Annual Report
2023/24
Driven by Our Promise
CSL provides lifesaving products to patients in more than
100 countries and employs 32,000+ people. We are helping
to shape a healthier world that enriches all our communities.
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 protects the health
of communities around
the world. CSL Values
guide the organisation
in creating sustainable
value for its stakeholders.
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
Superior Performance
Make yourself proud
Collaboration
Adventure together
Cover page image
Logan C.
Haemophilia B Patient
Logan’s Story
Logan is juggling the busy life of a college
senior while managing his haemophilia B.
Logan is an active presence on campus, working on dual
degrees in Finance and Business Economics. As he prepares
to finish his education and enter the business world, Logan is
taking the same approach to life as he has with his rare disease
by taking on the challenges in front of him.
Logan C.
Haemophila B Patient
Limited Annual Report 2023/24
One CSL
Message from the Chair
4
Message from the CEO
5
Performance
CSL’s 2030 Strategy
8
CSL’s Sustainability Strategy
10
Value Creation
12
Material Risks
14
CSL’s Businesses and Outlook
16
Innovation
Therapeutic Areas and
Product Portfolio
20
Innovation
26
In this report
2024
13 August – Annual results and final
dividend announcement
9 September – Shares trade
ex‑dividend
10 September – Record date for
final dividend
2 October – Final dividend paid
29 October – Annual General Meeting
31 December – Half Year ends
2025
11 February – Half Year results and
interim dividend announcement
10 March – Shares trade ex‑dividend
11 March – Record date for
interim dividend
9 April – Interim dividend paid
30 June – Full Year ends
19 August – Annual profit and
final dividend announcement
9 September – Shares trade
ex‑dividend
10 September – Record date for
final dividend
3 October – Final dividend paid
28 October – Annual General Meeting
31 December – Half Year ends
CSL Calender
About this Report
This Annual Report combines CSL’s
financial and non-financial performance
in one comprehensive report, linking our
sustainability and strategic priorities to our
business results. Unless otherwise stated,
this report covers CSL’s controlled entities
as disclosed within our consolidated entity
disclosure statement included within our
financial report.
This 2024 Annual Report is a summary
of CSL’s operations and activities for the
12-month period ended 30 June 2024
and financial position as at 30 June 2024.
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.
Promising Futures
Page 34
Annual General Meeting
The 2024 Annual General
Meeting (AGM) of CSL Limited
(ABN 99 051 588 348) will be held
on Tuesday, 29 October 2024
at 10 a.m. (Melbourne time)
at RACV City Club, Level 17,
501 Bourke St, Melbourne 3000.
Read more at investors.csl.com
Healthier World
Page 42
Governance
Governance
56
Directors’ Report
Remuneration Report
77
Financial Report
Financial Report
106
Shareholder Information
Shareholder Information
154
Distribution of Holdings
155
Glossary
159
Corporate Directory
Back cover
Operating and Financial Review
1
One CSL
CSL is a global
biotechnology company
with a dynamic portfolio
of lifesaving medicines,
including those that
treat haemophilia and
immune deficiencies,
vaccines to prevent
influenza, and therapies
in iron deficiency and
nephrology.
Since our start in 1916, we have
been driven by our promise to save
lives using the latest technologies.
Today, CSL – including our three
businesses, CSL Behring, CSL
Seqirus and CSL Vifor – provides
lifesaving products to patients
in more than 100 countries and
employs 32,000+ people.
Employees
North America
19,189
59%
Europe, Middle East,
Africa (EMEA)
8,075
25%
Australia and New Zealand
3,107
9%
United Kingdom
1,093
3%
Asia
1,004
3%
South America
230
1%
Global presence
CSL Behring
& CSL R&D
Australia
China
Germany
Switzerland
United States
CSL Seqirus &
CSL R&D
United Kingdom
United States
CSL Vifor &
CSL R&D
Switzerland
CSL Plasma
China
Germany
Hungary
Puerto Rico
United States
CSL Vifor
Switzerland
CSL Seqirus
Australia
United Kingdom
CSL R&D
Australia
China
Italy
Japan
Netherlands
Spain
United Kingdom
United States
Regional Sales
and/or Distribution
Head Office
Melbourne, Australia
US$2.64
dividend per share
for 2024
100+
countries that CSL
provides lifesaving
products to patients
US$5.8b
in R&D investments in
the last 5 years to advance
CSL’s product pipeline
110 million
influenza doses
distributed in FY24
US$14.8b
in annual revenue
349
plasma collection centres
across China, Europe and
North America
32,000+
globally
2
Limited Annual Report 2023/24
Businesses
CSL Behring discovers, develops
and delivers innovative therapies
for people living with a range of rare
and serious health conditions.
CSL Seqirus is a major contributor to
the prevention of influenza globally
and a transcontinental partner in
pandemic preparedness.
CSL Vifor is a global partner of choice
for pharmaceuticals and innovative,
leading therapies in iron deficiency
and nephrology.
Find out more on page 16
Find out more on page 17
Find out more on page 18
Operating in
40+
countries around
the world
3
Message from the Chair
Dear Shareholders,
I am pleased to share our results and
operating review for the 2023/24
financial year. On behalf of your Board,
I am once again proud to report
that CSL has had a productive year
where we have delivered for patients,
communities and shareholders.
In doing so, our people have
demonstrated resilience and resolve
in a complex operating environment.
CSL is a truly global organisation.
We help patients in over 100 countries
around the world. External challenges
will always be present, but we must
concentrate on what we can control.
Through our focus we have been
able to deliver strong financial results
this year. I extend my thanks to our
Global Leadership Group, and all our
colleagues throughout the world, for
their commitment.
Staying focused
CSL has remained acutely focused
on our strategy and the therapeutic
areas that we target. This is where
we can make the biggest difference.
You can read about our strategy in this
document, but to put it in my words,
it is about tackling complex problems
where we believe we have a distinct
advantage and doing this at scale.
Where possible, we innovate in these
areas so we can better protect people
and communities in the future.
Our track record demonstrates that this
has been a good formula for patients
and shareholders alike. There remains
strong unmet need in our areas of focus,
and as long as this is the case, we see the
opportunity for growth in your company.
The best way to achieve these growth
aspirations is through our strategy.
While we may see some minor changes,
your Board is confident that this is the
right framework: we believe we have
the right building blocks to deliver
sustainable, profitable growth.
Dr Brian McNamee AO
Chair
The Board also spent time in the United
States this year meeting with important
external partners and stakeholders,
hearing from health experts including
prescribers, payors and health
economists as well as other investors
in the biotech market. This provided
Directors and the management
team with invaluable insights into the
global themes currently shaping CSL’s
operating and strategic environment.
We have also been listening to feedback
from our investors. Remuneration
has been a particularly important
topic since our Annual Shareholder
Meeting in October last year. Talent
is a critical factor in driving company
performance and remuneration is a
key component of this. Your Board
has discussed our remuneration
framework extensively with our key
stakeholders and has made several
changes this year. Details of these can
be found on page 77. We will continue
to listen and respond to feedback in
relation to our remuneration approach
as well as any other issues important
to our shareholders.
Your Board is confident in the outlook
for CSL’s ability to deliver sustainable,
profitable growth for our shareholders.
Once again, on behalf of the Board,
I’d like to extend my thanks for
your support.
It has now been just over two years
since we closed the acquisition of Vifor
Pharma. We saw then, as we do now,
a company with the right capabilities,
competencies and adjacencies to CSL,
that would contribute to our long‑term
growth agenda. This view has not
changed, but shareholders will be aware
that the business has experienced
several near-term challenges. We were
prepared for some of these, but others
were unexpected. This is disappointing,
but I am confident that the leadership
group have the right plans in place
to deliver growth from CSL Vifor over
the long-term.
Governance update
Dr Paul McKenzie and his leadership
team are in charge of executing this
strategy. The role of the Board is
to maintain the highest standards
of corporate governance as part
of CSL’s commitment to maximise
shareholder value.
We were pleased to welcome
Ms Samantha Lewis to our Board of
Directors on 1 January 2024. Samantha is
a diligent and experienced Board
member. She currently holds two other
Non-executive Director positions at
leading Australian entities, including
ASX-listed Nine Entertainment Co.
Holdings, where she is Chair of the Audit
and Risk Management Committee.
She has also served as a Non-executive
Director at Aurizon Holdings Limited
and Orora Limited. Samantha’s
responsibilities reflect her deep financial,
audit and risk management knowledge.
Engagement
Another important responsibility of the
Board is to engage with stakeholders
inside and outside of CSL.
This year, the Board held meetings in
Australia, and the east and west coasts
of the United States of America which
gave us an opportunity to spend time
on the ground at some of the operations
that underpin your company’s success.
We had valuable interactions with our
site leaders, discussing the opportunities
and challenges they face in their roles.
The Board left with a strong sense of
optimism, and we were encouraged by
the efficiency and productivity measures
being implemented by our people.
4
Limited Annual Report 2023/24
Message from the CEO
Dear Shareholders,
It gives me great pleasure to share our
annual report for financial year 2024.
This year, CSL reported strong financial
results. This was driven by an exceptional
performance across CSL Behring’s
portfolio, especially immunoglobulins.
The targeted plasma initiatives we have
implemented are driving gross margin
recovery. CSL Seqirus achieved solid
growth in a challenging season, where
its portfolio of differentiated products
outperformed the broader market. For
CSL Vifor, we are well prepared for the
evolving iron market.
Throughout this report, you will find
detailed information regarding the
financial and operating highlights of
CSL throughout the financial year.
I would like to add some of my own
personal reflections.
My Priorities
During the year I reached the milestone
of one year since I started as CSL’s
Chief Executive Officer and Managing
Director. While time has certainly
flown by, every day I am reminded of
the meaningful work our more than
32,000 passionate people do around the
world. When I started, I set out five key
priorities. I am pleased to report that we
have made progress across all of these.
The first two priorities concentrated
on the financial performance of CSL.
Top line growth across our core franchises
was achieved in a difficult operating
environment. Our immunoglobulin
franchise grew strongly, at 21%. For CSL
Seqirus, our adjuvanted FLUAD® product
grew 16%. I also wanted us to concentrate
on realising cost of goods sold efficiencies.
Our CSL Behring gross margin recovery is
underway, and there are several initiatives
assisting in this goal that you can read
about on page 16. We also see additional
opportunities that include potential
synergies with CSL Vifor, and a refreshed
commercial operating model. Although
these are financial metrics, they represent
the hard work and ingenuity of a wide
variety of our people across multiple
functions. The continuous improvement
mindset they have shown will continue to
be a great benefit to our company.
We aim to deliver sustainable, profitable
growth over the long run, so the next
two priorities focus on laying the
foundations for the future of CSL.
It is important that we maintain many
options in our R&D pipeline and deliver
results within our investment envelope.
During the year, the first patients
were dosed with HEMGENIX®, the
groundbreaking gene therapy for
haemophilia B patients that was
developed in partnership with uniQure.
It’s a treatment that was honoured with
the distinguished Prix Galien award for
Best Product for Rare/Orphan Diseases.
Japan’s Ministry of Health, Labor and
Welfare (MHLW) were also the first to
approve KOSTAIVE®, the world’s first
self‑amplifying mRNA (sa-mRNA)
COVID-19 vaccine for initial vaccination
and booster for adults 18 years and older.
The sa-mRNA technology has the
potential to create more potent cellular
immune responses and increase duration
of protection, whilst using considerably
lower doses of mRNA. This approval
marks an historic achievement as the
first sa-mRNA vaccine to be registered
in the world and represents a significant
milestone for our partnership with
Arcturus Therapeutics. We also filed
for regulatory approvals in the US and
EU for garadacimab, our homegrown
monoclonal antibody aimed at helping
people with hereditary angioedema.
The future is digital, and we have been
investing in new technologies to drive
business performance. Our new facilities
in Australia and Europe are equipped with
state of the art, advanced manufacturing
technology that will help support the
future productivity of our sites. We are also
using digital technology to customise our
donor application to provide donors with
a more personalised experience.
My final priority is about the most
important part of CSL: our people.
That is to attract, engage, develop and
retain next generation leaders. Promising
Futures is how we articulate the purpose
and possibility of our people at CSL.
It describes an environment in which
everyone can fulfill their potential while,
at the same time, meeting the needs of
the business. We are always aiming to do
better in this space, and I encourage you
to read more about this on page 34.
On this topic, over the past year our
Global Leadership Group (GLG) has been
bolstered by several new appointments.
I am pleased CSL can attract such
strong talent to our team as we deliver
on our 2030 Strategy. Joining us were,
Kate Priestman as Chief Corporate &
External Affairs Officer, Roanne Parry
as Chief Human Resources Officer, and
Dave Ross as Senior Vice President &
General Manager, CSL Seqirus. Ken Lim
also joined the GLG on a permanent
basis as Executive Vice President and
Chief Strategy Officer after leading the
CSL Seqirus business on an interim
basis. You can read more about the GLG,
including their work history, on page 62.
Dr Paul McKenzie
Chief Executive Officer and
Managing Director CSL Limited
Staying true to our purpose
While these developments have been
extremely positive for your company, we
operate in an industry characterised by
uncertainty. Unfortunately, not all our
targeted projects will pay off. In February,
we announced the top-line results from
the Phase III AEGIS-II Trial evaluating the
efficacy and safety of CSL112.
Unfortunately, the study did not meet
its primary efficacy endpoint. I’d like
to thank all the patients, families,
caregivers, and investigators for their
support and participation in the study.
As a company, we learned a lot from this
ambitious trial, and the outcome will not
affect our resolve. As Brian has shared,
focus has been a key to CSL’s success
over the long run and it will continue to
be a defining feature of our strategy.
We know there’s always another
life to save, another disease to treat,
and another way to address the
ever‑changing challenges facing
healthcare around the world.
Outlook
Over the longer term, like Brian and
the Board, I believe your company is
in a good position to deliver value for
shareholders. CSL possesses leading
positions in growing global markets
with strong unmet need. Our three
business units – CSL Behring, CSL
Seqirus and CSL Vifor – are underpinned
by best-in-class, durable products,
and an innovation pipeline focused on
new therapies and new indications.
Our embedded know‑how in scaled
manufacturing platforms is driving
efficiencies and improvements in yield.
By serving significant unmet patient
needs and adding value to healthcare
systems, we continue to deliver
sustainable and profitable growth,
support innovation, and generate
returns for our shareholders.
I look forward to updating you on the
progress we make, but in the meantime
please take the time to digest the
information presented in this report.
As ever, thank you for your support
of CSL.
5
Financial
Operational
Delivering a step change in
commercial execution with growth
across the portfolio.
Supporting growth in operating profit
and earnings per share (EPS).
•
A strong year with NPATA attributable to equity holders
of US$2.91 billion for the year ended 30 June 2024,
up 11% on a reported currency basis when compared to
the prior comparable period.
•
Strong growth in Immunoglobulins portfolio,
up 20% at constant currency.
•
CSL Seqirus revenue up 4% at constant currency driven
by strong growth in FLUAD®.
•
CSL Vifor well positioned for an evolving iron market.
•
Record levels of plasma collections.
•
110 million influenza vaccine doses distributed by
CSL Seqirus.
•
Base fractionation capacity completed at
Broadmeadows and Marburg.
•
Participated in 479 regulatory inspections of our
manufacturing facilities and plasma collection centres.
•
Vifor cost synergies delivered ahead of expectation.
•
Rika rollout in 84 centers as at 30 June 2024, and on track
for completion by the end of FY2025.
I-Nomogram gained FDA
clearance with clinical
trials showing an average
10% increase in the volume
of plasma collected per
donation with an average
collection time of less than
35 minutes.
Continuing to support
life and data scientists
with automation, artificial
intelligence and stronger
data and analystics
programs.
Performance
US$14.8b
Group revenue
US$2.91b
NPATA attributable
to equity holders
US$2.64
Total ordinary dividends
3.8m
CSL Plasma app
downloads to date
84 Centres
Rika Plasma Donation
System™ Rollout
2024
2023
13.3
2024
2023
2.36
27% on 2023
2024
2023
3m
NPATA 11% on 2023
at reported currency
2024
2023
2.61
6
Limited Annual Report 2023/24
Progress made with mRNA
vaccine technology marking
an historic achievement and
a significant milestone for
our partnership with Arcturus
Therapeutics, Japan’s MHLW
approved KOSTAIVE®, the
world’s first sa-mRNA
COVID-19 vaccine for initial
vaccination and booster for
adults 18 years and older.
Strengthening existing
partnerships including
joining Brandon Capitol’s
new BioCatalyst Fund 6,
extending the partnership
with BaseLaunch and joining
Biopôle SA’s R&D campus
in Lausanne.
Sustainability
Focused on innovative products,
innovative manufacturing processes
and protecting the health of patients
and the general public.
•
Set new initial goals in support of performance across
CSL’s sustainability focus areas that seek to enable a
healthier world, also embedding health equity and
empowerment and inclusion and belonging as part of
CSL’s strategic focus areas.
•
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.
•
Continue to advance best-in-class plasma donor
experience with the rollout of the Rika Plasma Donation
System™, Project REACH and individualised nomograms.
Research and development
Evolving our sustainability strategy,
creating a foundation for success and
shared value creation through 2030
and beyond.
•
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.
•
HEMGENIX®, the first FDA-approved gene therapy for
adults with haemophilia B, won Best Product for Rare/
Orphan Diseases at the 2023 Prix Galien USA Award.
87
product registrations
or new indications in
28 countries
74.8%
Employee engagement
index 2024
13
clinical trial results were published
on an ICMJE‑recognised public
clinical trial registry
US$15.7m
in product
access support
7
clinical trials had a first patient
enrolled during the year
90%
Donors willing
to refer a friend
56%
women at the
Board level
12% on 2023
2024
2023
44%
59%
women across
CSL
Equal to 2023
2024
2023
59%
7
Read more at csl.com/we‑are‑csl/corporate‑governance/
code‑of‑responsible‑business‑practice
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 CSL people and our
patients at the centre. 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
shown to the right.
CSL’s 2030 Strategy
CO
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Limited Annual Report 2023/24
Our approach
Strategic Pillar
Focus
•
Immunology
•
Haematology
•
Nephrology and transplant
•
Respiratory
•
Cardiovascular
and metabolic
•
Vaccines
•
Delivering groundbreaking
innovation in areas of
unmet need in CSL’s
Therapeutic Areas (which
you can read more about
on page 20)
•
Driven to meet the needs
of patients by leveraging
our scientific and clinical
expertise to provide the
best possible therapies
and vaccines
Innovation
•
Products
•
Delivery
•
Services
•
Technology
•
Yield
•
Disrupting with cutting
edge innovation and a
portfolio of products to
enhance patient care and
public health (for more,
see the Innovation section)
•
Committed to finding
innovative approaches
to increase yield across
core platforms
Efficiency &
reliable supply
•
Technology
•
Operational excellence
•
Capital project execution
•
Partnerships
•
Driving efficiency across
the supply chain, from
collections through
manufacturing and
to patients
•
Striving to maximise
value and deliver
milestones with key
alliances and partnerships
Sustainable
growth
•
Plasma protein
technology
•
Recombinant protein
technology
•
Cell & gene therapy
•
Vaccines technology
•
Iron therapy
•
Growing the value of
key franchises in plasma,
vaccines and iron in a
sustainable way by driving
market access, using
real world evidence and
medical capabilities
•
Continuing to launch
key products and
indications for CSL’s
next phase of growth
Digital
transformation
•
Enterprise Value
•
Worker Productivity
•
Information Velocity
•
Building and leveraging
data and partnerships
to embrace digital
transformation across
its business
•
Prioritise opportunities to
use AI that drive business
value while scaling
user‑friendly tools for
broad productivity
9
CSL’s Sustainability Strategy
Since first announcing
its sustainability strategy
in 2021, CSL continues to
evolve its approach. The
Company’s sustainability
efforts aim to complement
and support achievement
of CSL’s long-term strategy,
establishing a foundation
for shared value creation
and enduring success
through 2030 and beyond.
Driven by its vision for a healthier world,
CSL has identified focus areas where
it can have the most positive impact.
These focus areas include existing
emissions and environmental targets
as well as new initial goals for other
focus areas that seek to enable healthier
communities and environments.
The focus areas are guided by CSL’s
material sustainability topics*, which
inform continuous improvement across
its operations and transparency in
areas that matter most to CSL’s key
stakeholders. In 2024, CSL concluded
its sixth materiality assessment and
followed the GRI 3: Material Topics 2021
(GRI 3) standard developed by the Global
Reporting Initiative by understanding
organisational context, identifying actual
and potential negative and positive
impacts, assessing the significance
of impacts and prioritising the most
material impacts for reporting. You can
find more on the materiality assessment
process on CSL.com.
Embed an inclusive culture
where all backgrounds and
perspectives belong, develop,
and thrive
Everyone deserves the
opportunity to achieve and
maintain their highest level of
health and well-being
See Heathier World section, page 42, for more
CSL’s Sustainability Vision
CSL is committed to a healthier world.
Its vision is a sustainable future for its employees,
communities, patients and donors, inspired by
innovative science and a values-driven culture
H
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Strategic
Focus
Strategic
Focus
Donor experience
Patient experience
Access and affordability
Talent and culture
Supplier
Energy
Water
Waste
*
Limited assurance by Deloitte.
10
Limited Annual Report 2023/24
Material topics*
Focus Areas
See pages 50 to 55 for more
Donor experience – create best-in‑class
donor experience in partnership
with donors and communities
Patient experience –
elevate patient experience in drug
development by embedding patient
insights and lived experience
Access and affordability –
advance equitable access to
medicines and vaccines
Talent and culture – attract, develop,
engage and retain top talent with
diversity of identities, cultures,
backgrounds, skills and lived experiences
Supplier – partner with suppliers/third
parties who share CSL’s commitment to
social and environmental responsibility
Energy – undertake initiatives
that reduce emissions internally
and across its supply chain
Waste – divert waste from landfill
through reducing, reusing,
recycling and composting
Water – identify, prioritise and
implement water reduction initiatives
•
Product innovation and research
•
Clinical trial practices
•
Employee development and retention
•
Employee health, safety and
wellbeing
•
Affordability and access to health
•
Product quality and safety
•
Plasma donations
•
Environmental management
•
Climate and carbon, and energy
efficiency
•
Ecosystems and biodiversity
•
Circularity, waste and resource
management
See pages 20 to 32 for more
See pages 34 to 41 for more
See pages 42 to 48 for more
Detailed throughout this report are existing targets, such as CSL’s emissions
reduction targets, and new initial goals in support of performance across the
focus areas detailed above. These include new goals for donor experience,
patient experience and access and affordability, to name a few. Find out
more in the Healthier World section, from page 42.
HEALTHIER COMMUNITIES
HEALTHIER ENVIRONMENT
Sustainability governance
•
Business ethics, integrity and
compliance
•
Data protection and cybersecurity
See pages 64 to 66 for more
*
Limited assurance by Deloitte.
11
Key value drivers
CSL’s value creation cycle
CSL’s people
More than 32,000 people
with diverse skills that drive
the Company’s purpose
and values
Solutions for unmet needs
Opportunities to improve and
protect the quality of life of
patients and communities in
CSL’s therapeutic areas
Business partners
Accessing and sharing
intellectual know-how
to develop and innovate
CSL products
Natural resources
Plasma donations for rare and serious
diseases; influenza virus strains for
vaccine manufacture; iron sources
(including synthetic) for iron-based
products; and environmental inputs
such as water and energy
Read more at csl.com/we‑are‑csl/corporate-
governance/code‑of‑responsible‑business‑practice
Read more at investors.csl.com/
investors/our-corporate-profile
Value Creation
Financial resources
Cash, equity and debt for
future growth
Physical assets
Plasma donation centres to collect
vital raw material, manufacturing
facilities for CSL products,
warehouses, research and
development facilities and offices
for CSL’s people
Early stage
research &
collaboration
Product
development
& clinical
trials
Manufacturing
& distribution
Sales,
marketing,
policy advocacy
& patient
support
Sourcing
(including plasma collection)
Pharmacovigilance
OU
R P
UR
PO
SE
A
ND
V
AL
UE
S
OU
R S
TR
AT
EG
IC
PIL
LA
RS
CO
DE
O
F R
ES
PO
NS
IB
LE
B
US
IN
ES
S P
RA
CT
IC
E
O
UR
E
XP
ER
TI
SE
A
N
D
OP
ER
AT
IO
NS
EF
FIC
IE
NC
Y &
RE
LIA
BL
E S
UP
PL
Y
DIG
ITA
L T
RA
NS
FO
RM
ATI
ON
SU
ST
AIN
AB
LE
GR
OW
TH
FO
CU
S
IN
NO
VA
TI
ON
12
Limited Annual Report 2023/24
The value we create
Powered by research
and development to
identify new indications
for CSL’s existing products,
and innovative new
products for patients
and public health
Collaborative partnerships
to extend CSL’s limits
Provide a safe, rewarding
and productive workplace
for promising futures
Sustainable financial
growth with a focus on
revenue and margins
Empowering CSL’s people through
rewarding jobs, career development
opportunities and professional training
See Promising futures page 34 for more
Enhanced scientific knowledge and skills
through strong collaborations, leading
partnerships and high standards of integrity
in performing clinical trials
See Innovation page 26 for more
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.
See Healthier World page 42 for more
Delivering consistent, profitable and
responsible growth for CSL’s investors,
which fuels innovation and economic
prosperity for multiple stakeholders
Read more at CSL.com/we‑are‑csl/our‑businesses‑and‑products
Responsibly source
materials and inputs
embedding environmental
and social considerations
into work practices
CSL works with partners allowing the Company
to leverage capabilities throughout the value
chain and optimise costs. It also creates economic
opportunities for CSL’s supply partners and the
communities they operate in
What we do
Driven by safety, quality,
reliability, and innovation
in our operations
CSL’s facilities are critical for the development
and manufacture of its life-saving and life
protecting products, while providing a safe
and productive workplace
CSL’s people
Solutions
for unmet
needs
Business
partners
Natural
resources
Financial
resources
Physical
assets
13
Material Risks
CSL operates in a fast paced and constantly evolving
environment of science, technology and healthcare.
Although there are many risks inherent in 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.
CSL is also exposed more broadly to
external risks such as the escalating
trend of cyber threats and data privacy
breaches. Managing risks includes
both the mitigation of disruptive
risks and the preparation for seizing
opportunities. CSL’s Global Enterprise
Risk Management Framework is
designed to provide robust risk oversight
that is fit-for-purpose for both the
operation of CSL’s business and to
support CSL’s strategy and deliver on
CSL’s 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
CSL’s approach to managing them in
the context of delivering on CSL’s 2030
Strategy. Key financial risks are set out
in Note 10 (Financial Risk Management)
to the Financial Statements.
There are other risks that are inherent in
the vaccine, plasma and recombinant
proteins therapies and pharmaceutical
industries, including iron deficiency,
besides those detailed below or in the
Financial Statements, that could also
adversely affect CSL’s business and
operations. These risks are not covered
in this report as they are not considered
material to CSL’s overall operations and
financial position.
Patient safety and
product quality
Patient safety is paramount for CSL’s
ongoing sustainability as a global
biotechnology leader and CSL’s
long‑term strategy of efficiency
and reliable supply.
When CSL talks about patient safety,
CSL means both in the use and
administration of registered products
as well as in the conduct of CSL clinical
trials. Occasionally, patients and trial
participants may sometimes experience
adverse reactions to therapies, CSL’s
manufacturing, product quality
assurance and pharmacovigilance
practices serve to provide high
standards of safety and preserve
CSL’s reputational integrity.
CSL’s processes and procedures adhere
to global good pharmacovigilance
practice (GPV) and good clinical
practice (GCP) standards 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,
CSL prioritises informing participants
about their disease (if applicable) and
the investigational therapy involved
in the trial before obtaining consent.
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 CSL’s marketed products.
In terms of meeting product
quality requirements through CSL’s
manufacturing and supply, CSL adopts
and complies 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.
CSL is frequently inspected by
independent regulatory authorities
auditing compliance with these standards.
Product innovation
and competition
CSL recognises that an impediment
to delivering on CSL’s 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
the platforms and capabilities in plasma
protein technology, recombinant protein
technology, cell and gene therapy and
vaccines technology.
CSL continues to seek out new and
unexplored avenues to tackle the
most pressing medical challenges and
remains committed to investing in
targeted and disruptive R&D innovation
to better meet the needs of patients and
public health. CSL strategically reviews
its existing and future product pipeline
against unmet need and market
demand and continually evaluates
the competitive landscape. A key part
of CSL’s strategy includes thoughtful
diversity through multiple therapeutic
areas and scientific platforms.
CSL incorporates 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 CSL’s
chosen therapeutic areas. In addition,
clinical studies in new therapeutic
and disease areas carry an inherent
higher initial risk of failure as well as
operational and technical challenges,
due to the potential for knowledge
gaps in the relevant medical, scientific
and regulatory environment and the
uncertainty of therapeutic outcomes.
With respect to continued growth
and innovation in the competitive
global influenza vaccine market, CSL
recognises the need to continue leading
in the development and manufacture
of influenza vaccines including cell-
culture technology and investigating
the use of sa-mRNA technology for
the development of both influenza
and COVID-19 vaccines. Embracing
innovative technology is important
in this product sector, unlocking
competitive advantages for success.
14
Limited Annual Report 2023/24
Supply, capacity
and operations
Having a sustainable and reliable supply
chain is critical to the success of CSL’s
2030 Strategy, particularly to achieving
consistent, economical and efficient
supply. Any disruption to supply has
the potential to impact our operations.
CSL constantly monitors the demand
for its products over a 10-year horizon
as well as its capacity to acquire raw
materials essential to the manufacture
of CSL products.
Delivering a positive donor experience
is important to maintain and grow our
collection of plasma. In the plasma
collection centres, CSL uses modern
techniques and technologies to
facilitate a safe and efficient donation
process. It consistently updates its
plasma collection centres to provide a
comfortable and safe donor experience.
External sources of plasma may be used
as needed to supplement collections to
meet demand.
CSL endeavours to invest in
manufacturing capacity ahead of
projected demand to ensure that
it can supply the needs of patients.
Its 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 its
existing facilities.
CSL’s 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. CSL
examines and prioritises its operational
effectiveness efforts, capital plans,
inventory targets, supply chain visibility,
distribution and regulatory strategies
to enhance the positions of its products
from a business continuity and supply
chain resilience standpoint.
Market access
In most countries, pricing and access
are determined by the country’s P&R
(pricing & reimbursement) authorities,
based on clinical and economic
evidence as well as patient outcomes,
using strict appraisal processes.
Policy making may involve
multi‑stakeholder engagement,
which includes governments,
payers/insurers, patient advocacy
groups, medical societies and
non‑governmental organisations.
CSL recognises that if it is not successful
in maintaining an economic and
reliable supply of its therapies for
its stakeholders, or does not adopt
responsible pricing, it may adversely
affect its ability to execute its strategy,
deliver sustainable growth and uphold
CSL’s corporate reputation. CSL
further recognises that as a result of
macroeconomic pressures and other
factors, governments and payers around
the world are putting more emphasis on
affordable pricing and equitable patient
access. The Company works closely with
stakeholders in all countries where it
markets its products to ensure both that
CSL therapies are accessible, and that its
pricing remains competitive, responsible
and reflects the value its therapies bring
to patients and health systems.
People and culture
CSL’s commitment to supporting
its people and strengthening its
inclusive, purpose-driven culture are
integral to meeting and exceeding
the expectations of those it serves, its
stakeholders and the communities in
which the Company lives and works.
It has a variety of programs and policies
in place, including the Speak Up Policy
and the Code of Responsible Business
Practice (CRBP), to ensure that CSL
Values guide how the Company’s people
interact with each other and how CSL
operates around the world. Acting with
integrity, CSL builds trust, which protects
and promotes CSL’s reputation.
It also recognises the need to have the
right people with the right skills in the
right roles. An inability to attract and
hire the right talent may slow progress
towards the 2030 strategy. As it focuses
on attracting, developing and retaining
top talent, CSL regularly reviews best
practices, and benchmarks itself within
the markets in which it operates with
the goal of offering total rewards and
an employee experience that are both
compelling and competitive with
industry peers.
In addition, CSL understands that
the workplace and its employees’
needs are constantly evolving, and the
Company offers flexible work options
and opportunities for them to stay
connected regardless of location. CSL
constantly challenges itself to create an
engaging and collaborative environment
in which its people can continuously
learn and grow professionally, deliver
meaningful work and drive innovation.
Privacy and cybersecurity
The privacy and security of our data,
including that of CSL’s patients, donors
and employees, is of critical importance
to CSL. The Company recognises 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 CSL 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
the Company holds.
To address these challenges, CSL
maintains a proactive stance by
continuously monitoring and assessing
cybersecurity threats. CSL has designed
and implemented security controls
for its IT systems, infrastructure and
data, based on its understanding
of the known threats and industry
best practice.
CSL understands that being aware
and prepared is key when responding
to cyberattacks and safeguarding
data privacy. CSL supports its
employees to mitigate cyber and
privacy risks, by providing ongoing
education and training (including crisis
response simulations and business
continuity exercises).
Further details about CSL’s enterprise
risk management framework and how
it manages its business risks is provided
in CSL’s 2024 Corporate Governance
Statement available on CSL.com
(We Are CSL > Corporate Governance).
Read more at csl.com/we-are-csl/
corporate-governance
15
CSL’s Businesses and Outlook
You can read more about these
technologies in the Innovation section
of this report.
Over the medium term, CSL Behring
is committed to returning gross
margin to pre-COVID levels. In addition
to the initiatives to reduce the cost
per litre of plasma outlined above, Ig
yield improvements are critical to this.
Increasing the amount of Ig extracted
from every litre of plasma will always
be an area of high focus for CSL. Over
the next three to five years, the aim is to
increase Ig yields by using data analytics,
smarter plasma allocation, and through
the implementation of a program of
operational excellence.
Over the longer term, CSL has a
positive outlook for the demand for
its products. Overall, the global Ig
market is expected to grow over the
next five years with continued supply,
and with improved diagnosis rates
in primary immunodeficiency (PID)
post‑COVID. Within this growing Ig
market, both PRIVIGEN® (an intravenous
infusion Ig therapy) and HIZENTRA®
(a subcutaneous Ig infusion therapy)
are expected to gain market share
over this timeframe. CSL is proud of
CSL Behring’s Ig leadership position,
and is poised to expand it.
It is expected that the global
Haemophilia B market will grow over
the coming five years due to the steady
prevalence of the disease and the launch
of novel treatments, including gene
therapies. Within this growing market,
the CSL Behring portfolio is poised to
grow its share of revenue.
The Hereditary Angioedema (HAE)
market is also expected to grow over
the coming five years due to improved
diagnosis rates and new prophylaxis
therapies. Regulatory filing for
garadacimab, CSL’s next generation
HAE therapy, has now been accepted
for review by the FDA and EMA, and it is
anticipated that this product will come
to market in FY25.
The outlook for CSL Behring is positive,
however competitive pressures across
some indications have increased
recently. Based on expected market
dynamics, the depth of CSL’s portfolio,
strong leadership and continued
innovation across rare and serious
diseases, the outlook for CSL Behring
is strong and well-positioned to deliver
sustainable, profitable growth.
Read more at investors.csl.com
CSL Behring’s operating units cover
the journey from donor to patient.
The focus of plasma collection is
threefold; growing plasma volume
while concurrently reducing the unit
acquisition cost and enhancing the
donor experience. Its manufacturing
capability is focused on fractionating
the plasma collected, improving Ig and
albumin yield and transforming it into
CSL’s portfolio of innovative medicines,
as well as delivering supply of our
recombinant medicines. CSL Behring’s
commercial teams around the world
are engaged with healthcare providers,
payors and key stakeholders working
to meet patient needs, and to deliver
successful launches of CSL’s life-saving
therapies, providing access to more
people with rare and serious diseases.
In the short term, one of CSL Plasma’s
key priorities is sourcing a sufficient and
sustainable volume of plasma to meet
the growing need for CSL’s medicines.
Plasma-derived therapies have a
nine-to-12-month manufacturing cycle,
so increasing collections in a sustainable
way today is critical to CSL’s ability to
increase the supply of therapies to
patients in the future. Currently CSL
Plasma teams are focused on reducing
the overall cost per litre of plasma by
optimising donor experience, improving
centre productivity and innovation,
including through the rollout program
for the RIKA plasmapheresis technology
and individual nomograms.
16
Limited Annual Report 2023/24
4. Continue to invest in manufacturing
capabilities, platforms, and
partnerships to keep pace with the
growing demand for cell-based
vaccines, support the launches of
sa‑mRNA vaccines, and to ensure
CSL meets and exceeds the needs of
the healthcare providers it serves.
Over the short-term two current trends
will likely continue to evolve. First, the
exciting acceleration of new vaccine
technologies will likely continue.
CSL Seqirus is well positioned with its
technology platforms (cell, adjuvants,
and sa-mRNA) and our R&D pipeline.
CSL has also observed reduced rates of
immunisation following the pandemic.
Against this backdrop, CSL expects its
differentiated vaccine portfolio to deliver
ongoing value to public health systems.
Seasonal influenza remains one of the
most consequential vaccine preventable
diseases due to its significant morbidity
and mortality, with unmet need across
all populations, and with particular
risk to the very young, as a result of
immature immune systems, and in
older adults where immune systems
start to wane over time. CSL Seqirus’
recent growth has been underpinned
by our differentiated products – FLUAD®
and FLUCELVAX® – which have been
designed to help address these
unmet needs.
CSL expects to continue this growth
over the medium-term, fueled by
an ever‑growing body of real‑world
evidence that demonstrates the
benefits of CSL Seqirus’ Influenza
vaccine portfolio.
CSL is also planning to extend the
indication of FLUAD® to populations
50 years+ and FLUCELVAX® to 6 months+
in a number of key markets to ensure
the broadest possible access to these
differentiated vaccines. Additionally,
CSL is advancing key development
programs, including aTIVc and sa-mRNA
with the goal of leading important
innovation to further address the unmet
need within the influenza vaccine space.
CSL is also keen to bring the anticipated
benefits of sa-mRNA COVID vaccine
to market. CSL Seqirus’ current efforts
are focused on finalising clinical work
and regulatory submissions in major
markets around the world, enabling
commercial launches over the next
one to three years.
Over the longer time frame, CSL’s
strategy of differentiation and
continuous innovation aims to protect
ever-growing communities around
the world and clearly establish CSL’s
leadership within the markets it serves.
Read more at investors.csl.com
The CSL Seqirus strategy focuses on
four key pillars:
1. Continue to grow the influenza
franchise, further evolving our
portfolio to innovative differentiated
products that address unmet public
health needs.
2. Continue to build on pandemic and
pre-pandemic influenza leadership.
Pandemic preparedness is a critical
public health imperative and an
important part of the CSL Seqirus
business as it leverages core
capabilities and unique partnerships
with governments and other
key stakeholders. Today, CSL has
more than 30 agreements with
Governments around the world
where it is uniquely positioned to
respond in the event of an influenza
pandemic. With CSL Seqirus’
ongoing investments to continually
enhance manufacturing capabilities
and network, development of CSL
Seqirus’ sa-mRNA platform, and
the strong collaborations with
governmental partners, CSL Seqirus
is well positioned to respond to the
public health need in the event of
a pandemic.
3. Broaden global portfolio beyond
influenza. CSL is excited about its
self-amplifying mRNA technology
which it believes will allow us
to develop the next generation
COVID-19 vaccine.
17
Over the last two decades, the
principle of PBM has been formulated,
recognising that retaining a patient’s
own blood within their circulatory
system is the most advantageous for
their health. Despite advancements
in medical science, the issue persists:
there is an excessive dependence on
blood transfusions despite their known
risks. This overreliance leads to avoidable
adverse outcomes, depletion of limited
blood resources, and inefficient
use of healthcare funds. CSL Vifor
views a solution to this in PBM: an
evidence‑based approach to improve
outcomes by preserving patient’s
own blood.
Due to the well-established benefits
of PBM, there is positive momentum
behind its implementation, supported
by the World Health Organization,
EU commission and national guidelines.
The stage is set therefore for broadscale
PBM adoption.
CSL Vifor is uniquely positioned in
PBM to translate evidence-based
medicine into evidence-based practice.
The portfolio addresses ID (iron
deficiency)/IDA (iron deficiency anemia)
management pre and post operation to
reduce blood transfusions and improve
surgical patient outcomes. The CSL
Behring portfolio addresses minimising
blood loss through optimising
hemostasis and attacking coagulation
deficiencies, therefore reducing
surgical blood use.
Read more at investors.csl.com
By bringing together this expertise and
these products from CSL Vifor and CSL
Behring, CSL is positioned to become
the foremost and reliable partner in
“blood health”, significantly enhancing
patient care.
Over the longer term, CSL is aiming to
strengthen our renal disease position to
offer medicines to patients at all stages
of chronic kidney disease (CKD).
Our ambition is to further expand the
portfolio from dialysis to prevention
of kidney damage, treatment of
CKD complications and transplant.
The market reveals a significant unmet
need. The conditions targeted by CSL
Vifor are inadequately served and
represent a compelling opportunity for
growth. It is estimated that the renal
disease market will grow at a steady
pace. This growth will be driven by
an aging population and increased
prevalence of CKD risk factors such as
diabetes and heart disease. CSL aims
to satisfy this unmet need by further
expanding the portfolio from dialysis to
prevention of kidney damage, treatment
of CKD complications and transplant.
CSL’s Businesses and Outlook
CSL Vifor’s commercial portfolio
addresses significant unmet need
in patient journeys in iron deficiency
and nephrology.
Over the short term, CSL has prepared
for challenges, however its growth
ambitions are supported by multiple
strategic and operational initiatives.
These include geographic expansion,
new indications, enhanced tender
capabilities, investing in real-world
evidence, life cycle management and
driving additional value for the CSL Vifor
and CSL Behring offerings from Patient
Blood Management (PBM).
CSL Vifor is well positioned for the
evolving iron market. The clear ambition
is to retain a leadership position in
iron despite the competitive generic
environment, including the loss of
exclusivity (LoE) of CSL Vifor’s flagship
product FERINJECT® in some markets.
To date, global iron volumes have
remained robust in Europe. This marks
an important moment for the business,
but it is well prepared and strategically
positioned to meet the challenge.
The fact remains that the intravenous
(IV) iron market is largely untapped, with
85% of eligible patients not receiving IV
iron treatment. The market is therefore
expected to continue to grow in volume,
in line with historical trends, presenting
opportunities for CSL Vifor to drive
long‑term, sustainable growth.
