for, CSL’s plasma and adjacent therapies, and may
also affect our platforms and capabilities in plasma
fractionation, recombinant technology, cell and gene therapy
and vaccines technology.

We strategically review our existing and future product
pipeline against market demand and continually evaluate our
competitive landscape. A key part of our strategy includes
diversity through our multiple therapeutic areas and scientific
platforms. We incorporate product lifecycle development and
management, as well as development of new therapies, in
strategies for each therapeutic area. In addition to proprietary
research, CSL’s competitive approach includes licensing,
acquiring or partnering with third parties to remain
competitive and advance growth within our chosen
therapeutic areas.

With respect to continued growth and innovation in the
competitive global influenza vaccine market, we recognise
the need to continue leading in the development and
manufacture of influenza vaccines including cell-culture
technology and investigating the use of next-generation
mRNA technology for the development of both influenza
and COVID-19 vaccines. Failure to capitalise on innovative
technology will diminish growth in this product sector,
whereas success will deliver competitive advantages.

Supply, capacity and operations

Having a sustainable and reliable supply chain is critical to
the success of our 2030 Strategy, particularly to achieving
consistent, economical and efficient supply. Any disruption
to supply has the potential to impact our operations. We
constantly monitor the demand for our products over a
10-year horizon as well as our capacity to collect and acquire
human plasma, iron, eggs and other raw materials essential
to the manufacture of our products.

We also monitor the scalability of specialised companies
that supply raw materials, software and bespoke
manufacturing equipment to match our business demand
and growth objectives.

2626

CSL Limited Annual Report 2022/23In our United States and European plasma collection centres,
we use modern techniques and technologies to facilitate
the safest, most efficient donation process. We consistently
update our plasma collection centres to seek to provide a
comfortable and safe donor experience. External sources of
plasma may be used as needed and available to supplement
collections to meet demand.

We endeavour to invest in manufacturing capacity ahead of
projected demand to ensure that we can supply the needs of
patients. Our operations also accommodate investments in
technology and process improvements to enhance efficiency
and reduce costs. Such improvements encompass strategies
to increase the yield of both immunoglobulin and cell-based
influenza vaccines, along with boosting the throughput of
our existing facilities. We are actively engaged in developing
an array of new therapies, including plasma-derived,
recombinant, iron-based, cell-based and sa-mRNA vaccines,
and gene therapies to maximise the utilisation of our global
R&D and manufacturing network.

Our global network strategy continually evaluates short-,
mid-, and long-term needs to inform decisions on capital and
operational expenditures, including the use of expert third
party providers to ensure a resilient, reliable and sustainable
supply chain. We examine and prioritise our operational
effectiveness efforts, capital plans, inventory targets, supply
chain visibility, distribution and regulatory strategies to
enhance the positions of our products from a business
continuity and supply chain resilience standpoint.

Market access

Policy making around market access is a multi-stakeholder
engagement process, which includes governments, payers/
insurers, patient advocacy groups, medical societies and
non-governmental organisations. We recognise that if we
are not successful in maintaining an economic and reliable
supply of our therapies for our stakeholders, or do not adopt
responsible pricing, it may adversely affect our ability to
execute our strategy, deliver sustainable growth and uphold
our corporate reputation. We further recognise that
macroeconomic pressures on governments and payers may
impair access, growth and new market entries. We work
closely with stakeholders in all countries where we market
our products and continually seek to ensure pricing of our
therapies reflects the value they bring to the people who
need them and to health systems, and remains competitive
and responsible. By continuing to innovate in our product
portfolio, we can serve the unmet needs of more people and
expand our access to more countries.

People and culture

CSL’s people and our commitment to fostering an inclusive,
values-driven culture are integral to meeting and exceeding
the standards expected by our stakeholders and the
community. We have a variety of programs and policies
in place, including our Speak Up Policy and our Code of
Responsible Business Practice (CRBP), to ensure that our
CSL Values guide how we work and operate around the
world. We recognise that having a strong values driven
culture where our employees act with integrity helps build
internal and external trust and ultimately protects and builds
CSL’s reputation.

We also recognise the need to have the right people with
the right skills in the right roles in order to execute our 2030
Strategy. As we focus on attracting, developing and retaining
top talent in this globally competitive environment, we
regularly review best practices, and benchmark ourselves
against the markets in which we operate with the goal
of offering total rewards that are both compelling and
competitive with our peers and competitors.

In addition, we understand that the workplace and our
employees’ needs are constantly evolving, and we offer
flexible work options and opportunities for them to stay
connected regardless of location. We constantly challenge
ourselves to create an engaging and collaborative
environment where our people can drive innovation and
focus on meaningful, valuable work. Our employee brand,
Promising FUTURES, represents CSL’s investment in the
overall employee experience, with an emphasis on
digitalisation and automation, collaboration, connectivity
and inclusion, employee development and customised
rewards for attracting and retaining next-generation talent.

Privacy and cybersecurity

Ensuring the privacy and security of our data, including that
of our patients, donors and employees, is of critical
importance to CSL. We recognise the escalating risk of cyber
threats and data privacy breaches targeting individuals and
organisations. These cyberattacks constantly evolve, ranging
from sophisticated phishing scams to attacks on critical
infrastructure. Additionally, breaches of our information
technology (IT) security and unauthorised or inadvertent
release of information, caused by human error, malware or
espionage, may compromise the privacy and security of the
data we hold.

To address these challenges, CSL maintains a proactive
stance by continuously monitoring and assessing
cybersecurity threats. We have designed and implemented
robust security controls for our IT systems, infrastructure
and data, based on our understanding of known threats
and industry best practices, and external testing to ensure
their effectiveness.

Furthermore, we understand that awareness and
preparedness are key in responding to cyberattacks and
safeguarding data privacy. As such, we place great emphasis
on providing ongoing education and training to our
employees. By equipping them with the knowledge and skills
to recognise and appropriately respond to cyber threats, we
strive to empower our employees to effectively mitigate risks
and promptly report any privacy breaches.

CSL remains dedicated to upholding the privacy and security
of all data entrusted to us. Through our monitoring, privacy
and security controls, and training programs, we commit
to maintaining high standards of cybersecurity and
data protection.

Further details about our enterprise risk management
framework and how we manage our business risks is
provided in our 2023 Corporate Governance Statement
available on CSL.com (We Are CSL > Corporate Governance).

CSL Limited Annual Report 2022/235 CSL’s Future Prospects

Over the last 12 months CSL has taken steps to create an integrated and simpler organisation
with focus on its three businesses, CSL Behring (which includes CSL Plasma), CSL Vifor and
CSL Seqirus.

These businesses are supported by CSL’s global enabling functions, global R&D organisation and global centres of excellence.

The ongoing integration of CSL Vifor, combined with continued investment in CSL’s people and in digital transformation
provides a good foundation for CSL to continue executing its 2030 Strategy.

In the medium term

In the longer term

CSL Behring expects to continue to grow through fulfilling
unmet demand for products driven by increased plasma
collections, developing differentiated plasma-derived and
recombinant products, expanding markets and indications
for those products and developing cell and gene therapies.

CSL Seqirus expects growth with its portfolio of
differentiated products, including its adjuvanted
quadrivalent influenza vaccine in the 65 years and
over market.

CSL Vifor’s growth is largely focused on unlocking the value
and growth within this newly acquired business by bringing
together CSL’s research and development capabilities into
the one R&D organisation. We are also combining nephrology
and transplant therapeutic areas and have a number of
patient blood management initiatives underway that cross
between CSL Vifor and CSL Behring.

CSL expects sustained demand for immunoglobulins
driven by significant need in Primary Immune Deficiency
and Secondary Immune Deficiency. In the haematology
therapeutic area, HEMGENIX®, CSL’s one-time gene therapy
for the treatment of adults with haemophilia B, provides
another option to patients, complementing IDELVION®, a
long-acting recombinant factor IX product. CSL also expects
demand for vaccines to continue and be supported with
its new recombinant protein and next-generation mRNA
technologies. There remains significant unmet need for
products to address anaemia, and CSL Vifor will continue
to play an important role in this therapeutic area.

Further information about CSL’s product pipeline is set out
on pages 10 and 11 and details of new products being brought
to market are set out on pages 14 and 15.

Driven by its promise to patients, and guided by its Values
in decision making, CSL remains committed to delivering
innovative medicines that save lives, protect public health
and help people with life-threatening medical conditions
to live full lives.

More information in relation to CSL’s outlook is provided
in the Chair and CEO messages, and further information
on the factors that could affect this section is provided
in CSL’s Material Risks on page 26.

2828

CSL Limited Annual Report 2022/2329

CSL Limited Annual Report 2022/23CSL’s $2 billion-plus capital
investment in Australia
includes CSL Melbourne,
a next-generation cell-based
influenza vaccine
manufacturing facility for
CSL Seqirus in Tullamarine,
Australia and also a Plasma
Fractionation Facility in
Broadmeadows, Australia.

CSL Limited Annual Report 2022/23Australia

Melbourne
Pictured left, is CSL Melbourne, CSL’s new Global Headquarters and
Centre for R&D located in the heart of the Melbourne Biomedical Precinct.

Tullamarine

Broadmeadows

CSL’s new manufacturing facility under construction in the
Melbourne Airport Business Park in Tullamarine, is set to be
Australia’s latest world-class biotech manufacturing facility
and the only cell-based influenza vaccine manufacturing
facility in the Southern Hemisphere when it opens in
mid-2026. The facility will also manufacture seasonal and
pandemic influenza vaccines, CSL Seqirus’ proprietary
adjuvant MF59® and unique products of national significance
important to Australia’s public health needs.

CSL’s new Plasma Fractionation Facility opened in
Broadmeadows, Victoria in December 2022. It is the largest
of its kind in the Southern Hemisphere and is part of CSL’s
multi-billion dollar investment in Australia – reinforcing CSL’s
commitment to patients. The facility will process domestic
plasma from Australian, New Zealand, Taiwanese, Hong Kong
and Malaysian donor plasma, in addition to commercially
sourced plasma through CSL Plasma, one of the world’s
largest collectors of human plasma.

Germany

Marburg

United States

Waltham

CSL’s new R&D campus, in Marburg, Germany opened its
doors in September 2022 and is now home to about 500 CSL
R&D employees. In addition, it will host academic partners
and collaborators.

A new state-of-the art R&D centre in Waltham,
Massachusetts, in the United States, officially opened in
March 2023 and will support CSL’s growing R&D portfolio,
including the next-generation mRNA technology
platform for seasonal and pandemic influenza vaccines.

CSL Limited Annual Report 2022/236 Powered by Innovation

Overview of R&D at CSL

What stands CSL in good stead is its quantitative approach
to understanding the nature and biology of a disease
at a molecular and cellular level, combined with a deep
understanding of the clinical and commercial aspects
of those diseases where the aim is to introduce new and
advanced products.

We understand that true breakthroughs in medicine often
arise from challenging conventional thinking and exploring
novel approaches. As such, our R&D teams are at the forefront
of disruptive innovation, constantly seeking out new and
unexplored avenues to tackle the most pressing medical
challenges. By embracing a forward-thinking mindset and
pushing the boundaries of what is possible, we strive to
revolutionise the treatment landscape for various diseases.

Innovation in CSL is driven by its R&D organisation with
employees located within biotech hubs and precincts
around the world that are linked to strong research networks
and collaborations that we actively establish and foster. A
philosophy of global collaboration underpins CSL’s presence
within those research precincts and provides access to
worldwide, leading innovation to advance the discovery and
development of pioneering biotherapies to address unmet
medical needs.

These dynamic environments provide the perfect ecosystem
for fostering innovation and collaboration and provide
valuable opportunities for our scientists to interact, discover
and ideate with external partners. By situating our employees
in these strategic locations, we ensure that they have access
to the latest scientific advancements and cutting-edge
technologies, inspiring them to think creatively and push the
boundaries of knowledge.

Expanding R&D footprint

Integral to accelerating the development of CSL’s new
products and technologies is investment in its strategic
growth. CSL continues to advance its global programs and
teams and expand the R&D footprint with:

• more than 2,000 R&D employees in 10 countries,

working in integrated teams;

• R&D centres located in leading biomedical

locations including:

– Melbourne, Australia;

– Shanghai, China;

– Marburg, Germany;

– Siena, Italy;

– Tokyo, Japan;

– Amsterdam, the Netherlands;

– Palma de Mallorca, Spain;

– Bern and Zurich, Switzerland;

– London, UK;

– Holly Springs, Kankakee, King of Prussia,
Pasadena and Waltham, United States;

• access to worldwide, leading innovation that leverages

both the knowledge from CSL employees as well as from
research and medical institutions/alliances proximate to
CSL’s R&D centres.

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CSL Limited Annual Report 2022/23

Over the last 12 months, a number of key achievements have
been reached regarding CSL’s investment in strategic growth.

• Following meticulous planning and construction spanning

four years, CSL proudly inaugurated its new CSL Global
Headquarters and Centre for R&D in Melbourne, Australia,
in March 2023. Situated in the heart of the Melbourne
Biomedical Precinct, this cutting-edge facility stands
tall with 18 stories, offering a productive and inspiring
environment for over 850 employees. The nine levels
of leading-edge, world-class laboratories and facilities
were completed in June/July 2023. Also located at
CSL Melbourne is Australia’s first-of-its-kind biotech
incubator – Jumar Bioincubator – which was developed
in partnership with WEHI and the University of Melbourne
with initial investment from Breakthrough Victoria.
Jumar Bioincubator is a space for external collaborators,
innovators, and start-ups to translate their medical
research. CSL Melbourne has over 35,000 square metres
of floor space, including purpose-built wet laboratory space
and is just 500 metres from the Bio21 Institute, where CSL’s
early stage research team has been based for over 10 years
and will further enable collaboration with other researchers
in this multidisciplinary biomedical precinct.

Our new location is perfectly suited for collaborating
with external partners, a key component of our CSL R&D
strategy. These facilities are world-class, which will not
only support CSL’s talented R&D teams, but the new space
further fosters the type of culture we value as a company –
one that’s open, collaborative, and transparent.

Dr William Mezzanotte, Head of R&D and Chief
Medical Offi cer

• Following three years of construction, the new R&D
campus, in Marburg, Germany, opened its doors in
September 2022 and is now home to about 500 CSL R&D
employees. In addition, it will host academic partners and
collaborators. The R&D campus is almost 40,000 square
metres, including 7,400 square metres of laboratory space,
10,300 square metres of working space, a state-of-the-art
vivarium and 905 square metres of collaborative laboratory
space. As one of the homes for CSL’s future innovation,
innovative sustainability was a key driver when designing
the building. The campus was constructed according to
KfW (a German state-owned investment and development
bank) eligibility criteria for green financing. The investment
is consistent with the Sustainable Development Goals of the
United Nations – it contributes to the sustainability targets
#7 – Affordable and Clean Energy and #13 – Climate Action.

• CSL’s new state-of-the art R&D centre in Waltham,

Massachusetts, in the United States, officially opened in
March 2023 and will support CSL’s growing R&D portfolio,
including the next-generation of mRNA vaccine
technology, for seasonal and pandemic influenza vaccines.
The custom-built facility consists of approximately 13,000
square metres overall with 5,000 square metres of
laboratory space – including the first biosafety level 3
laboratory (BSL-3) in Waltham – and the ability to house
about 300 full-time employees.

Innovation

Elena’s story

Living with Iron Deficiency

After suffering years of symptoms including
exhaustion, Elena, was finally diagnosed
with iron deficiency. Since getting the right
therapy to manage her condition, she’s back
to leading an active life as a mother and radio
host in Switzerland.

CSL Limited Annual Report 2022/23

6 Powered by Innovation

CSL’s growing R&D presence in Waltham is the latest
example of our investment in our future – which includes
advancing our growing capabilities in disruptive
technologies like next-generation mRNA. At this site, we
aim to develop the vaccines that will help protect the public
in the decades ahead and facilitate collaboration with local
partners to drive our next wave of innovation.

Dr Jon Edelman, Senior Vice President,
Vaccines Innovation Unit

Our digital transformation

The biopharmaceutical industry is on the precipice of
significant disruptive innovation and change that will have
far-reaching impacts for both companies and the people they
serve. Various factors, such as growing demand, escalating
costs of product development, pressure to reduce drug prices
and the need for enhanced patient access, are intensifying
the competitive landscape. Companies that embrace and
effectively use digital technology, such as artificial intelligence
(AI), machine learning (ML) and large-scale data sets, will gain
a competitive advantage in the present and future. As CSL
grows, it is undertaking considered and purposeful measures
to establish a robust digital framework throughout the
organisation to support new levels of productivity, growth
and sustainability.

Why do we need disruptive innovation? Because our patients, public health, employees and the
CSL business are relying on its transformative impact

To be an innovator means that, at times, you will disrupt the status quo and challenge orthodoxies to achieve better outcomes.
At CSL, we have a history of disrupting ‘the way things are’. Equally, we are not afraid to also disrupt ourselves if it means an
even better experience or outcome for patients and public health. Fast paced digital transformation has the potential to
transform manufacturing processes, including pharmaceutical production, but also has the potential to improve the efficiency
and effectiveness of how we currently work in R&D. Digital tools to simulate, monitor and drive experimentation, offer new
insights into the ability to make use of big data currently generated by CSL platforms, with the potential to fundamentally
change the way we work in R&D.

To enhance efficiency through digital technology and
analytics, CSL is currently undergoing a transformation
in its approach to information and technology (IT)
in order to complement laboratory spaces and wet
laboratory benchtops.

As the working environment evolves in tandem with
advancements in IT, it is crucial for CSL’s scientists to adopt
a ‘bilingual’ scientific approach. They must feel equally
comfortable designing experiments and employing coding
and mathematical techniques to manipulate extensive
data sets. With the increasing digitalisation of our lives
and processes, data science offers us the capability to delve
deeper into analytical insights, optimise workflows and
processes, and automate repetitive tasks, all freeing up more
time to focus on the science and provide real-time insights
to support decision making.

CSL’s Biomedical Data Science Initiative (BDSI) aims to enhance
R&D capabilities in utilising big data by introducing new
technologies, processes, additional resources, personal
development opportunities and new collaborative approaches.
The initiative emphasises talent acquisition, partnerships,
infrastructure development and cloud strategy to address
the evolving needs of translational data science and support
the transformation of our R&D organisation towards precision
medicine. It will complement and bolster our existing R&D
strengths and enables us to mitigate program risks by
increasing the probability of success, providing deeper
insights into diseases and assets, and optimising the
design of clinical trials to be more efficient and timely.

In the future, it is likely that CSL’s bench scientists will allocate
a significant portion of their time to data analytics. Therefore,
possessing strong programming and mathematical skills will
be just as essential as traditional biomedical competencies,
wet laboratory skills and result interpretation. With the right
information and technology infrastructure and adaptable
scientists who possess a blend of traditional and modern
scientific skills, CSL is positioning itself to thrive in the
‘Lab of the Future’.

As drug development changes, we invest continuously in
upskilling our people. That helps scientists feel safer with
change because they understand that they will be part
of how the company evolves.

Dr Douglas Lee, Senior Vice President,
Plasma Product Development

CSL, along with experts within and beyond the organisation,
operates within an ecosystem of digital-to-physical research
tools that enhance human capabilities, enabling us to tackle
increasingly complex experiments. Automation, robotics,
artificial intelligence and machine learning are transforming
our interactions with our laboratories. Importantly, this
ecosystem fosters integration of external partners and
collaborators as extensions of CSL’s R&D functions.

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CSL Limited Annual Report 2022/23CSL’s R&D organisation is actively incorporating innovation
into its infrastructure across global hubs for future readiness.
Here are some examples of innovation within CSL’s Product
Development teams:

• Automation plays a vital role in our vision for the ‘Lab of
The Future’. The initial focus is on automating scientific
workflows within the laboratory environment to increase
accuracy, enhance result reproducibility and improve
efficiency by decoupling productivity from scientists. An
automation platform including purification and analytical
equipment is already deployed in Marburg and is planned
for implementation at CSL Melbourne in 2023. Automation
systems will enable us to increase productivity
independent of the time allocated by our scientists.

• CSL’s future of product development and clinical

manufacturing lies in the adoption of model-based process
development. In-silico models, representing the digital
twins of physical assets, are used to simulate processes
without undertaking ‘wet-lab’ experiments, significantly
reducing the experimental burden, improving efficiency
and accelerating progress towards clinical studies and the
market. Continuous refinement of the models further
enhances their effectiveness and through this, CSL
seeks to bring about a transformative leap in our
operational abilities.

• CSL has introduced an innovative technology platform

that aims to expedite the delivery of medicine to patients
by providing a unified platform for connecting dispersed
teams and locations, both internal and external, to
accelerate the end-to-end drug product lifecycle. Given
CSL’s geographic spread in R&D, this offers enormous
potential for greater collaboration. When integrated with
laboratory facilities, this advanced technology uses an
augmented reality headset and a linked tablet, to offer
immediate feedback, process instructions and real-time
issue resolution within a pre-defined workflow. Currently,
it is being used in the clinical manufacturing operations
at CSL Melbourne to transition from paper-based records
to a digital interface.

• Scientists typically spend a significant amount of time

handling samples and conducting experiments in person
to make informed decisions. CSL and Monash University
have initiated the AI Biochemist collaboration, which aims
to enhance the efficiency of scientists by implementing an
AI-guided, autonomous laboratory automation system. By
integrating cutting-edge instruments with AI capabilities
and robotic components, the project focuses on
addressing the crucial task of providing a central ‘brain’
and command centre. By leveraging state-of-the-art
technologies, we can automate laboratory operations
making them more efficient with the aim of expediting
scientific discovery, enhancing research quality and
ultimately developing improved treatments for patients.

CSL Limited Annual Report 2022/236 Powered by Innovation

Our strategic scientific platforms

To ensure a robust and diverse innovation pipeline based on a foundation of scientific excellence, CSL continues to strengthen
its therapeutic area focus underpinned with robust technical development platforms. CSL uses its strategic technical platforms
of plasma protein technology, recombinant protein technology, cell and gene therapy, and vaccines technology to support
continued innovation and continually refine ways in which products can address unmet medical needs, help prevent infectious
disease to protect public health, and help patients lead full lives.

Plasma Protein
Technology

Plasma is a valuable resource for many current and potentially new biological therapies.
We rely upon our donors to provide this life-saving resource and as such, CSL Behring has
an obligation to maximise the value of each plasma donation through the development and
delivery of important therapies for the benefit of patients. CSL’s yield and reliability programs
for donated plasma continue to be an important, strategic area of focus for CSL as we strive
to be the industry leader in plasma-derived therapies.

Recombinant Protein
Technology

Cell and Gene Therapy

Vaccines Technology

Recombinant protein technology uses cells, grown in large batches, each as an individual
protein production factory. This allows product supply to be reliably scaled (compared to plasma
collection), ensuring a robust and resilient supply of products to patients. The capability to
further manipulate the sequence of recombinant proteins permits a responsiveness to achieve
desired therapeutic goals, such as the ability to replace a patient’s own deficient or inactive
protein, selectively target specific biological mechanisms, enhance potency and improve
pharmacokinetics, resulting in more effective, highly differentiated medicines with the potential
to optimise the route and frequency of delivery. CSL’s garadacimab program highlights the
value of monoclonal antibodies, a specific subset of recombinant proteins that are developed
to have a highly specific targeting to block or enhance certain biologic or immune processes
which lead to disease states. The specificity of the targeting of monoclonal antibodies ensures
very high efficacy with minimal side-effects.

Cell and gene therapies are highly innovative, next-generation products that, after decades
of research and development, are now starting to improve the lives of patients with serious
diseases. For diseases with few effective therapeutic options, such as certain blood cell cancers,
or where successful therapy has required a lifetime of regular symptomatic treatment, such as
rare inherited genetic deficiencies, they offer the promise of a long-term cure. The fundamental
differentiating characteristic of cell and gene therapies is that the patient’s own cells are
manipulated to produce the disease-correcting protein, either by removing the patient’s cells
and modifying them or, as with HEMGENIX®, by using molecular machinery derived from
viruses to deliver the therapeutic gene to the desired cell type within the patient’s body.

CSL Seqirus is a global leader in influenza vaccine technologies for prevention and control of
seasonal disease, and a transcontinental partner in pandemic preparedness. Our egg-based
and cell-based manufacturing capabilities in three continents produce more than 100 million
doses of influenza vaccines annually. Together with our MF59® adjuvant, our influenza vaccines
help to meet the needs of different populations around the world. CSL’s ongoing commitment
to population protection is evidenced through our innovative vaccines pipeline, which includes
next-generation technologies such as next-generation mRNA and recombinant antigen
production, to address emerging and present viral threats to human health.

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CSL Limited Annual Report 2022/23Global collaboration for innovation

Thriving biotech ecosystems worldwide rely on multiple
interconnected elements for success: exceptional research
and development capabilities, state-of-the-art infrastructure
and facilities, financial investment for innovation across the
development lifecycle, effective translation and development
of research into commercially viable outcomes and, most
importantly, a culture of collaboration.

CSL’s R&D portfolio focuses on innovation in new products,
improved products and manufacturing expertise, ensuring
CSL’s continued growth. In pursuit of these goals, CSL
recognises and embraces that we cannot, and should not,
do it alone. When collaboration becomes the driving force
behind progress in biomedical ecosystems, it brings benefits
to various stakeholders including universities, research
institutions, pharmaceutical companies and, crucially,
patients. Thus, CSL continues to identify and build strategic
collaborations that align with our therapeutic areas of focus
and enhance our chances of bringing forward beneficial
disruptive innovation.

Jumar Bioincubator, Australia’s preeminent biotech
incubator, is situated within our new Global Headquarters
and Centre for R&D in Melbourne. It is the first and only
incubator in Australia co-located with a leading
biotechnology company. This has been made possible with
financial and in-kind support from CSL, the University of
Melbourne and The Walter and Eliza Hall Institute of Medical
Research (WEHI), who have formed an incorporated joint
venture to establish and operate the incubator, plus initial
investment from Breakthrough Victoria, an independent
company administering the Victorian Government’s
landmark A$2 billion Breakthrough Victoria Fund.

Operated independently by Cicada Innovations, Jumar
Bioincubator offers comprehensive support to biotech
start-ups, enabling them to translate groundbreaking
biomedical discoveries into tangible commercial outcomes.

Spanning two levels of CSL Melbourne, the incubator will
encompass 1,400 square metres of purpose-built laboratory
space with support facilities and 1,700 square metres of office
and collaboration space. Jumar Bioincubator will be able to
accommodate up to 40 early stage companies from around
Australia and internationally and will be embedded alongside
seven floors of leading-edge laboratory and clinical
manufacturing space supporting CSL’s own R&D programs.

Beyond providing cost-effective, cutting-edge ‘wet-lab’
facilities, equipment and office space, Jumar Bioincubator
delivers a wide range of services including educational
programs on commercialisation, facilitated access to
investors, industry mentoring, and access to curated service
providers. By capitalising on the investments already made
in the Melbourne Biomedical Precinct, Jumar Bioincubator
aspires to position Australia as a globally recognised
hub for biotech translation and commercialisation,
complementing the precinct’s renowned reputation
for exceptional medical research.

Co-located within CSL Melbourne means Jumar
Bioincubator residents will be working in an innovation-
driven environment alongside a large and focused CSL
R&D team, enabling opportunities for peer-collaboration,
learning and sharing of ideas.

Dr Andrew Nash, Chief Scientific Officer and Senior Vice
President, Research

Identifying early stage external innovation opportunities,
such as new technologies and assets, is essential for CSL’s
research portfolio to grow and diversify in the future. To
expedite the commercialisation of promising discoveries
that can address unmet patient needs, the Research
External Innovation Team have established the CSL Research
Acceleration Initiative (RAI) to form partnerships between CSL
and research organisations worldwide. By fostering long-term
collaborations with talented academic scientists, the RAI
promotes innovation and offers crucial early funding as well
as access to CSL’s R&D experts.

Over the past four years, CSL has successfully established
over 30 new collaborations with entrepreneurial scientists
in Australia, Europe, and the United States through the RAI.
Furthermore, CSL has strategically partnered with selected
incubators, accelerators and venture funders worldwide
to expand its access to external innovation.

These partnerships include Baselaunch, a Swiss-based
venture builder that collaborates with scientists and
entrepreneurs across Europe to develop cutting-edge
therapeutics. In the United States, CSL joined forces with
StartX, a global non-profit community consisting of over
800 companies affiliated with Stanford University and the
Philadelphia-based Science Center; whilst in Australia, CSL is
an investor in the Brandon BioCatalyst fund, which provides
support for the development and commercialisation of early
stage biomedical discoveries. Through these collaborative
efforts and initiatives, CSL expands its global presence and
strengthens its connection with innovative scientists and
provides CSL with a significant competitive advantage in
accessing ground breaking discoveries to build a sustainable
and diverse R&D portfolio of promising biotherapies across
various therapeutic areas.

Each year, CSL works to establish longer term strategic
partnerships that will benefit CSL, CSL’s academic partners
and most importantly, our patients.

• CSL and WEHI celebrated an important milestone in May
2023 with the opening of newly refurbished laboratories
for the Centre for Biologic Therapies (Centre). The Centre
combines WEHI’s expertise with CSL’s experience in
biologic drug discovery and development and its world-
class human antibody library which will be the engine
room of biologics discovery at the Centre. With its new
laboratories within the Royal Melbourne Hospital, the
Centre provides access to expert biologic discovery and
optimisation capabilities accelerating drug development
into the clinic, ultimately addressing a current gap in
Australian medical research. The partners will contribute
equal funding to the Centre, with a combined investment
of A$10 million over five years.

CSL Limited Annual Report 2022/236 Powered by Innovation

Collaborating to pair external unique technologies, assets
and equipment with our strengths in research, clinical
development, manufacturing, and commercialisation will
help us reliably deliver the next and future generations of
therapies to our patients. We are very purposeful in the
culture, behaviours and mindset we establish when we
decide to work with a partner. Better outcomes follow when
the goal is both outcome and connection – at the heart of
this thinking is a ‘combinatorial’ culture of complementary
leadership and a spirit of true collaboration.

Dr Emmanuelle Lecomte-Brisset, Senior Vice President,
Global Regulatory Affairs

• CSL and WEHI have also established the CSL WEHI

Translational Data Science Alliance which will leverage
CSL’s expertise in drug development and WEHI’s
experience in bioinformatics to gain a deeper
understanding of biotherapies and patient populations.
Through this alliance, CSL’s Research Data Science team
will work alongside WEHI’s highly skilled and world-
renowned computational biologists and bioinformaticians,
who will contribute innovative data analysis methods to
help us advance therapeutics into the clinic. Additionally,
this collaboration will greatly enhance R&D capabilities in
bioinformatics, genomics and imaging at both CSL and
WEHI through the utilisation of advanced technologies,
platforms and talent development.

• The Australian Research Council (ARC) Hub for Digital

Bioprocess Development is part of the Industrial
Transformation Research Hub grant scheme (ITRH
Scheme) and has been established to support the
biopharmaceutical industry by fostering digital innovation,
productivity and competitiveness. It will draw together
expertise from the University of Melbourne, University
of Technology Sydney and RMIT University, together with
CSL, Patheon and Pall and three leading international
universities, forming a substantial team. The Hub will bring
together an interdisciplinary team of engineers, scientists,
and computing specialists to create digitally integrated
advanced manufacturing processes and a platform for
industry-wide adoption. This will include the development
of novel process and digital models capable of predicting
and optimising manufacturing processes resulting in
improved yields, more efficient and flexible processes, and
enhanced product stability. The ARC Hub for Digital
Bioprocess Development will employ six CSL post-doctoral
scientists and over 10 PhD students over a five-year period.

In support of the yearly seasonal influenza vaccine epidemic,
CSL Seqirus collaborates with the World Health Organisation
(WHO) Collaborating Centre in Melbourne, Australia to
prepare vaccine seeds and potency reagents that are made
widely available. This is an important contribution to assist
with the global effort to prepare for the forthcoming
vaccination season.

Influenza remains a significant global health concern and
CSL is committed to collaborating with like-minded partners
to advance our understanding of the human response
to influenza and to discover new and innovative vaccine
solutions for this and other respiratory viruses. By collaborating
with Arcturus Therapeutics, CSL has gained access to Arcturus
Therapeutics’ advanced next-generation mRNA vaccine
platform technology, which has shown promising results in a
large Phase III study for COVID-19. Through this collaboration
the commercialisation of a prospective COVID (SARS-CoV-2)
vaccine has been significantly advanced and the partnership
will continue to drive the development of new vaccines
including seasonal influenza sa-mRNA vaccines.

This agreement with Arcturus Therapeutics provides CSL
with an opportunity to strengthen and accelerate our goals
for the next-generation of mRNA vaccines and underscores
our commitment to pursuing new and innovative ways of
protecting public health. This is a significant leap forward
with a demonstrated platform that will allow us to further
explore influenza-adjacent therapies.

Dr Paul McKenzie, Chief Executive Officer

Strategic support for innovative medical research

One of CSL’s core values is innovation and over the past year
we have continued to support collaborative innovation
through the endowment of the following awards to
researchers around the world.

• The Heimburger Award is a global award available

to researchers across the world. Professor Dr Norbert
Heimburger, a CSL Behring employee for over three
decades, was a pioneer of modern coagulation therapy.
Among his many achievements, Prof. Dr Heimburger
developed virus-safe plasma products based on
pasteurisation, including launching the first effectively
virus-inactivated FVIII concentrate in 1981. In his honour,
CSL Behring created the Heimburger Award, recognising
clinical and/or preclinical research of emerging coagulation
specialists who are driven to improve the care of patients
with bleeding disorders. In May 2022, five recipients from
Australia, Belgium, Ireland, Italy and the Netherlands
received this award.

• In October 2022, two Australian scientists were each awarded
a CSL Centenary Fellowship, valued at A$1.25 million over
five years. Dr Samuel Forster will use his fellowship to fund
research to unravel how some bacteria influence the gut’s
immune system and contribute to inflammatory bowel
disease, a chronic, painful and disruptive condition. And
the help of the fellowship will assist Dr Michelle Boyle
to investigate how the malaria parasite can disrupt the
body’s immune response, reducing the effectiveness of
vaccination in children in malaria-affected communities.
Both of these research projects will generate fundamental
knowledge that could transform how we fight these
diseases to improve outcomes for patients.

3838

CSL Limited Annual Report 2022/23Over the reporting period, 16 clinical trials were added,
and 11 clinical trial results were posted, on an International
Committee of Medical Journal Editors (ICMJE)-recognised
public clinical trial registry. These were all disclosed in a timely
manner and in compliance with CSL’s transparency policy.
This policy reflects international requirements and standards
including requirements from ICMJE, WHO guidance and
legislative requirements.

In addition, 10 inspections were undertaken by regulatory
agencies including the US Food and Drug Administration
(FDA) and the Japanese Pharmaceuticals and Medical
Devices Agency (PMDA). All inspections confirmed adherence
with GCP requirements, validated the data integrity of our
clinical trials and had no impact on clinical trial operations.

When patients speak, CSL listens

CSL continues to improve clinical trial performance
and reduce patient burden of participation, and we
listened to patients to make it happen. Over the last
12 months, through direct patient feedback, we
made multiple protocol modifications during the
design stage for several high priority clinical trials.
Addressing these protocol design challenges early
resulted in a reduction in the number of protocol
amendments during the conduct of the clinical
trials. Patient insights also helped drive innovation
within R&D by enabling us to identify several new
capabilities which were incorporated into our
clinical trials. Overall, listening to our patient
advisory boards resulted in changes which helped
reduce the patient burden in CSL clinical trials;
making it more feasible for patients to participate
in these studies and thus helping to advance our
newer therapies towards those patients in need.

Listening to our patients’ needs

The ability to collaborate with patients and their support
networks remains an essential part of CSL’s efforts to make
a meaningful difference to the lives of patients and to public
health. We have continued to exemplify our dedication to
understanding patients’ needs by expanding internal and
external partnerships and engaging with industry partners
who share similar values regarding patient focus. Through
these important partnerships, CSL is navigating critically
important areas which have a direct impact on areas such as
patient diversity and inclusion in drug development, health
equity and leveraging enabling technologies to improve how
we interact with patients across R&D. CSL is inviting patients
to directly comment on how it is discovering and developing
the next wave of important therapies. These strategic efforts
have resulted in numerous insights, improvements and
efficiencies in CSL’s development programs and how the
R&D pipeline is delivered.

Through actively listening to patients’ needs, CSL makes
a meaningful impact on patient lives and public health.
We partner with industry leaders who share our patient-
focused values, addressing diversity, health equity and
leveraging technology to enhance R&D. Together, we drive
improvements for a better future in drug development,
helping us to deliver on our promise.

Deirdre BeVard, Senior Vice President,
R&D Strategic Operations

Clinical trials in progress and new

In 2022/23, CSL had 60 clinical trials in operation across all
therapeutic areas. Of those, 12 had a first patient enrolled
in the trial during the year.

CSL conducts clinical trials ethically and adheres to the
highest standards of integrity in the formulation, conduct
and reporting of scientific research. This is based upon three
primary elements: scientific integrity; patient safety; and
investigator objectivity.

clinical trials in
operation across
all therapeutic
areas

regulatory
authority inspections
with no impact to
clinical trial conduct

The CSL Clinical Quality Management System allows CSL to
monitor and effectively oversee the quality of clinical trials
and includes both regulatory authority inspections and
internal audits for good clinical practice (GCP), good
pharmacovigilance practice (GVP), good manufacturing
practice (GMP), good laboratory practice (GLP) and good
research laboratory practice (GRLP).

CSL Limited Annual Report 2022/237 CSL’s People

Our highest priority is the safety and wellbeing of our employees, donors and patients.

Guided by our Values, CSL’s success starts with a workplace
where our people can do their best work and continue to
develop and grow. Most of CSL’s employees work onsite
in manufacturing facilities or plasma donation centres to
produce life-saving medicines and vaccines for those we
have the privilege to serve.

The diverse perspectives, backgrounds and experiences
of our more than 32,000 colleagues around the world
strengthen our company, inspire our innovation and make
CSL an engaging place to work. Fostering a diverse and
inclusive culture helps us better understand and connect
with our donors, patients and other stakeholders.

Building a diverse workforce, inclusive culture
and equitable organisation

Our Diversity, Equity & Inclusion (DE&I) agenda focuses on
building a diverse workforce, an inclusive workplace and an
equitable organisation. Therefore, DE&I is embedded in
everything we do – from how we attract talent and support
our employees to how we engage with the communities in
which we live and work. We consider diversity in the broadest
terms, including gender, nationality, ethnicity, disability,
sexual orientation, gender identity, generation/age,
socioeconomic status, marital/family status, religious belief,
language, professional and educational background, and
cultural experience. Focusing on diversity alone is not enough.
We also invest in our culture and managers’ skills to ensure
our people feel like they belong (inclusion), and they are
treated fairly and have equal access to opportunities (equity).
CSL’s Global Diversity and Inclusion Policy is available on
CSL.com (We Are CSL > Corporate Governance > Core Policies).

We continue to make positive strides in our workforce
demographics as we aim to achieve greater diversity in the
composition of our senior executive and people manager
populations. Looking at our year-end gender composition as
of 30 June 2023, the following charts, which include employee
data from our CSL Vifor business unit since it joined the CSL
family in 2023, highlight the proportion of women and men
on the CSL Board of Directors, in senior executive positions
(senior director and above), in the role of people managers
(with three or more direct reports) as well as all employees
across the entire organisation.

Gender Composition

Board of Directors*
ASX Guidance:
30% representation
by either gender

Senior Executive*
Goal: 40% women
by FY30

People Manager*
Goal: 50% women
by FY25

All Employees*

9
Total

696
Total

4,217
Total

31,801

Total

Women 44%

Men 56%

Women 32%

Men 68%

Women 45%

Men 55%

Women 59%

Men 41%

Our DE&I Strategy focuses on three pillars with multiyear,
measurable objectives to ensure our ongoing progress.
Board of Directors*
• Diverse workforce: Build a more diverse workforce,
ASX Guidance:
30% representation
by either gender

including achieving positive progress toward gender
diversity within management and senior executive levels,
while reflecting ethnic, cultural and disability diversity,
so that we bring a wide variety of viewpoints to the
important decisions we make and problems we solve.

Senior Executive*
Goal: 40% women
by FY30

• Inclusive culture: Foster an inclusive culture in which all

9
Total

employees are respected, valued and inspired to do their
best work, including implementing an internal global DE&I
series to develop employees on inclusive behaviours and
other DE&I topics.

696
Total

• Marketplace reputation: Enhance our external reputation

by partnering with organisations and suppliers who
Women 44%
share our passion for DE&I and support us in achieving
Men 56%
our objectives.

Women 32%

Men 68%

People Manager*
Goal: 50% women
by FY25

All Employees*

4,217
Total

31,801
Total

Women 45%

Men 55%

Women 59%

Men 41%

We review our progress toward meeting our long-term DE&I
goals annually, identifying short-term objectives to address
areas where additional attention is needed. In addition, we
follow both representational data as well as key performance
indicators to ensure our talent practices are inclusive
and equitable.

* Limited assurance by Ernst & Young. Includes all employees globally

(including CSL Vifor data); % calculations exclude 264 employees
with unspecified gender. These 264 employees are excluded from
the total counts.

4040

CSL Limited Annual Report 2022/23In accordance with the requirements of Australia’s Workplace
Gender Equality Act 2012 (Act), CSL lodged its annual public
report with the Workplace Gender Equality Agency (WGEA).
A copy of this report is available at CSL.com (Sustainability >
Sustainable Workforce > Diversity, Equity, & Inclusion).

CSL is assessing the global legal landscape to capture
expanded demographic information related to multiple
diversity dimensions. This information will inform our
strategies to further build a diverse and inclusive workplace
with equitable work processes.

Our long-term gender goals

In alignment with ASX Corporate Governance Council
Principles, we have established measurable long-term
gender goals: 30% or better of each gender represented
on our Board of Directors, 50% women among our
People Manager population by 2025 and 40% women
among our Senior Executives by 2030.

Currently, our global diversity data meets reporting
requirements in various geographies and represents gender
globally, race/ethnicity in the United States and disability
status in Germany and the United States. With that, our
combined global diversity is at 69%.

CSL’s Disability Proﬁle (Germany and US)
Currently, our ethnically diverse talent represents 55%
of our workforce in the United States. Ethnicity of our
[■ Insert introductory paragraph, consistent
United States employee population follows.
with the sections above.]

Our multigenerational workforce includes employees ranging
in ages from Baby Boomer (born 1946–61) to Generation Z
(born after 2001). Millennials (born 1980-2000) form the
majority of our workforce.

White 45%

African American/Black 28%

Hispanic 17%

Asian 5%

Two or More Races 4%

Other 1%

All Employees*

Senior Executives*

People Managers*

We continue to focus on disability inclusion worldwide, and
while we look to expand our disability metrics in various
geographies soon, we currently measure our progress in the
United States and Germany. Representation of people with
disabilities is at 6% in Germany and at 8% in the United States.

Gen Y (1980-2000) 54%

Gen X (1962-1979) 35%

Gen Z (2001+) 6%

Baby Boomers (1946-1961) 5%

Gen X (1962-1979) 80%

Gen Y (1980-2000) 10%

Germany

United States

Gen X (1962-1979) 52%

Gen Y (1980-2000) 43%

Baby Boomers (1946-1961) 10%

Baby Boomers (1946-1961) 5%

All Employees*

Senior Executives*

People Managers*

Gen Y (1980-2000) 54%

Gen X (1962-1979) 35%

Gen Z (2001+) 6%

Baby Boomers (1946-1961) 5%

Gen X (1962-1979) 80%

Gen Y (1980-2000) 10%

Gen X (1962-1979) 52%

Gen Y (1980-2000) 43%

Baby Boomers (1946-1961) 10%

Baby Boomers (1946-1961) 5%

* Limited assurance by Ernst & Young. Data as at 30 June 2023

and includes all employees globally where birthday is recorded
(99.5% of population).

CSL Limited Annual Report 2022/237 CSL’s People

Providing promising futures

We want our people to have Promising Futures where they
fulfill their individual career aspirations and potential and are
inspired by a purpose-driven company with a values-based
culture. CSL continues to invest in a variety of programs,
such as health and wellness, training and development,
and rewards and recognition, that reflect our commitment
to helping employees develop and thrive.

Additionally, CSL believes in the power of education to create
opportunities and change peoples’ lives. CSL’s Promising
FUTURES Scholarship Program provides financial assistance
to employees and their dependents for technical school,
vocational school, two- and four-year colleges or advanced
education. The program was specifically designed to
support individuals from traditionally underprivileged,
underrepresented communities – those who have had to
overcome substantial obstacles to pursue their studies or
first-generation college students.

We launched the program in 2021 in the United States,
and expanded it to Australia the following year. In Australia
in 2022, we awarded two scholarships and in 2023, there
were three successful applicants. Our 2023 United States
scholarship program also included our CSL Vifor colleagues
based in the United States and garnered the highest
participation to date with 112 applicants. Of those, 70%
identified as women, <1% as nonbinary/third gender and 66%
as racially diverse. Thirty-seven scholarships were awarded.

I am so incredibly grateful for this scholarship. It will help
me complete college, with some financial burden lifted
off of my family. I will work my hardest to make sure that
CSL has made a good investment in my academic career,
as well as my future!

Davin Metcalf, Scholarship Recipient

This scholarship is confirmation to me that CSL is a great
organisation that is truly looking to invest in young people,
future leaders and folks who are interested in the life
sciences. Davin is pursuing a Biological Sciences degree
that may, one day, lead him to a company like CSL. I’m just
so pleased that CSL wants to invest in my son’s future and
is recognising him not only for his grades and academic
pursuits, but also for his leadership qualities.

Matt Metcalf, Regional Access Manager, Commercial

Attracting and advancing future talent

The company’s early career programs for STEM talent around
the globe help to build CSL’s future talent pipeline.

The Australian Graduate Program is a two-year rotational
program that focuses on attracting, developing and retaining
top graduates who are ambitious, innovative and tech-savvy.
The program offers undergraduates career opportunities
within our global businesses through cross-functional
rotations and specialised development. Since the program’s
inception, we have recruited 84 graduates with 96%
conversion into roles post-program and an 84% retention rate.

4242

CSL’s Australian Internship Program is a paid, 10-week
program for university undergraduate and post-graduate
students in their last year of study. The program provides
hands-on experience and learning and development
opportunities with exposure to various teams and functions
across the business all while working alongside and learning
from a diverse group of professionals who are leaders in their
respective fields. Interns can also apply to be considered for
early offers to join our award-winning Graduate Program in
the following year.

The EMEA Trainee Program invites candidates, who recently
graduated with a bachelor’s, master’s or doctorate degree,
to participate in a two-year, cross-functional rotation program
in the areas of Engineering, Marketing, Medical Affairs,
Manufacturing, Quality and/or Research & Development
(R&D). Candidates have an assigned mentor and take part in
a wide range of development and networking opportunities,
including leadership assessments, innovation sessions and
project management. In 2022, four of the five Graduate
Trainees, who completed the program across CSL Vifor,
CSL Behring and CSL Seqirus, have secured full-time
employment with CSL.

Our Apprenticeship and Dual Study Programs in Germany
and Switzerland strengthen our talent pipeline across
multiple functions, including Manufacturing and R&D.
Programs spanning three or four years adhere to all
applicable regulatory requirements and include personal,
professional and academic training to develop CSL’s
workforce of the future. Many of the apprentices and dual
study students continue their career within CSL. To date,
more than 100 apprentices have completed apprenticeships
in Germany and Switzerland, and 30 participants completed
the Dual Study Program. In 2022, both programs saw a
conversion rate of 80%.

Attracting students enrolled in a four-year college or
university, CSL’s North America Internship & Co-op Program
spans 12 to 26 weeks and builds on classroom theory to
provide students with practical, hands-on experiences
involving multiple CSL entities, functions and locations.
Interns and co-op participants participate in a variety of
development opportunities, including an Insights Discovery
Assessment, skill-building workshops and business-specific
training. Additionally, CSL employees serve as mentors,
offering career advice and support. This year, CSL hired
43 students across four sites in the United States.

Developing future leaders

We maintain a wide range of professional and personal
development programs to meet the evolving needs and
expectations of our leaders, whether they manage a team
or a project and need to get work done through others. From
developing strategy and executing with excellence to driving
innovation and fostering an inclusive culture, the role of a
leader has never been more critical. That is why we continue
to support the ongoing development of CSL’s leaders now
and for the future. Following are descriptions of some of our
development offerings.

Mentoring: Mentoring of people leaders is an important
component of our learning and development investments.
Currently, more than 500 colleagues – 47% of whom are
women – participate in our global mentoring program.

High Potential Talent Development: Our Executive Edge
program accelerates the development of high potential
senior leaders to help prepare them for executive roles.

CSL Limited Annual Report 2022/23The program focuses on leading strategy and people with an
enterprise and inclusive mindset and offers an immersive
in-market experience, executive exposure and networking,
and engagement in a strategic project tied to the company’s
strategy. It also includes a specialised track for female
participants, providing guidance on handling headwinds
specific to women’s career advancement, exposure to
external female C-suite executives and the opportunity for
ongoing mentoring and sponsorship. Our first cohort
completed the program in 2023 and included 23 participants,
of which 48% were women.

