CSL Limited  
Annual Report  
2017/18  
Driven by  
Our Promise™  
Contents  
02  
About CSL  
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Our Businesses  
AGM  
NEW TIME  
AND  
YEAR IN REVIEW  
VENUE!  
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Key Business Highlights  
Financial Highlights  
Year in Review  
ANNUAL GENERAL MEETING  
2018  
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Wednesday, 17 October 2018 at 1pm  
Clarendon Auditorium  
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5 August  
Annual profit and final dividend  
announcement  
BUSINESS PROFILES  
Melbourne Convention and Exhibition Centre  
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1 September  
2 September  
2 October  
Shares traded ex-dividend  
Record date for final dividend  
Final dividend paid  
(MCEC), South Wharf, Melbourne 3000  
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CSL Behring  
Seqirus  
Research and Development  
AGM LIVE WEBCAST  
7 October  
Annual General Meeting  
Half year ends  
The CSL Limited Annual General Meeting will be  
webcast through CSL’s website CSL.com  
OUR COMPANY  
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1 December  
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Directors  
Global Leadership Group  
Share Information  
Shareholder Information  
Corporate Governance at CSL  
Log on to the home page of CSL’s website and  
then click on the item called Annual General  
Meeting webcast.  
2019  
13 February  
Half year profit and interim  
dividend announcement  
SHARE REGISTRY  
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3 March  
4 March  
2 April  
Shares traded ex-dividend  
Record date for interim dividend  
Interim dividend paid  
Year ends  
FINANCIAL REPORT  
Computershare Investor Services Pty Limited  
Yarra Falls, 452 Johnston Street  
Abbotsford VIC 3067  
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Directors’ Report  
Auditor’s Independence Declaration  
Consolidated Statement of  
Comprehensive Income  
Consolidated Balance Sheet  
Consolidated Statement of Changes in Equity  
Consolidated Statement of Cash Flows  
Notes to the Financial Statements  
30 June  
Postal Address: GPO Box 2975  
Melbourne VIC 3001  
14 August  
Annual profit and final dividend  
announcement  
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Enquiries within Australia: 1800 646 882  
Enquiries outside Australia: +61 3 9415 4178  
10 September  
Shares traded ex-dividend  
Record date for final dividend  
Final dividend paid  
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1 September  
1 October  
Website: investorcentre.com  
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16 Directors’ Declaration  
17 Independent Auditor’s Report  
24 Medical Glossary  
6 October  
Annual General Meeting  
Half year ends  
Please see inside back cover for legal notice  
31 December  
Global Operations  
GOETTINGEN  
HATTERSHEIM  
SCHWALMSTADT  
GERMANY  
LIVERPOOL  
UK  
CAMBRIDGE  
US  
KANKAKEE  
KING OF PRUSSIA  
US  
MAIDENHEAD  
UK  
US  
MARBURG GERMANY  
SIENA ITALY  
CSL BEHRING HEAD OFFICE  
SEQIRUS HEAD OFFICE  
PASADENA  
HOLLY SPRINGS  
US  
US  
WUHAN  
CHINA  
BASEL  
BERN  
SWITZERLAND  
INDIANAPOLIS  
US  
TOKYO  
JAPAN  
MESQUITE  
US  
KNOXVILLE  
US  
HONG KONG  
CHINA  
BOCA RATON  
US  
RESEARCH AND DEVELOPMENT  
MANUFACTURING  
COMMERCIAL OPERATIONS  
TESTING LABORATORY  
SYDNEY  
AUSTRALIA  
LOGISTICS CENTRE  
DISTRIBUTION  
MELBOURNE  
WAREHOUSING  
AUSTRALIA  
ADMINISTRATION  
REGIONAL SALES AND DISTRIBUTION  
GROUP HEAD OFFICE  
CSL Limited Annual Report 2018  
1
About CSL  
Driven by our promise, CSL is a global biotechnology leader which develops and delivers innovative  
medicines that save lives, protect public health and help people with life-threatening medical  
conditions live full lives. Our Group Values guide us in creating sustainable value for our stakeholders.  
Today, that same promise has never  
been stronger. As a leading global  
biotechnology company, CSL delivers  
medicines to patients in more than  
60 countries, and employs more than  
Innovation has been in the DNA of  
CSL since our beginning in 1916 and  
continues as the core of everything we  
do today. Innovation spans all across our  
organisation – reflected in our 1,700-  
plus dedicated scientists who focus  
every day on solving patients’ unmet  
needs, through the advancement of  
recombinant proteins and gene therapy  
technology, to our unique capability in  
creating one of the largest and most  
efficient plasma collection networks in  
the world.  