18
Limited Annual Report 2023/24
Zahra’s Story
Zahra is living with
hereditary angioedema
(HAE), a rare genetic
condition that causes
dangerous episodes of
swelling throughout
the body.
With her condition now under
control Zahra serves as a Patient
Advocate for CSL, offering advice
and hope for those living with HAE.
Zahra K.
HAE Patient
19
Therapeutic Areas and Product Portfolio
Therapeutic Areas
Immunology
CSL’s world leading immunoglobulin
and plasma protein products are
the cornerstone of the immunology
therapeutic area, which 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).
Building on CSL’s long history of
providing patients with immunoglobulin
products, CSL continues to optimise
the patient experience by developing
more convenient and flexible ways
to dose and administer existing
immunoglobulin products, including
offering the only approved 20%
subcutaneous immunoglobulin therapy
for CIDP (HIZENTRA®) and the only
pre-filled syringe options for patient
self-administration. 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, expanding on current
medicines to provide optimal treatments
for the full range of patients with HAE,
including expanding beyond plasma
products in this area – such as advancing
garadacimab, CSL’s first-in-class
monoclonal antibody targeting activated
Factor XII (FXIIa) as a prospective
long‑term prophylactic treatment for
patients for HAE.
Haematology
CSL remains focused on easing the
burden of disease and improving the
lives of patients with rare bleeding
disorders. Significant progress has been
achieved in recent years in the treatment
of haemophilia A and B through the
introduction of innovative recombinant
coagulation factor medicines
and 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, United Kingdom, Switzerland
and Australia.
Moreover, exciting R&D efforts are
underway to explore potential new
indications in benign haematology and
innovative therapies in haemostasis and
thrombosis. This includes initiating a
pivotal 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 (anti- 2
anti‑plasmin), a first-in-class, chimeric
monoclonal antibody as a 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. A nebulised delivery of
immunoglobulin is an example of the
intersection between immunology
and respiratory disease.
Limited Annual Report 2023/24
20
Cardiovascular and metabolic
CSL is focused on improving and
extending the lives of patients with
cardiovascular and metabolic diseases
which are the leading cause of death
globally, accounting for over 19.8 million
deaths annually in 2022, a number that
is expected to grow to over 23 million
by 2030. Cardiovascular disease (CVD)
is the primary cause of morbidity and
mortality in patients with chronic kidney
disease (CKD), particularly those with
advanced CKD stages (4–5) who have
a markedly elevated risk for CVD. CSL is
addressing the unique cardiovascular
and metabolic complications faced by
the advanced CKD patient.
Clazakizumab, an anti-interleukin-6
(anti-IL-6) monoclonal antibody is
currently in Phase III and is being
developed for the reduction of major
adverse cardiovascular events (MACE)
in dialysis patients with End Stage
Kidney Disease (ESKD). By addressing
the high inflammatory state in ESKD,
clazakizumab has the potential to be the
first therapy to demonstrate a reduction
in the high MACE rate in these patients.
Nephrology and transplant
Most rare renal diseases, such as IgA
nephropathy, have limited treatment
options and often lead to kidney failure at
a younger age compared to most patients
with chronic kidney disease (CKD). This
highlights the urgent need to develop
novel therapies to preserve kidney
function and delay, or avoid, dialysis.
Despite advances in transplantation
improving short-term survival, transplant
rejection is 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 conditions that
may lead to transplant organ failure,
especially for kidney transplant where
CSL’s vision may enable patients to have
only one transplant in their lifetime.
In haematopoietic stem cell
transplantation, acute graft-versus‑host
disease (GvHD) occurs when 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
GvHD therapies. CSL is investigating
Alpha 1 Antitrypsin (AAT, ZEMAIRA®) for
the prevention and treatment of acute
GvHD in two Phase III studies.
Vaccines
CSL has built a foundation of success
in developing and marketing a broad
range of seasonal and pandemic
influenza vaccines and continues its
growth in influenza with expanded age
indications and markets for FLUCELVAX®
and FLUAD®.
Developing new and better vaccines is
a strategic priority for CSL with a focus
on expanding beyond influenza with
the first approval in Japan of its sa-
mRNA COVID-19 vaccine, KOSTAIVE®.
Sa-mRNA technology offers significant
benefits compared to conventional
mRNA, including an enhanced
immune response, and a longer
duration of protection and breadth
against emerging variants. In addition,
CSL is further advancing cell-based
manufacturing technology in products
such as aTIVc (adjuvanted trivalent
influenza vaccine), CSL’s MF59® adjuvant,
and developing the messenger RNA
(mRNA) platform, targeting seasonal
and pandemic potential viruses.
As a trusted partner to more than
30 countries throughout the world,
CSL Seqirus is the leader in preparedness
for pandemic influenza, and continues
to strive to meet the evolving global
pandemic preparedness needs of
governments and health authorities and
to address emerging pandemic threats
by building capabilities to provide
protection beyond influenza.
PLATFORMS
Plasma Protein
Technology
Recombinant
Protein Technology
Cell and Gene
Therapy
Adjuvant
Cell-based Egg-based
mRNA
Find out more about Platforms on page 25
THERAPEUTIC
AREAS
Immunology
Haematology
Respiratory
Cardiovascular
and metabolic
Nephrology and
transplant
Vaccines
21
CSL’s world-class R&D organisation
continues to advance as a biotechnology
leader by delivering transformative
science and technologies developed
by CSL’s own high-calibre scientists
and innovative scientific collaborations.
CSL R&D leverages its expertise in CSL’s
strategic platforms – plasma protein
technology; recombinant protein
technology; cell and gene therapy;
and vaccines technology to develop
and deliver innovative medicines and
vaccines via CSL’s three business units –
CSL Behring, CSL Seqirus and CSL Vifor.
CSL R&D also applies its clinical, safety
and regulatory expertise to support the
CSL Plasma unit. These efforts address
unmet medical needs, help prevent
infectious diseases and protect public
health, enabling people everywhere to
lead full lives and helping CSL grow in
the decades ahead.
CSL’s R&D pipeline
CSL’s strong R&D pipeline includes
potential new treatments that use
these platforms in alignment with its
leading-edge scientific expertise and
commercial capabilities across CSL’s
six therapeutic areas: immunology;
haematology; cardiovascular and
metabolic; respiratory; nephrology
and transplant; and vaccines.
In 2023/24 CSL invested US$1.4 billion
in R&D for 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 comprehensive and
innovative pipeline with the potential
to meaningfully impact the lives of
patients and to public health.
Garadacimab, CSL’s first-in‑class,
home-grown recombinant
monoclonal antibody targeting
activated Factor XII (FXIIa), is being
developed as a prospective, long‑term
prophylactic treatment for patients
with Hereditary Angioedema (HAE).
This innovative therapy represents the
next chapter in CSL’s commitment to
develop optimal treatment options
for the full range of patients with HAE.
Garadacimab is well-tolerated and
convenient, featuring a once-monthly
administration schedule and the
additional patient-friendly benefit
of an autoinjector for ease of use.
Global regulatory filings are currently
under review, and, for the first time
in CSL’s history, the US, EU and Japan
filings were achieved within the same
fiscal year.
Adjuvanted trivalent influenza
vaccine manufactured using a
cell‑based platform (aTIVc) is the next
evolution of CSL’s influenza portfolio.
It combines proven technological
advances, including the use of a
cell-based antigen to address strain
mismatch, CSL’s proprietary MF59®
adjuvant to improve the immune
response, and an optimised dose.
By combining these technologies,
CSL expects aTIVc to set a new
standard of care for influenza
protection in older adults.
FILSPARI® developed by CSL’s partner
Travere Therapeutics, is a novel,
non‑immunosuppressive treatment
being developed for the treatment of
adults with primary immunoglobulin
A nephropathy (IgAN), the most
common type of glomerular disease
worldwide and a leading cause of
kidney failure. It is the first and only
dual receptor antagonist of endothelin
A (ETA) and angiotensin II type I (AT1)
receptors, the two critical pathways
involved in IgAN disease progression.
Therapeutic Areas and Product Portfolio
22
Limited Annual Report 2023/24
Global Research and Development Pipeline
for the period between 1 July 2023 to 30 June 2024
Clinical
Registration
Post-Launch†
Immunology
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
Anumigilumab (Anti-G-CSFR mAb) Hidradenitis Suppurativa
Haematology
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 (Anti- 2 Anti-Plasmin mAb) Intermediate-Risk (Sub-massive) Pulmonary Embolism*
CSL889 (Hemopexin) Sickle Cell Disease
Respiratory
ZEMAIRA®/RESPREEZA® (Alpha 1 Antitrypsin) AAT Deficiency
Anumigilimab (Anti-G-CSFR mAb) Community Acquired Pneumonia – Acute Respiratory
Distress Syndrome
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
INJECTAFER® (Ferric carboxymaltose) Heart Failure in Iron Deficiency
HAEGARDA®/BERINERT® (C1 Esterase Inhibitor SC & IV) Acute Ischemic Stroke
Clazakizumab (Anti-IL-6 mAb) End Stage Kidney Disease
CSL112 Apolipoprotein A-I (human)‡
CSL525 (SNF472; Vascular Calcification Inhibitor) Calcific Uraemic Arteriolopathy
in End Stage Kidney Disease
Nephrology and Transplant
KORSUVA®/KAPRUVIA® (Kappa Opioid Receptor Agonist) Chronic Kidney
Disease-associated Pruritus1
RAYALDEE® (Oral ext. release Calcifediol) Secondary Hyperparathyroidism2
TAVNEOS® (Oral C5a Receptor Inhibitor) Anti-Neutrophil Cytoplasmic Antibody
(ANCA)-Associated Vasculitis3
VELPHORO® (Sucroferric Oxyhydroxide) Serum Phosphorous control in
Chronic Kidney Disease
VELTASSA® (Oral Potassium Binder) Hyperkalemia
FILSPARI® (Dual ETA & AT1 antagonist) IgA Nephropathy4
FILSPARI® (Dual ETA & AT1 antagonist) Focal Segmental Glomerulosclerosis4
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
AUDENZ® (adjuvanted cell-based pandemic vaccine) Influenza A (H5N1)
FLUAD® (adjuvanted trivalent vaccine) Influenza
FLUAD® QUAD (adjuvanted quadrivalent vaccine) Influenza
FLUCELVAX® (trivalent cell-based vaccine) Influenza
FLUCELVAX® QUAD (quadrivalent cell-based vaccine) Influenza
FOCLIVIA®/AFLUNOV® (adjuvanted egg-based pandemic vaccine) Influenza A (H5N1)
KOSTAIVE® (sa-mRNA vaccine) COVID-19*
CSL400 (sa-mRNA seasonal quadrivalent/trivalent vaccine) Influenza
CSL403 (adjuvanted quadrivalent/trivalent cell-based vaccine) Influenza
CSL404 (cell-based pandemic vaccine) Influenza A (H5N8)
CSL405 (cell-based pandemic vaccine) Influenza
CSL406 (sa-mRNA pandemic vaccine) Influenza
Outlicensed Programs
Eblasakimab (Anti-IL-13R mAb) Atopic Dermatitis
Mavrilimumab (Anti-GM-CSFR mAb) Giant Cell Arteritis, Rheumatoid Arthritis5
LASN01 (Anti-IL-11R mAb) Idiopathic Pulmonary Fibrosis, Thyroid Eye Disease
† Some products in the Post-Launch phase may have ongoing R&D activities including, but not limited to, clinical trials and regulatory activities.
‡
The Phase III AEGIS-II trial evaluating the efficacy and safety of CSL112 compared to placebo in reducing risk of major adverse cardiovascular
events (MACE) in patients following acute myocardial infarction (AMI) did not meet its primary efficacy endpoint of MACE reduction at 90 days.
Assessments of other indications beyond post-AMI are ongoing.
*
Partnered Project.
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. FILSPARI® is licensed from Travere Therapeutics, Inc.
5. Mavrilimumab Phase II studies in GCA & RA achieved their primary & secondary endpoints with statistical significance; Kiniksa granted
Huadong Medicine exclusive rights in Asia Pacific Region, excluding Japan. Kiniksa is evaluating potential partnership opportunities to advance
development of mavrilimumab.
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.
23
New products to market
CSL continues to broaden the
geography and use of our medicines
for rare and specialty diseases across
the globe within CSL’s immunology,
haematology, nephrology and transplant
therapeutic areas as well as in 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 CSL’s subcutaneous immunoglobulin
HIZENTRA® and human C1-esterase
inhibitor BERINERT®. There was one
new HIZENTRA® registration for primary
immunodeficiency (PID), a chronic disorder
in which part of the body’s immune system
is missing or malfunctioning. Indication
expansion was approved for HIZENTRA®
for secondary immunodeficiency (SID) in
six countries and chronic inflammatory
demyelinating polyneuropathy (CIDP)
in one country. 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).
CIDP is 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. In addition, there
were new registrations in two countries
each for BERIRAB® (human rabies
immunoglobulin) and BERINERT® and
new registrations in one country each for
HAEGARDA®, PRIVIGEN®, TETAGAM® and
HEPATITIS B Immunoglobulin P Behring.
HEMGENIX® (etranacogene
dezaparvovec) is the first, one-time
gene therapy treatment for adults
with haemophilia B. In October 2023,
CSL and uniQure were awarded the
prestigious 2023 Prix Galien USA Award
for HEMGENIX® in the category of Best
Product for Rare/Orphan diseases and
was a finalist for the 2024 International
Prix Galien Award as “Best of the Best”
new Rare/Orphan Diseases category.
The Prix Galien USA is America’s
preeminent prize acknowledging
the leading-edge of scientific advances
in life sciences. The biennial awards are
presented by The Galien Foundation,
the premier global institution
dedicated to honouring innovators in
life sciences and bringing together life
science innovators around the world.
Therapeutic Areas and Product Portfolio
Health authorities and national
immunisation technical advisory
groups (NITAGS) worldwide have
recommended removing B/Yamagata
lineage viruses from seasonal influenza
vaccines following WHO confirmation
of their undetectable circulation. In the
United States, the FDA has approved
the transition of CSL’s seasonal influenza
vaccines – FLUAD®, FLUCELVAX® and
AFLURIA® – from quadrivalent to trivalent
formulations for the upcoming Northern
Hemisphere 2024/2025 influenza season.
CSL continues to work closely with
global health authorities to transition
to trivalent seasonal influenza vaccines
in each country as quickly as local
regulatory pathways and timelines allow.
Within the iron deficiency portfolio,
there were new product registrations in
three countries and two label expansions
for FERINJECT® (ferric carboxymaltose)
for the treatment of iron deficiency.
KOSTAIVE®, CSL’s sa-mRNA COVID-19
vaccine, has demonstrated a stronger,
broader, and more durable immune
response compared to an approved
conventional mRNA vaccine. These
attributes address significant unmet
medical needs in the COVID-19
vaccine market. In December 2023,
KOSTAIVE® was approved for use
in Japan for individuals 18 years
and older, marking it as the first
ever approved sa-mRNA vaccine.
Submission for approval in Europe
is in progress, with plans for future
filings globally.
In CSL’s haematology therapeutic
area, there is a continued focus on the
expansion of the current portfolio as well
as further registrations of HEMGENIX®,
etranacogene dezaparvovec, a one‑time
gene therapy for the treatment of
adults with haemophilia B with three
new registrations. New registrations
were achieved in seven countries for
IDELVION®, CSL’s recombinant factor IX
albumin fusion protein (rFIX-FP) which
is used to control and prevent bleeding
episodes in people with haemophilia
B. New product registrations were
achieved in three countries for AFSTYLA®,
CSL’s recombinant factor VIII which is
used to control and prevent bleeding
episodes in people with haemophilia
A. New product registrations were
achieved for CSL’s human coagulation
factor VIII/vWF HAEMATE® in three
countries. One new product registration
was achieved for each of BERIPLEX®,
CSL’s human prothrombin complex
concentrate, and HAEMOCOMPLETTAN®
P, CSL’s human fibrinogen concentrate.
In Nephrology and Transplant, first
time approval was received in the
European Union for FILSPARI®, CSL’s
dual endothelin A and angiotensin
1 receptor antagonist for the
treatment of adults with primary
immunoglobulin A nephropathy
(IgAN). There were four new product
registrations for TAVNEOS® (avacopan)
for the treatment of adults with severe
active anti‑neutrophil cytoplasmic
autoantibody (ANCA)‑associated
vasculitis. There was one new product
registration for KORSUVA® (difelikefalin)
for the treatment of moderate-to‑severe
pruritus associated with chronic
kidney disease in adult patients on
haemodialysis, and two new indication
expansions for VELTASSA® (patiromer
sorbitex calcium) for the treatment
of high blood potassium.
For Vaccines, indication expansion was
the focus for the seasonal influenza
portfolio with new patient populations
approved in four markets and one
new registration for each of FLUAD®
QUADRIVALENT, CSL’s adjuvanted
influenza vaccine, and CELLDEMIC®,
CSL’s influenza vaccine to protect against
the H5N1 subtype of the influenza A virus
(sometimes called ‘bird flu’ or ‘avian
flu’). Additionally, there was one new
registration for each of CSL’s pandemic
influenza vaccines, INCELLIPAN®,
PANVAX® and FOCLIVIA® Influenza A
(H5N1) and two indication expansions
were approved for FOCLIVIA®.
24
Limited Annual Report 2023/24
Product Registration and Indications 2023/24*
Product
Type
Country/Region
Immunology
Focus on improved patient convenience, plasma yield improvements, expanded labels, new formulation science and recombinant technology
BERINERT® C1 Esterase Inhibitor (Human) Intravenous1
NR
Algeria (500, 1500 IU); Saudi Arabia (500, 2000, 3000 IU)
BERIRAB® Human Rabies Immunoglobulin
NR
Iraq, Kuwait
HAEGARDA® C1 Esterase Inhibitor (Human) Subcutaneous
NR
Saudi Arabia (2000, 3000 IU)
HEPATITIS B Immunoglobulin P Behring
NR
Kuwait (200, 1000 IU)
HIZENTRA® Immune Globulin Subcutaneous (Human) 20% Liquid
NR
Kuwait
HIZENTRA® Immune Globulin Subcutaneous (Human) 20% Liquid
NI
Bosnia & Herzegovina (CIDP, SID); Belarus, Ecuador, Peru,
Qatar, United Arab Emirates (SID)
PRIVIGEN® Immune Globulin Intravenous (Human) 10% Liquid
NR
South Africa
TETAGAM® Human Tetanus Immunoglobulin
NR
Iraq
Haematology
Maximise the value and performance of CSL’s existing coagulation therapies and develop new protein and gene-based therapies
AFSTYLA® Coagulation Factor VIII (Recombinant)
NR
Colombia (500, 1000, 2000 IU); Egypt (250, 500, 1000 IU);
Serbia (500, 1000, 2000 IU)
BERIPLEX® Prothrombin Complex (Human)
NR
Colombia
HAEMATE® Coagulation Factor VIII/vWF (Human)
NR
Kuwait, Ukraine (250, 500, 1000 IU); Qatar (500, 1200 IU)
HAEMOCOMPLETTAN® P Fibrinogen Concentrate (Human)
NR
Algeria
HEMGENIX® Etranacogene dezaparvovec
NR
Australia; Canada; Switzerland
IDELVION® Coagulation Factor IX (Recombinant) Albumin Fusion Protein
NR
Colombia, Uruguay (500 IU); Mexico (3500 IU); Qatar (250, 500,
1000 IU); Serbia (500, 1000, 2000 IU); Oman, Saudi Arabia
(250, 500, 1000, 2000, 3500 IU)
Nephrology and Transplant
Develop therapies to preserve kidney function in rare renal diseases and to address transplant rejection and patient survival for both solid
organ and haematopoietic stem cell transplant recipients
FILSPARI® (Sparsentan) Dual ETA & AT1 antagonist (IgAN)2
NR
European Union
KORSUVA® KOR Agonist (CKD-aP)3
NR
Saudi Arabia
TAVNEOS® Oral C5a Receptor Inhibitor (AAV)4
NR
Israel, Korea, Saudi Arabia, Qatar
VELTASSA® Oral Potassium Binder (HK)
NI
European Union, Great Britain (for treatment of hyperkalaemia
in adults and adolescents aged 12–17 yrs)
Vaccines
Develop products for the prevention of infectious disease
CELLDEMIC® Influenza (H5N1 ) vaccine zoonotic monovalent,
adjuvanted (inactivated, cell-based)
NR
European Union
FLUAD® QUADRIVALENT Influenza vaccine, adjuvanted
(surface antigen, inactivated, egg-based)5
NR
Argentina
FLUAD® QUADRIVALENT Influenza vaccine, adjuvanted
(surface antigen, inactivated, egg-based)5
NI
European Union (for prevention of influenza in persons aged
50 yrs of age and older)
FLUCELVAX® QUADRIVALENT Influenza vaccine
(surface antigen, inactivated, cell-based)6
NI
Australia, Great Britain, New Zealand (for prevention of
influenza in persons aged 6m+)
FOCLIVIA® Influenza A (H5N1) pandemic vaccine, adjuvanted (egg-based)
NR
Argentina (for prevention of influenza in persons aged 6m+)
FOCLIVIA® Influenza A (H5N1) pandemic vaccine, adjuvanted (egg-based)
NI
Great Britain, European Union (for prevention of influenza in
persons aged 6m+)
INCELLIPAN® Influenza pandemic vaccine monovalent, adjuvanted
(inactivated, cell-based)7
NR
European Union
PANVAX® Influenza (H5N8) pre-pandemic vaccine zoonotic monovalent,
adjuvanted (egg-based)
NR
Australia
CSL Vifor
Focus and deliver products for the treatment of iron deficiency
FERINJECT® (ferric carboxymaltose)
NR
Canada, Switzerland, Egypt
FERINJECT® (ferric carboxymaltose)
NI
Australia (for treatment of iron deficiency anaemia in
children aged 1–13 yrs); China (for treatment of iron deficiency
in patients aged 1–17 yrs)
*
First-time registrations or 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. FILSPARI® licensed from Travere Therapeutics.
3. In some markets, KORSUVA® is marketed as KAPRUVIA®. KORSUVA®/KAPRUVIA® is a registered trademark of Cara Therapeutics, Inc.
4. TAVNEOS® is a registered trademark of ChemoCentryx Inc.
5. In some markets, FLUAD® QUADRIVALENT is marketed as FLUXVIR® QUAD, FLUAD® QIV, FLUAD® QUAD and FLUAD® TETRA.
6. In some markets, FLUCELVAX® QUADRIVALENT is marketed as FLUCELVAX® QIV, FLUCELVAX® QUAD and FLUCELVAX® TETRA.
7. In some markets, Incellipan® is marketed as AUDENZ®.
AAV – Antineutrophilic cytoplasmic antibody (ANCA) associated vasculitis, AT – Angiotensin, CKD-aP – Chronic Kidney Disease associated Pruritus,
CIDP – Chronic Inflammatory Demyelinating Polyneuropathy,
ET – Endothelin, IgAN – Immunoglobulin A Neuropathy, HK – Hyperkalaemia, IU – International Unit, NI – New Indication, NR – New Registration,
SID – Secondary Immunodeficiency, vWF – von Willebrand Factor
25
One R&D
Innovation in CSL is driven by its
R&D organisation with approximately
2,500 employees located within biotech
hubs and precincts in 10 countries
around the world that are linked to
strong research networks and external
collaborations that CSL 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 in CSL’s areas
of focus.
Innovation
Innovation is a critical pillar of CSL’s 2030
strategy. It underpins everything we do,
from One R&D, to CSL Plasma centers,
to CSL’s manufacturing sites and
enterprise-wide digital architecture.
2,500+
R&D employees working in
R&D centres located in leading
biomedical locations in 10 countries
Limited Annual Report 2023/24
26
CSL’s strategic scientific platforms
CSL is dedicated to maintaining a
strong innovation pipeline grounded in
scientific rigour by focussing on strategic
therapeutic areas and leveraging its
technical development platforms.
CSL defines a “strategic platform”
as an area where it has the expertise
to manufacture a new therapy or
vaccine at every stage in its lifecycle,
such as plasma protein technology,
recombinant protein technology,
cell and gene therapy, and vaccines
technology. These platforms facilitate
ongoing innovation in the development
of products to address unmet medical
needs, prevent infectious disease and
help patients lead full lives.
Plasma protein technology
Plasma is a valuable resource for many current and potentially new biological
therapies. CSL relies upon donors to provide this life-saving resource and as
such, CSL has an obligation to maximise the value of each plasma donation.
The pursuit of state-of-the-art technologies to improve yield and reliability
processes 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 and increase patient access to CSL’s life-changing products. CSL
continues to focus on initiatives to increase immunoglobulin (Ig) yield: Horizon
1 improvements include enhancing the current Ig process robustness and
recoveries through data analytics, process optimisation, plasma allocation
and operational excellence. In addition to yield, we also focus on new delivery
vehicles, new formulations and the development of new plasma medicines
to further leverage this remarkable natural resource and its pluripotential
opportunities for patients.
Recombinant protein 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.
Today, recombinant proteins make up a significant portion of CSL’s early
development portfolio and a differentiating aspect of our newest pipeline
product, garadacimab, will be its patient-friendly characteristics.
Cell and gene therapy
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, cell and gene therapies 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. Building on the success of HEMGENIX®, CSL
continues to develop technologies to make therapeutic gene delivery more
precise and durable, so that CSL can deliver on the potential of a long-term cure.
Vaccines technology
CSL is a global leader in influenza vaccine technologies for prevention and
control of seasonal disease, and a transcontinental partner in pandemic
preparedness. CSL’s egg-based and cell-based manufacturing capabilities in
three continents produce more than 100 million doses of influenza vaccines
annually. Together with CSL’s 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 CSL’s innovative
vaccines pipeline, which includes technologies such as sa-mRNA and
recombinant antigen production, to address emerging and present viral
threats to human health.
27
CSL’s R&D portfolio focuses on
innovation in novel treatment options,
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 CSL’s therapeutic areas of
focus and enhance CSL’s chances
of bringing forward beneficial
transformative innovation.
Identifying early-stage external
innovation opportunities, such as new
technologies and assets, is essential
to grow and diversify CSL’s research
portfolio. CSL’s Research Acceleration
Innovation
Initiative (RAI) establishes partnerships
with research organisations worldwide
with the aim of progressing discoveries
towards real-world treatments and
to accelerate the commercialisation
of promising discovery programs. By
fostering long-term collaborations
with talented academic scientists, the
RAI promotes innovation and offers
crucial early funding and access to
CSL’s world‑class R&D experts. Since
the program’s inception, the RAI has
continued to grow, with a three-fold
increase in the number of participating
institutes and opportunities identified
since 2021.
In October 2023, seven medical
researchers from France, Singapore,
the United Kingdom and Germany
were awarded new RAI partnerships,
including up to an AU$500,000
investment in each program over
two years, to fast-track the discovery
of innovative biotherapies to address
unmet medical needs in several of
CSL’s therapeutic areas, which include
immunology, nephrology and transplant,
respiratory, haematology, cardiovascular
and metabolic, and vaccines.
To expand its access to external
innovation, CSL continues to strategically
partner with selected incubators,
accelerators and venture funders
worldwide. In Australia, CSL continues
its long-standing partnership with
Brandon Capital, joining as the exclusive
pharmaceutical company investor in the
new Brandon BioCatalyst Fund 6 which
provides support for the development
and commercialisation of early-stage
biomedical discoveries.
In addition, Brandon Capital’s unique
member model provides CSL with
access to a curated network of over
50 medical research institutes,
universities and research hospitals
across Australia and New Zealand.
Global Headquarters and Centre
for Research and Development
(R&D) opens in Australia
In August 2023, the Prime Minister
of Australia, Anthony Albanese,
officially opened CSL’s new
Global Headquarters and Centre
for Research and Development
(R&D) in the Melbourne
Biomedical Precinct in Melbourne.
CSL Melbourne is part of a
A$2 billion infrastructure investment
program in Australia undertaken
by CSL over the past four years,
the facility will house more than
850 professionals dedicated to
protecting public health and
bringing life-saving innovative
therapies to those in need.
In Europe, CSL has extended its
partnership with BaseLaunch, a
Swiss‑based venture builder that
has a strong track record of serving
as a growth platform for early-stage
ventures to collaborate with scientists
and entrepreneurs across Europe to
develop cutting-edge therapeutics.
In 2023, CSL strengthened its
relationship with Biopôle SA through
the establishment of an R&D office at
Biopôle’s Lausanne campus, one of the
largest life science campuses in Europe.
CSL has been a corporate partner of
Biopôle SA since 2020, which provides
CSL with special access to Biopôle’s
innovative community of life sciences
start-ups including Biopôle facilitated
match-making and introductions to
start-ups, as well as investment and
scouting opportunities.
On 16 April 2024, CSL, together
with founding partners University
of Melbourne and The Walter and
Eliza Hall Institute of Medical Research
(WEHI), as well as initial investor,
Breakthrough Victoria, and operator,
Cicada Innovations, celebrated the
official opening of Jumar Bioincubator
at an event officiated by Lord Mayor,
Sally Capp AO. By delivering a wide
range of services including educational
programs on commercialisation,
facilitated access to investors, industry
mentoring, and access to curated service
providers, Jumar Bioincubator offers
comprehensive support to biotech
start-ups, enabling them to translate
groundbreaking biomedical discoveries
into tangible commercial outcomes.
At the foundation of the shared vision for
Jumar Bioincubator is an understanding
of the ‘power of precincts’ within which
the unique and shared capabilities of
academia and industry can sit adjacent
to hospitals and physicians that deliver
care to those in need. CSL and partners
expect that Jumar will strengthen
CSL’s existing biomedical network and
the biotechnology talent within the
precinct, fostering ongoing collaboration
between industry, research institutions,
investors and government. With 21
start-ups in residence as of June 2024,
Jumar Bioincubator continues to build
from strength to strength.
28
Limited Annual Report 2023/24
In support of the yearly seasonal
influenza vaccine epidemic, CSL Seqirus
collaborates with the World Health
Organization (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 CSL’s
understanding of the human response
to influenza and to discover new and
innovative vaccine solutions for this
and other viruses. By collaborating
with Arcturus Therapeutics, CSL has
gained access to Arcturus Therapeutics’
advanced mRNA vaccine platform
technology, which has shown promising
results in multiple, large Phase III
studies for COVID-19. Through this
collaboration the commercialisation
of a COVID (SARS-CoV-2) vaccine
has significantly advanced with the
Japanese approval of KOSTAIVE®, the
world’s first self‑amplifying mRNA
COVID-19 vaccine, for initial vaccination
and booster for adults 18 years and
older, and the ongoing partnership with
Arcturus Therapeutics will continue to
drive the development of new vaccines
and therapeutics.
Strategic support for innovative
medical research
Living by CSL’s core values, CSL supports
the next generation of researchers
around the world and over the past
year CSL has continued to sponsor
collaborative innovation through the
endowment of the following awards to
researchers around the world.
In partnership with Australia’s Life
Sciences Innovation Accelerator, CSL
has been an active supporter of the
Researcher Exchange and Development
within Industry (REDI) initiative to
support the commercialisation of
medical research from bench to
bedside. The REDI Fellowship Program
brings skilled Australian researchers,
tech-transfer professionals and
clinicians into industry settings to
work on real-world medical research
projects and gain valuable industry
experience. The practical knowledge
they will gain in research translation
and commercialisation aims to
enhance the depth of experience within
academic settings and help drive the
translation of more Australian medical
research to improve human health
outcomes. As of 2024, CSL has hosted
five REDI Fellows and continues to
provide ongoing support to the overall
governance of the project as members
of the Steering Committee.
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 2023,
five recipients from the United Kingdom,
United States, Germany and Austria
received this award.
In October 2023, two scientists were
each awarded a CSL Centenary
Fellowship, valued at A$1.25 million
over five years. Dr Daniel Utzschneider
will use his fellowship to accelerate
research into targeting T cells which can
become exhausted from the constant
battle against cancer thus reducing
the effectiveness of immunotherapy.
Dr Utzschneider’s research seeks to
understand T cell biology, why T cells
become exhausted, and how to boost
their numbers and their ability to
fight cancer. Dr Ankur Sharma has
discovered how liver cancer cells grow
together in a similar way to the rapidly
dividing cells of a human embryo; this
behaviour allows liver cancer cells to
resist treatment. His fellowship will
support his research to analyse these
cells and determine which liver cancers
may respond to immunotherapy with
a vision to develop vaccines against
cancer. Both of these research projects
will generate fundamental knowledge
that could transform how CSL fights
these diseases to improve outcomes
for patients.
29
Innovation in Plasma
As a leader in plasma collection, CSL
is uniquely positioned to innovate and
improve the donor experience, raising
the safety and effectiveness of the
collection process, improving health
equity in donor communities, and
ensuring that the donor is rewarded
for their contribution. CSL does this
by recognising that it all begins with
the donors who enable the life-saving
therapies that patients depend on.
Improving donor experience
through individualised nomograms
A notable initiative in the donor
experience focus area is the Rika Plasma
Donation System™’s Individualised
Nomogram, iNomi™, which will
allow plasma donors to donate the
right amount of plasma based on
weight, height and haematocrit, while
maintaining the same collection time.
iNomi™ received U.S. Food and Drug
Administration (FDA) 510(k) clearance.
CSL Plasma’s collaboration with Terumo
Blood and Cell Technologies grants
CSL exclusive rights to this technology,
supporting its commitment to
improving the donor experience.
Improvements in targeted nomogram
collections such as Nomogram A and
Individualised Nomogram are important
advances that will allow CSL to safely
target a donor’s collection volume.
This allows more plasma from some
donors, thus helping to meet the
growing patient needs. Donor safety is
maintained, since weight and height
will be considered, for example, smaller,
shorter donors will give less than they
did previously.
The clinical trial to support the
FDA clearance showed an average
10% increase in the volume of plasma
collected per donation with an
average collection time of less than
35 minutes.
CSL anticipates receiving the software in
FY25 with validation and change control
beginning at that time. CSL Plasma will
then work to transition those centres
already on Rika devices to iNomi, and
then transitioning all centers as the
Rika rollout continues.
Innovation
Improving Plasma centres
through Program REACH
CSL continues to focus on ways to
improve and innovate the donor
experience. To this end, in June 2023
Program REACH, a Centre Improvement
Program, was first deployed. CSL’s
plasma donation network has grown
significantly over the past ten years,
from ~100 to nearly 350 centres. This
continued growth and success depends
upon delivering a consistent donor
experience as well as a workplace of
choice for employees.
More
investment in digital
experience
More donor
acquisition via app
Ease of
donation
experience
via app
Better centre
operations
Positive donor
experience
More
plasma
collected
(or more Ig)
1
2
3
4
5
6
Pl
as
ma
F
ly
wh
ee
l
Program REACH aims to set the
foundation for continued long-term
growth, operational optimisation,
and consistency and reliability across
the donor and employee experience.
The program focuses broadly on four
areas: improving the donor experience;
improving the employee experience;
standardising efforts and optimising
ways of working. The goal is to
understand root causes of challenges,
and identify and implement solutions
that drive sustainable improvement
across the fleet. Aligned with the
CSL Values of Superior Performance,
Collaboration and Patient-Focus,
Program REACH focuses on fulfilling
CSL’s mission to provide life-saving
medicine through plasma-derived
therapies to patients in need.
30
Limited Annual Report 2023/24
Improving global
manufacturing processes
Innovation in processes across our
global manufacturing network can have
a considerable impact on the efficiency
of our business. One such focus area
has been on Ig yield improvements.
This will be critical to our goal of
improving margins.
To drive Horizon 1 improvements,
CSL is focused on enhancing process
robustness and improving Ig recoveries
by optimising existing processes.
CSL continues to pursue incremental,
continuous process improvement
initiatives with a mindset geared towards
year‑on‑year Ig yield growth within our
current regulatory filing boundaries.
Key strategies include leveraging
data analytics, optimising processes,
refining plasma allocation strategies,
and fostering operational excellence.
These efforts have already started
to yield positive results this year, and
CSL anticipates continued benefits
in the coming years.
Global Manufacturing Presence
Across our three businesses, we own and operate
highly advanced manufacturing facilities.
CSL Vifor
St. Gallen, Switzerland
CSL Seqirus
Holly Springs NC, US
Liverpool, UK
Parkville, Australia
Waltham MA, US
CSL Behring
Broadmeadows, Australia
Bern, Switzerland
Kankakee IL, US
Marburg, Germany
Wuhan, China
31
Innovation
Case Study
Making donations easier
The CSL donor mobile app utilisation is currently high, with over 3.8 million
total downloads to date and averaging 508,000 monthly users.
Our donors are so important to our mission, and we see our donor experience
as a potential competitive advantage. Everything starts with our ability to attract
more donors through the donor app, and other digital channels. The more
we can learn about our donors, the easier we can make the donation process.
The easier the donation process, the more likely we are to increase long-term
value for CSL, for our donors, the patients and communities we serve.
We are dedicated to continuing to improve the in-center experience for
our donors and our staff. We want to automate as many tasks as possible,
including donor check-in. Combined with artificial intelligence, automation
can help speed up the process for our donors and help us learn more about
them with less effort. It can also remove low-value tasks from in-center-staff
so they can focus on providing higher-value customer service.
Over the past few months an initiative has been underway to enable improved
flexibility in donor payments in preparation for the transition to Nomogram I.
This initiative will migrate all of our U.S. and Puerto Rico plasma donation
centers to a new and modernized donor payments platform, powered by Buoy.
This initiative is part of our long-term strategy to optimize the donor experience
at every opportunity, while simplifying the work of our employees. Later this
calendar year, we will pilot the new payment platform in several locations
before rolling it out in a phased approach to the full fleet during FY25.
Case Study
Generative AI
Generative Artificial Intelligence (Gen-AI) has transformative potential to
go beyond productivity gains and help CSL get smarter.
CSL is carefully building an accelerator to explore opportunities across
three tiers.
The first focus is to capitalise on the productivity boom. This involves putting
CSL’s tools into the hands of every employee to reduce the time we spend
on repetitive tasks and accelerate our creativity. This results in CSL’s people
spending less time summarising meeting minutes or doing the first draft
of a memo.
CSL is educating its workforce on its approach to Gen-AI, which is about smart
humans and powerful machines, working together within guardrails on safety
and security.
CSL’s second focus area is on select use cases where our organisational
knowledge can be used to benefit our frontline people. Call centres,
documents, code bases, and even competitive intelligence can become more
intuitive, more personalised, and more real-time in nature.
In other words, CSL can use its past to generate better solutions for today,
and create new ideas for tomorrow.
CSL’s third focus is our search for areas of differentiation for our business.
CSL looks for opportunities to accelerate the pace of scientific experimentation
and add more value to its donor relationships. For these opportunities
to materialise, CSL is focused on curating data, protecting intellectual property,
and finding new partners.
Innovation in our
Digital Architecture
CSL’s information and technology
team is committed to accelerating
business priorities and enabling
digital transformation across
the organisation.
Our strategic focus begins
with seamlessly integrating our
business and technology to drive
differentiated value. This includes
increasing donations and enhancing
the donation experience, improving
the efficiency and resiliency
of plasma centers, and accelerating
R&D by delivering information
and technology with research
as a coordinated capability.
Next, we aim to improve the flow
of work and information across
the enterprise. By expanding
our data platform and enterprise
tools, we empower teams with
superior analytics for informed
decision‑making. It also means
leveraging artificial intelligence
and automation to accelerate
productivity, enabling our employees
to deliver greater value with agility.
Lastly, we are constantly working
to increase enterprise resiliency
through a more modern
technology foundation for
our company, and enhance
our services at speed and
scale, ensuring a robust and
future‑ready infrastructure.
32
Limited Annual Report 2023/24
Aidan’s Story
Aidan was diagnosed as a child with severe
combined immunodeficiency, a type of primary
immunodeficiency condition that causes
life-threatening problems with the immune
system but can be managed with the help
of plasma‑derived therapies.
As a way of giving back, he has stayed connected with the
plasma donation community as a member of CSL Plasma’s
“Plasma PALS” program.
Aidan W.
PI Patient
33
Promising Futures
Promising Futures represents the
investments CSL makes in its people
and culture and to cultivate a workforce
with dynamic, resilient, inclusive and
passionate teams. It describes an
environment in which everyone can
fulfill their potential while, at the same
time, meeting the needs of the business.
Delivering on CSL’s promise to
employees is the Company’s aspiration.
CSL believes that, when it gets this right,
CSL’s people will feel inspired, included,
important and empowered to take
initiative and innovate in support of
CSL’s purpose.
Building a diverse workforce
and inclusive culture
and making a positive
community impact
CSL wants to create a sense of inclusion
and belonging – from how the Company
attracts talent and supports employees
to how it engages with communities.
CSL considers diversity in the broadest
terms, including but not limited to:
gender, nationality, ethnicity, disability,
sexual orientation, gender identity,
generation/age, socioeconomic
status, marital/family status, religious
belief, professional and educational
background and cultural experiences.
CSL supports the ongoing development
of managers’ skills and continually
strengthens its culture to ensure its
people feel like they belong (inclusion),
and are treated fairly and have equal
access to opportunities (equity). CSL’s
Diversity, Equity & Inclusion (DE&I) Policy
is available on CSL.com (We Are CSL >
Corporate Governance > Core Policies).
When the best people and science come together,
extraordinary things can happen. Having a compelling
and attractive employee experience is vital to achieving
our goals. Promising Futures is how we articulate the
purpose and possibility at CSL. It emphasises the critical
role that CSL’s people can play in delivering for patients
and public health.
Read more at csl.com/we-are-csl/
corporate-governance
34
Limited Annual Report 2023/24
*
Limited assurance by Deloitte. Data as at 30 June 2024 and includes all salaried employees globally where birthday is recorded (99.5% of population).
People managers are defined as employees with at least 3 or more direct reports.
Generational Profile
Senior Executives*
Generation Y
12%
(Millenials)
Generation X
80%
Baby Boomer
8%
People Managers*
Generation Y
47%
(Millenials)
Generation X
49%
Baby Boomer
4%
All Employees*
Generation Y
55%
(Millenials)
Generation X
33%
Generation Z
8%
Baby Boomer
4%
United States Ethnicity
White
43%
African American
29%
Hispanic
18%
Asian
5%
Two or More Races
4%
Other
1%
Gender Composition
*
Limited assurance by Deloitte. Includes all salaried employees globally; % calculations exclude 246 employees with unspecified gender.
These 246 employees are excluded from the total counts. People Managers are defined as employees with at least 3 or more direct reports.
Board of Directors*
Goal: a minimum 40%
women, minimum 40% men
and 20% either men, women,
nonbinary or did not disclose.