Leadership Development: Leadership Excellence is a
program specially designed for associate directors and
directors across all areas of our business. The curriculum
centres on leadership agility and translating future trends
into enterprise strategy. It also includes business simulations,
peer learning activities and reverse mentoring to broaden
participant perspectives. In the past year, we also launched an
alumni network to sustain cross-functional learning beyond
the program. To date, nearly 491 CSL leaders participated
across five cohorts – 50% women and 50% men of those
who declared gender identity.

Management Development: Management Essentials is a
program for managers and senior managers across all areas
of our business. Topics include the role of a leader, building
trust, communication and feedback, coaching, change and
inclusive leadership with a focus on the individual biases
that affect relationships, collaboration and performance.
Participants are provided with an immersive learning
experience for which they complete self-paced asynchronous
modules and engage in moderated chat rooms. They also
receive live virtual coaching from a dedicated expert to help
reinforce learning and its application. To date, there have
been 342 graduates (51% women, 48% men, 1% did not
identify gender) from the CSL Behring, CSL Seqirus and CSL
Vifor business units and 529 participants (67% women and
33% men) from our CSL Plasma business.

Frontline Leader Development: The Frontline Leader
program provides foundational business and people
management skills for supervisors and newly promoted
managers across the Operations organisation. Coursework
is designed to enhance leadership and management skills,
Human Resources & Legal compliance knowledge and
Enterprise Operations business acumen. Launched in 2022,
the program is offered at all CSL manufacturing sites.
By the end of the 2022/23 financial year, 1,230 leaders have
participated in the program.

Professional Development: Our Discovery program focuses
on enhancing the knowledge and capabilities of our self-led,
individual contributors through the development of their
own personal effectiveness, expanded self-awareness and
collaboration capabilities, and improved change and time-
management skills. There are 237 participants – 59% female
and 41% male – in our 2023 cohort.

Emerging Leader Development: C@talyst is an emerging
leader program run within the CSL Seqirus business across
the APAC, EMEA and Americas regions. The current cohort
of 60 is comprised of 62% women and 38% men. This program
will be scaled to additional business units across CSL in the
upcoming financial year.

Valuing colleagues’ contributions

We strive to create an environment where people excel in
their job and make meaningful contributions that drive
superior performance and sustainable growth – all while
demonstrating our CSL Values.

Over the past year, we refreshed our approach to how we
enable our people to perform at their best and reward them
for it. Updates to CSL’s performance management framework
have included:

• reinforcing our CSL Values, considering both ‘what’ our

employees contribute and ‘how’ they contribute in terms
of their behaviours;

• continuing to foster a culture of ongoing feedback and
dialogue to ensure a strong link between performance
and employee development year-round; and

• improving CSL’s Short-Term Incentive Plan, including the
ability to differentiate and award bonus amounts that
better match our employees’ unique contributions, along
with an increased maximum bonus potential for our
highest performers who achieve stretch objectives.

Our employees are well prepared to set clear goals that are
linked to company priorities, share feedback with each other
regularly and embrace development opportunities while
we work together to deliver for our patients and protect
public health.

Another way we recognise employee efforts is through
CSL’s global recognition program, Celebrate the Promise,
an online platform that enables employees and leaders to
easily recognise anyone at any time – from a simple thank
you to acknowledgement of a major accomplishment.

CSL Limited Annual Report 2022/237 CSL’s People

Each recognition is tied to one of CSL’s Values (Patient Focus,
Innovation, Integrity, Collaboration and Superior Performance).
For significant achievements, employees may receive points,
which can be used to purchase merchandise from an online
catalogue. Since launching the program in September 2020,
employees have shared more than 400,261 global recognition
moments, with Collaboration and Superior Performance
being the top two most-recognised CSL Values.

Listening to our people

We continue listening to our employees’ views on critical
aspects related to working at CSL, and each year, we invite
employees to provide feedback through our Employee
Engagement Survey. This year’s survey included our
CSL Vifor colleagues. In 2023, a record number of employees –
24,660 – shared their views on a variety of topics, including
CSL’s vision, the ability to balance work and life, collaboration
across the enterprise, demonstration of our CSL Values
and support for employee growth and development.
That number represents 76%* of our employee population,
nearly 4,000 more employee voices than we have ever
heard from before.

This year’s Engagement Index is 76.2*, relatively flat from last
year’s survey and on par with the global external benchmark
maintained by our survey administrator, Perceptyx, that
represents responses from over 11 million employees across
multiple industries and geographies. As in prior years, each
member of our Global Leadership Group analyses their
respective results to identify a few meaningful engagement
objectives and related action plans for the new financial year.
We also provide training to our people leaders, helping them
interpret team results and identify strengths on which to
build or opportunities to improve. In addition to these
ongoing efforts and new for the 2023/24 financial year, we
have established an enterprise action plan, sponsored by
senior leadership, that will focus on specific areas identified
by employees, including increased recognition of superior
performance, more leader-led communications to help our
people feel better connected to our purpose and strategy,
and continued emphasis on wellness with quarterly,
company-wide ‘No Scheduled Meetings Weeks’ to offer
employees more time on innovative solutions to challenges
as well as their own development and wellbeing.

Throughout the year, we leveraged our listening strategy
as we welcomed our CSL Vifor teammates to the CSL family,
soliciting their feedback throughout the integration process.
In addition, we conducted Values workshops to familiarise
colleagues with our company Values and the behaviours that
bring them to life.

Additionally, we are taking steps to enhance the employee
experience while meeting the evolving needs of the
organisation. We established a cross-functional, cross-
geography advisory group to provide input as we work
together to ensure that CSL’s workforce is connected,
productive, engaged and supported with critical capabilities
as the needs of our business and the future of work continue
to evolve.

Caring for our people

The health, safety and wellbeing of our people is a top priority
at CSL, and with a newly established health and wellbeing
steering committee, the company is even more focused
and coordinated in its efforts to support them. We have
implemented numerous programs designed to enhance
our employees’ physical, emotional and financial health.

4444

Some enhancements have included:

• offering employees two wellness days for the third year
in a row so they have time to focus on their physical and
emotional wellbeing when they need it most;

• expanding and modernising CSL’s global Employee

Assistance Program by providing eight behavioural health
sessions to all employees and their dependants at no cost
and with improved access to providers;

• promoting use of Headspace, a mental health and

wellbeing app, among employees in nearly all locations;

• augmenting CSL’s existing leave offerings by providing

more options to assist global caregivers with paid time off
and accommodate those who need additional time away
from work;

• reviewing and adjusting health and risk coverage in all

major geographies to ensure employees have access to
care specifically needed in light of the COVID-19 pandemic,
including coverage for death and disability, inpatient and
outpatient services, COVID-19 testing, vaccination,
telemedicine, and paediatric/maternal care;

• introducing a charitable matching contribution program

for employees in the United States and Australia;

• providing family formation benefits and gender affirmation

coverage to employees in United States locations; and

• offering employees in United States locations additional
support to help them find and pay for back-up care for
children, elders and pets.

As our people balance a variety of professional and personal
demands, we continue to support workplace flexibility. We
established a hybrid work environment for those whose roles
permit remote work, and to support those whose presence
at work is required, we embedded an ongoing emphasis on
safety and enhanced recognition for essential employees.

Ensuring a sustainable workforce

A sustainable workforce is a focus of our business growth
and future success, and it’s one of the pillars of our
Sustainability Strategy.

Over the past year, we have continued taking steps to:

• raise awareness, visibility and action, by promoting

sustainability across the end-to-end working experience;

• inform and involve employees in programs that maximise

diversity, equity and inclusion; and

• ensure employees have access and opportunity to engage
with community-giving programs and volunteering within
our communities.

We continually look for ways to engage our workforce on
relevant aspects of our Sustainability Strategy. As we further
embed activity surrounding the achievement of our
environmental targets across the organisation – from
manufacturing operations to other functions and levels of
management – there is tremendous opportunity to actively
engage our colleagues in our collective efforts. We anticipate
increased involvement across our sites as we work to establish
waste and water reduction targets whereby all our employees
can directly support their achievement.

Meanwhile, employees are enthusiastic about the company’s
sustainability efforts. According to the 2023 Employee
Engagement Survey, 76.2%* said they feel good about the
ways CSL contributes to the community – consistent with the
prior year and on par with the global external benchmark
maintained by our survey administrator.

* Limited assurance by Ernst & Young.

CSL Limited Annual Report 2022/23Over the reporting period, in Australia, we have advanced our
efforts to support reconciliation efforts with Aboriginal and
Torres Strait Islanders – the world’s oldest continuous living
culture. We have formed an employee-led working group of
14 passionate representatives from across our business units
and functions to develop CSL’s first Reconciliation Action Plan
(RAP). Working with Reconciliation Australia – the lead body
for reconciliation that aims to inspire and build relationships,
respect and trust between Aboriginal and Torres Strait
Islander peoples and non-Indigenous Australians – we seek
to launch our Reflect RAP in the second half of 2023.
Reconciliation Australia’s Reflect RAP structure provides a
robust and proven framework for scoping and developing
relationships with Aboriginal and Torres Strait Islander
stakeholders, deciding on CSL’s vision for reconciliation
and exploring our sphere of influence.

In 2022, we interviewed employees across our regions to
help shape the scope and design of expanding our workplace
giving programs beyond existing initiatives in the United
States and Australia. Additionally, we explored a range
of technology-based solutions to support the expansion.
While we consider various options, CSL continues to support
humanitarian relief efforts in geographies where our
businesses operate (see page 58 for more information).
We are excited about the prospect of enabling more
employees to engage in local community-giving efforts,
both through the donation of dollars and the contribution
of time and talents.

Promoting safety and wellbeing

CSL is committed to providing safe, healthy and secure
workplaces for our employees, other persons present on
our premises and the communities in which we operate.

Our Environmental, Health and Safety (EHS) Management
System seeks to uphold our EHS principles that aim to
keep people safe, protect the environment and build trust
internally and externally. Each year, CSL establishes robust
key performance indicators to measure our adherence to our
values and drive improved results.

The EHS team works collaboratively with site operations
management and employees to proactively identify and
correct workplace hazards and risks, strengthen
communication, define roles and responsibilities and
promote a company-wide culture of safety at all of our
manufacturing, plasma, laboratory and office locations.

Enablon®, a cloud-based EHS software solution has been
implemented across the enterprise and is available for all
employees, contractors and visitors to use for event reporting,
incident investigation, inspections, corrective measures
and metrics. Enablon® is a tool that allows CSL to standardise
and automate safety reporting and processes across
the organisation.

As part of CSL’s commitment to continuously improving our
EHS performance, CSL has updated many key aspects of the
EHS Management System. These updates include
improvements to core EHS elements of audit and
governance, management review, incident reporting
classification and escalation.

Our people are our most valuable asset. CSL continues to
develop, implement, and improve our employee health and
safety processes and programs to further promote a strong
and inclusive safety culture. In 2022/23, CSL initiated a new
global EHS committee to enhance our global health and
wellness programs, bringing together health advocates from
all over the CSL network to develop a global health and

wellness plan for deployment in 2023/24. The work in health
and wellness will be paired with an investment into CSL’s EHS
culture and employee engagement processes, to further
strength the employee experience in all areas of environmental
health, safety and sustainability.

Our Health and Safety Performance*

Total Recordable Injury Frequency Rate (TRIFR)†
(per million hours worked)

Year

22-23 Non-CSL

Plasma sites#

CSL Plasma

Fatalities
(employees and
contingent workers)^ #

Targets‡

Results‡

≤3.5

0.94

≤10.8

12.1

21-22 Non-CSL

≤3.5

1.39

Plasma sites

CSL Plasma

Fatalities
(employees and
contingent workers)^

20-21 Non-CSL

Plasma sites

CSL Plasma

Fatalities
(employees and
contingent workers)^

≤10.8

≤3.5

≤10.8

10.67

1.88

11.20

* Limited assurance by Ernst & Young.

† Total Recordable Injury Frequency Rate (TRIFR) is the rate of injuries

resulting in a fatality, lost time from work ≥ one day/shift, and
medical treatment beyond first aid calculated as TRIFR = (# Injuries)
x (1,000,000)/(hours worked). Includes employees and workers
directly supervised by an CSL employee.

‡ Data is calculated over a 36-month period of time. Data is separated

into CSL Plasma and non-CSL Plasma sites to account for the
difference in the inherent hazards in plasma collection centres as
compared to manufacturing facilities.

^ Applies globally to all operations and employees, including part-

time employees, contracted employees, contingent workers, and
temporary employees (or other individuals) whose work is directly
supervised by a CSL employee. This includes contingent workers
that perform work that is directly related to the company’s core
work and provide work direction from the Company. Does not
apply to independent contractors: who perform non-core servicing,
maintenance or construction related work. Work performed by an
independent contractor is not controlled nor directed by CSL and
its entities but by the hired party.

# Includes CSL Vifor, Switzerland manufacturing facility and head

office following the acquisition in August 2022.

While remaining low in relation to industry benchmarks,
incident rates over the reporting period in CSL’s plasma
collection centres closed the year above target. Contributing
factors include improved reporting via the deployment
of the Enablon incident reporting system software, the
continued growth of our plasma network, and the increased
onboarding (due to turnover) of new employees. Several
measures have been implemented to control the increase
in non-serious incidents, and the associated impact on CSL
Plasma’s safety performance.

CSL Limited Annual Report 2022/238 Environment

Our commitment to a healthier world means delivering for both people and our planet.
For a century we have strived to provide our life-saving medicines in an efficient, inclusive
and environmentally respectful way.

In addition to material topics featured, our strategic sustainability focus areas are listed below:

• Integrate sustainability considerations into business decisions.

• Reduce carbon emissions.

• Minimise end-to-end production of waste through removal, reduction and recycling.

• Reduce waste and emissions across our supply chain.

Promoting environmental protection

CSL recognises that responsible management and efficient use of natural resources is key to its sustainable growth and ability
to enable efficient and reliable supply of our life-saving medicines.

CSL has an Environment, Health, Safety (EHS) function, which ensures our facilities operate to industry and regulatory
standards. This strategy includes compliance with government regulations and commitments to minimise the impact of our
operations on the environment. Our EHS Management System provides the platform for policies, procedures and guidelines,
which manage our business processes.

In April 2023, CSL’s facility in Wuhan, China, was issued a violation by the environmental protection agency (EPA) for failing to
meet discharge limits of chemical oxygen demand (COD) as outlined in the site’s discharge permit. The penalty issued was
US$16,548 (RMB120,000).

Creating an impact on Earth Day

Earth Day on Saturday, 22 April, is an annual reminder of
the impact human activity has on the environment and
the need to invest in our planet to protect the future.

For Earth Day in 2023, several CSL sites across North
America took part in volunteer activities in their
communities, reinforcing both the business and
personal commitment to the environment.

South Carolina

Our CSL Plasma facility in Union, South Carolina, proudly
signed-up as part of the local county’s ADOPT-A-ROAD
program – adopting Old Petrie Road in Spartanburg,
South Carolina. The ADOPT-A-ROAD program is
designed to keep the county’s roadways litter-free.
CSL has adopted a two-mile section of road and for
the next two years will have volunteers working to pick
up litter along the roadway across the year.

North Carolina

For the second year in a row, CSL Seqirus in Holly
Springs, North Carolina, celebrated Earth Day by
helping clean up Bass Lake Park. Over 100 employees
volunteered to spread mulch and collect rubbish
on trails and along the lake.

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CSL Seqirus, Holly Springs in North Carolina celebrating Earth
Day by helping to clean up Bass Lake Park.

Illinois

At CSL Behring in Kankakee, Illinois, members of
the leadership team and EHS volunteered at the
Willowhaven Park Nature Center Earth Day event.
During the event there was a grand opening for the
new arboretum trail, a rubbish collection activity and
a children’s gardening program.

At Waltham, Massachusetts, CSL Seqirus ran a photo
contest to celebrate environmental consciousness,
sustainability and preservation. Photos of nature,
conservation efforts and environmental activism were
encouraged. The final winner was selected based on
photos demonstrating the impacts of litter and garbage
on local wildlife.

CSL Limited Annual Report 2022/23Environmental trends

Compared with the prior year, total Scope 1 and 2 greenhouse gas (GHG) emissions reduced as CSL moved to increase the
proportion of purchased electricity from renewable sources in Europe. This is notwithstanding the acquisition of CSL Vifor and
increased production volumes at some locations. There were modest increases across energy and water consumption, with
total waste and the proportion of waste recycled also increasing. This upward trend results from the addition of CSL Vifor and
the waste solvent generated at that facility, as well as waste solvent from CSL Behring sites, which is subsequently recycled
either onsite or offsite.

Our environmental performance includes data from the following operations:

• CSL Seqirus, three manufacturing facilities – Australia, the UK and the United States;

• CSL Behring, five manufacturing facilities – Australia, Germany, Switzerland, the United States and China;

• CSL Vifor, one manufacturing facility – Switzerland;

• CSL Plasma operations, including plasma centres, across China, Germany, Hungary and the United States and two major
plasma logistics centres, CSL Plasma laboratory and CSL Plasma’s saline manufacturing facility also in the United States;

• administrative and R&D operations co-located with our manufacturing facilities; and

• the respective head offices for CSL Behring (King of Prussia, United States), CSL Plasma (Boca Raton, United States)

and CSL Limited (Parkville, Australia).

This year we have also sought limited assurance on energy consumption and emissions data, including baseline data used
for the establishment of our emissions reduction targets.

Indicator

Unit

Scope 1 and 2 Greenhouse
gas emissions4

Metric kilotonnes CO2-e (KT)

Energy consumption5

Petajoules (PJ)

Water consumption

Gigalitres (GL)

Total waste

Metric kilotonnes (KT)

Waste recycling rate6

20-21 1, 2

(April to March)

21-22 1, 2
(April to March)

22-23 1, 2, 3

(April to March)

324

3.74

4.44

59.18

347

3.92

4.67

55.54

336*

4.21*

4.86

72.00

1 Data reported are inclusive of CSL Behring and CSL Seqirus manufacturing facilities, CSL Plasma network and CSL Behring headquarters.
2 CSL Plasma uses validated factors to calculate electrical power, gas and water consumption. Utility invoices were used to establish these

factors and calculate natural gas, electricity and water consumption for all CSL Plasma centres. Utility invoices were also used for CSL Plasma
Logistic centres, CSL Plasma Laboratories and the Union manufacturing facility (United States). CSL Plasma uses the contracted waste hauler
monthly data to calculate the total yearly waste impact. In the absence of hauler information, a factorial is applied to calculate the estimated
waste impact per volume of plasma collected.

3 Includes CSL Vifor manufacturing facility in Switzerland following acquisition in August 2022.
4 The majority of greenhouse gas (GHG) emitted from CSL’s operation is carbon dioxide (CO2). In most jurisdictions GHG emission factors used
by CSL calculate carbon dioxide, nitrous oxide and methane emissions. Total emissions are expressed as carbon dioxide equivalents (CO2-e).
5 Includes Scope 1 and 2 energy sources. Scope 1 energy sources are fossil energy sources supplied or used onsite, including fleet fuel use. Scope

2 energy sources are electricity and steam supplied to site, as well as chilled water and compressed air.

6 The recycling rate represents the proportion of total waste generated that is either reused or recycled onsite or offsite.

* Limited assurance by Ernst & Young.

CSL’s Scope 1 and 2 emissions profile

Scope 1 greenhouse gas emissions are direct emissions from CSL activities. CSL’s Scope 1 emissions primarily come from
the combustion of fossil fuels. The greatest proportion of these emissions come from burning natural gas to generate steam
at manufacturing facilities. Scope 2 emission are from purchased electricity and to a lesser extent purchased steam, cooling
water and compressed air. Manufacturing sites in Germany, Switzerland and the UK currently purchase electricity specifically
from renewable sources. In 2022/23, 17% of the electricity purchased by CSL was from renewable sources.

CSL Limited
GHG (CO2-e) 2022/23

Scope 1 34%
Scope 2 66%

CSL Limited Annual Report 2022/238 Environment

CSL’s baseline numbers for emissions reduction targets

Scope and
baseline year

Scope 1 and 2 CO2-e (direct and indirect emissions
from sources controlled/owned by CSL e.g., natural
gas or electricity) based on average annual emissions
across fiscal years 2018/19, 2019/20, 2020/21

CSL’s target

40% reduction by 2030

Scope 3 (indirect emissions generated by our supply
chain/third parties) CO2-e as of 30 June 2021

For at least 67% of emissions, applicable third parties
have set science-based Scope 1 and 2 targets by 2030

Baseline
(number)*

Boundary/
description

342 kilotonnes of CO2-e*

2,284 kilotonnes of CO2-e*

Baseline includes CSL Behring and CSL Seqirus
manufacturing facilities, CSL Plasma network and
CSL Behring headquarters.

Scope 1 and 2 baseline does not include CSL Vifor
as it represents a fraction of overall emissions.

Baseline includes the following Scope 3 categories
1. Purchased goods and services 2. Capital goods
3. Fuel and energy-related activities (not included
in Scope 1 or Scope 2) 4. Upstream transportation
and distribution 5. Waste generated in operations
6. Business travel 7. Employee commuting 8. Upstream
leased assets 9. Downstream transportation and
distribution 11. Use of sold products 12. End-of-life
treatment of sold products.

Baseline excludes the following emissions categories
as CSL does not have significant emissions in these
categories: 1. Processing of sold products
2. Downstream leased assets 3. Franchises
4. Investments.

Baseline was calculated using spend based or
activity-based methods where data is available.
Spend based methods included data from CSL Vifor
in the baseline. Baselines are an average of FY19-21
data where available and applicable. An average
approach was taken to provide as representative as
possible a baseline over the period impacted by the
COVID-19 pandemic. In some categories only 2020/21
activity data was available for baseline calculation.
Business travel baseline was calculated based on
FY19 data to reflect the emissions baseline prior
to the impact of the pandemic on travel.

Estimating Scope 3 emissions is a complex task
requiring assumptions and collection of data from
multiple sources. The estimates are therefore subject
to significant uncertainties. We will continue to improve
the accuracy and transparency of our Scope 3 emissions
calculations and our understanding of our Scope 3
emissions profile.

* Limited assurance by Ernst & Young

Energy and emissions

The main sources of energy for CSL’s manufacturing facilities
are electricity and natural gas. Steam is imported to our
Wuhan, China, and Marburg, Germany, facilities as an energy
source. Chilled water and compressed air are also supplied
to the Marburg facility. Small amounts of diesel, gasoline
and heating oil are also used as energy sources. For our CSL
Plasma network of centres, electricity is the main source
of energy. Combined, our manufacturing facilities and
CSL Plasma’s centres contribute most of CSL’s energy
consumption and therefore greenhouse gas emissions.

In August 2022, CSL announced emissions reduction targets
that aim to serve as a tangible and transparent roadmap by
reducing its direct and indirect emissions footprint.

By 2030, CSL aims to:

• target a reduction of 40% of absolute Scope 1 and 2
emissions against a baseline of the average annual
emissions across fiscal years 2019–2021; and

• engage with suppliers who contribute 67% of Scope 3

emissions to set Scope 1 and 2 reduction targets, aligned
with science-based targets.

To further demonstrate our commitment to minimising our
impact on climate change, in June 2023, CSL committed to
set near-term company-wide emissions reductions in line
with the Science Based Targets initiative (SBTi), paving the
way for the validation of our contribution towards minimising
global temperature increases to 1.5°C.

4848

CSL Limited Annual Report 2022/23New headquarters achieves green
design certification

In September 2022, the Green Building Council of Australia certified CSL’s new Global Headquarters and Centre
for R&D in Melbourne with a 5-star rating under its Green Star rating system. This design certification signifies that
our new global headquarters represents ‘Australian excellence’ in environmentally sustainable building practices.

The Green Star rating is an internationally recognised system for setting the standard for healthy, resilient, positive
buildings and places, and rewards buildings that reduce the impact of climate change, enhance health and quality
of life, and contribute to maintaining a sustainable economy.

Some of the sustainability features that helped achieve the 5-star certification include:

• sourcing of building materials from responsible manufacturers;

• recycling of building materials and diverting of construction waste from landfill;

• electrical vehicle charging stations available in the car park;

• optimised building insulation and glazing to reduce heating and cooling loads;

• facade designed to reduce the need for artificial lighting;

• highly efficient lifts with regenerative braking;

• water-efficient bathroom facilities and irrigation systems; and

• flicker-free lighting, and the minimisation of glare through windows.

CSL is aiming to obtain a 5-star Green Star as Built rating to validate the sustainability credentials of our new global
headquarters post occupation.

CSL Limited Annual Report 2022/238 Environment

Targets and milestones achieved over the reporting period

Scope

Target

40% reduction by 2030
on baseline (335 kilotonnes of CO2-e)

For 67% of emissions, applicable
third parties have set science-based
Scope 1 and 2 targets by 2030

Key
abatement
levers over
the target
timeframe

• Increased energy efficiency

• A push towards more

• Revised procurement standards

• Best-in-class facility design for

greenfield sites and new buildings

• Switching fuels to less carbon

renewable power

• Re-designing some
manufacturing sites

and award criteria

• Supplier enablement through

advocacy and education

intensive energy sources

• Increased energy efficiencies

• Strategic partnerships to innovate

(for Scope 1)

and collaborate

Key
achievements
for 2022/23

• Portfolio of initiatives established
for the 2023/24 financial year,
including the allocation of relevant
capital expenditure.

• Commitment letter submitted to

Science Based Targets initiative for
CSL’s near-term 2030 emissions
reduction targets.

• Request for proposal for a power
purchase agreement covering all
of CSL Australia’s manufacturing
facilities issued.

• Transition to renewable energy
for CSL’s manufacturing facility
in Marburg, Germany, therefore
achieving 100% renewable
electricity purchased from
certified sources across CSL’s
European manufacturing facilities.

• Finalised energy efficiency
initiatives to be included in
design at CSL’s new facility
at Tullamarine, Australia.

• Finalised supplier engagement plan.

• Developed and launched supply
standards and communication
materials for supplier outreach.

• First of four waves of supplier
communication has been
completed, representing 8% of
CSL’s total Scope 3 emissions.
This initial wave revealed that all
suppliers targeted have set SBTi
or science-based aligned targets,
or plan to set SBTi or science-
based aligned targets by 2024.

Portfolio and program governance system implemented for target achievement

• Established a robust governance and portfolio management system to facilitate the right initiatives being

executed at the right time to maximise benefit. The system aligns decision making at an enterprise and site
level and ensures sustainability benefit is monitored and verified to achieve our emission reduction targets.

• This year we have also sought limited assurance on energy consumption and emission data, including baseline

data utilised for the establishment of our emissions reduction targets.

• Over the reporting year an independent review of the climate program was undertaken to facilitate effective
governance and control. Overall controls and effectiveness were considered good (fourth rating from five
options, with the fifth rating being excellent) with the only two findings for management’s consideration rated
as low priority.

Definitions

Scope 1 controlled by the company, for example, emissions from combustion in owned or controlled boilers,
furnaces, or vehicles.

Scope 2 emissions are released as a result of one or more activities that generate electricity, heating, cooling
or steam that is consumed by the facility, but that do not form part of the facility.

Scope 3 emissions are the result of activities from assets not owned or controlled by the reporting organisation,
but that the organisation indirectly affects in its value chain. Scope 3 emissions include all sources not within
an organisation’s Scope 1 and 2 boundary.

5050

CSL Limited Annual Report 2022/23Supplier engagement on CSL’s
Scope 3 emissions

Last year, CSL announced its intention to engage suppliers who contribute 67% of its Scope 3 emissions to set
science-based targets aligned Scope 1 and 2 reductions by 2030.

In support of achieving this target, CSL has developed a dedicated supplier engagement program to firstly identify
suppliers who have set or are planning to set science-based targets and secondly, to educate and partner with
suppliers who have not set targets to support them on their emissions reduction journey.

In late 2022, CSL initiated the first wave of communication targeting a small number of suppliers. All suppliers
targeted in this first wave, representing 8% of CSL’s total Scope 3 emissions (as at 30 June 2022) have set or plan to set
science-based targets, by 2024. We have already initiated wave two of supplier engagement, targeting 72 suppliers.
We anticipate communicating with more than 400 suppliers by the end of financial year 2024.

Each year CSL aims to recalculate our Scope 3 baseline to understand our total Scope 3 emissions profile and adjust
our supplier engagement strategy to target strategic, ongoing suppliers. Furthermore, we aim to validate supplier
data sets utilising the SBTi dashboard and CDP’s annual climate change questionnaire. For more than 10 years CSL
has participated in annual CDP climate change and water submissions and aims to encourage suppliers to
do the same via CDP Supply Chain.

CSL Vifor incentivising employee mobility
to reduce emissions

Apart from industrial manufacturing processes and the use of office buildings, employee mobility also generates
greenhouse gas emissions, either through business travel or commuting. Internal data at CSL Vifor suggested that,
over the last years, the emissions caused by business travel and commuting by employees from our manufacturing
operations and associated offices was roughly equivalent to the total emissions generated by the manufacturing
facility alone.

In response to these findings, CSL Vifor took a targeted approach to better manage its business travels and
introduced a range of measures to reduce the number of work-related flights. This includes continuous investments
in video conferencing technology, stricter flight approval rules, streamlining the internal flight management system
and the use of climate-focused analytical tools.

Additionally, to encourage employees to rethink how they are coming to work every day, St Gallen, Switzerland,
introduced several initiatives geared towards environment-friendly transportation and commuting solutions.
These include an app-based car sharing platform (Comovee), an annual Bike-to-Work month, a shuttle service
from the site to the train station, or e-bike discounts to employees.

In 2022, all St Gallen-based employees were offered a two-week trial subscription for public transportation to
reassess their commuting habits. More than 50 employees participated in this initiative. A follow-up program
is already planned.

These measures are a step in the right direction towards supporting achievement of CSL’s
environmental objectives.

Climate change and resilience

Climate change affects all aspects of businesses and
communities, both directly and indirectly, with the severity
varying significantly by region. A warming planet increases
the risk of wildfires, rising sea levels, extreme heat, severe
weather and droughts. These hazards can have a direct effect
on population health and further stress healthcare infrastructure,
including the network of global manufacturing facilities and
warehouses used by CSL in the production of life-saving
medicines and therapies.

CSL has taken actions to proactively mitigate and adapt
to climate change. Recent efforts include undertaking an
enterprise-wide climate risk and opportunity assessment
in 2022 using the IPCC Sixth Assessment Report (IPCC AR6)
across our most critical infrastructure: our manufacturing

facilities and warehouses. The assessment focused
on a near-term time horizon of 2030, in line with CSL’s
2030 Strategy.

CSL has assessed the impact of climate risk on its financial
reporting. The impact assessment principally focuses on key
judgement areas, being the valuation and useful lives of
intangible and tangible assets and the identification and
valuation of provisions and contingent liabilities. No material
accounting impacts or changes to judgements or other
required disclosures have resulted from the assessment.
While the assessment did not have a material impact for the
year ended 30 June 2023, this may change in future periods
as CSL regularly updates its assessment of the impact of the
lower carbon economy.

CSL Limited Annual Report 2022/238 Environment

Over the reporting period, CSL has also commenced the
integration of physical risks into existing operational risk
management practices in accordance with the Enterprise
Risk Management Framework, so that the facilities can
monitor and manage risks as applicable to their location and
operations. For transitional risks, rather than managing these
at the local level, we have taken an enterprise view as these
risks generally span the network of facilities directly owned
by CSL.

This year CSL also published an updated Climate Change
Statement, reaffirming our aim to reduce emissions to limit
global warming to 1.5ºC in line with the Paris Agreement.

pharmaceuticals. Disposal of packaging presents particular
challenges for pharmaceutical companies because
packaging such as single-use plastics, glass syringes and vials
that must be disposed of in a safe manner.

CSL’s operations in Europe dispose of almost all waste by
recycling or incineration. In Australia, CSL is a signatory to the
Australian Packaging Covenant and reports regularly on plans
and progress to minimise waste. There is also a wide variety
of waste recycling programs at our United States facilities.
However, more can be done to reduce waste to landfill across
our Australian and United States operations and this remains
a focus area for CSL in the near-term.

You can find more information on the approach, including
scenario analysis undertaken in 2022, on CSL.com
(Sustainability > Environment > Climate resilience).

CSL is continuing to identify and implement methods to
reduce the amount of materials used for the packaging
and distribution of its products as detailed following.

Waste and packaging

CSL’s objective is to reduce the amount of waste that is
generated throughout the production and use of all products;
to reuse and recycle waste as far as possible; and to dispose
of the residual waste responsibly. The amount of waste
produced and how it is handled varies between CSL’s
different facilities according to production processes and
available disposal options. Compared with the prior year, our
waste recycling rate increased by 6% to 44% of total waste.

A large part of the waste stream is made up of glass, plastics,
cardboard, wooden pallets and other types of packaging,
which is necessary for ensuring product safety of

• The new function, Packaging Innovation, is dedicated

to evaluating and planning the introduction of
sustainable materials.

• The use of sustainable materials in packaging development

is prescribed in our procedures.

• Size reduction of current packaging is also taken into

consideration when current packs are adapted.

• Paper patient information leaflets have now been

completely removed for our Behring products on the
Japanese market. The leaflet removal will now continue
for other markets and products from the whole of the
CSL organisation.

Ethanol recovery by distillation

The case of the ethanol recovery by distillation program
at CSL Behring, Broadmeadows, Australia, is a
sustainability win on various fronts. It’s a compelling
example of:

• collaboration to leverage expertise and lessons
learned among CSL manufacturing sites across
the globe – Australia, China, Switzerland and
the United States – to achieve the successful
deployment of a replicable solution;

• improving economic efficiencies; and

• achieving significant waste reduction.

It reveals how global collaboration can make difficult
problems much easier to tackle and solve. It also
showcases CSL’s commitment to identifying and
directly addressing and reducing environmental
impacts through a reduction of natural resource
usage and of emissions from truck deliveries.

Engineers at CSL Behring Broadmeadows, Australia,
collaborated with sites in Switzerland and the United
States and built upon their collective design and
operational experience because these sites already
performed ethanol recovery. Ethanol is a critical agent
used in the plasma fractionation process. After
separation of proteins from the blood plasma, a waste
solution containing large amounts of ethanol remains.
The distillation process uses a column, reboiler and
condenser to recover ethanol from the waste solution.

5252

The recycling of recovered ethanol also reduces
consumption of raw materials required for ethanol
production. It has also led to a significant increase in
economic efficiencies and a reduction in emissions
from transportation deliveries.

Overall, ethanol recovery at rates ≥ 90% help achieve the
following benefits:

• reduction of trucks traveling to the site: eliminated

more than 270 truck movements to/from site per year;

• reduction in waste (~9,500 t. of liquid industrial waste

per year); and

• a reduction of over 140,000 kms of truck movements

on roads per year.

CSL Limited Annual Report 2022/239 Social

Our greatest opportunity to contribute to society is through the development of new
therapies for serious unmet medical needs and through the continued supply of life-saving
vaccines and plasma and protein-based therapies.

From developing new, innovative therapies for diseases to enabling greater access to life-saving vaccines, protecting the safety
and wellbeing of our patients and communities around the world is at the centre of our purpose as a business. This includes
a commitment to a positive experience and the trust of our donors, who make vital therapies possible, and to continuous
engagement with the stakeholders we depend upon to fulfill our promise.

In addition to material topics featured, our strategic
sustainability focus areas include:

• strengthening societal health through access
to our existing products and therapies and
investment in innovation;

• being trusted by donors through a focus on
their experience and wellbeing, and their
communities; and

• enhancing our industry position as a patient-

focused and public health leader.

Product safety and quality

The development, manufacture and supply of high-quality
and safe products is critical to CSL’s ability to continue to
protect public health, save lives and improve the health
and wellbeing of patients with rare and serious diseases.
CSL employs an independent quality function that strives
to maintain the highest standards through the use of
global quality standards and systems. These are reflected
in global policies and global and local procedures, as well
as global electronic systems to support management
of the quality processes.

In 2022/23, CSL’s quality systems, plasma collection and
manufacturing operations were subject to 473 regulatory
agency inspections around the world. Of these, 21 good
manufacturing practice (GMP) regulatory agency inspections
took place at our manufacturing facilities and 452 regulatory
inspections at our plasma collection centres. These 473
independent inspections resulted in no critical findings that
prevented release of commercial product and no suspensions
or terminations of licenses to market any products in markets
in which CSL is active.* These results confirm that the quality
systems established globally by CSL are effective and in line
with regulatory agency expectations.

In November 2022, as a precautionary measure, one CSL
Behring lot of PRIVIGEN® was recalled from the Canadian
market due to a higher rate of allergic/hypersensitivity type
reactions.* Hypersensitivity and anaphylactic reactions are
a known risk with immunoglobulin products. In June 2023,
CSL Behring, in coordination with local health authorities,
initiated a recall of one batch of CSL Behring product from
the Czech and Saudi Arabian markets due to a media fill
failure*. In June 2023, one CSL Seqirus lot of Tiger Snake
Antivenom was recalled from the Australian market due
to a slightly lower out of specification result for potency*.

This year, there were 11 counterfeit products reported to
and confirmed by CSL Behring. CSL Behring is evaluating
opportunities to increase the security of packaging solutions

US$13.2 billion

over the reporting period distributed in
supplier payments, employee wages and
benefits, shareholder returns, government
taxes and community contributions*

* Limited assurance by Ernst & Young.

to prevent counterfeiting. In addition, CSL Behring is working
with health authorities to raise awareness and educate
customers on how to identify, handle and report suspected
counterfeit products.

During the fiscal year, CSL commenced the integration of
CSL Vifor into the CSL Group. From a quality perspective, CSL
Vifor is in the process of being integrated into the CSL Quality
Management System whilst upholding a full functioning
and compliant system in the CSL Vifor business. Over the
reporting period, CSL Vifor was subject to two GMP regulatory
agency inspections with no critical findings that prevented
release of commercial product, no suspensions or terminations
of licenses to market any products in markets in which CSL
Vifor is active.*

475

regulatory inspections resulted in no critical
findings that prevented release of commercial
product, no suspensions or terminations of
licenses to market any products in markets
in which CSL is active.*

In addition, over the financial year, CSL Behring and CSL
Seqirus pharmacovigilance and regulatory quality assurance
(PVRQA) performed a total of 91 pharmacovigilance (PV) audits:

• 23 on internal systems and processes across our sites,

including affiliates; and

• 68 on third parties that undertake PV responsibilities on

CSL’s behalf in various countries all over the world.

None of these audits resulted in an outcome which affected
CSL’s ability to supply product.

CSL Behring underwent several good manufacturing
practice inspections which focused on patient safety and
pharmacovigilance. None of these inspections resulted
in an outcome which affected patient safety or resulted
in critical findings.

* Limited assurance by Ernst & Young.

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CSL Limited Annual Report 2022/239 Social

Supply continuity and resilience, including human
rights and responsible supply chain

CSL has a standardised global approach to managing
supplier qualification to ensure the high quality of purchased
GxP^ materials and services as well as ensuring quality
oversight of outsourced activities. To assure continued
consistent high-quality materials from our partners, CSL
collaborates and partners with critical suppliers and routinely
conducts quality audits worldwide.

The continued growth of partner-delivered commercial
manufacturing services to CSL necessitated the establishment
of a formal leadership capability. CSL has put in place a
cross-functional External Plant Leadership Team that mirrors
the capability of an internal CSL site in order to deliver the
same high quality and reliable product supply to the network.
Several new partnerships entered the commercial supply
phase, such as our leading gene therapy HEMGENIX®, which
continues CSL’s strategy to leverage top-tier strategic
partnerships and spread single-sourced product supply risks
over multiple manufacturers. These partnerships also deliver
greater capacity to support CSL’s growth plans.

Many projects continue in various stages of the technology
transfer and when delivered will further increase supply
reliability, needed capacity and resilience of CSL’s most
important product supply chains.

Over the reporting period, CSL continued to evolve its
third-party risk management (TPRM) digital tool by means
of additional questions for environment health and safety
and supply chain legislation screening, and a wider use
of the industry recognised EcoVadis tool for environmental
vendor assessments.

CSL has significantly accelerated the use of the TPRM tool
and have now loaded 883 vendors over the reporting period.
The on-boarding process has also started of CSL’s most
critical incumbent vendors, none of whom is categorised
as high risk.

CSL has also implemented a vendor program to address CSL’s
Scope 3 requirements and have made good progress towards
our goals.

We continue to refine our tools and this level of effort reflects
our focus on understanding our suppliers and our
commitment to enabling a reliable supply of our therapies.

In December 2022, CSL’s third, Board-approved, public
Modern Slavery Statement under Australian law and was
published on CSL’s website and by the Australian regulator.
CSL continues its membership of the Pharmaceutical Supply
Chain Initiative (PSCI), which provides opportunity to
collaborate with like-minded organisations across a number
of social and environmental aspects, including human rights
and labour practices.

Anyone with information about potential misconduct is
encouraged to ‘Speak Up’ under the CSL Speak Up Policy.
This includes all of CSL’s current and past employees,
directors, contractors, customers, suppliers and associates.
All reports made under this policy are received and treated
sensitively and seriously, and dealt with promptly, fairly
and objectively.

From 1 July 2022 to 30 June 2023, no reports related to
human trafficking or slavery and forced labour in CSL’s global
operations were received.

^GxP refers to a number of good practice standards applicable
to the pharmaceutical industry.

5454

Further, in December 2022, CSL published a standalone
Human Rights Statement. The Statement, which builds on
human rights elements detailed in our Code of Responsible
Business Practice, was communicated to employees on
World Day for Safety and Health at Work – a United Nations
day of observance (28 April 2023).

You can find CSL’s Human Rights Statement and modern
slavery response on CSL.com (Sustainability > Social).

Health security

A measure of the trust CSL has built with its stakeholders
is our position as a global leader in influenza pandemic
preparedness and response. Thirty countries around
the world rely on CSL Seqirus for pandemic influenza
preparedness, including the United States, the UK
and Australia. CSL also provides pandemic response
commitments to the World Health Organization.

CSL Seqirus has state-of-the-art manufacturing facilities on
three different continents, together with a global fill and
finish network located close to end markets. Our government
partners reserve pandemic vaccine doses from these facilities
to protect their populations in the event of an influenza
pandemic. CSL Seqirus also supplies pre-pandemic vaccine
stockpiles that could be deployed to first-responders upon
a declaration of an influenza pandemic.

In 2022/23, there were increased reports of highly pathogenic
avian influenza A (H5N1) virus infections in wild birds, poultry
and some mammal populations around the world, leading to
frequent engagement with our government partners about
the emerging epidemiology, our licensed H5N1 vaccine, and
our ability to manufacture and distribute with speed because
of our global seasonal influenza vaccine throughput.

To further enhance the ability to protect public health, CSL
Seqirus entered into a five-year partnership with Pandemic
Institute in Liverpool, UK, which will deliver on a number
of joint projects, such as modelling the spread and impact
of avian influenza ahead of a potential pandemic.

Access to our products

CSL products provide substantial and meaningful value to
patients, healthcare providers, health insurance payers and
healthcare systems around the world.

CSL is proud of these contributions and seeks to ensure that
patients and communities have access to a reliable supply
of biopharmaceuticals and vaccines.

As CSL continues to develop and commercialise
biopharmaceutical innovations which evolve the treatment
paradigm, such as gene therapy, we are committed to
working with governments, payers, and other stakeholders
to design new payment and access solutions that reflect
value and that meet the needs of individual patients and
healthcare systems. CSL also continue to work with
governments, health insurance payers and other stakeholders
to support timely and appropriate market entry and access,
to enable patients to benefit from our therapies as quickly as
possible. We value an ongoing dialogue with policymakers,
advocacy groups, and other stakeholders to understand and
respond to their needs and expectations.

We articulate and communicate comprehensive evidence
on the value of our innovations to inform access and
reimbursement decisions, and we provide patient assistance
programs and support advocacy efforts that improve access
to care and affordability.

CSL Limited Annual Report 2022/23US$13.7 million

supporting product access across the world*

CSL is also committed to pricing practices that reflect the
value our products bring to patients and society. To that end,
we evaluate real-world and clinical trial data that demonstrate
the clinical benefits our therapies deliver, as well as the cost
savings they provide to overall healthcare. We also consider
patient needs and preferences and how our therapies
improve patients’ quality of life and productivity.

*Limited assurance by Ernst & Young. Dollar value is a subset of CSL’s
total community contributions.

In 2022/23, CSL’s investment in humanitarian access
programs and product support initiatives totalled
US$13.7 million.* In the United States, access programs
are critical to patients who are uninsured, underinsured
or who cannot afford therapy.

As a member of the International Federation of
Pharmaceutical Manufacturers Association (IFPMA), CSL
Seqirus contributed to the development of the Berlin
Declaration, which draws on the lessons learned from the
COVID-19 pandemic and sets out an approach for more
equitable pandemic preparedness and response and calls
for contributions from a global collaboration of public, private
and charitable sectors together with civil society.

The Berlin Declaration is being used in discussions with
WHO and Member States as they negotiate a new Pandemic
Accord and describes key enablers to equitable access across
low-, middle- and high-income countries, including respect
for intellectual property rights, robust surveillance and rapid
sharing of pathogens, regulatory speed, country readiness
and maintaining open borders.

Improving access in developing countries
for patients with bleeding disorders

In support of our focus areas for improved access to our therapies, last year, CSL Behring announced a significant
new partnership with the World Federation of Haemophilia (WFH).

In 2023, CSL began its five-year commitment to donating 100 million international units (IUs) of coagulation factor
therapy per year for five years to the WFH as part of CSL’s continued support of the WFH Humanitarian Aid Program.
The donation, which includes product specifically manufactured for the purposes of being donated, will have a
standard shelf life of three years, enabling greater access to these life-saving therapies for people around the world.

In January 2023, CSL Behring initiated the first of two deliveries of 50 million IUs to the WFH. The donation is destined
to help people living with a bleeding disorder (haemophilia A) in more than 60 developing countries. In addition to
the product donation, CSL Behring provided financial support for logistics costs and training programs designed to
address unmet needs for people living with haemophilia who are undiagnosed, untreated or undertreated.

CSL Behring’s contributions to the WFH Humanitarian Aid program make life-changing improvement to people
with no access to care for bleeding disorders. For example, CSL Behring’s 2022 WFH Stewardship Report outlines
the following impact (data based on donations received in calendar year 2022, prior to commencement of CSL's new
five-year commitment):

15,601,000 IUs
of coagulation
factor donated

In 2022

9,375
patients treated
(cumulative
from 2016)

4,219
patients treated
(in calendar
year 2022)

18
developing countries in receipt of CSL Behring’s donated coagulation factors including,
Afghanistan, Angola, Bangladesh, Cuba, El Salvador, Eritrea, Gambia, Ghana, India, Jordan,
Lebanon, Mongolia, Nepal, Palestine, Rwanda, Sri Lanka, Syria and Zambia

474
surgeries
supported

1,474
patients on
prophylaxis (to
prevent bleeds)

6,705
acute bleeds
treated

To learn more about the WFH Humanitarian Aid Program, please visit wfh.org/humanitarian-aid

5555

CSL Limited Annual Report 2022/23
9 Social

The role of real-world evidence in driving
vaccine value and access

The influenza virus can change significantly each year, making it critical for CSL Seqirus to assess seasonal vaccine
effectiveness through real world evidence (RWE), year after year.

As a company on the front line of influenza prevention, CSL Seqirus is committed to using RWE to continually
evaluate the clinical benefit and cost effectiveness of our innovative seasonal influenza vaccines compared to more
traditional options. RWE can be a valuable tool in helping health agencies make decisions about which influenza
vaccines to recommend for certain populations, providing access for the most vulnerable groups through
government-funded immunisation programs.

In October 2022, CSL Seqirus undertook a modelling study using RWE to understand the impact of co-circulation of
influenza and COVID-19 on healthcare resources in the winter months in the UK. The study, now published, is helping
governments understand the pressures their healthcare systems will be placed under and the broader value of
robust immunisation program as we learn to adjust to this new reality.

In March 2023, CSL Seqirus partnered with a member of the European Parliament to produce a multistakeholder
symposium at the European Parliament entitled ‘Better Decision-Making for Better Outcomes: Harnessing the
Power of RWE’ at which a European Union-wide call to action for more systematic use of RWE by policy makers,
regulators and payers was launched.

CSL Vifor’s commitment to patients
through the Patient Academy

The CSL Vifor Patient Academy offers employees the unique opportunity to learn directly from patient representatives
about the disease burden they carry and the importance of involving patients’ insights in key strategic decisions
from clinical development programs to the development of patient support programs. When engaging directly with
patients, we follow strict engagement protocols and apply standardised remuneration principles. Patient safety is
a top priority. We have strict drug safety and reporting processes in place, ensuring that patients using our products
benefit safely from them. Scientific activities are performed in a patient-centric manner and according to
internationally established standards.

In its fourth year, the CSL Vifor Patient Academy continued to evolve in 2022. It includes:

• 35 patient ambassadors who participated in numerous events and provided input into internal processes;

• five global educational events that were organised throughout the past year with patient involvement focusing

on nephrology, heart failure, rare disease and iron deficiency to raise awareness amongst employees;

• two digital campaigns sponsored by CSL Vifor in 2022 for Rare Revolution Magazine to increase understanding

of the burden of disease for IgAN and vasculitis; and

• seven roundtables with heart failure patients working groups from across Europe organised by the

Patient Academy.