CSL’s continuing priority is to ensure  
the ongoing safety and quality of our  
medicines, while improving access to  
innovative therapies that make a real and  
lasting difference to the lives of people  
who need them. To achieve this, we drive  
a culture of continuous improvement in  
quality and compliance and undertake  
capacity expansions around the world.  
Delivering on promises is  
what we do at CSL. Starting  
more than a century ago  
in Melbourne, Australia, we  
made a promise to save lives  
and protect the health of  
people who were stricken  
with a broad range of serious  
medical conditions.  
2
2,000 people who are driven by a deep  
passion to serve thousands of patients  
and other stakeholders around the world.  
CSL applies its world-class research  
and development (R&D), commercial  
strength and patient-focused  
management, along with its high-  
quality manufacturing, to develop and  
deliver innovative biotherapies, influenza  
vaccines and support programs – all to  
help save lives and treat people with life-  
threatening medical conditions.  
CSL also invests in life-cycle  
management and market development  
for our existing products, and in  
the development of new product  
opportunities for the longer term. We  
understand the unique challenges faced  
by people stricken with life-threatening  
medical conditions because of our  
long experience, deep knowledge and  
dedicated focus on preventing and  
treating serious diseases. We expect that  
CSL supports patient, biomedical  
and local communities by improving  
access to therapies, advancing scientific  
knowledge, supporting future medical  
researchers, and engaging our staff in the  
support of local communities. We also  
contribute to humanitarian programs  
and relief efforts around the world.  
2
CSL Limited Annual Report 2018  
emerging new innovations and support  
programs can provide unprecedented  
opportunities to improve patient  
wellbeing unlike any other time in history.  
CSL’s commercial capability, combined  
with a focused global R&D organisation  
and proven operational excellence, give  
us the confidence to efficiently identify,  
successfully develop, and reliably deliver  
innovations that patients need and want.  
For more than 100 years, CSL has  
earned a reputation as a passionate yet  
responsible organisation which is driven  
to care for patients and deliver on its  
commitments. Today, our future has  
never looked brighter.  
CSL Limited Annual Report 2018  
3
Our Businesses  
CSL BEHRING  
SEQIRUS  
leading immunoglobulin and specialty  
Seqirus was established on 31 July  
2015, following CSL’s acquisition of the  
Novartis influenza vaccines business,  
and subsequent integration with bioCSL.  
Seqirus is one of the world’s largest  
influenza vaccine companies and a major  
partner in the prevention and control of  
influenza globally. It is a reliable supplier  
of influenza vaccine for Northern and  
Southern Hemisphere markets and a  
transcontinental partner in pandemic  
preparedness and response.  
In Australia and the Asia Pacific  
CSL Behring is a global leader in  
biotherapies with the broadest range  
of quality products in our industry  
and substantial markets in North  
America, Latin America, Europe,  
Asia and Australia. Our therapies are  
indicated for treatment of bleeding  
disorders including haemophilia  
and von Willebrand disease, primary  
and secondary immunodeficiencies,  
hereditary angioedema, neurological  
disorders and inherited respiratory  
disease. Our products are also used to  
prevent haemolytic disease in newborns,  
for urgent warfarin reversal in patients  
with acute major bleeding, to prevent  
infection in solid organ transplant  
recipients and treat specific infections,  
and to help victims of trauma, shock and  
burns.  
products that are shifting treatment  
paradigms around the world, CSL  
Behring knows how to meet the needs  
of these unique populations.  
region, Seqirus is a leading provider  
of in-licensed vaccines and specialty  
pharmaceuticals. It is also the world’s  
only supplier of a unique range of  
products made in the national interest  
for the Australian Government, including  
antivenoms and Q fever vaccine.  
With an integrated manufacturing  
platform and production facilities located  
in the United States (US), Germany,  
Switzerland, Australia and China, we  
use the most sophisticated production  
methods available to meet or exceed  
stringent safety and quality standards  
around the world.  
Seqirus operates state-of-the-art  
production facilities in the US, the  
CSL Plasma, a division of CSL Behring,  
operates one of the world’s largest  
and most efficient plasma collection  
networks, with more than 200 centres  
in the US and Europe. Each step of our  
manufacturing process – from plasma  
donor to patient – reflects CSL Behring’s  
unyielding commitment to ensuring our  
products are safe and effective.  
United Kingdom (UK) and Australia and  
utilises both egg-based and cell-based  
manufacturing technologies as well as a  
proprietary adjuvant. It has leading R&D  
capabilities, a broad and differentiated  
product portfolio and commercial  
operations in more than 20 countries.  