Women
56%
Men
44%
9
Total
Senior Executives*
Goal: a minimum 40%
women, minimum 40% men
and 20% either women, men,
nonbinary or employees
that do not wish to disclose
gender among our Senior
Executives by the
2029/30 financial year.
Women
34%
Men
66%
685
Total
People Managers*
Goal: a minimum of 45%
women, minimum 45%
men and 10% women, men,
nonbinary or employees
that do not wish to disclose
gender in CSL’s overall People
Manager population by the
2024/25 financial year.
Women
46%
Men
54%
4,287
Total
All Employees*
Women
59%
Men
41%
32,452
Total
35
CSL’s strategy aims to strengthen
its DE&I outcomes with multiyear,
measurable objectives and focuses
on three specific pillars:
•
Diverse workforce – build a diverse
talent pipeline to bring a wide variety
of viewpoints, lived experiences and
ideas to the meaningful work we do
every day;
•
Inclusive culture – foster an inclusive
culture where all employees are
respected, valued and inspired to do
their best work; and
•
Community impact – provide equal
access to opportunities for employees
and suppliers, while helping to build
strong communities.
CSL regularly reviews its progress toward
achieving our DE&I goals and identifies
actions to address areas needing
additional attention. The Company also
closely follows both representational
data as well as key performance
indicators to ensure its talent practices
are inclusive and equitable.
Illustrative of this approach and as
part of CSL’s Sustainability Strategy,
the Company seeks to contribute to
building healthier communities through
two key focus areas – talent and culture,
and suppliers, with a focus on inclusion
and belonging. CSL’s ambition is to
attract, develop and retain top talent
with a diversity of identities, cultures,
backgrounds, skills and lived experiences
through robust talent pipelines,
personalised development journeys
and an embedded culture of inclusion
where all backgrounds and perspectives
belong, develop and thrive.
To further support our ambition, we
seek to establish a robust pipeline
of CSL Plasma talent, our largest
workforce within CSL, with defined
career pathways and opportunities
for progression.
Additionally, CSL intends to provide a
variety of programs and resources for
managers and employees to create
personalised development journeys
with tailored learning content to ensure
high-quality onboarding, upskilling and
continuous learning.
Gender composition
CSL continues to strive for increased
gender diversity, particularly among its
senior executives (senior director and
above) and people managers (those
with three or more direct reports).
In order to recognise and respect the
option that employees have to disclose
as nonbinary or not to disclose their
gender, CSL has updated its approach
to stated representation goals.
Accordingly, CSL’s updated long-term
gender goals are:
•
Board of Directors (going forward):
minimum 40% women/minimum
40% men/20% either women,
men, nonbinary or prefer not to
disclose gender
•
Senior Executive (by the 2029/30
financial year): minimum 40%
women/minimum 40% men/20%
either women, men, nonbinary or
prefer not to disclose gender
•
People Manager (by the 2024/25
financial year): minimum 45%
women/minimum 45% men/10%
either women, men, nonbinary or
prefer not to disclose gender
Promising Futures
36
Limited Annual Report 2023/24
Generational profile
CSL’s multigenerational workforce
includes employees ranging in ages
from Baby Boomer (born 1946–1961)
to Generation Z (born after 2001).
Millennials (born 1980–2000) represent
the majority of CSL’s workforce.
Ethnic & disabled
workforce composition
‘Count Me In’ Self-Identification
Campaign: To better understand CSL’s
current workforce demographic mix, the
Company launched a self-identification
campaign in three of its larger
geographies – Australia, Switzerland and
the United Kingdom. After verifying the
legal and cultural viability of this effort,
CSL invited employees in these countries
to voluntarily share their ethnicity.
Additionally, CSL invited employees in
Australia and Switzerland to disclose
their disability status. Employees in
the United States already share their
ethnicity and disability status. At the
time of this publication, the data
received was not representative of the
employee populations in these newly
added countries and therefore not
reported below. In FY26 as we expect
disclosures to increase, we expect to
report ethnicity and disability data in
these newly added countries also.
CSL’s Ethnic Profile (United States):
Representation of ethnic diversity has
increased in the United States by 2%.
Currently, CSL’s ethnically diverse talent
represents 57% of its workforce in the
United States. See the chart on page 35
for more information.
CSL’s Disability Profile (Germany and
United States): CSL continues to focus
on disability inclusion worldwide and,
while the Company expands its disability
status metrics in various geographies, it
continues reporting its progress in the
United States and Germany.
Disability Status (United States): The
percentage reflecting the representation
of employees with disabilities in the
United States increased from 8% at the
end of the 2022/23 financial year to 11%
in the 2023/24 financial year.
This increase can be attributed to the
rollout of a voluntary disability status
disclosure campaign among employees
in the United States that CSL launched
in early 2024. This campaign focused
on data collection and compliance as
well as on engendering more trust and
awareness through information-sharing
and educational activities.
Disability Status (Germany):
Representation of people with
disabilities remains at 6% in Germany.
FY25 goal status: At 53%, CSL has
exceeded its goal to increase the ethnic
diversity and disability representation
in CSL’s People Manager population in
the United States to 46% by the 2024/25
financial year.
CSL Australia’s Reflect Reconciliation
Action Plan (RAP): Following on from
the launch of the Company’s plan in
September 2023, the RAP Working
Group (WG) has steadily worked through
with commitments, with good progress
being made
A highly engaged working group and
employee volunteers, CSL seeks to do its
part in building better relationships, and
increasing understanding and fostering
mutual respect between Aboriginal and
Torres Strait Islander peoples and non-
Indigenous peoples for the benefit of
Australia.
Collaborating with suppliers
on inclusion and belonging
CSL is seeking to drive diversity, equity
and inclusion across its value chain by
promoting inclusion and belonging
among key suppliers, setting higher
supplier diversity targets and providing
support for diverse suppliers. CSL
aims to achieve its goals in this area
by 2030, by intending that 50% of our
supply base (by spend) to have publicly
available inclusion and belonging
policies that promote respect and
diversity of thought or provide diverse
teams for CSL’s accounts in line with
CSL’s diversity agenda. Additional goals
are being established, and we expect
to disclose them in the coming years.
CSL’s Procurement team identified 10.4%
of total spend in CSL Australia’s supply
base (CSL Behring and CSL Seqirus
Australian manufacturing facilities) as
attributed to small business suppliers.
In the United States, CSL tracked its
spend for CSL Behring at 20.2% and for
CSL Seqirus at 19.3% for both diverse and
small business spend, which compared
favourably to the Veterans Affairs target
of 17.5%. In Australia, the Procurement
team collaborated with the RAP WG,
signing a contract with Supply Nation
to identify and work with suppliers from
Aboriginal and Torres Strait Islander
groups. CSL believes shared value
outcomes are possible by enabling the
business benefits of diversity, such as
increased access to innovative thought,
specific capabilities and supply chain
resiliency with its major suppliers and in
alignment with CSL’s commitment for
equal opportunity and inclusion.
Please refer to the Diversity Section
of CSL’s Corporate Governance
Statement for more information about
the Company’s commitment to DE&I
and its ongoing progress.
15%
5%
0%
10%
United
States
Germany
11%
6%
CSL’s Disability Profile
37
Promising Futures
Attracting and developing
future leaders
CSL maintains a variety of professional
and personal development programs
to meet evolving skill needs and
foster career growth for employees
and leaders.
In the 2023/24 financial year, CSL
launched CSL Academy to both inform
and inspire employees and leaders about
the Learning & Development programs,
services and solutions available to them.
CSL Academy reflects CSL’s investment
in its people and contains a wide range
of learning opportunities, including:
•
a dedicated Leadership Academy that
hosts a suite of formal development
programs aligned to different levels
within the organisation, all anchored
to CSL’s Leadership Capabilities;
•
a Professional Skills Academy,
designed to provide employees
with the ever-evolving knowledge
and skills needed to support their
professional development;
•
information on how to leverage
Learning & Development Services
and Solutions, including coaching,
mentoring, 360 leadership
assessments and future ways to work;
•
resources and guides on career and
development planning; and
•
a Social Lounge where employees
can join communities of practice
and discussion forums.
Additionally, CSL launched the
Global Mentoring Program, bringing
together mentors and mentees from
around the world and improving
collaboration, knowledge sharing
and strategic capabilities across the
organisation. Since its launch in the
2023/24 financial year, more than 750
colleagues have enrolled in this global
mentoring program, of which 58%
(of those that self-identified gender)
are women and 42% are men.
CSL also continued to advance its
Frontline Leader (FLL) Program,
providing foundational business
and people management skills for
supervisors and newly promoted
managers across Manufacturing
Operations. FLL is designed to enhance
leadership and management skills,
Human Resources & Legal compliance
knowledge and Enterprise Operations
business acumen. The program is
offered at all CSL manufacturing
sites. By the end of the 2023/24
financial year, some 1,403 frontline
leaders will have participated in the
program. Of those participants who
self‑identified their gender, 51% are
women and 49% are men.
The Company’s early career programs
for STEM talent help build CSL’s future
talent pipeline around the globe.
In Australia: CSL’s Australian Internship
Program provides hands-on experience
and learning and development
opportunities with exposure to various
teams and functions across the
business. Interns can then apply for
CSL’s Australian Graduate Program,
a two-year, full-time opportunity
including three 8-month rotations
within or across functions.
In EMEA: CSL’s EMEA Apprenticeship
and Dual Study Programs in Germany
and Switzerland strengthen the
Company’s talent pipeline across
multiple functions, including
Manufacturing and R&D. Now in its
second year, CSL’s EMEA Re-Start
Plus Program in Germany began
with 18 refugees with no professional
experience who participated in an
11-month program to learn the skills
of a Chemical Production Specialist.
The program converted 11 students
into the apprentice program for further
education and incorporation into the
CSL future talent pipeline and allowed
us to extend the program to a
more diverse audience, including
people with disabilities.
In North America: CSL’s North America
Internship & Co-op Program attracts
students enrolled in a four-year college
or university. The 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.
Please refer to CSL’s Careers on
CSL.com for more information about
our early career and learning and
development programs.
Valuing colleagues’ contributions
CSL strives to create an environment
where people excel in their job and make
meaningful contributions that drive
superior performance and sustainable
growth – all while demonstrating the
CSL Values.
CSL’s performance management
framework enables its people to
perform at their best, and the Company
rewards them for it. CSL’s employees
are well prepared to set clear goals
linked to Company priorities, share
feedback with each other regularly and
embrace development opportunities
while colleagues work together to
deliver for CSL’s patients and to protect
public health. Reinforcing the CSL
Values, the performance management
approach considers both ‘what’ CSL’s
employees contribute and ‘how’ they
contribute in terms of their behaviours.
CSL’s Short-Term Incentive Plans
differentiate and award bonus amounts
that match CSL’s employees’ unique
contributions and provide the highest
rewards for its highest performers who
achieve stretch objectives.
Another way CSL recognises employee
efforts is through CSL’s global
recognition program, Celebrate the
Promise. Established in 2020, Celebrate
the Promise is an online platform that
enables employees and leaders to
recognise colleagues with a simple thank
you or acknowledgement of a major
accomplishment. 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. During the 2023/24 financial
year, employees and leaders shared
more than 92,400 global recognition
moments, with Collaboration and
Superior Performance being the top
two most-recognised CSL Values.
*
As of 30 June 2024.
1,403
participants in Frontline
Leader (FLL) Program*
92,400+
global recognition moments
shared in Celebrate the
Promise program*
38
Limited Annual Report 2023/24
39
Additionally, CSL is continuously looking
to improve the employee experience
while meeting the evolving needs of
the organisation. CSL’s cross-functional,
cross-geography advisory group
provides ongoing input as the Company
aims to ensure that CSL’s workforce is
connected, productive, engaged and
supported with critical capabilities
as the needs of the business and the
future of work continue to evolve.
CSL also continually looks for ways
to engage its workforce about CSL’s
Sustainability Strategy. Employees
are enthusiastic about the Company’s
efforts in this area. According to the
2024 Employee Engagement Survey,
75.1%* 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.
As CSL extends its strategy and further
embeds activities supporting the
achievement of its focus areas, such as
talent and culture and supplier diversity,
CSL anticipates increased involvement
from its employees, bringing about
deeper engagement in the achievement
of short- and long-term outcomes.
Caring for CSL’s people
CSL continues to enhance our employee
benefits and make them even more
inclusive. During the 2023/24 financial
year, significant enhancements included:
•
expansion of mental health benefits
to all countries, ensuring a globally
consistent, accessible pathway to
high quality mental health care
through Lyra, which is now available
to employees and their families in
31 countries;
•
meditation and resilience support
through Headspace, available
globally to all employees with up
to five members of an employee’s
household now eligible for a
subscription paid for entirely
by CSL; and
•
payment of record-keeping fees
in the United States 401k plan by
CSL, enabling increased employee
retirement savings.
Promoting safety and wellbeing
CSL remains committed to providing
safe, healthy and secure workplaces
for all of its employees, other persons
present on the premises and the
communities in which CSL operates.
As the Company continuously improves
its Environmental, Health and Safety
(EHS) Management System, CSL is
committed to its EHS principles, to keep
people safe, protect the environment
and build trust internally and externally.
Each year, CSL reviews and confirms
that it has robust and relevant key
performance indicators to measure its
adherence to CSL’s values and drive
improved results.
CSL teams across all functions work
collaboratively throughout the business
and operations to proactively identify
and mitigate workplace hazards and
risks, strengthen communication, define
roles and responsibilities, and promote
a company-wide culture of safety at all
CSL’s manufacturing, plasma, laboratory
and office locations.
Promising Futures
Listening to employees
Each year, CSL invites employees to
provide feedback about working at
CSL through its Employee Engagement
Survey. During the 2024 survey,
23,576 employees 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 the CSL Values and
support for employee growth and
development. This year’s Engagement
Index is 74.8*, relatively flat from last
year’s survey and on par with the global
external benchmark maintained by
the Company’s survey administrator,
Perceptyx, that represents responses
from over 20 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. CSL also provides training
to its people leaders, helping them
interpret team results and develop plans
to address improvement opportunities.
In addition to these ongoing efforts,
CSL continues to implement its
enterprise action plan, sponsored
by senior leadership, that focuses
on helping employees feel better
connected to the Company’s vision
and strategy.
This year, CSL also expanded its listening
strategy with the launch of a 14‑, 45‑
and 90‑day Onboarding Survey series,
allowing CSL to hear from its newest
employees during this critical period
of their employment journey.
23,576
employees participated in CSL’s 2024
Employee Engagement Survey
74.8*
2024 Engagement Index
*
Limited assurance by Deloitte.
40
Limited Annual Report 2023/24
The Company continues to evolve
its critical safety systems, focused
on preventing serious workplace
injuries. Adopting innovative and
industry best practices, in all areas
of environmental health and safety
(EHS). Enablon®, CSL’s cloud-based
EHS software solution continues to
evolve, helping CSL modernise its
EHS tools and procedures. Enablon®
allows all employees, contractors and
visitors to participate in event reporting,
incident investigation, inspections,
corrective measures and metrics.
The modernisation of EHS practices
continues as CSL has begun its scoping
and implementation of additional
digital tools to improve and modernise
its environmental data collection
and reporting.
Work has continued to strengthen
the EHS Management System.
With specific focused improvements
to core EHS elements of environmental
management, critical safety systems,
pSIF (potential serious injuries and
fatalities) prevention and employee
engagement.
CSL’s people are its most important
asset. CSL continues to develop,
implement and improve employee
health and safety processes and
programs to further promote a strong
and inclusive safety culture. The work
undertaken during the past year, as
part of CSL’s global health and wellness
programs, continues to mature,
bringing together health advocates from
all over the CSL network to implement
its multi-year global health and wellness
strategy. This work in health and
wellness is being paired with a renewed
investment into CSL’s EHS culture and
employee engagement processes,
to further strengthen the employee
experience in all areas of environmental
health, safety and sustainability.
CSL’s Health and Safety Performance
Total Recordable Injury Frequency Rate (TRIFR)^†
Year‡
Operations
Targets
23–24*
22–23#**
21–22**
Non-CSL Plasma sites#
≤3.5
0.70
0.94
1.39
CSL Plasma sites#
≤10.8
9.75
12.1
10.67
Fatalities (employees and contingent workers)#
0
0
0
0
* Limited assurance by Deloitte.
** 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).
‡ 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.
^ This 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. This 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.
# This includes CSL Vifor, Switzerland manufacturing facility and head office following
the acquisition in August 2022.
41
Healthier World
CSL continued to evolve its sustainability
strategy and framework during
the reporting period. In addition to
executing on key environmental
initiatives, CSL focused on expanding its
focus areas, in previously termed ‘Social’
and ‘Workforce’ pillars, as well as setting
preliminary targets that seek to enable
healthier communities.
CSL’s sustainability goals and targets
position CSL to achieve its long‑term
strategy in alignment with CSL’s
purpose and values, creating a
foundation for success and shared value
creation through 2030 and beyond.
HEALTHIER COMMUNITIES
CSL understands that when it aligns its
efforts with core expertise and business
goals, addressing priority focus areas
and material topics in the context of
the business and the industry, it can
have the greatest positive impact. CSL
has evolved its sustainability strategy
during the reporting period, with the
goal of deploying its resources to service
stakeholders in the focus areas of Access
and Affordability, Patient Experience
and Donor Experience. This is CSL’s
commitment to ‘Healthier Communities’,
because it recognises that healthier
communities benefit all.
CSL is committed to a healthier world.
Our vision is a sustainable future for our employees,
communities, patients and donors, inspired by
innovative science and a values-driven culture
and recognises that ‘Healthier Communities’
and a ‘Healthier Environment’ benefit all.
In addition to material topics featured,
CSL’s healthier communities focus
areas include:
•
access & affordability – advance
equitable access to our medicines
and vaccines
•
patient experience – elevate patient
experience in drug development
by embedding patient insights
and lived experience
•
donor experience – create best‑in‑class
donor experience in partnership
with donors and communities, by
continuously innovating the donation
process, supporting donors’ holistic
well‑being, and investing in the
health equity of donor communities.
Limited Annual Report 2023/24
42
In December 2023, 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 2024, CSL Vifor recalled* 30 mL
Maltofer® drops as precautionary
measure due to the presence of plastic
particles from the dropper in some units
attributed to the packaging process
performed at the contract manufacturer.
This year, there were eight counterfeit
products reported to and confirmed by
CSL Behring. CSL Behring is evaluating
packaging security solutions that will
make it more difficult for counterfeiters
to replicate CSL’s products and will make
identification of counterfeit products
easier. 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.
Over the financial year, CSL underwent
several good manufacturing practice
inspections that involved patient safety
and pharmacovigilance (PV), one
combined European Medicines Agency
(EMA)/US Food and Drug Agency (FDA)
pre-approval inspection and one local PV
inspection by the Health Authority of the
Netherlands. None of these inspections
identified any significant failing of the
pharmacovigilance system and for the
findings identified, CSL’s proposed
actions were considered appropriate.
In addition, CSL pharmacovigilance and
regulatory quality assurance (PVRQA)
performed a total of 82 PV audits
for CSL Behring, CSL Seqirus and
CSL Vifor to support a robust
pharmacovigilance system.
None of these audits resulted in an
outcome that affected CSL’s ability
to supply product.
Product quality and safety
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 the reporting period, CSL’s quality
systems, plasma collection and
manufacturing operations were subject
to a total of 479 regulatory agency
inspections* around the world. Of these,
31 good manufacturing practice (GMP)
regulatory agency inspections* took
place at our manufacturing facilities
and distribution centers, and 448
regulatory inspections* at our plasma
collection centres. These 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.
Guided by CSL’s Community Contributions Policy and investment focus areas of support, in 2023/24,
CSL contributed US$45.3 million to support global community efforts where we operate.
*
Limited assurance by Deloitte.
479
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*
US$13.5b
Economic value distributed over the
reporting period in supplier payments,
employee wages and benefits,
shareholder returns, government
taxes and community contributions*
57%
to patient communities
41%
to innovation and science
2%
to local communities
•
Enhancing quality of
life for patients with
the conditions our
therapies treat
•
Improving access to our
biological medicines
•
Advancing knowledge
in medical and
scientific communities
•
Fostering the next
generation of medical
researchers
•
Supporting community
efforts where we live
and work
•
Supporting communities
in times of emergency
FOCUS
AREA^
SUB FOCUS
AREAS
43
Access to CSL’s products
CSL has a great opportunity to
contribute to healthier communities
through its continued supply and
development of new therapies for
unmet medical needs, while enabling
greater access to life-saving vaccines,
iron therapies, and plasma- and
protein‑based therapies. Extending
the reach of its therapies and vaccines
means CSL can help advance equitable
access across vulnerable populations
and share its expertise to help build
capabilities where they are needed.
As CSL continues to develop and
commercialise biopharmaceutical
innovations that evolve the treatment
paradigm, such as gene therapy,
it is committed to working with
governments, insurance 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 continues to work
with varying levels of governments,
health insurance payers and other
stakeholders to support timely and
appropriate market entry and access,
to enable patients to benefit from its
therapies as quickly as possible.
CSL values an ongoing dialogue with
policymakers, advocacy groups, and
other stakeholders to understand and
respond to their needs and expectations.
CSL is also a substantial supporter
of, and provides, patient assistance
programs and supports advocacy
efforts that improve access to care
and affordability.
Improving access for patients with immune deficiencies
CSL recognises the importance of collaborating with patient advocacy
organisations to help bridge health equity gaps and provide access to
medicines through resources and solutions. CSL Behring’s donation to patient
advocacy organisations aligns with its overall strategic business goals and
principles of general social responsibility, by funding support and education,
and through advocacy that helps improve health outcomes.
Over the reporting period, CSL provided funding support through charitable
donations to Hereditary Angioedema International (HAEi) and the
Jeffrey Model Foundation (JMF).
CSL donated €500,000 to HAEi in the areas of education, technology and
advocacy activities encapsulated in the four strategic pillars for HAEi, including;
Member Organisation Development, ACARE: Collaboration with the Global
Physician/Scientific Community, HAEi Youngster’s Community, and HAEi
Initiated Data Driven Advocacy Research.
In addition, the charitable donation supports HAEi’s Regional Patient
Advocates (RPAs) in HAE patient identification and outreach, support,
training and additional HAEi initiatives in developed and developing countries,
including in Europe, Middle East, Africa, Asia Pacific, Southeastern Asia,
America, South America and Mexico.
CSL also donated US$550,000 to the JMF to support eleven Jeffrey Modell
Diagnostics and Research Centres for Primary Immunodeficiencies.
The funding support will provide comprehensive physician education and
public awareness campaigns in the areas of early diagnosis, education and
public health awareness around access to care, and improved quality of life.
The 11 Jeffrey Modell Diagnostic and Research Centres are in developed
and developing countries including Algeria, Egypt, Morocco, Tunisia,
Argentina, Brazil, Mexico, Turkey, Austria, Belgium, Switzerland, Japan,
China and Australia.
CSL Behring has been a longstanding partner of JMF within and outside
the United States.
Healthier World
*
Limited assurance by Deloitte.
Dollar value is a sub-set of CSL’s
total community contributions.
Does not include CSL Vifor as
available data is not captured via
the same method as the CSL Group.
US$15.7m
supporting product access
across the world*
44
Limited Annual Report 2023/24
Driving positive
outcomes for people with
bleeding disorders in
developing countries
In 2024, CSL continued its access
work through its partnership with
the World Federation of Haemophilia
(WFH), which began in 2009. In 2022,
CSL committed to donate 100 million
international units (IUs) of coagulation
factor therapy per year to the WFH,
as part of CSL’s continued support of
the WFH Humanitarian Aid Program.
The product is manufactured
for donation purposes and has a
standard shelf life of three years,
which allows WFH to widely distribute
this life‑saving therapy as needed.
These donations allow people with no
or limited access to vital therapies for
the bleeding disorder haemophilia A
to receive the care they need in more
than 50 developing countries.
CSL’s donation has helped treat over
12,000 acute bleeds, with more than
5,500 people with bleeding disorders
(PWBD) treated and over 1,600 PWBD
receiving ongoing prophylaxis
therapy to prevent bleeds. Supporting
18 developing countries as prioritised
by the WHO and with the capabilities
and resources available to provide
continued prophylaxis treatments
and major surgeries. Data is based on
calendar year and reflects CSL’s first
full year of the five-year commitment.
In FY23, CSL Behring initiated the
first proactive delivery of 50 million
IUs to the WFH. 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 improvements to
people with no access to care for
bleeding disorders.
CSL has made a systematic
commitment to contribute products
to WFH. Manufactured specifically for
WHF, the product was shipped from
CSL Behring’s Marburg, Germany
facility to the WFH site in Belgium.
The product is then distributed, at WFH’s
discretion, to over 50 countries based
on need. CSL’s contribution is especially
important in providing and increasing
prophylaxis therapy for children and
adults, which also can help decrease
the number of acute bleeding incidents
and improve surgery outcomes.
Access and affordability
commitment:
CSL’s ambition is to advance
equitable access to its medicines
and vaccines by designing
programs around vulnerable
populations and expanding
strategic donations.
Through extension of existing WFH
partnership, by 2030, CSL aims to:
•
Enable 2,100 people with
bleeding disorders to access
prophylaxis therapy across
25 capable low and middle
income countries.
During the 2023 calendar year
Case Study
18
countries with prophylaxis or major surgeries (cumulative)
>100m
IUs of coagulation factor donated
>50
developing countries in receipt of
CSL’s donated coagulation factors
>5,500
people with bleeding
disorders (PWBD) treated
>1,600
people with bleeding disorders
(PWBD) on prophylaxis
>5,500
acute bleeds treated
>5,500
surgeries supported
45
Aiding the EU and US with avian
influenza preparedness
CSL Seqirus was selected by the
Health Emergency Preparedness and
Response Authority (HERA), part of the
European Commission (EC), to deliver
665,000 pre‑pandemic vaccine doses
for 15 EU and EEA Member States as
well as to the “Union Civil Protection
Mechanism” (rescEU). The vaccine is
well-matched to the H5 of the H5N1
strain circulating in 2024. This acquisition
of pre-pandemic (zoonotic) vaccine will
create a stockpile of vaccines available
to support the EC’s outbreak and
pre‑pandemic response.
In addition, the four-year contract
includes an option for participating
authorities to purchase up to an
additional 40 million doses of the
pre-pandemic vaccine over the life of
the contract. The vaccines are being
manufactured in CSL Seqirus’ European
manufacturing sites in which utilises
a scalable method of production.
CSL Seqirus was also selected by the
Biomedical Advanced Research and
Development Authority (BARDA),
part of the Administration for Strategic
Preparedness and Response (ASPR)
within the U.S. Department of Health
and Human Services (HHS), to
complete the fill and finish process
of pre-pandemic vaccine for the
U.S. government as part of the National
Pre-Pandemic Influenza Vaccine
Stockpile (NPIVS) program. Under the
terms of the agreement, CSL Seqirus
will deliver approximately 4.8 million
doses of pre-pandemic vaccine that is
well-matched to the H5 of the currently
circulating H5N1 strain. The vaccines
will be produced at CSL Seqirus’
manufacturing facility in Holly Springs
(US), which is the largest cell-based
influenza vaccine producer in the world
and is the first such facility in the US.
Healthier World
Supporting World Health
Organization’s pandemic
influenza preparedness
Over the reporting period, CSL Seqirus
continued its multi-million‑dollar
financial support for the World Health
Organization’s (WHO) Pandemic
Influenza Preparedness (PIP)
Framework. The PIP Framework
brings together Member States,
industry, other stakeholders and
WHO to implement a global approach
to pandemic influenza preparedness
and response. Its key goals include: to
improve and strengthen the sharing of
influenza viruses with human pandemic
potential; and to increase the access of
developing countries to vaccines and
other pandemic related supplies.
46
Limited Annual Report 2023/24
Patient experience
Relationships with key stakeholders,
including healthcare professionals,
regulators, clinical groups, patients, and
their communities deepen over time,
adding significant value to the business
and securing CSL’s license to operate.
By working closely with patients, CSL
can identify and pursue innovations
that address unmet medical needs.
In recent years, the biopharmaceutical
industry has acknowledged the central
role of the patient, acknowledging that
patients are the experts on the reality of
living with their condition. CSL, which
develops and manufactures medicines
and vaccines, lists patient focus as its
foremost value and, for several years, has
actively supported outreach programs.
One such initiative is the Center for
Information and Study on Clinical
Research Participation (CISCRP) which is
focused on clinical trials and improving
the patient experience. Additionally,
CSL is a founding member of PALADIN
(Patient Advocacy Leaders and Drug
Development Industry Network), a new
organisation dedicated to optimising
collaboration between the industry and
patient advocacy groups in researching
new treatments, as well as engaging in
the EUPATI (European Patient Academy
on Therapeutic Innovation).
Clinical trials in progress and new
In 2023/24, CSL had 60 clinical trials in
operation across all therapeutic areas.
Of those, seven trials 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.
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),
good clinical laboratory practice
(GCLP) and good research laboratory
practice (GRLP).
Over the reporting period, eight clinical
trials were added, and 13 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, 13 inspections were
undertaken by regulatory agencies
including the US Food and Drug
Administration (FDA), European
Medicines Agency (EMA) and the
Japanese Pharmaceuticals and Medical
Devices Agency (PMDA). The inspections
included nine GCP Inspections
(two Sponsor and seven Investigator
Sites), two GCLP inspections, one GVP
inspection and one GMP inspection.
All inspections confirmed adherence
with GCP requirements, validated the
data integrity of CSL clinical trials and
had no impact on clinical trial operations.
One of CSL’s most significant
achievements for this fiscal year is
the development of a Patient Focus
Playbook. The Playbook was created
as a guide to help R&D stakeholders
navigate any uncertainties, and provide
some standards, regarding how patient
engagement should be included across
the product development lifecycle.
The Playbook was developed utilising
a network of peer stakeholders from
across the organisation and external best
practices. These are only a few examples
that exemplify CSL’s dedication to
embedding patients’ insights and
fostering a culture of patient focus
into the daily work ethic of employees
to maintain a strong patient-focused
infrastructure.
CSL understands the importance
of diverse participation in clinical
trials. Ideally, the mix of clinical
trial participants would mirror the
demographics of the population
affected by the studied indication,
yet minorities often remain
underrepresented in clinical trials.
Participants in clinical trials help
answer important questions about
potential new treatments, paving the
way for innovation that will benefit
future patients. Participation may also
offer patients the opportunity to be
among the first to receive innovative
treatments. Therefore, it is crucial that
the composition of clinical trials reflects
that of the general population.
Patient experience commitment
CSL’s ambition is to elevate the Patient Experience in drug development by
embedding patient insights and lived experience through patient-informed
clinical development programs and formalising diversity plans to include
representative populations.
CSL’s Goals for 2030:
•
Informed Product Development: ensure all of CSL’s therapeutic product
development programs are informed by patient insights.
•
Diverse Clinical Trials: ensure Phase III clinical trials incorporate diversity
that is representative of the target indicated population.
60
clinical trials in operation
across all therapeutic areas
13
regulatory authority
inspections with no impact
to clinical trial conduct
47
CSL’s goal is to make patient
engagement a standard practice to
improve how therapies are developed
and to deliver results focused on
patients’ needs, both within CSL and
across the industry. CSL believes it can
amplify its impact through strategic
partnerships with industry partners
and patient organisations to pursue
these ambitions.
Patient focus across
the organisation
CSL continues to underscore its
commitment to patient focus at
both the global and local levels,
identifying mutually beneficial ways
to partner with patient stakeholders
to address community needs and
advance collective expertise across
our therapeutic areas.
Recognising that health education
and health equity are crucial
elements of patient empowerment
and pivotal components for
successful collaboration with patients
in the development of CSL therapies,
CSL R&D partnered with Clinispan
Health and local US Plasma centres
to organise three community health
summits. These summits, held in
Raleigh, North Carolina, Philadelphia,
Pennsylvania and Charlotte, North
Carolina, featured keynote speakers
and panel discussions including
community‑based healthcare
leaders. The events aimed to
educate minority and underserved
populations about the importance
of taking control of their health and
the benefits of minority participation
in clinical research. Combined, the
summits attracted 250 in-person
attendees and over 500 online
viewers, with many expressing
gratitude for the new insights
gained and for CSL’s commitment to
addressing healthcare disparities.
Healthier World
*
Limited assurance by Deloitte. Data is
based on 2.3 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.
Donor experience
CSL is committed to improving the
donor experience, supporting donors’
holistic well-being and investing in the
health equity of donor communities,
because CSL recognises that it all starts
with the plasma donors who make
CSL’s life-saving therapies patients
rely on possible.
At the core of CSL’s efforts to provide
the safest and most positive experience
possible is our continued investment
and commitment to innovation.
CSL’s notable initiatives during the
current year for improving the donor
experience through individualised
Nomograms and the improvements
made throughout CSL’s Plasma centres
with the REACH program is outlined in
the Innovation section at page 30.
Donor experience commitment
CSL’s ambition is to create
best‑in‑class donor experience
in partnership with donors and
communities, by continuously
innovating the donation process,
supporting donors’ holistic well-
being, and investing in the health
equity of donor communities.
CSL’s initial goal for 2030 is to initiate
new programs to promote health
awareness resources, ensuring that
at least 30% of donors gain access.
Furthermore, CSL intends to increase
donor satisfaction survey results,
utilising a new customer satisfaction
methodology to be implemented
and baselined in FY25.
CSL Plasma donor profile
and survey results
CSL’s plasma donors all have a unique
story to share about why they donate.
Some donors supplement their income
to help make ends meet, while others
have been personally impacted by
a loved one with a rare condition or
while in the hospital, has benefitted
from plasma-derived therapies and
the donor has chosen to help others in
need. Each person’s plasma donation
story is unique, and CSL honours and
appreciates each of them.
CSL donors are diverse and come from
all walks of life. An ongoing project of
CSL Plasma has been to find out more
about donors, who they are, what they
do, and why they donate. CSL’s goal is to
continue to provide a best-in-class donor
experience. This will include using new
customer satisfaction methodologies
and surveys to be implemented in FY25,
while at the same time taking steps to
share resources with donors in an effort
to help improve their well-being.
Based on self-reported survey data
administered through the CSL Plasma
mobile app (1 July 2023 to 30 June 2024),
CSL Plasma donors provided details on
their occupational status:*
•
54% 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.
•
9% described themselves as
other (e.g. military, retired).
Of those plasma donors surveyed,
94% are willing to donate again, and
90% of plasma donors are willing to refer
a friend to donate plasma at their CSL
Plasma centre.*
94%
of plasma donors willing to
donate again*
90%
of plasma donors are willing to
refer a friend to donate plasma
at their CSL Plasma centre*
48
Limited Annual Report 2023/24
Pete’s Story
Pete D. is a longtime CSL patient advocate living with
haemophilia B whose life serves as an inspiring example of
what’s possible while living with a rare bleeding disorder.
Pete is a husband, a father, and a teacher who takes time out each year to serve
as a coach for CSL’s Junior National Championship event, a sports competition
for children living with bleeding disorders.
Pete D.
Haemophilia B Patient
49
HEALTHIER ENVIRONMENT
Delivering on CSL’s Promise to preserve
a Healthier Environment.
CSL’s commitment to a healthier world
means delivering for both people and
the planet. CSL takes this responsibility
seriously, and CSL’s promise is to
continue to further build environmental
considerations into the business so CSL
can deliver a sustainable world for the
next century and beyond.
During the reporting period, CSL has
continued to advance its environmental
strategy, which has included the
development of targets for water
use and waste and on the pragmatic
execution of initiatives towards
achieving set emission reduction
targets. CSL is proud of the progress
made throughout the period.
In addition to material topics featured,
CSL’s strategic sustainability focus
areas include:
•
energy – undertake initiatives that
reduce emissions internally and
across our supply chain
•
waste – divert waste from landfill
through reducing, reusing, recycling
and composting
•
water – identify, prioritise and
implement water reduction initiatives
Healthier World
Environmental management
CSL is committed to conducting
all its operations in a way that
minimises negative impact on the
environment, protects biodiversity
and conserves natural resources.
CSL views environmental stewardship
as its responsibility and an opportunity
to build healthier and more
sustainable communities.
In line with CSL’s commitment and
promoting environmental protection
management approach, there
were no significant environmental
breaches^ at CSL operations
during the reporting period.
CSL has an established Environment,
Health, Safety (EHS) function and an EHS
management system, which ensures
our facilities operate to industry and
regulatory standards. During the year
CSL’s Global Environmental, Health,
Safety and Sustainability (EHSS)
Policy was reviewed and updated and
communicated to all CSL employees
and made available to external
stakeholders via CSL.com.
^
A significant environmental breach
is defined as a non-compliance with
environmental legislation in the
jurisdiction in which the event occurs,
that has an impact rating of major or
critical for environmental or regulatory
dimensions as per CSL’s Enterprise Risk
Management Framework.
In celebrating environmental
consciousness, sustainability
and preservation, CSL Seqirus,
Holly Springs hosted a photo
contest for all employees on
Earth Day in April 2024. Photos
of nature, conservation efforts,
or environmental activism were
welcomed and encouraged.
This was the winning photo
capturing the natural beauty
of Moraine Lake, Banff National Park,
Canada, taken by Lalit Das (Scientist).
50
Limited Annual Report 2023/24
Climate and Carbon and
Energy Efficiency
CSL’s energy and emissions profile
Combined, CSL’s manufacturing facilities
and CSL Plasma centres contribute
to most of CSL’s energy consumption
and greenhouse gas (GHG) emissions.
CSL’s total reported Scope 1 and 2
GHG emissions for 2023/24 increased.
The increase in reported emissions is
due to improved data collection for
Scope 1, refrigerants from CSL facilities.
Underlying Scope 1 and 2 GHG emissions
remained relatively flat compared to
the previous year, most notably whilst
production returned to pre-COVID levels.
There was a minor increase in energy
consumption.
Scope 1 GHG emissions are direct
emissions from CSL activities and
primarily come from the combustion
of fossil fuels. The greatest proportion
of these emissions comes from
burning natural gas, predominantly to
generate steam in boilers and heat and
electricity in cogeneration units at some
manufacturing facilities.
Environmental performance
Indicator
Unit
23–241,2,3
(April–March)
22–231,2,3
(April–March)
21–221,2
(April–March)
Scope 1 GHG emissions4
Metric kilotonnes CO2-e (KT)
130
113
104
Scope 2 GHG emissions4
Metric kilotonnes CO2-e (KT)
221
223
243
Scope 1 and 2 GHG emissions4
Metric kilotonnes CO2-e (KT)
351*
336**
347
Energy consumption5
Petajoules (PJ)
4.34*
4.21**
3.92
1.
Data reported are inclusive of CSL Behring and CSL Seqirus manufacturing facilities, CSL Plasma network and CSL Behring and CSL Limited
headquarters.
2. CSL Plasma uses validated factors to calculate electrical power and gas consumption. Utility invoices were used to establish these factors and
calculate natural gas and electricity 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).
3. This includes CSL Vifor manufacturing facility in Switzerland following acquisition in August 2022.
4. The majority of 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). Scope 2 emissions
are market-based.
5. This 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.
* Limited assurance provided by Deloitte.
** Limited assurance provided by Ernst & Young.
Smaller amounts of diesel, petrol and
heating oil are also used as energy
sources for emergency generators,
transport, and other site equipment.
Scope 2 emissions are from purchased
electricity and to a lesser extent
purchased steam, cooling water, heat
and compressed air. Steam is imported
to CSL’s facilities in Wuhan, China,
and Marburg, Germany, facilities as
an energy source. Chilled water, heat
and compressed air are also supplied
to the Marburg facility and heat is also
supplied to the Bern facility. In the
2023/24 financial year, the proportion
of electricity purchased by CSL from
renewable sources increased by 2% to
19%. Manufacturing sites in Germany,
Switzerland and the United Kingdom
(UK) currently purchase 100% of their
electricity from renewable sources.
CSL’s environmental performance
includes data from the following
operations:
•
CSL Seqirus, three manufacturing
facilities – Australia, the UK and
the United States (US);
•
CSL Behring, six manufacturing
facilities – Australia, Germany,
Switzerland, the US including
CSL’s saline manufacturing facility
and China;
•
CSL Vifor, one manufacturing
facility – Switzerland;
•
CSL Plasma operations, including
plasma centres, across China,
Germany, Hungary and the United
States, two major plasma logistics
centres and CSL Plasma’s United
States laboratory;
•
administrative and R&D operations
co-located with CSL’s manufacturing
facilities; and
•
the respective head offices for
CSL Behring (King of Prussia, US),
CSL Plasma (Boca Raton, US) and
CSL Limited (Melbourne, Australia).
51
CSL’s targets and milestones achieved
CSL is committed to reducing
emissions created directly by its
operations by improving the energy
efficiency of our facilities, investing in
renewable electricity and ensuring new
facilities are designed and built with
sustainability in mind.
CSL is excited to see the initial impact
resulting from the hard work and
efforts put into executing these
activities, since our target was set.
For example, transitioning our Australian
manufacturing sites to renewable
energy from January 2025 (see Case
Study page 53). Even with the expansion
of some of our existing facilities and the
return to pre-COVID levels of production
for most products, our total Scope 1
and 2 GHG emissions have remained
relatively stable. CSL’s Scope 1 emissions
increased slightly due to a change in
methodology for refrigerants, where
more accurate data was now available.
Healthier World
Targets and milestones achieved over the reporting period
Scope
1
2
3
Target
40% reduction by 2030
on baseline (335 kilotonnes, KT, of CO2-e)
For 67% of Scope 3 emissions,
applicable third parties have
set science-based Scope 1 and
2 reduction targets by 2030
Key
achievements
for 2023/24
•
Liverpool successfully piloted
a heat recovery system that
will now be rolled out on
additional units
•
Bern signed an agreement to
pursue the feasibility of steam
production from sustainably
sourced woodchips
•
In addition to our progress for
100% renewable electricity
supply to our European
manufacturing sites, CSL
signed a Renewable-Linked
Power Purchase Agreement
for all Australian facilities
•
CSL continues to embed
sustainability into decision
making across the
organisation by adapting
processes to include
sustainability criteria
•
CSL has actively engaged
with 71.3% of suppliers
by emissions to set SBTi
aligned targets
•
51.7% of CSL’s suppliers by
emissions^ have self-reported
to have Scope 1 and 2 SBTi
aligned targets
•
Announced water use and waste targets
•
CSL continues to enhance its portfolio and program governance, including continuing to seek limited
assurance over its Scope 1 and 2 GHG emissions and energy consumption data and water use and looking
to seek limited assurance on total Scope 3 emissions in future.