Under the umbrella of the Academy, a whitepaper entitled ‘Heart Failure, an inconvenient truth’ was published
in September 2022 with the aim to advocate for a better quality of life in heart failure. This whitepaper is based
on a pan-European survey among more than 600 heart failure patients and has been developed together with
the following stakeholder groups: CSL Vifor, Pumping Marvellous (UK), AVEC (France), Herzschwäche Deutschland
(Germany), and The Patients Voice (Netherlands) and Vintura (Netherlands). For this project, CSL Vifor was awarded
SILVER by the Patient Partnership Index 2022.

5656

CSL Limited Annual Report 2022/23Plasma donors

CSL Plasma donor experience and profile

People who donate plasma at one of the 342 CSL Plasma
centres around the world are the real heroes. They allow
tens of thousands of people worldwide to live normal,
healthy lives – despite being impacted by rare and serious
medical conditions.

The socio-demographic background of United States CSL
Plasma donors remains diverse. Based on self-reported survey
data administered through the newly deployed CSL Plasma
mobile app (1 July 2022 to 30 June 2023), CSL Plasma donors
provided details on their occupational status:*

• 55% described themselves as working full-time.

• 19% described themselves as unemployed, inclusive

of full-time parents, donors who are not looking for work
or the unemployed.

• 15% described themselves as part-time.

• 3% described themselves as students.

• 8% described themselves as other (e.g. military, retired).

Of those plasma donors surveyed, 94% are willing to donate
again, and 91% of plasma donors are willing to refer a friend
to donate plasma at their CSL Plasma centre.*

94%

of plasma
donors are
willing to
donate again*

91%

of plasma donors
are willing to refer
a friend to donate
plasma at their CSL
Plasma centre*

* Limited assurance by Ernst & Young. CSL Plasma updated post-
donation survey questions in September 2021 to use a Likert
response scale from a prior yes or no answer. Data is based on
3.5 million survey responses. The percentages for willing to donate
and refer a friend are comprised of total number of respondents who
selected the top two (4 and 5) of five numbers on the Likert scale.

As one of the world’s largest producers of plasma-derived
therapies and a leader in plasma collection, CSL Plasma
commits to excellence and innovation across the full cycle
of plasma donation, from donor screening throughout the
donation process and across plasma testing and logistics.
About 15,000 CSL Plasma employees take responsibility for
ensuring safe, quality plasma is available to be manufactured
into life-saving therapies.

CSL has strengthened and grown its plasma collection
footprint to support a safe and positive donor experience,
while providing a reliable plasma supply as the needs of
patients who require these therapies have increased.
Appropriate donor screening and safe, compliant and
efficient plasma collection both remain integral to a
continuous quality supply of the starting material for the
manufacture of plasma-derived therapies.

Not only does each CSL Plasma centre provide plasma as the
foundation of life-saving and life-enhancing therapies, they
also contribute positively to local communities, supporting
donors and benefitting the surrounding area. For a third
year, CSL Plasma provided vouchers to United States plasma
donors for influenza vaccines at a local pharmacy at no cost
during the United States autumn and winter seasons. A
mature centre that has operated for more than three years
provides approximately 50 jobs, of which a majority are
full-time, and contributes nearly US$6 million per centre
in employee payroll and donor payments.

CSL Plasma began implementation of the new Rika Plasma
Donation System in August 2022 as part of a limited market
release at centres starting in the Denver area in the United
States, with plans to continue rollout of the device to other
United States locations. Developed by Terumo Blood and
Cell Technologies, the Rika system achieved regulatory
clearance with the US Food and Drug Administration (FDA)
in March 2022.

In May 2023, CSL began working with Terumo on the clinical
trial to evaluate an investigational individualised nomogram;
a nomogram is the target collection volume the device is
approved to for each procedure. Upon regulatory clearance,
the new nomogram can be used with the Rika system.

The Rika system supports a safe, efficient and improved
experience for plasma donors and an improved employee
experience including the features detailed below.

• It completes one plasma collection in 35 minutes or less on

average. When considering prior average CSL Plasma
donation times, this could represent a nearly 30% reduction
in average donation time for donors.

• There is not more than 200 millilitres of blood outside the
donor’s body at one time. This is expected to improve the
donor’s comfort during the donation and reduce
occurrence of a red cell loss deferral.

It is designed with an advanced user interface to guide CSL
Plasma front-line operators, as well as status indicators that
inform donors and employees of donation progress.

5757

CSL Limited Annual Report 2022/239 Social

Focusing on the safety of plasma donors

Our ability to supply life-enhancing and often life-saving therapies is only made possible by ensuring a safe, quality
and positive donor experience. All CSL Plasma centres operate to the highest standards for the management and
care of plasma donors.

CSL Plasma continues several strategies to reduce donor adverse events (AEs), including an initiative to support
plasma donor hydration at all United States centres in which donors can access water, juice and snacks before or
after the plasma donation procedure. Our focus remains to minimise overall AEs, especially among first-time donors.
We have enhanced training for phlebotomy and medical staff associate roles across the collection centre network.
We have also increased proactive donor education through traditional and digital channels to support donation
and healthier lifestyles.

Social investment

CSL’s approach to community support is guided by our Code of Responsible Business Practice and supplemented by our Global
Community Contributions Policy. The policy applies to all CSL businesses and employees and is intended to be implemented
to guide decision making and management of any form of community contribution, financial or by other means. The core
of the policy is our community contributions framework, which sets out our key focus areas of support: patient communities,
innovation and science and local communities. In 2022/23, CSL contributed US$42.6 million to support global efforts where
we operate.

US$42.6

million in
community
contributions*

53%

to patient
communities

46%

to innovation
and science

to local
communities

Sub focus areas

*Does not include CSL Vifor.

• Enhancing quality
of life for patients in
the conditions our
therapies treat.
• Improving access to
our biological medicines.

• Advancing knowledge
in medical and
scientiﬁc communities.

• Supporting community
efforts where we live
and work.

• Fostering the next
generation of
medical researchers.

• Supporting communities
in times of emergency.

Together, CSL and employees support
Turkey and Syria relief efforts

In February 2023, a catastrophic earthquake struck the border of Turkey and Syria, the deadliest to hit the region
in more than two decades. Tens of thousands of lives were lost, and many more people were left in need of medical
services and humanitarian aid. To support relief efforts, and in keeping with our promise to human health, CSL and
employees together contributed A$351,752 to humanitarian organisations. Of that amount, which includes employee
receipt matching, more than A$290,000 was donated to the Emergency Action Alliance in Australia – a coalition
of 15 humanitarian relief charities.

Further, CSL affiliates in the region undertook a critical product donation of 5,000 IUs of TETAGAM®
(Tetanus immunoglobulin) to local authorities to support healthcare needs as extensive rebuilding
efforts continue.

5858

CSL Limited Annual Report 2022/23

CSL’s support of the Australian medical
research ecosystem

CSL’s support of the Australian medical research ecosystem spans long term and committed sponsorships of
programs and initiatives that help foster the next generation of medical researchers through to advancing
knowledge in medical and scientific communities.

The CSL Centenary Fellowships are high-value, long-term, competitively selected grants available to outstanding
midcareer scientists seeking to undertake discovery and translational medical research in Australia. Dr Samuel
Forster of Hudson Medical Research Institute was awarded a 2023 CSL Centenary Fellowship for his pioneering work
investigating the causes of inflammatory bowel disease (IBD) and treatment design.

Dr Forster may have taken a different career path into IT had it not been for a fortuitous placement with CSIRO’s
Undergraduate Research Opportunities Program (UROP), which he undertook when he was completing his
undergraduate degrees in Information Systems and Science at Melbourne University. UROP was an opportunity
for Dr Forster to experience medical research and meet world-leading scientists working to gain knowledge, solve
problems and find better ways to treat disease.

UROP serves as an entry point to research for those who may never have
considered research as a career. Through my UROP placement, I became
aware of the opportunities a research career presented.

Dr Samuel Forster, Hudson Institute of Medical Research
and CSL Centenary Fellow

CSL has been the major sponsor of UROP since its establishment over ten years ago which facilitates research
placements for undergraduate students across research organisations, industry and universities in Victoria.
CSL is proud to support budding scientists at critical decision-making points in their academic careers as well
as those who are pioneering their fields of scientific discovery.

CSL Limited Annual Report 2022/2310 CSL’s Governance

CSL maintains high standards of corporate governance as part of the Board and the
management team’s commitment to maximise shareholder value. This is achieved
through promoting effective strategic planning, risk management, transparency and
corporate responsibility.

Governance structure

Board composition

CSL’s approach to corporate governance and the role it plays
goes well beyond meeting our compliance obligations.

CSL believes that its governance framework fosters a high
performing and respectful culture while underpinning CSL’s
Values. The Board has a formal charter documenting its
membership, operating procedures and the allocation of
responsibilities between the Board and management. CSL’s
Board Charter is central to the governance framework at CSL
as it embodies our corporate purpose, strategy and values.
In addition to this, CSL is subject to the Commonwealth
Serum Laboratories Act 1961 (Cth), which is an overarching
governance control.

CSL’s Board of Directors is responsible for overseeing the
management of CSL and providing strategic direction. It
monitors operational and financial performance, strategic
human resource matters and approves CSL’s budgets and
business plans. It is also responsible for overseeing CSL’s risk
management framework, compliance system and internal
control framework, and approving statutory financial reports.

The Board has delegated the day-to-day management of
CSL, and the implementation of approved business plans and
strategies, to the CEO and Managing Director, who in turn
further delegates (as appropriate) to senior management.

The following diagram shows the governance framework
of CSL. Robust processes are in place to ensure the delegation
flows through the Board and its committees to the CEO and
Managing Director, the Global Leadership Group (GLG) and
into the organisation. The CEO and Managing Director and
GLG have responsibility for the day-to-day management of
the Group. This governance framework also aligns the flow
of information and accountability from our people, through
the management levels, to the Board and ultimately our
shareholders and key stakeholders.

Throughout the year there was a maximum of ten directors
on the Board. At the date of this report, there are nine
directors on the Board, comprising seven independent
non-executive directors, one non-independent non-executive
director and one executive director.

Since 1 July 2022 to the date of this report, the following
changes to directorships occurred:

• Ms Marie McDonald and Dr Megan Clark AC were re-

elected as directors at the 2022 Annual General Meeting,
held on 12 October 2022;

• Dr Paul McKenzie was appointed to the Board as an

executive director on 13 December 2022;

• Dr Paul McKenzie was appointed as Chief Executive Officer
and Managing Director of CSL with effect from 6 March
2023; and

• Mr Paul Perreault retired from the Board as an executive

director on 5 March 2023.

The Board is focused on maintaining an appropriate mix of
skills and diversity in its membership. This includes a range
of skills, experience and background in the pharmaceutical
industry, international business, finance and accounting,
and management, as well as gender diversity. A detailed
matrix of Board skills is available in CSL’s 2022/23 Corporate
Governance Statement available at CSL.com (Our Company >
Corporate Governance).

Key Stakeholders, including Shareholders

Board

Committees

Audit and Risk
Management

Corporate
Governance
and Nomination

Human
Resources and
Remuneration

Innovation and
Development

CEO & Managing Director

Global Leadership Group

Company Secretary

Our People

Values

Integrity

Patient Focus

Collaboration

Innovation

Superior
Performance

Code of Responsible Business Practice

6060

CSL Limited Annual Report 2022/23Board of Directors

Brian McNamee AO

MBBS, FTSE

Age 66

Chair and Independent
Non-Executive Director

Director of CSL Limited since February
2018 and Chair from October 2018.

Paul McKenzie

PhD (Chemical Engineering)

Age 57

Non-Independent Executive Director

Director of CSL Limited since December
2022, and appointed Chief Executive
Officer and Managing Director in
March 2023.

Bruce Brook

BCom, BAcc, FCA, MAICD

Age 68

Independent Non-Executive Director

Director of CSL Limited since August 2011.

Dr McNamee has deep executive experience in the biopharmaceutical industry,
with a focus on strategy and creating long-term shareholder value.
Dr McNamee was the Chief Executive Officer and Managing Director of CSL from 1990
until 2013. Since leaving his executive role at CSL, Dr McNamee has served as a senior
advisor to private equity group Kohlberg Kravis Roberts. He has also pursued a number
of private equity and interests in small cap healthcare companies, and in 2014 served
on the panel of the Australian Government’s Financial System Inquiry. In 2009, he was
made an Officer of the Order of Australia for service to business and commerce.
Other directorships and offices (current and recent):
– Chair of Geoff Ogilvy Foundation (since May 2021); and
– Former Chair of GenesisCare Limited (from July 2019 to June 2022).

Board Committee memberships:
– Member of the Innovation and Development Committee; and
– Member of the Corporate Governance and Nomination Committee.

Dr McKenzie was appointed Chief Executive Officer and Managing Director of CSL
Limited on 6 March 2023. Paul has more than 30 years of leadership experience in the
global biotechnology industry, including managing complex organisations through
compelling growth and transformation. After joining CSL as Chief Operating Officer in
June 2019, Dr McKenzie was accountable for optimising CSL’s operations and business
growth. He transformed CSL’s global end-to-end operations, advanced CSL Seqirus’
differentiated portfolio strategy, and led CSL Plasma through COVID-19 challenges
while surpassing plasma collection volumes beyond pre-pandemic levels.
Prior to joining CSL, Dr McKenzie was executive vice president of Pharmaceutical
Operations & Technology at Biogen. He also served in a range of progressively senior
level roles in R&D and manufacturing at Johnson & Johnson, Bristol-Myers Squibb
and Merck.
Dr McKenzie was elected to the US National Academy of Engineering in 2020. He
holds a Bachelor of Science degree in chemical engineering from the University of
Pennsylvania and a PhD in chemical engineering from Carnegie Mellon University.
Board Committee memberships:
– Member of the Innovation and Development Committee.

Mr Brook has an extensive breadth of executive experience in diverse industries,
including mining, finance, manufacturing and chemicals. In particular, Mr Brook has
valuable insight and experience in relation to risk, capital discipline, change
management, corporate culture and creating shareholder value.
Mr Brook was chief financial officer of WMC Resources Limited from 2002 to 2005.
He also held key executive roles including deputy chief finance officer of ANZ Banking
Group Limited, group chief accountant of Pacific Dunlop Limited and general
manager, Group Accounting positions at CRA Limited and Pasminco Limited.
Other directorships and offices (current and recent):
– Director of Djerriwarrh Investments Limited (since August 2021);
– Director of Guide Dogs Victoria (since November 2018);
– Director of Incitec Pivot Limited (since December 2018); and
– Director of Newmont Corporation (since October 2011).

Board Committee Memberships:
– Chair of the Audit and Risk Management Committee; and
– Member of the Corporate Governance and Nomination Committee.

CSL Limited Annual Report 2022/2310 CSL’s Governance

Dr Clark has significant executive and non-executive experience across a broad range
of sectors, including scientific research, health, investment banking and financial
services, education and mining. Through her roles, Dr Clark brings a broad strategic
perspective and global experience, with a focus on risk and proven health, safety and
environment and technology performance.
In 2014, Dr Clark was made a Companion of the Order of Australia for eminent service
to scientific research and development.
Dr Clark was chief executive of the Commonwealth Scientific and Industrial Research
Organisation (CSIRO) from 2009 until November 2014. Prior to joining CSIRO,
she was a director at NM Rothschild and Sons (Australia) and held senior positions
at BHP, including vice president (Technology) and vice president (Health, Safety
and Environment).
Other directorships and offices (current and recent):
– Member of MITRE Advisory Board (since December 2022);
– Deputy Chancellor of Monash University (since January 2021);
– Chair of the Australian Space Agency Advisory Board (since January 2021);
– Member of the Global Advisory Council of the Bank of America Corporation

(since December 2019);

– Director of Rio Tinto Limited and Rio Tinto Plc (since November 2014);
– Member of the Australian Advisory Board of the Bank of America (since July 2010);
– Former Head of the Australian Space Agency (from June 2018 to

December 2020); and

– Former Director of Care Australia Limited (from 2015 to June 2020).

Board Committee memberships:
– Chair of the Human Resources and Remuneration Committee;
– Member of the Corporate Governance and Nomination Committee; and
– Member of the Innovation and Development Committee.

Professor Cuthbertson has over 35 years’ experience in medical research and biotech
development with large biopharmaceutical companies and medical organisations.
He also has non-executive director experience.
Professor Cuthbertson joined CSL in April 1997 as the Director of Research. Prior to CSL,
he was a senior scientist at Genentech Inc., a biotechnology company dedicated to
pursuing groundbreaking science to discover and develop medicine for people with
life-threatening diseases. After completing medical training at the University of
Melbourne and a PhD in immunology at The Walter and Eliza Hall Institute of Medical
Research in Australia, Professor Cuthbertson spent five years working in molecular
biology research as a staff member at the Howard Florey Institute in Melbourne,
Australia, and the National Institutes of Health in Maryland, United States. In 2016,
he was made an Officer of the Order of Australia and appointed Enterprise Professor
at the University of Melbourne.
Other directorships and offices (current and recent):
– Deputy Chancellor of the University of Melbourne (since January 2020);
– Director of the Grattan Institute (since January 2019); and
– Director of the Centre of Eye Research Australia (since March 2017).

Board Committee memberships:
– Chair of the Innovation and Development Committee; and
– Member of the Corporate Governance and Nomination Committee.

Megan Clark AC

BSc (Hons) PhD

Age 65

Independent Non-Executive Director

Director of CSL Limited since
February 2016.

Andrew Cuthbertson AO

BMedSci, MBBS, PhD, FAA, FTSE, FAHMS

Age 68

Non-Independent Non-Executive
Director

Director of CSL Limited since
October 2018 and Non-Executive
Director since October 2021.

6262

CSL Limited Annual Report 2022/23Ms Hewson is a former investment banker with over 35 years’ experience in the finance
sector. She was previously an executive director of Schroders Australia Limited and has
extensive financial markets, risk management and investment management expertise.
She has long-term non-Executive experience in a number of sectors bringing a
breadth of experience and insight on strategy, capital management and portfolio
optimisation through cycles, financial and non-financial risk, social value, organisational
culture and the changing external environment.
In 2009, Ms Hewson was made an Officer in the Order of Australia for her services
to the broader community and to business.
Other directorships and offices (current and recent):
– Director of Reserve Bank of Australia (since April 2021);
– Director of Infrastructure SA (since January 2019); and
– Former Member of Federal Government Growth Centres Advisory Committee

(from January 2015 to May 2021).

Board Committee membership:
– Chair of the Corporate Governance and Nomination Committee;
– Member of the Audit and Risk Management Committee; and
– Member of the Human Resources and Remuneration Committee.

Professor Maskell has wide-ranging international experience in science and
commerce, with a particular focus in research, academia and entrepreneurship.
Professor Maskell is the Vice-Chancellor of the University of Melbourne.
Prior to this he was Senior Pro-Vice-Chancellor at the University of Cambridge in the
United Kingdom and has also held roles at the University of Oxford, Imperial College
London and Wellcome Biotech.
Professor Maskell has extensive experience across the private sector, reflecting
his passion for the commercialisation of research initiatives. He has co-founded
several biotech companies, including Arrow Therapeutics, which was sold to
biopharmaceutical company AstraZeneca, and Discuva, which was sold to Summit
Therapeutics. He has also served as a Non-Executive Director of Genus Plc,
a FTSE 250 company.
Professor Maskell holds a Master of Arts and a Doctor of Philosophy from the University
of Cambridge.
Other directorships and offices (current and recent):
– Director of The Walter and Eliza Hall Institute of Medical Research (since March 2023);
– Director of the Grattan Institute (since November 2018);
– Vice-Chancellor of the University of Melbourne (since October 2018);
– Director of Melbourne Business School (since October 2018);
– Director of the Group of Eight Limited (since October 2018); and
– Former Director of Universities Australia Limited (from October 2018 to June 2023).

Board Committee memberships:
– Member of the Innovation and Development Committee.

Ms McDonald has significant executive and non-executive experience in a number of
sectors including law, medical research, manufacturing and chemicals. Through these
roles, Ms McDonald brings experience and insight on financial markets, risk and
compliance and change management.
Ms McDonald is a former lawyer with over 30 years’ experience in the legal sector.
She was previously a Partner of Ashurst, specialising in mergers and acquisitions and
corporate governance. She held the role of National Head of Mergers and Acquisitions
and was Chair of the Corporations Committee of the Business Law Section of the Law
Council of Australia and a member of the Australian Takeovers Panel for nine years.
Other directorships and offices (current and recent):
– Director of Nanosonics Limited (since October 2016);
– Director of Nufarm Limited (since March 2017);
– Director of The Walter and Eliza Hall Institute of Medical Research (since October 2016);
– Member of Melbourne University Law School Foundation Board

Carolyn Hewson AO

BEc (Hons), MA

Age 68

Independent Non-Executive Director

Director of CSL Limited since
December 2019.

Duncan Maskell

MA, PhD, FMedSci, Hon Assoc RSVC

Age 62

Independent Non-Executive Director

Director of CSL Limited since August 2021.

Marie McDonald

BSc (Hons), LLB (Hons)

Age 67

Independent Non-Executive Director

Director of CSL Limited since August 2013.

(since October 2021); and

– Member of the Law Committee of the AICD (since March 2023).

Board Committee memberships:
– Member of the Audit and Risk Management Committee; and
– Member of the Human Resources and Remuneration Committee.

CSL Limited Annual Report 2022/2310 CSL’s Governance

Ms Watkins brings deep experience to our Board through the executive and Non-
Executive roles she has held across industries, including manufacturing, agriculture,
consumer goods, retail and financial services.
Ms Watkins was most recently the group Managing Director of ASX-listed Coca-Cola
Amatil Limited, where she was responsible for operations in Australia, New Zealand,
Indonesia and across the South Pacific region.
Ms Watkins holds a Bachelor of Commerce from the University of Tasmania, is a fellow
of the Institute of Chartered Accountants, the Financial Services Institute of Australasia,
and the Australian Institute of Company Directors.
Other directorships and offices (current and recent):
– Director of Reserve Bank of Australia (since Dec 2020);
– Director Wesfarmers Limited (since September 2021);
– Chancellor of the University of Tasmania (since July 2021);
– Director of Centre for Independent Studies (since December 2011);
– Director Geoff Ogilvy Foundation (since September 2022);
– Director PGA of Australia (since December 2022);
– Former Director of Business Council of Australia (from August 2015 to

October 2021); and

– Former Group Managing Director of Coca-Cola Amatil Limited (from March 2014

to May 2021).

Board Committee Memberships:
– Member of the Audit and Risk Management Committee; and
– Member of the Human Resources and Remuneration Committee.

Ms Mead was appointed Company Secretary and Head of Corporate Governance
effective June 2018. Previously, she was the company secretary and a member of the
executive leadership team at Tabcorp Holdings Limited. Prior to that, Ms Mead was
the company secretary at Asciano Limited, and earlier, assistant company secretary
at Telstra. Fiona began her career as a lawyer with law firm Ashurst.
Ms Mead is a fellow of the Governance Institute of Australia and a graduate member
of the Australian Institute of Company Directors.

Alison Watkins AM

BCom

Age 60

Independent Non-Executive Director

Director of CSL Limited effective from
August 2021.

Fiona Mead

LLB (Hons), BComm

Age 54

Company Secretary and Head
of Corporate Governance

Board committees

The Board has established a number of standing committees as a mechanism for considering detailed issues and, where
appropriate, making recommendations for consideration by the Board. These committees have charters setting out matters
relevant to the composition, responsibilities and membership of each committee.

6464

CSL Limited Annual Report 2022/23Leadership team

Our Global Leadership Group is responsible for driving company performance so that we can keep our promises to our patients,
our employees and our shareholders. They have earned their roles because of their experience, achievements, unwavering
ethics and commitment to our core values.

Dr Paul McKenzie

PhD (Chemical
Engineering)

Age 57

Chief Executive Officer
and Managing Director

Greg Boss

JD, BS (Hon)

Age 61

Executive Vice
President, Legal and CSL
Group General Counsel

Dr McKenzie was appointed Chief Executive Officer and Managing
Director of CSL Limited on 6 March 2023. See above for further
biographical details.

Greg was appointed Group General Counsel in 2009 and is
responsible for worldwide legal operations for all CSL Group
companies. He joined CSL in 2001, serving as General Counsel
for what became the CSL Behring business.
In addition to his legal role, Greg is also responsible for overseeing
global Risk Management and Compliance for the Group as well as
global Corporate Communications.
Prior to joining CSL, Greg was Vice President and Senior Counsel
for CB Richard Ellis International, after working 10 years in private
legal practice. In 2016, Greg received the World Recognition of
Distinguished General Counsel from the Directors Roundtable,
and in 2017 Greg received the Leadership in Law award from the
Burton Foundation.

Bill Campbell

BSc (Business
Administration)

Age 64

Executive Vice
President, Chief
Commercial Officer

Bill was appointed Executive Vice President, Chief Commercial
Officer in July 2017. He has responsibility for a variety of global
functions, including sales, marketing, commercial development,
medical affairs and policy, advocacy and government affairs. Prior
to being appointed to his current role, Bill led CSL Behring’s North
American commercial operations. He has more than 35 years of
diverse pharmaceutical and biotechnology experience across a range
of therapeutic areas, including oncology, women’s health, vaccines
and plasma proteins. Bill has held senior management positions
at a number of pharmaceutical and biotechnology companies.
Mr Campbell will retire from CSL before the end of 2023

Hervé Gisserot

IEP

Age 58

Senior Vice President
and General Manager
CSL Vifor

Hervé Gisserot, CSL Vifor General Manager since August 2022, was
appointed as Senior Vice President and member of the CSL Global
Leadership Group on 15 March 2023. He is responsible for the global
CSL Vifor Business unit strategy and operations including leading a
team of approx. 2,000 professionals focusing on the strategic therapy
areas of iron replacement and nephrology. Prior to being appointed
to his current role, Hervé was Chief Commercial Officer and member
of the Executive Committee of Vifor Pharma.
Hervé brings extensive commercial experience in the healthcare
sector in the United States, Europe, and Asia Pacific. He has served
in a number of progressive senior leadership roles at GlaxoSmithKline,
Sanofi-Aventis and Fournier Group.
Hervé is a graduate of the Institute of Political Science Paris (IEP)
and has completed the General Management program at INSEAD.
In addition to his role, Hervé serves as Chairman of the Board of
Directors Vifor Fresenius Medical Care Renal Pharma, as well as in
June 2022, was nominated to the Strategic Committee of Brenus
Pharma and in April 2023 he was nominated as a member of the
EFPIA Board.

CSL Limited Annual Report 2022/2310 CSL’s Governance

Mark Hill

BA (Organisational
Management)

Executive MBA
(Information Technology
Management)

Age 62

Executive Vice
President, Chief Digital
Information Officer

Ken Lim

BCom, LLB (Hons)

Age 49

Executive Vice
President and Chief
Strategy Officer

Mark Hill, Chief Digital Information Officer at CSL leads the
enterprise-wide Digital Technology organisation and its
accompanying strategy.
Mark plays a key role in how CSL manages plasma donors, connects
with patients, virtually collaborates and drives greater efficiencies
in operations and the rest of the CSL organisation.
He is a global IT leader with extensive experience in utilising enabling
technology to deliver efficiency, productivity, quality and solutions
for patients and public health.
Prior to joining CSL, he was senior vice president and chief
information officer at Gilead Sciences, where he led the IT
organisation during a period of rapid growth for the company and
delivered key initiatives that encouraged collaboration and new ways
of working. With more than 30 years of experience, Mark also held
leadership roles with Merck and Schering-Plough earlier in his career.
He earned his Bachelor of Science degree in Organizational
Management from Tusculum College and his Executive MBA in
information technology management from Christian Brothers
University. Mark is also a United States Army veteran.

Ken Lim serves as CSL's Executive Vice President and Chief Strategy
Officer.
Ken is a long-time CSL leader who has served in multiple leadership
positions across a range of businesses. Prior to his current role, Ken
held several positions at CSL Seqirus, including Head of Strategy
& Finance and interim General Manager.
Ken joined CSL in 2013 as Vice President of Strategic Projects where
he focused on the company’s strategy, business development, and
mergers & acquisitions. He was involved in several key strategic
partnerships and acquisitions, including CSL’s acquisition of the
Novartis influenza business in 2015 which then became CSL Seqirus.
Before joining CSL, Ken advised CSL on several strategic initiatives as
a Merrill Lynch investment banker, including CSL’s purchase of
Aventis Behring in 2004 which became CSL Behring.
Ken began his career as a solicitor with Mallesons Stephen Jaques,
a large commercial law firm in Australia, where he specialised in
corporate law. Ken gained a Bachelor of Commerce and Bachelor
of Laws (Honours), from Monash University in Melbourne, Australia.

Joy Linton

BComm; F. Fin; GAICD

Age 57

Chief Financial Officer

Joy was appointed Chief Financial Officer in October 2020.
Prior to joining CSL, Joy was chief financial officer and executive
director at Bupa, a global health insurance company based in the
UK, and earlier served as the General Manager of health services
for Bupa UK.
Joy has over 30 years’ experience in branded consumer businesses
across insurance, healthcare and fast-moving consumer goods
as a global and strategic chief financial officer.

Steve Marlow

BA (Hon), MBA (Finance),
MAICD

Age 51

Senior Vice President
and General Manager
CSL Seqirus

Steve began his career with CSL in Australia in 2000. He was
appointed to his current role, Senior Vice President (SVP) and
General Manager of CSL Seqirus in April 2020 following five years
leading CSL Seqirus’ Global Operations function from 2015 to 2020.
Prior to this, Steve served as General Manager and SVP of CSL
Behring’s United States Manufacturing Operations, based in Illinois,
United States. Further key leadership roles of note during Steve’s
20-plus-year career at CSL included responsibility for supply chain,
international commercial operations and technical operations for
the influenza franchise. Steve led the global coordination for the
rapid response to the H1N1 pandemic in 2009 and was at the
forefront of CSL’s global response to the COVID-19 pandemic in 2020.
Steve gained his undergraduate degree in Leeds, UK, and his MBA
in Melbourne, Australia. He is a graduate of the Advanced
Management Program at the Melbourne Business School, Australia.

6666

CSL Limited Annual Report 2022/23Bill Mezzanotte

MD, MPH

Age 64

Executive Vice
President, Head
Research &
Development and Chief
Medical Officer

Andy Schmeltz

BA (Economics)

MBA (Marketing
& Finance)

Age 52

Executive Vice President,
CSL Behring Business
Unit

Elizabeth Walker

BA, MS (Organisational
Development and
Leadership)

Age 53

Executive Vice President,
Chief Human Resources
Officer

As the Head of Research & Development (R&D) and Chief Medical
Officer, Bill is responsible for developing and executing CSL’s R&D
strategy and portfolio, creating the pipeline and R&D capabilities
that will help the CSL Behring, CSL Seqirus and CSL Vifor businesses
grow in the decades ahead. These R&D capabilities include
identifying and developing all scientific platforms, skills and
expertise necessary for success in rare and serious diseases
and vaccines.
Bill, who has been leading R&D since October 2018, initially joined
CSL as Head of Clinical Development in 2017. Prior to CSL, Bill was
senior vice president and therapeutic area head for the respiratory
unit for Boehringer Ingelheim and spent 16 years with AstraZeneca
in research and development, assuming roles of increasing
leadership and management responsibility across multiple
therapeutic areas. Bill obtained his MD at the University of
Pennsylvania and a Master of Public Health degree from Johns
Hopkins University. He is board certified in internal medicine,
pulmonary medicine, critical care medicine and sleep medicine.
Since 2020, Bill has served as a member of the Board of Directors
of the Philadelphia-based University City Science Center and in
2021-2023 he served on the Board of Directors for BELLUS Health.

Andy was appointed Executive Vice President, CSL Behring in July
2023. He is responsible for commercial development and operations,
therapeutic area strategy, market access, CSL Plasma strategy and
operations, supply chain, operations, manufacturing, procurement,
planning, and quality across the CSL Behring business unit.
Prior to joining CSL, Andy was with Pfizer for 20 years, most recently
as Head of enterprise-wide Commercial Strategy & Innovation,
leading investment decisions. For five years, he was global president
and general manager of Pfizer Oncology, where he managed a
$12 billion portfolio of 24 medicines with 2,800 employees. Andy also
spearheaded several acquisitions and integrations during his time
at Pfizer.
Andy is an established cross-functional healthcare leader who has
held various roles across multiple disciplines during his 25-plus years
in the industry.

Elizabeth Walker leads Global Human Resources for the CSL Group of
Companies and its people and culture strategy, supporting a diverse
population of more than 32,000 employees around the world.
Elizabeth joined CSL in 2016 and was appointed Chief Human
Resources Officer in December 2017. Previously, she held a variety of
HR leadership positions at Campbell Soup Company, most recently
as Vice President of Global Talent Management.
With a career spanning more than 30 years, she has extensive
human resources and management consulting expertise and
a distinguished record of results in growth businesses and M&A
environments and within a diverse set of industries, including
healthcare, financial services and consumer products.
Elizabeth holds a Master of Science degree in organisation
development and leadership from St. Joseph’s University and
a Bachelor of Arts degree from Carnegie Mellon University.

CSL Limited Annual Report 2022/2310 CSL’s Governance

Ethics and transparency

While CSL’s Values serve as its directional compass, the Code
of Responsible Business Practice (Code) provides a more
detailed map to deliver on our promise to patients and public
health by exemplifying high standards of conduct
throughout the organisation.

CSL’s Code aims to foster a culture that rewards high ethical
standards, personal and corporate integrity and respect
for others.

All employees undertake training on the Code and CSL’s new
ethics-based decision making tool. These two e-learning
modules have been made available in 14 languages to cater
for CSL’s global workforce.

In certain aspects of CSL’s business, such as the marketing of
our products, our relationships with healthcare professionals
or healthcare organisations and our research and
development, we have made further commitments to
comply with both local and internationally accepted
pharmaceutical industry codes of conduct.

CSL expects its third party partners to comply with the
applicable local laws and regulations of the countries in which
they operate, and to observe all of the principles set out in our
Third Party Code of Conduct.

We have internal control systems to ensure financial
statements comply with the applicable local laws of the
countries in which we operate and to prevent fraud and
other improper conduct.

CSL’s Code of Responsible Business Practice as well as
Third Party Code of Conduct can be found on CSL.com
(We Are CSL > Corporate Governance > Code of Responsible
Business Practice).

Anti-bribery and anti-corruption

CSL has an Anti-Bribery and Anti-Corruption Policy that
prohibits CSL businesses and employees from directly or
indirectly offering, paying, soliciting or accepting bribes or
giving or receiving personal favours, financial or other rewards
or inducements in exchange for making business decisions.
This prohibition applies regardless of the value of the reward
or inducement. CSL policy also prohibits facilitation
payments. The Board, via the ARMC, periodically receives
information regarding material breaches of the Anti-Bribery
and Anti-Corruption Policy as a way of maintaining oversight.

CSL operates in a diverse and complex marketplace and has
a number of commercial arrangements with governments
and related agencies across various geographies. Bribery and
corruption are risks that could expose the organisation and
employees to possible prosecution, fines and imprisonment.

Market practices are governed by company-specific policies
and procedures. Internal compliance mechanisms and
control systems are directly supported by our Global Ethics
and Compliance team and subject to additional oversight
by CSL’s Global Compliance Committee, regional committees,
and CSL’s Audit and Risk Management Committee of
the Board.

Based on these controls, CSL considers its overall risk relating
to corruption to be low and is committed to complying with
laws and regulations in the regions in which CSL operates
and those that CSL seeks to enter.

6868

CSL has a Group Speak Up Policy to encourage anyone to
raise concerns about potential misconduct, including in
relation to bribery or corruption. CSL staff may raise any
concerns internally. Additionally, anyone can make
anonymous reports to the Speak Up Hotline, an independent
and confidential reporting line available globally.

In addition, over the reporting period, an annual assessment
of bribery and corruption risk was conducted by the Ethics
& Compliance teams. The assessment included asking
a cross-section of employees in CSL’s commercial and
manufacturing operations to complete a standardised
questionnaire. The questionnaire is designed to assist with
identifying practices or behaviours that could be in breach
of CSL’s Anti-Bribery and Anti-Corruption Policy. Results are
provided to the Global Compliance Committee and regional/
local compliance committees for review, and the committees
may ask for actions to be taken which could include: to revise
regional or local policies or procedures; to deliver further
training; for ongoing monitoring; or for a more detailed
assessment of the local commercial operation, including any
third parties acting on behalf of CSL. The implementation of
the committee’s review and actions are supported by the
local, regional and global Ethics and Compliance teams.

Sustainability performance

FTSE4Good

CSL’s environmental, social and governance (ESG)
performance has been recognised by the FTSE4Good
Index Series, a leading sustainability index, for the last
12 years.

MSCI

In 2023, CSL received a rating of AA (on a scale of
AAA-CCC) in the MSCI ESG Ratings assessment.

MSCI focuses on companies’ ESG rated performance
in each sector to help institutional investors more
effectively integrate ESG considerations into their
investment processes, as well as manage, measure,
and report on ESG mandates.

Sustainalytics

As of March 2022, CSL’s ESG risk rating overall score
is 24.24 with an ESG risk rating category of medium
(on a 5-point scale from negligible to severe), ranking
44 out of 436 in the subindustry biotechnology sector
(1st equals lowest risk).

Sustainalytics provides analytical ESG research, ratings
and data to institutional investors and companies.

CSL Limited Annual Report 2022/23Fair competition

Tax transparency

While CSL’s roots are proudly Australian, CSL is a truly global
company, with more than 90% of revenue derived outside
Australia. We separately report on our global tax footprint, as
part of CSL’s tax transparency reporting.

We are subject to the different tax regimes that apply in each
of those countries and apply the applicable taxation laws in
all the jurisdictions in which we operate, including the OECD
Country-by-Country reporting measures.

CSL’s approach to tax is underpinned by our Value of Integrity.
This is consistent with our commitment to complying with
all tax laws in the countries in which we operate. CSL has a
low appetite for tax risk and does not engage in aggressive
tax planning.

CSL supports efforts to improve tax transparency in order to
support a fairer economy and ensure there is confidence in
the robustness of country tax regimes. We support the work
undertaken by the OECD in relation to Pillar One and Pillar
Two requirements and the position that income earned
in a country should be reflective of the economic activity
undertaken in that country. We encourage governments
to continue to work together to adopt a globally consistent
approach to these requirements in order to balance the
compliance complexity for companies operating across a
number of territories.

Operating with transparency forms a core part of CSL’s tax
management philosophy and as such our annual tax
transparency reports can be found on CSL.com (Sustainability).

In 2022/23, there were no findings against CSL relating
to a breach of any fair trading or competition laws.

Political contributions

Over the reporting period, CSL contributed a total of
US$1,000 in non-cash corporate political contributions
in the United States and A$5,500 to political organisations
in Australia solely for attendance at events including policy
briefings, lunches, boardroom lunches and dinners. In all
other regions, CSL made no political contributions.

More at CSL.com (Sustainability > Governance).

Disclosure

As a publicly listed company on the Australian Securities
Exchange (ASX), CSL has obligations under Australian law and
the ASX Listing Rules. Subject to limited exceptions, CSL must
continuously disclose to the ASX information about CSL that
a reasonable person would expect to have a material effect
on the price or value of CSL securities.

CSL has a policy that sets clear guidelines and describes the
actions that the directors and all employees should take
when they become aware of information that may require
disclosure. CSL’s Continuous Disclosure Policy can be
found on CSL.com (We Are CSL > Corporate Governance >
Core Policies).

Corporate governance

Throughout 2022/23, CSL’s governance arrangements were
consistent with the ASX Corporate Governance Council’s
Corporate Governance Principles and Recommendations
(4th edition). Our 2022/23 Corporate Governance Statement
has been approved by the Board and is available on CSL.com
(We Are CSL > Corporate Governance).

The Board continually reviews governance at CSL to ensure
that the governance framework remains appropriate in light
of changing expectations and general developments in good
corporate governance.

Risk management

CSL has adopted and follows a detailed and structured
Enterprise Risk Management Framework (ERMF) to ensure
that risks are identified, evaluated, monitored and managed.
This ERMF sets out the risk management processes, internal
compliance and monitoring requirements, governance
processes and structures including roles and responsibilities
for different levels of management, the matrix of risk
impact and likelihood for assessing risk, the three lines
of accountability for risk and risk management
reporting requirements.

The ERMF has been established to provide reasonable
assurance that:

• any material exposure to risk can be identified and

adequately monitored and managed; and

• significant strategic, emerging, financial, managerial and
operating risk-related information is accurate, relevant,
timely and reliable.

Further details of CSL’s risk management framework are
contained in CSL’s Corporate Governance Statement.

A description of CSL’s material risks and key risk management
activities for each risk can be found in CSL’s Material Risks on
page 26 of this report.

CSL Limited Annual Report 2022/2311 Share Information

CSL Limited

Issued Capital Ordinary Shares: 482,369,261 as at 30 June 2023;
482,369,261 as at 31 July 2023.

Details of incorporation

CSL’s activities were carried on within the Commonwealth
Department of Health until the Commonwealth Serum
Laboratories Commission was formed as a Statutory Act 1961
(Cth) (the CSL Act) on 2 November 1961. On 1 April 1991, the
Corporation was converted to a public company limited by
shares under the Corporations Law of the Australian Capital
Territory and it was renamed Commonwealth Serum
Laboratories Limited. These changes were brought into effect
by the Commonwealth Serum Laboratories (Conversion into
Public Company) Act 1990 (Cth). On 7 October 1991, the name
was changed to CSL Limited. The Commonwealth divested all
of its shares by public float on 3 June 1994.

The CSL Sale Act 1993 (Cth) amends the CSL Act to impose
certain restrictions on the voting rights of persons having
significant foreign shareholdings, and certain restrictions on
CSL itself. CSL ordinary shares (being the only class of shares
on issue) have been traded on the Australian Securities
Exchange (ASX) under the ticker code: CSL since 30 May 1994.
Melbourne is the Home Exchange.

In June 2014, CSL commenced a sponsored Level 1 American
Depositary Receipts (ADR) program with the Bank of New
York Mellon. The sponsored ADR program replaced the
unsponsored ADR programs that previously operated with
CSL’s involvement.

The American Depositary Receipts are traded on the over-the
counter (OTC) securities market in the United States. Two
ADRs represent one ordinary share in CSL.

In terms of voting, ADR holders can instruct the Depositary,
Bank of New York Mellon, to act as proxy for the underlying
shares. Particulars for the sponsored ADR program are: US
Exchange – OTC and DR Ticker Symbol – CSLLY.

Substantial shareholders

The following table shows (as at 30 June 2023) the details of each shareholder who, together with their associates, notified
CSL Limited under the Australian Corporations Act 2001 (Cth), Section 671B, that they hold 5% or more of voting rights in
CSL Limited’s shares.

Date of last notice

Title of class

Identity of person
or group

Date received

Date of change

Number owned

Ordinary Shares

Blackrock Group

2 December 2019

28 November 2019

Ordinary Shares

Vanguard Group

14 November 2022

9 November 2022

Ordinary Shares

State Street Group

3 April 2023

30 March 2023

27,353,205

24,112,875

24,219,552

There were no substantial shareholder notices lodged on the Australian Securities Exchange period between 1 July 2023
and 31 July 2023.

Voting rights

At a general meeting, subject to restrictions imposed on significant foreign shareholdings and some other minor exceptions,
on a show of hands, each shareholder present has one vote. On a poll, each shareholder present in person or by proxy, attorney
or representative has one vote for each fully paid share held. In accordance with the CSL Act, CSL’s Constitution provides that
the votes attaching to significant foreign shareholdings are not to be counted when they pertain to the appointment, removal
or replacement of more than one-third of the directors of CSL who hold office at any particular time. A significant foreign
shareholding is one where a foreign person has a relevant interest in 5% or more of CSL’s voting shares.

CSL Limited Annual Report 2022/23Distribution of shareholdings as at 31 July 2023

Range

1 – 1,000

1,001 – 5,000

5,001 – 10,000

10,001 – 100,000

100,001 Over

Rounding

Total holders

222,198

21,715

3,112

1,324

37,995,824

48,603,746

21,323,431

23,406,588

351,039,672

Total shareholders and shares on issue

248,407

482,369,261

Unmarketable parcels

Minimum parcel size

Minimum A$500.00 parcel at A$268.52 per share
(being the closing market price on 31 July 2023)

Holders

455

% of issued capital

7.88

10.08

4.42

4.85

72.77

0.00

100.00

455

Unquoted equity securities

As at 31 July 2023, 1,337,339 Performance Rights with 4,023 holders and 490,898 Performance Share Units with 151 holders were
on issue pursuant to CSL’s equity incentive plan.

On-market share acquisitions

During 2022/23, 2,822 CSL ordinary shares were purchased on market at an average price of $295.12 per share for the purposes
of various CSL employee incentive schemes.

There is no current on-market buy-back of CSL shares.

Shareholder Information

CSL’s Share Registry is overseen by Computershare
Investor Services. Shareholders with enquiries go to
investorcentre.com/au where most common questions
can be answered by virtual agent Penny. There is an option
to contact the Share Registry by email if the virtual agent
cannot provide the answer. Alternatively, shareholders
may telephone or write to the Share Registry at the
following address:

Mail

Computershare Investor Services Pty Limited
GPO Box 2975
Melbourne VIC 3001
AUSTRALIA

Telephone

(Australia) 1800 646 882
(Overseas) +61 3 9415 4178

Mon-Fri 8:30am-7pm AEST

Separate shareholdings may be consolidated by advising
the Share Registry in writing or by completing a Request
to Consolidate Holdings form which can be found online
at investorcentre.com/au.

Change of address should be notified to the Share Registry
online via the Investor Centre at investorcentre.com/au, by
telephone or in writing without delay. Shareholders who are
broker sponsored on the CHESS sub-register must notify their
sponsoring broker of a change of address.

Direct payment of dividends into a nominated account is
mandatory for shareholders with a registered address in
Australia or New Zealand. All shareholders are encouraged
to use this option by providing a payment instruction online
via the Investor Centre at investorcentre.com/au or by
obtaining a direct credit form from the Share Registry or
by advising the Share Registry in writing with particulars.

CSL offers shareholders the opportunity to receive dividend
payments in US dollars by direct credit to a US bank account.
Shareholders who wish to avail themselves of this payment
option for the 2023 final dividend payment must provide their
valid US bank account details to the Share Registry by the
dividend record date of 12 September 2023.

The Annual Report is produced for your information. The
default option is an online Annual Report via CSL.com. If you
opt to continue to receive a printed copy and you receive
more than one or you wish to be removed from the mailing
list for the Annual Report, please advise the Share Registry.

The 2023 Annual General Meeting (AGM) of CSL Limited
(ABN 99 051 588 348) will be held on Wednesday,
11 October 2023 at 10am (Melbourne time) at the Clarendon
Auditorium, Melbourne Convention and Exhibition Centre,
South Wharf, Melbourne 3000.

CSL Limited Annual Report 2022/23CSL’s 20 largest shareholders as at 31 July 2023
(as named on the Register of Shareholders)*1

Rank Name

Units

% Units

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

J P MORGAN NOMINEES AUSTRALIA PTY LIMITED

CITICORP NOMINEES PTY LIMITED

NATIONAL NOMINEES LIMITED

BNP PARIBAS NOMS PTY LTD

BNP PARIBAS NOMINEES PTY LTD

CITICORP NOMINEES PTY LIMITED

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

NETWEALTH INVESTMENTS LIMITED

AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED

BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD

CUSTODIAL SERVICES LIMITED

SOLIUM NOMINEES (AUSTRALIA) PTY LTD

ARGO INVESTMENTS LIMITED

BNP PARIBAS NOMS (NZ) LTD

MUTUAL TRUST PTY LTD

D W S NOMINEES PTY LTD

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 2

BNP PARIBAS NOMINEES PTY LTD

SOLIUM NOMINEES (AUSTRALIA) PTY LTD

Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total)

Total Remaining Holders Balance

158,208,692

81,652,973

45,017,523

15,121,161

12,608,974

4,832,402

4,734,581

3,278,217

2,568,812

2,239,500

2,163,373

1,665,903

1,574,635

1,311,509

898,418

891,059

793,208

750,247

726,200

676,661

32.80

16.93

9.33

3.13

2.61

1.00

0.98

0.68

0.53

0.46

0.45

0.35

0.33

0.27

0.19

0.18

0.16

0.15

0.14

341,714,048

140,655,213

70.84

29.16

(*1) Many of the 20 largest shareholders shown for CSL Limited hold shares as a nominee or custodian. In accordance with the reporting requirements, the tables

reflect the legal ownership of shares and not the details of the underlying beneficial holders.