From our family of recombinant  
coagulation products that aim to  
dramatically improve the lives of patients  
with bleeding disorders, to industry-  
4
CSL Limited Annual Report 2018  
RESEARCH AND DEVELOPMENT ꢀR&Dꢁ  
CSL continues to develop innovative  
biotherapies that address unmet medical  
needs or enhance current treatments.  
Global R&D activities support innovation in  
new products and technology, improved  
products and manufacturing expertise  
to ensure our continued growth and  
commitment to fulfil patients’ needs.  
Our balanced research and development  
portfolio includes new therapies that  
align with our commercial and technical  
capabilities in immunoglobulins, specialty  
products, haemophilia and coagulation  
therapies, breakthrough medicines,  
transplant and vaccines.  
CSL Limited Annual Report 2018  
5
Key Business Highlights  
#
CSL continues to deliver on its strategy, with an 11% increase in total revenue. The strength  
of our results reflects the execution of our strategic plan and patient-focussed workforce.  
Strategic Objective  
Strategic Objective  
Strategic Objective  
Strategic Objective  
GROWTH  
EFFICIENCY  
INFLUENZA  
INNOVATION  
Maximize portfolio value &  
deliver new product launches  
Be the most efficient,  
highest quality plasma player  
Deliver on influenza strategy  
Pursue new opportunities to diversify  
portfolio and enhance growth  
#
Immunoglobulin sales up by 11% on the  
prior comparable period.  
CSL Plasma opens 27 new collection  
centres in the US – a growth rate  
unmatched in the industry. Across the US  
and Europe, CSL Plasma now holds more  
than 200 collection centres.  
Seqirus delivers on its commitment to  
achieve profitability just three years after  
the business was formed.  
Approval of immunoglobulin products  
®
®
PRIVIGEN , in the US, and HIZENTRA ,  
in the US and Europe, provides patients  
with a convenient treatment for  
chronic inflammatory demyelinating  
polyneuropathy (CIDP).  
®
IDELVION , recombinant coagulation  
#
factor for the treatment of haemophilia  
B, sales exceeded forecast and is the  
market leader in a number of countries.  
Influenza sales grew 53% , with FLUAD,  
an adjuvanted influenza vaccine,  
#
Launch of a new CSL Plasma donor  
management system.  
reporting sales up by 142% .  
Acquisition of Calimmune provides CSL  
with a promising gene therapy platform.  
Specialty products portfolio grew by  
4% driven by strong performance in  
KCENTRA and HAEGARDA , which  
achieved nearly 50% of the prophylaxis  
hereditary angioedema (HAE) market in  
the United States (US).  
The Holly Springs facility in the US, which  
utilises innovative cell-based technology,  
#
2
Investments in large-scale Group-wide  
capital initiatives, across all regions,  
remain on track.  
®
®
®
quadrupled the number of FLUCELVAX  
CSL and Vitaeris announce strategic  
partnership to support an emerging  
transplant portfolio.  
QUADRIVALENT influenza vaccine doses  
for the US market.  
CSL112, our cardiovascular disease  
Exercised the option to acquire 100% of  
Chinese plasma fractionator.  
product, moves into Phase III clinical trial.  
#
Growth percentages shown at constant currency to remove the impact of exchange rate movements, facilitating comparability of  
operational performance. For further detail please refer to CSL’s Financial Statements for the Full Year ended 2018 (Directors’ Report).  
6
CSL Limited Annual Report 2018  
CSL at a Glance  
+
+
+
US$7.9 Billion  
In annual revenue  
US$2.9 Billion  
3
5
Countries  
In R&D investments in last 5 years  
advances exciting pipeline  
Strategic Objective  
PEOPLE & CULTURE  
Of operations around the world  
Create a culture that attracts,  
retains and develops the best talent  
8
Named one of the world’s Top 50  
employers by Forbes (2017) Global 2000:  
World’s Best Employers.  
Manufacturing sites  
Australia (2)  
China (1)  
Total workforce continues to grow,  
achieving employee engagement index  
scores higher than the global IBM norms.  
Germany (1)  
Switzerland (1)  
United Kingdom (1)  
United States (2)  
New people manager programs  
launched to develop skills and  
capabilities at every stage of their career.  