Whereas Scope 2 emissions decreased
driven by increased renewable energy
use across the CSL enterprise.
In achieving CSL’s emissions reduction
targets, CSL does not anticipate linear
reductions in the earlier years, especially
in Scope 1 emissions. As we execute
on our roadmap and see more of the
company’s projects delivered over the
near term, CSL expects to see further
reductions
CSL intends to continue to reduce
emissions in line with our targets.
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 CSL’s
commitment to minimising its impact
on climate change, in August 2024,
CSL submitted its near term
company-wide emissions reduction
targets to the Science Based Targets
initiative (SBTi) for validation.
Climate change and resilience
CSL is a science-led organisation
which recognises that climate change
affects all aspects of businesses and
communities. 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 human 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.
^
Based on the supplier’s proportion of CSL’s total FY23 Scope 3 emissions.
52
Limited Annual Report 2023/24
Case Study
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 CSL’s most critical
infrastructure: the manufacturing
facilities and warehouses. The
assessment looked at three scenarios
and focused on a near-term time horizon
of 2030, in line with CSL’s 2030 Strategy.
This year CSL extended this climate
risk assessment to include CSL Vifor’s
St Gallen site, Switzerland, as the earlier
assessment was undertaken prior to
CSL’s acquisition of Vifor. CSL assessed
the physical climate-related risks of
the CSL Vifor manufacturing facility
at St Gallen using the worst‑case
climate change scenario to 2030
across three climate change hazards
of chronic and extreme heat, flood
associated with extreme rain and water
scarcity. Utilising CSL’s Enterprise Risk
Management Framework, the results
of the assessment indicated that all
risk identified had a low to moderate
impact on operations.
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 2024, this may change in future
periods as CSL regularly updates its
assessment of the impact of the lower
carbon economy.
Any identified moderate or significant
site-based physical risks are integrated
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, CSL has taken an
enterprise view as these risks generally
span the network of facilities directly
owned by CSL.
You can find more information on
the approach, including scenario
analysis undertaken, on CSL.com
(Sustainability > Environment).
AGL’s Macarthur Wind Farm
Transition to renewable electricity
A key lever in CSL’s Scope 1 and 2 emission reduction target is transitioning
facilities to renewable forms of electricity. In FY23 CSL achieved 100%
renewable electricity supply across CSL’s European Manufacturing Facilities.
In FY24 CSL undertook an extensive review of the Victorian renewable
electricity market and subsequently signed a Renewable-Linked
Power Purchase Agreement (PPA) with Australian energy provider,
AGL. The agreement will significantly advance CSL’s commitment to
reducing Scope 1 & 2 emissions with all electricity used by CSL’s Australian
manufacturing sites matched by renewable electricity certificates, which
in turn reduces CSL’s Scope 2 emissions. The PPA includes a provision that
gives preference to generators located in Victoria to drive investment in
local renewable electricity generation in CSL’s home state.
With the addition of this agreement, beginning in January 2025, CSL
expects to reduce its global combined Scope 1 and 2 emissions (where CSL
has committed to a 40% reduction by 2030) by approximately 23% from
CSL’s emissions baseline (FY19 to FY21).
The seven-year agreement is a long-term commitment to procure from AGL
electricity that is 100% matched by renewable electricity certificates (which
are created in respect of each quantity of renewable electricity generated by
an eligible power station under the renewable electricity scheme). Initially,
AGL will provide Large Scale Generation certificates, which are expected
to be generated from the Macarthur Wind Farm located in Victoria.
CSL will continue to transition global facilities to renewable forms of
electricity in FY25, with current efforts focused on reviewing the US
renewable electricity market.
53
Healthier World
Circularity, waste and resource management
Water, waste and recycling trends
CSL’s water consumption increased slightly during the period, compared to last year.
Total waste generated also increased. Increases in both water consumption and
total waste primarily related to the return of pre-COVID levels of plasma collection
volumes and increased production at our manufacturing facilities. The proportion
of waste recycled also increased and this is primarily due to waste solvent from
manufacturing operations being recovered and recycled either onsite or offsite.
Indicator
Unit
23–241,2,3
(April–March)
22–231,2,3
(April–March)
21–221,2
(April–March)
Water
consumption
Gigalitres (GL)
5.34*
4.86
4.67
Total waste
Metric
kilotonnes (KT)
93.64
72.00
55.54
Waste
recycling rate4
%
48
44
38
1. Data reported is inclusive of CSL Behring and CSL Seqirus manufacturing facilities, CSL
Plasma network and CSL Behring and CSL Limited headquarters. Information related to the
Boca Raton office in the US is currently not available and excluded from the total reported
water consumption. CSL intends to include this information in our next Annual Report.
2. CSL Plasma uses validated factors to calculate water consumption. Utility invoices were used
to establish these factors and calculate 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 factor is applied to calculate the estimated waste impact per volume of plasma collected.
3. This includes CSL Vifor manufacturing facility in Switzerland following acquisition in
August 2022.
4. The recycling rate represents the proportion of total waste generated that is either reused
or recycled onsite or offsite.
*
Limited assurance provided by Deloitte.
Biodiversity and minimising
CSL’s environmental footprint
CSL recognises that responsible
management and the efficient use of
natural resources is critical to a healthier
environment that promotes healthy
ecosystems and biodiversity.
The Company is working towards
better understanding its potential local
biodiversity impacts and mitigation
strategies, and has undertaken a
high‑level assessment of the locations
of all our manufacturing facilities with
regards to proximity to biodiversity
sensitive areas. This assessment
showed that currently none of CSL’s
manufacturing facilities is located in
or near to biodiversity sensitive areas.
CSL’s embedded environmental
management policies and practices
allow the Company to reduce the risk of
causing harm and minimise any impact
it has on the environment. These steps
include the appropriate management
of stormwater runoff, and containment
in the unlikely event of a chemical spill
at all of CSL’s manufacturing facilities.
Further to CSL’s commitment of
responsible management of the
Company’s environmental impacts,
there have been no significant
environmental management issues
such as pollution or chemical spills at
any of our manufacturing facilities in
the reporting period. In addition, this
year CSL has prioritised its efforts to
divert waste from landfill and reduce its
water usage by developing reduction
targets, outlined in the box to the right
of this page.
Read more at csl.com/sustainability
Commitments for waste and water
CSL continued to advance its environmental strategy during the year in the
focus areas of waste and water, with the development of waste and water
reduction targets.
CSL’s waste and water reduction targets aim to serve as a tangible and
transparent roadmap towards reducing our impact. By 2030, CSL aims to:
>90%
Divert more than 90% of
manufacturing waste from
landfill i.e., ‘Zero Waste’ at all
manufacturing sites
0%
Achieve zero percent absolute
growth in water use, from a
FY2021 baseline at three priority
manufacturing sites, Kankakee
(US), Broadmeadows and
Tullamarine (Australia) which are
located in regions forecast to be
water stressed by 2030.
Reduce
Reduce percentage of waste to
landfill year on year for its plasma
collection centres
Minimise
Minimise percentage of waste
incinerated (if site is already
zero waste)
54
Limited Annual Report 2023/24
Waste
One of CSL’s environmental strategy
focus areas is to divert waste from
landfill through reducing, reusing,
recycling and composting, as
demonstrated by the targets set above.
To achieve our 2030 ambitions CSL will:
1) reduce absolute waste by adapting
process and purchasing decisions;
2) improve recycling and reuse
through improved segregation and
identification of novel waste disposal
pathways; and
3) improve composting of organic
materials through improved
segregation.
Currently 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 US facilities.
CSL continues to demonstrate improved
recycling rates during the reporting
period. Compared with the prior year,
CSL’s waste recycling rate increased by
4% to 48% of total waste.
Water
Water is a precious and limited
resource, that is why it’s one of CSL’s
environmental focus areas. CSL’s focus
on water is to identify, prioritise and
implement water reduction initiatives.
That is why CSL has set a target to
achieve zero percent absolute growth
in water use, against FY2021 baseline,
at three priority manufacturing sites,
Kankakee, Broadmeadows and
Tullamarine, which are located in regions
forecast to be water stressed by 2030.
To ensure CSL conserves water in
water‑stressed regions where the
Company operates, CSL will utilise
the following levers to meet our
2030 ambitions:
1) capture and reuse clean wastewater
2) optimise large-scale cleaning
processes
3) treat and reuse wastewater.
Packaging
CSL’s objective is to reduce the amount of waste that is generated throughout
the production and use of all products. A key area of focus is to identify and
implement initiatives to reduce and recycle materials used for packaging and
distribution of its products. In Australia, CSL is a signatory to the Australian
Packaging Covenant and reports regularly on plans and progress to
minimise waste.
CSL continues to:
•
prescribe the use of sustainable materials in packaging development and
reduce the size of packaging when existing packaging is adapted;
•
progress towards electronic leaflets with the Australian Therapeutic Goods
Administration (TGA) approving electronic product information leaflets (ePIL),
from September 2023 for many boxed injectables for use by Australian health
care professionals, where a history of safe use has been demonstrated; and
•
progressively remove leaflets from products where applicable.
Further, over the reporting period a ‘Future Pack’ initiative was launched to
reimagine CSL Behring’s packaging in 2030. In the future the use of sustainable
materials, minimalist designs that reduce the amount of packaging will be
combined with operational changes to improve efficiency, reduce waste and
reduce transport costs.
CSL is also exploring various methodologies and processes required to undertake
product lifecycle assessments.
55
Governance
Governance structure
CSL believes that its governance
framework fosters a high performing
and respectful culture while
underpinning CSL’s Values. CSL’s
Values are the core of how CSL
employees interact, make decisions
and solve problems.
The Board has a formal charter
documenting its role, responsibilities,
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 CSL Board at CSL, Melbourne.
Reading from left to right (standing):
Dr Megan Clark,
Professor Andrew Cuthbertson,
Ms Fiona Mead (Company Secretary),
Dr Paul McKenzie (CEO and MD),
Professor Duncan Maskell
and Ms Alison Watkins.
Reading from left to right (seated):
Ms Carolyn Hewson,
Dr Brian McNamee,
Ms Samantha Lewis and
Ms Marie McDonald.
56
Limited Annual Report 2023/24
Read more at csl.com/we-are-csl/
corporate-governance
The diagram above 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 CSL’s people,
through the management levels, to the
Board and ultimately the shareholders
and key stakeholders.
Board composition
Throughout the year there was a
maximum of nine directors on the Board.
At the date of this report, there are nine
directors on the Board, comprising eight
independent non‑executive directors
and one executive director.
Since 1 July 2023 to the date of this
report, the following changes to
directorships occurred:
•
Ms Carolyn Hewson was re-elected as
a director at the 2023 Annual General
Meeting, held on 11 October 2023;
•
Mr Bruce Brook retired from the
Board as a non-executive director on
11 October 2023; and
•
Ms Samantha Lewis joined the
Board as a non-executive director
on 1 January 2024.
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 2023/24
Corporate Governance Statement
available at CSL.com (We Are CSL >
Corporate Governance).
Key Stakeholders, including Shareholders
Board
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Code of Responsible Business Practice
Our Values
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Innovation
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Board of Directors
Governance
Brian McNamee AO
MBBS, FTSE
Age 67
Chair and Independent
Non-executive Director
Director of CSL Limited since February 2018
and Chair from October 2018.
Paul McKenzie
PhD (Chemical Engineering)
Age 58
CEO and MD (Non-independent
Executive Director)
Director of CSL Limited since December 2022,
and appointed Chief Executive Officer and
Managing Director in March 2023.
Megan Clark AC
BSc (Hons) PhD
Age 66
Independent Non-executive Director
Director of CSL Limited since
February 2016.
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).
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. Dr McKenzie 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.
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):
•
Chancellor of Monash University
(since July 2024);
•
Member of MITRE Advisory Board
(since December 2022);
•
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);
•
Member of the Australian Advisory
Board of the Bank of America
(since July 2010); and
•
Former Director of Rio Tinto
Limited and Rio Tinto Plc (from
November 2014 to December 2023).
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.
58
Limited Annual Report 2023/24
Andrew Cuthbertson AO
BMedSci, MBBS, PhD, FAA, FTSE, FAHMS
Age 69
Independent Non-executive Director
Director of CSL Limited since October 2018,
and a Non-executive Director since
October 2021.
Carolyn Hewson AO
BEc (Hons), MA
Age 69
Independent Non-executive Director
Director of CSL Limited since December 2019.
Samantha Lewis
BA (Hons), CA
Age 54
Independent Non-executive Director
Director of CSL Limited since January 2024.
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):
•
Chair of the interim Scientific
Advisory Board for the Cumming Global
Centre for Pandemic Therapeutics
(since August 2023);
•
Deputy Chancellor of the University
of Melbourne (since January 2023);
•
Member of The University of Melbourne
Council (since January 2020); and
•
Director of the Grattan Institute
(since January 2019).
Board Committee memberships:
•
Chair of the Innovation and
Development Committee; and
•
Member of the Corporate Governance
and Nomination Committee.
Ms 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):
•
Member of the Reserve Bank Board
(since April 2021); and
•
Director of Infrastructure SA
(since January 2019).
Board Committee memberships:
•
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.
Ms Lewis is an experienced non-executive
director serving on boards of ASX 100
companies since 2014.
Ms Lewis is a chartered accountant with
extensive experience in accounting, finance,
auditing, risk management, corporate
governance, capital markets and due
diligence. Prior to becoming a Non-executive
Director, Ms Lewis spent 24 years with
Deloitte, including 14 years as a Partner. In that
role, she acted as lead auditor of a number of
major Australian listed entities and provided
accounting and transactional advisory
services including due diligence, IPOs and
debt/equity raisings. Ms Lewis has significant
experience working with companies in the
manufacturing, retail and industrial sectors.
She is currently a Non-executive Director at
Nine Entertainment Co. Holdings Limited and
Australia Pacific Airports Corporation Limited.
Other directorships and offices
(current and recent):
•
Director of Australia Pacific Airports
Corporation Limited (since October 2022);
•
Director of Nine Entertainment Co.
Holdings Limited (since March 2017);
•
Former Director of Orora Limited
(from March 2014 to April 2024);
•
Former Director of Aurizon Holdings
Limited (from February 2015 to
October 2023); and
•
Former Chair of APRA’s Audit and
Risk Committee (from June 2016
to December 2022).
Board Committee memberships:
•
Member Audit Risk
Management Committee.
59
Governance
Duncan Maskell
MA, PhD, FMedSci, Hon Assoc RSVC
Age 63
Independent Non-executive Director
Director of CSL Limited since August 2021.
Marie McDonald
BSc (Hons), LLB (Hons)
Age 68
Independent Non-executive Director
Director of CSL Limited since August 2013.
Alison Watkins AM
BCom
Age 61
Independent Non-executive Director
Director of CSL Limited effective from
August 2021.
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);
•
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);
•
Former Director of Universities Australia
Limited (from October 2018 to June 2023);
and
•
Former Director of the Grattan Institute
(from November 2018 to August 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):
•
Member of the Law Committee of the
AICD (since March 2023);
•
Member of Melbourne University
Law School Foundation Board
(since October 2021);
•
Director of Nufarm Limited
(since March 2017);
•
Director of The Walter and Eliza
Hall Institute of Medical Research
(since October 2016); and
•
Director of Nanosonics Limited
(since October 2016).
Board Committee memberships:
•
Member of the Audit and Risk
Management Committee; and
•
Member of the Human Resources
and Remuneration Committee.
Ms Watkins brings deep experience to
CSL’s 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 PGA of Australia
(since December 2022);
•
Director Geoff Ogilvy Foundation
(since September 2022);
•
Director Wesfarmers Limited
(since September 2021);
•
Chancellor of the University of Tasmania
(since July 2021);
•
Member of the Reserve Bank Board
(since Dec 2020); and
•
Former Director of Centre for Independent
Studies (rom December 2011 to June 2024).
Board Committee memberships:
•
Chair of the Audit and Risk Management
Committee; and
•
Member of the Human Resources and
Remuneration Committee.
Board of Directors
60
Limited Annual Report 2023/24
Fiona Mead
LLB (Hons), BComm
Age 55
Company Secretary and
Head of Corporate Governance
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.
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. CSL’s 2023/24
Corporate Governance Statement
summarises the responsibilities of each
of these committees. A copy of the
Corporate Governance Statement and
the committee charters is available on
CSL’s website as CSL.com.
61
Governance
Greg Boss
JD, BS (Hon)
Age 62
Executive Vice President, Legal and
CSL Group General Counsel
Hervé Gisserot
IEP
Age 58
Senior Vice President and
General Manager CSL Vifor
Mark Hill
BA (Organisational Management)
Executive MBA (Information Technology
Management)
Age 63
Executive Vice President,
Chief Digital Information Officer
Greg was appointed Group General Counsel
in 2009 and is responsible for worldwide legal
operations, risk management and compliance
for all CSL Group companies. He joined CSL
in 2001, serving as General Counsel for what
became the CSL Behring business.
Prior to joining CSL, Greg was Vice President
and Senior Counsel for CB Richard Ellis
International, after spending 10 years in private
legal practice focusing on corporate and
securities law.
Hervé Gisserot was appointed Senior Vice
President and General Manager of CSL
Vifor in March 2023. He is responsible for
the global CSL Vifor Business unit strategy
and operations, leading a team of approx.
2,000 professionals.
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 gained in leadership roles at major
healthcare companies around the world.
Mark Hill is the Chief Digital Information
Officer at CSL. He 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.
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.
For more more information on CSL’s
Global Leadership Group see our website
CSL.com/we-are-csl/ourleadership#GLG
Leadership team
CSL’s Global Leadership Group is
responsible for driving company
performance so that it can keep CSL’s
promises to our patients, our employees
and our shareholders. They have earned
their roles because of their experience,
achievements, unwavering ethics and
commitment to CSL’s core values.
Paul McKenzie
PhD (Chemical Engineering)
Age 58
Chief Executive Officer and
Managing Director
Joy Linton
BComm; F. Fin; GAICD
Age 58
Chief Financial Officer
Dr McKenzie was appointed Chief Executive
Officer and Managing Director of CSL Limited
on 6 March 2023.
After joining CSL as Chief Operating Officer
in 2019, Dr McKenzie became accountable
for optimising CSL’s operations as well as
growing the CSL Seqirus, CSL Plasma, and
CSL Vifor businesses.
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.
Joy Linton 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.
62
Limited Annual Report 2023/24
Kate Priestman
BA (Hon)
Age 50
Chief Corporate & External Affairs Officer
Dave Ross
BA (Finance)
MBA
Age 57
Senior Vice President and General Manager
CSL Seqirus
Andy Schmeltz
BBA (Economics)
MBA (Marketing & Finance)
Age 53
Executive Vice President, CSL Behring
Kate Priestman was named Chief Corporate
& External Affairs Officer in September
2023. In this role Kate is accountable for
building and enhancing CSL’s relationships
with governments and other key external
stakeholder groups, and ensuring the
Company’s reputation and influence as a
market-leading global innovator continues
to grow.
Kate has over 25 years of experience in the
biopharma industry, having served in a series
of commercial and corporate leadership roles
across the sector.
Dave Ross was named Senior Vice President
and General Manager of CSL Seqirus in
April 2024.
With more than 35 years of cross-functional
experience, Dave brings proven leadership skills
to CSL Seqirus’ mission of delivering pioneering
vaccine solutions to people around the world.
Prior to his current position, Dave spent
seven years as CSL Seqirus’ Vice President
of Commercial Operations – North America.
Under his leadership, Dave led his team to
achieve significant and consistent revenue
growth in North America while outperforming
the competition through the implementation
of CSL Seqirus’ Differentiation Strategy.
Andy was appointed Executive Vice President,
CSL Behring in July 2023. He is responsible
for the end-to-end CSL Behring business
spanning plasma collection, manufacturing
and operations, as well as commercialisation
of medicines around the world.
Andy is an established cross-functional
healthcare leader who has held various
roles across multiple disciplines during his
25-plus years in the industry. Andy joined
CSL from Pfizer where he was the Head
of enterprise‑wide Commercial Strategy
& Innovation.
Ken Lim
BCom, LLB (Hons)
Age 50
Executive Vice President and
Chief Strategy Officer
Bill Mezzanotte
MD, MPH
Age 65
Executive Vice President,
Head of Research & Development
Roanne Parry
BACP
Age 51
Chief Human Resources Officer
Ken Lim serves as CSL’s Executive Vice
President and Chief Strategy Officer. 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. A trained
Solicitor, prior to joining CSL, Ken advised
the business on several strategic initiatives as
an investment banker with Merrill Lynch.
Bill Mezzanotte, MD was appointed Head of
Research and Development in October 2018.
He is responsible for developing and executing
CSL’s Research & Development strategy and
portfolio, including the identification and
development of all R&D platforms, skills and
expertise necessary for success.
Prior to CSL, he was Senior Vice President
and Therapeutic Area Head, Respiratory 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.
Roanne Parry was named Chief Human
Resources Officer in January 2024. She is
responsible for further enhancing CSL’s People
strategy as a global employer of choice.
Roanne brings more than 25 years of
global experience and a broad range of
demonstrated leadership and expertise
in organizational development; Diversity,
Equity & Inclusion (DE&I) strategies; talent
acquisition and management; Total Reward
strategies; transformational change and
leadership development.
63
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 CSL’s
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 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 CSL’s products,
its relationships with healthcare
professionals or healthcare organisations
and its research and development,
CSL has 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 CSL’s Third
Party Code of Conduct.
The Company has internal control
systems to ensure financial statements
comply with the applicable local laws
of the countries in which it operates
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).
Governance
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.
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 committees’
review and actions are supported by
the local, regional and global Ethics
and Compliance teams.
64
Limited Annual Report 2023/24
Fair competition
In 2023/24, 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$12,600
in non‑cash corporate political
contributions in the US and A$8,000 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 2023/24, CSL’s governance
arrangements were consistent with the
ASX Corporate Governance Council’s
Corporate Governance Principles
and Recommendations (4th edition).
CSL’s 2023/24 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 the ‘Material Risks’
section on page 14 of this report.
Tax Transparency
While CSL’s roots are proudly Australian,
CSL is a truly global company, with more
than 90% of revenue derived outside
Australia. CSL separately reports on its
global tax footprint, as part of CSL’s tax
transparency reporting.
CSL is subject to the different tax
regimes that apply in each of the
countries where it operates, including
the OECD Country-by-Country
reporting measures.
CSL’s approach to tax is underpinned by
its Value of Integrity. This is consistent
with CSL’s commitment to complying
with all tax laws in the countries in which
it operates. 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. CSL supports 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. CSL encourages 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 CSL’s annual tax
transparency reports can be found on
CSL.com (Sustainability).
Read more at csl.com/we-are-csl/
corporate-governance
65
CSL partners with third parties to assess
the effectiveness of its cybersecurity
program and extends its cybersecurity
standards and expectations to applicable
third-party vendors and service
providers – this includes assessing our
external providers based on defined
cybersecurity criteria.
Over the last year, strategic investments
in cybersecurity have been made to
improve CSL’s threat management
capabilities, proactive defense
posture and rapid response to
cybersecurity events. Still, despite these
advancements, emerging threats –
particularly those enhanced by Artificial
Intelligence (AI) – pose a significant
challenge by introducing a new level of
complexity to cyber-attacks. To counter
these threats, CSL will continue to invest
in defenses, including enhanced threat
detection and response, employing
machine learning to identify and
neutralise adversarial tactics where
technically feasible, and updating our
cybersecurity protocols to keep pace
with new challenges. Innovations such
as self-healing networks, adaptive and
contextual security measures, and
predictive defenses will also be crucial
for mitigating risks and preemptively
addressing the dynamic nature of
cyber threats.
CSL’s business strategy, operations,
or financial condition have not been
successfully affected by cyber-attack
as at the date of this report.
Governance
Privacy
Further, over the reporting period,
CSL has maintained a strong
commitment to the responsible use
of personal data entrusted to us by
patients, donors, employees and
other stakeholders. Key highlights
and performance during the financial
year include:
•
New policies and practices:
CSL maintains an enterprise‑wide
data privacy policy as well as
standards and procedures that
guide the collection, maintenance,
and use of personal data and
considers global legal and regulatory
requirements. CSL has improved
its digital data privacy processes to
help ensure that we are respecting
the right to privacy of individuals and
responsibly collecting and managing
the data we collect.
•
Data privacy issues addressed:
Significant efforts were made
this year to comply with new and
changing data privacy regulations,
such as those in Switzerland and
China. Ongoing monitoring and
assurance seeks to verify that
the business follows data privacy
requirements and CSL’s policies and
meets the standards of existing data
privacy laws.
•
Non-compliance or breaches:
CSL follows a robust Privacy Incident
and Data Breach Response Procedure
in dealing with possible data
privacy incidents. Privacy incidents
are reported to an enterprise-
wide data privacy team for triage
and assessment. Of the privacy
incidents reported this year, four
were substantiated as data privacy
breaches that required reporting
to data protection authorities or
data subjects.
CSL’s dedication to data privacy is
evident in the comprehensive measures
taken to protect personal data and
comply with regulatory standards.
Data protection and
cyber security
CSL collects and holds personal
information about its employees and
key stakeholders, such as plasma
donors, healthcare professionals and
patients. Unauthorised access or use
of this information presents a risk to its
operations, and CSL’s place as a leader
in the biotherapies marketplace.
Data protection
CSL’s cybersecurity program is an
integral part of its broader enterprise
risk management strategy. CSL’s Global
Leadership Group (GLG) and Board of
Directors provide governance of the
program and provide support to ensure
cybersecurity risks are appropriately
managed and CSL complies with the
laws and regulations of the regions
in which CSL operates. CSL’s Chief
Information Security Officer provides
quarterly reports to the Audit & Risk
Committee of the Board of Directors,
ensuring top-level oversight and
strategic alignment.
CSL takes a risk-based approach to
cybersecurity and has constructed its
program around industry frameworks
designed to build resilience against a
dynamic spectrum of cyber threats.
The system consists of cybersecurity
policies, standards, processes, and
practices throughout CSL’s operations
that are designed to detect, prevent,
contain, and respond to cybersecurity
threats and incidents in a prompt
and effective manner with the goals
of minimising business disruption
and preserving confidentiality of
personal information.
The program also includes monitoring,
identification, assessment, and
management processes, coupled with
communication and escalation protocols
that keep the Global Leadership
Group team well-informed of potential
risks. In addition, CSL’s cybersecurity
program includes:
•
perimeter and system safeguards
•
incident response
•
awareness & training
•
threat Intelligence
•
risk assessment & security testing
•
identity governance
•
vulnerability analysis & management
Read more at csl.com/we-are-csl/
corporate-governance
66
Limited Annual Report 2023/24
67
Directors’ 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 2024.
The information referred to below forms part of and is to
be read in conjunction with this Directors’ Report:
•
the Operating and Financial Review (OFR), which
comprises of the following sections:
•
One CSL (from page 2);
•
Performance (from page 6);
•
Innovation (from page 26);
•
Promising Futures (from page 34);
•
Healthier World (from page 42);
•
Governance (from page 56);
•
the Remuneration Report (from page 77); and
•
the Auditor’s Independence Declaration (page 72).
1.
Principal activities, strategy
and operating model
The principal activities of the consolidated entity
during the 2023/24 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 and 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 (from page 6).
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 One CSL (from page 2) and CSL’s Performance and
Strategy (from page 6).
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 assesses 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.
3.
Directors
The directors who served at any time during the 2023/24
financial year or up until the date of this Directors’
Report were Dr Brian McNamee AO, Dr Paul McKenzie,
Mr Bruce Brook, Dr Megan Clark AC, Professor Andrew
Cuthbertson AO, Ms Samantha Lewis, Ms Carolyn Hewson
AO, Professor Duncan Maskell, Ms Marie McDonald and
Ms Alison Watkins AM.
Information on the current Directors, including their
terms of service, qualifications, experience and special
responsibilities, and directorships of other listed companies
held in the last three years, is set out in the Governance
section (from page 56).
Ms Samantha Lewis was appointed as a Non-executive Director
of CSL with effect from 1 January 2024. Mr Bruce Brook retired
from the Board of Directors on 11 October 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 Directors’ 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. Ms Mead began her career as
a lawyer with law firm Ashurst.
5.
Directors’ attendance at meetings
The Board of Directors 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 2023/24 financial
year, the Board of Directors met eight times, with seven of
those meetings held in Australia and one meeting held in
the United States.
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 the 2023/24 financial year is set out in Table 1
on the next page.
68
Limited Annual Report 2023/24
Table 1: 2023/24 Financial Year Director Attendance at Board and Committee meetings
Board of Directors
Audit and Risk
Management
Committee
Human Resources
and Remuneration
Committee
Innovation and
Development
Committee
Corporate
Governance
and Nomination
Committee
A
B
A1
B
A2
B
A
B
A
B
Brian McNamee
8
8
5*
6*
3
3
4
4
Megan Clark
8
75
5*
6
6
3
3
4
4
Andrew Cuthbertson
8
8
5*
6*
3
3
3
3
Carolyn Hewson
8
8
5
5
6
6
3*
4
4
Samantha Lewis3
4
4
3
3
3*
1*
Marie McDonald
8
8
5
5
6
6
3*
Duncan Maskell
8
8
5*
1
3
3
Alison Watkins
8
8
5
5
6
6
3*
3
3
Paul McKenzie
8
8
5*
6
3
3
Bruce Brook4
2
2
2
2
1*
1
1
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. Ms Samantha Lewis was appointed to the CSL Board on 1 January 2024.
4. Mr Bruce Brook retired from the CSL Board effective 11 October 2023.
5. One of the Board meetings was called at short notice.
6.
Dividends
On 12 August 2024, the directors resolved to pay a final dividend of US$1.45 per ordinary share to be paid on 2 October 2024,
unfranked, bringing dividends per share in respect of the 2023/24 financial year to US$2.64 per share. In accordance with
determinations by the directors, CSL does not operate a dividend investment plan. Dividends paid during the 2023/24
financial year were as follows:
Dividend
Date paid
Franking
per share
Amount
per share
US$
Total
dividend
US$
Final dividend for the year ended 30 June 2023
4 October 2023
10% franked at
30% tax rate
129 cents
$623m
Interim dividend for the year ended 30 June 2024
3 April 2024
Unfranked
119 cents
$569m
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
years and expected results
On pages 8 to 18 of the OFR, CSL sets outs its business
strategies and prospects for future financial years and refers
to likely developments in its operations (and the expected
results of those operations) in future financial years. Certain
information is excluded from the OFR, to the extent permitted
by Australian law, on the basis that such information relates
to impending developments or matters in the course of
negotiation and disclosure would likely result in unreasonable
prejudice to the Group.
This is because such disclosure could be misleading due
to the fact it is premature or preliminary in nature, relates
to commercially sensitive contracts, would undermine
confidentiality between CSL and our suppliers and clients, or
would otherwise unreasonably damage CSL. The categories
of information omitted include forward‑looking estimates
and projections prepared for internal management purposes,
information regarding CSL’s assets and projects, which is
developing and susceptible to change, and information
relating to commercial contracts and pricing modules.
69
8.
Significant changes and
subsequent events
Other than as disclosed in this Directors’ Report (which
includes pages 2 to 108 of the OFR) and information as
disclosed in Note 22 (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 2023/24 financial 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 2023/24 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.
9.
Environmental regulation and compliance
To meet industry and regulatory standards at our facilities, CSL
uses an Environment, 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 and minimising the
negative effects of operations on the environment.
In 2023/24, CSL improved global alignment across several
key EHS programs. This included updating CSL’s Global
Environment, Health, Safety and Sustainability (EHSS) Policy
and communicating it to all CSL employees, 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 the 2024/25
financial year.
CSL continues to mature our overall environmental
sustainability program, embedding 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.
There were no significant environmental breaches at CSL
operations during the reporting period. A significant
environmental breach is defined as a non-compliance with
environmental legislation in the jurisdiction in which the
event occurs, that has an impact rating of major or critical for
environmental or regulatory dimensions as per CSL’s Enterprise
Risk Management Framework.
CSL has met its reporting obligations under the Australian
Government’s National Greenhouse and Energy Reporting
Act 2007 and Victorian Government’s National Pollutant
Inventory requirements in the Environment Protection
Regulations 2021 (Vic).
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 13 and 14 (page 101) for executive key
management personnel (KMP) and Tables 15 and 16 (pages
102 and 103) 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 2024, the number of unissued ordinary shares in
CSL under options and under performance rights are set out
in Note 5 (People Costs) and Note 16 (Detailed Information –
People Costs) 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 2023/24 financial year and the exercise price paid
to acquire fully paid ordinary shares in CSL is set out in Note 5
(People Costs) of the Financial Statements. Since the end
of the 2023/24 financial year, no shares were issued under
CSL’s Performance Rights Plan. Since the end of the 2023/24
financial year, there has been no change to the information
contained in Note 16 (Detailed Information – People Costs)
to the Financial Statements.
Since the end of the 2023/24 financial year, 7,593 Restricted
Share Units and 2,815 Performance Share Units have been
forfeited due to participant ceasing employment.
Since the end of the 2023/24 financial year, there has been
no change to the information contained in Note 16 (Detailed
Information – People Costs) to the Financial Statements.
Directors’ Report
70
Limited Annual Report 2023/24
12. Indemnities and insurance
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;
2. that CSL will purchase and maintain an insurance policy that
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 2023/24 financial year
under these indemnities.
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 US. Under this indemnity, CSL Behring agrees to
indemnify the CEO for the net difference between US and
foreign tax liabilities after taking into account any credits
available to the CEO in the US. In the period 1 July 2023 to the
date of this report, no payment has been made under these
indemnities.
To the extent permitted by law, CSL has agreed to indemnify
its auditors, Deloitte, as part of the terms of its audit
engagement against claims by third parties arising from the
audit (for an unspecified amount). No payment has been
made to indemnify Deloitte during the 2023/24 financial year.
No insurance premiums were paid for Deloitte during the
2023/24 financial year.
13. Auditor independence and
non-audit services
In line with an observed trend in many jurisdictions towards a
tenure limit for audit firms, and after completing a competitive
external audit tender process and receiving regulatory and
shareholder approval, on October 11, 2023, the Group appointed
Deloitte Touche Tohmatsu (“Deloitte”) as its new independent
auditor commencing for this fiscal year ended June 30, 2024,
following the resignation of Ernst & Young.
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,
Deloitte, for non-audit services provided during the 2023/24
financial 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 requirements as set out
in Code of Conduct APES 110 Code of Ethics for Professional
Accountants issued by the Accounting Professional &
Ethical Standards Board, as they did not involve reviewing
or auditing the auditor’s own work, acting in a management
or decision making capacity for CSL, acting as an advocate
for CSL or jointly sharing risks or rewards.
A copy of the auditor’s independence declaration as required
under section 307C of the Corporations Act 2001 (Cth)
accompanies and forms part of this Directors’ Report (page 72).
Deloitte and its related practices received or are due to receive
amounts for the provision of non-audit services to CSL and its
subsidiaries in respect to the year ended 30 June 2024.
Note 18 (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 2023/24 financial year.
14. Rounding
The amounts contained in this Directors’ 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 CSL under ASIC
Corporations Instrument 2016/191 (the Instrument). CSL is
an entity to which the Instrument applies.
71
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
Deloitte Touche Tohmatsu
ABN 74 490 121 060
477 Collins Street
Melbourne, VIC, 3000
Australia
Phone: +61 3 9671 7000
www.deloitte.com.au
Dear Board Members
Auditor’s Independence Declaration to CSL Limited
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of
independence to the directors of CSL Limited.
As lead audit partner for the audit of the financial statements of CSL Limited for the financial year ended 30 June
2024, I declare that to the best of my knowledge and belief, there have been no contraventions of:
(i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii) any applicable code of professional conduct in relation to the audit.
Yours sincerely
DELOITTE TOUCHE TOHMATSU
A V Griffiths
Partner
Chartered Accountants
12 August 2024
The Board of Directors
CSL Limited
655 Elizabeth Street
Melbourne, VIC, 3000
Auditor’s independence declaration
72
Limited Annual Report 2023/24
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
Deloitte Touche Tohmatsu
A.B.N. 74 490 121 060
477 Collins Street
Melbourne VIC 3000
Tel: +61 3 9671 7000
www.deloitte.com.au
Independent Limited Assurance Report to the Directors of
CSL Limited
Conclusion
We have undertaken a limited assurance engagement on CSL Limited’s Material Topics and Selected
Sustainability Metrics and Disclosures (collectively referred to as the “Subject Matter Information”) included in
the CSL Limited Annual Report for the year ended 30 June 2024 ("CSL 2024 Annual Report").
Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes
us to believe that, in all material respects:
•
The Material Topics identified by the Directors, disclosed on pages 10 and 11 of the CSL 2024 Annual
Report1, have not been determined in accordance with the Global Reporting Initiative (“GRI”) Standard
GRI 3 Material Topics 2021, for the year ended 30 June 2024; and
•
The Selected Sustainability Metrics and Disclosures presented in Table 1 below, included in the CSL 2024
Annual Report, have not been prepared in accordance with the Criteria defined below.
Table 1 – Selected Disclosures - Subject Matter Information
Topic
Selected Sustainability Metrics and Disclosures
Page reference
Product safety and quality
Regulatory audits, Plasma
43, 157
Good Manufacturing Practice (GMP) manufacturing
regulatory audits
43, 157
Critical findings in Plasma and Manufacturing regulatory
inspections that prevent release of commercial product
43
Safety related product recalls
43, 157
Talent recruitment,
development and retention
Employee Opinion Survey Results:
•
Employee Engagement Index; and
•
% that feel good about the ways CSL contributes
to the community
40, 157
40, 157
Accessible & affordable
healthcare
Humanitarian aid/product assistance
44, 157
Energy & emissions2
Scope 1 and 2 emissions
51, 158
Energy consumed
51, 158
Environment management2
Water consumption (GL)
54, 158
1 Information about the process undertaken to identify the Material Topics as referenced on page 10 and 11 of the CSL 2024 Annual Report
and disclosed on the CSL website forms part of this Report. Refer to https://www.csl.com/-/media/shared/documents/csl-sustainability-
material-topics-2024-assurance.png.
2 Scope 1 and 2 emissions, Energy consumed, and Water consumption metrics cover the period from 1 April 2023 to 31 March 2024.
Independent Limited Assurance Report
73
Independent Limited Assurance Report
Table 1 – Selected Disclosures - Subject Matter Information (cont.)
Topic
Selected Sustainability Metrics and Disclosures
Page reference
Health, safety and wellbeing
Total Recordable Incident Frequency Rate (TRIFR), non-
plasma
41, 157
Total Recordable Incident Frequency Rate (TRIFR),
plasma
41, 157
Fatalities
41, 157
Communities we operate in
Economic value generated
157
Economic value distributed
43, 157
Donors
% of plasma donors willing to donate again
48, 157
% of plasma donors willing to refer a friend
48
Self-reported occupational status
48
Diversity, equity and inclusion
Workforce total
157
Generational diversity profile for:
•
All employees
•
Senior executives
•
People managers
35
35
35
Female and male breakdown across the following
employee categories:
•
All employees
•
Board members
•
Senior executives
•
People managers
35, 157
35, 157
35, 157
35, 157
CSL has applied the following Criteria in preparing the Subject Matter Information:
•
In determining the Material Topics, CSL applied GRI 3 Material Topics 2021
•
In preparing Selected Disclosures – Energy & Emissions, CSL applied its own custom criteria, as defined
throughout the CSL 2024 Annual Report, informed by the Greenhouse Gas (“GHG”) Protocol and National
Greenhouse and Energy Reporting Regulations 2008 (“NGER Regulations”)
•
In preparing all other Selected Disclosures, CSL applied its own custom criteria, as defined throughout the
CSL 2024 Annual Report.
Basis for Conclusion
We conducted our limited assurance engagement in accordance with Australian Standard on Assurance
Engagements ASAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial
Information (“ASAE 3000”), issued by the Australian Auditing and Assurance Standards Board.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.
74
Limited Annual Report 2023/24
Responsibilities of CSL Limited
The Directors of CSL Limited are responsible for:
•
Ensuring that the Subject Matter Information is prepared in accordance with the Criteria;
•
Confirming the measurement or evaluation of the underlying subject matter against the applicable criteria,
including that all relevant matters are reflected in the Subject Matter Information;
•
Designing, establishing and maintaining an effective system of internal control over its operations and
financial reporting, including, without limitation, systems designed to ensure achievement of its control
objectives and its compliance with applicable laws and regulations;
•
Selecting the Criteria and ensuring that the Criteria is appropriately described and/or referred to in the CSL
2024 Annual Report; and
•
The electronic presentation of the Subject Matter Information and our limited assurance report on CSL
Limited’s website.
Our Independence and Quality Management
We have complied with the independence and other relevant ethical requirements relating to assurance
engagements, and applied 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 in undertaking this assurance engagement.
Assurance Practitioner’s Responsibilities
Our responsibility is to express a limited assurance conclusion on CSL Limited’s Subject Matter Information as
evaluated against the Criteria based on the procedures we have performed and the evidence we have obtained.
ASAE 3000 requires that we plan and perform our procedures to obtain limited assurance about whether
anything has come to our attention that causes us to believe that the Subject Matter Information is not properly
prepared, in all material respects, in accordance with the Criteria.
A limited assurance engagement in accordance with ASAE 3000 involves identifying areas where a material
misstatement of the Subject Matter Information is likely to arise, addressing the areas identified and
considering the process used to prepare the Subject Matter Information. A limited assurance engagement is
substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment
procedures, including an understanding of internal control, and the procedures performed in response to the
assessed risks.
The procedures performed in a limited assurance 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 limited
assurance engagement is substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed. Accordingly, we do not express a reasonable assurance
opinion about whether the Subject Matter Information has been properly prepared or determined, in all
material respects, in accordance with the Criteria.
Our procedures included:
•
Inquiries with relevant key personnel to obtain an understanding of the process for collating and preparing
the respective Subject Matter Information;
•
Undertaking walkthroughs of key systems and processes for collating, calculating and reporting the Subject
Matter Information;
•
Inspection of the supporting process documentation developed to support the collation, calculation and
reporting process of the Subject Matter Information and investigating further where required;
•
Performing analytical review procedures on the Subject Matter Information and/or relevant supporting
documentation;
•
Selection on a sample basis items to test the Subject Matter Information and agree to relevant supporting
documentation;
75
Independent Limited Assurance Report
•
Review of the Selected Sustainability Metrics and Disclosures in the CSL 2024 Annual Report and
reconciliation to underlying workings and information; and
•
Review of CSL Limited’s process for determining Material Topics in accordance with GRI 3 Material Topics
2021. This includes assessing the process used by Directors to identify a prioritised list of material topics
through an evaluation of existing and emerging industry issues and trends, global mega-trends, risks,
opportunities, stakeholder engagement, actual and potential impacts; and CSL’s management approach and
definitions.