Share InformationCSL Limited Annual Report 2022/2312 Key Performance Data Summary

US$ million
US$ million
US$ million
US$ million
Number

Number
Percentage
Percentage
Percentage
Percentage
Per million
hours worked
for Non-CSL
Plasma sites
Per million
hours worked
for CSL Plasma

Number
Percentage

US$ million
Number

Number

Number
Number

Performance Indicator

Economic Contribution
Operating revenue
Net profit
Economic value generated
Economic value distributed
New plasma centres

Sustainable Workforce
Our People
Total headcount
Total Board female
Total workforce female
Total people managers female
Total senior executives female

Total Recordable Injury
Frequency Rate (TRIFR)‡

Fatalities (including
contingent workers)
Employee engagement
ESG employee engagement

Social
Innovation
R&D investment
Clinical trials in operation
Safety and Quality
Regulatory audits of
manufacturing facilities and
plasma collection centres
Safety related recalls
of finished product††
Pharmacovigilance audits
Community
Total contribution
Product access support (subset
of total community contribution)
Plasma donors willing
to donate again

Environment
Absolutes§
Energy consumption
Scope 1 & 2 greenhouse gas emissions
Water consumption
Waste
Waste recycling rate

Measure

2020/21

2021/22

2022/23

More in 22/23 Annual
Report (page reference)

10,310¶
2,375¶
10,314†
9,959†
25

25,415
43
57
44
30

10,562¶
2,255¶
10,570†
9,866†
27

30,398†
44†
61†
46†
31†

13,310¶^
2,194¶^
13,348†^
13,209†^

32,065†^
44†^
59†^
45†^
32†^

1.9†

1.4†

0.94†^

11.2†

0
73.7†
NA

1,001†
43

365†

3†
64

10.7†

0†
77.9†
78.2†

1,156†
58

406†

0†
69

US$ million

55.2#

50.0

US$ million

Percentage

20.1#†

99†

17.8†

95^^

Petajoules
Metric kilotonnes
Gigalitres
Metric kilotonnes
Percentage

3.73
326
4.44
59.02
40

3.92
347
4.67
55.54
38

12.1†

0†^
76.2†^
76.2†^

1,232†^
60

475†^

3†^

42.6

13.7†

94†

4.21†^
336†^

4.86
72.00
44

44
44

20
39

† Data for nominated period has received limited assurance by Ernst & Young.
¶ Operating Revenue and Net Profit extracted from the audited financial statements.
†† Safety related recalls relate to finished products which must be retrieved due to a known or possible adverse or health related impact on a patient. These include

safety related recalls which are classified as a class 1 and 2 recall by the regulator.

§ See page 47 for more on reporting boundary.
# Accounting practices for CSL Seqirus Australia product donations changed in 2020/21 to account for indirect and direct costs (versus direct only for prior years).
^ Includes CSL Vifor data. TRIFR and environmental metrics includes CSL Vifor data for Switzerland only.
^^ Data for nominated period has received limited assurance by Ernst & Young. Data collection method changed for the reporting period, see section 9, Plasma donors.

Reporting Boundary
Our disclosure covers the businesses and operations over which we exercise direct control and incorporates CSL Limited, CSL Behring (including CSL Plasma),
CSL Seqirus, CSL Vifor and global research and development (R&D). This includes our nine manufacturing facilities in Australia, China, Europe, the UK and the
United States as well as R&D, sales and marketing, distribution and administration activities co-located with these facilities. Other R&D activities, sales and
marketing, distribution and administrative activities occurring away from our manufacturing facilities are also covered by this report, including the full network
of donation centres, laboratories and administration offices operated by CSL Plasma. Where indicated, CSL Vifor, which was acquired in August 2022, has been
excluded in some metrics as integration/harmonisation activities continue.

CSL Limited Annual Report 2022/2313 Medical Glossary

Adjuvant is a substance which enhances the body’s
immune response to an antigen.

Albumin is any protein that is soluble in water and
moderately concentrated salt solutions and is coagulable
by heat. It is found in egg whites, blood, lymph, and other
tissues and fluids. In the human body, serum albumin is
the major plasma protein (approximately 60% of the total).

Alpha-1 antitrypsin deficiency is an inherited disorder that
may cause lung disease and liver disease.

Antivenom (or antivenin, or antivenene) is a biological
product used in the treatment of venomous bites or stings.

Autoimmune disease is when the body’s immune system
attacks healthy cells.

Biopharmaceuticals are proteins (including antibodies),
nucleic acids (DNA, RNA or antisense oligonucleotides)
used for prophylactic or therapeutic purposes.

Cell-based (technology) for the manufacture of influenza
vaccines, is a process of growing viruses in animal cells.

Chronic inflammatory demyelinating polyneuropathy
(CIDP) is a neurological disorder which causes gradual
weakness and a loss in sensation mainly in the arms
and legs.

Coagulation is the process of clot formation.

Coronavirus is a group of RNA viruses that cause a variety
of respiratory, gastrointestinal and neurological diseases
in humans and other animals.

COVID-19 is an infectious disease caused by a newly
discovered coronavirus SARS-CoV-2.

Haemophilia is a haemorrhagic cluster of diseases
occurring in two main forms:

Haemophilia A (classic haemophilia, factor VIII deficiency),
an X linked disorder due to deficiency of coagulation
factor VIII.

Haemophilia B (factor IX deficiency, Christmas disease),
also X linked, due to deficiency of coagulation factor IX.

Hereditary angioedema (HAE) is a rare but serious
genetic disorder caused by low levels or improper
function of a protein called C1-esterase inhibitor.
It causes swelling, particularly of the face and airways,
and abdominal cramping.

Immunoglobulins (IgG), also known as antibodies, are
proteins produced by plasma cells. They are designed
to control the body’s immune response by binding to
substances in the body that are recognised as foreign
antigens (often proteins on the surface of bacteria
or viruses).

Inherited respiratory diseases are diseases that are passed
from parents to their children through their genes. Alpha-1
antitrypsin deficiency is an example of an inherited disorder
that may cause lung disease and liver disease.

Influenza, commonly known as flu, is an infectious disease
of birds and mammals caused by an RNA virus of the family
Orthomyxoviridae (the influenza viruses).

Intravenous is the administration of drugs or fluids directly
into a vein.

Monoclonal antibody (mAb) is an antibody produced by
a single clone of cells. Monoclonal antibodies are a
cornerstone of immunology and are increasingly coming
into use as therapeutic agents.

Neurology is the science of nerves and the nervous system.

Next-generation mRNA (sa-mRNA) is a technology
designed to enhance protein production within cells.
With this technology, the mRNA incorporates an element
that allows the host cell to make copies of the administered
mRNA, which in turn increases the amount of protein that
the cell produces. This next-generation technology makes
it useful for vaccine development at lower doses than with
the original mRNA vaccines, and as an approach in gene
therapy. Offering improved protein expression that
potentially enhances the effectiveness of treatments and
enables more robust therapeutic interventions are some
of the benefits of this approach.

Pandemic is the worldwide spread of a disease.

Pharmacovigilance is the practice of monitoring the effects
of medical drugs after they have been licensed for use,
especially in order to identify and evaluate previously
unreported adverse reactions.

Plasma is the yellow-coloured liquid component of blood
in which blood cells are suspended.

Primary immunodeficiency (PI) is an inherited condition
where there is an impaired immune response. It may be
in one or more aspects of the immune system.

Prophylaxis is the action of a vaccine or drug that acts
to defend against or prevent a disease.

Q fever is a bacterial infection that can cause a severe
flu-like illness. It is spread to humans by animals, most
commonly sheep, goats and cattle.

Quadrivalent influenza vaccine is a vaccine that offers
protection against four different influenza virus strains.

Recombinants are proteins prepared by recombinant
technology. Procedures are used to join together
segments in a cell-free system (an environment outside
a cell organism).

Subcutaneous is the administration of drugs or fluids
into the subcutaneous tissue, which is located just below
the skin.

Trivalent influenza vaccine is a vaccine that offers
protection against three different influenza virus strains.

von Willebrand disease (vWD) is a hereditary disorder
caused by defective or deficient von Willebrand factor,
a protein involved in normal blood clotting.

CSL Limited Annual Report 2022/2314 Financial Performance

Contents

Directors’ Report

Auditor’s Independence Declaration

Independent Limited Assurance Report

Notes to the Financial Statements

Directors’ Declaration

Independent Auditor’s Report

116

162

163

CSL Limited Annual Report 2022/23Directors’ Report

The Board of Directors of CSL Limited (CSL) is pleased to present their report on the consolidated entity for the year ended
30 June 2023.

The information referred to below forms part of and is to be read in conjunction with this Directors’ Report:

• the Chair and CEO messages (from page 2);

• Our Company (from page 8);

• CSL’s Performance and Strategy (from page 20);

• CSL’s Material Risks (from page 26);

• CSL’s Future Prospects (from page 28);

• CSL’s Governance (from page 60);

• the Remuneration Report (from page 85); and

• the Auditor’s Independence Declaration (page 80).

1. Principal activities, strategy and

3. Directors

operating model

The principal activities of the consolidated entity during the
financial year were the research, development, manufacture,
marketing and distribution of biopharmaceutical products
and vaccines.

CSL is a leader in global biotechnology, and develops and
delivers innovative medicines that save lives, protect public
health and help people with life-threatening medical
conditions to live full lives. CSL’s 2030 Strategy is delivered
through its five strategic objectives: Focus; Innovation;
Efficiency & Reliable Supply; Sustainable Growth; and Digital
Transformation. More detail on CSL’s performance against its
2030 strategic objectives can be found in CSL’s Performance
and Strategy.

CSL’s operating model for its businesses leverage
multifunctional teams that connect with each other to share
best practice. CSL’s operating model is based around four
key value creation activities: early stage research, product
translation, manufacturing, and patient access. CSL’s
commercial and functional areas operate globally, with the
Global Leadership Group responsible for the day-to-day
management of the Group and delivery of CSL’s strategic
objectives. More detail on CSL’s operations can be found
in Our Company and CSL’s Performance and Strategy.

CSL completed the acquisition of CSL Vifor on 9 August 2022.
The acquisition of CSL Vifor adds near-term value along with
a clear path to long-term sustainable growth. It also adds
a strong management team, along with a high-value and
complementary portfolio of products and market leading
position in the nephrology and iron deficiency spaces.
Further details on CSL Vifor acquisition can be found in
Note 2 (Business Combination) of the Financial Statements.

2. Operating and financial review

CSL discloses its financial performance by segment
information. The Group’s segments represent strategic
business units that offer different products and operate
in different industries and markets. This provides the most
meaningful insight into the nature and financial outcomes
of CSL’s activities and is consistent with the way in which the
CEO monitors and assess business performance and resource
allocation decisions. Information on the operations and
financial position for CSL and likely developments in the CSL
Group’s operations in future financial years is set out in the
Operating and Financial Review (OFR). Further details on
CSL’s segment reporting can be found in Note 1 (Segment
Information) of the Financial Statements.

The directors who served at any time during 2022/23 or up
until the date of this Directors’ Report were Dr Brian McNamee
AO, Dr Paul McKenzie, Mr Paul Perreault, Mr Bruce Brook,
Dr Megan Clark AC, Professor Andrew Cuthbertson AO, Ms
Carolyn Hewson AO, Professor Duncan Maskell, Ms Marie
McDonald and Ms Alison Watkins AM.

Further details of the current directors are set out in the
Governance section of CSL’s 2022/2023 Annual Report or
on CSL.com. These details include the period for which each
director held office up to, and including, the date of this
Directors’ Report, their qualifications, independence,
experience and particular responsibilities, the directorships
held in other listed companies since 1 July 2020 and the
period for which each directorship has been held.

Dr Paul McKenzie was appointed as an Executive Director
of CSL with effect from 13 December 2022 and appointed as
CEO and MD with effect from 6 March 2023. Mr Paul Perreault
retired from the Board of Directors on 5 March 2023.

4. Company Secretary

Ms Fiona Mead, BCom/LLB (Hons) FGIA, GAICD, was appointed
and commenced in the position of Company Secretary and
Head of Corporate Governance on 4 June 2018 and continues
in office as at the date of this report.

Ms Mead was previously the company secretary and a
member of the executive leadership team at Tabcorp
Holdings Limited. Prior to that, she was the company
secretary at Asciano Limited. Ms Mead also served as assistant
company secretary at Telstra Corporation. Fiona began her
career as a lawyer with law firm Ashurst.

5. Director’s attendance at meetings

The Board meets as often as necessary to fulfil its role.
Directors are required to allocate time to CSL to perform
their responsibilities effectively, including adequate time
to prepare for Board meetings. During the reporting year,
the Board met nine times, with all of those meetings held
in Australia.

Members of the Global Leadership Group and other
members of senior management attend Board meetings
by invitation.

Director attendance at Board and standing Board committee
meetings during 2022/23 is set out in Table 1 below.

CSL Limited Annual Report 2022/23Table 1: 2022/23 Director Attendance at Board and Committee meetings

Board of Directors

Audit and Risk
Management
Committee

Human Resources
and Remuneration
Committee

Innovation and
Development
Committee

B McNamee

B Brook

C Hewson

M Clark

A Cuthbertson

M McDonald

D Maskell

A Watkins

P McKenzie3

P Perreault4

Corporate
Governance
and Nomination
Committee

A Number of meetings held whilst a member.
B

Number of meetings attended. Board Committee meetings are open to all directors to attend. Where a director attended a meeting of a committee
of which they were not a member, it is indicated with an asterisk*.

1. One of the Audit and Risk Management Committee meetings was held jointly with the Human Resources and Remuneration Committee.
2. One of the Human Resources and Remuneration Committee meetings was held jointly with the Audit and Risk Management Committee.
3. Dr Paul McKenzie was appointed to the CSL Board on 13 December 2022.
4. Mr Paul Perreault retired from the CSL Board effective 5 March 2023.

6. Dividends

On 14 August 2023, the directors resolved to pay a final dividend of US$1.29 per ordinary share to be paid on 4 October 2023,
10% franked, bringing dividends per share in respect of the 2023 financial year to US$2.36 per share. In accordance with
determinations by the directors, CSL does not operate a dividend investment plan.

Dividends paid during the year were as follows:

Dividend

Date paid

Final dividend for year ended 30 June 2022

05 October 2022

Franking
per share

10% franked at
30% tax rate

Amount
per share
US$

1.18 cents

Interim dividend for year ended 31 December 2022

05 April 2023

Unfranked

1.07 cents

Total
dividend
US$

$569m

$516m

Dividends are determined after period-end and announced with the results for the period. Interim dividends are typically
determined in February and paid in April. Final dividends are typically determined in August and paid in October. Dividends
determined but not yet paid are not recorded as a liability at the end of the period to which they relate.

7. Developments in operations in future

CSL Vifor acquisition

years and expected results

The OFR sets out information on CSL’s business strategies
and prospects for future financial years and refers to likely
developments in CSL’s operations and the expected results of
those operations in future financial years. Certain information
is excluded because it is likely to result in material detriment
or unreasonable prejudice to the Group.

8. Significant changes and

subsequent events

CEO Transition

On 13 December 2022, CSL announced the appointment of
Dr Paul McKenzie as Managing Director and Chief Executive
Officer of CSL with effect from 6 March 2022, upon the
retirement of Mr Paul Perreault.

On 9 August 2022, CSL completed the acquisition of CSL Vifor.
See Note 2 (Business Combination) and Note 11 (Financial Risk
Management) of the Financial Statements for further details.

Other than as disclosed in the Directors’ Report (which
includes the OFR) and information as disclosed in Note 24
(Subsequent Events) of the Financial Statements, the
directors are not aware of:

• any significant changes in the consolidated entity’s state of
affairs during the year or to the Group’s principal activities
during the year; or

• any other matter or circumstance which has arisen since the
end of the financial year which has significantly affected or
may significantly affect the operations of the Group, results
of those operations or the state of affairs of the Group in
subsequent financial years.

CSL Limited Annual Report 2022/23

9. Environmental regulation

10. Directors’ shareholdings and interests

The interests of the directors in the shares, options and
performance rights of CSL are set out in the Remuneration
Report – Tables 11 and 12 for executive key management
personnel (KMP) and Tables 16 and 17 for non-executive
directors. The Group’s Securities Dealing Policy prohibits KMP
from entering into transactions which limit exposure to risk
in relation to securities granted under CSL’s equity incentive
schemes. From time to time the Company Secretary makes
inquiries of KMP as to their compliance with this policy.

11. Performance rights and options

As at 30 June 2023, the number of unissued ordinary shares
in CSL under options and under performance rights are set
out in Note 6 (People Costs) and Note 19 (Detailed Information
– Shareholder Returns) of the Financial Statements. Holders
of options or performance rights do not have any right, by
virtue of the options or performance rights, to participate
in any share issue by CSL or any other body corporate
or in any interest issued by any registered managed
investment scheme.

The number of options and performance rights exercised
during the financial year and the exercise price paid to
acquire fully paid ordinary shares in CSL is set out in Note 6
(People Costs) of the Financial Statements. Since the end
of the financial year, no shares were issued under CSL’s
Performance Rights Plan.

Since the end of the financial year, 2,124 Restricted Share
Units have been forfeited due to participant cessation
of employment.

There has been no change to the information contained
in Note 18 (Detailed Information – People Costs) to the
Financial Statements or Note 19 (Detailed Information –
Shareholder Returns).

12. Indemnification of directors and officers

During the financial year, the insurance and indemnity
arrangements discussed below were in place concerning
directors and officers of the consolidated entity.

CSL has entered into a Director’s Deed with each director
regarding access to Board papers, indemnity and insurance.
Each deed provides:

1. an ongoing indemnity to the relevant director against

liability incurred by that director as an officer of CSL or a
related body corporate. The indemnity is given to the extent
permitted by law and to the extent and for the amount that
the relevant director is not otherwise entitled to be, and is
not actually, indemnified by another person or out of the
assets of a corporation, where the liability is incurred in or
arising out of the conduct of the business of that corporation
or in the discharge of the duties of the director in relation
to that corporation;

and compliance

To meet industry and regulatory standards at our facilities,
CSL uses an Environmental, Health and Safety (EHS)
Management System. This system covers compliance with
government regulations and commitments for continuous
improvement of health and safety in the workplace, as
well as minimising the negative effects of operations
on the environment.

In 2022/23, CSL improved global alignment across several key
EHS programs. This included updating the Global EHS audit
and governance program and the development of
standardised global processes to identify and control
activities, where the absence or failure to use a control could
expose employees to serious injury or fatality. The focus on
the identification and standardised control of EHS risk across
the CSL network will continue in 2023/24.

CSL continues to mature our overall environmental
sustainability program, imbedding environmental
considerations into our work practices. Key environmental
principles are driven by processes like our EHS by Design
program (and the operational identification of environmental
aspects and impacts), in alignment with ISO 14001 principles,
to further reduce CSL’s potential impact on the environment
and our local communities.

Our Australian subsidiaries continue to be classified as an
established licensee in respect of CSL’s self-insurance license
as granted by the Safety, Rehabilitation and Compensation
Commission with an eight-year license extension granted
in 2023.

The following notices were provided to CSL by local
government agencies in 2022/23:

• In 2022, CSL Seqirus, Holly Springs (United States) received a
Notice of Violation (lowest level of violation with no monetary
impact) from the state Department of Environmental
Quality (DEQ). The notice was associated with some minor
labelling and administrative document updates.

• In 2022, CSL Plasma (United States) received an

Occupational Safety and Health Administration (OSHA)
Citation: Other than serious, with non-monetary violation
for non-contiguous blood borne pathogen procedure.

• In 2023, CSL Plasma (United States) received an OSHA

Citation: Other than serious, with a US$600 fine for failing
to report an employee hospitalisation within the required
time frame.

• In 2023 CSL’s facility in Pasadena (United States) received
a violation with no monetary impact from the local fire
department, for a flammable cabinet in one of the research
labs that did not have an automatic closure device.

• In 2023, CSL’s facility in Wuhan (China) was issued a violation
by the environmental protection authority for failing to meet
discharge limits of chemical oxygen demand (COD) as
outlined in the site’s discharge permit. The penalty issued
was US$16,548 (RMB120,000).

CSL has met its reporting obligations under the Australian
Government’s National Greenhouse and Energy Reporting
Act 2007 and Victorian Government’s Industrial Waste
Management Policy (National Pollutant Inventory).

Additional EHS performance details, including workplace
safety, can be found in CSL’s People on page 40 and
Environment on page 46.

Directors’ ReportCSL Limited Annual Report 2022/232. that CSL will purchase and maintain an insurance policy
which covers directors against liability as a director and
officer of CSL. Coverage will be maintained for a minimum
of seven years following the cessation of office for each
director; and

3. the relevant director with a right of access to Board papers

in connection with any relevant proceedings.

In addition to the Director’s Deeds, Rule 95 of CSL’s
constitution requires CSL to indemnify each ‘officer’ of CSL
and of each wholly owned subsidiary of CSL out of the assets
of CSL ‘to the relevant extent’ against any liability incurred by
the officer in or arising out of the conduct of the business of
CSL or in the conduct of the business of such wholly owned
subsidiary of CSL or in the discharge of the duties of the
officer, unless incurred in circumstances which the Board
resolves do not justify indemnification. Further details are set
out in the Constitution, available on CSL.com (We Are CSL >
Corporate Governance).

No payment has been made to indemnify a current or former
director or officer during or since the financial year.

CSL paid insurance premiums in respect of a contract
insuring each individual director of CSL and each full time
executive officer, director and secretary of CSL and its
controlled entities, against certain liabilities and expenses
(including liability for certain legal costs) arising as a result
of work performed in their respective capacities, to the extent
permitted by law. It is a condition of the insurance contract
that no details of the premiums payable or the nature of the
liabilities insured are disclosed.

In addition, CSL Behring, as the employing entity, indemnifies
both the former and current CEO if they are subject to
additional tax on their remuneration in any jurisdiction other
than the United States. Under this indemnity, CSL agrees to
reimburse the CEO for the net difference between US and
foreign tax liabilities after taking into account any credits
available to the CEO in the United States. To the extent that
this is an additional benefit, the reimbursement will be
grossed up by CSL before payment.

No payment has been made in respect of this indemnity
during or since the financial year.

13. Indemnification of auditors

To the extent permitted by law, CSL has agreed to indemnify
its auditors, Ernst & Young, as part of the terms of its audit
engagement agreement against claims by third parties
arising from the audit (for an unspecified amount). No
payment has been made to indemnify Ernst & Young during
or since the financial year. No insurance premiums were paid
for Ernst & Young during the financial year.

14. Auditor independence and

non-audit services

CSL may decide to employ the auditor on assignments
additional to their statutory audit duties where the auditor’s
expertise and experience with CSL and/or the consolidated
entity are important.

Details of the amounts paid or payable to the entity’s auditor,
Ernst & Young, for non-audit services provided during the year
are set out below. The directors, in accordance with the advice
received from the Audit and Risk Management Committee,
are satisfied that the provision of non-audit services is
compatible with, and did not compromise, the general
standard of independence for auditors imposed by the
Corporations Act 2001 (Cth) for the following reasons:

1. all non-audit services have been reviewed by the Audit and
Risk Management Committee to confirm that they do not
affect the impartiality and objectivity of the auditor; and

2. none of the services undermine the general principles

relating to auditor independence as set out in Professional
Statement F1, including reviewing or auditing the auditor’s
own work, acting in a management or a decision making
capacity for CSL, acting as an advocate for CSL or jointly
sharing economic risks and rewards.

A copy of the auditors’ independence declaration as required
under section 307C of the Corporations Act 2001 (Cth)
accompanies and forms part of this report.

Note 20 (Auditor Remuneration) of the Financial Statements
shows the fees that were paid or were payable for services
provided by CSL’s auditor and by the auditor’s related
practices for the 2022/23 financial year.

In line with an observed trend in many jurisdictions towards
a tenure limit for audit firms, CSL completed its competitive
external audit tender process during FY2021/22. The Company
has recommended the appointment of Deloitte Touche
Tohmatsu as the Company’s external auditor commencing
for the year ending 30 June 2024, subject to regulatory and
shareholder approval.

15. Rounding

The amounts contained in this report and in the financial
report have been rounded to the nearest million dollar (where
rounding is applicable) unless specifically stated otherwise
under the relief available to the Company under ASIC
Corporations Instrument 2016/191. CSL is an entity to which
the Instrument applies.

CSL Limited Annual Report 2022/23Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001

Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au

Auditor’s independence declaration to the directors of CSL Limited

As lead auditor for the audit of the financial report of CSL Limited for the financial year ended 30
June 2023, I declare to the best of my knowledge and belief, there have been:

a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in

relation to the audit;

b. No contraventions of any applicable code of professional conduct in relation to the audit; and

c. No non-audit services provided that contravene any applicable code of professional conduct in

relation to the audit.

This declaration is in respect of CSL Limited and the entities it controlled during the financial year.

Ernst & Young

Kylie Bodenham
Partner
14 August 2023

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

Directors’ ReportCSL Limited Annual Report 2022/23

Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001

Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au

Independent Limited Assurance Report to the Management and Directors
of CSL Limited

Our Conclusion

Ernst & Young (‘EY’, ‘we’) were engaged by CSL Limited (‘CSL’) to undertake a limited assurance
engagement as defined by Australian Auditing Standards, hereafter referred to as a ‘review’, over the
Subject Matter defined below for the year ended 30 June 2023. Based on the procedures we have
performed and the evidence we have obtained, nothing has come to our attention that causes us to
believe the Subject Matter has not been prepared, in all material respects, in accordance with the Criteria
defined below.

What our review covered

We reviewed CSL’s preparation and application of its materiality process against the Global Reporting
Initiative (GRI) 2016 Standards’ Materiality Principle for defining reporting content, as included in CSL’s
2023 Annual Report (‘the Report’) and online at
https://www.csl.com/sustainability/governance/stakeholder-engagement-and-material-topics.

We also reviewed the Selected Disclosures, listed below, as disclosed in CSL’s Report, for the year ended
30 June 2023.

Material topic

Selected Disclosures

Page Reference

Health, safety
and wellbeing

Product safety
and quality

1. Total Recordable Incident Frequency Rate (TRIFR), non-plasma

1. 45, 73

2. Total Recordable Incident Frequency Rate (TRIFR), plasma

3. Fatalities

1. Regulatory audits, Plasma

2. 45, 73

3. 45, 73

1. 20, 53, 73

2. Good Manufacturing Practice (GMP) manufacturing regulatory audits

2. 20, 53, 73

3. Critical findings in Plasma and Manufacturing regulatory inspections

3. 53

that prevent release of commercial product

4. Safety related product recalls

Communities we
operate in

1. Economic value generated

2. Economic value distributed

Accessible &
affordable
healthcare

Humanitarian aid/product assistance

Innovation & R&D Total R&D investment

Employee Opinion Survey Results

Talent
recruitment,
development and
retention

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

4. 53, 73

1. 73

2. 20, 53, 73

20, 55, 73

10, 20, 21, 73

20, 44, 73

CSL Limited Annual Report 2022/23

1. 57, 73

2. 57

3. 57

1. 8, 22, 23,
24, 40, 73

2. 41

3. 20, 40, 73

1. 47, 73

2. 48

3. 47, 73

4. 48

Donors

Plasma Donor Survey Results for:

Diversity,
equity and
inclusion

Energy &
emissions

1. % of plasma donors willing to donate again

2. % of plasma donors wiling to refer a friend

3. Self-reported occupational status

1. Workforce total

2. Generational diversity profile for all employees

3. Female and male breakdown across the following employee categories:

All employees, Board members, Senior Executives, and People
Managers

1. Scope 1 & 2 emissions

2. Scope 1 & 2 emissions baseline (FY19-FY21)

3. Energy consumed

4. Scope 3 emissions baseline (FY19-FY21)

Criteria applied by CSL

CSL applied the following Criteria:

► In preparing and applying its materiality process, CSL applied the GRI 2016 Standard’s Materiality

Principle for defining report content

► In preparing the Selected Disclosures, CSL applied its own custom criteria, as defined throughout

the Annual Report

► In preparing Selected Disclosures (Energy & emissions), CSL applied its own custom criteria,

informed by the Greenhouse Gas (GHG) protocol and National Greenhouse and Energy Reporting
Regulations 2008 (“NGER Regulations”)

Key responsibilities

EY’s responsibility and independence

Our responsibility is to express a conclusion on the Subject Matter based on our review.

We have complied with the independence and relevant ethical requirements, which are founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.

The firm applies Auditing Standard ASQM 1 Quality Management for Firms that Perform Audits or Reviews
of Financial Reports and Other Financial Information, or Other Assurance or Related Services
Engagements, which requires the firm to design, implement and operate a system of quality management
including policies or procedures regarding compliance with ethical requirements, professional standards
and applicable legal and regulatory requirements.

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

Directors’ ReportCSL Limited Annual Report 2022/23

CSL’s responsibility

CSL’s management is responsible for selecting the Criteria, and for presenting the materiality process,
identified material topics and Selected Disclosures in accordance with that Criteria, in all material
respects. This responsibility includes establishing and maintaining internal controls, maintaining adequate
records and making estimates that are relevant to the preparation of the subject matter, such that it is
free from material misstatement, whether due to fraud or error.

Our approach to conducting the review

We conducted this review in accordance with the Australian Auditing and Assurance Standards Board’s
Australian Standard on Assurance Engagements Other than Audits or Reviews of Historical Financial
Information (‘ASAE 3000’) and the terms of reference for this engagement as agreed with CSL on 13 July
2023. That standard requires that we plan and perform our engagement to express a conclusion on
whether anything has come to our attention that causes us to believe that the Subject Matter is not
prepared, in all material respects, in accordance with the Criteria, and to issue a report.

Summary of review procedures performed

A review consists of making enquiries, primarily of persons responsible for preparing the Selected
Disclosures and related information and applying analytical and other review procedures.

The nature, timing, and extent of the procedures selected depend on our judgement, including an
assessment of the risk of material misstatement, whether due to fraud or error. The procedures we
performed included, but were not limited to:

► Assessed the Report for disclosure of the materiality process and the coverage of identified topics in

line with the GRI principle of materiality for defining report content

► Conducted interviews with key personnel at the corporate level and selected sites to understand

CSL’s process for collecting, collating, and reporting the Selected Disclosures during the reporting
period

► Understand processes and controls supporting preparation and presentation of the Selected

Disclosures

► Undertook analytical review procedures to support the reasonableness of the data
► Performed recalculations of Selected Disclosures to check reported quantities
► Tested, on a sample basis, underlying source information to check the accuracy of the data
► Assessed Selected Disclosures against regulatory body websites to confirm accuracy and

completeness of reporting

► Tested aggregation of site-based Selected Disclosures and transcription to the Report
► Reviewed the presentation of the Selected Disclosures within the Annual Report

We believe that the evidence obtained is sufficient and appropriate to provide a basis for our review
conclusion.

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

CSL Limited Annual Report 2022/23

Inherent limitations

Procedures performed in a review engagement vary in nature and timing from and are less in extent than
for a reasonable assurance engagement. Consequently, the level of assurance obtained in a review
engagement is substantially lower than the assurance that would have been obtained had a reasonable
assurance engagement been performed. Our procedures were designed to obtain a limited level of
assurance on which to base our conclusion and do not provide all the evidence that would be required to
provide a reasonable level of assurance.

While we considered the effectiveness of management’s internal controls when determining the nature
and extent of our procedures, our assurance engagement was not designed to provide assurance on
internal controls. Our procedures did not include testing controls or performing procedures relating to
assessing aggregation or calculation of data within IT systems.

The GHG quantification process is subject to scientific uncertainty, which arises because of incomplete
scientific knowledge about the measurement of GHGs. Additionally, GHG procedures are subject to
estimation and measurement uncertainty resulting from the measurement and calculation processes used
to quantify emissions within the bounds of existing scientific knowledge.

Other matters

We have not performed assurance procedures in respect of any information relating to prior reporting
periods, including those presented in the Subject Matter, other than for baseline data as stated in the
subject matter above. Our report does not extend to any disclosures or assertions made by CSL relating
to future performance plans and/or strategies disclosed in CSL’s 2023 Annual Report or supporting
disclosures online.

Use of our Assurance Report

We disclaim any assumption of responsibility for any reliance on this assurance report to any persons
other than management and the Directors of CSL, or for any purpose other than that for which it was
prepared. Our review included web-based information that was available via web links as of the date of
this statement. We provide no assurance over changes to the content of this web-based information after
the date of this assurance statement.

Ernst & Young

Meg Fricke
Partner
Melbourne
14 August 2023

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

Directors’ ReportCSL Limited Annual Report 2022/23

16. Remuneration Report

Dear Fellow Shareholder,

On behalf of the Board of Directors, I am pleased to present
CSL’s Remuneration Report (Report) for the financial year
ended 30 June 2023 (2023). This Report contains detailed
information regarding CSL’s Key Management Personnel
(KMP) for 2023.

CSL plays a critical role in the global community – providing
life-saving therapies to people with serious disease, and
vaccines that protect public health. The Board is proud of the
entire CSL team for delivering on this promise during 2023.

2023 CEO Remuneration Outcomes

On appointment to his role as CEO, Dr McKenzie’s
remuneration package comprised:

• Fixed Reward of US$1,750,000;

• A short term incentive (STI) target of 120% of Fixed

Reward; and

• A long term incentive (LTI) target held at 425%

of Fixed Reward.

Delivering on our Promise in 2023

Under the leadership of our former Chief Executive Officer
and Managing Director (CEO), Mr Paul Perreault, and our
CEO, Dr Paul McKenzie, CSL remained focused on its promise
to patients and public health and delivered:

• NPATA1 attributable to CSL Limited shareholders

of US$2,610m;

• Cashflow from Operations (CFO) of US$2,601m;

• An annual Return on Invested Capital (ROIC) of 12.2%;

These amounts result in a Total Target Direct Compensation
that is 10% lower than for the former CEO.

For the full 2023 performance year, Dr McKenzie will receive
a STI payment of US$1,376,890 (51% of maximum opportunity)
for performance across both the Chief Operating Officer and
CEO roles.

As the ROIC performance targets set for LTI awards tested
in 2023 were not all met, there was only partial vesting
of Dr McKenzie's awards.

• Earnings per Share (EPS) based on net profit attributable

to CSL Limited shareholders of US$4.55;

The 2023 ‘realised’ remuneration for Dr McKenzie was
US$4,351,551.

• Strong plasma collection growth and 12 new plasma

centres opened;

• Continued growth in the Research and Development

pipeline progression;

• HEMGENIX® launched in the US and EU;

• New registrations across all therapeutic areas;

• A licence agreement signed with Arcturus Therapeutics
for late-stage self-amplifying mRNA vaccine technology;

• Completion and progression of capacity and capital

expansion projects; and

• Significant progress on embedding long-term sustainability

approaches and governance with all targets achieved.

We also welcomed Vifor Pharma to the CSL Group, adding
a complementary portfolio of products and a market leading
position in the nephrology and iron deficiency fields. The
integration is substantially complete and the cost synergies
are well on track.

As communicated in the 2022 Report, Mr Perreault received
a Fixed Reward increase of 3.5% effective 1 September 2022
taking this to US$1,866,654. There was no change to his STI
target and he received an increase in his LTI target to 450%
from 400% of Fixed Reward. For the period he was KMP, Mr
Perreault will receive a STI payment of US$1,537,182 and has
2023 ‘realised’ remuneration of US$6,040,346, including
partial vesting on LTI outcomes.

Board Adjustments Applied to Remuneration

STI

The Board reviews the quality of earnings and risk management
outcomes each year. This year the Board made some
adjustments to NPATA and CFO for matters not anticipated
at the time of target setting, which resulted in a net adjustment
downward to STI outcomes. The NPATA vesting outcome was
at target and the CFO outcome was below target. Further
detail is provided in section 5.2. The Leading and Managing
Modifier was not applied in 2023.

KMP Changes

LTI

As announced in December 2022, Dr McKenzie was
appointed as an Executive Director on 13 December 2022 and
commenced as CEO on 6 March 2023. Details of Dr McKenzie’s
CEO arrangements can be found in section 2.2 of the Report.
Mr Perreault stepped down as CEO on 5 March 2023 and from
that date ceased to be KMP. He remains with the company
as a strategic advisor until he retires on 6 September 2023.
Details of Mr Perreault’s termination arrangements can be
found in section 2.2 of the Report.

We are also pleased to welcome Mr Andrew Schmeltz who
joined CSL on 30 June 2023 in the role of Executive Vice
President CSL Behring. Mr Schmeltz will become KMP
during 2024.

Finally, Mr Bruce Brook has indicated that he will retire from
the Board during the 2024 financial year after serving four
terms as a Non-Executive Director (NED).

Looking forward, there are three unvested LTI awards that were
granted to Executives prior to the acquisition of Vifor Pharma
(granted over calendar years 2019 to 2021). These will be tested
in calendar years 2023 and 2024. At the time of the grants,
performance hurdle targets against the metrics of ROIC
and EPS growth were set based on the financial projections
undertaken at the time and did not consider a material
acquisition. The Board has determined that it will keep these
performance targets and what is measured constant and will
take into account CSL Vifor performance when considering
overall vesting outcomes. Further detail is provided in section
10.3. All grants made after the acquisition include the
contribution of CSL Vifor.

The Board also retains discretion to adjust outcomes to take
account of company performance, individual performance
and alignment with the shareholder experience.

NPATA is defined as the statutory net profit after tax before impairment and amortisation of acquired intellectual property, business acquisition and integration
costs and the unwind of the inventory fair value uplift.

CSL Limited Annual Report 2022/23Remuneration Framework Changes Introduced
in 2023

As disclosed last year, the following changes were made
to the STI plan in 2023:

• Introduction of a global sustainability measure with a

weighting of 5%. This measure was introduced to focus our
Executives on establishing a robust program governance
process, reducing CO2 emissions, incorporating sustainable
design in our new facilities, and engaging with our supply
partners to achieve a low emission supply chain; and

• To align with our financial guidance approach, the NPAT STI
metric was replaced with NPATA. The Board believes this
measure provides shareholders with improved transparency
on the underlying performance of the business.

Remuneration in 2024

Executive KMP

As discussed in prior year Reports and across investor
meetings, the Board continues to review and adjust the
reward of Executive KMP to drive positioning towards the
median of our global pharmaceutical/biotechnology
peer group.

For 2024, the Board has determined that in line with our
global workforce:

• Dr McKenzie will receive a 3.5% increase to Fixed Reward

and no change to his STI or LTI target. This increase
positions Dr McKenzie at 74% of the median of our global
pharmaceutical/biotechnology peer group; and

• Ms Joy Linton, our Chief Financial Officer, will receive an

increase to Fixed Reward of 3.95%, inclusive of the
superannuation guarantee increase applied at 1 July 2023.
Ms Linton will have no change to her STI and LTI targets.
Ms Linton’s position against the global pharmaceutical/
biotechnology peer group will be 70% of the median.

NED fees

Following benchmarking against ASX12 NED remuneration,
there will be an increase in fees of 3% for all Board and
Committee roles, effective 1 July 2023. The increase enables
CSL to offer a competitive fee to attract and retain
experienced directors. The total amount payable to NEDs will
remain within the existing fee pool approved by shareholders
on 12 October 2016.

Remuneration Framework Changes in 2024

In 2023, we received feedback from our shareholders and
external stakeholders regarding the LTI ROIC measure. We
value your feedback and from 2024 the ROIC performance
period will change from seven years (four year look back/
three year forward look) to a three-year forward looking
performance period. The ROIC gateway performance
measure, which was previously introduced to address
concerns about the impact of the four year look back, will
not apply to the new three year forward looking measure.

Additionally, an adjustment will be made to the EPS growth
LTI metric – we will move from NPAT to NPATA to align with
the financial guidance we provide externally.

Review of the Executive Remuneration
Framework in 2024

In competing for talent in a global market, it is critical that we
have a remuneration framework that attracts and retains high
quality talent to deliver on our strategy and deliver results.

In 2024, the Board will continue to evaluate the Executive
KMP remuneration framework to ensure it remains
competitive with our global pharmaceutical/biotechnology
peers. A key focus will be the further review of our LTI
program. As we talk to our stakeholders over the coming
months, we will further share our thinking and seek feedback.

Thank you to my fellow HRRC members and thank you for
supporting CSL and the patients we serve around the world.

Dr Megan Clark AC
Chair
Human Resources and Remuneration Committee

Subsequent to the publication of this letter on 15 August
2023, the Board has made the decision not to adjust the
EPS measure for LTI awards to be granted in 2024. The EPS
measure will continue to use NPAT as opposed to NPATA.

Directors’ ReportCSL Limited Annual Report 2022/23Contents

1. CSL Key Management Personnel

2023 Key Management Personnel Remuneration
Outcomes at a Glance

Executive Key Management Personnel Statutory
Remuneration Tables

7. Remuneration in 2024

3. Global Remuneration Framework

8. Non-Executive Director Remuneration

4. CSL Performance and Shareholder Returns

9. Remuneration Governance

5. Executive Key Management Personnel Outcomes in 2023

10. Additional Employee Equity Programs and Legacy

Plan Information

Independent Audit of the Report

The Remuneration Report for the year ended 30 June 2023 (Report) has been audited by Ernst & Young (EY). Please see page 167
of the Financial Statements for EY’s report.

1. CSL Key Management Personnel

This Report sets out remuneration information for CSL’s Key Management Personnel (KMP) which includes Non-Executive Directors
(NEDs), the Executive Director (i.e. the Chief Executive Officer and Managing Director (CEO)) and those key senior executives who
have authority and responsibility for planning, directing and controlling the activities of CSL during the financial year (together
with the Executive Director, referred to as Executive KMP). The CSL KMP during the financial year ended 30 June 2023 (2023)
and changes to KMP are outlined in Table 1. Each of the KMP listed in Table 1 held their position for the full reporting period,
unless stated otherwise.

On 6 March 2023, Dr Paul McKenzie commenced as CEO, succeeding Mr Paul Perreault. Dr McKenzie was appointed an
Executive Director on 13 December 2022.

On 5 March 2023, Mr Perreault stepped down as CEO and ceased to be KMP from that date. Mr Perreault will remain with CSL
as a strategic advisor until his retirement in September 2023.

On 30 June 2023, CSL welcomed Mr Andrew Schmeltz who was appointed to the position of Executive Vice President CSL
Behring, overseeing Commercial Development and Operations, Therapeutic Area Strategy, Market Access, Plasma Strategy
and Operations, Supply Chain, Operations, Manufacturing, Procurement, Planning, Safety, and Quality across the CSL Behring
business. Given the significant remit of Mr Schmeltz’s role, he will become KMP during 2024 and all remuneration details will
be presented in CSL’s 2024 Remuneration Report.

In 2024, Mr Bruce Brook will retire from the Board after serving four terms as a NED.

Table 1: CSL Key Management Personnel in 2023

Non-Executive Directors

Executive KMP

Chairman – Dr Brian McNamee AO

Mr Bruce Brook

Dr Megan Clark AC

Executive Director and Chief Executive Officer and Managing
Director (CEO) – Dr Paul McKenzie – from 6 March 2023

Executive Director and Chief Operating Officer (COO) –
Dr Paul McKenzie – 13 December 2022 to 5 March 2023

Professor Andrew Cuthbertson AO

COO – Dr Paul McKenzie – 1 July 2022 to 12 December 2022

Ms Carolyn Hewson AO

Professor Duncan Maskell

Ms Marie McDonald

Ms Alison Watkins AM

Chief Financial Officer – Ms Joy Linton

Former Executive Key Management Personnel

Executive Director and Chief Executive Officer and Managing
Director (CEO) – Mr Paul Perreault – 1 July 2022 to 5 March 2023

CSL Limited Annual Report 2022/23
2. 2023 Key Management Personnel Remuneration Outcomes at a Glance

Paul McKenzie

• Received an increase to Fixed Reward (FR) of 3.5% at 1 September 2022 (for his COO role).
On appointment to his role of CEO, an increase of 72% was applied effective 6 March 2023

• A short term incentive (STI) payment of US$1,376,890 – 51% of maximum opportunity (apportioned

across the COO and CEO roles)

• Long term incentive (LTI) vesting based on performance of US$1,634,350 (face value at vesting date)

• ‘Realised’ remuneration in 2023 of US$4,351,551 (reflects performance across COO and CEO roles)

Joy Linton

• Received an increase to FR of 3.7% at 1 September 2022 (inclusive of the superannuation

guarantee increase)

• STI of US$946,395 was paid – 53% of maximum opportunity

• LTI vesting based on performance of US$1,003,581 (face value at vesting date)

• ‘Realised’ remuneration in 2023 of US$2,994,327

Paul Perreault

• Received an increase to FR of 3.5% increase effective 1 September 2022

• STI of US$1,537,182 was paid – 50% of maximum opportunity (for the period of the year as Executive KMP)

• LTI vesting based on performance of US$3,148,999 (face value at vesting date)

• ‘Realised’ remuneration in 2023 of US$6,040,346 (for period of year as Executive KMP)

NEDs

• An increase of 3% was applied to all Board and Committee fees effective 1 July 2022 (within the

existing fee cap)

2.1 2023 Executive KMP Realised Remuneration

The table below discloses the ‘realised’ remuneration for the year ended 30 June 2023 in US Dollars (US$). This is a voluntary
disclosure which the Board believes presents a simple and transparent view of what the Executive KMP’s actual take-home pay
was in 2023. These outcomes are aligned with the Executive KMP’s and CSL’s performance during 2023, as well as being aligned
to CSL’s longer term performance. See section 6 Table 10 for the Statutory Remuneration disclosure that has been prepared
in accordance with the Australian accounting standards. The details for Mr Perreault reflect his period as Executive KMP.

Table 2: Executive KMP ‘Realised’ Remuneration (Received or Available as Cash) in 2023

2023 Total Fixed

Received US$2

2023 STI
US$3

LTI Vested in

2023 US$4

Total Reward
Reward US$

Total LTI Reward
Received (valued
at grant date)

US$5

LTI Growth in
Value (due to
share price
growth) US$6

2023

1,340,311

1,044,351

2023

2019 – 2023

1,376,890

946,395

1,634,350

1,003,581

4,351,551

2,994,327

1,446,967

901,287

187,383

102,294

Executive

Period Earned

P McKenzie

J Linton

Former Executive KMP

P Perreault7

1,354,165

1,537,182

3,148,999

6,040,346

2,806,440

342,559

Includes base salary, retirement/superannuation benefits, and other benefits such as insurances, relocation and allowances paid in 2023.

2
3 Relates to STI earned in 2023 and will be paid in September 2023 (refer to section 5.3).
4

Value of LTI vested at 1 September 2022 and 1 March 2023 that became unrestricted (refer to section 5.4). The value at vest has been determined by multiplying
the number of vested units by the closing share price on the date of vest. This has been converted to US$ at an average exchange rate for the 2023 financial
year of 1.48733. The awards for J Linton were commencement benefits earned in 2021 given Ms Linton commenced employment with CSL in 2021.
The value at grant has been determined by multiplying the number of vested units by the closing share price on the date of grant. This has been converted
to US$ at an average exchange rate for the 2023 financial year of 1.48733.
This figure shows the increase in market value of the LTI awards due to share price growth between the grant date and the vesting date. The increase in value
of the awards is calculated by multiplying the number of vested and/or exercised awards by the difference between the share price of CSL shares on the grant
date and the vesting date or exercise date (as applicable). This has been converted to US$ at an average exchange rate for the 2023 financial year of 1.48733.

7 The ‘realised’ remuneration for P Perreault is for the period 1 July 2022 to 5 March 2023 being the period P Perreault was Executive KMP.

Directors’ ReportCSL Limited Annual Report 2022/232.2 CEO Arrangements

Incoming CEO

Dr McKenzie commenced as CSL’s CEO on 6 March 2023,
succeeding Mr Perreault. Dr McKenzie’s remuneration
arrangements are described in this Report and a summary
of Dr McKenzie’s terms of employment were notified to the
ASX on 13 December 2022. Dr McKenzie’s employment terms
are largely consistent with those of Mr Perreault, except that
Dr McKenzie’s starting CEO salary and LTI target opportunity
are lower than Mr Perreault’s and therefore Dr McKenzie has
a lower Total Target Direct Compensation (TDC) in dollar terms.
Dr McKenzie is a United States (US) based executive and
under his employment contract CSL has agreed to indemnify
him for any additional non-US tax payable on his remuneration.

Outgoing CEO

Mr Perreault stepped down from his role as CEO on
5 March 2023. Mr Perreault will remain with CSL as a strategic
advisor, to assist in an orderly transition, until he retires
on 6 September 2023. Mr Perreault will continue to receive
his base salary, pension contributions, statutory leave
entitlements and applicable benefits up to the date of his
retirement from CSL. Mr Perreault was employed for the
entire 2023 financial year and remained eligible to receive
his STI award for 2023.

3. Global Remuneration Framework

3.1 Global Total Rewards Principles

On cessation of employment, consistent with plan rules, Mr
Perreault’s unvested LTI awards under the 2021, 2022 and 2023
Executive Performance and Alignment Plan will be pro-rated
to reflect the portion of service performed during the relevant
performance periods and will remain on foot to be assessed
in the ordinary course, subject to satisfaction of the applicable
performance conditions. Mr Perreault is not eligible to receive
a STI payment or LTI grant in respect of 2024.

In accordance with the terms of Mr Perreault’s employment
contract, CSL intends to enforce the 12-month non-compete
covenant and will make a payment to Mr Perreault equivalent
to 12-months of his base salary at the time of retirement,
scaled back to the maximum amount payable under his
termination benefits cap. This amount is expected to
be US$1.9 million and is not included in the Statutory
Remuneration disclosure in section 6 Table 10.

Similar to Dr McKenzie, Mr Perreault is a US based executive
and under his employment contract CSL has agreed to
indemnify him for any additional non-US tax payable on
his remuneration.

To deliver on CSL’s promise to patients and to protect public health, CSL relies on its people and, maintaining a strong supply
of global talent. CSL’s Total Rewards Principles enable us to attract, engage and retain talent, provide flexibility to address talent
challenges in various markets and allow CSL to compete with other large global pharmaceutical companies. We motivate our
people to deliver their best performance by enabling an approach that integrates market competitive and differentiated reward
programs that align to CSL’s strategy and business objectives.

Common Global Structure

Effort Matters

• We leverage a market-based approach
to offer competitive rewards, balancing
both a global and local view

• We align employee and shareholder
interests, and consider community
expectations

• We benchmark ourselves against the

life sciences industry*

• We have a single pay design for all

senior executives

• We celebrate and recognise both the effort
that is required along the way as well as the
real results created by our employees

Results and Behaviours

Holistic Approach to Well-Being

• We are committed to a pay for performance
culture based on both role requirements
and how the individual performs

• We foster an environment of well-being that
is multi-dimensional – physical, emotional,
financial and social health

• Living our CSL Values is a

non-negotiable expectation

Internal Equity, Inclusive Culture

Simplicity and Clarity

• We reward fairly and competitively

• We strive and monitor for equal pay for

equal work

• We aim to create easy to understand programs

and policies so people value and use them

• We are committed to transparency in our

communications – internally and externally

*CSL Plasma is benchmarked against the Retail Industry

CSL Limited Annual Report 2022/233.2 Remuneration Framework

CSL’s remuneration framework includes reward components of Fixed Reward (or base salary (FR)), and variable reward in the
form of STI and LTI. These traditional elements are enhanced with several design factors to directly reflect the complexity of
CSL’s business, a very different business to other companies in Australia, and with a diverse global employee and shareholder
base. CSL’s international footprint requires global leadership and, with executives based in different countries, there is a need to
put in place a framework that is fair, equitable and market competitive in the countries and industry in which CSL operates in
order to attract and retain highly talented people.

3.2.1 2023 Remuneration Framework Elements for Executive KMP

Fixed Reward (FR)

Short Term Incentive (STI)

Long Term Incentive (LTI)

Purpose

Attract, retain and engage key
talent to deliver our CSL strategy

Structure

Approach

Cash – salary and
superannuation/pension

Paid throughout the year and
reviewed annually

Determined based on the scope,
complexity and responsibilities of the
role, with consideration of individual
experience and performance

Reviewed through both an internal
and external relativity lens

Peer group – global pharmaceutical/
biotechnology peers or a general
industry view depending on role
(desired positioning at the median)

Reward performance against annual
Key Performance Indicators (KPIs)
– maintaining a focus on underlying
value creation within the business
operations is critical to CSL’s success
and sustainability

Alignment to the longer term
performance and strategy of CSL,
building economic alignment
between Executive KMP and
shareholders over the long term

Cash

Performance Share Units

Paid annually

Maximum payout is 200% of
an Executive KMP’s target STI
opportunity (i.e. STI target
multiplied by 200%)

Outcomes based on business
(65%) and individual performance
measures (35%)

Granted annually with vesting
following the end of the three
year performance period

The performance measures are
Return on Invested Capital –
measured over a seven year return
period in the year the award vests
(70%) and Earnings Per Share
Growth – measured over the three
year performance period (30%)

For 2024, the ROIC measure will
move to a three year forward looking
measurement period

Peer Group

The global pharmaceutical/biotechnology industry peer group serves as a primary reference group for remuneration
benchmarking, created such that CSL falls in the middle of the group with respect to market capitalisation and
revenue. The group represents global industry peers and is updated annually. The peer group in 2023 included:
AbbVie Inc.; Amgen Inc.; AstraZeneca PLC; Bausch Health Companies Inc.; Bayer Aktiengesellschaft; Biogen Inc.;
Bristol-Myers Squibb Company; Eli Lilly and Company; GlaxoSmithKline plc; Gilead Sciences Inc.; Grifols, S.A.; Merck
Kommanditgesellschaft auf Aktien; Moderna Inc.; Novo Nordisk A/S; Regeneron Pharmaceuticals, Inc.; Takeda
Pharmaceutical Company; UCB SA and Vertex Pharmaceuticals Incorporated. For the 2024 year, Novartis AG. has
been added and UCB SA has been removed

In addition, two general industry reference groups representing Australia and North America also help us
appropriately reward senior talent and may be used as a primary, or hybrid, data set for certain Executive KMP
dependent on role and location (the Chief Financial Officer for example)

Risk
Management

Before determining remuneration outcomes and vesting, the Board assesses alignment with risk management
outcomes to hold executives accountable for effective risk management – both financial and non-financial.
In addition, all variable reward is subject to the Malus and Clawback Policy and the Board has full discretion
over the outcome of any variable reward payment and vesting

The Board has the discretion to apply a ‘Leading and Managing’ modifier to STI and LTI outcomes – formally
recognising the importance of CSL’s culture including leadership behaviours, values, diversity objectives,
sustainability and management of risk. The modifier allows the Board to adjust in exceptional circumstances
upwards by up to 20% or downwards by up to 50% of annual STI earned, and/or LTI opportunity granted. The
modifier is also available to adjust STI and LTI outcomes for risk management outcomes under our formal risk/
consequence management framework. The Board has discretion in all circumstances, including a significant
risk management failure, to reduce awards and/or vesting outcomes further, including to zero

Malus and
Clawback

Executive KMP STI and LTI arrangements are subject to malus and clawback provisions that enable the Board
to adjust both vested and unvested awards as appropriate. The circumstances include material misstatement or
omission in financial statements, fraud, dishonesty, adverse risk management outcomes, violation of any material
law or regulation, material violation of CSL’s Code of Conduct or any other policy governing the conduct of employees
or any other serious and wilful misconduct. See section 9 for further details on CSL’s Malus and Clawback Policy

Shareholding
Requirement

Executive KMP must hold CSL shares equal to 100% of FR (300% for the CEO) within five years from the date of
appointment to their role

Benefits

CSL provides market competitive benefits to attract and retain key talent. Benefits may include, but are not limited
to, accident, disability and death insurance, health insurance, car parking, global parental and caregiver leave, select
vaccinations and participation in local benefit programs

The Board retains discretion across all elements of the remuneration framework.

Directors’ ReportCSL Limited Annual Report 2022/23
3.2.2 Remuneration Delivery Timeline

The diagram below illustrates how the components of the 2023 Executive KMP remuneration are delivered over a four year period.

Year 1

Year 2

Year 3

Year 4

STI

LTI

● Award Granted
● Eligible for payment or vesting

3.2.3 Pay Mix

The following diagrams set out the remuneration mix for Executive KMP in 2023. The majority of the target reward mix is
variable reward (STI and LTI) and is at risk. This creates strong alignment between Executive KMP rewards and shareholder
interests and is aligned to our pay for performance philosophy, focusing efforts on driving growth and long term performance
and sustainability.

Remuneration Mix – P McKenzie (CEO)

Remuneration Mix – J Linton (Chief Financial Ofﬁcer)

Maximum

13%

31%

Target

15%

19%

56%

66%

Maximum

19%

38%

43%

Target

24%

23%

53%

Minimum

100%

Minimum

100%

100

0
● Fixed Reward
● STI
● LTI

100

0
● Fixed Reward
● STI
● LTI

The diagram above does not include sign-on grants awarded to Ms Linton on 1 April 2021, some of which vested in 2023.

As at the date Mr Perreault ceased to be Executive KMP, Mr Perreault had a target reward mix comprising 15% FR, 18% STI
and 67% LTI. Prior to his appointment as CEO, Dr McKenzie held the role of COO and had a target reward mix comprising
16% FR, 16% STI and 68% LTI. Dr McKenzie did not receive additional remuneration for his role as Executive Director between
13 December 2022 and his appointment to CEO on 6 March 2023.

CSL Limited Annual Report 2022/233.2.4 Short Term Incentive (STI)

Rewarding performance over an annual period, the STI program is designed to drive business performance and create
sustainable shareholder value. The KPIs on which Executive KMP are assessed and rewarded are deliberately challenging and
over and above the normal expectations of their role.

The key features of the STI program for the year ended 30 June 2023 (to be paid in September 2023) are detailed below.

Feature

Description

Performance
Period

Annual award aligned with the financial year – 1 July 2022 to 30 June 2023

Award

Cash

Performance
Measures

Each Executive KMP has a maximum of seven KPIs. The KPIs are made up of two financial measures, common
to all participants – Net Profit after Tax and before Amortisation (NPATA) and Cash Flow from Operations (CFO),
a sustainability measure, plus up to four individual business building KPIs. Hurdles are set at threshold, target
and maximum levels of performance with a significant difference between each performance level to ensure
a challenging but meaningful incentive is provided for target performance. The performance measures are
chosen to ensure Executive KMP are focused on the achievement of the CSL strategy, delivery of business
results and CSL’s success and sustainability

Financial

Sustainability

Individual

Profitable financial growth is the
foundation of CSL’s long-term
sustainability. It evidences our
competitive advantage, and
aligns employee and shareholder
objectives. The financial performance
measures are NPATA measured
at constant currency and CFO
measured at the reported rate

Ensuring a global shared focus on
our long-term sustainability and
global footprint consistent with
our CSL purpose and values, from
1 July 2022 a CSL Group sustainability
metric has been applied to the STI
component of variable reward.
Objectives include establishing a
robust program governance process,
undertaking global initiatives that
reduce CO2 emissions, incorporating
sustainable design up front in our
new facilities, and engaging our
supply partners to achieve a low
emissions supply chain

Individual performance hurdles
align with strategic priorities,
encourage appropriate decision
making, and balance performance
in financial and non-financial
priorities. The individual performance
measures are based on individual
responsibilities and categories
including business unit performance,
achievement of strategic objectives
and improvement in operations, risk
management, compliance, people,
health and safety, ESG and quality

The weighting of the measures for Dr McKenzie and Mr Perreault are NPATA 35%, CFO 25%, Sustainability 5% and
Individual 35%. For Ms Linton, the weighting of the measures are NPATA 30%, CFO 30%, Sustainability 5% and
Individual 35%

Set as a percentage of FR, target opportunity in 2023 was:

• Dr McKenzie – 100% for the period 1 July 2022 to 5 March 2023 and 120% for the period 6 March 2023 to 30 June 2023

(an increase was applied on Dr McKenzie’s appointment to the CEO role)

• Ms Linton – 100%

• Mr Perreault – 120%

50% earned on threshold level performance, increasing on a straight line basis with 100% earned at target level
performance and 200% on achievement of maximum level performance (capped at 200%). The STI Outcome
percentages are then multiplied by the KPI weighting and individual STI opportunity (as disclosed in Table 4
in section 5.3) to determine the payment amount

A ‘qualified leaver’ (for example someone who retires or is made redundant) may receive a pro-rata payment
paid in the ordinary course based on the portion of the Performance Period worked, subject to Performance
Measures being met. If the Executive KMP is not a ‘qualified leaver’, no payment will be made unless the Board
determines otherwise

STI arrangements are subject to malus and clawback provisions that enable the Board to adjust outcomes
as appropriate. The circumstances include material misstatement or omission in financial statements, fraud,
dishonesty, adverse risk management outcomes, violation of any material law or regulation, material violation
of CSL’s Code of Conduct or any other policy governing the conduct of employees or any other serious and wilful
misconduct. See section 9 for further details on CSL’s Malus and Clawback Policy

Performance
Measure
Weighting

Executive KMP
STI Targets

Vesting

Cessation of
Employment

Malus and
Clawback

Directors’ ReportCSL Limited Annual Report 2022/233.2.5 Long Term Incentive (LTI)

CSL’s LTI plan is designed to align executives’ equity interests with those of our shareholders by rewarding sustainable Return
on Invested Capital (ROIC) and Earnings per Share (EPS) growth outcomes.

This approach ensures a focus on the sustainable long-term growth of the organisation and delivering returns to our
shareholders. Vesting of awards will only occur where company performance has been strong over the performance period.
When target performance is achieved, it follows that executives’ LTI should vest – targets are therefore set that require excellent
outcomes for shareholders, both absolutely and relative to the performance of CSL’s global peers.

Granted annually with vesting after three years, in 2023 (grant date of 1 November 2022), CSL’s LTI plan adopts two key
performance measures of ROIC (weighted 70%) and EPS growth (weighted 30%). The three year single point vesting approach
aligns with the approach taken by CSL’s global pharmaceutical/biotechnology peers – a group with which CSL competes
to attract and retain talent.

ROIC

CSL’s Research and Development (R&D) cycle requires sustained investment over the longer term, as do major capital capacity
projects, which are often multi-year investments needed to support the future growth of the organisation. Developing a new
life-saving product can take more than ten years from scientific inception through to manufacturing and commercialisation.
Economic returns are then generated in subsequent years.

To date, CSL adopted a seven-year average ROIC to measure real achievement against this metric as a fair representation
of the R&D and capital investment profile. This calculation spans four years of historical ROIC performance and three years
of projected ROIC performance, thereby placing the forward ‘at-risk’ years into the context of the overall investment cycle.

The ROIC calculation is Reported EBIT x (1- Effective Tax Rate)/(Average Equity + Average Net Debt) where Net debt equals cash,
less interest-bearing liabilities and Average Equity and Average Net Debt is the average of the opening position on 1 July and
closing position on 30 June of the respective financial year.

The Board establishes a new ROIC hurdle target for each annual grant. This process considers both the CSL budget and
longer-term forecast annual ROIC over the term of the grant, together with the historical annual ROIC achieved that will form
part of the performance assessment over the testing period. Historical performance of the peer group and market consensus
are also considered.

EPS Growth

EPS growth is a measure that aligns executive LTI outcomes with the returns experienced by shareholders. The EPS growth
target is assessed as compound annual growth with a base of the most recent financial year’s EPS and a target based on CSL’s
estimation of EPS growth over the three-year performance period. EPS is calculated as EPS = CSL reported net profit in USD/
Weighted average number of shares on issue.

The Board determines the EPS growth hurdle based on past, current and expected EPS performance over the performance
period and, historical performance of our peer group. A review against market consensus is also undertaken to ensure the
target set is aligned with expected outcomes and appropriate vesting occurs.

CSL Limited Annual Report 2022/23The key features of CSL’s LTI program for our 2023 awards, granted 1 November 2022, are as follows.

Feature

Description

Summary

A conditional ‘right’ to a CSL share or at the Board’s discretion in exceptional circumstances, a cash equivalent
payment. No price is payable by the Executive KMP on grant or vesting of rights. Shares are allocated (or cash paid)
on vesting without the need for exercise by an Executive KMP

Security

Performance Share Unit (PSU)

Grant
Methodology

Performance
Measure and
Weighting

To determine the number of PSUs issued, a five day volume weighted average share price preceding the grant
date is used. The LTI opportunity for each Executive KMP is divided by the calculated allocation price to determine
the number of securities granted

• Tranche 1 – ROIC 70%

• Tranche 2 – EPSg 30%

ROIC Gateway
Performance
Measure

No vesting will occur in Tranche 1 unless an Investment Hurdle Rate (IHR) is achieved in the year of testing
(30 June 2025). The IHR is the minimum return CSL requires on its investments to ensure it is making sound
investment decisions and appropriately managing risk

Performance
Period

Performance
Target

• Tranche 1 ROIC – Seven year average 1 July 2018 to 30 June 2025

• Tranche 2 EPSg – 1 July 2022 to 30 June 2025

• Tranche 1 ROIC – Threshold at 17.0% and Target at 18.2%

• Tranche 2 EPSg – Threshold at 10.2% and Target at 14.1%

Executive KMP
LTI Target
Opportunity8

• Dr McKenzie – 425% of FR

• Ms Linton – 225% of FR

• Mr Perreault – 450% of FR9

Vesting
Schedule

50% earned on threshold level performance, increasing on a straight line basis with 100% earned at target level
performance (maximum vesting capped at 100%). The Board has the discretion to adjust vesting outcomes

Vesting Date

1 September 2025

Retesting

No retest of any tranche

Cessation of
Employment

Change of
Control

A ‘qualified leaver’ (for example someone who retires or is made redundant) retains a pro-rated number of PSUs
based on time elapsed since grant date. Retained PSUs will remain subject to original terms and conditions
including satisfaction of performance conditions at the test date. If an Executive KMP is not a ‘qualified leaver’,
all unvested PSUs will lapse unless the Board determines otherwise

In the event of a change of control, the Board, in its absolute discretion, may determine that some or all of the
PSUs vest having regard to the performance of CSL during the performance period to the date of the change
of control event. Vesting may occur at the date of the change of control event or an earlier vesting date as
determined by the Board

Dividends and
Voting Rights

No dividends or dividend equivalents are paid on unvested PSUs. Executive KMP are only eligible for dividends
once shares have been allocated following vesting of any PSUs. PSUs do not carry any voting rights prior to vesting
and allocation of shares

Malus and
Clawback

LTI arrangements are subject to malus and clawback provisions that enable the Board to adjust unvested and
vested awards as appropriate. The circumstances include material misstatement or omission in financial
statements, fraud, dishonesty, adverse risk management outcomes, violation of any material law or regulation,
material violation of CSL’s Code of Conduct or any other policy governing the conduct of employees or any other
serious and wilful misconduct. See section 9 for further details on CSL’s Malus and Clawback Policy

8 Also maximum opportunity.
9

As outlined in section 2.2, upon cessation of employment, Mr Perreault’s 2023 LTI PSUs will be pro-rated for the portion of the performance period employed. He
will not receive his maximum opportunity.

Directors’ ReportCSL Limited Annual Report 2022/233.2.6 Leading and Managing Modifier

The Board, taking into consideration recommendations from the CEO for Executive KMP, and the Human Resources and
Remuneration Committee (HRRC) for the CEO, has the discretion to apply a ‘Leading and Managing’ modifier to both the
STI and LTI opportunity – allowing for recognition of extraordinary contribution in exceptional circumstances or significant
leadership failure across sustainability, risk management, culture and diversity. Applied to the overall STI outcome or LTI target
opportunity, there can be an increase of up to 20% or a decrease of up to 50% applied. In 2023, the modifier was not applied.

In addition to consideration during the determination of KPI outcomes, the modifier is also utilised for the assessment of the
appropriate management of risk – both financial and non-financial. In consultation with the Audit and Risk Management
Committee (ARMC), the HRRC uses a principles based approach to ensure alignment between remuneration outcomes
and performance. This enables management to bring awareness to behaviours that encourage unacceptable levels of risk,
discourage those behaviours, and promote behaviours that encourage acceptable levels of risk. It also enables the Board
to recognise and appropriately address both acceptable and unacceptable behaviours. In the event of a significant risk
management failure, the Board has the discretion to adjust STI and LTI outcomes downwards, including to zero.

3.2.7 Sign On Arrangements

As set out in the 2021 Remuneration Report, 13,647 sign on restricted share units (RSUs) were granted to Ms Linton on 1 April 2021,
as partial compensation for time-based benefits forfeited on leaving her previous employer. Of these, 5,097 RSUs vested in 2023
and the remaining 396 are due to vest on 1 March 2024.

Each RSU is a conditional right to receive a share in CSL (or at the Board’s discretion in exceptional circumstances, a cash
equivalent payment). No price is payable by Ms Linton on the grant or vesting of RSUs awarded as a sign on award. RSUs are
time based awards. Further information as to the terms of the sign on RSUs are set out in the 2021 Remuneration Report.

4. CSL Performance and Shareholder Returns

4.1 Financial Performance from 2019 to 2023

The following graphs summarise key financial performance over the past five financial years10 and as applicable, have been
considered in both STI and LTI outcomes over the period.

Net Proﬁt After Tax/
Earnings Per Share (USD)

Cash Inﬂow From Operating
Activities (millions USD)

Annual Return on
Invested Capital

2500

2000

1500

1000

500

400

300

200

100

600%

480%

360%

240%

120%

4000

3500

3000

2500

2000

1500

1000

500

25%

20%

15%

10%

2019

2020

2021

2022

2023

2019

2020

2021

2022

2023

2019

2020

2021

2022

2023

Net Proﬁt After Tax (millions) – USD

Earnings Per Share (cents) – USD

Closing Share Price (at 30 June AUD)/
Total Shareholder Return

Total Dividends
Per Share (cents USD)

60.0%

40.0%

20.0%

0.0%

-20.0%

250

200

150

100

2019

2020

2021

2022

2023

2019

2020

2021

2022

2023

Closing Share Price (dollars) – AUD

Total Shareholder Return (12 month %) – AUD

10 2023 Net Profit After Tax (NPAT) represents net profit for the year attributable to shareholders of CSL Limited, as reported in the financial statements.

CSL Limited Annual Report 2022/235. Executive Key Management Personnel Outcomes in 2023

5.1 2023 Target Remuneration

P McKenzie

Effective 1 September 2022, the Board determined that Dr McKenzie, in his role of COO, would receive a 3.5% increase to FR,
taking his FR to US$1,015,680. Dr McKenzie’s STI target remained at 100% of FR and he received an increase to his LTI target
to 425% of FR. Dr McKenzie’s TDC was US$6,348,000.

On appointment to the role of CEO, the Board increased Dr McKenzie’s FR by 72% to US$1,750,000, increased his STI target
to 120% of FR and kept his LTI target at 425% of FR. Effective 6 March 2023, Dr McKenzie’s TDC was US$11,287,500.

J Linton

In 2023, the Board determined that Ms Linton would receive an increase to FR of 3.7%. This increase was inclusive of the
superannuation guarantee increase from 10% to 10.5%. Taking into consideration both the global pharmaceutical/biotechnology
and Australian general industry peer groups, skill, experience and internal relativity, Ms Linton’s STI target was increased from
85% to 100% of FR and her LTI target was increased from 175% to 225% of FR. These changes resulted in a TDC of US$3,827,036.

P Perreault

In 2023, the Board determined that Mr Perreault would receive an increase to FR of 3.5%, no change to his STI target and an
increase to his LTI target to 450% of FR. These increases resulted in a TDC of US$12,506,579.

5.2 CSL and Executive KMP Performance

In 2023, CSL has continued to demonstrate resilience in its results, delivering a strong performance within a challenging
operating environment. CSL’s focus on improving efficiencies across its global network of manufacturing sites has helped
reduce the impact of inflation and currency headwinds and focus remains on executing on CSL’s strategy of delivering
innovative medicines to our patients. As a result, our NPATA landed in line with expectations and at the top end of market
guidance, while CFO was down slightly on the prior year.

Introduced in 2023, outcomes against the new Sustainability measure exceeded expectations with an overall maximum
outcome awarded. The following diagram sets out the achievements.

Portfolio

Program Governance

Establish a robust program
governance process, including
reporting, monitoring and veriﬁcation
that is transparent and aligned with
our network strategy. An agile process
that focuses on doing the right thing
in the right place at the right time

Energy Initiatives
(Scope 1)

Renewable Power
(Scope 2)

Undertake global initiatives that
reduce CO2 emissions to meet our
40% reduction target by 2030 and
aligned with SBTi; Increase renewable
energy supplies at select global
manufacturing sites

New Facilities
(Scope 1 & 2)

Incorporate sustainable design up
front in our new facilities that will
ensure long term success as our
business grows

Supplier Engagement
(Scope 3)

Engage our supply partners to
achieve a low emissions supply chain,
working with our suppliers to follow
our lead in their Scope 1 & 2 and join us
on this journey

Established sustainability portfolio and
mechanisms to identify and prioritise initiatives

Established and launched program management
governance

Reporting, monitoring and veriﬁcation
plans implemented

SBTi ﬁling prepared, with Board endorsement for
SBTi validation obtained

Converted Marburg manufacturing site to 100%
renewable electricity supply

Commenced conversion process of the Kankakee
manufacturing site to renewable energy supply

Developed business case for Australia power
purchase agreement

Finalised energy efﬁciency initiatives to be
included in the Australia Tullamarine site design

Finalised supplier engagement plan

Developed and launched supply standards and
communication materials for supplier outreach

Directors’ ReportCSL Limited Annual Report 2022/23In determining the outcomes for Executive KMP, the Board reviewed the quality of earnings and risk management outcomes
across the year to ensure STI outcomes were appropriately aligned with the overall performance of the company and the
experience of CSL’s shareholders. In consideration of one-off items not anticipated at the time of target setting, the Board’s
review resulted in a downward adjustment to the NPATA outcome and an upwards adjustment to the CFO outcome. Overall,
this resulted in an average reduction in KMP STI outcomes by 4.1%.

The Leading and Managing Modifier was not used in 2023. The Board made no adjustments under the Malus and Clawback
Policy and no risk management, behaviour or compliance issues involving Executive KMP were identified during the joint
consultation between the HRRC and ARMC.

The following performance outcomes were achieved resulting in an average overall STI payment outcome of 102% of target
level opportunity across the Executive KMP (see Table 4). The minimum STI earned as a percentage of target level opportunity
was 101% and the maximum was 105% – the latter was 53% of the maximum STI outcome that could be achieved. Table 3
summarises the achievements on the individual KPIs of the Executive KMP. Additional KPIs, which were also integral to the
achievement of individual performance, were considered by the Board when assessing Executive KMP performance and
remain confidential for commercial reasons.

Table 3: Achievements in 2023

Measure and Commentary

CSL Group Outcomes

NPATA

• NPATA outcome at target

CFO

• CFO outcome slightly below target

Sustainability

• Maximum Sustainability outcome

Individual Outcomes

P McKenzie

J Linton

P Perreault

People

• Improvement in safety metrics

• Succession planning milestones met

Threshold
50%

Target
100%

Maximum
200%

200%

100%

90%

95%

109%

95%

• Strong progress against the 2023 diversity, inclusion and equity targets furthering progress to attainment of FY25 and FY30 goals

• For the second year in a row CSL was ranked among the best employers in America, according to Forbes and Statista

Innovation

• First patient dosed with FDA approved HEMGENIX® in the US, the first gene therapy for haemophilia B

• Ongoing disciplined management of the R&D pipeline of new products from clinical development to Phase III

• Global collaboration and licence agreement signed with Arcturus Therapeutics for access to late-stage next generation

mRNA platform technology

• New state-of-the-art research and development centres opened in Marburg, Germany and Waltham, United States

• CSL’s new Global Headquarters and Centre for R&D opened in Melbourne, Australia

Focus

• Integration of CSL Vifor and cost synergies on track

Efficiency and Reliable Supply

• 12 new plasma collection centres opened

• Successful reopening of US border centres

• Strong growth in plasma collections but Cost per Litre slightly below target

• Delay in the plasmapheresis platform rollout

• Manufacturing yield improvements above targets set

• Capacity and capital expansion projects on target

Digital Transformation

• Transformation of the CSL Plasma App resulting in much higher usage by donors

• Ongoing maturing of cyber resiliency and capability

CSL Limited Annual Report 2022/235.3 STI Outcomes by Executive KMP in 2023

Table 4 details the STI outcomes for Executive KMP as a result of the performance results set out in Table 3.

Table 4: STI Outcomes in 2023

Value of STI
Earned US$

Target STI
Opportunity as
a % of FR

Maximum STI
Opportunity as
a % of FR

STI Earned as %
of Target
Opportunity

STI Earned as %
of Maximum
Opportunity11

STI Earned as %
of FR

120%

100%

120%

240%

200%

240%

101%

105%

101%

51%

50%

53%

50%

121%

101%

105%

121%

Executive

P McKenzie – CEO

P McKenzie – COO

J Linton

Former Executive KMP

679,883

697,007

946,395

P Perreault12

1,537,182

5.4 LTI Outcomes by Executive KMP in 2023

5.4.1 LTI Awards Tested in 2023

In 2023, in the course of annual performance testing, four LTI grants were tested. The table below shows the performance of CSL
against the targets. Vesting occurred in September 2022 and March 2023.

Table 5: LTI Awards Tested in 2023

Grant Date

Security

Tranche

Performance Period

Performance Outcome

Vesting Outcome

1 September 2018

1 September 2019

1 September 2020

1 April 2021

PSU

RSU

1 July 2015 – 30 June 2022

Seven year ROIC at 23.2%

1 July 2015 – 30 June 2022

Seven year ROIC at 23.2%

1 July 2015 – 30 June 2022

Seven year ROIC at 23.2%

1 April 2021 – 1 March 2023

Individual performance and
time condition

0%13

70%14

100%

5.4.2 Fair Value of Equity Awards Granted, Vested and Lapsed Equity in 2023

The table below details the fair value at the date of grant for all LTI awards granted, vested and lapsed to Executive KMP
as remuneration in 2023. The values are shown in Australian Dollars (A$).

Table 6: Grant Fair Value

Security

Tranche

PSU

RSU

Grant Date

1 Sep 2018

1 Sep 2019

1 Sep 2020

1 Nov 2022

1 Apr 2021

Vest Date

1 Sep 2022

1 Sep 2025

1 Mar 2023

Expiry Date

1 Oct 2024

1 Oct 2029

1 Sep 2025

1 Sep 2027

1 Apr 2026

Fair Value per
Security at Grant A$

216.13

228.14

284.81

267.12

261.26

5.4.3 Summary of Executive KMP Equity Granted, Vested and Lapsed in 2023

The table below summarises the details of equity awards granted, vested and lapsed in US$ for each Executive KMP. For awards
granted, the maximum number of securities that may vest is shown. For accounting purposes, the maximum value of each
grant is the fair value of the equity granted multiplied by the number of equity instruments granted, or remaining each year.
Ultimately, the maximum face value of the equity awards will be equal to the number of securities granted multiplied by the
CSL share price at the time of vesting. The minimum number of securities and the value of the equity awards is zero if the equity
award is fully lapsed. Details of the performance and service criteria applying to awards granted in prior years are summarised
in section 10 and prior Remuneration Reports corresponding to the reporting period in which the awards were granted.

11 Any STI that was not earned was automatically forfeited.
12 In 2023 P Perreault was an Executive KMP for the period 1 July 2022 to 5 March 2023.
13 The tranche has lapsed – there is no retest.
14 The remaining 30% of the tranche has lapsed – there is no retest.

Directors’ ReportCSL Limited Annual Report 2022/23Table 7: Movement in Equity in 2023

Secu-
rity

Tran-
che

Grant
Date

Vesting
Date

Fair
Value at
Grant
US$

Face
Value at
Grant

Granted
During

Face
Value
at Vest –
Vested
Award

Face
Value at
Lapse –
Lapsed
Award

US$15

the Year Vested

Lapsed

US$16

US$17

Executive

P McKenzie

J Linton18

PSU

RSU

PSU

Former Executive KMP

P Perreault19

PSU

3 1 Sep 2019

1 Sep 2022

755,134

797,270

3 1 Sep 2019

1 Sep 2022

252,018

266,080

4,923

1,643

–

4,923

–

972,432

1,151

492

227,355

97,184

3 1 Sep 2019

1 Sep 2022

706,049

745,447

4,603

3,223

1,380

636,634

272,589

2 1 Sep 2020

1 Sep 2022

746,814

738,607

3,900

1 Nov 2022

1 Sep 2025 2,685,514 2,847,779

14,953

2 1 Nov 2022

1 Sep 2025

1,151,037

1,220,585

6,409

–

1 Apr 2021

1 Mar 2023

895,324

901,287

5,097

1 Nov 2022

1 Sep 2025 1,292,560

1,370,659

2 1 Nov 2022

1 Sep 2025

553,877

587,344

4 1 Sep 2018

1 Sep 2022 1,473,238 1,430,956

3 1 Sep 2019

1 Sep 2022 1,699,090 1,793,897

2 1 Sep 2020

1 Sep 2022 1,567,926

1,550,696

7,197

3,084

9,363

11,077

8,188

1 Nov 2022

1 Sep 2025

5,215,138 5,530,248

29,038

2 1 Nov 2022

1 Sep 2025 2,235,084 2,370,134

12,445

–

7,754

8,188

–

770,361

–

1,003,581

–

9,363

– 1,849,459

3,323

1,531,636

656,387

–

1,617,363

–

5.4.4 Executive KMP 2024 Equity Vesting Opportunity

Three awards will be tested in 2024. The following tables set out a preview of these awards with Table 9 providing the specific
grant details for each Executive KMP. The face value in Table 8 is provided in A$.

Table 8: LTI Awards to be Tested in 2024

Grant Date

Security

Performance Measure

Face Value of a CSL Share at Date of Grant A$

1 September 2019

1 September 2020

1 April 2021

PSU

RSU

ROIC

Individual performance and time condition

Table 9: Executive KMP LTI Opportunity to be Tested in 2024

240.87

281.68

263.00

Executive

P McKenzie

J Linton

Former Executive KMP

P Perreault20

Number of Performance
Share Units

Number of Restricted
Share Units

8,504

–

19,263

–

396

–

15 Securities granted multiplied by the closing CSL share price on the date of grant. The A$ value was converted to US$ at an average exchange rate for the 2023

financial year of 1.48733.

16 Securities vested multiplied by the closing CSL share price on the date of vest. All awards were automatically exercised on vesting. The A$ value was converted

to US$ at an average exchange rate for the 2023 financial year of 1.48733.

17 Securities lapsed multiplied by the closing CSL share price on the date of lapse. The A$ value was converted to US$ at an average exchange rate for the 2023

financial year of 1.48733.

18 The RSU award represents sign on RSUs as partial compensation of benefits forfeited with previous employer.
19 Shareholder approval for the grant of PSUs on 1 November 2022 and any shares to be issued at the time of vesting to P Perreault, was obtained under ASX

Listing Rule 10.14 at the 2022 Annual General Meeting.

20 On cessation of employment in September 2023, as per the Performance Rights Plan Rules, P Perreault will retain a pro-rated number of PSUs based on time

elapsed since grant date. Retained PSUs will remain subject to original terms and conditions including satisfaction of performance conditions as at the test date.

CSL Limited Annual Report 2022/236. Executive Key Management Personnel Statutory Remuneration Tables

Remuneration is reported in US$, unless otherwise stated. This is consistent with the presentation currency used by CSL.

6.1 Executive KMP Remuneration 2022 and 2023

Table 10: Statutory Remuneration Disclosure – Executive KMP

Short Term Benefits

Post
Employment

Other
Long Term

Executive

Year21

and Fees23

US$24

US$25

Super US$

Cash Salary

Cash Bonus

Non-
Monetary

P McKenzie –
CEO and Managing Director

J Linton –
Chief Financial Officer26

Former Executive KMP

A Cuthbertson –
Senior Advisor to CEO27

P Perreault –
CEO and Managing Director28

TOTAL

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

1,280,851

1,376,890

965,230

1,273,770

846,516

946,395

874,803

1,149,742

–

128,811

–

1,251,196

1,537,182

1,733,962

3,029,931

3,378,563

3,860,467

3,702,806

5,453,443

70,669

67,972

46,836

81,479

–

84,712

92,441

202,217

241,892

23,257

16,802

186,096

25,689

–

4,550

14,000

18,300

223,353

65,341

Long Service
Leave US$

–

21,242

21,583

–

2,855

–

21,242

24,438

Share Based Payments22

Performance

Share Units

Restricted

Share Units

US$

1,657,943

2,577,351

924,455

699,401

–

(97,619)

1,691,820

4,987,494

4,274,218

8,166,627

–

US$

Total US$

4,409,610

4,901,125

334,835

3,306,375

1,540,207

4,392,904

–

38,597

4,578,910

9,862,128

334,835

12,294,895

1,540,207

19,194,754

Performance

69%

79%

67%

77%

– %

(253)%

71%

81%

69%

79%

21 The A$ compensation paid during the years ended 30 June 2022 and 30 June 2023 have been converted to US$. For the 30 June 2023 compensation, this
has been converted to US$ at an average exchange rate for the 2023 financial year of 1.48733. For the 2022 compensation, this has been converted to US$
at an average exchange rate for the 2022 financial year of 1.37359. Both the amount of remuneration and any movement in comparison to prior years may
be influenced by changes in the exchange rates. No termination benefits were paid in 2023.

22 The PSUs and RSUs have been valued using the Black Scholes option valuation methodology. These valuations were undertaken by Deloitte and

PricewaterhouseCoopers. The amounts disclosed have been determined by allocating the value of the PSUs and RSUs over the period from grant date
to vesting date in accordance with applicable accounting standards. Share based payments have been converted to US$ at an average exchange rate
for the 2023 financial year of 1.48733. There were no Performance Rights or Options expensed or outstanding in 2022 or 2023.

23 Includes cash salary, cash allowances and short term compensated absences, such as annual leave entitlements accrued but not taken during the year.
24 The STI cash bonus in respect of 2023 is scheduled to be paid in September 2023. The STI cash component of the cash bonus received in 2022 was paid

in full in September 2022 for all Executive KMP as previously disclosed, with no adjustment.

25 Includes any health benefits, insurances benefits and other short-term employee benefits. For International Assignees and domestic and international
relocations, this may include personal tax advice, health insurance, removalists, temporary accommodation and other expatriate assignment benefits.
26 J Linton commenced as Executive KMP on 5 March 2021 and was granted RSUs on 1 April 2021 as a component of her sign on arrangements (as partial

compensation for time-based equity forfeited at her previous employer). 5,097 RSUs vested on 1 March 2023 and 396 RSUs are due to vest on 1 March 2024.
Details are set out in the 2021 Remuneration Report.

27 In 2022 A Cuthbertson was an Executive KMP for the period 1 July 2021 to 1 October 2021.
28 In 2023 P Perreault was an Executive KMP for the period 1 July 2022 to 5 March 2023. The full year fixed reward for P Perreault was US$1,856,133, the full year

cash STI payment was US$2,262,385 and the full year share based payment expense was US$3,654,625.

100

Directors’ ReportCSL Limited Annual Report 2022/236. Executive Key Management Personnel Statutory Remuneration Tables

Remuneration is reported in US$, unless otherwise stated. This is consistent with the presentation currency used by CSL.

6.1 Executive KMP Remuneration 2022 and 2023

Table 10: Statutory Remuneration Disclosure – Executive KMP

Executive

P McKenzie –

CEO and Managing Director

J Linton –

Chief Financial Officer26

Former Executive KMP

A Cuthbertson –

Senior Advisor to CEO27

P Perreault –

CEO and Managing Director28

TOTAL

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

1,280,851

1,376,890

965,230

1,273,770

846,516

946,395

874,803

1,149,742

–

128,811

–

1,251,196

1,537,182

1,733,962

3,029,931

3,378,563

3,860,467

3,702,806

5,453,443

Non-

70,669

67,972

46,836

81,479

–

84,712

92,441

202,217

241,892

23,257

16,802

186,096

25,689

–

4,550

14,000

18,300

223,353

65,341

21,242

21,583

2,855

–

21,242

24,438

Short Term Benefits

Post

Employment

Other

Long Term

Cash Salary

Cash Bonus

Monetary

Year21

and Fees23

US$24

US$25

Super US$

Long Service

Leave US$

Share Based Payments22

Performance
Share Units
US$

Restricted
Share Units
US$

1,657,943

2,577,351

924,455

699,401

–

(97,619)

1,691,820

4,987,494

4,274,218

8,166,627

Total US$

4,409,610

4,901,125

–

334,835

3,306,375

1,540,207

4,392,904

–

38,597

4,578,910

9,862,128

334,835

12,294,895

1,540,207

19,194,754

%
Performance
Related

69%

79%

67%

77%

– %

(253)%

71%

81%

69%

79%

101

CSL Limited Annual Report 2022/236.2 Executive KMP Shareholdings

Details of fully paid ordinary shares held directly, indirectly or beneficially by each Executive KMP, including their related
parties, are provided in Table 11. Details of Options, Performance Rights, PSUs and RSUs held directly, indirectly or beneficially
by each Executive KMP, including their related parties, are provided in Table 12. Any amounts are presented in US$. Following
the vesting of awards, any trading undertaken by Executive KMP was subject to the Group Securities Dealing Policy (outlined
in section 9.6). Approved trading disclosed was actioned in accordance with the Policy, including forced trades to cover CSL
tax withholding obligations.

Table 11: Executive KMP Shareholdings

Executive

P McKenzie

J Linton

Former Executive KMP

P Perreault30

Opening
Balance at
1 July 2022

20,674

11,547

166,301

Number of Shares
Acquired on Exercise
of Options,
Performance
Rights, PSUs or
RSUs during year
US$

8,274

5,097

15,942

Vesting and Value of
Shares Acquired on
Exercise of Options,
Performance Rights,
PSUs or RSUs during

year US$29

1,634,350

1,003,581

Number of
(Shares Sold)/
Purchased

Closing Balance
at 30 June 2023

(8,251)

(5,000)

20,697

11,644

3,148,999

(16,942)

165,301

There have been no movements in shareholdings of Executive KMP between 30 June 2023 and the date of this Report.

Table 12: Executive KMP Option, Performance Right, Performance Share Unit and Restricted Share Unit Holding

Executive

Security

Opening
Balance
as at
1 July 2022

Number
Granted

Number
Exercised

Number

Lapsed31

P McKenzie

J Linton

PSU

RSU

42,590

7,276

5,493

Former Executive KMP

8,274

6,795

21,362

10,281

–

5,097

Closing
Balance
as at
30 June 2023

Number
Vested
During
Year

48,883

17,557

8,274

–

396

5,097

–

P Perreault33

PSU

87,719

41,483

15,942

12,686

100,574

15,942

Closing Balance as at
30 June 2023

Vested32

Unvested

–

48,883

17,557

396

100,574

29 The value of PSUs and RSUs at the exercise date has been determined by the share price at the close of business on the exercise date multiplied by the number

of securities exercised during 2023. The A$ value was converted to US$ at an average exchange rate for the year of 1.48733.

30 The closing balance for P Perreault is as at 5 March 2023 being the date P Perreault ceased to be Executive KMP.
31 The number that lapsed represents the portion of the 2019 LTI (Tranche 4 granted 1 September 2018) and the 2020 LTI (Tranche 3 granted 1 September 2019) that

did not vest.

32 Vested awards are exercisable to the Executive KMP. There are no vested and unexercisable awards.
33 The closing balance for P Perreault is at 5 March 2023 being the date P Perreault ceased to be Executive KMP.

102

Directors’ ReportCSL Limited Annual Report 2022/237. Remuneration in 2024

7.1 Executive KMP Remuneration Changes in 2024

CSL competes for talent in a global market and we need to attract and retain high calibre executives in a highly competitive
global pharmaceutical and biotechnology industry. The unique skill set with specialised pharmaceutical and biotechnology
expertise and experience that CSL requires is critical to enable the company to deliver on its strategy, promise to patients
and deliver sustainable returns to shareholders.

The Board determines any increases to reward for Executive KMP based on position in market with the pharmaceutical/
biotechnology peer group, individual performance, role responsibilities and internal relativity. When comparing Executive
KMP TDC to the reward of peers within the pharmaceutical/biotechnology peer group, all lag the median – specifically
on the LTI component – resulting in TDC that is below the median.

2024 Target Remuneration – P McKenzie

2024 Target Remuneration – J Linton

In 2024, the Board has determined that Dr McKenzie will
receive a 3.5% increase to FR, resulting in a 1 September 2023
figure of US$1,811,250. There will be no change to the STI or
LTI targets, remaining at 120% and 425% of FR respectively.
Dr McKenzie’s TDC will be US$11,682,563 and this is a position
of 74% against the median TDC of the pharmaceutical/
biotechnology peer group.

2024 P McKenzie Target Remuneration
and Peer Group Comparison – US$

In keeping in line with the approach taken for all Executives,
in 2024, the Board has determined that Ms Linton will have
an increase to FR only. Effective 1 July 2023, Ms Linton’s FR
will be increased by 0.45% for the Australian superannuation
guarantee increase from 10.5% to 11% and from 1 September
2023 will be increased by 3.5%. There will be no change to
STI and LTI targets resulting in a TDC of US$3,978,203. The
change for 2024 positions Ms Linton at 70% of the median
TDC of the pharmaceutical/biotechnology peer group.

1,811,250

1,653,372

2,173,500

2,289,345

2024 Fixed Reward

2024 STI Target

2024 LTI Target

2024 Total Target
Direct Compensation

7,697,813

11,860,428

11,682,563

15,718,130

● P McKenzie ● Peer Group CEO – median

2024 J Linton Target Remuneration
and Peer Group Comparison – US$

936,048

977,818

936,048

990,093

2,106,108

2024 Fixed Reward

2024 STI Target

2024 LTI Target

2024 Total Target
Direct Compensation

4,168,225

3,978,203

5,700,680

● J Linton ● Peer Group CFO – median

Table 13 sets out the changes to Executive KMP reward for 2024 (effective 1 September 2023) and a comparison with the
changes made for 2023 (effective 1 September 2022).

Table 13: Changes to Executive KMP Reward 2023 and 2024

Executive

P McKenzie

J Linton

Year

2024

2023

2024

2023

Former Executive KMP

P Perreault

2024

2023

% change in FR

% change in STI
$ opportunity
at target

% change in LTI
$ opportunity
at target

Total Reward
Adjustment %

Total Reward
Adjustment US$

3.50%

3.95%

3.70%

– %

3.50%

3.95%

22.29%

– %

3.50%

25.68%

3.95%

33.65%

– %

16.44%

3.50%

17.61%

3.95%

22.72%

– %

11.85%

395,063

950,669

151,168

769,592

–

1,324,696

7.2 LTI Framework Changes in 2024

In 2024, a change to the EPS calculation will be introduced. NPAT will be replaced by NPATA as the Board believes this measure
provides shareholders with improved transparency of the underlying performance of CSL and aligns with the profit measure
being provided as financial guidance externally and, also used to determine the dividend and STI outcomes.

The Board values and has listened to the investor feedback received and will be amending the ROIC performance period and
target setting approach. From 2024, this will move from a seven year performance period (four year look back/three year
forward look) to three year forward looking. This forward looking performance period is also in line with market practice across
our global pharmaceutical/biotechnology peer group and aligns with the approach taken on the EPS hurdle. The ROIC gateway
performance measure, which was previously introduced to address concerns about the impact of the four year look back, will
not apply to the three year forward looking ROIC metric.

The Board will continue to review the types of equity delivered under our LTI program and will also review target LTI quantum
for Executive KMP so that CSL can continue to attract and retain global talent and remain competitive with our global peers.
Subsequent to the publication of this letter on 15 August 2023, the Board has made the decision not to adjust the EPS
measure for LTI awards to be granted in 2024. The EPS measure will continue to use NPAT as opposed to NPATA.

103

CSL Limited Annual Report 2022/238. Non-Executive Director Remuneration

8.1 NED Fee Policy

Feature

Description

Strategic Objective CSL’s NED fee arrangements are designed to appropriately compensate suitably qualified directors, with the

Maximum
Aggregate Fees
Approved by
Shareholders

Remuneration
Reviews

requisite experience and expertise, for their Board responsibilities and contribution to Board committees. In the
2023 year, the Board had four Committees for which fees were payable

The current maximum aggregate fee pool of A$4,000,000 was approved by shareholders on 12 October 2016
and has applied from this date. Actual NED fees paid during the 2023 year (including superannuation
contributions, NED Rights Plan sacrifice amounts and Committee fees) are within this agreed limit, and totalled
A$3,018,869. NEDs may be reimbursed for reasonable expenses incurred by them in the course of discharging
their duties and this reimbursement is not included within this limit

The Board in conjunction with the HRRC, reviews NED fees on an annual basis in line with general industry
practice. Fees are set with reference to the responsibilities and time commitments expected of NEDs along with
consideration to the level of fees paid to NEDs of comparable Australian companies

Independence

To ensure independence and impartiality is maintained, NEDs do not receive any performance related remuneration

NED Equity

The NEDs participate in the NED Rights Plan – introduced to enable NEDs to build up meaningful levels of
equity more quickly. Under the plan, NEDs sacrifice at least 20% of their pre-tax base fee in return for a grant of
Rights, each Right entitling a NED to acquire one CSL share at no additional cost. The number of Rights granted
is equivalent to the fee sacrificed divided by the prevailing market price of CSL shares at that time. Rights are
allocated in two tranches and vesting occurs following the disclosure of half year and full year financial results
following the grant of Rights. For Australian based NEDs, shares are allocated at vesting of the Rights and are
then subject to a nominated restriction period of three to fifteen years. For overseas based NEDs, shares are
allocated at the end of the nominated three to fifteen year restriction period. At the end of the nominated
restriction period the NED is able to access their shares. No price is payable on vesting and exercise of rights.
Shares are automatically allocated without the need for exercise by a NED. As this is a salary sacrifice plan, no
performance conditions apply to the Rights. The shares are purchased on-market. Additional shares may be
purchased by NEDs on-market at prevailing share prices in accordance with CSL’s Securities Dealing Policy

Shareholding
Requirement

NEDs must hold CSL shares equal to 100% of their Board base fee within five years from the date
of appointment to the Board

Post-Employment
Benefits

Superannuation contributions are made in accordance with legislation and are included in the reported base fee
and are not additional to the base fee. NEDs are not entitled to any compensation on cessation of appointment

Contracts

NEDs are appointed under a letter of appointment and are subject to ordinary election and rotation
requirements as stipulated in the ASX Listing Rules and CSL Limited’s constitution

8.2 NED Fees in 2023

The following table provides details of current Board and Committee fees from 1 July 2022 and increases to be applied at
1 July 2023. As a truly global business, our NED fee structure allows attraction and recruitment of appropriately skilled directors.
The Board continues to monitor the practice of global Australian listed companies and those listed in European and US markets
to ensure a competitive structure and fee arrangement is in place.

In 2023, after reviewing ASX12 comparative Board fees, the Board determined to increase Board and Committee fees by
3% from 1 July 2023. This increase is below the global weighted average budget for employees and is within the maximum
aggregate remuneration that may be paid to all NEDs, as agreed by shareholders at the 2016 AGM. These increases ensure
market competitive fees and allow CSL to attract and retain high quality NEDs.