Inherent Limitations
Because of the inherent limitations of an assurance engagement, together with the inherent limitations of any
system of internal control there is an unavoidable risk that it is possible that fraud, error, or non-compliance
with laws and regulations, where there has been concealment through collusion, forgery and other illegal acts
may occur and not be detected, even though the engagement is properly planned and performed in accordance
with Standards on Assurance Engagements.
Emissions quantification is subject to inherent uncertainty because incomplete scientific knowledge has been
used to determine emissions factors and the values needed to combine emissions due to different gases.
Additionally, non-financial data may be subject to more inherent limitations than financial data, given both its
nature and the methods used for determining, calculating and sampling or estimating such data.
Restricted use
The applicable criteria used for this engagement was designed for a specific purpose of assisting the Directors to
report on the selected sustainability metrics and disclosures in the CSL 2024 Annual Report only, as a result, the
Subject Matter Information may not be suitable for another purpose.
This report has been prepared for use by the Directors of CSL Limited for the purpose of providing assurance
over the Material Topics disclosed on CSL Limited’s website and Selected Sustainability Metrics and Disclosures
presented in the CSL 2024 Annual Report. We disclaim any assumption of responsibility for any reliance on this
report to any person other than the directors of CSL Limited or for any purpose other than that for which it was
prepared.
Our assurance engagement included review of web-based information that was available via web links as of the
date of this assurance report. We provide no assurance over changes to the content of this web-based
information after the date of this assurance report.
DELOITTE TOUCHE TOHMATSU
Wibishana Rockwood
Partner
Chartered Accountant
Melbourne, VIC
12 August 2024
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Limited Annual Report 2023/24
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 2024 (2024). This Report contains detailed
information regarding the remuneration of CSL’s Key
Management Personnel (KMP) for 2024 as well as changes
to our Executive Remuneration Framework.
Bringing people and science together
Throughout the Annual Report you can read about our
operational and financial highlights for the year. These
accomplishments are testament to the dedication of our
colleagues around the world. It is a great privilege to serve
a company full of people who spend each day making a
meaningful difference to society.
In essence, companies like CSL bring people and science
together to solve complex challenges. The investment
required in terms of time and capital is significant. It also
requires passion, motivation and deep technical expertise
from our people.
This section of the Directors’ Report is focused on the people
side of this equation. It is vital that we attract and retain the
right talent to CSL if it is to continue its track record of growth
in the future.
Updating our framework
Each year we engage with numerous stakeholders on our
Executive Remuneration Framework. It is then subject to a
vote at our Annual General Meeting (AGM).
The Remuneration Report received the required support at
last year’s AGM, however your Board noted that an increased
number of shareholders voted against it, relative to previous
years. While investor feedback is always a priority for us, this
year we have increased our level of engagement. Accordingly,
we have made changes to the Executive Remuneration
Framework in 2024 and I cover these further below.
KMP changes in 2024
In January 2024, we welcomed Ms Samantha Lewis to the
Board as a Non-Executive Director (NED). We farewelled
Mr Bruce Brook in October 2023 following four terms
as a NED. As disclosed in the 2023 Remuneration
Report, Mr Andrew Schmeltz, EVP CSL Behring,
become Executive KMP on 1 September 2024.
Outcomes 2024
The outcomes for 2024 are as follows:
2024 CEO Remuneration Outcomes
At 1 September 2023, Dr Paul McKenzie, CSL’s Chief Executive
Officer and Managing Director (CEO), received a 3.5% increase
to his salary, no change to his short-term incentive (STI) target
opportunity of 120% and maximum opportunity of 240% of
salary, and no change to his long-term incentive (LTI) target
opportunity of 425% of salary.
Fixed Reward inclusive of salary, superannuation and
non-monetary benefits was US$1,958,635. A STI outcome of
US$2,325,645 (54% of maximum opportunity) was awarded,
with the Board noting the focus by Dr McKenzie on improving
the fundamentals of the plasma business, advancing our future
pipeline, building a high performance team, integration of CSL
Vifor and the focus on cost and capital discipline.
Partial vesting of his LTI tested at 30 June 2024 will occur in
September 2024, and has a face value of US$1,602,960 based
on the 30 June 2024 CSL share price.
For transparency, the 2024 “realised” or “take home pay”
for Dr McKenzie was US$5,887,240. As discussed in section 5,
this outcome reflects the performance of CSL and Dr McKenzie
over the period earned. More detail on realised remuneration
is included in section 2.2 of the Report.
Board Adjustments Applied to LTI
As disclosed in the 2023 Report, the Board determined at
the time of the Vifor Pharma acquisition that performance
targets for on-foot LTI awards would not be recalculated for
the acquisition however, the Board would consider CSL Vifor’s
performance when determining LTI vesting outcomes.
Accordingly, the Board has assessed CSL Vifor’s performance
since the acquisition against a range of factors, including overall
contribution to CSL financial outcomes, performance against
the acquisition model, and shareholder experience. It has been
determined that for five current and former executives, a 20%
reduction will be applied to LTI awards vesting in September
2024. This has been done to align executive outcomes with
the shareholder experience. An estimated vesting outcome
value is included in section 2.2 and more detail on the awards
is included in section 5.2.
The Board and management team continue to have
confidence in CSL Vifor. The business has experienced several
near term challenges. As the Board Chair has mentioned,
we were prepared for some of these but others were
unexpected. This is disappointing, but the Board is confident
that CSL has the right plans in place to deliver growth from
CSL Vifor over the long-term.
Remuneration Framework Changes
This year we have enhanced transparency over the threshold,
target and maximum financial STI hurdles in this Report,
along with enhanced disclosures regarding individual KPIs and
outcomes for Executive KMP.
Our Return on Invested Capital (ROIC) and Earnings per
Share growth (EPSg) LTI measures remained the same.
ROIC is a measure of capital allocation and therefore a key
indicator of the management team’s ability to create value
for the business. For awards granted from 1 September 2023,
the ROIC performance period changed from seven years
(four-year look back/three-year forward look) to a three-year
forward looking performance period in response to investor
feedback. The ROIC gateway performance measure, which
was previously introduced to address concerns about the
impact of the four-year look back, does not apply to the new
three-year forward-looking measure.
The approach for LTI target setting was reviewed to generate
targets that continue to be stretching and aligned with CSL’s
longer-term performance trajectory.
Directors’ Report
Remuneration Report
77
Directors’ Report
Changes in 2025
The environmental (E) ambitions and targets in CSL’s
sustainability program have matured over the past two
years. In 2025, our ambitions and focus areas in the Social
(S) and Workforce (W) pillars have been extended, reflecting
the strategic importance to our business. Accordingly, the
sustainability objective in CSL’s STI will be expanded to cover
‘S’ and ‘W’ measures, in addition to those covering the ‘E’. The
number of measures will also be reduced to incentivise our
executives to focus on a smaller number of key targets that will
have a meaningful impact on our sustainability strategy. The
overall weighting will remain 5% of an Executive KMPs STI KPIs.
We retain our LTI measures of ROIC and EPSg, reflecting
our focus on growth. As mentioned, CSL moved from a
seven‑year performance period to a single three-year forward
look. While this was well received by investors, some did
flag concern, wanting to see a longer performance period.
To address this, for awards granted from 1 September 2024,
a one year holding lock period will be applied following vesting
of Performance Share Unit awards for all Global Leadership
Group members. The holding lock will ensure the executive’s
reward continues to be exposed to the CSL share price and
aligned with our shareholders’ experience.
Remuneration in 2025
Executive KMP
For 2025, the Board has determined to make increases
to Fixed Reward only, recognising that each Executive
KMP remains below the median of the global
pharmaceutical/biotechnology peer group for total target
direct compensation (TDC).
Dr McKenzie will receive a 3.5% increase to Fixed Reward
and no change to his STI or LTI percentage opportunity.
This increase positions Dr McKenzie’s TDC at 71% of the median
of our global pharmaceutical/biotechnology peer group.
Ms Joy Linton, our Chief Financial Officer, will receive an increase
to Fixed Reward of 3.97%, inclusive of the superannuation
guarantee increase applied at 1 July 2024. Ms Linton will have no
change to her STI and LTI percentage opportunity. Ms Linton’s
TDC position against the global pharmaceutical/biotechnology
peer group will be 66% of the median.
Mr Andrew Schmeltz, our Executive Vice President
CSL Behring, will receive an increase to Fixed Reward
of 4.5% and no change to his STI and LTI percentage
opportunity. Mr Schmeltz’s TDC position against the
global pharmaceutical/biotechnology peer group will
be 92% of the median.
NEDs
Following benchmarking against ASX12 NED remuneration,
there will be an increase in fees of 3% for all Board and
Committee roles, effective 1 July 2024.
Remuneration Framework Outlook
The Board will continue to review our remuneration framework
to ensure that in competing in a global market, we can
attract and retain the highest quality talent to deliver on our
strategy. The Board will continue to evaluate our remuneration
framework to ensure it remains competitive with our global
pharmaceutical and biotechnology peers. A key focus will
be our LTI program. As we talk with shareholders over the
coming months, we will share our thinking and seek feedback.
Thank you to my fellow Human Resources and Remuneration
Committee 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
Sustainability
Achievement of all
environmental STI
milestones
ROIC
Annual ROIC of
10.5%
NPATA
US$2,907m
15% on prior year
at constant currency
NPAT
US$2,642m
25% on prior year
at constant currency
CFO
US$2,764m
6% on prior year
EPS
US$5.47
20%
2024 Financial Highlights
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Limited Annual Report 2023/24
1.
NPATA represents the statutory net profit after tax before impairment and amortisation of acquired IP, business acquisition and integration
costs and the unwind of the inventory fair value uplift associated with the acquisition of Vifor Pharma.
Independent Audit of the Report
The Remuneration Report for the year ended 30 June 2024
(Report) has been audited by Deloitte Touche Tohmatsu
(Deloitte). Please see page 153 of the Financial Statements for
Deloitte’s report.
1.
2024 CSL KMP
This Report sets out remuneration information for CSL’s
KMP which includes NEDs, the Executive Director (i.e., the
CEO) and the key senior executives who had 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). CSL’s KMP during the
financial year ended 30 June 2024 (2024) and changes to KMP
are outlined in Table 1.
On 30 June 2023, Mr Andrew Schmeltz joined CSL in the newly
created position of EVP CSL Behring. Mr Schmeltz became
KMP effective 1 September 2023, when he fully transitioned
into his role and responsibilities.
Mr Bruce Brook retired from the Board on 11 October 2023, after
serving four terms as a NED.
Ms Samantha Lewis joined the CSL Board of Directors on 1
January 2024.
Table 1: CSL KMP in 2024
Name
Position
Term as KMP
NEDs
Dr Brian
McNamee AO
Chair and Independent
Non-Executive Director
Full year
Dr Megan
Clark AC
Independent
Non‑Executive Director
Full year
Professor Andrew
Cuthbertson AO
Non-Independent
Non‑Executive Director
Full year
Ms Carolyn
Hewson AO
Independent
Non-Executive Director
Full year
Ms
Samantha Lewis
Independent
Non-Executive Director
Part year – from
1 January 2024
Professor
Duncan Maskell
Independent
Non-Executive Director
Full year
Ms Marie
McDonald
Independent
Non-Executive Director
Full year
Ms Alison
Watkins AM
Independent
Non-Executive Director
Full year
Former NEDs
Mr Bruce Brook
Independent
Non-Executive Director
Part year – until
11 October 2023
Executive KMP
Dr Paul McKenzie
Executive Director
and CEO
Full year
Ms Joy Linton
Chief Financial Officer
Full year
Mr Andrew
Schmeltz
EVP CSL Behring
Part year – from
1 September
2023
Contents
1. 2024 CSL KMP
2. 2024 Executive KMP Remuneration at a Glance
3. 2024 Global Remuneration Framework
4. Five Year CSL Financial Performance and Executive KMP
Reward Outcomes
5. Executive KMP Outcomes in 2024
6. Remuneration in 2025
7. Remuneration Governance
8. NED Remuneration
9. KMP Statutory Tables
10. Additional Employee Equity Programs and
Legacy Plan Information
Abbreviations
AGM
Annual General Meeting
ARMC
Audit and Risk Management Committee
CEO
Chief Executive Officer and Managing Director
CFO
Cashflow from Operations
EPS
Earnings per Share
EPSg
Earnings per Share growth
EVP
Executive Vice President
FR
Fixed Reward
HRRC
Human Resources and Remuneration
Committee
KMP
Key Management Personnel
KPI
Key Performance Indicator
LTI
Long Term Incentive
NED
Non-Executive Director
NPATA
Net Profit after Tax and before Amortisation1
PSU
Performance Share Unit
ROIC
Return on Invested Capital
RSU
Restricted Share Unit
STI
Short Term Incentive
TDC
Total Target Direct Compensation
US
United States of America
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Directors’ Report
2.
2024 Executive KMP Remuneration at a Glance
2.1
2024 Target Remuneration
The following table sets out target remuneration for Executive KMP for 2024, and any changes from the prior year, which were
disclosed in the 2023 Remuneration Report.
P McKenzie
J Linton
A Schmeltz2
FR3
US$1,811,250
(3.5% increase)
US$914,404
(3.95% increase)
US$805,000
STI4
120% of FR
(no change)
100% of FR
(no change)
100% of FR
LTI5
425% of FR
(no change)
225% of FR
(no change)
300% of FR
TDC
US$11,682,563
US$3,886,219
US$4,025,000
2.2
2024 Executive KMP Realised Remuneration
The charts below disclose the ‘realised’ remuneration for Executive KMP for 2024 in US Dollars (US$) presenting a simple and
transparent view of what the Executive KMP’s actual take-home pay was for 2024 based on both individual and CSL performance
to 30 June 2024. While vesting does not occur until 1 September 2024, the LTI awards tested at 30 June 2024 have been included,
along with commencement benefit awards for Ms Joy Linton and Mr Andrew Schmeltz that vested during the year. This is a
voluntary disclosure and is presented on a non-IFRS basis. See section 9 Table 9 for the Statutory Remuneration disclosure that has
been prepared in accordance with the Australian accounting standards.
2024 realised
remuneration
P McKenzie
CEO
Term as KMP: Full year
US$746,063
US$2,605,146
2024 realised
remuneration
J Linton
Chief Financial Officer
Term as KMP: Full year
US$1,038,592
US$695,380
US$978,413
US$2,682,354
2024 realised
remuneration
A Schmeltz6 EVP CSL Behring
Term as KMP: Part year
FR7
STI Cash8
Equity Vested9
US$1,163,703
US$1,958,635
US$2,325,645
US$5,887,240
US$1,602,960
US$665,349
2. A Schmeltz commenced employment on 30 June 2023 and was appointed as Executive KMP 1 September 2023, therefore no prior year
comparison is provided.
3. Salary, and for J Linton also includes superannuation. Effective 1 September 2023.
4. Target add for 2024 with payment based on performance in September 2024.
5. Granted 2024 with a performance period of 1 July 2023 to 30 June 2026. Vesting will occur in September 2026.
6. The ‘realised’ remuneration for A Schmeltz is for the period 1 September 2023 to 30 June 2024 being the period A Schmeltz was Executive KMP.
7. FR includes base salary, retirement/superannuation benefits, and other benefits such as insurances, relocation and allowances paid in 2024.
8. STI relates to STI earned in 2024 and will be paid in September 2024 (refer to section 5.1).
9. Equity Vested refers to value of LTI vested at 1 March 2024 that became unrestricted and the value of LTI awards tested at 30 June 2024 and that
are expected to vest on 1 September 2024 (refer to section 5.2). Awards were granted over the period 1 September 2019 to 1 September 2023. The
value at vesting has been determined by multiplying the number of vested units by the closing share price on the date of vesting or in the case
of the awards to vest on 1 September 2024, the closing share price at 30 June 2024. This has been converted to US$ at an average exchange rate
for the 2024 financial year of 1.52397. The award vesting 1 March 2024 for J Linton was a commencement benefit earned in 2021 given Ms Linton
commenced employment with CSL in 2021. The award vesting 1 March 2024 for A Schmeltz was a commencement benefit granted and earned
in 2024 on Mr Schmeltz’s commencement of employment with CSL.
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Limited Annual Report 2023/24
2.3
CSL’s response to shareholder feedback
The Board values and acknowledges the feedback it received from CSL’s shareholders and external stakeholders in 2023.
In response to this feedback, the Board and management team conducted a review of CSL’s executive remuneration framework
and decision-making processes.
Overall, the Board continues to believe that CSL’s executive remuneration framework supports CSL’s strategy, builds economic
alignment between executives and shareholders over the long term and enables the attraction and retention of global talent.
That said, the following actions have been taken to address the concerns raised.
Concerns raised
Our response
STI
Disclosure of STI
performance targets
and individual KPIs
– To enhance transparency, the threshold, target and maximum financial STI performance hurdles for
2024 have been disclosed. Refer to section 5.1 for further details
– Disclosures regarding individual KPIs and outcomes for executive KMP have been enhanced. Refer to
section 5.1 for further details
Use of NPATA as a
financial STI KPI
– Introduced in 2023, NPATA is used as one of the financial measures in STI. The Board believes NPATA
provides shareholders with transparency on the underlying performance of the business and aligns
with CSL’s financial guidance approach, thereby holding executives accountable for driving the
growth of CSL
LTI
Level of ‘stretch’
in ROIC hurdles set
– The approach for LTI target setting was reviewed to generate targets that continue to be stretching
and aligned with CSL’s longer-term performance trajectory
– Further details regarding CSL’s approach to target setting and the factors considered by the
Board when setting targets are set out section 3.5
– The ROIC and EPS targets for the FY25 LTI award will be disclosed in the 2024 Notice of
Annual General Meeting of Shareholders
Length of the
performance period
– To remain competitive with the approach taken by our global pharmaceutical/biotechnology
industry peers, the performance period of LTI awards will remain at three years
– A one year holding lock period will be introduced, resulting in a four year LTI construct
– During the holding lock period, Executive KMP reward will continue to be aligned to the share price
Consideration of CSL
Vifor performance
in the assessment of
LTI grants made prior
to acquisition
– The Board and Management team continue to have confidence in CSL Vifor and, whilst near term
growth prospects are more subdued than originally envisaged, CSL has the right plans in place to
deliver growth from CSL Vifor over the long term
– As disclosed in the 2023 Remuneration Report, the Board determined at the time of the Vifor
Pharma acquisition that performance targets for on-foot LTI awards would not be adjusted for the
acquisition however, the Board would consider CSL Vifor’s performance when determining LTI
vesting outcomes
– As a result, the Board has carefully considered CSL Vifor’s performance since the acquisition against
a range of factors, including overall contribution to CSL financial outcomes, performance against
the acquisition model and shareholder experience. The Board has determined that for five current
and former executives, a 20% reduction will be applied to LTI awards vesting in September 2024.
This has been done to align executive outcomes with shareholder outcomes and hold executives
accountable for decisions made. Refer to section 5.2 for further details
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Directors’ Report
3.
2024 Global Remuneration Framework
3.1
Alignment of Executive reward to CSL’s purpose and strategy
To deliver on its promise to patients, CSL relies on its people and maintaining a strong supply of global talent. CSL’s Total Rewards
Principles are aligned to its purpose and business strategy and enable CSL 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.
CSL’s 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 CSL in creating sustainable value for stakeholders
This purpose is underpinned by the 2030 Strategy providing the framework to innovate for the future,
advance CSL’s sustainable growth, continue saving people’s lives and protecting public health across the globe
and ensuring a positive employee experience. The strategy enables a scalable enterprise, fuelled by innovative
technologies and a globally connected and engaged workforce
CSL’s global Total Rewards Principles are aligned with our purpose and business strategy
CSL’s global executive remuneration framework elements
Efficiency and
Reliable Supply
Focus
Innovation
Sustainable
Growth
Digital
Transformation
Internal equity,
inclusive
culture
Common global structure
aligning employee and
shareholder interests, and
considers community
expectations
Pay for
performance
while living our
CSL Values
Holistic
approach to
well-being
Effort
matters
Simplicity
and clarity
Element
FR
STI
LTI
Purpose
Attract, retain and engage key
talent to deliver CSL’s strategy
Reward performance against
company and individual KPIs
on an annual basis
Promote the longer term
performance and strategy
of CSL
Delivery
Cash salary and
superannuation/pension paid
throughout the year
Cash paid annually
PSUs with a three year
performance period
Approach
Determined based on role scope,
complexity and responsibilities,
with consideration of individual
experience, performance as well
as internal and external factors
Outcomes based on business
and individual performance KPIs
with a maximum opportunity
capped at 200% of an Executive
KMP’s target STI
Three year PSUs granted
annually with vesting based on
performance against ROIC (70%)
and EPS Growth (30%) targets
Leading &
Managing
Modifier
The Board has the discretion to apply a ‘Leading and Managing’ modifier (upwards and downwards)
to STI and LTI outcomes, formally recognising the importance of CSL’s culture, including leadership
behaviours, values, diversity objectives and individual management of risk. The modifier can be an
increase of up to 20% and a decrease of up to 50%
Risk
Management
Before determining remuneration outcomes and vesting, the Board assesses alignment with risk
management outcomes to hold executives accountable for effective management of both financial
and non-financial risk. Outcomes and vesting may be adjusted upwards and downwards
Benefits
CSL provides market competitive benefits to attract and retain 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
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Limited Annual Report 2023/24
Remuneration delivery timeline
FR
FY24
FY25
FY26
FY27
STI
LTI
Eligible for payment or vesting
Award Tested
Award Granted
Performance Period
Performance Period
3.2
Executive KMP Pay Mix
The following diagrams set out the remuneration mix for Executive KMP at maximum opportunity.
The majority of reward is variable (STI and LTI) and at risk. This creates strong alignment between Executive KMP reward and
shareholder outcomes and is aligned to CSL’s pay for performance philosophy and focus on driving growth and long term
sustainable performance.
Fixed Reward
13%
STI
31%
LTI
56%
Fixed Reward
19%
STI
38%
LTI
43%
Fixed Reward
17%
STI
33%
LTI
50%
P McKenzie
J Linton
A Schmeltz
3.3
Fixed Remuneration
FR for CSL’s Executive KMP is designed to attract and retain talent for the delivery of CSL’s strategy. CSL targets the market median
when setting FR, with consideration of individual experience, performance and internal and external relativity.
CSL competes for talent in a global market, and needs 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.
CSL’s global pharmaceutical/biotechnology industry peer group serves as the primary reference group for remuneration
benchmarking, created such that with respect to market capitalisation and revenue, CSL falls around the middle of the group.
The group represents global industry peers and is updated annually.
The peer group for 2024 included:
AbbVie Inc
Bristol-Myers Squibb Company
Moderna Inc
Amgen Inc
Eli Lilly and Company
Novartis AG
Astra Zeneca PLC
GlaxoSmithKline plc
Novo Nordisk A/S
Bausch Health Companies Inc
Gilead Sciences Inc
Regeneron Pharmaceuticals, Inc
Bayer AG
Grifols, S.A.
Takeda Pharmaceutical Company
Biogen Inc
Merck KGaA
Vertex Pharmaceuticals Inc
In addition, general industry groups for Australia, Europe and North America are used to help the company appropriately reward
senior talent and are used as a primary, or hybrid, data set for certain Executive KMP roles.
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Directors’ Report
3.4
Short Term Incentive
The STI program is designed to drive business performance and create sustainable shareholder value. The key features of the STI
program for 2024 are detailed below.
Feature
Description
Performance
Period
Annual award aligned with the financial year – 1 July 2023 to 30 June 2024
Delivery
Cash – paid in September 2024
Performance
Measures
– Each Executive KMP has a maximum of seven KPIs. The KPIs are made up of two financial measures,
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 so that 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. The financial
performance measures are
NPATA measured at constant
currency, and CFO measured
at reported rates
Ensuring a global shared focus on
our long-term sustainability and
global footprint consistent with
our CSL purpose and values
Individual KPIs aligned with our
strategic priorities, encourage
appropriate decision making, and
balance performance in financial
and non-financial priorities
Further detail on the STI performance measures and outcomes for 2024 is provided in section 5.1
Performance
Measure
Weightings
P McKenzie
J Linton
A Schmeltz
Financial
NPATA
35%
30%
25%
CFO
25%
30%
25%
Sustainability
5%
5%
5%
Individual
35%
35%
45%
Vesting
– 50% of STI earned at 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%)
– Individual STI outcomes are determined by multiplying the weighted outcome for each KPI by the
individual’s target STI opportunity (as disclosed in section 2.1)
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Limited Annual Report 2023/24
3.5
Long Term Incentive
CSL’s LTI design is intended to focus on the sustainable long-term growth of the organisation, delivering returns to CSL
shareholders and aligning executives’ equity interests with those of shareholders. The key features of CSL’s LTI program for 2024
awards, granted 1 September 2023, are as follows.
Feature
Description
Performance
Period
Three years from 1 July 2023 to 30 June 2026
Delivery
PSU, being a conditional ‘right’ to a CSL share. No price is payable by the Executive KMP on grant or vesting
of rights. Shares are allocated on vesting without the need for exercise by an Executive KMP
Performance
Measures and
Weightings
– Three-year average ROIC (70%)
– Three-year EPS growth (30%)
These performance measures and the targets below, are chosen as the Board believes these two financial
metrics drive the success of the organisation and drive shareholder value given the capital intensive nature of
CSL’s businesses
Calculation
– ROIC: Reported EBIT × (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
– EPS: CSL reported net profit after tax in USD/Weighted average number of shares on issue
Approach to
Performance
Target Setting
When determining performance targets the Board considers a range of factors including:
– CSL’s strategy;
– Budget and forecast financial performance;
– Historical financial performance; and
– External factors including market guidance, analysts’ consensus and any other relevant market disclosures.
Performance
Targets and
Vesting Schedule
ROIC
CSL’s ROIC Performance
Vesting Outcome
Below 10.2%
0%
Equal to 10.2%
50%
Greater than 10.2% and up to 12.8%
Straight-line vesting between 50% and 100%
At or above 12.8%
100%
EPS growth
CSL’s EPS Performance
Vesting Outcome
Below 15.6%
0%
Equal to 15.6%
50%
Greater than 15.6% and up to 17.3%
Straight-line vesting between 50% and 100%
At or above 17.3%
100%
Vesting Date
1 September 2026
Grant
Methodology
– To determine the number of PSUs issued, a five day volume weighted average share price preceding the
grant date is used (allocation price10)
– The LTI opportunity for each Executive KMP is divided by the allocation price to determine the number
of securities granted
Retesting
No retest
Dividends and
Voting Rights
– No dividends or dividend equivalent payments 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
10. For Dr McKenzie the allocation price was the price determined for the grant made on 1 September 2023, not at the date of Dr McKenzie’s grant
following the 2023 AGM.
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Directors’ Report
4.
Five Year CSL Financial Performance and Executive KMP Reward Outcomes
The table below summarises CSL’s key financial performance indicators over the past five financial years and Executive KMP
reward outcomes over the period.
In addition to shareholder wealth measures, the measures used in CSL’s remuneration framework are also included.
Table 2: CSL Financial Performance and Executive KMP Reward Outcomes
2020
2021
2022
2023
2024
Total Shareholder Return (12 month %) – AUD
34.9%
0.4%
-4.6%
4.4%
7.8%
Closing Share Price (dollars) – AUD11
287.00
285.19
269.06
277.38
295.21
Total Dividends paid per Share (cents) – USD
195
211
222
225
248
EPS (cents) – USD
563.3
522.0
481.0
455.0
547.0
Annual ROIC
21.6%
21.2%
18.2%
12.2%
10.5%
Cash Inflow From Operating Activities – USD
2,488
3,622
2,629
2,601
2,764
NPATA12 (millions) – USD
2,381
2,610
2,907
Net Profit After Tax13 (millions) – USD
2,103
2,375
2,255
2,194
2,642
Average Executive KMP STI Outcome as % of Maximum
82%
68%
69%
51%
53%
Average LTI % Vesting Outcome
80%
95%
89%
68%
40%
5.
Executive KMP Outcomes in 2024
5.1
STI Outcomes in 2024
In 2024, CSL has delivered strong results maintaining focus on its strategic objectives. Financial performance on the STI measure
of NPATA was slightly above budget, while performance on the CFO measure was slightly below budget. Plasma collection
volumes increased and the plasma cost per litre reduced over prior year. CSL continues to develop and progress its research and
development pipeline, realise efficiencies across all businesses and is innovating to drive a sustainable business.
The performance outcomes achieved resulted in an average overall STI payment outcome of 53% of maximum for Executive KMP
(see tables 3, 4 and 5).
In determining the STI outcomes for Executive KMP, the Board reviewed the quality of earnings and risk management outcomes
across the year to ensure the STI outcomes were appropriately aligned with the overall performance of the company and the
experience of CSL’s shareholders.
The Leading and Managing Modifier was not used in 2024. The Board made no adjustments under the Malus and Clawback Policy
and no risk management, behavioural or compliance issues involving Executive KMP were identified during the joint meeting
between the HRRC and ARMC.
11 The opening share price for each year reflects the closing share price from the previous year. The opening share price for 2020 was A$215.00.
12. NPATA attributable to shareholders of CSL Limited as reported in the financial statements. Only three years of outcomes are provided in line
with CSL’s reporting of this measure.
13. 2023 and 2024 Net Profit After Tax represents net profit for the year attributable to shareholders of CSL Limited, as reported in the
financial statements.
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Limited Annual Report 2023/24
Table 3: CSL Group KPI outcomes in 2024
Measure
Performance and target outcomes
Commentary
NPATA
(US$m)
Threshold
Target
Maximum
$2,743m
$3,048m
$3,353m
50%
100%
200%
110%
•
The NPATA outcome is measured at constant
currency, set at FY24 target rates. The outcome
was slightly above target and resulted in a
NPATA STI vesting outcome at 110%
•
While not a factor in STI outcomes, Net Profit
after Tax attributable to CSL shareholders for the
year was US$2,642, up 25% from prior year at
constant currency
CFO
(US$m)
Threshold
Target
Maximum
$2,377m
$2,797m
$3,356m
50%
100%
200%
97%
•
While CFO was up on the previous year, the
result was slightly below budget primarily driven
by foreign currency headwinds. This outcome
resulted in a CFO STI vesting outcome of 97%
Sustainability
(milestones)
Threshold
Target
Maximum
8/11
9/11
11/11
50%
100%
200%
150%
•
CSL has driven sustainability forward and
the company is on track to achieve 2030
environmental milestones set across waste
and water, energy efficiency and supplier
engagement initiatives. All 2024 milestones
were met, resulting in a STI outcome of 150%
that reflects achievement of the “activity‑based”
measures. Key achievements and further
information on CSL’s sustainability strategy can
be found in the Healthier World > Healthier
Environment section of the Annual Report
Table 4: Individual KPI outcomes in 2024
KMP
Individual performance outcomes
Targets
P McKenzie
50%
100%
200%
106%
Overall individual performance was slightly above
target with an individual weighting outcome of 37%
against the target of 35%
Target
Above Target
Below Target
KPI 1: Drive sustainable, profitable growth
•
Increase in revenue for all CSL business units;
•
Grow the CSL Behring portfolio;
•
Increase in plasma collection volumes
and improvement in cost per litre;
•
Plasmapheresis platform targets;
•
CSL Vifor cost synergies and
integration outcomes;
Target
Above Target
Below Target
KPI 2: Advance and deliver key pipeline and
yield milestones
•
Manufacturing yield improvements;
•
Key research and development pipeline
milestones;
Target
Above Target
Below Target
KPI 3: Optimise external relationships for
greater value
•
Alliance and partnership targets;
Target
Above Target
Below Target
KPI 4: Advance Promising Futures for our people
•
Global Leadership Group organisation design
changes and succession plan initiatives; and
•
Employee Engagement outcomes.
STI Vesting Outcome
STI Vesting Outcome
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Directors’ Report
KMP
Individual performance outcomes
Targets
J Linton
50%
100%
200%
106%
Overall individual performance was slightly above
target with an individual weighting outcome of 37%
against the target of 35%
Target
Above Target
Below Target
KPI 1: Drive financial performance of the enterprise
•
Balance sheet metrics;
•
Increase in plasma collection volumes and
improvement in cost per litre;
Target
Above Target
Below Target
KPI 2: Deliver CSL Vifor integration value
•
CSL Vifor cost synergies and
integration outcomes;
Target
Above Target
Below Target
KPI 3: Lead a high performing finance function
•
Maturity and automation targets for the finance
shared services centre;
•
Successful external auditor transition;
•
Establishment of the Corporate and External
Affairs business unit; and
•
Employee engagement outcomes.
A Schmeltz
50%
100%
200%
100%
Overall individual performance was at target with
an individual weighting outcome of 45% against the
target of 45%
Target
Above Target
Below Target
KPI 1: Drive sustainable, profitable growth
•
Increase in revenue for CSL Behring;
•
Grow the CSL Behring portfolio;
•
Increase in plasma collection volumes
and improvement in cost per litre;
Target
Above Target
Below Target
KPI 2: Deliver key alliance milestones to transform
the business
•
Plasmapheresis platform targets;
Target
Above Target
Below Target
KPI 3: Progress yield programs
•
Manufacturing yield improvements;
Target
Above Target
Below Target
KPI 4: Advance Promising Futures for our people
•
Organisation design implemented for the CSL
Behring commercial function and succession
plan initiatives; and
•
Employee engagement outcomes.
STI Vesting Outcome
Table 5: Executive KMP STI outcomes in 2024
The following table sets out STI outcomes for Executive KMP as result of the performance outcomes achieved.
Executive
Value of STI earned
US$
STI earned as % of maximum
opportunity14
STI earned as % of FR
P McKenzie
$2,325,645
54%
128%
J Linton
$978,413
54%
107%
A Schmeltz15
$695,380
52%
104%
14. The value of the STI earned is the maximum 2024 STI that will be paid to the Executive KMP. Any STI that was not earned is automatically
forfeited. If none of the performance hurdles had been met, the minimum 2024 STI paid would have been zero.
15. In 2024, A Schmeltz was an Executive KMP for the period 1 September 2023 to 30 June 2024. For transparency, the full year STI payment for
A Schmeltz was US$837,200.
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Limited Annual Report 2023/24
5.2
LTI Award Outcomes in 2024 and 2025
As disclosed in the 2023 Remuneration Report, the Board made the decision to maintain ROIC LTI performance targets for
on‑foot unvested LTI awards granted prior to the acquisition of Vifor Pharma. The Board noted it would take into account CSL Vifor’s
performance when considering LTI vesting outcomes.
The awards vesting in the financial year 2024 (performance period to 30 June 2023/vesting 1 September 2023) and financial year
2025 (performance period to 30 June 2024/vesting 1 September 2024) are the last awards granted prior to the acquisition of Vifor
Pharma, where this decision is applicable. All awards granted since November 2022 and vesting in the future include CSL Vifor
in target setting.
This year, to enhance transparency, disclosures have been expanded to include the equity award testing outcomes across 2024
and 2025 financial years.
Awards tested in 2024
For the awards that vested on 1 September 2023 (performance period to 30 June 2023), the Board considered performance over the
seven year performance period, noting that CSL Vifor was only part of the CSL Group for 11 of the 84 months. The Board determined
to make no adjustment for the relatively immaterial time period CSL Vifor was part of the CSL Group, noting that integration
activities were underway and it was too early to make an assessment on the CSL Vifor contribution.
Table 6: LTI Awards tested in 2024
Grant Date
Security
Tranche
Performance
Measure
Performance
Period
Performance
Level
Performance
Outcome
Vesting
Outcome16
1 September 2019
PSU
4
ROIC
1 July 2016 – 30
June 2023
Threshold – 22%
Target – 25%
21.8%
0%
1 September 2020
PSU
3
ROIC
1 July 2016 – 30
June 2023
Threshold – 20%
Target – 23%
21.8%
80%
Awards tested in 2025
In 2024, after careful consideration of the shareholder experience and CSL Vifor’s performance against a range of factors since
the acquisition, the Board determined that for five executives, including the former CEO, current CEO and Chief Financial Officer, a
20% reduction will be applied to LTI awards vesting 1 September 2024 (performance period to 30 June 2024). The Board believes this
adjustment is appropriate and fair and achieves appropriate accountability.
Table 7: LTI Awards tested in 2025
Grant Date
Security
Tranche
Performance
Measure
Performance
Period
Performance
Level
Performance
Outcome
Vesting
Outcome17
Board
Discretion
Adjusted
Vesting
Outcome17
1 September 2020 PSU
4
ROIC
1 July 2017 –
30 June 2024
Threshold – 20%
Target – 23%
20.7%
61.67%
49.34%
1 September 2021
PSU
1
ROIC
1 July 2017 –
30 June 2024
Threshold – 20%
Target – 21.4%
20.7%
75%
60%
1 September 2021
PSU
2
EPSg
1 July 2021 –
30 June 2024
Threshold – 5%
Target – 8.3%
3.5%
0%
0%
The Board and Management team continues to have confidence in CSL Vifor, and whilst near term growth prospects are more
subdued than originally envisaged, CSL is confident that it has the right plans in place to deliver growth from CSL Vifor over the
long-term. It is a good business with the right capabilities, competencies and adjacencies to CSL.
16. The remaining portion of each tranche has lapsed – there is no retest.
17. The remaining portion of each tranche will lapse – there is no retest.
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Directors’ Report
6.
Remuneration in 2025
6.1
Executive KMP Remuneration Changes in 2025
The Board determines any increases to reward for Executive KMP based on CSL’s position in the market relative to the global
pharmaceutical/biotechnology peer group, individual performance, role responsibilities and internal relativity.
This section sets out the target remuneration for Executive KMP effective 1 September 2024 for the financial year 2025.
Any increase to Executive KMP reward is in line with the approach taken for the broader employee population. When comparing
Executive KMP TDC to the reward of peers within the global pharmaceutical/biotechnology peer group, TDC is below the
market median.
Executive KMP
Changes effective FY25
Executive KMP target remuneration and global peer market data (US$)
P McKenzie
– 3.5% increase to FR
to US$1,874,644
– No change to target STI and
LTI percentage opportunity
– TDC of US$12,091,452 –
positioned at 71% of the
market median
2025 Fixed Reward
2025 STI Target
2025 LTI Target
2025 Total Target
Direct Compensation
12,091,452
12,988,215
2,423,014
2,249,573
1,697,782
1,874,644
7,967,236
P McKenzie
Peer Group CEO – median
17,044,983
J Linton
– 3.97%* increase to FR
to US$950,672
– No change to target STI and
LTI percentage opportunity
– TDC of US$4,040,355 –
positioned at 66% of the
market median
*
The 3.97% increase has been
applied to Ms Linton’s A$ FR and
converted to US$ at an average
exchange rate for the 2024
financial year of 1.52397.
2025 Fixed Reward
2025 STI Target
2025 LTI Target
4,040,355
4,605,234
1,095,030
950,672
1,080,407
950,672
2,139,011
J Linton
Peer Group Chief Financial Officer – median
6,140,479
2025 Total Target
Direct Compensation
A Schmeltz
– 4.5% increase to FR
to US$841,225
– No change to target STI and
LTI percentage opportunity
– TDC of US$4,206,125 –
positioned at 92% of the
market median
2025 Fixed Reward
2025 STI Target
2025 LTI Target
4,206,125
2,366,605
942,187
841,225
1,013,104
841,225
2,523,675
A Schmeltz
Peer Group EVP Behring – median
4,584,478
2025 Total Target
Direct Compensation
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Limited Annual Report 2023/24
6.2
Executive Remuneration Framework Changes for 2025
The Board continually reviews the executive remuneration framework, ensuring each component is fit for purpose and enables
the delivery of CSL’s strategy and purpose. Over the year, NEDs and executives have held conversations with many of CSL’s
shareholders and valued their feedback on the framework. In 2025, two changes will be made, taking effect from 1 July 2024.
Expansion of Sustainability in STI
Over the past 12 months, CSL has matured its sustainability program, specifically on the achievement of environmental (E)
ambitions and targets, extended its strategy to ambitions and focus areas in Social (S) and Workforce (W), and listened to feedback
from investors. Accordingly, the sustainability objective in CSL’s STI will be expanded to cover S and W measures in addition to E.
We will also reduce the number of measures to incentivise executives to focus on a smaller number of outcomes that will have a
meaningful impact on CSL’s 2030 sustainability strategy. The overall weighting remains at 5%.
Introduction of a LTI Holding Lock
In 2023, CSL moved from a seven year (four year look back / three year forward look) performance period to a single three year
forward look for the ROIC LTI measure. While this was well received by investors, some did flag concern, wanting to see a longer
period. To address this, for awards granted from 1 September 2024, a one year holding lock will be applied to PSU awards for all
Global Leadership Group members. The holding lock will ensure Executive KMP reward will continue to be aligned to CSL’s share
price and the shareholder experience.
The diagram below depicts how the holding lock will work. For those executives located in jurisdictions where the vesting of PSUs
and allocation of shares triggers a tax event, CSL will sell enough shares to cover the tax liability and the remaining shares will be
subject to the holding lock. Shares held will be eligible for any dividends and, if an executive ceases employment for any reason
during the holding lock, shares will be retained by the participant but will remain subject to the holding lock for the remainder
of the holding lock period.
1 Jul 2024
1 Sep 2024
30 Jun 2027
1 Sep 2027
31 Aug 2028
Holding lock ends
– participant has
access to shares
Award vesting
and shares allocated
Award testing
LTI award granted
Performance Period (3 years)
Holding Period (1 year)
X% shares retained and
holding lock applied
X% shares sold to
cover tax laibility
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Directors’ Report
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, including the following
activities:
•
Review of the executive remuneration
framework;
•
Review and consideration of investor feedback;
•
Appointment of external remuneration advisers;
•
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, equity and inclusion
objectives and report, gender pay review and
progress against objectives;
•
Review of talent and succession planning for
senior executives;
•
Review of long term remuneration strategy;
•
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). The Charter
is available at https://www.csl.com/we-are-csl/
corporate-governance
The composition and individual attendances of
the HRRC members at HRRC meetings can be
found in the Directors’ Report.
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.
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.
External Remuneration Advisers
The Board and the HRRC may seek and consider
advice directly from external advisers, who are
independent of management.
In 2024 the HRRC engaged the services of Aon
Consulting in the US, and Ernst & Young 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 Ernst & Young. Neither
Aon Consulting nor Ernst & Young provided
Remuneration Recommendations during the 2024
financial year.
7.
Remuneration Governance
7.1
CSL’s Remuneration Governance Framework
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Limited Annual Report 2023/24
7.2
Remuneration Governance Policies and Approach
Feature
Description
Board Discretion
– CEO and Executive KMP outcomes are holistically assessed by the Board before approval.
The Board also considers whether there are any circumstances warranting application of
discretion (including under the Malus and Clawback Policy)
– The Board has the discretion to adjust STI and LTI outcomes downwards, including to zero,
and can also adjust STI upwards
Treatment of STI
on Cessation
of Employment
– A ‘qualified leaver’ (for example someone who retires or is made redundant) or an employee who
ceases employment under a change of control event, 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
Treatment of LTI
on Cessation
of Employment
– 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 generally lapse unless the Board
determines otherwise
Treatment of LTI
on Change of Control
– 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 up 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
Malus and
Clawback Policy
– CSL operates a Malus and Clawback Policy across both STI and LTI. 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 a material adverse development
Commencement
Benefits
– The HRRC and Board may determine that it is appropriate for a commencement benefit to be
offered to an externally hired Executive KMP, aligned to the CSL framework
– Commencement benefits in the form of cash and/or equity can be made to compensate for
remuneration being forfeited from a former employer. Awards may be discounted to take into
consideration any performance conditions on the award at the former employer
Minimum shareholding
guideline
– The following levels of vested equity must be held within five years of appointment:
– CEO: Three times base salary
– Other Executive KMP: One times base salary
– As at 30 June 2024, all Executive KMP hold, or are on track to hold, the minimum shareholding
requirement within the relevant time period
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
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Directors’ Report
7.3
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
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 a payment in lieu of
notice with total termination payment capped at 12 months.
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, CSL will also 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 US.
Chief Financial Officer Commencement Arrangements
Ms Linton commenced as Executive KMP on 5 March 2021 and was granted RSUs on 1 April 2021 as a component of her
commencement arrangements (as partial compensation for time-based equity forfeited at her previous employer). The final
tranche of this award (396 RSUs) vested on 1 March 2024. Details of the grant terms are set out in the 2021 Remuneration Report.
EVP CSL Behring Commencement Arrangements
Mr Schmeltz was granted commencement benefits worth US$3,047,000 in the form of cash and equity18, to compensate
Mr Schmeltz for the loss of his STI and a pro-rata portion of his LTI awards on cessation of employment with his previous employer,
Pfizer. Mr Schmeltz was provided with:
•
US$213,300 in cash to compensate him for his lost Pfizer STI, paid in July 2023;
•
13,615 CSL time-based RSUs, with vesting to occur in March 2024 (5,454 RSUs), March 2025 (5,949 RSUs) and March 2026 (2,212)
to compensate him for time-based Pfizer awards;
•
1,507 CSL PSUs, subject to ROIC and EPS growth performance hurdles and aligned to the CSL 2022 LTI award, with vesting to
occur 1 September 2024 to compensate him for performance based Pfizer LTI awards; and
•
1,112 CSL PSUs, subject to ROIC and EPS growth performance hurdles and aligned to the CSL 2023 LTI award, with vesting to
occur 1 September 2025 to compensate him for performance based Pfizer LTI awards.
As these awards were provided to compensate Mr Schmeltz for loss of his prior remuneration, no amount is payable by him.
The RSUs and PSUs do not have an exercise price and will be exercised automatically on vesting. The cash-based incentive and the
time-based RSUs are not subject to performance conditions.
Mr Schmeltz also received a 2024 LTI award under CSL’s annual LTI program.
7.4
Other Transactions
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 2024.
No loans were made to NEDs during 2024. 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.
18. Each PSU and RSU is a conditional right to receive a share in CSL (or a cash equivalent payment). No price is payable by A Schmeltz on the grant
or vesting of PSUs or RSUs awarded as a commencement benefit.
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Limited Annual Report 2023/24
8.
NED Remuneration
8.1
NED Fee Policy
Feature
Description
Objective
CSL’s NED fee arrangements are designed to appropriately compensate suitably qualified directors,
with the requisite experience and expertise, for their Board responsibilities and contribution to Board
committees. NEDs do not receive any performance related remuneration
Maximum
Aggregate Fees
The current maximum aggregate fee pool of A$4,000,000 was last approved by shareholders on
12 October 2016. Actual NED fees paid during the 2024 year (including superannuation contributions,
NED Rights Plan sacrifice amounts and Committee fees) are within this agreed limit, and totalled A$3,226,845
in 2024
NEDs may be reimbursed for reasonable expenses incurred during the year and this reimbursement is not
included within this limit
NED Fee Reviews
The Board, in conjunction with the HRRC, reviews NED fees on an annual basis in line. 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
NED Rights Plan
Under the NED Rights Plan, NEDs must 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. No price is payable on vesting as this is a fee sacrifice plan
and no performance conditions apply to the Rights. For Australian based NEDs, Rights are automatically
exercised on vesting and the shares allocated are then subject to a nominated restriction period of three
to fifteen years. Overseas based NEDs hold vested Rights with shares only being allocated at the end of
the nominated three to fifteen year restriction period after automatic exercise of the Rights
As this is a fee sacrifice plan, 100 percent of each tranche of Rights will vest following disclosure of the
next financial results unless the NED ceases to hold their office before vesting, in which case the NED’s
Rights will be pro-rated based on service, with retained Rights automatically exercised and shares
allocated following cessation, and the remaining Rights lapsed. The maximum value of the Rights is the
Fair Value per Right at the grant date multiplied by the number of Rights granted (see footnote 27 to
Table 10 for details of the Fair Values and number of Rights granted in 2024.) The minimum value of the
Rights will be the number of Rights retained if the NED ceases to hold their office multiplied by the Fair
Value per Right at the grant date (see footnote 27 to Table 10 for details of the Fair Values)
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. As at 30 June 2024, all NEDs hold the minimum shareholding requirement within
the relevant time period
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 additional 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
95
Directors’ Report
8.2
NED Fees
The Board continues to monitor the practice of global Australian listed companies and those listed in European and US markets
to confirm a competitive structure and fee arrangement is in place.
In 2024, after reviewing ASX12 comparative Board fees, the Board determined to increase Board and Committee fees by 3% from
1 July 2024. This increase is within the maximum aggregate fees that may be paid to all NEDs, as approved by shareholders at the
2016 AGM and is below the global weighted average budget increase for CSL employees.
The following table provides details of Board and Committee fees for 2024 and 2025.
Table 8: NED Fees 2024 and 2025
2024 Fees
2025 Fees
Board Chair Fee
A$923,000
A$950,700
Board NED Base Fee
A$260,200
A$268,000
Committee Fees
Committee
Chair
Committee
Member
Committee
Chair
Committee
Member
Audit & Risk Management
A$74,250
A$36,350
A$76,500
A$37,450
Corporate Governance & Nomination
A$31,950
A$16,000
A$32,900
A$16,500
Human Resources & Remuneration
A$63,650
A$31,950
A$65,550
A$32,900
Innovation & Development
A$61,700
A$31,950
A$63,550
A$32,900
The Chair of the Board does not receive Committee fees in addition to his Board Chair 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 2024,
no allowance was paid.
From 1 July 2024, the Board approved a change in approach and value of the travel allowance. Applicable only to those NEDs
who reside outside of Australia, for any trip greater than ten hours, a per-trip gross travel allowance of A$20,000 will be paid. This
allowance considers the travel burden imposed on overseas NEDs as they attend board meetings and visit CSL’s global locations.
8.3
NED Share Purchases
During 2024, CSL completed three on-market purchases of shares for the purposes of the NED Rights Plan. A total of 3,101 shares
were purchased during the reporting period and the average price paid per share was A$279.33. No shares were purchased on
market for any employee equity plans during the year.
96
Limited Annual Report 2023/24
19. The A$ compensation paid during the years ended 30 June 2023 and 30 June 2024 have been converted to US$. For the 2024 compensation, this
has been converted to US$ at an average exchange rate for the 2024 financial year of 1.52397. 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. 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 2024.
20. The PSUs and RSUs, granted as LTI and commencement benefits, have been valued using the Black Scholes option valuation methodology.
These valuations were undertaken by Deloitte (until March 2022) and PricewaterhouseCoopers (from September 2022). 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 2024 financial year of
1.52397. There were no Performance Rights or Options expensed or outstanding in 2023 or 2024.
21. Includes cash salary, cash allowances and short term compensated absences, such as annual leave entitlements accrued but not taken during
the year.
22. The STI cash bonus in respect of 2024 is scheduled to be paid in September 2024. The STI cash component of the cash bonus received in 2023
was paid in full in September 2023 for all Executive KMP as previously disclosed, with no adjustment.
23. 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.
24. J Linton commenced as Executive KMP on 5 March 2021 and was granted RSUs on 1 April 2021 as a component of her commencement
arrangements (as partial compensation for time-based equity forfeited at her previous employer). The final tranche of this award (396 RSUs)
vested on 1 March 2024. Details are set out in the 2021 Remuneration Report.
25. In 2024 A Schmeltz was an Executive KMP for the period 1 September 2023 to 30 June 2024. A cash sign on bonus of US$213,300 was paid to
A Schmeltz in July 2023 on commencement of employment and was to compensate for loss of STI on cessation of employment with Pfizer.
A Schmeltz was granted PSUs and RSUs on 1 September 2023 as a component of his commencement arrangements (as partial compensation
for time-based equity forfeited at his previous employer). Details are set out in section 7.3 of this Report.
9.
KMP Statutory Tables
9.1
Executive KMP Statutory Remuneration
Remuneration is reported in US$, unless otherwise stated.
Table 9: Statutory Remuneration Disclosure – Executive KMP
Short Term Benefits
Post
Employ-
ment
Other
Long
Term
Share Based
Payments20
Year19
Cash
Salary
and Fees
US$21
Cash
Bonus
US$22
Cash
Sign
On
US$
Non-
Monetary
US$23
Super
US$
Long
Service
Leave
US$
PSUs
US$
RSUs
US$
Total
US$
%
Perfor-
mance
Related
Executive
P McKenzie
CEO and
Managing
Director
2024
1,889,622 2,325,645
–
124,693
32,900
–
3,810,982
– 8,183,842
75%
2023
1,280,851
1,376,890
–
70,669
23,257
–
1,657,943
– 4,409,610
69%
J Linton
Chief
Financial
Officer 24
2024
834,511
978,413
–
37,765
181,642
22,205
1,660,338
15,387 3,730,261
71%
2023
846,516
946,395
–
46,836
186,096
21,242
924,455
334,835 3,306,375
67%
A Schmeltz
EVP CSL
Behring25
2024
710,077
695,380
–
48,492
26,738
–
939,442 1,650,637 4,070,766
81%
2023
–
–
–
–
–
–
–
–
–
–
TOTAL
2024
3,434,210 3,999,438
–
210,950
241,280
22,205
6,410,762 1,666,024 15,984,869
76%
2023
2,127,367
2,323,285
117,505
209,363
21,242
2,582,398
334,835
7,715,985
68%
97
Directors’ Report
9.2
NED Statutory Remuneration
Remuneration is reported in US$, unless otherwise stated.
Table 10: Statutory Remuneration Disclosure – NEDs
Short Term
Benefits
Post Employment
Share Based
Payments
NED
Year26
Cash Salary
and Fees
US$
Super-
annuation
US$
Retirement
Benefits
US$
Rights
US$27
Total
US$
B McNamee – Chairman
2024
466,545
17,979
–
120,324
604,848
2023
464,986
17,005
–
119,228
601,219
M Clark
2024
174,768
17,979
–
49,692
242,439
2023
191,711
17,005
–
33,551
242,267
A Cuthbertson
2024
152,457
18,045
–
50,852
221,354
2023
151,123
18,490
–
50,681
220,294
C Hewson
2024
151,554
16,671
–
68,862
237,087
2023
133,332
17,005
–
83,932
234,269
S Lewis28
2024
68,111
7,492
–
15,521
91,124
2023
–
–
–
–
–
D Maskell
2024
65,033
7,154
–
118,757
190,944
2023
54,788
17,005
–
115,541
187,334
M McDonald
2024
156,191
8,143
–
50,852
215,186
2023
154,958
8,502
–
50,410
213,870
A Watkins
2024
163,287
17,979
–
59,291
240,557
2023
136,479
18,490
–
58,269
213,238
Former NED
B Brook29
2024
49,731
5,075
–
23,930
78,736
2023
120,837
6,028
–
97,275
224,140
TOTAL
2024
1,447,677
116,517
–
558,081
2,122,275
2023
1,408,214
119,530
–
608,887
2,136,631
26. The A$ compensation paid and share based payments during the years ended 30 June 2023 and 30 June 2024 have been converted to
US$. For the 2024 compensation, this has been converted to US$ at an average exchange rate for the 2024 financial year of 1.52397. For the
2023 compensation, this has been converted to US$ at an average exchange rate for the 2023 financial year of 1.48733. 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 2024.
27. As disclosed in 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 23 August 2023 was A$267.06 for Tranche 1 (vested 16 February 2024) and A$265.08
for Tranche 2 (vests 16 August 2024). For the Rights granted 21 February 2024 (vesting 16 August 2024), the fair value was A$280.34.
28. In 2024 S Lewis was a NED for the period 1 January 2024 to 30 June 2024.
29. In 2024 B Brook was a NED for the period 1 July 2023 to 11 October 2023.
98
Limited Annual Report 2023/24
9.3
Fair Value of Equity Awards Granted, Vested and Lapsed in 2024
The table below details the fair value at the date of grant for all LTI awards granted, vested and lapsed for Executive KMP in 2024
and those awards with a 1 September 2025 vest date. The values are shown in Australian Dollars (A$).
Table 11: Grant Fair Value
Security
Tranche
Grant Date
Vest Date
Expiry Date
Fair Value per
Security at Grant
A$
PSU
4/4
1 Sep 2019
1 Sep 2023
1 Oct 2029
225.80
PSU
3/4
1 Sep 2020
1 Sep 2023
1 Sep 2025
281.87
PSU
4/4
1 Sep 2020
1 Sep 2024
1 Sep 2025
278.95
RSU
4/4
1 Apr 2021
1 Mar 2024
1 Apr 2026
258.47
PSU
1/2
1 Sep 2021
1 Sep 2024
1 Sep 2026
302.44
PSU
2/2
1 Sep 2021
1 Sep 2024
1 Sep 2026
302.44
RSU
1/3
1 Sep 2023
1 Mar 2024
1 Sep 2029
267.19
RSU
2/3
1 Sep 2023
1 Mar 2025
1 Sep 2029
262.67
RSU
3/3
1 Sep 2023
1 Mar 2026
1 Sep 2029
257.45
PSU
1/2
1 Sep 2023
1 Sep 2024
1 Sep 2026
265.21
PSU
2/2
1 Sep 2023
1 Sep 2024
1 Sep 2026
265.21
PSU
1/2
1 Sep 2023
1 Sep 2025
1 Sep 2027
260.53
PSU
2/2
1 Sep 2023
1 Sep 2025
1 Sep 2027
260.53
PSU
1/2
1 Sep 2023
1 Sep 2026
1 Sep 2028
255.16
PSU
2/2
1 Sep 2023
1 Sep 2026
1 Sep 2028
255.16
99
Directors’ Report
9.4
Summary of Executive KMP Equity Granted, Vested and Lapsed in 2024
The table below summarises the details of equity awards granted, vested and lapsed 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.
Table 12: Movement in Equity in 2024
Executive
Security
Tranche
Grant
Date
Vesting
Date30
Fair
Value
at Grant
US$
Face
Value
at Grant
US$31
Granted
During
the Year
Vested
Lapsed
Face
Value at
Vest –
Vested
Award
US$32
Face
Value at
Lapse –
Lapsed
Awards
US$33
P McKenzie
PSU
4
1 Sep 19
1 Sep 23
682,155
727,682
4,604
–
4,604
–
812,936
PSU
3
1 Sep 20
1 Sep 23
721,335
720,849
3,900
3,120
780
550,904
137,726
PSU
1
1 Sep 23
1 Sep 26
5,168,096 5,450,239
30,867
–
–
–
–
PSU
2
1 Sep 23
1 Sep 26
2,214,779 2,335,691
13,228
–
–
–
–
J Linton34
RSU
4
1 Apr 21
1 Mar 24
67,163
68,340
396
396
–
73,368
–
PSU
1
1 Sep 23
1 Sep 26
1,365,066 1,439,589
8,153
–
–
–
–
PSU
2
1 Sep 23
1 Sep 26
585,004
616,941
3,494
–
–
–
–
A Schmeltz35
RSU
1
1 Sep 23
1 Mar 24
956,222
963,022
5,454
5,454
–
1,010,477
–
RSU
2
1 Sep 23
1 Mar 25
1,025,364 1,050,425
5,949
–
–
–
–
RSU
3
1 Sep 23
1 Mar 26
373,681
390,577
2,212
–
–
–
–
PSU
1
1 Sep 23
1 Sep 24
183,423
186,107
1,054
–
–
–
–
PSU
2
1 Sep 23
1 Sep 24
78,834
79,987
453
–
–
–
–
PSU
1
1 Sep 23
1 Sep 25
133,003
137,373
778
–
–
–
–
PSU
2
1 Sep 23
1 Sep 25
57,099
58,975
334
–
–
–
–
PSU
1
1 Sep 23
1 Sep 26
1,621,571
1,710,097
9,685
–
–
–
–
PSU
2
1 Sep 23
1 Sep 26
695,006
732,949
4,151
–
–
–
–
30. RSUs and PSUs are automatically exercised on vesting.
31. Securities granted multiplied by the closing CSL share price on the date of grant. The A$ value was converted to US$ at an average exchange rate
for the year of 1.52397.
32. 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 year of 1.52397.
33. 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 year of 1.52397.
34. J Linton’s RSU award represents commencement RSUs as partial compensation of benefits forfeited with previous employer.
35. A Schmeltz’s RSU award and PSU awards vesting to 2025 represents commencement RSUs and PSUs as partial compensation of benefits
forfeited with previous employer.
100
Limited Annual Report 2023/24
9.5
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 13. 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 14. Following the vesting of awards, any trading undertaken
by Executive KMP was subject to the Group Securities Dealing Policy (outlined in section 7.2). Approved trading disclosed was
actioned in accordance with the Policy, and sales undertaken were the forced trades to cover CSL tax withholding obligations,
not further shares were sold in 2024.
Table 13: Executive KMP Shareholdings
Executive
Opening
Balance
at 1 July
2023
Number of
Shares
Acquired on
Exercise of
PSUs or
RSUs during
year
US$
Vesting and
Value of
Shares
Acquired on
Exercise of
PSUs or
RSUs during
year
US$36
Number of
(Shares
Sold)/
Purchased
Closing
Balance
at 30 June
2024
P McKenzie
20,697
3,120
550,904
(1,361)
22,456
J Linton
11,644
396
73,368
–
12,040
A Schmeltz
–
5,454
1,010,477
(3,340)
2,114
There have been no movements in shareholdings of Executive KMP between 30 June 2024 and the date of this report.
Table 14: Executive KMP Performance Share Unit and Restricted Share Unit Holdings
Closing Balance at
30 June 2024
Executive
Security
Opening
Balance
as at 1 July
2023
Number
Granted
Number
Exercised
Number
Lapsed37
Closing
Balance as
at 30 June
2024
Number
Vested
During
Year
Vested38 Unvested
P McKenzie39
PSU
48,883
44,095
3,120
5,384
84,474
3,120
–
84,474
J Linton
PSU
17,557
11,647
–
–
29,204
–
–
29,204
RSU
396
–
396
–
–
396
–
–
A Schmeltz
PSU
–
16,455
–
–
16,455
–
–
16,455
RSU
–
13,615
5,454
–
8,161
5,454
–
8,161
36. The value of PSUs and RSUs at the exercise date has been determined by the share price at the close of business on the exercise date multiplied
by the number of securities exercised during 2024. The A$ value was converted to US$ at an average exchange rate for the year of 1.52397.
37. The number that lapsed represents the portion of the 2020 LTI (Tranche 4 granted 1 September 2019) and the 2021 LTI (Tranche 3 granted
1 September 2020) that did not vest.
38. Vested awards are exercisable to the Executive KMP. There are no vested and unexercisable awards.
39. The grant date of PSUs to P McKenzie was 12 October 2023. Shareholder approval for the grant of PSUs and any shares to be issued at the time
of vesting, was obtained under ASX Listing Rule 10.14 at the 2023 Annual General Meeting.
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Directors’ Report
9.6
NED Shareholdings
Details of fully paid ordinary shares held directly, indirectly or beneficially by each NED, including their related parties, is provided in
Table 15. Details of Rights held directly, indirectly or beneficially by each NED, including their related parties, is provided in Table 16.
Following the vesting of awards, any trading undertaken by NEDs was subject to the Group Securities Dealing Policy (outlined in
section 7.2).
Table 15: NED Shareholdings
KMP
Opening
Balance
as at 1 July
2023
Number
of Shares
Acquired on
Exercise of
Rights
during year
Value of
Shares
Acquired
on Exercise
of Rights
during year
US$40
Number of
(Shares
Sold)/
Purchased
Closing
Balance
at 30 June
2024
NED
B McNamee
146,580
647
117,153
(21,000)
126,227
M Clark
4,449
230
41,906
430
5,109
A Cuthbertson
90,263
273
49,436
(20,000)
70,536
C Hewson
1,655
407
73,440
–
2,062
S Lewis41
1,882
–
–
–
1,882
D Maskell
717
639
115,707
–
1,356
M McDonald
3,863
273
49,436
–
4,136
A Watkins
3,226
319
57,760
–
3,545
Former NED
B Brook42
6,499
313
53,690
–
6,812
There have been no movements in shareholdings of NEDs between 30 June 2024 and the date of this Report.
40. The value at exercise date has been determined by the share price at the close of business on the exercise date multiplied by the number of
Rights exercised during 2024. The A$ value was converted to US$ at an average rate for the year of 1.52397.
41. In 2024 S Lewis was a NED for the period 1 January 2024 to 30 June 2024. Accordingly, S Lewis’ balance at 1 July 2023 is the balance at
1 January 2024.
42. In 2024 B Brook was a NED for the period 1 July 2023 to 11 October 2023. Accordingly, B Brook’s balance at 30 June 2024 is the balance at
11 October 2023.
102
Limited Annual Report 2023/24
Table 16: NED Rights Holdings
Closing Balance
at 30 June 2024
KMP
Security
Opening
Balance
at 1 July
2023
Number
Granted43
Face
Value
of Rights
Granted
US$44
Fair
Value
of Rights
Granted
US$45
Number
Exer-
cised46
Value of
Rights
Exer-
cised
US$47
Number
Lapsed
Balance
at
30 June
2024
Number
Vested
During
Year
Vested48
Un-
vested49
NED
B McNamee
Right
304
686
118,477
119,769
647
117,153
–
343
647
–
343
M Clark
Right
85
290
50,085
50,631
230
41,906
–
145
230
–
145
A
Cuthbertson50 Right
128
290
50,085
50,631
273
49,436
–
145
273
–
145
PSU
1,161
–
–
–
–
–
1,161
–
–
–
–
C Hewson
Right
214
386
66,665
67,392
407
73,440
–
193
407
–
193
S Lewis
Right
–
114
21,265
20,971
–
–
–
114
–
–
114
D Maskell
Right
300
677
116,922
118,198
639
115,707
–
338
639
–
338
M McDonald Right
128
290
50,085
50,631
273
49,436
–
145
273
–
145
A Watkins
Right
150
338
58,375
59,012
319
57,760
–
169
319
–
169
Former NED
B Brook
Right
257
193
33,333
33,697
313
53,690
137
–
313
–
–
43. 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 23 August 2023 of A$268.98. The Rights were granted on 23 August 2023 in two tranches (the 2024 grant).
Tranche one had a vesting date of 16 February 2024 and tranche two vests 16 August 2024.
44. The value at grant date has been determined by the share price at the close of business on the grant date of 23 August 2023 being A$263.20
multiplied by the number of Rights granted during 2024. The A$ value was converted to US$ at an average exchange rate for the year of 1.52397.
The Rights have an expiry date fifteen years from the start of the financial year in which the Rights were granted.
45. 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 16 in the Financial Statements). The fair value of each Right granted on 23 August 2023 was Tranche 1: A$267.06 and
Tranche 2: A$265.08 and for the Rights granted 21 February 2024 was A$280.34, multiplied by the number of Rights granted during 2024.
46. Vesting and exercise occurred in relation to Tranche 2 of the 2023 grant and Tranche 1 of the 2024 grant. All Rights eligible vested at 100% during
the year. No Rights eligible to vest were lapsed.
47. The value at exercise date has been determined by the share price at the close of business on the exercise date multiplied by the number of
Rights exercised during 2024. The A$ value was converted to US$ at an average exchange rate for the year of 1.52397. 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.
48. 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.
49. Unvested Rights represent Tranche 2 of the 2024 grant that will vest on 16 August 2024, following the release of full year financial results.
50. All PSUs were held by A Cuthbertson in his capacity as a member of the Company’s Executive KMP until 1 October 2021. Details of the awards are
disclosed in prior year Remuneration Reports.
103
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 at least partially 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
•
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.
CSL’s Senior Vice President and Vice President employees participate in both the Executive Performance and Alignment PSU
(described in section 3.5) 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.
104
Limited Annual Report 2023/24
10.3 Key Characteristics of Prior Financial Year PSU Grants
The following table provides information on the key characteristics of the LTI programs on foot during the 2024 reporting period.
The 2020 (granted September 2019), 2021 (granted September 2020), 2022 (granted September 2021) and 2023 (granted
November 2022) PSU LTI awards have the same key characteristics as the 2024 (granted 1 September 2023) award disclosed in
section 3.5 with the exception of the hurdle, performance period, performance targets and vesting dates as outlined below. Details
of the performance and service criteria applying to awards granted in prior years are summarised in prior Remuneration Reports
corresponding to the reporting period in which the awards were granted. 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 below with remaining terms aligning with the detail provided in section 3.5.
Table 17: Key Characteristics of Prior Financial Year PSU Grants
Grant Date
Tranche
Performance
Measure
Performance Period
Performance Target
Vesting Date
1 Sep 2019
4/4
ROIC
1 July 2016 – 30 June 2023
Threshold – 22%
Target – 25%
1 September 2023
1 Sep 2020
2/4
ROIC
1 July 2015 – 30 June 2022
Threshold – 20%
Target – 23%
1 September 2022
1 Sep 2020
3/4
ROIC
1 July 2016 – 30 June 2023
1 September 2023
1 Sep 2020
4/4
ROIC
1 July 2017 – 30 June 2024
1 September 2024
1 Sep 2021
1
ROIC
1 July 2017 – 30 June 2024
Threshold – 20%
Target – 21.4%
1 September 2024
1 Sep 2021
2
EPSg
1 July 2021 – 30 June 2024
Threshold – 5%
Target – 8.3%
1 September 2024
1 Nov 2022
1
ROIC
1 July 2018 – 30 June 2025
Threshold – 17.0%
Target – 18.2%
1 September 2025
1 Nov 2022
2
EPSg
1 July 2022 – 30 June 2025
Threshold – 10.2%
Target – 14.1%
1 September 2025
105
Consolidated Entity
2024
2023
Notes
US$m
US$m
Sales and service revenue
14,259
12,776
Influenza pandemic facility reservation fees
172
156
Royalties and license revenue
259
242
Other income
110
136
Total operating revenue
2
14,800
13,310
Cost of sales
(7,129)
(6,485)
Gross profit
7,671
6,825
Research and development expenses
6
(1,430)
(1,269)
Selling and marketing expenses
(1,573)
(1,481)
General and administration expenses
(856)
(1,006)
Total expenses
(3,859)
(3,756)
Operating profit (EBIT)
3,812
3,069
Finance costs
2
(476)
(444)
Finance income
39
38
Profit before income tax expense
3,375
2,663
Income tax expense
3
(661)
(419)
Net profit for the year
2,714
2,244
Other comprehensive income (OCI)
Items that may be reclassified subsequently to profit or loss
Hedging transactions realised in profit or loss
11
(11)
(14)
Exchange differences on translation of foreign operations
11
(15)
(17)
Items that will not be reclassified subsequently to profit or loss
Changes in fair value on equity securities measured through OCI, net of tax
11
3
(42)
Actuarial (losses)/gains on defined benefit plans, net of tax
17
(59)
1
Total other comprehensive losses
(82)
(72)
Total comprehensive income for the year
2,632
2,172
Net profit for the year attributable to:
2,714
2,244
- Shareholders of CSL Limited
2,642
2,194
- Non-controlling interests
72
50
Total comprehensive income for the year attributable to:
2,632
2,172
- Shareholders of CSL Limited
2,560
2,122
- Non-controlling interests
72
50
Earnings per share (based on net profit attributable to CSL Limited shareholders for
the year)
US$
US$
Basic earnings per share
9
5.47
4.55
Diluted earnings per share
9
5.45
4.53
The consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Certain comparative amounts have been reclassified in order to be consistent with the current year's presentation. The overall impact of such
reclassifications had no impact on net profit.
106
Consolidated Statement of Comprehensive Income
For the Year Ended 30 June 2024
106
Limited Annual Report 2023/24
Consolidated Entity
2024
2023
Notes
US$m
US$m
CURRENT ASSETS
Cash and cash equivalents
10
1,657
1,548
Receivables and contract assets
13
2,895
2,214
Inventories
4
5,964
5,466
Current tax assets
126
31
Assets held for sale
15
126
—
Total Current Assets
10,768
9,259
NON-CURRENT ASSETS
Property, plant and equipment
8
8,148
7,797
Right-of-use assets
8
1,510
1,555
Intangible assets
7
16,346
16,446
Deferred tax assets
3
911
902
Retirement benefit assets
16
18
6
Other financial assets
10
163
173
Other non-current assets
13
158
96
Total Non-Current Assets
27,254
26,975
TOTAL ASSETS
38,022
36,234
CURRENT LIABILITIES
Trade and other payables
13
3,345
2,947
Interest-bearing liabilities and borrowings
10
944
1,055
Current tax liabilities
176
296
Provisions
14
475
310
Liabilities held for sale
15
10
—
Total Current Liabilities
4,950
4,608
NON-CURRENT LIABILITIES
Interest-bearing liabilities and borrowings
10
11,239
11,172
Retirement benefit liabilities
16
282
204
Deferred tax liabilities
3
1,514
1,464
Provisions
14
186
467
Other non-current liabilities
13
450
493
Total Non-Current Liabilities
13,671
13,800
TOTAL LIABILITIES
18,621
18,408
NET ASSETS
19,401
17,826
EQUITY
Contributed equity
11
557
517
Reserves
11
794
648
Retained earnings
17
16,012
14,621
Equity attributable to shareholders of CSL Limited
17,363
15,786
Non-controlling interests
21
2,038
2,040
TOTAL EQUITY
19,401
17,826
The consolidated balance sheet should be read in conjunction with the accompanying notes.
107
Consolidated Balance Sheet
As at 30 June 2024
107
Equity attributable to shareholders of CSL Limited
Contributed
Equity
Reserves
Retained
earnings
Total
shareholders'
equity
Non-controlling
interests
Total equity
US$m
US$m
US$m
US$m
US$m
US$m
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
As at the beginning of
the year
517
483
648
590
14,621 13,504 15,786
14,577
2,040
— 17,826
14,577
Profit for the year
—
—
—
—
2,642
2,194
2,642
2,194
72
50
2,714
2,244
Other comprehensive
(losses)/income
—
—
(23)
(73)
(59)
1
(82)
(72)
—
—
(82)
(72)
Total comprehensive
income/(losses)
—
—
(23)
(73)
2,583
2,195
2,560
2,122
72
50
2,632
2,172
Transactions with
owners in their
capacity as owners
Share-based payments
—
—
169
138
—
—
169
138
—
—
169
138
Dividends
—
—
—
—
(1,192)
(1,085)
(1,192)
(1,085)
(74)
(154)
(1,266)
(1,239)
Share issues
40
34
—
—
—
—
40
34
—
—
40
34
Acquisition of CSL Vifor
—
—
—
(7)
—
7
—
—
—
2,144
—
2,144
As at the end of the
year
557
517
794
648
16,012
14,621 17,363
15,786
2,038
2,040 19,401
17,826
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
108
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2024
108
Limited Annual Report 2023/24
Consolidated Entity
2024
2023
Notes
US$m
US$m
Cash Flows from Operating Activities
Profit before income tax expense
3,375
2,663
Adjustments for:
Depreciation and amortisation
938
831
Inventory provisions
177
182
Share-based payment expense
169
139
Provision for expected credit losses
4
(4)
Finance costs, net
437
406
Gain on disposal of property, plant and equipment
(2)
(57)
Contingent consideration liabilities reversal
(29)
(32)
Unrealised foreign exchange losses
53
41
Changes in operating assets and liabilities:
(Increase)/decrease in receivables and contract assets
(766)
28
Increase in inventories
(780)
(907)
Increase in trade and other payables
445
197
(Decrease)/increase in provisions and other liabilities
(41)
51
Income tax paid
(784)
(563)
Finance costs, net paid
(432)
(374)
Net cash inflow from operating activities
2,764
2,601
Cash flows from Investing Activities
Payments for property, plant and equipment
(849)
(1,228)
Proceeds from sale of property, plant and equipment
2
111
Payments for intangible assets
(409)
(464)
Payments for business acquisition, net of cash acquired
—
(10,534)
(Payments)/proceeds from financial assets
(3)
272
Net cash outflow from investing activities
(1,259)
(11,843)
Cash flows from Financing Activities
Proceeds from issue of shares
40
34
Dividends paid to CSL Limited shareholders
9
(1,192)
(1,085)
Dividends paid to non-controlling interests
21
(74)
(154)
Proceeds from borrowings
2,058
2,539
Repayment of borrowings
(2,017)
(798)
Principal payments of lease liabilities
(99)
(80)
Net cash (outflow)/inflow from financing activities
(1,284)
456
Net increase/(decrease) in cash and cash equivalents
221
(8,786)
Cash and cash equivalents at the beginning of the financial year
1,509
10,334
Exchange rate variations on foreign cash and cash equivalent balances
(87)
(39)
Cash and cash equivalents at the end of the year
1,643
1,509
Reconciliation of cash and cash equivalents in the statement of cash flows:
Cash and cash equivalents
1,657
1,548
Bank overdrafts
(14)
(39)
Cash and cash equivalents at the end of the year
1,643
1,509
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.
109
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2024
109
Contents
About this Report
110
Notes to the financial statements:
110
Our Current Performance
112
Note 1: Segment Information
112
Note 2: Revenue and Expenses
115
Note 3: Tax
117
Note 4: Inventories
119
Note 5: People Costs
119
Our Future
122
Note 6: Research and Development
122
Note 7: Intangible Assets
122
Note 8: Property, Plant and Equipment
124
Returns, Risk & Capital Management
125
Note 9: Shareholder Returns
125
Note 10: Financial Risk Management
126
Note 11: Equity and Reserves
132
Note 12: Commitments and Contingencies
133
Efficiency of Operation
134
Note 13: Receivables, Contract Assets and Payables
134
Note 14: Provisions
135
Other Notes
136
Note 15: Related Party Transactions
136
Note 16: Detailed Information - People Costs
137
Note 17: Detailed Information - Shareholder Returns
141
Note 18: Auditor Remuneration
141
Note 19: Deed of Cross Guarantee
142
Note 20: Parent Entity Information
144
Note 21: Non-Controlling Interests
144
Note 22: Subsequent Events
145
Note 23: Amendments to Accounting Standards and
Interpretations
145
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 12 August 2024.
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 also 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 2024. 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 15. The consolidated financial statements
also includes the results of entities held for sale. Further details
are contained in Note 15.
Where the Group's interest in a subsidiary is less than 100%,
the interest attributable to outside shareholders is reflected in
non-controlling interest. 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 21.
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 scheme. This trust is consolidated
as it is controlled by the Group.
110
Notes to the Financial Statements
For the Year Ended 30 June 2024
110
Limited Annual Report 2023/24
c. Foreign currency
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. Any exchange
differences arising from the translation of a foreign operation
previously recognised in other comprehensive income are not
reclassified from equity to the profit or loss until the disposal of
the operation.
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.
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 or loss is
translated at average exchange rates. All resulting exchange
differences are recognised in other comprehensive income
(OCI) and in the foreign currency translation reserve (FCTR)
in equity.
d. Material accounting policies
Material 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.
There were no material changes in accounting policies during
the year ended 30 June 2024, nor did the introduction of new
accounting standards lead to any change in measurement or
disclosure in these financial statements.
The Group continues to apply the mandatory temporary
exemption regarding the recognition of deferred tax assets
and liabilities related to Pillar Two and Domestic Minimum Tax
income taxes in accordance with AASB 2023-2 Amendments
to Australian Accounting Standards – International Tax Reform
– Pillar Two Model Rules. Further details related to Pillar Two
are contained in Note 3.
The Group has not adopted any accounting standards that are
issued but not yet effective.
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:
Revenue and Expenses
Page 115
Note 3:
Tax
Page 117
Note 4:
Inventories
Page 119
Note 5:
People Costs
Page 119
Note 7:
Intangible Assets
Page 122
Note 10:
Financial Risk Management
Page 126
Note 12
Commitments and Contingencies
Page 133
Note 13:
Receivables, Contract Assets and
Payables
Page 134
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 2024, this may change in future periods as the
Group regularly updates its assessment of the impact of the
lower carbon economy.
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.
111
111
Our 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 how the CEO who is the chief operating decision-maker (CODM) monitors and
assesses business performance to make resource allocation decisions. The operating segments are measured based on the
segment operating result, being the revenues and costs directly under the control of the business unit.
Segment information is presented to the CODM based on the operating performance of the business units and centralised
functions, which has been adjusted to exclude impairment and amortisation of acquired intellectual property (IP), business
acquisition and integration costs and the unwind of the inventory fair value uplift resulting from business acquisitions. Results
related to the Groups centrally managed functions that are not directly attributable to a segment, impairment and amortisation
of acquired IP, business acquisition related costs, tax and net finance costs are not allocated to segments.
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 acquired CSL Vifor in August 2022 and therefore, the prior year segment results of CSL Vifor do not represent a full
twelve-month period.
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.
112
Notes to the Financial Statements
112
Limited Annual Report 2023/24
Segment information has been adjusted to exclude impairment and amortisation of acquired intellectual property (IP), business
acquisition and integration costs and the unwind of the inventory fair value uplift resulting from business acquisitions. NPATA
represents the statutory net profit after tax before impairment and amortisation of acquired IP, business acquisition and
integration costs and the unwind of the inventory fair value uplift. Refer to the next page for the reconciliation between the
segment information and statutory results.
CSL Behring
CSL Seqirus
CSL Vifor
Consolidated
Entity
US$m
2024
2023
2024
2023
2024
2023
2024
2023
Sales and service revenue
10,334
8,968
1,896
1,851
2,029
1,957
14,259
12,776
Influenza pandemic facility reservation fees
—
—
172
156
—
—
172
156
Royalty and license revenue
235
215
—
—
24
27
259
242
Other income
39
107
60
24
11
5
110
136
Total segment revenue
10,608
9,290
2,128
2,031
2,064
1,989
14,800
13,310
Segment gross profit
5,275
4,561
1,318
1,259
1,413
1,411
8,006
7,231
Segment gross profit %
49.7%
49.1%
61.9%
62.0%
68.5%
70.9 %
54.1%
54.3%
Selling and marketing expenses
(903)
(804)
(196)
(187)
(457)
(490)
(1,556)
(1,481)
Segment operating result
4,372
3,757
1,122
1,072
956
921
6,450
5,750
Segment operating result %
41.2%
40.4%
52.7%
52.8%
46.3%
46.3 %
43.6%
43.2%
Research and development expenses
(1,428)
(1,266)
General and administrative expenses
(825)
(827)
Underlying EBIT
4,197
3,657
Finance costs
(476)
(444)
Finance income
39
38
Profit before tax
3,760
3,251
Income tax expense
(722)
(504)
NPATA
3,038
2,747
- Attributable to equity holders of CSL
2,907
2,610
- Attributable to non-controlling interests
131
137
Underlying EBIT
4,197
3,657
Unwind of CSL Vifor inventory fair value uplift
(30)
(169)
CSL Vifor acquisition and integration costs
(54)
(184)
Amortisation of other intangibles (excluding IP)1
5
3
16
14
7
9
109
106
Depreciation1
337
273
60
60
25
24
528
490
EBITDA2
4,714
4,033
1,198
1,146
988
954
4,750
3,900
Certain comparative amounts have been reclassified in order to be consistent with the current year's presentation. The overall impact of such
reclassifications had no impact on net profit.
113
1
Depreciation and amortisation expenses (excluding IP) of $187m (2023: $213m) relate to non-segment expenditure and are not allocated to segments.
2 The Group's EBITDA of $4,750m (2023: $3,900m) represents statutory operating profit (EBIT) of $3,812m (2023: $3,069m) as reported in the consolidated
income statement adding back total depreciation and amortisation expense of $938m (2023: $831m) (Note 2). The Group's EBITDA includes $2,150m (2023:
$2,233m) of costs that are not allocated to segments. The costs are primarily attributable to centralised activities being R&D and general and
administration.
113
Note 1: Segment Information continued
The table reconciles statutory results for key line items to the segment report.
Statutory
results
Impairment
and
amortisation of
acquired IP
Unwind of CSL
Vifor inventory
fair value uplift
CSL Vifor
acquisition and
integration
costs
Tax impacts of
the
adjustments
Segment
results
Year ended 30 June
(US$m)
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Gross profit
7,671
6,825
301
235
30
169
4
2
—
— 8,006
7,231
Selling and marketing
expenses
(1,573)
(1,481)
—
—
—
—
17
—
—
—
(1,556)
(1,481)
Research and
development
expenses
(1,430)
(1,269)
—
—
—
—
2
3
—
— (1,428)
(1,266)
General and
administrative
expenses
(856) (1,006)
—
—
—
—
31
179
—
—
(825)
(827)
EBIT/Underlying EBIT
3,812
3,069
301
235
30
169
54
184
—
—
4,197
3,657
Profit before tax
3,375
2,663
301
235
30
169
54
184
—
—
3,760
3,251
NPAT/NPATA
2,714
2,244
301
235
30
169
54
184
(61)
(85)
3,038
2,747
– NPAT/NPATA
attributable to CSL
shareholders
2,642
2,194
241
181
20
122
54
184
(50)
(71)
2,907
2,610
– NPAT/NPATA
attributable to non-
controlling interests
72
50
60
54
10
47
—
—
(11)
(14)
131
137
Basic earnings per
share/NPATA per
share (US$)
5.47
4.55
0.50
0.38
0.04
0.25
0.11
0.38
(0.10)
(0.15)
6.02
5.41
Certain comparative amounts have been reclassified in order to be consistent with the current year's presentation. The overall impact of such
reclassifications had no impact on net profit.