Table 14: NED Fees 2023 and 2024

Board Chairman Fee

Board NED Base Fee

2023 Fees

A$896,100

A$252,600

2024 Fees

A$923,000

A$260,000

Committee Fees

Committee Chair

Committee Member

Committee Chair

Committee Member

Audit & Risk Management

Corporate Governance
& Nomination

Human Resources
& Remuneration

Innovation & Development

A$72,100

A$31,000

A$61,800

A$59,900

A$35,300

A$15,550

A$31,000

A$74,250

A$31,950

A$63,650

A$61,700

A$36,350

A$16,000

A$31,950

The Chairman of the Board does not receive Committee fees in addition to his Board Chairman fee.

A travel allowance of A$15,000 per annum is in place for those NEDs who reside outside of Australia and travel to and from
Australia to attend Board and Committee meetings. Where no travel is undertaken in a quarter, no allowance is paid. In 2023,
no allowance was paid.

104

Directors’ ReportCSL Limited Annual Report 2022/238.3 Non-Executive Share Purchases

During 2023, CSL completed two on-market purchases of shares for the purposes of the NED Rights Plan. A total of 2,822 shares
were purchased during the reporting period and the average price paid per share was A$295.12.

8.4 Non-Executive Director Statutory Remuneration Tables

Remuneration is reported in US$, unless otherwise stated. This is consistent with the presentation currency used by CSL.

8.4.1 Non-Executive Director Remuneration 2022 and 2023

Table 15: Statutory Remuneration Disclosure – Non-Executive Directors

Non-Executive Director

B McNamee – Chairman

B Brook

M Clark

A Cuthbertson36

C Hewson

D Maskell37

M McDonald

A Watkins38

TOTAL

Short Term
Benefits

Post Employment

Share Based
Payments

Cash Salary
and Fees US$34

Superannuation
US$

Retirement
Benefits US$

Rights US$35

Total

464,986

489,543

120,837

178,358

191,711

202,267

151,123

117,973

133,332

140,877

54,788

60,806

154,958

171,831

136,479

121,065

1,408,214

1,482,720

17,005

17,158

6,028

8,579

17,005

17,158

18,490

15,015

17,005

17,158

17,005

20,021

8,502

–

18,490

20,021

119,530

115,110

–

119,228

125,313

97,275

51,686

33,551

35,290

50,681

33,844

83,932

88,508

115,541

85,480

50,410

52,966

58,269

49,819

601,219

632,014

224,140

238,623

242,267

254,715

220,294

166,832

234,269

246,543

187,334

166,307

213,870

224,797

213,238

190,905

608,887

2,136,631

522,906

2,120,736

Year

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

8.4.2 Non-Executive Director Shareholdings

Details of fully paid ordinary shares held directly, indirectly or beneficially by each NED, including their related parties, is
provided in Table 16. Any amounts are presented in US$. Details of Rights held directly, indirectly or beneficially by each NED,
including their related parties, is provided in Table 17. Following the vesting of awards, any trading undertaken by NEDs was
subject to the Group Securities Dealing Policy (outlined in section 9.6).

34 The A$ compensation paid and share based payments during the years ended 30 June 2022 and 30 June 2023 have been converted to US$. For the 2023

compensation, this has been converted to US$ at an average exchange rate for the 2023 financial year of 1.48733. For the 2022 compensation, this has been
converted to US$ at an average exchange rate for the 2022 financial year of 1.37359. Both the amount of remuneration and any movement in comparison to
prior years may be influenced by changes in the A$/US$ exchange rates. No long term or termination benefits were paid in 2023.

35 As disclosed in the section 8.1, NEDs participate in the NED Rights Plan under which NEDs are required to take at least 20% of their after-tax base fees (excluding
superannuation guarantee contributions) in the form of Rights. Rights are granted upfront and are expensed over the period of grant to vest. The Fair Value per
Right at the grant date of 25 August 2022 was A$292.74 for Tranche 1 (vests 20 February 2023) and A$290.97 for Tranche 2 (vests 21 August 2023).

36 In 2022 A Cuthbertson was a NED for the period 2 October 2021 to 30 June 2022.
37 In 2022 D Maskell was a NED for the period 18 August 2021 to 30 June 2022.
38 In 2022 A Watkins was a NED for the period 18 August 2021 to 30 June 2022.

105

CSL Limited Annual Report 2022/23Table 16: Non-Executive Director Shareholdings

KMP

Non-Executive Director

B McNamee

B Brook

M Clark

A Cuthbertson

C Hewson

D Maskell

M McDonald

A Watkins

Number of
Shares
Acquired on
Vesting and
Exercise of
Rights
during year

Value of
Shares
Acquired on
Exercise of
Rights
during year

US$39

Opening
Balance
as at 1 July
2022

Number of
(Shares Sold)/
Purchased

Closing
Balance at
30 June 2023

(16,370)

146,580

162,362

6,122

4,013

111,752

1,241

209

3,614

1,955

588

377

166

1,333

414

508

249

271

117,440

75,414

33,155

–

270

263,854

(22,822)

82,688

101,531

49,733

54,144

–

1,000

6,499

4,449

90,263

1,655

717

3,863

3,226

There have been no movements in shareholdings of NEDs between 30 June 2023 and the date of this Report.

Table 17: Non-Executive Director Rights Holdings

Opening
Balance
at 1 July
2022

Number
Granted40

Face
Value of
Rights
Granted

Fair
Value of
Rights
Granted

US$41

US$42

Number
Exer-
cised43

Value of
Rights
Exer-
cised

US$44

Number
Lapsed

Closing
Balance
at 30
June
2023

Number
Vested
During

Unves-

Year Vested45

ted46

Closing Balance
at 30 June 2023

KMP

Security

Non-Executive Director

B McNamee

B Brook

M Clark

Right

A Cuthbertson47

Right

284

120

608 118,475

119,306

588

117,440

514 100,157 100,861

171

33,321

33,555

257

50,079

50,431

377

166

249

75,414

33,155

49,733

–

PSU

4,480

–

1,084

214,121

(2,235)

C Hewson

D Maskell

M McDonald

A Watkins

Right

200

208

120

121

428 83,400 83,985

414

82,688

600

116,916

117,736

257

50,079

50,431

300 58,458 58,869

508

249

271

101,531

49,733

54,144

–

304

257

128

1,161

214

300

128

150

588

377

166

249

1,333

414

508

249

271

–

304

257

128

1,161

214

300

128

150

39 The value at exercise date has been determined by the share price at the close of business on the exercise date multiplied by the number of Rights exercised

during 2023. The A$ value was converted to US$ at an average rate for the year of 1.48733.

40 The number of Rights granted is determined by dividing the NEDs elected percentage of pre-tax base fee (minimum 20%) by the five day volume weighted
average price (VWAP) at which CSL shares were traded on the ASX ending on (and including) the last ASX trading day prior to the date of grant of the Rights
being 24 August 2022 of A$294.46. The Rights were granted on 25 August 2022 in two tranches. Tranche one had a vesting date of 20 February 2023 and tranche
two vests 21 August 2023.

41 The value at grant date has been determined by the share price at the close of business on the grant date of 25 August 2022 being A$289.82 multiplied by the
number of Rights granted during 2023. The A$ value was converted to US$ at an average exchange rate for the year of 1.48733. The Rights have an expiry date
fifteen years from the start of the financial year in which the Rights were granted.

42 The value of Rights is calculated based on an assessment of the fair market value of the instruments in accordance with the accounting standards (refer to Note

18 in the Financial Statements). The fair value of each Right granted on 25 August 2022 was Tranche 1: A$292.74 and Tranche 2: A$290.97 multiplied by
the number of Rights granted during 2023.

43 Vesting and exercise occurred in relation to Tranche 2 of the 2022 grant and Tranche 1 of the 2023 grant. All Rights eligible vested at 100% during the year. No

Rights eligible to vest were lapsed.

44 The value at exercise date has been determined by the share price at the close of business on the exercise date multiplied by the number of Rights exercised

during 2023. The A$ value was converted to US$ at an average exchange rate for the year of 1.48733. Australian based NEDs have Rights exercised at the vesting
date and a holding lock is placed on the shares for a period of three to fifteen years as elected by the NED.

45 Vested Rights are exercisable to the NED at the end of the nominated restriction period. All vested Rights are currently unexercisable until the end of the

nominated restriction period.

46 Unvested Rights represent Tranche 2 of the 2023 grant that will vest on 21 August 2023, following the release of full year financial results.
47 All PSUs held by A Cuthbertson in his capacity as a member of the Company’s Executive KMP until 1 October 2021 are disclosed in prior year Remuneration Reports.

106

Directors’ ReportCSL Limited Annual Report 2022/239. Remuneration Governance

The following diagram illustrates CSL’s remuneration governance framework.

CSL Board:
The Board is responsible for the oversight and strategic direction of CSL. It monitors operational and financial performance,
human resources policies and practices, and approves the company’s budgets and business plans. It is also responsible
for overseeing CSL’s risk management, financial reporting and compliance framework.

The Board reviews, makes comment on and, as appropriate, approves remuneration recommendations from the HRRC.
The Board approves the remuneration and remuneration outcomes for the CEO and NEDs and approves the policies and
processes that govern both.

HRRC:
The HRRC has oversight of all aspects of remuneration
at CSL. The Board has delegated responsibility to the
HRRC for reviewing and making recommendations
to the Board with regard to:

• Executive remuneration design;

• Approval of awards to the CEO;

• Senior executive succession planning;

• The design and implementation of CSL incentive

plans (including equity based arrangements);

• The remuneration and other benefits applicable

to NEDs; and

• The CSL diversity policy and measurable objectives

for achieving gender diversity.

The HRRC is able to approve the remuneration
of Executive KMP (excluding the CEO).

Members
Dr Megan Clark AC (Chair), Ms Carolyn Hewson AO,
Ms Marie McDonald and Ms Alison Watkins AM.

ARMC:
The ARMC assists the Board in the governance of CSL’s
financial reporting and disclosures, risk identification,
management and compliance, and oversees and
monitors ESG performance.

The ARMC advises the HRRC on any material risk
management and financial matters that may impact
remuneration outcomes.

External Remuneration Advisers:
The Board and the HRRC may seek and consider advice
directly from external advisors, who are independent
of management.

In 2023 the HRRC engaged the services of Aon
Consulting in the US, and EY in Australia. Under
engagement and communication protocols adopted
by CSL, the market data and other advice were provided
directly to the HRRC by both Aon Consulting and EY.
Neither Aon Consulting nor EY provided Remuneration
Recommendations during the 2023 financial year.

Joint HRRC and ARMC meetings:
The Committees meet jointly at least annually to review and consider relevant risk management
matters in the determination of the Executive KMP remuneration outcomes.

107

CSL Limited Annual Report 2022/23LTI Outcomes – The HRRC assesses performance against
the hurdle measures set at grant by the Board. Following this,
the HRRC undertakes a review to ensure the remuneration
outcomes are aligned with overall business performance and
the shareholder experience and then submits outcomes to
the Board for approval. The Board believes this is the most
appropriate method of assessment.

Board Discretion – Prior to approving CEO remuneration
outcomes and before finalising all other Executive KMP
outcomes, the Board holistically assesses the outcomes and
considers whether there are any circumstances warranting
application of the Malus and Clawback Policy. It also considers
the ‘Leading and Managing’ modifier and ensures that the
interaction of remuneration outcomes is in alignment with
risk management outcomes for the year and that any
material risk issues and behaviours and/or compliance
breaches are addressed. The Board’s assessment is informed
by the review undertaken by the HRRC in conjunction with
the ARMC. The Board has discretion to determine final
vesting outcomes to ensure outcomes are in line with CSL
performance, market reported financial outcomes and the
experience of our shareholders. Discretion may be exercised
to either increase or reduce vesting outcomes, which includes
reducing to zero.

New Hires and Internal Promotions – The Remuneration
Framework set out in section 3.2 applies to the remuneration
arrangements for any newly hired or promoted Executive
KMP, ensuring a market competitive Total Reward offering.
In the case of external hires, the HRRC and Board may
determine that it is appropriate for a commencement
benefit to be offered. Commencement benefits in the
form of cash and/or equity can be made to compensate
for remuneration being forfeited from a former employer.
For any foregone equity awards, CSL equity will typically be
used as compensation. Awards may be discounted to take
into consideration any performance conditions on the award
at the former employer and the HRRC will determine the
appropriate service and performance conditions on the CSL
award within the CSL framework. For internal promotions,
the HRRC may determine that an award of equity should
be made to ensure an appropriate Total Reward package.
This is typically done as hurdled equity under the LTI
framework described in section 3.2.5.

9.1 HRRC Activities

During 2023, the HRRC met on six occasions. The attendance
of the HRRC members at those meetings can be found in the
Directors’ Report of the 2023 Annual Report available on CSL.com.

Activities undertaken include:

• Review of the executive remuneration framework;

• Review and consideration of investor feedback received

across the year;

• Appointment of external remuneration advisors;

• Review of senior executive appointments and remuneration

arrangements;

• Review of STI and LTI arrangements, and reward outcomes

for senior executives;

• Review of the CSL diversity objectives and report, and

gender pay review and progress against diversity objectives;

• Review of talent and succession planning for senior executives;

• Review of long term remuneration strategy and global

trends in remuneration;

• Review of NED remuneration; and

• Review of the HRRC Charter and HRRC performance.

Full responsibilities of the HRRC are outlined in its Charter
(reviewed annually) – available at http://www.csl.com.au/
about/governance.htm

9.2 Remuneration Determination

The Board has discretion across each element of Executive
KMP reward and considers business performance, individual
performance and shareholder experience before setting and
approving reward outcomes.

Remuneration Recommendations – Reviewed on an annual
basis, the CEO makes a recommendation to the HRRC for
Executive KMP, with the HRRC recommending to the Board
for the CEO, any change to FR and STI and LTI targets for
the year ahead. Recommendations take into consideration
market conditions, position in market within the global
pharmaceutical/biotechnology peer group, individual
performance, role responsibilities and internal relativity.
Remuneration is reviewed in the context of Total Reward.
There is a higher proportion of Total Reward in the form
of performance related variable pay.

STI Outcomes – A formal review of Executive KMP progress
against KPIs is conducted twice annually by the CEO and
annually by the Board for the CEO. Regular performance
conversations are held during the year. Following the full year
performance review, the CEO makes recommendations in
respect of Executive KMP to the HRRC. The HRRC and the
Board assess individual performance against KPIs at the end
of the financial year, and approve the actual STI payments
to be made. The Board determines the outcomes for the
CEO, based on recommendations from the HRRC, who are
informed by the Chairs of the Board and HRRC. The Board
believes this is the most appropriate method of assessment.

108

Directors’ ReportCSL Limited Annual Report 2022/239.3 Contractual Provisions for Executive KMP

Executive KMP are employed on individual service contracts that outline the terms of their employment, which include:

Duration of Contract

Notice Period Employee

Notice Period CSL*

Termination Payment

No fixed term

Six months

12 months

*CSL may also terminate at any time without notice for serious misconduct and/or breach of contract. CSL may also make payment in lieu of notice

The CEO is a US based executive and, under the CEO’s employment contract, CSL has agreed to indemnify the CEO if he
is subject to additional tax on his remuneration in any jurisdiction other than the US.

9.4 Other Transactions

9.6 Securities Dealing

The CSL Securities Dealing Policy prohibits employees from
using price protection arrangements (e.g. hedging) in respect
of CSL securities, or allowing them to be used. The Policy also
provides that no CSL securities can be used in connection
with a margin loan. Upon vesting of an award, an employee
may only deal in their CSL securities in accordance with the
Policy. A breach of the Policy may result in disciplinary action.
A copy of the Policy is available at http://www.csl.com.au/
about/governance.htm.

9.7 Minimum Shareholding Guideline

To be met within a target of the first five years of appointment,
or within five years for current incumbents, and to be held
whilst in the role at CSL, the following levels of vested equity
must be held:

• CEO: Three times base salary;

• Executive KMP: One times base salary; and

• NEDs: One times Board base fee.

As at 30 June 2023, all KMP hold, or are on track to hold, the
minimum shareholding requirement within the relevant
time period.

No loans were made, guaranteed or secured, directly or
indirectly by CSL or any of its subsidiaries, to any Executive
KMP or their related parties during 2023.

No loans were made to NEDs during 2023. To the extent
that there were transactions between the Company and
an organisation with which a NED may be connected or
associated, those transactions were all on normal commercial
arms’ length terms, immaterial, and the relevant NED
had no involvement in any procurement or other Board
decision-making related to the transaction.

9.5 Malus and Clawback Policy

CSL operates a Malus and Clawback Policy. ‘Malus’ means
adjusting or cancelling all or part of an individual’s variable
reward as a consequence of a materially adverse
development occurring prior to payment (in the case of cash
incentives) and/or prior to vesting (in the case of equity
incentives). ‘Clawback’ means seeking recovery of a benefit
paid or given to take into account a materially adverse
development that only comes to light after payment or
award, including shares delivered post vesting.

The Board, in its discretion, may apply the policy to any
incentive provided to a senior executive, including a former
senior executive, upon the occurrence (or the discovery of the
occurrence) of any of the following events or conduct:

• material misstatement, omission or error in the financial

statements of a Group company or the CSL Group leading
to a senior executive receiving a benefit greater than the
amount that would have been received had such
misstatement, omission or error not occurred;

• fraud or dishonesty to CSL or any Group company;

• wilful engagement in conduct which is, or might reasonably
be expected to be, injurious to CSL or any Group company,
monetarily or otherwise, including, but not limited to, its
reputation or standing in its industry;

• intentional act that is materially adverse to the best interests

of CSL or any Group company;

• violation of any material law or regulation;

• adverse risk management outcomes; and/or

• material violation of CSL’s Code of Conduct or any other

policy governing the conduct of employees of CSL or any
Group company or any agreement or covenant entered into
between a senior executive and CSL or any Group company.

In 2023, following a joint review of reward outcomes by both
the HRRC and the ARMC, there was no application of the
Malus and Clawback Policy.

109

CSL Limited Annual Report 2022/23
10. Additional Employee Equity Programs and Legacy Plan Information

In addition to the Executive Performance and Alignment Plan LTI program described earlier in this Report, CSL operates two
additional employee equity programs – the Global Employee Share Plan and the Retain and Grow Plan. An overview of those
programs is provided below.

10.1 Global Employee Share Plan

CSL’s Global Employee Share Plan (GESP) provides all
employees the opportunity to share in the ownership
of our company and share in our future.

Operating across two six month contribution periods, an
employee can elect to make post tax salary contributions
between A$365 and A$12,000 per six month period. The
employee then receives shares at a 15% discount to the
applicable market rate over the five day period up to and
including the first and last ASX trading days of the six month
period, whichever is the lower. Shares are then held in restriction
for a period of one or three years as determined upfront by the
employee. The shares may be issued or purchased on market.

To participate in GESP an employee must have at least six
months service at the start of the contribution period.
Participation is open to permanent full or part time and fixed
term contract employees and excludes Executive Directors.

10.2 Retain and Grow Plan

The CSL Group Retain and Grow Plan (RGP) LTI program
is designed to attract, motivate and retain key talent across
the organisation. RGP provides eligible employees with
longer-term share ownership in CSL, enabling them to
share in the company’s success and any capital growth.

The RGP recognises those individuals in management roles
(Manager to Senior Vice President) across the CSL Group.
Awards under the RGP are not guaranteed and the CSL
Board will review participation on an annual basis.

Key plan elements are as follows

• A conditional ‘right’ to a CSL share (i.e. full value instrument)
or at the Board’s discretion, a cash equivalent payment. No
price is payable by the participant on grant or vesting of
rights. Shares are automatically allocated (or cash automatically
paid) without the need for exercise by a participant;

• The security granted is a RSU;

• LTI opportunity set as % of local salary (converted to A$

at grant);

• Number of RSUs determined using face value (five day

weighted average share price);

• Individual performance hurdle – must not fail to meet

performance expectations;

• 33% of RSUs will vest on the first and second anniversaries
of the Issue Date, with the remaining 34% vesting on the
third anniversary;

• There is no retesting of awards;

• On cessation of employment a ‘qualified leaver’ (such as

retirement or redundancy) will retain a pro-rated number
of RSUs based on time elapsed since grant date, subject
to original terms and conditions. If a participant is not a
‘qualified leaver’, all unvested awards will be forfeited unless
the Board determines otherwise;

• In the event of a change of control, the Board, in its absolute

discretion, may determine that some or all of the awards vest
having regard to the performance of the participant during
the vesting period to the date of the change of control event.
Vesting may occur at the date of the change of control event
or an earlier vesting date as determined by the Board; and

110

• No dividends or dividend equivalents are paid on unvested
awards. Participants are only eligible for dividends once
shares have been allocated following vesting of any RSUs.
RSUs do not carry any voting rights prior to vesting and
allocation of shares.

Our Senior Vice President and Vice President employees
participate in both the Executive Performance and Alignment
PSU (described in section 3.2.5) and RGP LTI Plans with a
higher portion of awards aligned to the executive plan.

The RGP is also used for commencement benefits, retention
and recognition awards at all levels of the organisation. The
difference to the annual program is the vesting schedule,
which is reviewed and determined on a case by case basis.

10.3 Key Characteristics of Prior Financial Year

Performance Share Unit Grants

The following table provides information on the key
characteristics of the LTI programs on foot during the 2023
reporting period. The 2019 (granted 1 September 2018), 2020
(granted 1 September 2019) and 2021 (granted 1 September
2020) PSU LTI awards have the same key characteristics as
the 2023 (granted 1 November 2022) award disclosed in
section 3.2.5 with the exception of the hurdle, performance
period, performance targets and vesting dates as outlined
in Table 18. The ROIC component of the 2022 award (granted
1 September 2021) also aligns with the above, and an EPSg
measure was added, weighted 30% of the award. Details are
also included in Table 18 with remaining terms aligning with
the detail provided in section 3.2.5.

For the three unvested LTI awards that were granted to
Executives prior to the acquisition of Vifor Pharma – 2020
tranche 4 (granted 1 September 2019), 2021 tranches 3 and
4 (granted 1 September 2020) and the 2022 award (granted
1 September 2021) – that will be tested in calendar years 2023
and 2024, the Board has determined that it will make an
adjustment to the financial results that will be used to
determine vesting.

At the time of the grants, performance hurdle targets against
the metrics of ROIC and EPS growth, were set based on the
financial projections undertaken at that time and did not
consider a material acquisition. The Board has determined
that it will not adjust the performance targets and will
exclude the impact of CSL Vifor from the audited financial
results of the CSL Group to determine the testing outcomes.
This will involve the exclusion of the CSL Vifor contribution
to Earnings before Interest and Tax (for the ROIC calculation)
and NPAT (for the EPS calculation) and the adjustment of
debt and equity (for ROIC) to remove the funding specific
to the Vifor Pharma acquisition. EPS will be calculated by
excluding the shares issued to fund the acquisition from
the denominator of the EPS calculation and using NPAT
excluding CSL Vifor from the numerator. However, the
Board will take into account CSL Vifor performance when
considering the overall vesting outcomes.

All grants made after the acquisition include the contribution
of CSL Vifor.

The Board also retains discretion to adjust vesting outcomes
considering company performance, individual performance
and shareholder experience.

Directors’ ReportCSL Limited Annual Report 2022/23Table 18: Key Characteristics of Prior Financial Year PSU Grants

Grant Date

1 Sep 2018

1 Sep 2019

1 Sep 2020

1 Sep 2021

Tranche

Performance
Measure

Performance Period

Performance Target

Vesting Date

ROIC

1 July 2015 – 30 June 2022

ROIC

1 July 2015 – 30 June 2022

1 July 2016 – 30 June 2023

1 July 2015 – 30 June 2022

1 July 2016 – 30 June 2023

1 July 2017 – 30 June 2024

EPSg

1 July 2021 – 30 June 2024

Threshold – 24%
Target – 27%

Threshold – 22%
Target – 25%

Threshold – 20%
Target – 23%

Threshold – 20%
Target – 21.4%

Threshold – 5%
Target – 8.3%

1 September 2022

1 September 2023

1 September 2022

1 September 2023

1 September 2024

111

CSL Limited Annual Report 2022/23Consolidated Statement of Comprehensive Income
For the Year Ended 30 June 2023

Sales and service revenue

Influenza pandemic facility reservation fees

Royalties and license revenue

Other income

Total operating revenue

Cost of sales

Gross profit

Research and development expenses

Selling and marketing expenses

General and administration expenses

Operating profit

Finance costs

Finance income

Profit before income tax expense

Income tax expense

Net profit for the year

Other comprehensive income (OCI)

Items that may be reclassified subsequently to profit or loss

Hedging transactions

– Changes in fair value

– Realised in profit and loss

Exchange differences on translation of foreign operations, net of hedges
on foreign investments

Items that will not be reclassified subsequently to profit or loss

Changes in fair value on equity securities measured through OCI, net of tax

Actuarial gains on defined benefit plans, net of tax

Total other comprehensive losses

Total comprehensive income for the year

Net profit for the year attributable to:

– Shareholders of CSL Limited

– Non-controlling interests

Total comprehensive income for the year attributable to:

– Shareholders of CSL Limited

– Non-controlling interests

Earnings per share (based on net profit attributable to CSL Limited shareholders for the year)

Basic earnings per share

Diluted earnings per share

The consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Consolidated Entity

2023
US$m

12,776

156

242

136

13,310

(6,466)

6,844

(1,235)

(1,454)

(1,086)

3,069

(444)

2,663

(419)

2,244

–

(14)

(17)

(42)

(72)

2,172

2,244

2,194

2,172

2,122

US$

4.55

4.53

2022
US$m

10,136

162

195

10,562

(4,830)

5,732

(1,156)

(961)

(688)

2,927

(165)

2,780

(525)

2,255

135

(1)

(287)

(7)

(125)

2,130

2,255

–

2,130

–

US$

4.81

4.80

Notes

112

CSL Limited Annual Report 2022/23Consolidated Balance Sheet
As at 30 June 2023

CURRENT ASSETS

Cash and cash equivalents

Receivables and contract assets

Inventories

Current tax assets

Other financial assets

Total Current Assets

NON-CURRENT ASSETS

Property, plant and equipment

Right-of-use assets

Intangible assets

Deferred tax assets

Retirement benefit assets

Other receivables

Other financial assets

Total Non-Current Assets

TOTAL ASSETS

CURRENT LIABILITIES

Trade and other payables

Interest-bearing liabilities and borrowings

Current tax liabilities

Provisions

Total Current Liabilities

NON-CURRENT LIABILITIES

Interest-bearing liabilities and borrowings

Retirement benefit liabilities

Deferred tax liabilities

Provisions

Other non-current liabilities

Total Non-Current Liabilities

TOTAL LIABILITIES

NET ASSETS

EQUITY

Contributed equity

Reserves

Retained earnings

Equity attributable to shareholders of CSL Limited

Non-controlling interests

TOTAL EQUITY

The consolidated balance sheet should be read in conjunction with the accompanying notes.

Consolidated Entity

Notes

2023
US$m

2022
US$m

1,548

2,205

5,466

10,436

1,657

4,333

9,259

16,461

7,797

1,555

16,446

902

173

26,975

36,234

2,947

1,055

296

310

4,608

11,172

204

1,464

467

493

13,800

18,408

17,826

517

648

14,621

15,786

2,040

17,826

7,017

1,292

2,638

518

403

11,885

28,346

2,301

4,494

131

182

7,108

5,165

189

670

102

535

6,661

13,769

14,577

483

590

13,504

14,577

–

14,577

113

CSL Limited Annual Report 2022/23Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2023

Equity attributable to shareholders of CSL Limited

Contributed
Equity
US$m

Other reserves
US$m

Retained
earnings
US$m

Total
shareholders’
equity
US$m

Non-controlling
interests
US$m

Total equity
US$m

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

As at the beginning
of the year

Profit for the year

Other comprehensive
(losses)/income

Total comprehensive
(losses)/income

Transactions with
owners in their
capacity as owners

Share-based payments

Dividends

Share issues

Acquisition of CSL
Vifor (Note 2)1

As at the end
of the year

–

4,988

483

(4,505)

590

633

13,504

12,253

14,577

8,381

–

2,194

2,255

2,194

2,255

(73)

(160)

(72)

(125)

(73)

(160)

2,195

2,290

2,122

2,130

–

138

117

–

138

117

–

(1,085)

(1,039)

(1,085)

(1,039)

(154)

–

4,988

–

2,144

–

(7)

517

483

648

590

14,621

13,504

15,786

14,577

2,040

–

14,577

8,381

2,244

2,255

(72)

(125)

2,172

2,130

138

117

(1,239)

(1,039)

4,988

2,144

–

17,826

14,577

The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Prior to acquisition close in August 2022, the Group commenced buying Vifor’s shares on-market. These shares were carried at fair value through OCI and the
subsequent fair value gain was transferred to retained earnings on acquisition date.

114

CSL Limited Annual Report 2022/23Consolidated Statement of Cash Flows
For the Year Ended 30 June 2023

Cash Flows from Operating Activities

Profit before income tax expense

Adjustments for:

Depreciation, amortisation and impairment

Inventory provisions

Share-based payment expense

Provision for expected credit losses

Finance costs, net

(Gain)/Loss on disposal of property, plant and equipment

Contingent consideration liabilities reversal

Unrealised foreign exchange losses/(gains)

Changes in operating assets and liabilities:

Decrease/(increase) in receivables and contract assets

Increase in inventories

Increase in trade and other payables

Increase/(decrease) in provisions and other liabilities

Proceeds from settlement of treasury lock

Income tax paid

Finance costs, net paid

Net cash inflow from operating activities

Cash flows from Investing Activities

Payments for property, plant and equipment

Proceeds from sale of property, plant and equipment

Payments for intangible assets

Payments for business acquisition, net of cash acquired

Proceeds from sale of financial assets

Net cash outflow from investing activities

Cash flows from Financing Activities

Proceeds from issue of shares

Dividends paid to CSL Limited shareholders

Dividends paid to non-controlling interests

Proceeds from borrowings

Repayment of borrowings

Principal payments of lease liabilities

Net cash inflow from financing activities

Net (decrease)/increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the financial year

Exchange rate variations on foreign cash and cash equivalent balances

Cash and cash equivalents at the end of the year

Reconciliation of cash and cash equivalents in the statement of cash flows:

Cash and cash equivalents

Bank overdrafts

Cash and cash equivalents at the end of the year

The consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Consolidated Entity

Notes

2023
US$m

2022
US$m

2,663

2,780

831

182

139

(4)

406

(57)

(32)

(907)

197

–

(563)

(374)

2,601

(1,228)

111

(464)

(10,534)

272

668

224

117

165

(63)

(60)

(45)

(902)

337

(102)

135

(457)

(172)

2,629

(1,079)

–

(169)

(388)

–

(11,843)

(1,636)

(1,085)

(154)

2,539

(798)

(80)

456

(8,786)

10,334

(39)

1,509

1,548

(39)

1,509

4,988

(1,039)

–

4,093

(316)

(50)

7,676

8,669

1,730

(65)

10,334

10,436

(102)

10,334

115

CSL Limited Annual Report 2022/23Notes to the Financial Statements
For the Year Ended 30 June 2023

Contents

About this Report

Notes to the financial statements:

Our Current Performance

Note 1: Segment Information

Note 2: Business Combinations

Note 3: Revenue and Expenses

Note 4: Tax

Note 5: Inventories

Note 6: People Costs

Our Future

Note 7: Research and Development

Note 8: Intangible Assets

Note 9: Property, Plant and Equipment

Returns, Risk & Capital Management

Note 10: Shareholder Returns

Note 11: Financial Risk Management

Note 12: Equity and Reserves

Note 13: Commitments and Contingencies

Efficiency of Operation

Note 14: Cash and Cash Equivalents

Note 15: Receivables, Contract Assets and Payables

Note 16: Provisions

Other Notes

Note 17: Related Party Transactions

Note 18: Detailed Information – People Costs

Note 19: Detailed Information – Shareholder Returns

Note 20: Auditor Remuneration

Note 21: Deed of Cross Guarantee

Note 22: Parent Entity Information

Note 23: Non-Controlling Interests

Note 24: Subsequent Events

Note 25: Amendments to Accounting Standards and
Interpretations

116

118

121

124

127

129

130

133

136

138

139

145

147

148

150

151

152

155

156

157

159

160

161

About this Report

Notes to the financial statements:

Corporate information

CSL Limited (CSL) is a for-profit company incorporated and
domiciled in Australia and limited by shares publicly traded
on the Australian Securities Exchange. This financial report
covers the financial statements for the consolidated entity
consisting of CSL and its subsidiaries (together referred to
as the Group). The financial report was authorised for issue
in accordance with a resolution of directors on 15 August 2023.

A description of the nature of the Group’s operations and
its principal activities is included in the directors’ report.

a. Basis of preparation

This general purpose financial report has been prepared
in accordance with Australian Accounting Standards, other
authoritative pronouncements of the Australian Accounting
Standards Board, International Financial Reporting
Standards (IFRS) and the Corporations Act 2001. It presents
information on a historical cost basis, except for certain
financial instruments, which have been measured at fair
value. Amounts have been rounded off to the nearest
million dollars.

The report is presented in US dollars, because this currency is
the pharmaceutical industry standard currency for reporting
purposes. It is the predominant currency of the Group’s
worldwide sales and operating expenses.

b. Principles of consolidation

The consolidated financial statements comprise the financial
statements of CSL and its subsidiaries as at 30 June 2023. CSL
has control of its subsidiaries when it is exposed to, and has
the rights to, variable returns from its involvement with those
entities and when it has the ability to affect those returns.
A list of significant controlled entities (subsidiaries) at year
end is contained in Note 17.

Non-controlling interests in the financial results and equity
of subsidiaries are shown separately in the consolidated
statement of comprehensive income, statement of changes
in equity and balance sheet respectively. Further details
about the Group’s non-controlling interest is contained
in Note 23.

The financial results of the subsidiaries are prepared using
consistent accounting policies and for the same reporting
period as the parent company.

In preparing the consolidated financial statements, all
intercompany balances and transactions have been eliminated
in full. The Group has formed a trust to administer the Group’s
employee share plan. This trust is consolidated as it is controlled
by the Group.

116

CSL Limited Annual Report 2022/23c. Foreign currency

f. The notes to the financial statements

The notes to these financial statements have been organised
into logical groupings to help users find and understand the
information they need. Where possible, related information
has been provided in the same place. More detailed
information (for example, valuation methodologies and
certain reconciliations) has been placed at the rear of the
document and cross-referenced where necessary. CSL has
also reviewed the notes for materiality and relevance and
provided additional information where it is helpful to an
understanding of the Group’s performance.

g. Significant changes in the current year

The Group completed the acquisition of Vifor Pharma Ltd
(CSL Vifor) on 9 August 2022. The financial results of CSL
Vifor consolidated within the Group as a result represent
the contribution from that date onward, and therefore not
for a full twelve month period. Refer to Note 2 for details
of this acquisition.

There were no significant changes in accounting policies
during the year ended 30 June 2023, nor did the introduction
of new accounting standards lead to any change in
measurement or disclosure in these financial statements.

The Group has not adopted any accounting standards that
are issued but not yet effective. Significant accounting
policies that summarise the measurement basis used and
are relevant to an understanding of the financial statements
are provided in the annual financial report.

While the presentation currency of the Group is US dollars,
entities in the Group may have other functional currencies,
reflecting the currency of the primary economic environment
in which the relevant entity operates. The parent entity, CSL
Limited, has a functional currency of US dollars.

If an entity in the Group has undertaken transactions in
foreign currency, these transactions are translated into that
entity’s functional currency using the exchange rates prevailing
at the dates of the transactions.

d. Other accounting policies

Significant accounting policies that summarise the
measurement basis used and are relevant to an
understanding of the financial statements are provided
throughout the notes to the financial statements.

e. Key judgements and estimates

In the process of applying the Group’s accounting policies,
a number of judgements and estimates of future events
are required. Material judgements and estimates are found
in the following notes:

Note 2:

Business Combinations

Note 3:

Revenue and Expenses

Note 4:

Tax

Note 5:

Inventories

Note 6:

People Costs

Note 8:

Intangible Assets

Note 11:

Financial Risk Management

Page 122

Page 124

Page 127

Page 129

Page 130

Page 133

Page 139

Note 15: Receivables, Contract Assets and Payables Page 148

The Group has assessed the impact of climate risk on its
financial reporting. The impact assessment principally
focuses on key judgement areas, being the valuation
and useful lives of intangible and tangible assets and the
identification and valuation of provisions and contingent
liabilities. No material accounting impacts or changes to
judgements or other required disclosures have resulted
from the assessment. While the assessment did not have
a material impact for the year ended 30 June 2023, this may
change in future periods as the Group regularly updates
its assessment of the impact of the lower carbon economy.

117

CSL Limited Annual Report 2022/23Our Current Performance

Note 1: Segment Information

The Group’s segments represent strategic business units that offer different products and operate in different industries and
markets. They are presented consistent with the way the CEO who is the chief operating decision-maker (CODM) monitors and
assesses business performance to make resource allocation decisions.

The acquisition of CSL Vifor in August 2022, resulted in a change in which the business is monitored and assessed. The
operating segments are now being measured based on the segment operating result, being the revenues and costs directly
under the control of the business unit.

The Group’s operating segments are:

CSL Behring – manufactures, markets and distributes plasma products, gene therapies and recombinants.

CSL Seqirus – manufactures, markets and distributes predominantly influenza related products and provides pandemic
services to governments.

CSL Vifor – manufactures, markets and distributes products in the therapeutic areas of iron deficiency and nephrology.

The Group’s centralised research and development (‘R&D’) function builds on its capabilities across the R&D value chain.
The Group continues to make balanced investments in life cycle management and market development of existing and
new products. Costs related to R&D are reported separately and are not allocated to the operating segments.

The Group utilises globally integrated functions to realise economies of scale. The functions include executive office,
communications, finance, human resources, legal, information & technology. The costs related to these functions, as well as any
other non-business unit related costs (including depreciation and amortisation of unallocated assets) are reported as General
and Administration expenses and are not allocated to the operating segments.

To enable a comparison of prior year performance, ‘Segment revenue and expenses’ has been restated using the new
segments for the prior year comparatives ended 30 June 2022.

Segment information is presented as reviewed by the CODM on a regular basis, being the underlying performance of the
businesses. A reconciliation of the segment results to the AASB financials is provided within this note.

118

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 1: Segment Information continued

CSL Behring

CSL Seqirus

CSL Vifor2

Consolidated Entity

US$m

Sales and service revenue

Influenza pandemic facility reservation fees

Royalty and license revenue

Other income

Total segment revenue

Segment gross profit3

Segment gross profit %3

2023

8,968

–

215

107

9,290

4,575

49.2%

2022

8,359

–

195

8,598

4,582

53.3%

2023

1,851

156

–

2,031

1,264

2022

1,777

162

–

1,964

1,152

2023

1,957

–

1,989

1,411

62.2%

58.7%

70.9%

Sales and marketing expenses

(782)

(774)

(182)

Segment operating result3

Segment operating result %

3,793

40.8%

3,808

44.3%

1,082

53.3%

(187)

965

(490)

921

49.1%

46.3%

Research and development expenses3

General and administrative expenses3

Operating profit (EBIT)3

Finance costs

Finance income

Profit before tax3

Income tax expense3

NPATA4

Amortisation and impairment of acquired
intellectual property (IP)5

Unwind of inventory fair value uplift6

Acquisition and integration costs7

Income tax credit on above adjustments

Statutory net profit after tax (NPAT)

Amortisation of intangibles (excluding IP)

Depreciation

Impairment not relating to acquired IP

EBITDA8

NPATA4

– Attributable to equity holders of CSL

– Attributable to non-controlling interests

Statutory net profit after tax (NPAT)

– Attributable to equity holders of CSL

– Attributable to non-controlling interests

273

–

281

–

4,069

4,105

1,156

1,042

954

2022

–

2023

12,776

156

242

136

13,310

7,250

54.5%

2022

10,136

162

195

10,562

5,734

54.3%

(1,454)

(961)

5,796

43.5%

4,773

45.2%

(1,232)

(1,043)

(907)

3,657

(444)

3,251

(504)

2,747

(235)

(169)

(184)

(648)

3,082

(165)

2,935

(554)

2,381

(115)

–

(40)

2,244

2,255

106

490

–

445

3,900

3,595

2,747

2,610

137

2,244

2,194

2,381

–

2,255

–

CSL acquired CSL Vifor in August 2022 (Note 2) and as a result the financial results represent the profit contribution from that date onward, therefore not for
a full twelve month period as with other segments.
Underlying results are adjusted to exclude impairment and amortisation of acquired IP, business acquisition and integration costs and unwind of the inventory
fair value uplift. The reconciliation between the underlying and statutory results has been disclosed.

4 NPATA is defined as the statutory net profit after tax before impairment and amortisation of acquired intellectual property, business acquisition and integration

costs and unwind of the inventory fair value uplift. The reconciliation between NPATA to the statutory NPAT has been disclosed.
The amortisation of acquired IP for the year ended 30 June 2023 is attributable to CSL Vifor ($229m) and CSL Behring ($6m), of which $181m is attributable
to CSL Limited shareholders. Amortisation and impairment of commercialised IP and in-development IP is reported within cost of sales and research and
development expenses respectively within the statutory consolidated statement of comprehensive income and is excluded from underlying results.
The unwind of the inventory fair value uplift represents the purchase price allocation adjustment recognised upon the acquisition of CSL Vifor. The unwind
is reported within cost of sales within the statutory consolidated statement of comprehensive income and is excluded from underlying results. The inventory
fair value uplift recognised on the date of acquisition ($200m) has been substantially unwound during the year ended 30 June 2023 ($169m, of which $122m
is attributable to CSL Limited shareholders).

7 The acquisition and integration costs are associated with the acquisition of CSL Vifor (Note 2).
8 EBITDA is defined as statutory net profit for the period before interest, tax, depreciation, amortisation and impairment for the respective operating segment

where activities, assets and liabilities can be directly attributed to the segment. Results related to the groups centrally managed functions, impairment and
amortisation of acquired IP, business acquisition related costs, tax and net finance costs are not allocated to segments. The total unallocated costs at an EBITDA
level were $2,279m for the year ended 30 June 2023 (2022: $1,552m). The unallocated depreciation, amortisation and impairment expenses (including acquired
IP amortisation and impairment) were $448m for the year ended 30 June 2023 (2022: $407m, which included the impairment of Calimmune related in-
development IP of $113m).

119

CSL Limited Annual Report 2022/23Note 1: Segment Information continued

Reconciliation of statutory results to underlying results

Year ended
30 June (US$m)

Statutory results

Adjustments

Underlying results3

2023

2022

2023

2022

2023

2022

Nature of adjustments

Gross profit

6,844

5,732

406

7,250

5,734 • $235m (2022: $2m) amortisation of acquired IP
(commercialised) of which $181m is attributable
to CSL Limited shareholders (2022: $2m)5

• $169m (2022: nil) unwind of inventory fair value

uplift of which $122m is attributable to CSL
Limited shareholders (2022: nil)6

• $2m (2022: nil) acquisition and integration costs
attributable to the CSL Limited shareholders

Operating profit

3,069

2,927

588

155

3,657

3,082 Consistent with adjustments to gross profit

coupled with the following:

• Impairment of acquired IP (in development).
Adjustments were nil for 2023 (2022: $113m
attributable to CSL Limited shareholders)5

• $182m (2022: $40m) acquisition and integration
costs attributable to CSL Limited shareholders7

Profit before tax

2,663

2,780

588

155

3,251

2,935

• Consistent with adjustments made to

NPAT/NPATA4

2,244

2,255

503

126

2,747

2,381

2,194

2,255

416

126

2,610

2,381

operating results

• Consistent with adjustments made to profit before
tax, net of tax impact including $71m attributable
to CSL Limited shareholders (2022: $29m)

• Share of NPATA4 adjustments attributable
to CSL Limited shareholders (after non-
controlling interests)

4.55

4.81

0.86

0.27

5.41

5.08 • Calculated based on NPATA4 attributable

to CSL Limited shareholders divided by the
weighted average number of shares during
the period (2023: 482,173,148; 2022: 468,754,857)

NPAT/NPATA4
attributable to CSL
Limited
shareholders

Basic earnings/
NPATA4 per
share (US$)

Segment assets and liabilities

Segment assets for the year ended 30 June 2023 include goodwill acquired in connection with the acquisition of CSL Vifor
which has been allocated across the Group’s segments (Note 2).

CSL Behring
US$m

2023

2022

Segment assets

34,535

25,882

Segment liabilities

15,782

12,665

2023

5,908

3,696

2022

3,041

1,618

10,742

2,155

CSL Seqirus
US$m

CSL Vifor
US$m

Intersegment
Elimination
US$m

Consolidated Entity
US$m

2023

2022

2023

2022

2023

2022

Other segment information – capital expenditure

Cash payments for
property, plant and
equipment (PPE)

Cash payments
for intangibles

Total capital
expenditure9

869

921

326

158

162

952

1,083

292

618

165

122

–

(14,951)

(577)

36,234

28,346

(3,225)

(514)

18,408

13,769

–

1,228

1,079

464

169

1,692

1,248

9 Capital expenditure excludes PPE and intangible assets acquired in connection with the acquisition of CSL Vifor (Note 2).

120

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 1: Segment Information continued

Geographical areas of operation

The Group operates predominantly in Australia, the United States, Germany, the United Kingdom, Switzerland and China. The
rest of the Group’s operations are spread across many countries and are collectively disclosed as ‘Rest of World’. Inter-segment
sales are carried out on an arm’s length basis and reflect current market prices.

Australia
US$m

United States
US$m

Germany
US$m

UK
US$m

Switzerland
US$m

China
US$m

Rest of World
US$m

Total
US$m

Geographic areas

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

External operating
revenue

PPE, right-of-use
assets and
intangible assets
(excluding goodwill)

1,045 1,022 6,563 5,124

869

781

717

596

488

281

779

745 2,849 2,013 13,310 10,562

1,918 1,374 4,284 3,825 1,273 1,232

329

331 9,478 2,568

357

345 17,719 9,760

Note 2: Business Combinations

The Group completed the acquisition of CSL Vifor on 9 August 2022 and paid $11,665m for 100% of CSL Vifor shares (includes
shares acquired in the prior year ended 30 June 2022). The Group delisted Vifor Pharma Ltd from the Swiss Stock Exchange
effective 23 December 2022.

The acquisition has been accounted for as a business combination using the acquisition method of accounting in accordance
with AASB 3 ‘Business Combinations’ and consequently the CSL Vifor assets acquired, and liabilities assumed, have been
recorded at fair value, with any excess of the purchase price over the fair value of the identifiable assets and liabilities being
recognised as goodwill. The purchase price allocation was finalised during the year ended 30 June 2023. The purchase
consideration, and fair values of the net assets acquired and goodwill at the date of acquisition are as follows:

Fair value as at the date of acquisition

Cash and cash equivalents

Receivables and contract assets (note a)

Inventories (note b)

Current tax assets

Property, plant and equipment (note c)

Right-of-use assets

Intangible assets excluding goodwill (note e)

Deferred tax assets (note i)

Other financial assets (note d)

Trade and other payables

Interest bearing liabilities and borrowings

Current tax liabilities

Provisions (note f)

Deferred tax liabilities (note i)

Net identifiable assets acquired

Less: Non-controlling interests (NCI) (note g)

Add: Goodwill (note h)

Fair value of net assets acquired

Consideration paid in the prior year ended 30 June 2022

Consideration paid in the year ended 30 June 2023

Total purchase consideration

US$m

743

527

459

179

6,706

101

525

(488)

(630)

(59)

(434)

(759)

6,917

(2,144)

6,892

11,665

388

11,277

11,665

121

CSL Limited Annual Report 2022/23Note 2: Business Combinations continued

Key Judgements and Estimates

As part of the CSL Vifor acquisition in the year ended 30 June 2023, the Group identified the assets (comprising
principally launched products and post pre-clinical stage) and liabilities acquired. Attributing fair values to assets
acquired and liabilities assumed as part of business combinations is considered to be a key judgement. The purchase
price allocation was performed with assistance from an independent valuer to advise on the valuation techniques and
key assumptions in the valuation, in particular in respect of the valuation of the intangible assets and inventory.

(a) Acquired trade receivables

The fair value of acquired trade receivables is $422m, which approximates the gross contractual amount for trade
receivables due.

(b) Inventories

The fair value of inventories, which includes raw materials, work in progress and finished goods related to the launched
products was estimated at $459m. Acquired inventories includes a fair value adjustment related to work in progress and
finished goods and was calculated as the estimated selling price less costs to complete and sell the inventory, associated
margins on these activities and holding costs.

Property, plant and equipment principally comprises manufacturing facilities and office space. Property, plant and equipment
was fair valued using a market approach.

(d) Other financial assets

Other financial assets principally comprises investments in publicly traded securities (carried at fair value through OCI ‘FVTOCI’)
and venture funds (carried at fair value through the profit or loss ‘FVTPL’). Valuation methods and assumptions used have been
disclosed in Note 11(e).