Segment assets and liabilities
CSL Behring
CSL Seqirus
CSL Vifor
Consolidated
Entity
US$m
US$m
US$m
US$m
2024
2023
2024
2023
2024
2023
2024
2023
Segment assets
23,635
22,026
4,403
3,980
9,984
10,228
38,022
36,234
Segment liabilities
15,373
14,903
1,415
1,384
1,833
2,121
18,621
18,408
Segment assets and liabilities disclosed above exclude intercompany receivables, payables and investments in subsidiaries
which have been eliminated.
Other segment information
Cash payments for property, plant and
equipment (PPE)
615
869
212
326
22
33
849
1,228
Cash payments for intangibles
165
83
156
292
88
89
409
464
Cash payments for PPE during the year ended 30 June 2024 includes investment made into the new cell-based influenza
vaccine manufacturing facility in Tullamarine, Australia and continued investment in the Group's R&D facilities including in
Marburg, Germany and Waltham, United States. Further, cash payments for intangibles during the year ended 30 June 2024
includes development milestones paid in connection with the Group's licensing arrangements including with Arcturus
Therapeutics Holdings Inc and uniQure.
114
Notes to the Financial Statements
114
Limited Annual Report 2023/24
Geographical areas of operation
The Group operates predominantly in Australia, the USA, Germany, the United Kingdom, Switzerland and China (including Hong
Kong). The rest of the Group’s operations are spread across many countries and are collectively disclosed as "Rest of World". Inter-
segment sales are carried out on an arm’s length basis.
Geographic
areas
Australia
United
States
Germany
UK
Switzerland
China and
Hong Kong
Rest of
World
Total
US$m
US$m
US$m
US$m
US$m
US$m
US$m
US$m
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Total operating
revenue
900 1,045 7,294 6,563 873 869 744
717
318
488 747
779 3,924 2,849 14,800 13,310
PPE, right-of-use
assets and
intangible assets
(excluding
goodwill)
2,147 1,918 4,350 4,284 1,309 1,273 332
329 9,420 9,478
17
80 350
357 17,925 17,719
Note 2: 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 are 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.
Royalties: Revenue from licensees of CSL intellectual property (included within 'other' revenue in the product and service table
below) reflect a right to use the intellectual property as it exists at the point in time in which the license 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 (included within 'other' revenue in the product and service
table below) reflects the transfer of a right to use the intellectual property as it exists at the point in time in which the license 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 (included within 'pandemic' revenue in the product
and service table below) 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.
115
115
Note 2: Revenue and Expenses continued
The table below shows a summary of the Group's operating revenue by product or service category:
Revenue
2024
2023
US$m
US$m
CSL Behring
Immunoglobulins
5,666
4,675
Albumin
1,209
1,109
Haemophilia
1,313
1,193
Specialty
1,940
1,831
Other
441
375
CSL Seqirus
Egg based vaccines
140
148
Cell culture vaccines
535
599
Adjuvanted egg based vaccines
1,040
893
Pandemic
172
156
Other (including in-license)
181
211
CSL Vifor
Iron
1,018
1,009
Nephrology - Dialysis
786
771
Nephrology - Non-Dialysis
200
136
Other
49
68
Total revenue from contracts with customers
14,690
13,174
Other income
110
136
Total operating revenue
14,800
13,310
Recognition and measurement of expenses
The table below shows a summary of the Group's operating expenses by category:
Expenses
2024
2023
US$m
US$m
Borrowing costs
422
374
Lease interest expense
56
36
Foreign exchange (gains)/losses on debt
(2)
22
Fair value losses on financial assets
—
12
Total finance costs
476
444
Depreciation of property, plant and equipment (PPE) and right-of-use assets
528
490
Amortisation of acquired intellectual property (IP)
301
235
Amortisation of other intangibles (excluding acquired IP)
109
106
Total depreciation and amortisation
938
831
Write-down of inventory
177
182
Employee benefits expense
3,735
3,513
Foreign exchange losses
44
127
Expenses includes finance costs which represents interest expense and borrowing costs. 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 2024
was $79m (2023: $61m). Any difference between borrowing proceeds (net of transaction costs) and the redemption value is
recognised in the statement of comprehensive income using the effective interest rate method.
Unrealised foreign exchange (gains)/losses on debt is principally related to the Group's EUR and CHF senior unsecured notes in
the US Private Placement market.
Fair value losses on financial assets primarily relates to the Group's investments in venture funds measured at fair value through
the profit or loss (Note 10(e)). The resulting changes in fair value are recognised directly to the profit or loss within finance costs at
each reporting period.
Foreign exchange losses (excluding foreign exchange (gains)/losses on debt) are recorded net within administration expenses in
the statement of comprehensive income.
116
Notes to the Financial Statements
116
Limited Annual Report 2023/24
Note 3: Tax
2024
2023
US$m
US$m
a.
Income tax expense recognised in the statement of comprehensive income
Current tax expense
Current year
584
648
Deferred tax expense/(recovery)
Origination and reversal of temporary differences
57
(209)
Total deferred tax expense/(recovery)
57
(209)
Under/(over) provision in prior year
20
(20)
Income tax expense
661
419
b.
Reconciliation between tax expense and pre-tax net profit
Accounting profit before income tax
3,375
2,663
Income tax calculated at 30% (2023: 30%)
1,013
799
Effects of different rates of tax on overseas income
(387)
(282)
Research and development incentives
(67)
(74)
Under/(over) provision in prior year
20
(20)
Revaluation of deferred tax balances
(3)
23
Other non-deductible expenses/(non-assessable revenue)
85
(27)
Income tax expense
661
419
c.
Income tax recognised directly in equity
Share-based payments
—
1
Income tax benefit recognised in equity
—
1
d.
Deferred tax assets and liabilities
Deferred tax assets
911
902
Deferred tax liabilities
(1,514)
(1,464)
Net deferred tax liabilities
(603)
(562)
The composition of the Group’s net deferred tax assets and liabilities are attributable to:
Inventories
148
326
Property, plant and equipment
(425)
(405)
Intangible assets
(875)
(1,006)
Trade and other payables
143
124
Recognised carry-forward tax losses
190
213
Retirement liabilities, net
56
41
Receivables and contract assets
(5)
(3)
Interest-bearing liabilities
56
64
Provisions and other liabilities
63
61
Other
46
23
Net deferred tax liabilities
(603)
(562)
e.
Movement in net deferred tax liability during the year
Opening balance
(562)
(152)
Net deferred tax liabilities recognised on acquisition of CSL Vifor
—
(658)
(Charged)/credited to profit or loss
(57)
237
Charged to OCI
16
(17)
Credited to equity
—
28
Closing balance
(603)
(562)
117
117
Note 3: 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 and carried forward unused tax losses, only if it is probable that taxable profit will be available to
utilise them.
The carrying amount of deferred 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. As at 30 June 2024, $278m in deferred tax assets have not been
recognised with respect to tax losses with expiry dates not yet lapsed.
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 tax asset is realised or when the deferred tax liability is settled.
The Group continues to apply the mandatory temporary exemption regarding the recognition of deferred tax assets and
liabilities related to Pillar Two and Domestic Minimum Tax incomes taxes in accordance with AASB 2023-2 Amendments to
Australian Accounting Standards International Tax Reform – Pillar Two Model Rules.
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.
International Tax Reform – Pillar Two Model Rules
The Organisation for Economic Co-Operation and Development (OECD) published the Pillar Two Model Rules in December 2021,
which are designed to ensure large multinational enterprises pay a minimum level of tax on the income arising in each of the
jurisdictions where they operate by ensuring that each country has a tax rate of at least 15%.
A number of countries in which the Group operates has implemented or announced the proposed implementation of Pillar Two
rules, including the Australian Government which released draft Pillar Two legislation on 21 March 2024. The Pillar Two legislation
will apply to the Group from 1 July 2024. As a result, there is no tax impact for the year ended 30 June 2024.
Work has commenced to evaluate the potential future impact of the Pillar Two legislation on the Group. Based on this analysis as
at the reporting date, and having regard to available historical and reasonably estimable data, Pillar Two is not anticipated to
have a material impact on the current tax expense of the Group from 1 July 2024.
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. This includes matters such as the availability and
timing of tax deductions and the application of the arm’s length principle to related party transactions, that 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 deferred taxes will be recorded as a credit or charge
to the statement of comprehensive income.
118
Notes to the Financial Statements
118
Limited Annual Report 2023/24
Note 4: Inventories
2024
2023
US$m
US$m
Raw materials
1,785
1,592
Work in progress
2,426
2,119
Finished goods
1,753
1,755
Total inventories
5,964
5,466
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 Goods
Finished goods comprise material that is ready for sale and
has passed all quality control tests.
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 good.
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.
Note 5: 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 2024 – US$3,735m
People Cost 2023 – US$3,513m
119
Salaries and wages
$3,444m
Defined benefit plan expense
$61m
Defined contribution plan expense
$61m
Equity settled share-based payments expense (LTI) $169m
Salaries and wages
$3,265m
Defined benefit plan expense
$55m
Defined contribution plan expense
$54m
Equity settled share-based payments expense (LTI) $139m
119
Note 5: People Costs continued
Salaries and wages
Salaries and wages include non-monetary benefits, annual leave and long service leave. These are recognised and presented in
different ways in the financial statements:
•
The liability for annual leave and the portion of long service leave to be paid within twelve months is measured at the amount
expected to be paid and is included in the current provision for employee benefits.
•
The liability for long service leave and annual leave to be paid after one year is measured as the present value of expected
future payments to be made and is included in the non-current provision for employee benefits.
Defined benefit plans
2024
2023
US$m
US$m
Expenses recognised in the statement of comprehensive income are as follows:
Current service costs
59
51
Net interest cost
2
4
Past service costs
—
—
Total included in employee benefits expense
61
55
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 the expected future payments required to settle the obligation at the reporting date, which is
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 16(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
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 2024 was $61m (2023: $54m).
Equity settled share-based payment expense
Share-based payment expenses arise from plans that award long-term incentives (LTI). Detailed information about the terms
and conditions of the share-based payment arrangements is presented in Note 16(b).
Outstanding share-based payment equity instruments
The number and weighted average exercise price for each share-based payment plan outstanding is as follows. All plans are
settled by physical delivery of shares at the time of vesting date except for instruments that may be settled in cash at the
discretion of the Board.
120
Notes to the Financial Statements
120
Limited Annual Report 2023/24
Retain and Grow Plan
(RGP)
Executive
Performance and
Alignment Plan (EPA)
Non-Executive
Director Plan (NED)
Global Employee
Share Plan (GESP)
Total
Number
Weighted
average
exercise
price (A$)
Number
Weighted
average
exercise
price (A$)
Number
Weighted
average
exercise
price (A$)
Number
Weighted
average
exercise
price (A$)
Number
Outstanding at the
beginning of the
year
1,337,897
—
490,898
—
1,566
—
142,953
236.55
1,973,314
Granted during
year
942,842
—
252,564
—
3,264
—
262,950
234.23
1,461,620
Exercised during
year
(583,105)
—
(28,883)
—
(3,101)
—
(271,480)
229.21
(886,569)
Cash settled
during year
(763)
—
—
—
—
—
—
—
(763)
Forfeited during
year
(109,774)
—
(131,655)
—
(137)
—
—
—
(241,566)
GESP true-up
—
—
—
—
—
—
(3,933)
236.55
(3,933)
Closing balance at
the end of the
year
1,587,097
—
582,924
—
1,592
—
130,490
238.83 2,302,103
The share price at the dates of exercise (expressed as a weighted average) by equity instrument type, is as follows:
2024
2023
RGP
A$269.40
A$295.73
EPA
A$269.09
A$295.99
NED
A$274.48
A$296.74
GESP
A$277.98
A$293.98
(b) Key Management Personnel Disclosures
The remuneration of key management personnel is in Section 15 of the Directors’ Report and has been audited.
Total compensation for key management personnel
2024
2023
US$
US$
Total of short term remuneration elements
9,092,275
8,849,461
Total of post-employment elements
357,797
342,883
Total of other long term elements
22,205
21,242
Total share-based payments
8,634,867
5,217,940
Total of all remuneration elements
18,107,144
14,431,526
121
121
Our Future
Note 6: 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. For the year ended 30 June 2024, research and development costs
recognised in the statement of comprehensive income were $1,430m (2023: $1,269m).
Note 7: Intangible Assets
Goodwill
Intellectual
property and other
intangible assets
Software
Intangible work in
progress
Total
US$m
US$m
US$m
US$m
US$m
Year
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Cost
8,079
8,079
8,465
8,379
924
833
120
193
17,588
17,484
Accumulated amortisation
—
—
(650)
(558)
(592)
(480)
—
—
(1,242)
(1,038)
Net carrying amount
8,079
8,079
7,815
7,821
332
353
120
193
16,346
16,446
Net carrying amount at the
beginning of the year
8,079
1,187
7,821
943
353
388
193
120 16,446
2,638
Additions
—
—
298
452
10
15
10
76
318
543
Acquisition of CSL Vifor
—
6,892
—
6,660
—
32
—
14
—
13,598
Transfers
—
—
—
—
83
19
(82)
(19)
1
—
Disposals
—
—
—
—
(4)
—
—
—
(4)
—
Amortisation for the year
—
—
(301)
(235)
(109)
(106)
—
—
(410)
(341)
Transferred to assets held
for sale (Note 15)
—
—
(6)
—
—
—
—
—
(6)
—
Currency translation
differences
—
—
3
1
(1)
5
(1)
2
1
8
Net carrying amount at
the end of the year
8,079
8,079
7,815
7,821
332
353
120
193
16,346
16,446
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. Goodwill is initially allocated to a group of cash-generating units but is monitored at the segment
(business unit) level. 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
testing 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 2024 (2023: Nil). A change in assumptions significant enough
to lead to impairment is not considered a reasonable possibility. The aggregate carrying amounts of goodwill by segment are
as follows:
2024
2023
US$m
US$m
CSL Behring
5,468
5,468
CSL Seqirus
911
911
CSL Vifor
1,700
1,700
Closing balance of goodwill as at 30 June
8,079
8,079
Intellectual property
Intellectual property (IP) 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.
122
Notes to the Financial Statements
122
Limited Annual Report 2023/24
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 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 liabilities
is recognised in finance costs.
Software
Costs incurred in developing or acquiring software licenses
and information systems that contribute future financial
benefits are capitalised. These include external direct costs of
materials and service and payroll 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.
Amortisation of intangible assets
The useful lives of intangible assets are assessed to be either
finite or indefinite. 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.
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 9.8% (2023: 9.4%)
which is calculated with reference to external analyst views, long-term government bond rates and long-term 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.
123
123
Note 8: Property, Plant and Equipment
Land
Buildings
Leasehold
improvements
Plant and
Equipment
Right-of-use
assets
Capital work
in progress
Total
US$m
US$m
US$m
US$m
US$m
US$m
US$m
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Cost
65
65 2,376 2,284
685
666
5,274 4,900 2,164 2,134 2,981 2,771 13,545 12,820
Accumulated
depreciation
—
— (359)
(305)
(239)
(206) (2,635) (2,378) (654)
(579)
—
— (3,887) (3,468)
Net carrying amount
65
65 2,017 1,979
446
460
2,639 2,522 1,510 1,555 2,981 2,771 9,658 9,352
Net carrying amount
at the start of the
year
65
36 1,979
1,522
460
415
2,522 1,962 1,555 1,292 2,771 3,082 9,352 8,309
Transfers
—
—
124
502
25
79
469
789
—
—
(618) (1,370)
—
—
Additions
—
—
—
10
—
1
9
24
67
372
830 1,065
906 1,472
Acquisition of CSL
Vifor
—
42
—
48
—
3
—
68
—
40
—
18
—
219
Disposals
—
(13)
—
(31)
—
(9)
(21)
(11)
—
(26)
—
—
(21)
(90)
Depreciation for the
year
—
—
(63)
(61)
(35)
(30)
(323)
(297)
(107)
(102)
—
— (528) (490)
Transferred to assets
held for sale (Note 15)
—
—
(23)
—
(3)
—
(20)
—
(3)
—
(4)
—
(53)
—
Currency translation
differences
—
—
—
(11)
(1)
1
3
(13)
(2)
(21)
2
(24)
2
(68)
Net carrying
amount at the end
of the year
65
65 2,017 1,979
446
460
2,639 2,522 1,510 1,555 2,981 2,771 9,658 9,352
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.
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.
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.
Right-of-use assets
The Group principally has leases for plasma centres, office
buildings, land, manufacturing facilities and warehouses.
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. Further details about the Group's leases
are contained in Note 10(d).
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 $434m as at 30 June 2024 (2023: $448m).
124
Notes to the Financial Statements
124
Limited Annual Report 2023/24
Returns, Risk & Capital Management
Note 9: 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 20). During the year, the parent entity reported profits of $448m (2023: $931m). The parent entity’s retained
earnings as at 30 June 2024 were $5,424m (2023: $6,169m). During the financial year $1,192m was distributed to shareholders by
way of a dividend, with a further $701m being determined as a dividend payable subsequent to the balance date.
2024
2023
Dividend Paid to CSL Limited shareholders
US$m
US$m
Final ordinary dividend of US$1.29 per share, 10% franked at 30% tax rate, paid on 4 October 2023 for FY23
(prior year: US$1.18 per share, 10% franked at 30% tax rate, paid on 5 October 2022 for FY22)
623
569
Interim ordinary dividend of US$1.19 per share, unfranked, paid on 3 April 2024 for FY24 (prior year:
US$1.07 per share, unfranked, paid on 5 April 2023 for FY23)
569
516
Total dividends paid to CSL Limited shareholders
1,192
1,085
Dividend determined, but not paid at year end to CSL Limited shareholders:
Final ordinary dividend of US$1.45 per share, unfranked, expected to be paid on 2 October 2024 for FY24,
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$1.29 per share, 10% franked at
30% tax rate, paid on 4 October 2023 for FY23)
701
622
The distribution in respect of the 2024 financial year represents a US$2.64 dividend for FY24 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
$2,642m (2023: $2,194m). Diluted EPS differs from Basic EPS as the calculation takes into account potential ordinary shares
arising from employee share plans operated by the Group.
2024
2023
Basic EPS
US$5.47
US$4.55
Weighted average number of ordinary shares
483,010,851
482,173,148
Diluted EPS
US$5.45
US$4.53
Adjusted weighted average number of ordinary shares, represented by:
485,199,307 483,886,450
Weighted average number of ordinary shares
483,010,851
482,173,148
Plus:
Employee Share Plans (Note 5 and 16)
2,188,456
1,713,302
(c) Contributed Equity
The following table illustrates the movement in the Group’s contributed equity. Refer to Note 11 for further details.
2024
2023
Number of shares
US$m
Number of shares
US$m
Opening balance
482,369,261
517
481,706,266
483
New shares issued to employees (Note 5 and 16):
Retain and Grow Plan (for nil consideration)
583,105
—
384,054
—
Executive Performance & Alignment Plan (for nil
consideration)
28,883
—
68,052
—
Global Employee Share Plan (GESP)
271,480
40
210,889
34
Closing balance
483,252,729
557
482,369,261
517
125
125
Note 10: 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.
The primary risks these give rise to are:
•
Foreign exchange risk
•
Interest rate risk
•
Credit risk
•
Funding and liquidity risk
•
Capital management risk
Source of Risk
Risk Mitigation
a. Foreign Exchange Risk
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 receivables by
denominating external borrowings in currencies that match the
currencies of its receivables.
Additionally, the Group from time to time enters into non-recourse
receivable factoring arrangements with non-US dollar high quality
counterparties in mitigating foreign exchange fluctuations for
certain currencies.
b. Interest Rate Risk
The Group is exposed to interest rate risk through its primary
financial assets and liabilities.
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. As at 30 June 2024,
approximately 78% of the Group's debt was at fixed interest rates
(2023: 70%). If necessary, CSL also hedges interest rate risk using
derivative instruments. As at 30 June 2024 and 2023, there were no
material outstanding derivative financial instruments hedging
interest rate risks.
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 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.
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.
The Group mitigates funding and liquidity risks by ensuring that:
•
The Group has sufficient funds on hand to achieve its working
capital and investment objectives
•
The Group focuses on improving operational cash flow and
maintaining a strong balance sheet
•
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.
126
Notes to the Financial Statements
126
Limited Annual Report 2023/24
Risk management approach
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. There
are no material outstanding foreign exchange forward
contracts at 30 June 2024 and 2023.
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 its functional currency 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 2024
and 2023 by 1% and applying these adjusted rates to the net
monetary assets/liabilities denominated in non-functional
currency of various Group entities. Amounts shown are
rounded to the nearest US$m.
FX Sensitivity on Profit after tax (US$m)
In management’s opinion, the above sensitivity analysis is not
representative of all the inherent foreign exchange risk as the
year end exposure does not reflect the exposure during the
year. The movement in the foreign exchange rates could vary
from the sensitivity rate used. Further, the Group is exposed to
foreign exchange volatility in emerging markets, such as
Argentina, Turkey and Mexico.
Equity – sensitivity to general movement of 1%
Where the functional currency of a subsidiary is not US dollars,
the subsidiary’s assets and liabilities are translated on
consolidation to US dollars using the exchange rates
prevailing at the reporting date, and its profit or loss is
translated at average exchange rates. All resulting exchange
differences are recognised in the FCTR in equity. The following
chart is based on decreasing the actual exchange rate of
US dollars to AUD, EUR, CHF, GBP and CNY as at 30 June 2024
and 2023 by 1% and applying these adjusted rates to the net
assets/liabilities (excluding investments in subsidiaries) of
the foreign currency denominated financial statements of
various Group entities. Amounts shown are rounded to the
nearest US$m.
FX Sensitivity on Equity (US$m)
b. Interest Rate Risk
As at 30 June 2024, 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
$12m (2023: $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 2024, 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 $16m (2023: $22m).
This calculation is based on applying a 1% movement to the
total of the Group’s floating rate unsecured bank loans
(excluding bank overdrafts) at year end.
127
10
5
0
20
15
-5
AUD
CNY
GBP
CHF
EUR
2024
2023
10
5
0
20
15
-5
AUD
CNY
GBP
CHF
EUR
2024
2023
127
Note 10: Financial Risk Management continued
c. Credit Risk
The Group only invests its cash and cash equivalent financial assets with financial institutions having a credit rating of at least
‘BBB+’ or better, as assessed by independent rating agencies.
Floating Rate3
Non-Interest
Bearing
Total
Average Closing
Interest Rate
US$m
US$m
US$m
%
2024
2023
2024
2023
2024
2023
2024
2023
Financial assets and contract assets
Cash and cash equivalents
1,657
1,548
—
—
1,657
1,548
3.8 %
2.2 %
Receivables and contract assets (excluding
prepayments)
—
—
2,799
2,001
2,799
2,001
—
—
Other financial assets
—
—
163
173
163
173
—
—
1,657
1,548
2,962
2,174
4,619
3,722
As at 30 June 2024, cash and cash equivalents includes $772m (2023: $552m) in cash deposits.
Credit quality of financial assets
30 June 2024 (US$m)
30 June 2023 (US$m)
Government or government-backed entities (such as hospitals) often account for a significant proportion of trade receivables.
As a result, the Group carries receivables from a number of Southern European governments. The credit risk associated with
trading in these countries is considered on a country-by-country basis and the Group’s trading strategy is adjusted accordingly.
The factors taken into account in determining the credit risk of a particular country include recent trading experience, current
economic and political conditions and the likelihood of continuing support from agencies such as the European Central Bank.
The following table analyses trade receivables and contract assets that are past due and, where required, the associated provision
for expected credit losses (Note 13). All other financial assets are less than 30 days overdue.
Gross
Provision
Net
2024
2023
2024
2023
2024
2023
Trade receivables and contract assets
US$m
US$m
US$m
US$m
US$m
US$m
Current
2,013
1,468
(5)
(5)
2,008
1,463
Less than 30 days overdue
107
55
(1)
—
106
55
Between 30 and 90 days overdue
87
38
—
—
87
38
More than 90 days overdue
81
51
(10)
(7)
71
44
2,288
1,612
(16)
(12)
2,272
1,600
128
Notes to the Financial Statements
3
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.
Financial Institutions
$1,657m
Governments
$350m
Hospitals
$272m
Buying Groups
$1,173m
Publicly traded securities
$12m
Venture fund assets
$126m
Other
$1,029m
Financial Institutions
$1,548m
Governments
$291m
Hospitals
$306m
Buying Groups
$704m
Publicly traded securities
$30m
Venture fund assets
$118m
Other
$725m
128
Limited Annual Report 2023/24
d. Funding and Liquidity Risk
The following chart summarises the Group's maturity profile of debt on an undiscounted basis by facility (US$m).
The following table analyses the Group’s interest-bearing liabilities and borrowings:
2024
2023
Interest-bearing liabilities and borrowings
US$m
US$m
Current
Bank overdraft – unsecured
14
39
Bank borrowings – unsecured
571
563
Senior notes – unsecured
263
362
Lease liabilities
96
91
944
1,055
Non-current
Bank borrowings – unsecured
1,393
2,252
Senior notes – unsecured
3,076
3,351
Senior 144A notes - unsecured
5,202
3,961
Lease liabilities
1,568
1,608
11,239
11,172
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. 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.
During the year ended 30 June 2024, the group received $1,238m net proceeds in connection with its new senior 144a note
issuance. Proceeds from this issuance were unrestricted and used for the refinancing of existing debt and general corporate
purposes.
Lease liabilities
The Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate of the lessee at the lease
commencement date.
The lease payments include fixed payments (including in-substance fixed payments, extension and purchase option reasonably
certain to be exercised) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and
amounts expected to be paid under residual value guarantees.
129
2000
1500
1000
500
FY62
FY54
FY52
FY42
FY38
FY35
FY34
FY33
FY32
FY31
FY30
FY29
FY28
FY27
FY26
FY25
0
Private Placement
QDI
Bank Debt
144A
129
Note 10: Financial Risk Management continued
Subsequent to initial recognition, lease liabilities are measured at amortised cost. Lease liabilities are remeasured if there is a
modification, such as a change in the lease term, a change in the in-substance fixed lease payments or a change in the
assessment to purchase the underlying asset.
Contractual maturities of financial liabilities
The following table categorises the financial liabilities into relevant maturity periods, taking into account the remaining period at
the reporting date and the contractual maturity date. The weighted average contractual maturity date and interest rate of
interest bearing liabilities (excluding lease liabilities) as at 30 June 2024 is 11 years and 4.2% respectively (2023: 9 years and 4.1%).
The amounts disclosed represent principal and interest cash flows, so they may differ from the equivalent reported amounts in
the balance sheet.
Contractual payments due as at 30 June
1 year or less
Between 1
year and 5
years
Over 5 years
Total
Weighted
average
interest rate
US$m
US$m
US$m
US$m
%
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Trade and other payables (non-interest
bearing)
3,345
2,947
—
—
—
— 3,345
2,947
—
—
Bank overdraft – unsecured (floating rates)
14
39
—
—
—
—
14
39
—
—
Bank borrowings – unsecured (floating rates)
623
661
1,313
2,192
—
—
1,936
2,853
5.6%
5.5%
Bank borrowings – unsecured (fixed rates)
39
40
92
127
11
17
142
184
1.0%
1.0%
Senior notes – unsecured (floating rates)
31
13
514
518
—
—
545
531
6.2%
5.9%
Senior notes – unsecured (fixed rates)
337
450
1,501
1,602
1,419
1,660
3,257
3,712
2.8%
2.8%
Senior 144A notes – unsecured (fixed rates)
232
177
1,881
1,187
7,641
5,968 9,754
7,332
4.4%
4.1%
Lease liabilities (fixed rates)
96
105
314
309
1,254
1,296
1,664
1,710
3.7%
3.6%
4,717
4,432
5,615
5,935 10,325
8,941 20,657 19,308
Available debt facilities
As at 30 June 2024, the Group had the following available debt facilities (undiscounted and excludes bank overdrafts):
•
Revolving committed bank facilities totalling $1,844m, which included $1,786m in undrawn funds (2023: $1,604m which
included $1,551m in undrawn funds)
•
Bilateral credit facilities totalling $1,768m, fully drawn (2023: $2,500m fully drawn)
•
Senior unsecured notes in the the US private placement market totalling $2,845m (2023: $3,217m)
•
Senior unsecured notes in the 144A US private placement market totalling $5,250m (2023: $4,000m)
•
Senior unsecured notes in the Hong Kong market (QDI) totalling $500m (2023: $500m)
•
Commercial paper program totalling $750m undrawn (2023: $750m undrawn)
•
Other bank facilities totalling $138m (2023: $262m)
The Group is in compliance with all debt covenants as at 30 June 2024.
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 and cash equivalents
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 bank or financial institutions and investments in money
market instruments that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.
The carrying value of cash and cash equivalents equals fair value, due to the liquid nature of cash.
Receivables, contract assets and payables
Carrying value of receivables, contract assets and payables with a remaining life of less than one year is deemed to equal
fair value.
130
Notes to the Financial Statements
130
Limited Annual Report 2023/24
Other financial assets
Other financial assets include equity securities (publicly traded securities) carried at fair value through OCI (FVOCI) which are not
held for trading. The value of the publicly traded securities depends on the share price quoted on the corresponding stock
exchange.
The Group also has investments in venture funds which are not publicly traded and are 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.
Other financial assets also includes an earn-out receivable acquired from a past business combination. The earn-out will become
due based on a variety of factors including future earnings over a period of seven years ending 30 June 2028. The receivable is
classified as a financial asset and is remeasured at each reporting period at FVTPL.
Interest-bearing and other financial liabilities
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 2024, the total fixed rate debt (excluding lease liabilities) has a carrying amount of $8,180m (2023: $7,353m)
and a fair value of $7,571m (2023: $6,684m). 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.
Other financial liabilities also includes contingent consideration liabilities from past business combinations. These liabilities are
recorded as non-current financial liabilities at fair value (Note 13), which are then remeasured at each subsequent reporting date
at fair value through profit or 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.
As at 30 June 2024, the maximum amount of undiscounted potential future milestone payments relating to historical business
combinations are $470m (2023: $470m).
Key Judgements and Estimates
Contingent consideration liabilities are valued with reference to our judgement of the expected probability and timing of
potential future milestone payments, based upon level 3 inputs under the fair value hierarchy, which is then discounted to a
present value using appropriate discount rates with reference to the Group's incremental borrowing rates.
Valuation of financial instruments
Financial instruments measured and carried at fair value are categorised as follows:
•
Level 1: Items traded with quoted prices in active markets for identical liabilities
•
Level 2: Items with significantly observable inputs other than quoted prices in active markets
•
Level 3: Items with unobservable inputs (not based on observable market data)
The group had the following financial assets and liabilities measured at fair value:
2024
2023
Financial assets/(liabilities) measured at fair value
US$m
US$m
Publicly traded securities – FVOCI
Level 1
12
30
Venture fund assets – FVTPL
Level 3
126
118
Contingent consideration assets (earn-out receivable)
Level 3
25
25
Contingent consideration liabilities from business combinations
Level 3
(220)
(242)
There were no transfers between Level 1 and Level 2 during the year, or any transfers into Level 3.
131
131
Note 11: Equity and Reserves
(a) Contributed Equity
2024
2023
US$m
US$m
Ordinary shares issued and fully paid
5,062
5,022
Share buy-back reserve
(4,505)
(4,505)
Total contributed equity
557
517
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a
deduction, net of tax, from the proceeds. Where the Group reacquires its own shares, those shares are cancelled. No gain or loss
is recognised in the statement of comprehensive income and the consideration paid to acquire the shares, including transaction
costs net of income taxes is recognised directly as a reduction in equity.
Ordinary shares receive dividends as declared and, in the event of winding up the company, participate in the proceeds from the
sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder
to one vote, either in person or proxy, at a meeting of the company.
Share buy-backs were undertaken at higher prices than the original subscription prices which reduced the historical balance for
ordinary share contributed equity to nil. The share buy-back reserve was created to reflect the excess value of shares bought over
the original amount of subscribed capital. Information relating to changes in contributed equity is set out in Note 9.
(b) Movement in Reserves
Share-based
payments
reserve (i)
Foreign currency
translation
reserve (FCTR) (ii)
Hedge
reserve (iii)
Other
reserves (iv)
Total
US$m
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Opening balance
682
544
(98)
(81)
120
134
(56)
(7)
648
590
Share-based payment expense, net of tax
169
138
—
—
—
—
—
—
169
138
Exchange differences on translation of
foreign operations
—
—
(15)
(17)
—
—
—
—
(15)
(17)
Change in fair value of investments (FVOCI)
—
—
—
—
—
—
3
(42)
3
(42)
Reclassification to profit or loss
—
—
—
—
(11)
(14)
—
—
(11)
(14)
Acquisition of CSL Vifor
—
—
—
—
—
—
—
(7)
—
(7)
Closing balance
851
682
(113)
(98)
109
120
(53)
(56)
794
648
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 (FCTR)
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 or loss is translated at average exchange rates.
All resulting exchange differences are recognised in OCI and in the FCTR in equity.
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 or loss as appropriate.
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 10(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).
132
Notes to the Financial Statements
132
Limited Annual Report 2023/24
Note 12: Commitments and Contingencies
(a) Capital Commitments
Commitments in relation to capital expenditure contracted but not recognised in the consolidated balance sheet are payable
as follows:
Capital Commitments
2024
2023
US$m
US$m
Not later than one year
301
411
Later than one year but not later than five years
67
84
Total
368
495
(b) Contingent assets and liabilities
Litigation
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.
Contingent liabilities recognised in connection with past business combinations are recorded within provisions (Note 14) at the
higher of fair value and the amount recognised on acquisition date until the liability has been extinguished. Recognised
contingent liabilities recorded within the provisions as at 30 June 2024 includes outstanding liabilities assumed in connection
with the acquisition of Vifor Pharma.
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 where an outflow of economic benefits is considered
possible. A number of pending legal matters were identified from the historical acquisition of CSL Vifor, which include
matters relating to intellectual property, contractor, competitor and regulatory disputes 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.
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 $7,835m in the event each related product
reached its full commercial potential (2023: $7,952m). These amounts are undiscounted and are not risk-adjusted, which include
all such possible payments that can arise assuming all products currently in development are successful and all possible
performance objectives are met.
The Group also has certain take or pay arrangements with contract manufacturers or service providers which serve as
commercial manufacturers and suppliers for certain products. To the extent a commitment is determined to be onerous,
these are provided for within provisions in the consolidated balance sheet.
133
133
Efficiency of Operation
Note 13: Receivables, Contract Assets and Payables
(a) Receivables and contract assets
2024
2023
US$m
US$m
Trade receivables
2,086
1,424
Contract assets
202
188
Less: Provision for expected credit losses
(16)
(12)
Carrying amount of trade receivables and contract assets – current
2,272
1,600
Other receivables
369
305
Prepayments
254
309
Carrying amount of receivables and contract assets – current
2,895
2,214
Other receivables
158
96
Carrying amount of receivables and contract assets - non-current
158
96
Receivables are initially recorded at their transaction price and are generally due for settlement within 30 to 60 days from date of
invoice. Collectability is regularly reviewed at an operating unit level.
For trade receivables and contract assets, the Group recognises a provision for expected credit losses (ECL) based on a simplified
approach. The Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at
each reporting date. The Group has established a provision matrix that is based on historical credit loss experience, adjusted for
forward-looking factors specific to the debtors and economic environment. When a trade receivable for which a provision for ECL
has been recognised becomes uncollectible in a subsequent period, it is written off against the provision. The following table
illustrates the movement in the Group’s provision for expected credit losses.
The carrying amount of receivables and contract assets is a reasonable approximation of fair value. The maximum exposure to
credit risk at the reporting date is the carrying amount of each class of receivable disclosed above. Refer to Note 10 for more
information on the risk management policy of the Group and the credit quality of trade receivables.
2024
2023
US$m
US$m
Opening balance as at 1 July
12
17
Additional allowance / (allowance utilised/written back)
4
(5)
Closing balance at 30 June
16
12
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 10, 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 2024, receivables totalling $123m (2023: $286m) had been sold as part of the Group's non-recourse receivable
factoring arrangements. The receivables were derecognised upon sale as substantially all risks and rewards associated with the
receivables passed to the purchaser. These arrangements were transacted with non-US dollar high quality counterparties as part
of the Group's foreign exchange risk mitigation strategy (Note 10).
The completion of performance obligations often differs from contract payment schedules. A contract asset is initially recognised
for revenue earned from satisfying a performance obligation. However, the receipt of consideration is conditional upon the full
satisfaction of the performance obligation within the contract. Upon completing the full performance obligation, the amount
recognised as contract assets is reclassified to trade receivables. Contract liabilities (deferred revenue) represents amounts billed
in accordance with customer contracts, but where the Group had not yet provided a good or service. These amounts are
presented within trade and other payables (within accruals and other payables) and recognised as revenue when the Group
performs under the contract.
Other current receivables are recognised and carried at the nominal amount due upon an unconditional right to payment.
Non-current receivables are recognised and carried at amortised cost. They are non-interest bearing and have various
repayment terms.
134
Notes to the Financial Statements
134
Limited Annual Report 2023/24
(b) Trade and other payables
2024
2023
US$m
US$m
Trade payables
867
820
Accruals and other payables
2,478
2,127
Carrying amount of current trade and other payables
3,345
2,947
Accruals and other payables
230
251
Contingent consideration associated with business combinations (Note 10)
220
242
Carrying amount of other non-current liabilities
450
493
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.
Note 14: Provisions
Provisions are recognised when the Group has a present obligation, it is probable that an outflow of resources will be required to
settle the obligation and 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 of
Vifor Pharma relating to various claims and disputes with third parties in each case where there is a possible future financial
exposure, and involve an assessment of the likelihood of several scenarios in relation to those matters. During the year ended
30 June 2024, CSL Vifor settled some legacy Vifor Pharma disputes. These settlements were provided for as at 30 June 2023 as
part of the purchase price accounting for the Vifor Pharma acquisition. Management expects the settlement payments to be
made by the end of the next financial year. As such, these amounts are included in the reclassifications to current provisions at
30 June 2024.
Employee benefits
Other
Total
2024
2023
2024
2023
2024
2023
US$m
US$m
US$m
US$m
US$m
US$m
Current
Carrying amount at the start of the year
246
172
64
10
310
182
Utilised/transfers
(103)
(65)
(72)
(9)
(175)
(74)
Reclassified from non-current
—
—
273
—
273
—
Additions
69
126
—
4
69
130
Acquisition of CSL Vifor
—
11
—
67
—
78
Currency translation differences
1
2
(3)
(8)
(2)
(6)
Carrying amount at the end of the year
213
246
262
64
475
310
Non-current
Carrying amount at the start of the year
60
41
407
61
467
102
Utilised/transfers
(14)
(2)
11
(1)
(3)
(3)
Reclassified to current
—
—
(273)
—
(273)
—
Additions
6
6
—
1
6
7
Acquisition of CSL Vifor
—
9
—
347
—
356
Currency translation differences
—
6
(11)
(1)
(11)
5
Carrying amount at the end of the year
52
60
134
407
186
467
135
135
Other Notes
Note 15: Related Party Transactions
Related party transactions
The Group's related parties are predominately subsidiaries and key management personnel of the Group. Disclosures related to
key management personnel are set out in Section 15 of the Directors Report. Transactions between each parent company and its
subsidiaries are eliminated on consolidation and are not disclosed in this note. There were no other related party transactions in
the year ended 30 June 2024 (2023: Nil).
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. A full listing of controlled entities is outlined within the Group's consolidated entity disclosure
statement.
CSL Limited
Australia
Controlled entities (wholly owned) of CSL Limited:
CSL Innovation Pty Ltd
Australia
100 %
100 %
CSL Behring (Australia) Pty Ltd
Australia
100 %
100 %
CSL Behring (Holdings) Pty Ltd
Australia
100 %
100 %
CSL Finance Pty Ltd
Australia
100 %
100 %
Seqirus Pty Ltd
Australia
100 %
100 %
CSL Behring GmbH
Germany
100 %
100 %
CSL Behring AG
Switzerland
100 %
100 %
CSL Behring Lengnau AG
Switzerland
100 %
100 %
Vifor (International) AG
Switzerland
100 %
100 %
Vifor Pharma Participations AG
Switzerland
100 %
100 %
CSL Behring Holdings Limited
UK
100 %
100 %
CSL Finance Plc
UK
100 %
100 %
Seqirus UK Limited
UK
100 %
100 %
CSL Behring LLC
USA
100 %
100 %
CSL Plasma Inc.
USA
100 %
100 %
CSLB Holdings Inc.
USA
100 %
100 %
Seqirus USA Inc.
USA
100 %
100 %
Seqirus Inc.
USA
100 %
100 %
Controlled entities (not wholly owned) of CSL Limited:4
Vifor Fresenius Medical Care Renal Pharma AG
Switzerland
55 %
55 %
Entity name (all represent body corporate entities unless otherwise
specified)
Country of
Incorporation
Percentage owned (%)
2024
2023
Assets held for sale
A potential buyer has been identified for certain subsidiaries of the Group and negotiations as at the reporting date are at an
advanced stage. The divestment is expected to complete within a year from the balance sheet date, and their assets and
liabilities have been reclassified as held for sale and presented separately in the consolidated balance sheet at 30 June 2024. The
proceeds of disposal are expected to exceed the carrying amount of the related net assets and accordingly no impairment losses
have been recognised on the reclassification.
136
Notes to the Financial Statements
4
Represents a participating entity of a joint venture that is consolidated in the Group's consolidated financial information.