(e) Intangible assets (excluding goodwill)

The fair value and useful lives of intangible assets at the date of acquisition were as follows:

Fair value as at the date of acquisition

Commercialised products

Products in development

Other intangible assets (software, brand name and customer assets)

Total intangible assets (excluding goodwill)

Product related intangible assets are fair valued using the
multi-period excess earnings method, which uses a number
of estimates regarding the amount and timing of future cash
flows. The key assumptions in the cash flows are sales forecast,
peak year sales, revenue erosion curves and probability of
success. Future milestones have been included in the valuation
of product related intangibles (as a deduction of cash flows).

US$m

Useful lives (years)

6,494

115

6,706

19 – 30

Not amortised

5 – 20

(f) Provisions (including recognised contingent liabilities)

Provisions assumed include provisions for employee benefits,
asset retirement obligations and onerous contracts. Provisions
also include the estimated fair value of potential contingent
liabilities assumed on acquisition date relating to various
claims and disputes with third parties in each case where
there is a possible, but not probable, future financial exposure,
and involve an assessment of the likelihood of several scenarios
in relation to those matters.

122

Notes to the Financial StatementsCSL Limited Annual Report 2022/23
Note 2: Business Combinations continued

Key Judgements and Estimates

A contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by
occurrence or non-occurrence of uncertain future events not wholly within the control of the Group. A contingent
liability may also be a present obligation arising from past events but is not recognised on the basis that a future
settlement of economic benefits is not probable. If the expected settlement of the liability becomes probable, a provision
is recognised. The outcomes of litigation are inherently difficult to predict, and judgement has been applied in assessing
the likely outcome of legal claims and determining which claims require recognition of a provision or disclosure of a
contingent liability.

Contingent liabilities are recognised at fair value within provisions on acquisition date in connection with a business
combination after consideration of a range of possible outcomes unless the economic outflows are not possible. A
number of pending legal matters have been identified from the acquisition of CSL Vifor, which include matters relating
to intellectual property, contractor, competitor and regulatory disputes, product liability claims and various other matters.

Management has recorded such contingent liabilities at fair value on the date of the Vifor acquisition, which requires
the use of significant judgements, estimates and assumptions and is subject to uncertainty. The key estimates that may
have a significant impact on the estimated contingent liability in the future reporting periods include the timing and
final amounts of any payments. These uncertainties can also cause reversals in previously recognised liabilities once final
settlement is reached.

(g) Non-controlling interests

(i) Deferred tax

The net deferred tax liability recognised of $658m principally
related to the deferred tax impact of the fair value uplifts on
intangible assets, inventories, property, plant and equipment
and recognised contingent liabilities.

(j) Revenue and profit contribution

CSL Vifor contributed revenues of $1,989m and segment
contribution of $921m to the Group for the period from
9 August 2022 to 30 June 2023. If the acquisition had occurred
on 1 July 2022, consolidated pro-forma revenue and segment
contribution for the year ended 30 June 2023 would have
been $2,126m and $1,045m respectively.

(k) Acquisition and integration costs

During the year ended 30 June 2023, the Group has incurred
$184m of acquisition and integration planning costs (pre-tax)
in connection with the transaction that are primarily recognised
as general and administrative expenses.

In connection with the acquisition of CSL Vifor, the Group
acquired 55% of the share capital and voting rights of Vifor
Fresenius Medical Care Renal Pharma (VFMCRP). For the
non-controlling interests in VFMCRP, the Group elected to
recognise the non-controlling interests at its fair value on
acquisition date. The fair value was estimated by applying an
income approach. The fair value estimates are based on an
assumed discount rate, long-term sustainable growth rate
and a control premium discount.

Further detail on the Group’s non-controlling interests are
disclosed in Note 23.

(h) Goodwill

Where the fair value of the consideration paid for a business
acquisition exceeds the fair value of the identifiable assets,
liabilities and contingent liabilities acquired, the difference is
treated as goodwill. The goodwill is attributable to future
business growth opportunities, an assembled workforce and
synergies expected to be realised from the Group’s
acquisition of CSL Vifor.

The acquisition of CSL Vifor resulted in the recognition of
goodwill of $6,892m. Goodwill has been allocated to each
of the relevant cash generating units (CGUs) which are
expected to realise the synergies from the acquisition.
The recoverability of goodwill is monitored at the segment
(business unit) level, represented by CSL Behring ($4,281m),
CSL Seqirus ($911m) and CSL Vifor ($1,700m).

123

CSL Limited Annual Report 2022/23Note 3: Revenue and Expenses

Recognition and measurement of revenue and other income

Revenue is recognised when the Group satisfies a performance obligation by transferring control of the promised good or
service to a customer at an amount that reflects the consideration to which an entity expects to be entitled in exchange for
the goods or services. Revenue from contracts with customers includes amounts in total operating revenue. Further
information about each source of revenue from contracts with customers and the revenue recognition criteria follows.

Sales: Revenue is earned (constrained by variable considerations, which include returns, discounts, rebates and allowances)
from the sale of products and services. Sales are recognised when performance obligations are either satisfied over time
or at a point in time. Generally the supply of product under a contract with a customer will represent the satisfaction of a
performance obligation at a point in time, which is when control of the product passes to the customer.

Key Judgements and Estimates

Significant estimates on CSL Seqirus sales returns is performed in respect of the influenza season expected to be subject
to return. The estimate is performed with inputs including historical returns and customer sales data amongst other
factors. With respect to CSL Behring, for contracts where the customer controls the plasma (tolling contracts) and the
Group provides fractionation services, the Group recognises revenue over time as the performance obligations are
satisfied based upon a percentage of completion of our fractionation services.

Royalties: Revenue from licensees of CSL intellectual property reflect a right to use the intellectual property as it exists at the
point in time in which the licence is granted. Where consideration is based on sales of product by the licensee, it is recognised
when the customer’s subsequent sales of product occurs.

License revenue: Revenue from licensees of CSL intellectual property reflects the transfer of a right to use the intellectual
property as it exists at the point in time in which the licence is transferred to the customer. Consideration is highly variable
and estimated using the most likely amount method. Subsequently, the estimate is constrained until it is highly probable
that a significant revenue reversal will not occur when the uncertainty is resolved. Revenue is recognised as or when the
performance obligations are satisfied.

Influenza pandemic facility reservation fees: Revenue from governments in return for access to influenza manufacturing
facilities in the event of a pandemic. Contracts are time-based and revenue is recognised progressively over the life of the
relevant contract, which aligns to the performance obligations being satisfied.

Other income: Other income is realised from activities that are outside of the ordinary business, such as the disposal
of property, plant and equipment and rental income.

Revenue from contracts with customers includes amounts in total operating revenue except other income.

124

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 3: Revenue and Expenses continued

The table below shows a summary of the Group’s operating revenue by product or service category for the years 30 June 2023
and 30 June 2022:

2023
US$m

2022
US$m

Revenue

CSL Behring

Immunoglobulins

Albumin

Haemophilia

Specialty

Other

CSL Seqirus

Egg based vaccines

Cell culture vaccines

Adjuvanted egg based vaccines

Pandemic

Other (including in-license)

CSL Vifor

Iron

Nephrology – Dialysis

Nephrology – Non Dialysis

Other

Total revenue from contracts with customers

Other income

Total operating revenue

Expenses

Borrowing costs

Lease related interest expense

Unrealised foreign currency losses/(gains) on debt

Fair value losses on financial assets

Total finance costs

Depreciation of property, plant and equipment (PPE) and right-of-use assets

Amortisation of intangibles

Impairment expense

Total depreciation, amortisation and impairment expense

Write-down of inventory

Employee benefits expense

Foreign exchange currency losses/(gains)10

4,675

1,109

1,193

1,831

375

148

599

893

156

211

1,009

771

136

13,174

136

13,310

2023
US$m

374

444

490

341

–

831

182

3,513

127

4,024

1,072

1,166

1,792

500

228

486

885

162

178

–

10,493

10,562

2022
US$m

143

(13)

–

165

445

126

668

224

2,804

(58)

125

10 Foreign exchange currency losses/(gains) are recorded net within administration expenses in the statement of comprehensive income.

CSL Limited Annual Report 2022/23Note 3: Revenue and Expenses continued

Recognition and measurement of expenses

Total finance costs: Includes borrowing costs primarily related to interest expense net of a $14m gain reclassified to the profit
and loss (2022: $1m) in connection with Group’s treasury lock arrangement and lease related interest expense. Lease related
interest expense and borrowing costs are recognised as an expense when incurred, except where finance costs are directly
attributable to the acquisition or construction of a qualifying asset where they are capitalised as part of the cost of the asset.
Capitalised interest for qualifying assets during the year ended 30 June 2023 was $61m (2022: $27m). The weighted average
interest rate applicable to capitalised borrowing costs during the year was 3.4% (2022: 2.4%). Any difference between borrowing
proceeds (net of transaction costs) and the redemption value is recognised in the statement of comprehensive income using
the effective interest method.

Unrealised foreign currency losses/(gains) on debt is principally related to the Group’s EUR250m and CHF400m senior
unsecured notes in the US Private Placement market. The foreign currency risk related to this debt was partially hedged
as a cash flow hedge.

Fair value losses on financial assets primarily relates to the Group’s investments in venture funds measured at fair value through
profit or loss (Note 11(e)). The resulting changes in fair value are recognised directly in profit or loss within finance costs at each
reporting period.

Goods and Services Tax (GST) and other foreign equivalents: Amounts are recognised net of GST, except where GST is not
recoverable from a taxation authority, in which case it is recognised as part of an asset’s cost or expense.

126

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 4: Tax

a. Income tax expense recognised in the statement of comprehensive income

Current tax expense

Current year

Deferred tax (recovery)/expense

Origination and reversal of temporary differences

Total deferred tax (recovery)/expense

Over provided in prior years

Income tax expense

b. Reconciliation between tax expense and pre-tax net profit

Accounting profit before income tax

Income tax calculated at 30% (2022: 30%)

Effects of different rates of tax on overseas income

Research and development incentives

Over provision in prior year

Revaluation of deferred tax balances

Other (non-assessable income)/non-deductible expenses

Income tax expense

Income tax recognised directly in equity

Share-based payments

Income tax benefit recognised in equity

d. Deferred tax assets and liabilities

Deferred tax asset

Deferred tax liability

Net deferred tax liability

The composition of the Group’s net deferred tax assets and liabilities are attributable to:

Inventories

Property, plant and equipment

Intangible assets

Trade and other payables

Recognised carry-forward tax losses

Retirement liabilities, net

Receivables and contract assets

Interest-bearing liabilities

Provisions and other liabilities

Other

Net deferred tax liability

e. Movement in net deferred tax liability during the year

Opening balance

Net deferred tax liabilities recognised on acquisition of CSL Vifor (Note 2)

Credit/(charged) to profit before tax

Charged to other comprehensive income (OCI)

Credit/(charged) to equity

Closing balance

2023
US$m

2022
US$m

648

354

(209)

(20)

419

2,663

799

(282)

(74)

(20)

(27)

419

902

(1,464)

(562)

326

(405)

(1,006)

124

213

(3)

223

(52)

525

2,780

834

(247)

(63)

(52)

525

–

518

(670)

(152)

135

(352)

(215)

160

(98)

(562)

(152)

(658)

237

(17)

(562)

–

(212)

–

(10)

(152)

127

CSL Limited Annual Report 2022/23Note 4: Tax continued

Current taxes

Current tax assets and liabilities are the amounts expected to
be recovered from (or paid to) tax authorities, under the tax
rates and laws in each jurisdiction. These include any rates or
laws that are enacted or substantively enacted as at the
balance sheet date.

Deferred taxes

Deferred tax liabilities are recognised for taxable temporary
differences. Deferred tax assets are recognised for deductible
temporary differences, carried forward unused tax assets and
unused tax losses, only if it is probable that taxable profit will
be available to utilise them.

The carrying amount of deferred income tax assets is
reviewed at the reporting date. If it is no longer probable that
taxable profit will be available to utilise them, they are
reduced accordingly.

Deferred tax is measured using tax rates and laws that are
enacted at the reporting date and are expected to apply
when the related deferred income tax asset is realised or
when the deferred income tax liability is settled.

Deferred tax assets and liabilities are offset only if a legally
enforceable right exists to set-off current tax assets against
current tax liabilities and if they relate to the same taxable
entity or group and the same taxation authority.

Income taxes attributable to amounts recognised in OCI or
directly in equity are also recognised in OCI or in equity, and
not in the consolidated income statement.

CSL Limited and its 100% owned Australian subsidiaries have
formed a tax consolidated group effective from 1 July 2003.

Key Judgements and Estimates

The risk of uncertain tax positions, and recognition and recoverability of deferred tax assets, are regularly assessed. To
do this requires judgements about the application of income tax legislation in jurisdictions in which the Group operates
and the future operating performance of entities with carry forward losses. These judgements and assumptions, which
include matters such as the availability and timing of tax deductions and the application of the arm’s length principle
to related party transactions, are subject to risk and uncertainty. Changes in circumstances may alter expectations and
affect the carrying amount of deferred tax assets and liabilities. Any resulting adjustment to the carrying value of a
deferred tax item will be recorded as a credit or charge to the statement of comprehensive income.

128

Notes to the Financial StatementsCSL Limited Annual Report 2022/23 Note 5: Inventories

Raw materials

Work in progress

Finished goods

Total inventories

Raw Materials

Raw materials comprise collected and purchased plasma,
chemicals, filters and other inputs to production that will
be further processed into saleable products but have yet
to be allocated to manufacturing.

Work in Progress

Work in progress comprises all inventory items that are
currently in use in manufacturing and intermediate products
such as pastes generated from the initial stages of the
plasma production process.

Finished Products

Finished products comprise material that is ready for sale
and has passed all quality control tests.

2023
US$m

1,592

2,119

1,755

5,466

2022
US$m

1,515

1,600

1,218

4,333

Inventories generally have expiry dates and the Group
provides for product that is short-dated. Expiry dates for
raw material are no longer relevant once the materials are
used in production. The relevant expiry date at this point then
becomes that of the resultant intermediate or finished product.

Inventories are carried at the lower of cost or net realisable
value. Cost includes direct material and labour and an
appropriate proportion of variable and fixed overheads.
Fixed overheads are allocated on the basis of normal
operating capacity.

Net realisable value is the estimated revenue that can be
earned from the sale of a product less the estimated costs
of both completion and selling.

The Group assesses net realisable value of plasma derived
products on a basket of products basis given their joint
product nature.

Key Judgements and Estimates

Various factors affect the assessment of recoverability of the carrying value of inventory, including regulatory approvals
and future demand for the Group’s products. These factors are taken into account in determining the appropriate level
of provisioning for inventory.

129

CSL Limited Annual Report 2022/23Note 6: People Costs

(a) Employee Benefits

Employee benefits include salaries and wages, annual leave and long-service leave, defined benefit and defined contribution
plans and share-based payments incentive awards.

People Cost 2023 – US$3,513m

People Cost 2022 – US$2,804m

Salaries and wages $3,265m

Deﬁned beneﬁt plan expense $55m

Deﬁned contribution plan expense $54m

Salaries and wages $2,597m

Deﬁned beneﬁt plan expense $42m

Deﬁned contribution plan expense $48m

Equity settled share-based payments expense (LTI) $139m

Equity settled share-based payments expense (LTI) $117m

Salaries and wages

Wages and salaries include non-monetary benefits, annual
leave and long service leave. These are recognised and
presented in different ways in the financial statements:

• The liability for annual leave and the portion of long service

leave that has vested at the reporting date is included in the
current provision for employee benefits.

• The liability for annual leave and the portion of long service

leave expected to be paid within twelve months is measured
at the amount expected to be paid.

• The liability for long service leave and annual leave expected
to be paid after one year is measured as the present value of
expected future payments to be made in respect of services
provided by employees up to the reporting date.

• The portion of long service leave that has not vested at the
reporting date is included in the non-current provision for
employee benefits.

130

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 6: People Costs continued

Defined benefit plans

Expenses recognised in the statement of comprehensive income are as follows:

Current service costs

Net interest cost

Past service costs

Total included in employee benefits expense

2023
US$m

2022
US$m

–

(3)

Defined benefit pension plans provide either a defined lump
sum or ongoing pension benefits for employees upon
retirement, based on years of service and final average salary.

Liabilities or assets in relation to these plans are recognised
in the balance sheet, measured as the present value of the
obligation less the fair value of the pension fund’s assets at
that date.

Present value is based on expected future payments to the
reporting date, calculated by independent actuaries using
the projected unit credit method. Past service costs are
recognised in statement of comprehensive income on the
earlier of the date of plan amendments or curtailment, and
the date that the Group recognises restructuring related costs.

Detailed information about the Group’s defined benefit plans
is in Note 18(a).

Key Judgements and Estimates

The determination of certain employee benefit liabilities requires an estimation of future employee service periods
and salary levels and the timing of benefit payments. These assessments are made based on past experience and
anticipated future trends. The expected future payments are discounted using the rate applicable to high quality
corporate bonds. Discount rates are matched to the expected payment dates of the liabilities.

Defined contribution plans

Equity settled share-based payment expense

The Group makes contributions to various defined contribution
pension plans and the Group’s obligation is limited to these
contributions. The amount recognised as an expense for the
year ended 30 June 2023 was $54m (2022: $48m).

Share-based payment expenses arise from plans that award
long-term incentives. Detailed information about the terms
and conditions of the share-based payment arrangements is
presented in Note 18(b).

131

CSL Limited Annual Report 2022/23Note 6: People Costs continued

Outstanding share-based payment equity instruments

The number and weighted average exercise price for each share-based payment plan outstanding is as follows. All plans are
settled by physical delivery of shares at the time of vesting date except for instruments that may be settled in cash at the
discretion of the Board.

Retain and
Grow Plan (RGP)

Executive Performance
and Alignment
Plan (EPA)

Non-Executive
Director Plan (NED)

Global Employee
Share Plan (GESP)

Total

Outstanding at the
beginning of the year

Number

930,579

Granted during year

902,407

Exercised during year11

(398,775)

Forfeited during year

(96,314)

GESP true-up12

Closing balance at
the end of the year

–

1,337,897

Weighted
average
exercise
price (A$)

–

Number

404,108

216,255

(68,052)

(61,413)

–

490,898

Weighted
average
exercise
price (A$)

–

Number

1,253

3,135

(2,822)

–

1,566

Weighted
average
exercise
price (A$)

Number

–

98,752

221.94

1,434,692

263,809

242.60

1,385,606

(210,903)

238.70

(680,552)

–

(157,727)

(8,705)

221.94

(8,705)

142,953

236.55

1,973,314

The share price at the dates of exercise (expressed as a weighted average) by equity instrument type, is as follows:

RGP

EPA

NED

GESP

2023

2022

A$295.73

A$308.97

A$295.99

A$309.08

A$296.74

A$281.18

A$293.98

A$303.87

(b) Key Management Personnel Disclosures

The remuneration of key management personnel is disclosed in Section 17 of the Directors’ Report and has been audited.

Total compensation for key management personnel

Total of short term remuneration elements

Total of post employment elements

Total of other long term elements

Total share-based payments

Total of all remuneration elements

2023
US$

2022
US$

8,849,461

10,880,861

342,883

21,242

180,451

24,438

5,217,940

10,229,740

14,431,526

21,315,490

During the year ended 30 June 2023, 14,721 (RGP) and 14 (GESP) of the rights exercised were issued out of treasury stock that was purchased on-market in the
prior year. For the NED Rights Plan, all shares are purchased on-market.

12 The fair value of GESP equity instruments is estimated based on the assumptions prevailing on the grant date. In accordance with the terms and conditions

of the GESP plan, shares are issued at 15% discount to the lower of the ASX market price on the first and last dates of the contribution period.

132

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Our Future

Note 7: Research and Development

The Group conducts research and development activities to support future development of products to serve our patient
communities, to enhance our existing products and to develop new therapies. All costs associated with our research and
development activities are expensed as incurred as uncertainty exists up until the point of regulatory approval as to whether
a research and development project will be successful. Development costs incurred after regulatory approval are expensed
unless it meets the criteria to be recognised as an intangible asset.

The Group also gains control of intellectual property (IP) through acquisitions or license arrangements which are capitalised
as intangible assets (Note 8).

For the year ended 30 June 2023, research and development costs recognised in the statement of comprehensive income,
were $1,235m (2022: $1,156m).

Note 8: Intangible Assets

Net carrying amount

8,079

1,187

7,821

Goodwill
US$m

Intellectual
property and other
intangible assets
US$m

Software
US$m

Intangible work
in progress
US$m

Total
US$m

2023

8,079

2022

1,187

2023

8,379

2022

1,133

2023

833

2022

786

2023

193

2022

2023

120

17,484

2022

3,226

–

(558)

(190)

(480)

(398)

1,187

1,188

–

6,892

–

(1)

943

452

6,660

–

(235)

–

943

936

126

–

(2)

(113)

(4)

353

388

(106)

–

388

469

–

(95)

–

(17)

–

193

120

–

(1,038)

(588)

120

16,446

2,638

2,671

543

197

–

13,598

(19)

(24)

–

(341)

–

(97)

(113)

(20)

8,079

1,187

7,821

943

353

388

193

120

16,446

2,638

Year

Cost

Accumulated
amortisation

Net carrying amount at
the beginning of the year

Additions13

Acquisition of CSL Vifor
(Note 2)

Transfers

Amortisation for the year

Impairment for the year

Currency translation
differences

Net carrying amount
at the end of the year

13 Key additions during the year includes development milestones paid in connection with the Group’s licensing arrangements including

with Arcturus Therapeutics Holdings Inc (‘Arcturus Therapeutics’) (Note 13) and the launch of Hemgenix.

133

CSL Limited Annual Report 2022/23Note 8: Intangible Assets continued

Goodwill

Any excess of the fair value of the purchase consideration of an acquired business over the fair value of the identifiable net
assets is recorded as goodwill. During the year ended 30 June 2023, the Group acquired CSL Vifor resulting in the recognition
of goodwill valued on acquisition date of $6,892m. Goodwill is initially allocated to a group of cash-generating units but is
monitored at the segment (business unit) level. Goodwill acquired during the year ended 30 June 2023 relates to the acquisition
of CSL Vifor (Note 2). The aggregate carrying amounts of goodwill by segment are as follows:

CSL Behring

CSL Seqirus

CSL Vifor

Closing balance of goodwill as at 30 June

Goodwill is not amortised but is measured at cost less any
accumulated impairment losses. Impairment occurs when
a business unit’s recoverable amount falls below the carrying
value of its net assets. The results of the impairment test show
that each business unit’s recoverable amount exceeds the
carrying value of its net assets, inclusive of goodwill. Consequently,
there is no goodwill impairment as at 30 June 2023 (2022: Nil).
A change in assumptions significant enough to lead to
impairment is not considered a reasonable possibility.

Intellectual property

Intellectual property acquired in a business combination is
initially measured at fair value. Intellectual property internally
developed or acquired separately is initially measured at cost.
Following initial recognition, it is carried at cost less any
accumulated amortisation and impairment. Amortisation is
calculated on a unit-of-production or straight-line basis over
periods generally ranging from 5 to 30 years, except where
it is considered that the useful economic life is indefinite.
Certain intellectual property acquired may be considered
to have an indefinite life.

Contingent consideration in connection with the purchase
of individual assets outside of business combinations is
recognised as a financial liability only when a non-contingent
obligation arises (i.e. when milestone is met). The determination
of whether the payment should be capitalised or expensed
is usually based on the substance of the contingent payment
and whether it is expected to give rise to future economic
benefits that will flow to the Group. If the milestones paid are
for regulatory approval and a sales target, they are likely to
meet the capitalisation criteria, and would be accumulated
into the cost of the intangible.

Changes in the fair value of financial liabilities from
contingent consideration should be capitalised or expensed
based on the nature of the asset acquired (refer above),
except for changes due to interest rate fluctuations and the
effect from unwinding discounts. Interest rate effects from
unwinding of discounts as well as changes due to interest
rate fluctuations are recognised as finance costs.

2023
US$m

5,468

911

1,700

8,079

2022
US$m

1,187

–

1,187

Software

Costs incurred in developing or acquiring software, licences
or systems that will contribute future financial benefits are
capitalised. These include external direct costs of materials
and service and direct payroll and payroll related costs of
employees’ time spent on the project. Amortisation is
calculated on a straight-line basis over periods generally
ranging from 3 to 10 years. IT development costs include only
those costs directly attributable to the development phase
and are only recognised following completion of technical
feasibility, where the Group has the intention and ability
to use the asset.

Software-as-a-Service (SaaS) arrangements

SaaS arrangements are service contracts providing the Group
with the right to access the cloud provider’s application
software over the contract period. The Group applies
judgement in determining the nature and the resulting
accounting treatment of the costs of SaaS arrangements.

Costs incurred to configure or customise, and the ongoing
fees to obtain access to the cloud provider’s application
software, are recognised as operating expenses when the
services are received. Some of these costs incurred are for
the development of software code that enhances or
modifies, or creates additional capability to, existing on-
premise systems and meets the definition of and recognition
criteria for an intangible asset. These costs are recognised as
intangible software assets and amortised over the useful life
of the software.

Recognition and measurement

The useful lives of intangible assets are assessed to be either
finite or indefinite. Intangible assets with finite lives are
amortised over the useful life of the asset on a straight-line
or unit-of-production basis. Significant software intangible
assets are amortised over the useful life of up to ten years. The
amortisation period and method is reviewed at each financial
year end at a minimum. Intangible assets with indefinite useful
lives are not amortised. The useful life of these intangibles
is reviewed each reporting period to determine whether
indefinite life assessment continues to be supportable.

134

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 8: Intangible Assets continued

Impairment of intangible assets

Assets with finite lives are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying
amount may not be recoverable. Intangible assets that have
an indefinite useful life (including goodwill) or not yet ready
for use are tested annually for impairment or more frequently
if events or changes in circumstances indicate that they may
be impaired.

An impairment loss is recognised in the statement of
comprehensive income for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less

costs to sell and value in use. For the purpose of assessing
impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows (cash
generating units), other than goodwill that is monitored
at the segment level.

Impairment losses recognised in respect of cash generating
units are allocated first to reduce the carrying amount of
any goodwill allocated to cash generating units, and then
to reduce the carrying amount of the other assets in the
unit on a pro-rata basis.

Key Judgements and Estimates

The Group’s impairment assessment requires significant judgement. Determining whether goodwill, indefinite lived
intangibles and in development intangibles have been impaired requires estimation of the recoverable amount of cash
generating units based on value-in-use calculations. The calculations use cash flow projections based on operating
budgets and a ten-year strategic business plan, after which a terminal value, based on our view of the longer term
growth profile of the business unit is applied. Cash flows have been discounted using an implied pre-tax discount
rate of 9.4% (2022: 9.0%) which is calculated with reference to external analyst views, long-term government bond
rates and the Group’s pre-tax cost of debt.

The determination of cash flows over the life of an asset requires judgement in assessing the future demand for the
Group’s products, climate related impacts, any changes in the price and cost of those products and of other costs
incurred by the Group.

Factors considered in the exercise of our judgement include the progress of the research project, time to market and the
anticipated competitive landscape. These factors require judgement and may change in future periods, the impairment
analysis takes into account the latest available information.

135

CSL Limited Annual Report 2022/23Note 9: Property, Plant and Equipment

Cost

Accumulated depreciation

Net carrying amount

Movement

Net carrying amount at the start
of the year

Transfers

Additions14

Acquisition of CSL Vifor (Note 2)

Disposals

Depreciation for the year

Impairment for the year

Currency translation differences

Net carrying amount at the end
of the year

Land
US$m

2023

2022

–

(13)

–

(4)

–

Buildings
US$m

Leasehold improvements
US$m

Plant and Equipment

Right-of-use assets

Capital work in progress

US$m

Total

US$m

2023

2,284

(305)

1,979

1,522

502

(31)

(61)

–

(11)

2022

1,819

(297)

1,522

711

879

–

(2)

(51)

–

(17)

2023

666

(206)

460

415

(9)

(30)

–

1,979

1,522

460

2022

597

(182)

415

389

–

(27)

–

(4)

415

2023

4,900

(2,378)

2,522

1,962

789

(11)

(297)

–

(13)

2,522

2022

4,078

(2,116)

1,962

1,667

615

–

(4)

(277)

(48)

1,962

1,292

1,102

8,309

7,537

2023

2,134

(579)

1,555

–

372

(26)

(102)

–

(21)

1,555

2022

1,849

(557)

1,292

301

–

(90)

(21)

1,292

2023

2,771

–

2,771

3,082

(1,370)

1,065

–

(24)

2,771

2022

3,082

–

3,082

3,628

(1,550)

1,084

(2)

–

(13)

(65)

2023

12,820

(3,468)

9,352

–

1,472

219

(90)

(490)

–

(68)

2022

11,461

(3,152)

8,309

1,397

–

(12)

(445)

(13)

(155)

3,082

9,352

8,309

Assets’ residual values and useful lives are reviewed and
adjusted if appropriate at each reporting date. Items of
property, plant and equipment are derecognised upon
disposal or when no further economic benefits are expected
from their use or disposal.

Impairment testing for property, plant and equipment
will be performed if an impairment trigger is identified.

Gains and losses on disposals of items of property, plant and
equipment are determined by comparing proceeds with
carrying amounts and are included in the statement of
comprehensive income when realised.

Leasehold improvements

The cost of improvements to leasehold properties is amortised
over the unexpired period of the lease or the estimated useful
life of the improvement, whichever is the shorter.

Property, plant and equipment

Land, buildings, capital work in progress and plant and
equipment assets are recorded at historical cost less, where
applicable, depreciation.

Right-of-use assets are measured at cost, less accumulated
depreciation, impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities and restoration
obligations recognised less any lease incentives received and
initial direct costs.

Depreciation is recognised on a systematic basis over
the estimated useful life of the asset, generally on
a straight-line basis.

Buildings

5 – 50 years

Plant and equipment

3 – 40 years

Leasehold improvements

3 – 25 years

Right-of-use assets

– Plasma centres

5 – 40 years

– Office and warehouses

1 – 39 years

– Land

40 – 101 years

The unit-of-production depreciation method, based on the
expected use or output as the asset is being used, may be
applied during the early stages of operation of manufacturing
facilities, as a substantial period of time may be required to
ramp up the production and operate at intended capacity.
This method is to be applied consistently from period to
period unless there is a change in the expected pattern
of consumption of those future economic benefits.

14 Key capital investments made during the year includes the CSL Melbourne Headquarters, a new cell-based influenza vaccine manufacturing facility in

Tullamarine, Australia, continued investment in the Group’s R&D facilities including in Marburg, Germany and Waltham, United States and new plasma centres.

136

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Land

US$m

2023

2022

–

(13)

–

(4)

–

2023

2,284

(305)

1,979

1,522

502

(31)

(61)

–

(11)

2022

1,819

(297)

1,522

711

879

–

(2)

(51)

–

(17)

2023

666

(206)

460

415

(9)

(30)

–

1,979

1,522

460

2022

597

(182)

415

389

–

(27)

(4)

415

Cost

Accumulated depreciation

Net carrying amount

Net carrying amount at the start

Movement

of the year

Transfers

Additions14

Disposals

Acquisition of CSL Vifor (Note 2)

Depreciation for the year

Impairment for the year

Currency translation differences

Net carrying amount at the end

of the year

Property, plant and equipment

Buildings

US$m

Leasehold improvements

US$m

Plant and Equipment
US$m

Right-of-use assets
US$m

Capital work in progress
US$m

Total
US$m

2023

4,900

(2,378)

2,522

1,962

789

(11)

(297)

–

(13)

2,522

2022

4,078

(2,116)

1,962

1,667

615

–

(4)

(277)

–

(48)

1,962

2023

2,134

(579)

1,555

2022

1,849

(557)

1,292

1,102

–

372

(26)

(102)

–

(21)

–

301

–

(90)

–

(21)

1,555

1,292

2023

2,771

–

2,771

3,082

(1,370)

1,065

–

(24)

2,771

2022

3,082

–

3,082

3,628

(1,550)

1,084

–

(2)

–

(13)

(65)

2023

12,820

(3,468)

9,352

8,309

–

1,472

219

(90)

(490)

–

(68)

2022

11,461

(3,152)

8,309

7,537

–

1,397

–

(12)

(445)

(13)

(155)

3,082

9,352

8,309

Right-of-use assets

The Group principally has leases for plasma centres, office
buildings, land, manufacturing facilities and warehouses.

Except for short-term leases and leases of low value assets,
the Group recognises right-of-use assets at the commencement
date of the lease (i.e., the date the underlying asset is available
for use). The Group accounting policy for lease liabilities has
been disclosed in Note 11(d).

Unless the Group is reasonably certain to obtain ownership
of the underlying asset at the end of the lease term, the
recognised right-of-use assets are depreciated on a straight-
line basis over the shorter of its estimated useful life and the
lease term.

Other arrangements

CSL has leased a recombinant protein facility in Lengnau to
Thermo Fisher Scientific (TFS), which has a 20 year term with
two five year extension options. The lease has been accounted
for as an operating lease and the leased property, plant and
equipment continue to be presented in the balance sheet.
The total future operating lease payments due from TFS
(excluding extension options and variable lease payments)
were $448m as at 30 June 2023 (2022: $454m).

137

CSL Limited Annual Report 2022/23Returns, Risk & Capital Management

Note 10: Shareholder Returns

(a) Dividends paid to CSL Limited shareholders

Dividends paid to CSL Limited shareholders are paid from the retained earnings and profits of CSL Limited, as the parent entity
of the Group (Note 22). During the year, the parent entity reported profits of $931m (2022: $507m). The parent entity’s retained
earnings as at 30 June 2023 were $6,169m (2022: $6,323m). During the financial year $1,085m was distributed to shareholders
by way of a dividend, with a further $622m being determined as a dividend payable subsequent to the balance date.

Dividend Paid to CSL Limited shareholders

Final ordinary dividend of US$1.18 per share, 10% franked at 30% tax rate, paid on 5 October 2022 for FY22
(prior year: US$1.18 per share, unfranked, paid on 30 September 2021 for FY21)

Interim ordinary dividend of US$1.07 per share, unfranked, paid on 5 April 2023 for FY23 (prior year:
US$1.04 per share, unfranked, paid on 6 April 2022 for FY22)

Total dividends paid to CSL Limited shareholders

Dividend determined, but not paid at year end to CSL Limited shareholders:

Final ordinary dividend of US$1.29 per share, 10% franked at 30% tax rate, expected to be paid
on 4 October 2023 for FY23, based on shares on issue at reporting date. The aggregate amount
of the proposed dividend will depend on actual number of shares on issue at dividend record date
(prior year: US$1.18 per share, 10% franked at 30% tax rate, paid on 5 October 2022 for FY22)

2023
US$m

2022
US$m

569

516

538

501

1,085

1,039

622

568

The distribution in respect of the 2023 financial year represents a US$2.36 dividend for FY23 on each ordinary share held.

(b) Earnings per Share attributable to CSL Limited shareholders

CSL’s basic and diluted EPS are calculated using the Group’s net profit attributable to CSL Limited shareholders for the year
of $2,194m (2022: $2,255m). Diluted EPS differs from Basic EPS as the calculation takes into account potential ordinary shares
arising from employee share plans operated by the Group.

Basic EPS

Weighted average number of ordinary shares

Diluted EPS

Adjusted weighted average number of ordinary shares, represented by:

Weighted average number of ordinary shares

Plus:

Employee Share Plans (Note 6 and 18)

2023

2022

US$4.55

US$4.81

482,173,148

468,754,857

US$4.53

US$4.80

483,886,450

470,117,188

482,173,148

468,754,857

1,713,302

1,362,331

The following table illustrates the movement in the Group’s contributed equity. Refer to Note 12 for further details.

Opening balance

Shares issued to employees (Note 6 and 18):

Performance Rights Plan (for nil consideration)

Retain and Grow Plan (for nil consideration)

Executive Performance & Alignment Plan (for nil consideration)

Global Employee Share Plan (GESP)

Shares issued through Institutional Placement

Shares issued through Share Purchase Plan

2023

2022

Number of
shares

US$m

Number of
shares

481,706,266

483

455,125,994

US$m

(4,505)

–

384,054

68,052

210,889

–

8,350

294,020

148,615

94,488

23,076,924

2,957,875

–

4,442

537

483

Closing balance

482,369,261

517

481,706,266

138

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 11: Financial Risk Management

CSL holds financial instruments that arise from the Group’s
need to access financing, from the Group’s operational
activities and as part of the Group’s risk management
activities. The Group is exposed to financial risks associated
with its financial instruments. Financial instruments comprise
cash and cash equivalents, receivables, contract assets, other
financial assets, payables and other liabilities, bank loans and
overdrafts, unsecured notes, and lease liabilities.

Source of Risk

a. Foreign Exchange Risk

The primary risks these give rise to are:

• Foreign exchange risk

• Interest rate risk

• Credit risk

• Funding and liquidity risk

• Capital management risk

Risk Mitigation

The Group is exposed to foreign exchange risk because of its
international operations. These risks relate to future commercial
transactions, assets and liabilities denominated in other
currencies and net investments in foreign operations.

Where possible CSL takes advantage of natural hedging (i.e. the
existence of payables and receivables in the same currency). The
Group also reduces its foreign exchange risk on net investments
in foreign operations by denominating external borrowings in
currencies that match the currencies of its foreign investments.

b. Interest Rate Risk

The Group is exposed to interest rate risk through its primary
financial assets and liabilities.

c. Credit Risk

The Group is exposed to credit risk from financial instruments
contracts and trade and other receivables. The maximum exposure
to credit risk at reporting date is the carrying amount, net of any
provision for impairment inclusive of any lifetime expected credit
losses under AASB 9, if applicable, of each financial asset in the
balance sheet.

The Group mitigates interest rate risk on borrowings principally
by entering into fixed rate arrangements, which are not subject
to interest rate movements in the ordinary course. If necessary,
CSL also hedges interest rate risk using derivative instruments.
As at 30 June 2023 and 2022, there were no material outstanding
derivative financial instruments hedging interest rate risks.

The Group mitigates credit risk from financial instruments
contracts by only entering into transactions with counterparties
who have sound credit ratings. Given their high credit ratings,
management does not expect any counterparty to fail to meet its
obligations. The Group minimises the credit risk associated with
trade and other debtors by undertaking transactions with a large
number of customers in various countries. The Group enters into
arrangements with distributors to sell products in some markets.
Certain distributors may contribute to 10% or more revenue of the
Group. Creditworthiness of customers is reviewed prior to granting
credit, using trade references and credit reference agencies.

d. Funding and Liquidity Risk

The Group is exposed to funding and liquidity risk from operations
and from external borrowing.

The Group mitigates funding and liquidity risks by ensuring that:

• The Group has sufficient funds on hand to achieve its working

One type of this risk is credit spread risk, which is the risk that
in refinancing its debt, CSL may be exposed to an increased
credit spread.

Another type of this risk is liquidity risk, which is the risk of not
being able to refinance debt obligations or meet other cash
outflow obligations when required.

Liquidity and re-financing risks are not significant for the Group,
as CSL has a prudent gearing level and strong cash flows.

capital and investment objectives

• The Group focuses on improving operational cash flow and

maintaining a strong balance sheet

• The Group from time to time enters into non-recourse

receivable factoring arrangements with unrelated entities
to optimise cash

• Short-term liquidity, long-term liquidity and crisis liquidity

requirements are effectively managed, minimising the cost
of funding and maximising the return on any surplus funds
through efficient cash management

• The Group has adequate flexibility to balance short-term
liquidity needs, long-term core funding and in minimise
refinancing risk

e. Capital Risk Management

The Group’s objectives when managing capital are to safeguard
its ability to continue as a going concern while providing returns
to shareholders and benefits to other stakeholders. Capital
is defined as the amount subscribed by shareholders to the
Company’s ordinary shares and amounts advanced by debt
providers to any Group entity.

The Group aims to maintain a capital structure, which reflects
the use of a prudent level of debt funding. The aim is to reduce
the Group’s cost of capital without adversely affecting the credit
margins applied to the Group’s debt funding. Each year the
Directors determine the dividend taking into account factors
such as profitability and liquidity.

139

CSL Limited Annual Report 2022/23Note 11: Financial Risk Management continued

Risk management approach

Equity – sensitivity to general movement of 1%

The Group uses sensitivity analysis (together with other
methods) to measure the extent of financial risks and decide
if they need to be mitigated. If so, the Group’s policy is to use
derivative financial instruments, such as foreign exchange
contracts and interest rate swap and forward contracts, to
support its objective of achieving financial targets while
seeking to protect future financial security. The aim is to
reduce the impact of short-term fluctuations in currency
or interest rates on the Group’s earnings. Derivatives are
exclusively used for this purpose and not as trading or other
speculative instruments.

a. Foreign Exchange Risk

The objective is to match the contracts with committed
future cash flows from sales and purchases in foreign
currencies to protect the Group against exchange rate
movements. The Group reduces its foreign exchange risk
on net investments in foreign operations by denominating
external borrowings in currencies that match the currencies
of forecasted sales. There are no material outstanding foreign
exchange forward contracts at 30 June 2023 and 2022.

Sensitivity analysis – USD values

Profit after tax – sensitivity to general movement of 1%

Monetary items, including financial asset and liabilities,
denominated in currencies other than the functional
currency of an operation are revalued at the end of each
reporting period to US dollar equivalents and the associated
gain or loss is taken to the profit or loss. The following chart
is based on decreasing the actual rate of US Dollars to AUD,
EUR, CHF, GBP and CNY as at 30 June 2023 and 2022 by 1%
and applying these adjusted rates to the net monetary assets/
liabilities denominated in foreign currency of various Group
entities. Amounts shown are rounded to the nearest US$m.

FX Sensitivity on Proﬁt after tax (US$m)

-5

-10

AUD

EUR

CHF

GBP

CNY

2023

2022

Where the functional currency of a subsidiary is not US
dollars, the subsidiary’s assets and liabilities are translated
on consolidation to US dollars using the exchange rates
prevailing at the reporting date, and its profit and loss is
translated at average exchange rates. All resulting exchange
differences are recognised in the foreign currency translation
reserve in equity. The following chart is based on decreasing
the actual exchange rate of US Dollars to AUD, EUR, CHF, GBP
and CNY as at 30 June 2023 and 2022 by 1% and applying
these adjusted rates to the net assets/liabilities (excluding
investments in subsidiaries) of the foreign currency
denominated financial statements of various Group entities.
Amounts shown are rounded to the nearest US$m.

FX Sensitivity on Equity (US$m)

-5

AUD

EUR

CHF

GBP

CNY

2023

2022

b. Interest Rate Risk

As at 30 June 2023, it is estimated that a general movement
of one percentage point in the interest rates applicable
to investments of cash and cash equivalents would have
changed the Group’s profit after tax by approximately
$10m (2022: $10m). This calculation is based on applying
a 1% movement to the total of the Group’s cash and cash
equivalents at year end.

As at 30 June 2023, it is estimated that a general movement
of one percentage point in the interest rates applicable to
floating rate unsecured bank loans would have changed the
Group’s profit after tax by approximately $22m (2022: $4m).
This calculation is based on applying a 1% movement to the
total of the Group’s floating rate unsecured bank loans
at year end.

140

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 11: Financial Risk Management continued

c. Credit Risk

The Group only invests its cash and cash equivalent financial assets with financial institutions having a credit rating of at least
‘BBB+’ or better, as assessed by independent rating agencies.

Floating Rate15

Non-Interest Bearing

US$m

Total

US$m

Average Closing
Interest Rate

2023

2022

2023

2022

2023

2022

2023

2022

Financial assets and
contract assets

Cash and cash equivalents

1,548

10,436

–

1,548

10,436

2.24%

0.86%

Receivables and contract
assets (excluding
prepayments)

Other financial assets

–

1,548

10,436

2,001

1,496

2,001

1,496

182

2,183

407

1,903

182

3,731

407

12,339

–

Credit quality of ﬁnancial assets
30 June 2023 (US$m)

Credit quality of ﬁnancial assets
30 June 2022 (US$m)

Financial Institutions* $1,572m

Governments $291m

Hospitals $306m

Buying Groups $704m

Publicly traded securities $30m

Venture fund assets $94m

Other $734m

Financial Institutions* $10,462m

Governments $224m

Hospitals $151m

Buying Groups $399m

Publicly traded securities $381m

Other $722m

* $1,548m of the assets held with ﬁnancial institutions are held as cash
or cash equivalents and $24m of other ﬁnancial assets. Financial assets
held with non-ﬁnancial institutions include $2,001m of trade and
other receivables.

* $10,436m of the assets held with ﬁnancial institutions are held as cash
or cash equivalents and $26m of other ﬁnancial assets. Financial assets
held with non-ﬁnancial institutions include $1,496m of trade and
other receivables.

Government or government-backed entities (such as hospitals) often account for a significant proportion of trade receivables.
As a result, the Group carries receivables from a number of Southern European governments. The credit risk associated with
trading in these countries is considered on a country-by-country basis and the Group’s trading strategy is adjusted accordingly.
The factors taken into account in determining the credit risk of a particular country include recent trading experience, current
economic and political conditions and the likelihood of continuing support from agencies such as the European Central Bank.

The following table analyses trade receivables and contract assets that are past due and, where required, the associated
provision for expected credit losses (Note 15). All other financial assets are less than 30 days overdue.

Trade receivables and contract assets

current

less than 30 days overdue

between 30 and 90 days overdue

more than 90 days overdue

Gross

Provision

Net

2023
US$m

1,468

2022
US$m

1,083

1,612

1,168

2023
US$m

2022
US$m

(5)

–

(7)

(12)

(9)

–

(8)

(17)

2023
US$m

1,463

1,600

2022
US$m

1,074

1,151

15 Floating interest rates represent the most recently determined rate applicable to the instrument at balance sheet date. All interest rates on floating rate

financial assets are subject to reset within the next six months.

141

CSL Limited Annual Report 2022/23Note 11: Financial Risk Management continued

d. Funding and Liquidity Risk

The following chart summarises the Group’s maturity profile of debt on an undiscounted basis by facility (US$m).

2000

1750

1500

1250

1000

750

500

250

FY24

FY25

FY26

FY27

FY28

FY29

FY30

FY31

FY32

FY33

FY35

FY38

FY42

FY52

FY62

● Private Placement ● QDI ● Bank Debt ● 144A

The following table analyses the Group’s interest-bearing liabilities and borrowings:

Interest-bearing liabilities and borrowings

2023
US$m

2022
US$m

Current

Bank overdraft – unsecured

Bank borrowings – unsecured16

Senior notes – unsecured

Senior 144A notes – unsecured17

Lease liabilities

Non-current

Bank borrowings – unsecured16

Senior notes – unsecured

Senior 144A notes – unsecured17

Lease liabilities

563

362

–

1,055

2,252

3,351

3,961

1,608

11,172

102

203

150

3,959

4,494

180

3,675

–

1,310

5,165

16 Unsecured bank borrowings includes $2,500m in bilateral credit facilities drawn down during the year ended 30 June 2023 following the acquisition close

of CSL Vifor (Note 2). $500m of these unsecured bank borrowings are classified within current liabilities.

17 The 144A senior unsecured notes were reclassified to non-current during the year ended 30 June 2023 aligned to the removal of a mandatory redemption

feature in connection with the acquisition of CSL Vifor (Note 2).

142

Notes to the Financial StatementsCSL Limited Annual Report 2022/23The Group’s lease liabilities are inclusive of extension options
the Group is reasonably certain to exercise based upon our
judgement as at the lease commencement date. After the
lease commencement date, the Group reassesses the lease
term if there is a significant event or change in circumstances
that is within its control and affects its ability to exercise
(or not to exercise) the option to renew (e.g. a change in
business strategy).

The Group applies the short-term lease recognition
exemption to leases that have a lease term of 12 months or
less from the commencement date and do not contain a
purchase option. It also applies the lease of low-value assets
recognition exemption, which relates to leases such as office
photocopiers, gas storage cylinders, and other miscellaneous
low value assets. Lease payments on short-term leases and
leases of low-value assets are recognised as expense on a
straight-line basis over the lease term.

Contractual maturities of financial liabilities

The following table categorises the financial liabilities into
relevant maturity periods, taking into account the remaining
period at the reporting date and the contractual maturity
date. The weighted average contractual maturity date of
financial liabilities (excluding trade and other payables and
lease liabilities) as at 30 June 2023 is 9 years (2022: 12 years).
The amounts disclosed represent principal and interest cash
flows, so they may differ from the equivalent reported
amounts in the balance sheet.

Note 11: Financial Risk Management continued

Interest-bearing liabilities and borrowings

Interest-bearing liabilities and borrowings are recognised
initially at fair value, net of transaction costs incurred.
Subsequent to initial recognition, interest-bearing liabilities
and borrowings are stated at amortised cost, with any
difference between the proceeds (net of transaction costs)
and the redemption value recognised in the statement of
comprehensive income over the period of the borrowings.

Fees paid on the establishment of loan facilities that are yield
related are included as part of the carrying amount of the
loans and borrowings. Borrowings are classified as current
liabilities unless the Group has an unconditional right to defer
settlement of the liability for at least 12 months after the
reporting date.

Lease liabilities

At the commencement date of the lease, the Group
recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. In calculating
the present value of lease payments, the Group uses the
incremental borrowing rate of the lessee at the lease
commencement date if the interest rate implicit in the lease
is not readily determinable. The Group exercises judgement
when determining the incremental borrowing rate based on
the interest that the lessee would have to pay to borrow over
a similar term, the funds necessary to obtain an asset of a
similar value to the right-of-use asset in a similar economic
environment, and observable inputs such as market interest
rates are used as applicable.