136
Limited Annual Report 2023/24
Note 16: 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:
2024
2023
US$m
US$m
Pension Plan
Plan
Assets
Accrued
benefit
Plan
surplus /
(deficit)
Plan
Assets
Accrued
benefit
Plan
surplus /
(deficit)
Funded:
CSL Pension Plan (Australia) – provides a lump sum benefit upon exit
15
(12)
3
15
(13)
2
CSL Behring AG Pension Plan (Switzerland) – provides an ongoing
pension
761
(761)
—
674
(674)
—
CSL Vifor AG Pension Plan (Switzerland) – provides an ongoing pension
480
(469)
11
453
(453)
—
CSL Behring Union Pension Plan (USA) – provides an ongoing pension
37
(33)
4
41
(37)
4
Unfunded:
CSL Behring GmbH Supplementary Pension Plans (Germany)
– provides an ongoing pension
—
(219)
(219)
—
(150)
(150)
CSL Behring Innovation GmbH Supplementary Pension Plans
(Germany) – provides an ongoing pension
—
(36)
(36)
—
(25)
(25)
bioCSL GmbH Pension Plans (Germany) – provides an ongoing pension
—
(2)
(2)
—
(2)
(2)
CSL Behring KG Pension Plans (Germany) – provides an ongoing
pension
—
(13)
(13)
—
(14)
(14)
CSL Plasma GmbH Pension Plans (Germany) – provides an ongoing
pension
—
—
—
—
—
—
CSL Behring KK Retirement Allowance Plan (Japan)
– provides a lump sum benefit upon exit
—
(9)
(9)
—
(11)
(11)
CSL Behring S.A. Pension Plan (France) – provides a lump sum benefit
upon exit
—
(2)
(2)
—
(1)
(1)
CSL Behring S.p.A Pension Plan (Italy) – provides a lump sum benefit
upon exit
—
(1)
(1)
—
(1)
(1)
Total
1,293
(1,557)
(264)
1,183
(1,381)
(198)
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.
137
137
Note 16: Detailed Information - People Costs continued
Movements in accrued benefits and assets
During the financial year the value of accrued benefits increased by $176m, mainly attributable to:
•
Service costs charged to the profit or loss of $59m;
•
Interest costs of $32m, from the discount rate on benefit obligations and anticipated benefit payments;
•
Employee contributions of $28m;
•
Actuarial adjustments, generating an increase in accrued benefits of $153m;
•
Offsetting these movements were decreases from:
–
Benefits paid by the plans of $80m;
–
Favourable foreign currency movements of $16m taken directly to the FCTR.
During the financial year, plan assets increased by $110m, mainly attributable to:
•
Employer and employee contributions of $78m and investment returns that increased plan assets by $85m;
•
Favourable asset ceiling movements of $25m.
•
Offsetting these movements were decreases from:
–
Benefits paid by the plans of $73m;
–
Unfavourable foreign currency movements of $5m taken directly to the FCTR;
2024
2023
The major categories of total plan assets are as follows:
US$m
US$m
Cash
27
9
Instruments quoted in active markets:
Equity instruments
619
551
Bonds
356
354
Unquoted investments - property
342
341
Other assets
99
103
Asset ceiling adjustment
(150)
(175)
Total Plan Assets
1,293
1,183
The actuarial assumptions, expressed as weighted averages, at the reporting dates are:
2024
2023
%
%
Discount rate
1.8 %
2.3%
Future salary increases
2.2 %
2.7%
Future pension increases
0.4 %
0.3%
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 $46m. An increase in the average discount rate of 0.25% would reduce the defined benefit
obligation by $47m.
The defined benefit obligation will be discharged over an extended period as members exit the plans. The plan actuaries have
estimated that the following payments will be required to satisfy the obligation. The actual payments will depend on the pattern
of employee exits from the Group’s plans.
2024
2023
Estimated defined benefit plan payments (actuarial assumption) as at 30 June:
US$m
US$m
Within one year
86
76
Between two and five years
340
293
Between five and ten years
434
360
Beyond ten years
697
652
138
Notes to the Financial Statements
138
Limited Annual Report 2023/24
(b) Share-based payments
Long Term Incentives
CSL has the following awards available under its shared-based payment plans:
•
The Executive Performance and Alignment Plan (EPA) grants Performance Share Units (PSU) to qualifying executives. Vesting
is subject to continuing employment, satisfactory performance and achievement of absolute return measures which include
EPS growth and 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 grants generally vest on their third anniversary. RGP grants generally vest in equal tranches on their first, second and third
anniversaries of the grant. For EPA and RGP commencement benefit awards, vesting dates are reviewed and determined on a
case by case basis and will vary.
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. There is no exercise price
payable on PSUs and RSUs. 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. The following RGP
and EPA grants were issued during the year ended 30 June 2024:
Date of grant
PSUs
RSUs
1 September 2023
243,433
927,025
1 March 2024
9,131
15,817
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 23 August 2023 and 21 February 2024, a total of
3,264 rights were granted under the NED Rights Plan with vesting through to August 2024.
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 2024.
139
139
Note 16: 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 2024 included:
Performance Share Units (by grant date)
1 September 2023 - Tranche 1
$265.21
$269.19
—
20.0 %
12 months
1.5 %
3.98 %
1 September 2023 - Tranche 2
$260.53
$269.19
—
20.0 %
24 months
1.7 %
3.78 %
1 September 2023 - Tranche 3
$255.16
$269.19
—
20.0 %
36 months
1.8 %
3.73 %
1 March 2024 - Tranche 1
$283.44
$285.56
—
20.0 %
6 months
1.5 %
4.48 %
1 March 2024 - Tranche 2
$278.64
$285.56
—
20.0 %
18 months
1.7 %
3.81 %
1 March 2024 - Tranche 3
$273.10
$285.56
—
20.0 %
30 months
1.8 %
3.71 %
Restricted Share Units (by grant date)
1 September 2023 - Tranche 1
$267.19
$269.19
—
20.0 %
6 months
1.5 %
4.37 %
1 September 2023 - Tranche 2
$265.21
$269.19
—
20.0 %
12 months
1.5 %
3.98 %
1 September 2023 - Tranche 3
$262.27
$269.19
—
20.0 %
18 months
1.7 %
3.78 %
1 September 2023 - Tranche 4
$260.53
$269.19
—
20.0 %
24 months
1.7 %
3.78 %
1 September 2023 - Tranche 5
$257.45
$269.19
—
20.0 %
30 months
1.8 %
3.73 %
1 September 2023 - Tranche 6
$255.16
$269.19
—
20.0 %
36 months
1.8 %
3.73 %
1 September 2023 - Tranche 7
$248.69
$269.19
—
22.5 %
48 months
2.0 %
3.75 %
1 March 2024 - Tranche 1
$283.44
$285.56
—
20.0 %
6 months
1.5 %
4.48 %
1 March 2024 - Tranche 2
$281.34
$285.56
—
20.0 %
12 months
1.5 %
4.09 %
1 March 2024 - Tranche 3
$278.64
$285.56
—
20.0 %
18 months
1.7 %
3.81 %
1 March 2024 - Tranche 4
$276.36
$285.56
—
20.0 %
24 months
1.7 %
3.81 %
1 March 2024 - Tranche 5
$273.10
$285.56
—
20.0 %
30 months
1.8 %
3.71 %
1 March 2024 - Tranche 6
$270.68
$285.56
—
20.0 %
36 months
1.8 %
3.71 %
1 March 2024 - Tranche 7
$268.27
$285.56
—
20.0 %
42 months
1.8 %
3.74 %
Rights (by grant date)
23 August 2023 - Tranche 1
$267.06
$268.98
—
20.0 %
6 months
1.5 %
4.42 %
23 August 2023 - Tranche 2
$265.08
$268.98
—
20.0 %
12 months
1.5 %
4.00 %
21 February 2024 - Tranche 1
$280.34
$282.37
—
20.0 %
6 months
1.5 %
4.45 %
GESP (by grant date)
8 September 2023 - Tranche 1
$42.04
$270.85
$228.81
20.0 %
6 months
1.5 %
4.37 %
8 March 2024 - Tranche 1
$55.85
$285.47
$229.62
20.0 %
6 months
1.5 %
4.48 %
Fair Value
(A$)
Share
Price (A$)
Exercise
Price
(A$)
Expected
Volatility
Life
Assumption
Expected
Dividend
Yield
Risk-free
Interest
Rates
140
Notes to the Financial Statements
140
Limited Annual Report 2023/24
Note 17: Detailed Information - Shareholder Returns
Consolidated Entity
2024
2023
US$m
US$m
Retained earnings
Opening balance
14,621
13,504
Net profit for the year
2,642
2,194
Dividends paid to CSL Limited shareholders
(1,192)
(1,085)
Transfer of gain on pre-acquisition shares in CSL Vifor to retained earnings
—
7
Actuarial (loss)/gain on defined benefit plans
(72)
2
Deferred tax effect on actuarial gains and losses on defined benefit plans
13
(1)
Closing balance
16,012
14,621
Note 18: Auditor Remuneration
The Group's auditor changed from Ernst & Young (EY) to Deloitte Touche Tohmatsu (Deloitte) subsequent to regulatory and
shareholder approvals received and effective for the year ended 30 June 2024. As such, the following fees were paid or were
payable for services provided by each respective year's Group auditor (including its related member firms) of CSL (2024: Deloitte
and 2023: EY). Auditor remuneration for the year ended 30 June 2023 paid or payable to EY included non-recurring audit and
non-audit services in connection with the acquisition of CSL Vifor.
2024
2023
AUDIT SERVICES – Group Auditor's Remuneration (Australia)
US$
US$
Fees for auditing the statutory financial report of the parent covering the group and auditing the
statutory financial reports of any controlled entities
1,922,825
2,872,343
Fees for comfort (assurance) procedures over the 144a senior unsecured notes issuance
98,427
—
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:
– Sustainability assurance
176,578
174,810
– Agreed-upon procedures and other audit engagements
85,025
101,653
Fees for other services:
– Training
—
60,000
– Remuneration advisory
—
373,823
Total fees to Group Auditor's Remuneration (Australia)
2,282,855
3,582,629
AUDIT SERVICES – Group Auditor's Remuneration - 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
4,231,515
4,752,475
Fees for assurance services that are required by legislation to be provided by the auditor
60,790
12,254
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:
– Agreed-upon procedures and other audit engagements
84,321
107,103
Fees for other services
66,934
591,635
Total fees to overseas member firms of the Group Auditors
4,443,560
5,463,467
Total audit and other assurance services
6,659,481
8,020,638
Total non-audit services
66,934
1,025,458
Total auditor’s remuneration
6,726,415
9,046,096
141
141
Note 19: 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, balance sheet and summary of movements in retained profits for the years ended
30 June 2024 and 2023 for the Closed Group is set out below.
Closed Group
2024
2023
Income Statement
US$m
US$m
Sales and service revenue
1,213
1,124
Other income
19
79
Total operating revenue
1,232
1,203
Cost of sales
(865)
(813)
Gross profit
367
390
Dividend income
1,604
1,257
Finance income
17
16
Research and development expenses
(195)
(161)
Selling and marketing expenses
(74)
(60)
General, administration and other expenses
(7)
(125)
Finance costs
(100)
(58)
Profit before income tax expense
1,612
1,259
Income tax (expense)/recovery
(10)
22
Profit for the year
1,602
1,281
142
Notes to the Financial Statements
142
Limited Annual Report 2023/24
Consolidated Closed
Group
2024
2023
Balance Sheet
US$m
US$m
CURRENT ASSETS
Cash and cash equivalents
189
24
Receivables and contract assets
557
699
Inventories
297
279
Total Current Assets
1,043
1,002
NON-CURRENT ASSETS
Property, plant and equipment
2,105
1,881
Deferred tax assets
136
131
Intangible assets
23
16
Retirement benefit assets
2
2
Other financial assets
18,866
19,541
Other non-current assets
2,003
265
Total Non-Current assets
23,135
21,836
TOTAL ASSETS
24,178
22,838
CURRENT LIABILITIES
Trade and other payables
606
1,330
Provisions
58
61
Interest-bearing liabilities and borrowings
163
167
Total Current Liabilities
827
1,558
NON-CURRENT LIABILITIES
Trade and other payables
2,315
664
Interest-bearing liabilities and borrowings
1,340
1,512
Provisions
46
44
Other non-current liabilities
25
22
Total Non-Current Liabilities
3,726
2,242
TOTAL LIABILITIES
4,553
3,800
NET ASSETS
19,625
19,038
EQUITY
Contributed equity
557
517
Reserves
574
437
Retained earnings
18,494
18,084
TOTAL EQUITY
19,625
19,038
2024
2023
Summary of movements in retained earnings of the Consolidated Closed Group
US$m
US$m
Retained earnings at beginning of the financial year
18,084
17,888
Net profit for the year
1,602
1,281
Actuarial gains on defined benefit plans, net of tax
—
—
Dividends paid to CSL Limited shareholders
(1,192)
(1,085)
Retained earnings at the end of the financial year
18,494
18,084
143
143
Note 20: Parent Entity Information
Information relating to CSL Limited (parent entity)
(a) Summary financial information
2024
2023
The individual financial statements for the parent entity show the following aggregate
amounts:
US$m
US$m
Profit for the year
448
931
Total comprehensive income
448
931
Current assets
65
375
Total assets
11,280
11,438
Current liabilities
90
460
Total liabilities
5,353
4,806
Contributed equity
557
517
Reserves
(54)
(54)
Retained earnings
5,424
6,169
Net assets / Total equity
5,927
6,632
(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). For information about guarantees given by the parent entity,
please refer above and to Note 19.
(c) Commitments and contingencies
The parent entity did not have any material contractual commitments for the acquisition of property, plant and equipment as at
30 June 2024 and 2023. In addition, the parent entity did not have any material contingent liabilities as at 30 June 2024 and 2023.
Note 21: Non-Controlling Interests
Vifor Fresenius Medical Care Renal Pharma (VFMCRP) is the only Group's subsidiary with material non-controlling interests.
VFMCRP is registered in St. Gallen, Switzerland. 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 non-controlling shareholder has extensive
protection rights. In the event of disagreement, the Group has the casting vote within a defined escalation process.
2024
2023
Summarised financial information (before any intercompany eliminations) of VFMCRP:
US$m
US$m
Statement of Comprehensive Income information:
Net sales
755
786
Other income
22
24
Operating profit
159
120
Net profit
157
112
Balance Sheet information:
Current assets
807
757
Non-current assets
2,803
2,986
Current liabilities
297
201
Non-current liabilities
360
392
Equity
2,953
3,150
Statement of Cash flows information:
Cash flow from operating activities
318
387
VFMCRP paid dividends of $74m during the year ended 30 June 2024 to FMC (2023: $154m).
144
Notes to the Financial Statements
144
Limited Annual Report 2023/24
Note 22: 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 23: Amendments to Accounting Standards and Interpretations
(a) Amendments to accounting standards and interpretations adopted by the Group
The Group has adopted the following amendments 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 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
(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 2025:
•
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
•
AASB 2023-1 Amendments to Australian Accounting Standards – Supplier Finance Arrangements
Applicable to the Group for the year ending 30 June 2026 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 2023-5 Amendments to Australian Accounting Standards – Lack of Exchangeability
•
AASB 18 Presentation and Disclosure in Financing Statements
145
145
Consolidated Entity Disclosure Statement
As at 30 June 2024
The ultimate controlling entity of the CSL Group is CSL Limited, otherwise described as the parent company. Outlined below is the
Group’s consolidated entity disclosure statement as at 30 June 2024 prepared in accordance with the Corporations Act 2001 (Cth).
Unless otherwise indicated, no entities are trustees, partners or participants in joint ventures.
Entity name
(all represent body corporate entities unless otherwise specified)
Australian
or Foreign
resident
Country of
Incorporation
and Tax
Residency1
Percentage
owned (%)
CSL Limited
Australian
Australia
Controlled entities (wholly owned) of CSL Limited:
Amrad Pty Ltd
Australian
Australia
100%
CSL General Employee Share Ownership Company Pty Ltd2
Australian
Australia
100%
CSL Gene Therapy Pty Ltd
Australian
Australia
100%
CSL Innovation Pty Ltd
Australian
Australia
100%
CSL Behring (Australia) Pty Ltd
Australian
Australia
100%
CSL Behring (Holdings) Pty Ltd
Australian
Australia
100%
CSL Finance Pty Ltd
Australian
Australia
100%
CSL IP Investments Pty Ltd
Australian
Australia
100%
Seqirus (Australia) Pty Ltd
Australian
Australia
100%
Seqirus Holdings Australia Pty Ltd
Australian
Australia
100%
Seqirus Pty Ltd
Australian
Australia
100%
Vifor Pharma Pty Limited
Australian
Australia
100%
CSL Behring GmbH
Foreign
Austria
100%
Vifor Pharma Österreich GmbH
Foreign
Austria
100%
CSL Behring S.A.
Foreign
Argentina
100%
Laboratorios Seqirus S.A.
Foreign
Argentina
100%
Vifor Pharma América Latina S.A.
Foreign
Argentina
100%
CSL Behring NV
Foreign
Belgium
100%
Vifor Pharma België NV
Foreign
Belgium
100%
CSL Behring Comercio de Produtos Farmaceuticos Ltda
Foreign
Brazil
100%
Seqirus Laboratorios Do Brasil Ltda
Foreign
Brazil
100%
Vifor Pharma Brasil Ltda.
Foreign
Brazil
100%
CSL Behring Canada Inc
Foreign
Canada
100%
Vitaeris Inc
Foreign
Canada
100%
Seqirus Canada Inc
Foreign
Canada
100%
CSL Behring SpA
Foreign
Chile
100%
Guangzhou Junxin Pharmaceutical Co Ltd
Foreign
China
100%
Wuhan Zhong Yuan Ruide Biological Products Co Ltd
Foreign
China
100%
Enshi Tianyuan Plasma Station Co Ltd
Foreign
China
100%
Chibi Ruixiang Plasma Station Co Ltd
Foreign
China
100%
Dangyang Ruide Plasma Station Co Ltd
Foreign
China
100%
Luotian Ruide Plasma Station Co Ltd
Foreign
China
100%
Lichuan Ruide Plasma Pheresis Station Co Ltd
Foreign
China
100%
CSL Behring Colombia S.A.S
Foreign
Colombia
100%
CSL Behring s.r.o.
Foreign
Czech Republic
100%
CSL Behring ApS
Foreign
Denmark
100%
CSL Behring S.A.
Foreign
France
100%
Vifor France S.A.S.
Foreign
France
100%
See footnotes on page 148.
146
Limited Annual Report 2023/24
Entity name
(all represent body corporate entities unless otherwise specified)
Australian
or Foreign
resident
Country of
Incorporation
and Tax
Residency1
Percentage
owned (%)
CSL Behring GmbH
Foreign
Germany
100%
CSL Plasma GmbH
Foreign
Germany
100%
CSL Behring Beteiligungs und Verwaltungs GmbH & Co KG3
Foreign
Germany
100%
CSL Finance GmbH
Foreign
Germany
100%
CSL Behring Holdings GmbH
Foreign
Germany
100%
CSL Innovation GmbH
Foreign
Germany
100%
CSL Behring Verwaltungs GmbH
Foreign
Germany
100%
Seqirus GmbH
Foreign
Germany
100%
Vifor Pharma Deutschland GmbH
Foreign
Germany
100%
CSL Behring EPE
Foreign
Greece
100%
CSL Behring Asia Pacific Limited
Foreign
Hong Kong
100%
CSL Plasma Kft
Foreign
Hungary
100%
CSL Behring Kft.
Foreign
Hungary
100%
CSL Behring Ltd
Foreign
Israel
100%
CSL Behring SpA
Foreign
Italy
100%
Seqirus S.r.l
Foreign
Italy
100%
Vifor Pharma Italia S.r.l.
Foreign
Italy
100%
CSL Behring KK
Foreign
Japan
100%
CSL Behring Korea Ltd
Foreign
Korea
100%
Seqirus Korea Limited
Foreign
Korea
100%
Behring SDN. BHD.
Foreign
Malaysia
100%
CSL Behring SA de CV
Foreign
Mexico
100%
CSL Behring BV
Foreign
Netherlands
100%
Seqirus Netherlands B.V.
Foreign
Netherlands
100%
Vifor Pharma Nederland B.V.
Foreign
Netherlands
100%
CSL Behring (NZ) Limited
Foreign
New Zealand
100%
Seqirus (NZ) Limited
Foreign
New Zealand
100%
CSL Behring Panama S.A.
Foreign
Panama
100%
CSL Behring sp. z o.o.
Foreign
Poland
100%
CSL Behring, Unipessoal, Lda
Foreign
Portugal
100%
Vifor Pharma Portugal, S.A.
Foreign
Portugal
100%
Vifor Pharma Romania S.R.L.
Foreign
Romania
100%
Vifor Pharma RUS Limited Liability Company
Foreign
Russia
100%
CSL Behring Pte. Ltd.
Foreign
Singapore
100%
Seqirus Pte. Ltd.
Foreign
Singapore
100%
Vifor Pharma Asia Pacific Pte. Ltd.
Foreign
Singapore
100%
CSL Behring Slovakia sro
Foreign
Slovakia
100%
CSL Behring, S.A.
Foreign
Spain
100%
Seqirus Spain, S.L.
Foreign
Spain
100%
Vifor Pharma España, S.L.
Foreign
Spain
100%
Sanifit Therapeutics, S.A.
Foreign
Spain
100%
CSL Behring AB
Foreign
Sweden
100%
Vifor Pharma Nordiska AB
Foreign
Sweden
100%
See footnotes on page 148.
147
Entity name
(all represent body corporate entities unless otherwise specified)
Australian
or Foreign
resident
Country of
Incorporation
and Tax
Residency1
Percentage
owned (%)
Iscotec AB
Foreign
Sweden
100%
CSL Behring AG
Foreign
Switzerland
100%
CSL Behring Biotherapies GmbH
Foreign
Switzerland
100%
CSL Behring Lengnau AG
Foreign
Switzerland
100%
Seqirus AG
Foreign
Switzerland
100%
Vifor (International) AG
Foreign
Switzerland
100%
Vifor Pharma Management AG
Foreign
Switzerland
100%
Vifor Pharma Participations AG
Foreign
Switzerland
100%
Vifor Pharma Switzerland SA
Foreign
Switzerland
100%
CSL Behring Limited
Foreign
Taiwan
100%
CSL Behring Biyoterapi llac Dis Ticaret AS
Foreign
Turkey
100%
CSL Behring UK Limited
Foreign
UK
100%
CSL Finance Plc
Foreign
UK
100%
CSL Behring Holdings Limited
Foreign
UK
100%
Seqirus Holdings UK Limited
Foreign
UK
100%
Seqirus Limited
Foreign
UK
100%
Seqirus UK Limited
Foreign
UK
100%
Seqirus Vaccines Holdings Limited
Foreign
UK
100%
Seqirus Vaccines Limited
Foreign
UK
100%
Vifor Pharma UK Limited
Foreign
UK
100%
CSL Behring LLC
Foreign
UK
100%
CSL Plasma Puerto Rico LLC
Foreign
USA (Puerto Rico)
100%
CSL Plasma Inc.
Foreign
USA
100%
CSL Behring Gene Therapy, Inc.
Foreign
USA
100%
CSLB Holdings Inc.
Foreign
USA
100%
Seqirus USA Inc.
Foreign
USA
100%
Seqirus Inc.
Foreign
USA
100%
Vifor Pharma, Inc.
Foreign
USA
100%
CSL Behring MEA FZ-LLC
Foreign
UAE
100%
Controlled entities (not wholly owned) of CSL Limited4:
Cervax Pty. Limited
Australian
Australia
74%
Vifor Fresenius Medical Care Renal Pharma België NV
Foreign
Belgium
55%
Vifor Fresenius Kabi (Beijing) Pharmaceutical Consulting Co. Ltd.
Foreign
China
55%
Vifor Fresenius Medical Care Renal Pharma France S.A.S.
Foreign
France
55%
Fresenius Medical Care Nephrologica Deutschland GmbH
Foreign
Germany
55%
Vifor Fresenius Medical Care Renal Pharma Italia S.r.l.
Foreign
Italy
55%
Vifor Fresenius Medical Care Renal Pharma Nederland B.V.
Foreign
Netherlands
55%
Vifor Fresenius Medical Care Renal Pharma España, S.L.
Foreign
Spain
55%
Vifor Fresenius Medical Care Renal Pharma AG
Foreign
Switzerland
55%
Vifor Fresenius Medical Care Renal Pharma UK Limited
Foreign
UK
55%
Consolidated Entity Disclosure Statement
For the Year Ended 30 June 2024
1.
All entities have retained the same tax residency as their country of incorporation.
2. Entity is a hybrid trust representing a legal entity that is the trustee of CSL Employee Share Trust which has an Australian tax residency and
country of incorporation.
3. Entity represents a limited partnership.
4. Represents a participating entity of a joint venture that is consolidated in the Group’s consolidated financial information.
148
Limited Annual Report 2023/24
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:
i) giving a true and fair view of the financial position of the Company and the Group as at 30 June 2024 and the
performance of the Company and the Group for the year ended 30 June 2024;
ii) complying with Australian Accounting Standards and Corporations Regulations 2001 (Cth);
b) the consolidated entity disclosure statement prepared in accordance with subsection 295(3A) of the Corporations Act 2001
(Cth) and included in the financial report is true and correct;
c) as at the date of this declaration, there are reasonable grounds to believe that the members of the Closed Group identified
in Note 19 to 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; and
d) there are reasonable grounds to believe that 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 year ended 30 June 2024.
This declaration is made in accordance with a resolution of the directors.
Dr Brian McNamee AO
Dr Paul McKenzie
Chairman
Managing Director
Melbourne
12 August 2024
Directors’ Declaration
149
Independent auditor’s report
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation. 1
Deloitte Touche Tohmatsu
ABN 74 490 121 060
477 Collins Street
Melbourne, VIC, 3000
Australia
Phone: +61 3 9671 7000
www.deloitte.com.au
Independent Auditor’s Report to the Directors 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 (the “Group”) which
comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash
flows for the year then ended, and notes to the financial statements, including material accounting policy
information and other explanatory information, the directors’ declaration and the consolidated entity disclosure
statement.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
•
Giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial performance
for the year then ended; and
•
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 & 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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s
report.
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 judgement, were of most significance in our audit of
the financial report for the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
150
Limited Annual Report 2023/24
2
Key Audit Matter
How the scope of our audit responded to the Key
Audit Matter
Existence and valuation of inventory including the
elimination of intergroup profit.
Refer to Note 4 Inventories
At 30 June 2024, the carrying value of the Group’s
inventories, which are recorded at the lower of cost
and net realisable value, was $5,964 million.
Inventory is held at a number of geographically
diverse locations across the globe, some of which are
managed by third parties.
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 intragroup
inventory sales and the capitalisation and
amortisation of purchase price and other
manufacturing variances within the Group, are
appropriately considered in the determination of
costs.
Furthermore, inventory provisions may be recognised
in relation to raw materials, work in progress and
finished goods based on a number of factors
including expiry dates, selling prices and margins
realised.
Given the significant value of inventories, global
distribution, intra-group transactions, including the
complexity involved in eliminating unrealised profits,
and judgements in determining whether inventory is
carried at the lower of cost and net realisable value,
we consider the existence and valuation of
inventories to be a key audit matter.
Our procedures included, but were not limited to:
•
Understanding the policies, processes and
relevant controls that management has in
place in respect of the valuation and
existence of inventory;
•
Assessing the existence of inventory by:
o
Understanding the Group’s stock take
procedures.
o
Confirming the physical existence of
inventory, including attendance at stock
takes.
o
Evaluating the results from stock takes
performed and validating that variances
have been appropriately recognised.
•
Assessing the valuation of inventory by:
o
Assessing the determination of
inventory cost, including evaluating the
appropriateness of standard costs and
the recognition of variances between
standard and actual costs.
o
Evaluating the carrying value of
inventories, including any provisions
required, to ensure inventory is carried
at the lower of cost and net realisable
value at 30 June 2024.
o
Assessing the Group’s transfer pricing
principles and recalculating the
resulting elimination of unrealised profit
on sale of inventories between group
entities.
We also assessed the adequacy of the disclosures in
note 4 to the financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Company’s annual report for the year ended 30 June 2024, but does not include the financial report and
our auditor’s report thereon.
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 identified
above 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 that we 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.
151
Independent auditor’s report
3
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible:
•
For the preparation of the financial report in accordance with the Corporations Act 2001, including giving a
true and fair view of the financial position and performance of the Group in accordance with Australian
Accounting Standards; and
•
For such internal control as the directors determine is necessary to enable the preparation of the financial
report in accordance with the Corporations Act 2001, including giving a true and fair view of the financial
position and performance of the Group, and is free from material misstatement, whether due to fraud or
error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related 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 has no realistic
alternative but to do so.
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 judgement 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’s audit. We remain solely responsible for our audit opinion.
152
Limited Annual Report 2023/24
4
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.
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 with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period 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 Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the Directors’ Report for the year ended 30 June 2024.
In our opinion, the Remuneration Report of CSL Limited, for the year ended 30 June 2024, 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.
DELOITTE TOUCHE TOHMATSU
Andrew Griffiths
Partner
Chartered Accountants
Sydney, NSW
12 August 2024
Genevra Cavallo
Partner
Chartered Accountants
Melbourne, VIC
12 August 2024
153
Shareholder Information
CSL Limited
Issued Capital Ordinary Shares: 483,252,729 as at 30 June 2024;
483,252,729 as at 31 July 2024.
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.
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.
The American Depositary Shares are tradeable via
licensed US brokers in the ordinary course of trading in
the over‑the‑counter (OTC) market in the US. 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 2024) the details of each substantial shareholder who, together with their associates,
notified CSL Limited under section 671B of the Corporations Act 2001 (Cth), 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
27,353,205
Ordinary shares
Vanguard Group
14 November 2022
9 November 2022
24,112,875
Ordinary shares
State Street Group
19 March 2024
15 March 2024
29,225,168
There were no substantial shareholder notices lodged on the Australian Securities Exchange period between 1 July 2024 and
31 July 2024.
Voting rights
Ordinary shares
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.
154
Limited Annual Report 2023/24
Distribution of shareholdings as at 31 July 2024
Range
Total holders
Units
% Units
1 – 1,000
220,608
37,045,874
7.67
1,001 – 5,000
21,019
47,021,687
9.73
5,001 – 10,000
2,930
20,081,030
4.16
10,001 – 100,000
1,239
21,802,831
4.51
100,001 over
52
357,301,307
73.94
Total shareholders and shares on issue
(including the ADR program)
245,848
483,252,729
100.00
Unmarketable parcels
Minimum parcel size
Holders
Shares
Minimum A$500.00 parcel at A$309.7200 per share
(being the closing market price on 31 July 2024)
2
438
438
Unquoted equity securities
As at 31 July 2024, 1,573,318 Performance Rights with 4,398
holders and 577,293 Performance Share Units with 149 holders
were on issue pursuant to CSL’s equity incentive plan.
On-market share acquisitions
During the 2023/24 financial year, 3,101 CSL ordinary
shares were purchased on-market at an average price of
$279.33 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
www.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 8:30 a.m.–7 p.m. 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
www.investorcentre.com/au.
Change of address should be notified to the Share Registry
online via the Investor Centre at www.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 www.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 2024 final dividend payment must provide their
valid US bank account details to the Share Registry by the
dividend record date of 10 September 2024.
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 2024 Annual General Meeting (AGM) of CSL Limited
(ABN 99 051 588 348) will be held on Tuesday, 29 October 2024
at 10 a.m. (Melbourne time) at the RACV City Club – Level 17,
501 Bourke Street, Melbourne 3000.
155
Shareholder Information
CSL’s 20 largest shareholders as at 31 July 2024*
Rank
Name
Units
% Units
1
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
162,829,983
33.69
2
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
86,779,316
17.96
3
CITICORP NOMINEES PTY LIMITED
46,160,603
9.55
4
BNP PARIBAS NOMINEES PTY LTD
11,290,713
2.34
5
NATIONAL NOMINEES LIMITED
8,358,823
1.73
6
BNP PARIBAS NOMS PTY LTD
7,126,947
1.47
7
CITICORP NOMINEES PTY LIMITED
5,206,440
1.08
8
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
3,491,236
0.72
9
BNP PARIBAS NOMINEES PTY LTD
2,862,019
0.59
10
NETWEALTH INVESTMENTS LIMITED
2,822,828
0.58
11
AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED
2,239,500
0.46
12
SOLIUM NOMINEES (AUSTRALIA) PTY LTD
1,682,180
0.35
13
CUSTODIAL SERVICES LIMITED
1,611,222
0.33
14
ARGO INVESTMENTS LIMITED
1,341,509
0.28
15
MUTUAL TRUST PTY LTD
1,051,510
0.22
16
BNP PARIBAS NOMS (NZ) LTD
1,024,918
0.21
17
SOLIUM NOMINEES (AUSTRALIA) PTY LTD
796,200
0.16
18
D W S NOMINEES PTY LTD
793,208
0.16
19
IOOF INVESTMENT SERVICES LIMITED
687,223
0.14
20
IOOF INVESTMENT SERVICES LIMITED
669,103
0.14
Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total)
348,825,481
72.18
Total Remaining Holders Balance
134,427,248
27.83
*
this includes shares in the ADR program.
156
Limited Annual Report 2023/24
Performance Summary
Performance Indicator
Measure
21/22
22/23
23/24
More in 23/24
Annual Report
(page reference)
Operating revenue
US$ million
10,562¶
13,310¶^
14,800¶^
106
Net profit
US$ million
2,255¶
2,194¶^
2,642¶^
106
Economic value generated*
US$ million
10,570†
13,348†^
14,839#^
2
Economic value distributed*
US$ million
9,866†
13,209†^
13,516#^
43
Promising Futures
CSL’s people
Total workforce
Number
30,398†
32,065†^
32,698#^
35
Total Board female
Percentage
44†
44†^
56#^
35
Total workforce female
Percentage
61†
59†^
59#^
35
Total people managers female
Percentage
46†
45†^
46#^
35
Total senior executives female
Percentage
31
32†^
34#^
35
Total Recordable Injury
Frequency Rate (TRIFR)
Per million hours worked
for Non‑CSL Plasma sites
1.4†
0.94†^
0.70#^
41
Per million hours worked
for CSL Plasma
10.7†
12.1†
9.75#^
41
Fatalities (including contractors)
Number
0†
0†^
0#^
41
Employee engagement
Percentage
77.9†
76.2†^
74.8#^
40
ESG employee engagement**
Percentage
78.2†
76.2†^
75.1#^
40
Healthier Communities
Innovation
R&D investment
US$ million
1,156†
1,266†^
1,428¶^
22
Clinical trials in operation
Number
58
60
60
47
Safety and quality
Regulatory audits of
manufacturing facilities
and plasma collection centres
Number
406†
475†^
479#^
43
Safety related recalls
of finished product††
Number
0†
3†^
2#^
43
Pharmacovigilance audits
Number
69
94
82
43
Community
Total contribution
US$ million
50.0
42.6
45.3
43
Product access support (subset
of total community contribution)***
US$ million
17.8†
13.7†
15.7#
44
Plasma donors willing
to donate again
Percentage
95^^
94†
94#
48
Key Performance Data Summary
See page 158 for footnotes.
157
Performance Summary
Performance Indicator
Measure
21/22
22/23
23/24
More in 23/24
Annual Report
(page reference)
Healthier Environment
Environmental data absolutes§
Energy consumption
Petajoules
3.92
4.21†^
4.34#^
51
Scope 1 and 2 GHG emissions
Metric kilotonnes (KT)
347
336†^
351#^
51
Water consumption
Gigalitres
4.67
4.86
5.34#^
54
Waste
Metric kilotonnes (KT)
55.54
72.00
93.64
54
Waste recycling rate
Percentage
38
44
48
54
*
References the definitions included in the GRI standards.
**
As part of the Engagement Survey, employees said that they feel good about the ways CSL contributes to the community.
*** Excludes CSL Vifor as available data is not captured via the same method as the CSL Group.
#
Data for nominated period has received limited assurance by Deloitte.
†
Data for nominated period has received limited assurance by Ernst & Young.
¶
Operating Revenue, Net Profit and R&D Investment 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 51 (Energy) and 54 (Waste and Water) for more on reporting boundary.
^
Includes CSL Vifor. 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 page 48, Donor Experience
Reporting boundary
CSL’s disclosure covers the businesses and operations over which it exercises direct control and incorporates CSL Limited,
CSL Behring (including CSL Plasma), CSL Seqirus, CSL Vifor and global research and development (R&D). This includes CSL’s
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 CSL’s 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.
Key Performance Data Summary
158
Limited Annual Report 2023/24
Glossary
Acute graft-versus-host disease (GvHD) is a complication
after a stem cell or bone marrow transplant where the newly
transplanted cells attack the recipient’s tissues, leading to
inflammation and organ damage.
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.
Angiotensin is a hormone that tightens blood vessels, helping
regulate blood pressure by controlling how much blood flows
through them.
Anti-neutrophil cytoplasmic autoantibody
(ANCA)‑associated vasculitis is an autoimmune condition
where the body produces antibodies that attack small blood
vessels, causing inflammation and damage to organs like the
kidneys, lungs, and skin.
Bronchiectasis a lung condition where the airways become
widened and damaged, often causing frequent lung infections
and difficulty breathing.
Cell-based (technology) for the manufacture of influenza
vaccines, is a process of growing viruses in animal cells.
Chronic kidney disease (CKD) a progressive condition where
the kidneys lose function over time, leading to complications
like high blood pressure and anaemia.
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.
COVID-19 is an infectious disease caused by a newly discovered
coronavirus SARS-CoV-2.
Endothelin is a protein in the body that affects blood vessel
narrowing and widening, which in turn impacts blood pressure
and blood flow.
Greenhouse gas (GHG) are gases in the atmosphere that raise
the surface temperature on Earth. What distinguishes them
from other gases is that they absorb the wavelengths of
radiation that a planet emits, resulting in the greenhouse
effect.
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.
Haemodialysis is a medical treatment for kidney failure where
a machine filters waste and excess fluid from the blood when
the kidneys can no longer perform this function adequately.
Haemostasis is the body’s process of stopping bleeding
after an injury; it involves blood vessel constriction, platelet
activation, and blood clot formation.
Haematocrit the percentage of red blood cells in a
person’s blood.
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.
Hyperkalemia a medical condition characterised by elevated
levels of potassium in the blood, potentially leading to
abnormal heart rhythms and other health complications.
Immunoglubulins (Ig), 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).
Immunoglobulin A nephropathy a kidney disease where the
immune system mistakenly attacks the kidneys, leading to
inflammation and kidney damage.
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).
Interleukin a group of cytokines produced by leucocytes
(white blood cells) and other body cells for regulating immune
responses.
Intermediate-Risk (sub-massive) pulmonary embolism
refers to a condition where a blood clot partially blocks one or
more arteries in the lungs, causing symptoms that are more
severe than those of a small clot but less severe than those of a
massive clot, leading to symptoms such as shortness of breath,
chest pain, and an increased risk of complications such as
heart strain.
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.
159
Pandemic is the worldwide spread of a disease.
Pharmacokinetics is the study of how the body processes
drugs, including their absorption, distribution, metabolism,
and elimination.
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 (PID) 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.
Prothrombin complex is a combination of blood clotting
factors, including prothrombin, factors VII, IX, and X, which work
together to facilitate blood clot formation.
Pruritus is the medical term for itching, which can occur due
to various reasons such as dry skin, allergies, insect bites, or
underlying medical conditions like liver or kidney disease.
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).
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.
Scope 1 emissions are 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.
Secondary immunodeficiency (SID) is when the immune
system becomes weakened due to factors like medical
treatments, medications, infections, or other health conditions.
Subcutaneous is the administration of drugs or fluids into the
subcutaneous tissue, which is located just below the skin.
Thrombosis is the formation of a blood clot within a blood
vessel, which can obstruct blood flow and lead to serious
complications if the clot dislodges and travels to other parts of
the body.
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.
Zoonotic refers to diseases that can spread from animals
to humans.
Glossary
160
Limited Annual Report 2023/24
161
Legal notice: This report is intended for global use.
CSL conducts a detailed sustainability materiality assessment every two years in order
to identify and assess impacts, risks and opportunities to its business, with our most
recent assessment undertaken in early 2024.
The prioritised results of our assessment are available within this report and on
CSL.com. In addition to an independent audit of our consolidated financial statements,
limited assurance on a selection of sustainability-based metrics has been provided
by Deloitte Touché Tohmatsu (Deloitte), and the assurance opinion can be found
on page 73.
Further, more detailed Group and sustainability information, including CSL’s materiality
assessment, can be found on CSL.com (Sustainability).
Some statements about products, registered product indications or procedures may
differ in certain countries. Therefore, always consult the country-specific product
information, package leaflets 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 affiliates. 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 reflect 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 field; advances in environmental protection
processes; and geopolitical developments. There are also limitations with respect
to scenario analysis, and it is difficult 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 financial information disclaimer
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 financial information in this report. Non-IFRS financial measures
are financial measures other than those defined or specified under any relevant
accounting standard and may not be directly comparable with other companies’
information. Non-IFRS financial measures are used to enhance the comparability of
information between reporting periods and enable further insight and a different
perspective into financial performance. Non-IFRS financial information should be
considered in addition to, and is not intended to be a substitute for, IFRS financial
information and measures. Non-IFRS financial measures are not subject to audit
or review.
CSL Limited ABN 99 051 588 348
Disclaimer as it relates to trademarks
The trademarks CSL, CSL BEHRING,
CSL SEQIRUS, CSL VIFOR, HEMGENIX,
HAEGARDA, BERINERT, PRIVIGEN, HIZENTRA,
AFSTYLA, IDELVION, KCENTRA, RiaSTAP,
ZEMAIRA, RESPREEZA, INJECTAFER,
VELPHORO, VELTASSA, AUDENZ, FLUAD,
FLUCELVAX, FOCLIVIA, AFLUNOV, KOSTAIVE,
MF59, TETAGAM, BERIRAB, HAEMATE,
HAEMOCOMPLETTAN, FERINJECT, BERIPLEX,
CELLDEMIC, INCELLIPAN and PANVAX are
owned by CSL Limited or other CSL Group
Legal Entities and are the subject of trade
mark applications and registrations in
countries around the world.
The trademarks RESPREEZA and
KCENTRA are registered in a country or
countries outside Australia.
KORSUVA and KAPRUVIA are trademarks
of Cara Therapeutics, Inc.
RAYALDEE is a trademark of
OPKO Health, Inc. or EirGen Pharma Ltd.
TAVNEOS is a trademark of
ChemoCentryx Inc.
FILSPARI is a trademark of
Travere Therapeutics, Inc.
FLUXVIR is a trademark of
Sinergium Biotech S.A. (Argentina).
The trademark FLUXVIR is registered in
a country or countries outside Australia.
162
Limited Annual Report 2023/24
CSL.com
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For further information about CSL and its operations,
refer to Company announcements to the Australian
Securities Exchange and our website: CSL.com