The lease payments include fixed payments (including
in-substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on an index
or a rate, and amounts expected to be paid under residual
value guarantees. The lease payments also include the
exercise price of a purchase option reasonably certain to
be exercised by the Group and payments of penalties for
terminating a lease, if the lease term reflects the Group
exercising the option to terminate. The variable lease
payments that do not depend on an index or a rate are
recognised as an expense in the period in which the event
or condition that triggers the payment occurs. Subsequent
to initial recognition, lease liabilities are measured at amortised
cost. Lease liabilities are remeasured if there is a modification,
such as a change in the lease term, a change in the in-substance
fixed lease payments or a change in the assessment to purchase
the underlying asset.

143

CSL Limited Annual Report 2022/23Note 11: Financial Risk Management continued

Contractual payments due as at 30 June

1 year or less
US$m

Between 1 year
and 5 years
US$m

Over 5 years
US$m

Total
US$m

Weighted average
interest rate
%

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2,947

2,301

102

661

–

2,192

–

127

149

518

506

–

2,947

2,301

102

–

2,853

5.5%

2.0%

184

216

1.0%

531

519

5.9%

2.5%

450

359

1,602

1,772

1,660

1,965

3,712

4,096

2.8%

Trade and other payables
(non-interest bearing)

Bank overdraft – unsecured
(floating rates)18

Bank borrowings – unsecured
(floating rates)18

Bank borrowings – unsecured
(fixed rates)

Senior notes – unsecured
(floating rates)18

Senior notes – unsecured
(fixed rates)

Senior 144A notes – unsecured
(fixed rates)19

Lease liabilities (fixed rates)

177

105

177

1,187

1,210

5,968

6,154

7,332

7,541

4.1%

4,432

3,140

5,935

3,925

309

288

1,296

8,941

1,018

1,710

1,392

3.6%

3.0%

9,165

19,308

16,230

Available debt facilities

Receivables, contract assets and payables

As at 30 June 2023, the Group had the following available
debt facilities (undiscounted and excludes bank overdrafts
and lease liabilities):

Carrying value of receivables, contract assets and payables
with a remaining life of less than one year is deemed to equal
fair value.

• Five revolving committed bank facilities totalling $1,604m,
which includes $1,551m in undrawn funds (2022: $1,604m
which included $1,543m in undrawn funds)

• Bilateral credit facility restricted to the acquisition of CSL
Vifor (Note 2) totalling $2,500m (2022: $2,500m undrawn)

• Senior unsecured notes in the the US private placement

market totalling $3,217m (2022: $3,435m)

• Senior unsecured notes in the 144A US private placement

market totalling $4,000m (2022: $4,000m)

• Senior unsecured notes in the Hong Kong market (QDI)

totalling $500m (2022: $500m)

Other financial assets

Other financial assets includes equity securities (publicly
traded securities) carried at fair value through OCI (FVTOCI)
which are not held for trading. The value of the publicly
traded securities depends on the share price quoted on the
corresponding stock exchange. Other financial assets also
includes investments in venture funds which are not publicly
traded carried at fair value through the profit or loss (FVTPL).
The value of the venture funds depends on the net asset value
of the underlying investments and not directly on a share index.

• Commercial paper program totalling US$750m undrawn

Interest-bearing and other financial liabilities

(2022: $750m undrawn)

• Other bank facilities totalling $262m (2022: $216m)

The Group is in compliance with all debt covenants as at
30 June 2023.

e. Fair value of financial assets and financial liabilities

The carrying value of financial assets and liabilities
approximates fair value, with the exception of the Group’s
fixed interest rate debt. The following methods and
assumptions were used to determine the fair values
of financial assets and liabilities.

Cash

The carrying value of cash equals fair value, due to the liquid
nature of cash.

The carrying amount of the interest-bearing liabilities
approximates the fair value, with the exception of the Group’s
fixed interest rate debt. At 30 June 2023, the total fixed
rate debt (excluding lease liabilities) has a carrying amount
of $7,353m (FY22: $7,605m) and a fair value of $6,684m
(FY22: $7,300m). Fair value is calculated based on the
discounted expected principal and interest cash flows,
using rates currently available for debt of similar terms,
credit risk and remaining maturities.

The Group also has foreign currency loans payable that have
been designated as a cash flow hedge against forecast sale
transactions in foreign currency. An effective hedge is one
that meets certain criteria. Gains or losses on the cash flow
hedge that relate to the effective portion of the hedge are
recognised in equity. Gains or losses relating to the ineffective
portion, if any, are recognised in the profit or loss. Other
financial liabilities also includes contingent consideration
liabilities from business combinations.

18 Floating interest rates represent the most recently determined rate applicable to the instrument at balance sheet date. All interest rates on floating rate

financial liabilities are subject to reset within the next six months.

19 Contractual payments due within 1 year from 30 June 2023 related to the senior unsecured 144A notes represents interest payments only.

144

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 11: Financial Risk Management continued

Key Judgements and Estimates

Contingent consideration liabilities are valued with reference to our judgement of the expected probability and timing
of potential future milestone payments, based upon level 3 inputs under the fair value hierarchy, which is then discounted
to a present value using appropriate discount rates with reference to the Group’s incremental borrowing rates.

Valuation of financial instruments

Financial instruments measured and carried at fair value are categorised as follows:

• Level 1: Items traded with quoted prices in active markets for identical liabilities

• Level 2: Items with significantly observable inputs other than quoted prices in active markets

• Level 3: Items with unobservable inputs (not based on observable market data)

There were no transfers between Level 1 and Level 2 during the year, or any transfers into Level 3.

Financial assets/(liabilities) measured at fair value

Publicly traded securities – FVTOCI20

Venture fund assets – FVTPL

Contingent consideration assets (earn-out receivable)

Contingent consideration liabilities from business combinations

2023
US$m

2022
US$m

381

–

(242)

(269)

Level 1

Level 3

Note 12: Equity and Reserves

(a) Contributed Equity

Ordinary shares issued and fully paid

Share buy-back reserve

Total contributed equity

2023
US$m

5,022

(4,505)

517

2022
US$m

4,988

(4,505)

483

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity
as a deduction, net of tax, from the proceeds. Where the Group reacquires its own shares, those shares are cancelled. No gain
or loss is recognised in the statement of comprehensive income and the consideration paid to acquire the shares, including
transaction costs net of income taxes is recognised directly as a reduction in equity.

Ordinary shares receive dividends as declared and, in the event of winding up the company, participate in the proceeds from
the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their
holder to one vote, either in person or proxy, at a meeting of the company.

Share buy-backs were undertaken at higher prices than the original subscription prices which reduced the historical balance
for ordinary share contributed equity to nil. The share buy-back reserve was created to reflect the excess value of shares bought
over the original amount of subscribed capital. Information relating to changes in contributed equity is set out in Note 10.

20 Prior to acquisition close in August 2022, the Group commenced buying Vifor’s shares on-market. These shares were carried at fair value through OCI and the

subsequent fair value gain was transferred to retained earnings on acquisition date.

145

CSL Limited Annual Report 2022/23Note 12: Equity and Reserves continued

(b) Movement in Reserves

Share-based
payments
reserve (i)

Foreign currency
translation
reserve (ii)

Hedge
reserve (iii)

Other
reserves (iv)

2022

2023

2022

US$m

Opening balance

2023

544

2022

427

2023

(81)

2022

206

2023

134

Share-based payment expense,
net of tax

Net exchange gains/(losses) on
translation of foreign subsidiaries,
net of hedging reserve

Acquisition of CSL Vifor (Note 2)21

Change in fair value of
investments valued through OCI

Fair value of cash flow hedge

Reclassification to profit and loss

138

117

–

(17)

(287)

–

Closing balance

682

544

(98)

(81)

–

(14)

120

–

135

(1)

134

(7)

–

(7)

(42)

–

(7)

–

(56)

(7)

648

Total

2023

590

2022

633

138

117

(17)

(287)

(7)

(42)

–

(14)

(7)

–

135

(1)

590

Nature and purpose of reserves

i. Share-based payments reserve

The share-based payments reserve is used to recognise
the fair value of awards issued to employees.

ii. Foreign currency translation reserve

Where the functional currency of a subsidiary is not US
dollars, its assets and liabilities are translated on consolidation
to US dollars using the exchange rates prevailing at the
reporting date, and its profit and loss is translated at average
exchange rates.

All resulting exchange differences are recognised in OCI
and in the foreign currency translation reserve in equity.
Exchange differences arising from borrowings designated
as hedges of net investments in foreign entities are also
included in this reserve.

iii. Hedge reserve

The hedge reserve recognises the effective portion of gains
and losses on derivatives that are designated and qualify as
hedges. Amounts are subsequently reclassified into the profit
and loss as appropriate. The hedge reserve includes the cash
flow hedge reserve associated with the T-lock which settled
during the prior year ended 30 June 2022.

iv. Other reserves

The Group has elected to recognise changes in the fair value
of the investments in publicly traded securities through OCI
(excluding dividend income) (Note 11(e)). These changes are
accumulated within the other reserves. The Group transfers
amounts from this reserve to retained earnings when the
relevant equity securities are derecognised (or triggered by
a change of control including the acquisition of CSL Vifor).

21 Prior to acquisition close in August 2022, the Group commenced buying Vifor’s shares on-market. These shares were carried at fair value through OCI and the

subsequent fair value gain was transferred to retained earnings on acquisition date.

146

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 13: Commitments and Contingencies

(a) Capital Commitments

Commitments in relation to capital expenditure contracted but not provided for in the financial statements are payable as follows:

Not later than one year

Later than one year but not later than five years

Total

(b) Contingent assets and liabilities

Litigation

Capital Commitments

2023
US$m

2022
US$m

411

495

403

486

In the ordinary course of business, the Group is exposed to contingent liabilities related to litigation for breach of contract
and other claims. Contingent liabilities occur when the possibility of a future settlement of economic benefits is considered
to be less than probable but more likely than remote. If the expected settlement of the liability becomes probable, a provision
is recognised. Where appropriate, contingent liabilities are recognised at fair value on acquisition date in connection with
a business combination (Note 2).

Other contingent assets and liabilities

The Group has entered into collaboration arrangements, including in-licensing arrangements with various companies. Such
collaboration agreements may require the Group to make payments on achievement of stages of development, launch or
revenue milestones and may include variable payments that are based on unit sales or profit (e.g. royalty and profit share
payments). The amount of variable payments under the arrangements are inherently uncertain and difficult to predict, given
the direct link to future sales, profit levels and the range of outcomes.

The maximum potential unrecognised future milestone payments could amount to $7,952m in the event each related product
reached its full commercial potential (2022: $2,050m). These amounts are undiscounted and are not risk-adjusted, which
include all such possible payments that can arise assuming all products currently in development are successful and all
possible performance objectives are met.

The increase in potential milestone payments during the year includes commitments assumed from the acquisition of CSL
Vifor (Note 2) and the collaboration and license agreement with Arcturus Therapeutics. The arrangement with Arcturus
Therapeutics was entered into by the Group during the year in order to access their late stage self-amplifying mRNA (sa-mRNA)
vaccine platform technology. Payments in connection with the transaction was paid to Arcturus during the year ended 30 June
2023, which has been recognised as an intangible asset (Note 8). The arrangement requires the Group to make payments on
achievement of certain regulatory and commercial milestones, as well as royalties and future profit share arrangements.

The Group also has certain take or pay arrangements with contract manufacturers or service providers which serve as
commercial manufacturers and suppliers for certain products. To the extent a commitment is determined to be onerous, these
are provided for within provisions in the consolidated balance sheet.

147

CSL Limited Annual Report 2022/23Efficiency of Operation

Note 14: Cash and Cash Equivalents

Cash at bank and on hand

Cash deposits

Total cash and cash equivalents22

Cash and cash equivalents are held for the purpose of
meeting short term cash commitments rather than for
investment or other purposes. They are made up of:

• Cash on hand.

• At call deposits with banks or financial institutions.

• Investments in money market instruments that are readily

convertible to known amounts of cash and subject to
insignificant risk of changes in value.

Note 15: Receivables, Contract Assets and Payables

(a) Receivables and contract assets

Current

Trade receivables

Contract assets

Less: Provision for expected credit losses

Carrying amount of trade receivables and contract assets23

Other receivables

Prepayments

Carrying amount of current receivables and contract assets23

Other receivables

Carrying amount of non-current receivables and contract assets23

Receivables are initially recorded at their transaction price
and are generally due for settlement within 30 to 60 days
from date of invoice. Collectability is regularly reviewed at an
operating unit level.

A provision for expected credit losses (ECL) is recognised
based on the difference between the contractual cash
flows due in accordance with the contract and all the cash
flows that the Group expects to receive, discounted at an
approximation of the original effective interest rate. Cash
flows relating to short-term receivables are not discounted
if the effect of discounting is immaterial. When a trade
receivable for which a provision for expected credit loss has
been recognised becomes uncollectible in a subsequent
period, it is written off against the provision.

2023
US$m

996

552

1,548

2022
US$m

1,531

8,905

10,436

For the purposes of the cash flow statement, cash at the end
of the financial year is net of bank overdraft amounts.

Cash flows are presented on a gross basis. The GST component
of cash flows arising from investing and financing activities
that are recoverable from or payable to a taxation authority
are presented as part of operating cash flows.

2023
US$m

2022
US$m

1,424

188

(12)

1,600

305

300

2,205

966

202

(17)

1,151

332

174

1,657

ECLs are recognised in two stages. For credit exposures for
which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses
that result from default events that are possible within the
next 12-months (a 12-month ECL). For those credit exposures
for which there has been a significant increase in credit risk
since initial recognition, a loss allowance is required for credit
losses expected over the remaining life of the exposure,
irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Group applies
a simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead
recognises a loss allowance based on lifetime ECLs at each
reporting date. The Group has established a provision matrix
that is based on its historical credit loss experience, adjusted
for forward-looking factors specific to the debtors and the
economic environment.

22 Prior year cash and cash equivalents as at 30 June 2022 included $8,939m in proceeds raised in connection with the acquisition of CSL Vifor (Note 2).
23 The carrying amount disclosed above is a reasonable approximation of fair value. The maximum exposure to credit risk at the reporting date is the carrying

amount of each class of receivable disclosed above. Refer to Note 11 for more information on the risk management policy of the Group and the credit quality
of trade receivables.

148

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 15: Receivables, Contract Assets and Payables continued

As at 30 June 2023, the Group had a provision for expected credit losses of $12m (2022: $17m).

Opening balance as at 1 July

Allowance utilised/written back

Currency translation differences

Closing balance at 30 June

2023
US$m

2022
US$m

(5)

–

(6)

(1)

Key Judgements and Estimates

In applying the Group’s accounting policy to trade and other receivables with governments and related entities in South
Eastern Europe as set out in Note 11, significant judgement is involved in assessing the expected credit loss of trade
or other receivable amounts. Matters considered include recent trading experience, current economic and political
conditions and the likelihood of continuing support from agencies such as the European Central Bank.

As at 30 June 2023, receivables totalling $286m (2022: $16m) had been sold as part of the Group’s non-recourse receivable
factoring arrangements. The receivables were derecognised upon sale as substantially all risks and rewards associated with
the receivables passed to the purchaser.

Contract assets and deferred revenue (contract liabilities): The completion of performance obligations often differs from contract
payment schedules. A contract asset is initially recognised for revenue earned from satisfying a performance obligation. However,
the receipt of consideration is conditional upon the full satisfaction of the performance obligation within the contract. Upon
completing the full performance obligation, the amount recognised as contract assets is reclassified to trade receivables. Amounts
billed in accordance with customer contracts, but where the Group had not yet provided a good or service, are recorded and
presented as part of deferred revenue. Deferred revenue is recognised as revenue when the Group performs under the contract.

Other current receivables are recognised and carried at the nominal amount due upon an unconditional right to payment.
Non-current receivables are recognised and carried at amortised cost. They are non-interest bearing and have various
repayment terms.

(b) Trade and other payables

Current

Trade payables

Accruals and other payables

Carrying amount of current trade and other payables

Non-current

Accruals and other payables

Contingent consideration associated with business combinations

Carrying amount of other non-current liabilities

2023
US$m

2022
US$m

820

2,127

2,947

251

242

493

592

1,709

2,301

266

269

535

Trade payables, accruals and other payables: Represents the notional amounts owed to suppliers for goods and services
provided to the Group prior to the end of the financial year that are unpaid. Trade and other payables are non-interest bearing
and have various repayment terms but are usually paid within 30 to 60 days of recognition.

Receivables and payables include the amount of GST receivable or payable. The net amount of GST recoverable from, or payable
to, taxation authorities is included in other receivables or payables in the balance sheet.

Contingent consideration associated with business combinations: The Group’s recognised contingent consideration
principally relates to Vitaeris and CSL Vifor’s past business combinations. These liabilities are recorded as non-current financial
liabilities at fair value, which are then remeasured at each subsequent reporting date at fair value through profit and loss.

The fair value estimations typically depend on factors such as technical milestones or market performance, and are adjusted for
the probability of their likelihood of potential future payments, and are appropriately discounted to reflect the impact of time.
Refer to Note 11 for further details on the fair value measurement. As at 30 June 2023, the maximum amount of undiscounted
potential future milestone payments relating to historical business combinations are $470m (2022: $470m).

Changes in the fair value of contingent consideration liabilities in subsequent periods are recognised in research and
development expenses for early-stage products and as cost of sales for currently marketed products. The effect of unwinding
the discount over time for contingent consideration carried at fair value is recognised as finance costs.

149

CSL Limited Annual Report 2022/23Note 16: Provisions

Current

Carrying amount at the start of the year

Acquisition of CSL Vifor (Note 2)

Utilised/Transfers

Additions

Currency translation differences

Carrying amount at the end of the year

Non-current

Carrying amount at the start of the year

Acquisition of CSL Vifor (Note 2)

Utilised/Transfers

Additions

Currency translation differences

Carrying amount at the end of the year

Employee benefits

Other

US$m

2023

US$m

2022

US$m

2023

US$m

2022

Total

US$m

2023

US$m

2022

172

(65)

126

246

(2)

212

–

(59)

(12)

172

–

(6)

(4)

(9)

(8)

347

(1)

407

–

(14)

(1)

–

(4)

182

(74)

130

(6)

310

102

356

(3)

467

228

–

(73)

(13)

182

108

–

(6)

(8)

102

Provisions are recognised when all three of the following conditions are met:

• The Group has a present or constructive obligation arising from a past transaction or event

• It is probable that an outflow of resources will be required to settle the obligation

• A reliable estimate can be made of the obligation.

Provisions are not recognised for future operating losses. Provisions recognised reflect our best estimate of the expenditure
required to settle the present obligation at the reporting date. Where the effect of the time value of money is material,
provisions are determined by discounting the expected future cash flows to settle the obligation at a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the obligation.

Provisions for employee benefits includes the liability for leave entitlements, related on costs and restructuring costs where
required. Other provisions include provisions for asset retirement obligations and onerous contracts. Other provisions also
include the estimated fair value of potential contingent liabilities assumed on business acquisition date relating to various
claims and disputes with third parties in each case where there is a possible, but not probable, future financial exposure,
and involve an assessment of the likelihood of several scenarios in relation to those matters.

150

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Other Notes

Note 17: Related Party Transactions

Ultimate controlling entity and subsidiaries

The ultimate controlling entity is CSL Limited, otherwise described as the parent company. The following table lists the
Group’s material subsidiaries including those acquired in connection with the acquisition of CSL Vifor during the year ended
30 June 2023 (Note 2).

Country of Incorporation

Percentage owned (%)

2023

2022

Company

CSL Limited

Subsidiaries of CSL Limited:

CSL Innovation Pty Ltd

CSL Behring (Australia) Pty Ltd

CSL Behring LLC

CSL Plasma Inc

CSL Behring GmbH

CSL Behring AG

CSL Behring Lengnau AG

CSLB Holdings Inc

CSL Finance Plc

CSL Behring Holdings Limited

CSL Behring (Holdings) Pty Ltd

CSL Finance Pty Ltd

Seqirus Pty Ltd

Seqirus UK Limited

Seqirus Vaccines Limited

Seqirus USA Inc

Seqirus Inc

Australia

USA

Germany

Switzerland

USA

Australia

USA

Vifor Pharma Participations Ltd24

Vifor (International) Ltd

Switzerland

Vifor Fresenius Medical Care Renal Pharma Ltd Switzerland

Related party transactions

All transactions with subsidiaries have been eliminated on consolidation.

24 Vifor Pharma Ltd was merged into Vifor Pharma Participations Ltd effective 14 June 2023.

100

–

151

CSL Limited Annual Report 2022/23Note 18: Detailed Information – People Costs

(a) Defined benefit plans

The Group sponsors a range of defined benefit pension plans that provide either a lump sum or ongoing pension benefit for its
worldwide employees upon retirement. Entities of the Group who operate defined benefit plans contribute to the respective
plans in accordance with the Trust Deeds, following the receipt of actuarial advice. The surplus/deficit for each defined benefit
plan operated by the Group is as follows:

Pension Plan

Funded:

CSL Pension Plan (Australia) – provides a lump sum
benefit upon exit

CSL Behring AG Pension Plan (Switzerland) – provides
an ongoing pension25

CSL Vifor Pension Plan (Switzerland) – provides an
ongoing pension25

CSL Behring Union Pension Plan (USA) – provides an
ongoing pension

Unfunded:

CSL Behring GmbH Supplementary Pension Plan
(Germany) – provides an ongoing pension

CSL Behring Innovation GmbH Supplementary
Pension Plan (Germany) – provides an ongoing pension

bioCSL GmbH Pension Plan (Germany) – provides an
ongoing pension

CSL Behring KG Pension Plan (Germany) – provides an
ongoing pension

CSL Plasma GmbH Pension Plan (Germany) – provides
an ongoing pension

CSL Behring KK Retirement Allowance Plan (Japan)
– provides a lump sum benefit upon exit

CSL Behring S.A. Pension Plan (France) – provides
a lump sum benefit upon exit

CSL Behring S.p.A Pension Plan (Italy) – provides
a lump sum benefit upon exit

2023
US$m

2022
US$m

Plan
Assets

Accrued
benefit

Plan
surplus/
(deficit)

Plan
Assets

Accrued
benefit

Plan
surplus/
(deficit)

674

453

–

(13)

(674)

(453)

(37)

–

(150)

(25)

(2)

(14)

–

(11)

(1)

(25)

(2)

(14)

–

(11)

(1)

621

–

(14)

(621)

–

(41)

–

(138)

(23)

(3)

(12)

–

(11)

(1)

(3)

(12)

–

(11)

(1)

Total

1,183

(1,381)

(198)

681

(865)

(184)

In addition to the plans listed, CSL Behring GmbH, CSL Behring Innovation GmbH and Seqirus GmbH employees are members
of multi-employer plans administered by an unrelated third party. CSL Behring GmbH, CSL Behring Innovation GmbH, Seqirus
GmbH and their employees make contributions to the plans and receive pension entitlements on retirement. Participating
employers may have to make additional contributions in the event that the plans have insufficient assets to meet their
obligations. However, there is insufficient information available to determine this amount on an employer by employer basis.
The contributions made by CSL Behring GmbH, CSL Behring Innovation GmbH and Seqirus GmbH are determined by the Plan
Actuary and are designed to be sufficient to meet the obligations of the plans based on actuarial assumptions. Contributions
made by CSL Behring GmbH, CSL Behring Innovation GmbH and Seqirus GmbH are expensed in the year in which they are made.

25 The CSL Behring AG and CSL Vifor pension plans have asset surplus’ not recognised on the basis that future economic benefits are not available to the entity

in the form of a reduction in future contributions or a cash refund. The plan assets have been recognised up to the asset ceiling limit.

152

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 18: Detailed Information – People Costs continued

Movements in accrued benefits and assets

During the financial year the value of accrued benefits
increased by $516m, mainly attributable to:

During the financial year, plan assets increased by $502m,
mainly attributable to:

• CSL Vifor plan assets acquired on acquisition date of $424m;

• CSL Vifor accrued benefits assumed on acquisition date

of $424m;

• Service costs charged to the profit and loss of $53m;

• Interest costs of $24m, from the discount rate on benefit

obligations and anticipated benefit payments;

• Employee contributions of $24m;

• Employer and employee contributions of $69m and

investment returns that increased plan assets by $21m;

• Favourable foreign currency movements of $56m taken

directly to the Foreign Currency Translation Reserve;

• Favourable asset ceiling movements of $9m;

• Offsetting these movements were decreases from:

• Unfavourable foreign currency movements of $68m taken

– Benefits paid by the plans of $44m;

directly to the Foreign Currency Translation Reserve;

– Actuarial adjustments, generating a decrease in plan

• Offsetting these movements were decreases from:

assets of $34m.

– Benefits paid by the plans of $48m;

– Actuarial adjustments, generating a decrease in accrued

benefits of $33m.

The major categories of total plan assets are as follows:

Cash

Instruments quoted in active markets:

Equity instruments

Bonds

Unquoted investments – property

Other assets

Asset ceiling adjustment25

Total Plan Assets

The actuarial assumptions, expressed as weighted averages, at the reporting dates are:

Discount rate

Future salary increases

Future pension increases

2023
US$m

2022
US$m

551

354

341

103

(175)

1,183

2023
%

2.3%

2.7%

0.3%

252

246

200

(76)

681

2022
%

2.0%

2.3%

0.4%

The variable with the most significant impact on the defined
benefit obligation is the discount rate applied in the
calculation of accrued benefits. A decrease in the average
discount rate applied to the calculation of accrued benefits
of 0.25% would increase the defined benefit obligation by
$43m. An increase in the average discount rate of 0.25%
would reduce the defined benefit obligation by $41m.

The defined benefit obligation will be discharged over an
extended period as members exit the plans. The plan actuaries
have estimated that the following payments will be required
to satisfy the obligation. The actual payments will depend
on the pattern of employee exits from the Group’s plans.

Estimated defined benefit plan payments (actuarial assumption) as at 30 June:

Within one year

Between two and five years

Between five and ten years

Beyond ten years

2023
US$m

2022
US$m

293

360

652

175

558

153

CSL Limited Annual Report 2022/23
Note 18: Detailed Information – People Costs continued

(b) Share-based payments

Long Term Incentives

A face value equity allocation methodology, being a five day
volume weighted average share price based on the market
price of a CSL share at the time of grant, is used to determine
the number of units granted to a participant under each
of the shared based payment plans, which are as follows:

• The Executive Performance and Alignment Plan (EPA)
grants Performance Share Units (PSU) to qualifying
executives. Vesting is subject to continuing employment,
satisfactory performance and the achievement of absolute
return measures. The return measures include EPS growth
and seven-year average Return on Invested Capital (ROIC).

• The Retain and Grow Plan (RGP) grants Restricted Share
Units (RSU) to qualifying employees, participation in the
RGP plan is broader than in the EPA plan. Vesting is subject
to continuing employment and satisfactory performance.

EPA and RGP grants made prior to 1 September 2021
vest in equal tranches on the first, second, third and
fourth anniversaries of the grant. EPA grants made from
1 September 2021 vest on the third anniversary. RGP grants
made from 1 September 2021 vest in equal tranches on the
first, second and third anniversaries of the grant. For EPA and
RGP commencement benefit awards, vesting dates will vary.
There have been no changes to the grant terms of any
existing instruments.

The fair value of the awards granted is estimated at the date
of grant using an adjusted form of the Black-Scholes model,
considering the terms and conditions upon which the PSUs
and RSUs were granted. There is no exercise price payable on
PSUs and RSUs. The following grants were issued during the
year ended 30 June 2023:

Date of grant

1 September 2022

1 November 2022

1 March 2023

PSUs

411

210,065

5,779

RSUs

781,314

–

121,093

The relevant tranche of PSUs will exercise upon vesting
between September 2024 and September 2025. The relevant
tranche of RSUs will exercise upon vesting between
September 2023 and September 2025.

The Non-Executive Directors Plan

The Non-Executive Directors (NED) pay a minimum of 20%
of their pre-tax base fee in return for a grant of rights, each
right entitling a NED to acquire one CSL share at no cost
(shares purchased on market). There is a nominated restriction
period of three to fifteen years, after which the NED will have
access to their shares. On 25 August 2022, 3,135 rights were
granted under the NED Rights Plan with vesting through
to August 2023.

Global Employee Share Plan

The Global Employee Share Plan (GESP) allows employees
to make contributions from post-tax salary up to a maximum
of A$12,000 (or equivalent) per six month contribution period.
Employees receive shares at a 15% discount to the applicable
market rate over the five day period up to and including the
first and last ASX trading days of the six month period,
whichever is the lower.

Recognition and measurement

The fair value of awards granted are recognised as an
employee benefit expense with a corresponding increase
in equity. Fair value is independently measured at grant date
and recognised over the period during which the employees
become unconditionally entitled to the award.

Fair value is independently determined using a combination
of the Binomial and Black-Scholes valuation methodologies,
including Monte Carlo simulation, considering the terms and
conditions on which the awards were granted. The fair value
of the awards granted excludes the impact of any non-market
vesting conditions, which are included in assumptions about
the number of awards that are expected to vest.

At each reporting date, the number of awards that are
expected to vest is revised. The employee benefit expense
recognised each period considers the most recent estimate
of the number of awards that are expected to vest. No expense
is recognised for awards that do not ultimately vest, except
where the vesting is conditional upon a market condition and
that market condition is not met. The Group does not have
any awards with a market condition as at 30 June 2023.

154

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 18: Detailed Information – People Costs continued

Valuation assumptions and fair values of equity instruments granted

The model inputs for share-based payments granted during the year ended 30 June 2023 included:

Fair Value
(A$)

Share
Price (A$)

Exercise
Price (A$)

Expected
Volatility26

Life
Assumption

Expected
Dividend
Yield

Risk-free
Interest
Rates

Performance Share Units (by grant date)27

1 September 2022 – Tranche 1

$286.27

$293.38

1 November 2022 – Tranche 1

$267.12

$276.69

1 March 2023 – Tranche 1

$285.54

$297.10

Restricted Share Units (by grant date)

1 September 2022 – Tranche 1

$291.59

$293.38

1 September 2022 – Tranche 2

$289.80

$293.38

1 September 2022 – Tranche 3

$288.91

$293.38

1 September 2022 – Tranche 4

$288.03

$293.38

1 September 2022 – Tranche 5

$286.27

$293.38

1 September 2022 – Tranche 6

$284.52

$293.38

1 September 2022 – Tranche 7

$282.78

$293.38

1 March 2023 – Tranche 1

1 March 2023 – Tranche 2

1 March 2023 – Tranche 3

1 March 2023 – Tranche 4

1 March 2023 – Tranche 5

Rights (by grant date)

25 August 2022 – Tranche 1

25 August 2022 – Tranche 2

GESP (by grant date)28

$294.90

$292.71

$290.11

$287.82

$285.54

$297.10

$292.74

$294.46

$290.97

$294.46

–

25.00%

24 months

25.00%

34 months

22.50%

30 months

25.00%

6 months

25.00%

12 months

25.00%

15 months

25.00%

18 months

25.00%

24 months

25.00%

30 months

25.00%

36 months

22.50%

6 months

22.50%

12 months

22.50%

18 months

22.50%

24 months

22.50%

30 months

1.23%

1.25%

1.60%

1.23%

1.50%

1.60%

3.01%

3.26%

3.51%

2.99%

3.01%

3.23%

3.71%

3.51%

25.00%

6 months

25.00%

12 months

1.21%

2.94%

2 September 2022 – Tranche 1

$72.13

$295.99

$223.86

3 March 2023 – Tranche 1

$43.26

$293.02

$249.76

25.00%

22.50%

6 months

1.23%

1.50%

2.99%

3.71%

Note 19: Detailed Information – Shareholder Returns

Retained earnings

Opening balance

Net profit for the year

Dividends paid to CSL Limited shareholders

Transfer of gain on disposal of equity investments at fair value through OCI to retained earnings

Actuarial gain on defined benefit plans

Deferred tax expense on actuarial gain/loss on defined benefit plans

Closing balance

Consolidated Entity

2023
US$m

2022
US$m

13,504

2,194

(1,085)

(1)

12,253

2,255

(1,039)

–

(5)

14,621

13,504

26 Expected volatility is based on historical volatility (based on the remaining life assumption of each equity instrument, adjusted for expected changes).
27 PSUs are subject to an EPS growth and ROIC performance measure.
28 Fair value of GESP shares is estimated based on the assumptions prevailing on the grant date. In accordance with the terms and conditions of the GESP plan,

shares are issued at a 15% discount to the lower of the ASX market price on the first and last dates of the contribution period.

155

CSL Limited Annual Report 2022/23Note 20: Auditor Remuneration

The following fees were paid or were payable for services provided by CSL’s auditor and by the auditor’s related practices. For
the year ended 30 June 2023, fees include audit and non-audit services provided to CSL Vifor from acquisition date in August
2022 and as such are not included in the 30 June 2022 comparative fees.

AUDIT SERVICES – Ernst & Young Australia

Fees for auditing the statutory financial report of the parent covering the group and auditing
the statutory financial reports of any controlled entities

Fees for other assurance and agreed-upon-procedures services under other legislation
or contractual arrangements where there is discretion as to whether the service is provided
by the auditor or another firm

– Assurance services over the 144a bond issuance

– Sustainability assurance

– Agreed-upon procedures and other audit engagements

Fees for other services

Training

Due diligence

Remuneration advisory

2023
US$

2022
US$

2,872,343

2,402,268

–

174,810

101,653

60,000

–

373,823

326,152

106,873

146,124

39,000

150,295

190,832

Total fees to Ernst & Young (Australia)

3,582,629

3,361,544

AUDIT SERVICES – Ernst & Young Overseas Member Firms

Fees for auditing the statutory financial report of the parent covering the group and auditing
the statutory financial reports of any controlled entities

4,752,475

3,678,633

Fees for assurance services that are required by legislation to be provided by the auditor

12,254

2,721

– Agreed-upon procedures and other audit engagements

Fees for other services

Total fees to overseas member firms of Ernst & Young (Australia)

Total audit and other assurance services

Total non-audit services

Total auditor’s remuneration

107,103

591,635

147,474

35,127

5,463,467

3,863,955

8,020,638

6,810,245

1,025,458

415,254

9,046,096

7,225,499

156

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 21: Deed of Cross Guarantee

A deed of cross guarantee was executed between CSL Limited and some of its wholly-owned entities, namely CSL Behring
(Holdings) Pty Ltd, CSL Finance Pty Ltd, Seqirus (Australia) Pty Ltd, CSL Innovation Pty Ltd, Seqirus Pty Ltd, CSL Behring
(Australia) Pty Ltd, Seqirus Holdings Australia Pty Ltd and CSL IP Investments Pty Ltd. Under this deed, each company
guarantees the debts of the others. By entering into the deed, these specific wholly-owned entities have been relieved from
the requirement to prepare a financial report and directors’ report under Class Order 2016/785 (as amended) issued by the
Australian Securities and Investments Commission.

The entities that are parties to the deed represent a ‘Closed Group’ for the purposes of the Class Order, and as there are no other
parties to the deed of cross guarantee that are controlled by CSL Limited, they also represent the ‘Extended Closed Group’.
A consolidated income statement and a summary of movements in consolidated retained profits for the years ended
30 June 2023 and 2022 and a consolidated balance sheet as at each date for the Closed Group is set out below.

Income Statement

Sales and service revenue

Other income

Total operating revenue

Cost of sales

Gross profit

Dividend income

Finance income

Research and development expenses

Selling and marketing expenses

General, administration and other expenses

Finance costs

Profit before income tax expense

Income tax credit/(expense)

Profit for the year

Consolidated Closed Group

2023
US$m

2022
US$m

1,124

1,203

(813)

390

1,257

(161)

(60)

(125)

(58)

1,259

1,281

1,181

1,197

(801)

396

935

(157)

(64)

(165)

(45)

909

(28)

881

157

CSL Limited Annual Report 2022/23Note 21: Deed of Cross Guarantee continued

Balance Sheet

CURRENT ASSETS

Cash and cash equivalents

Receivables and contract assets

Inventories

Total Current Assets

NON-CURRENT ASSETS

Other receivables

Other financial assets

Property, plant and equipment

Deferred tax assets

Intangible assets

Retirement benefit assets

Total Non-Current assets

TOTAL ASSETS

CURRENT LIABILITIES

Trade and other payables

Provisions

Interest-bearing liabilities and borrowings

Other current liabilities

Total Current Liabilities

NON-CURRENT LIABILITIES

Trade and other payables

Interest-bearing liabilities and borrowings

Provisions

Other non-current liabilities

Total Non-Current Liabilities

TOTAL LIABILITIES

NET ASSETS

EQUITY

Contributed equity

Reserves

Retained earnings

TOTAL EQUITY

Summary of movements in retained earnings of the Consolidated Closed Group

Retained earnings at beginning of the financial year

Net profit

Actuarial gain/(loss) on defined benefit plans, net of tax

Dividends paid to CSL Limited shareholders

Retained earnings at the end of the financial year

158

Consolidated Closed Group

2023
US$m

2022
US$m

699

279

1,002

265

19,541

1,881

131

21,836

22,838

1,330

167

–

1,558

664

1,512

2,242

3,800

19,038

517

437

18,084

19,038

2023
US$m

17,888

1,281

–

(1,085)

18,084

2,292

562

232

3,086

3,021

14,641

1,334

19,103

22,189

1,344

158

1,573

404

1,331

1,803

3,376

18,813

484

441

17,888

18,813

2022
US$m

18,048

881

(2)

(1,039)

17,888

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 22: Parent Entity Information

Information relating to CSL Limited (parent entity)

(a) Summary financial information

The individual financial statements for the parent entity show the following aggregate amounts:

Profit for the year

Total comprehensive income

Current assets

Total assets

Current liabilities

Total liabilities

Contributed equity

Reserves

Retained earnings

Net assets/Total equity

2023
US$m

931

375

11,438

460

4,806

517

(54)

6,169

6,632

2022
US$m

507

351

7,089

314

337

483

(54)

6,323

6,752

(b) Guarantees entered into by the parent entity

The parent entity provides certain financial guarantees in the ordinary course of business. No liability is recognised in relation
to these guarantees as the fair value of the guarantees is immaterial. These guarantees are mainly related to the external debt
facilities of the Group. In addition, the parent entity provides letters of comfort to indicate support for certain controlled entities
to the amount necessary to enable those entities to meet their obligations as and when they fall due, subject to certain
conditions (including that the entity remains a controlled entity).

The parent entity did not have any material contingent liabilities as at 30 June 2023 and 2022. For information about guarantees
given by the parent entity, please refer above and to Note 21.

(d) Contractual commitments for the acquisition of property, plant and equipment

The parent entity did not have any material contractual commitments for the acquisition of property, plant and equipment
as at 30 June 2023 and 2022.

159

CSL Limited Annual Report 2022/23Note 23: Non-Controlling Interests

VFMCRP is the only Group’s subsidiary with material non-controlling interests. VFMCRP is registered in St. Gallen, Switzerland.
Following the acquisition of CSL in August 2022 (Note 2), the Group owns 55% of the share capital and voting rights of VFMCRP,
while Fresenius Medical Care (FMC) holds 45% of the share capital and voting rights. The minority shareholder has extensive
protection rights. In the event of disagreement, the Group has the casting vote within a defined escalation process.

Summarised financial information (before any intercompany eliminations) of VFMCRP:

Statement of Comprehensive Income information:

Net sales

Other income

Operating profit (EBIT)

Net profit

Other comprehensive income (OCI)

Balance Sheet information:

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Equity before appropriation of earnings

Statement of Cash flows information:

Cash flows from operating activities

2023
US$m

786

120

112

–

757

2,986

201

392

3,150

387

VFMCRP paid dividends of $154m during the year ended 30 June 2023 to FMC (2022: Nil), which included the non-controlling’s
share of the proceeds received by VFMCRP ($173m) from the sale of investment in shares.

160

Notes to the Financial StatementsCSL Limited Annual Report 2022/23Note 24: Subsequent Events

Other than as disclosed elsewhere in these statements, there are no matters or circumstances which have arisen since the end
of the financial year which have significantly affected or may significantly affect the operations of the Group, results of those
operations or the state of affairs of the Group in subsequent financial years.

Note 25: Amendments to Accounting Standards and Interpretations

(a) Amendments to accounting standards and interpretations adopted by the Group

The Group has adopted the following amendment to the accounting standards. This change did not have a material impact
on the Group’s accounting policies nor did it require any restatement.

• AASB 2020-3 Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and Other Amendments

– Reference to the Conceptual Framework – Amendments to AASB 3 Business Combinations

– Property, Plant and Equipment – Proceeds before Intended Use

– Onerous Contracts – Cost of Fulfilling a Contract

– Derecognition of financial liabilities – Amendments to AASB 9 Financial Instruments

(b) Amendments to accounting standards and interpretations not yet effective for the Group

A number of other accounting standards and interpretations have been issued and will be applicable in future periods. While
these remain subject to ongoing assessment, no significant impacts have been identified to date. These standards have not
been applied in the preparation of these Financial Statements.

Applicable to the Group for the year ending 30 June 2024:

• AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of

Accounting Estimates

• AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from

a Single Transaction

• AASB 2022-7 Amendments to Australian Accounting Standards – Editorial Corrections and Repeal of Superseded and

Redundant Standards

• AASB 2023-2 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules

Applicable to the Group for the year ending 30 June 2025 or after:

• AASB 2014-10, AASB 2015-10, AASB 2017-5 and AASB 2021-7 Amendments to Australian Accounting Standards

– Amendments to AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates and Joint Ventures

and Editorial Corrections

• AASB 2020-1, AASB 2020-6 and AASB 2022-6 Amendments to Australian Accounting Standards – Classification of Liabilities

as Current or Non-current

– Amendments to AASB 101 Presentation of Financial Statements including non-current liabilities with covenants

• AASB 2022-5 Amendments to Australian Accounting Standards – Lease Liability in a Sale and Leaseback

161

CSL Limited Annual Report 2022/23Directors’ Declaration

1) In the opinion of the Directors:

a) the Financial Statements and notes of the Company and of the Group are in accordance with the Corporations Act 2001

(Cth), including:

giving a true and fair view of the financial position of the Company and the Group as at 30 June 2023, and the
performance of the Company and the Group for the year ended 30 June 2023; and

ii. complying with Australian Accounting Standards and Corporations Regulations 2001 (Cth).

b) there are reasonable grounds to believe that the Company and the Group will be able to pay its debts as and when they

become due and payable.

2) About this Report (a) in the notes to the Financial Statements confirms that the financial report complies with International

Financial Reporting Standards as issued by the International Accounting Standards Board.

3) This declaration has been made after receiving the declarations required to be made to the directors in accordance with

section 295A of the Corporations Act 2001 (Cth) for the financial period ended 30 June 2023.

4) In the opinion of the Directors, as at the date of this declaration, there are reasonable grounds to believe that the

members of the Closed Group identified in Note 21 (Deed of Cross Guarantee) of the Financial Statements will be able to
meet any obligations or liabilities to which they are or may become subject, by virtue of the Deed of Cross Guarantee dated
3 February 2017.

This declaration is made in accordance with a resolution of the directors.

Brian McNamee AO
Chairman

Melbourne
14 August 2023

Paul McKenzie
Managing Director

162

Notes to the Financial StatementsCSL Limited Annual Report 2022/23

Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001

Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au

Independent auditor’s report to the members of CSL Limited

Report on the audit of the financial report

Opinion
We have audited the financial report of CSL Limited (the Company) and its subsidiaries (collectively
the Group), which comprises the consolidated balance sheet as at 30 June 2023, the consolidated
statement of comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the year then ended, notes to the financial statements, including a
summary of significant accounting policies, and the directors’ declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:

a. Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2023

and of its consolidated financial performance for the year ended on that date; and

b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.

Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial report of the current year. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide
a separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
financial report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial report. The results of our audit procedures, including the
procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying financial report.

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

163

CSL Limited Annual Report 2022/23

Page 2

Existence and valuation of inventories

Why significant

How our audit addressed the key audit matter

At 30 June 2023, the Group holds inventories of $5,466
million which are recorded at the lower of cost and net
realisable value.

The Group’s accounting for inventories is complex due to the
nature of products being manufactured requiring multiple
inputs into the determination of cost and the need to ensure
the effect of inventory sales within the Group is appropriately
considered in the determination of cost.

Provisions may be recognised in relation to all components of
inventories, including raw materials, work in progress and
finished goods in considering whether inventories are carried
at the lower of cost and net realisable value. The Group
considers a number of factors when determining the
appropriate level of inventory provisioning, including expiry
dates, current selling prices and achieved margins.

Due to the significant value of inventories, global
distribution, intra-group transactions and the judgements
involved in determining whether inventory is carried at the
lower of cost and net realisable value, the existence and
valuation of inventories was considered a key audit matter.

The Group’s disclosures with respect to inventories are
included in Note 5 of the financial report.

We have assessed the carrying value of inventories, including
the determination of cost and provisions required to ensure
inventory is carried at the lower of cost and net realisable
value at 30 June 2023.

We assessed the appropriateness of the determination of
inventory cost by assessing the accuracy of the standard cost
approach used by the Group and assessing the recognition of
variances from those standard costs.

We assessed the elimination of any unrealised profits on
sales of inventories between group entities and resultant tax
consequences by the Group.

We assessed whether inventory is recognised at the lower of
cost and net realisable value at period end by comparing the
inventory value measured at cost to evidence supporting net
realisable value such as the current selling prices and
achieved margins.

We considered whether the Group’s inventory provisioning
policy appropriately identified and considered the
obsolescence and expiration of inventory. We assessed the
mathematical accuracy of the Group’s provisioning
calculations, recalculated inventory provisions in line with
Group policy and considered any specific inventory valuation
risks identified through our inventory cost, NRV and
observation procedures.

We assessed the Group’s stock taking procedures which
included attendance at periodic cycle counts or through
attendance at year-end inventory stocktakes in locations with
significant inventory holdings. We remained alert for
obsolescence issues during our observation of physical
inventories.

We have assessed the Group’s disclosures with respect to
inventories in Note 5 of the financial report.

CSL Vifor Acquisition

Why significant

How our audit addressed the key audit matter

On 9 August 2022, the Group received the final regulatory
approval for the acquisition of Vifor Pharma Group (now CSL
Vifor) and obtained control effective from that date.

The total consideration paid by the Group amounted to
$11,665 million as disclosed in Note 2.

Accounting for this transaction required the Group to
exercise significant judgement to determine the fair value of
acquired assets and liabilities assumed, in particular the
identification and valuation of intangible assets and
inventory.

We read the underlying transaction agreements to gain an
understanding of the key terms and conditions and assessed
whether the Group accounting treatment appropriately
reflected these transaction conditions and complied with the
requirements of Australian Accounting Standards.

We assessed the appropriateness of the criteria used for the
determination of the acquisition date and the total
consideration paid.

We considered the values ascribed by the Group to the
assets acquired and liabilities assumed at acquisition date.

The Group’s disclosures with respect to this acquisition are
included in Note 2 of the financial report.

With the assistance of our valuation specialists, we assessed
the:

•

reasonableness of the valuation assumptions used
by the internal and external experts in their
determination of fair value of the acquired assets
and liabilities

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

164

Notes to the Financial StatementsCSL Limited Annual Report 2022/23

Page 3

Why significant

How our audit addressed the key audit matter

•

competence, qualifications and objectivity of the
internal and external experts; and

whether the fair values were appropriately
recorded in the financial report.

We recalculated the value of residual goodwill and assessed
the reasonableness of the Group’s allocation of goodwill to
its cash generating units.

Our tax specialists in Australia and Switzerland considered
the Group’s accounting for the taxation impacts of the
transaction.

We assessed the adequacy of the financial report disclosures
in Note 2.

Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Company’s 2023 annual report other than the financial report and our
auditor’s report thereon. We obtained the directors’ report that at is to be included in the annual
report, prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the
annual report after the date of this auditor’s report.

Our opinion on the financial report does not cover the other information and we do not and will not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.

In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.

In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

165

CSL Limited Annual Report 2022/23

Page 4

Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:

►

Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.

► Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.

► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by the directors.

► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.

► Evaluate the overall presentation, structure and content of the financial report, including the

disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.

► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or

business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

166

Notes to the Financial StatementsCSL Limited Annual Report 2022/23

Page 5

We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.

From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.

Report on the audit of the Remuneration Report

Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30
June 2023.

In our opinion, the Remuneration Report of CSL Limited for the year ended 30 June 2023, complies
with section 300A of the Corporations Act 2001.

Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.

Ernst & Young

Kylie Bodenham
Partner
Melbourne
14 August 2023

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

167

CSL Limited Annual Report 2022/23

Corporate Directory

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Ernst & Young
8 Exhibition Street
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GPO Box 67
Melbourne VIC 3001
Telephone: +61 3 9288 8000
Facsimile: +61 3 8650 7777

Registered Head Office

CSL Limited
ABN 99 051 588 348
655 Elizabeth Street
Melbourne VIC 3000
Australia
Telephone: +61 3 9389 1911
Facsimile: +61 3 9389 1434
CSL.com

Further Information

For further information about CSL and its operations, refer
to Company announcements to the Australian Securities
Exchange and our website: CSL.com

Find out more CSL.com

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CSL Limited Annual Report 2022/23CSL.com