+
+
+
2
2,000 1,700 200  
Plasma collection centres across  
Europe and North America  
Employees around the world  
R&D employees  
CSL Limited Annual Report 2018  
7
Financial Highlights  
2
017-18  
2017-18  
2016-17  
Reported  
2015-16  
Reported  
2014-15  
Reported  
2013-14  
Reported  
Five-Year  
Summary  
(
1)  
(2)  
All figures are in US$ million unless stated otherwise  
Constant Currency  
Reported  
Total Operating Revenue  
Sales Revenue  
ꢀ,ꢀꢁꢀ  
ꢀ,394  
6ꢂ5  
ꢀ,9ꢁ5  
ꢀ,5ꢂꢂ  
ꢀꢃꢄ  
6,947  
6,616  
667  
6,115  
5,909  
614  
5,612  
5,459  
463  
5,504  
5,335  
466  
R&D Investment  
Profit before Income Tax Expense  
Net Profit after Tax  
ꢄ,ꢄ6ꢃ  
ꢁ,ꢀꢁ3  
ꢄ,ꢄꢂꢁ  
ꢁ,ꢀꢄ9  
ꢁ,9ꢃꢄ  
99ꢄ  
1,690  
1,337  
1,247  
861  
1,556  
1,242  
1,179  
566  
1,714  
1,379  
1,364  
414  
1,604  
1,307  
1,361  
402  
Net Cash Inflow from Operating Activities  
Capital Investment  
3
Return on Invested Capital (%)  
Basic Earnings per Share ($)  
Dividend per Share ($)  
ꢄ5.9  
24.5  
26.8  
31.7  
31.8  
3.ꢂꢄꢄ  
ꢁ.ꢀꢄꢃ  
2.937  
1.360  
2.689  
1.260  
2.923  
1.240  
2.701  
1.130  
1
Constant currency removes the impact of exchange rate movements, facilitating comparability of operational performance. For further details please refer to CSL’s Financial  
Statements for the Full Year ended 2018 (Directors’ Report).  
2
3
The Group’s reported results are in accordance with the Australian Equivalents to International Financial Reporting Standards (A-IFRS).  
2016 figure includes the gain on acquisition of Novartis’ global influenza vaccine business of US$176.1 million.  
8
CSL Limited Annual Report 2018  
DIVIDENDS  
Interim Unfranked  
Final Unfranked  
Total Ordinary  
Our Financial  
Performance  
dividend of  
dividend of  
dividends 2018-17  
US$  
US$  
US$  
0
ꢅ7ꢆ + 0ꢅꢆꢇ = 1ꢅ72  
per share (  
1)  
per share  
per share  
CSL EARNINGS  
PER SHARE ꢀUS$ꢁ  
CSL R&D INVESTMENT  
ꢀUS$ MILLIONSꢁ  
CSL TOTAL OPERATING  
REVENUE ꢀUS$ MILLIONSꢁ  
CSL NET PROFIT  
ꢀUS$ MILLIONSꢁ  
2
.70 2.92 2.69 2.94 3.82  
466  
463  
614  
667  
702  
5,504 5,612 6,115 6,947 7,915  
13-14 14-15 15-16 16-17 17-18  
1,307 1,379 1,242 1,337 1,729  
13-14 14-15 15-16 16-17 17-18  
1
3-14 14-15 15-16 16-17 17-18  
13-14 14-15 15-16 16-17 17-18  
1
For shareholders with an Australian registered address, dividends will be paid in A$ at an amount of A$1.278192 per share (at an exchange rate of A$1.3744/US$1.00),  
and for shareholders with a New Zealand address, dividends will be paid in NZD at an amount of NZ$1.408671 per share (at an exchange rate of NZ$1.5147/US$1.00).  
CSL Limited Annual Report 2018  
9
Year in Review  
CSL business operations reported here  
include CSL Behring, Seqirus and our  
global R&D activities.  
HIZENTRA was granted marketing  
authorisation to treat CIDP by the  
European Commission (EC)  
diagnosis and treatment of primary and  
secondary immunodeficiencies, CIDP,  
and competitor supply constraints, have  
contributed to this impressive growth.  
DIVIDENDS AND  
FINANCIAL RESULTS  
in March 2018. The US approval and  
launch followed that same month, and  
since that time Europe has begun the  
commercial launch in eight key markets  
including the reimbursement process  
for Belgium, France, Italy and Spain.  
HIZENTRA represents the first and only  
subcutaneous immunoglobulin for  
maintenance therapy to treat CIDP, a rare  
and serious autoimmune disorder that  
affects the peripheral nerves and may  
cause permanent nerve damage. New  
patient starts and patients converting  
from intravenous immunoglobulins (IVIg)  
are also key drivers of HIZENTRA growth.  
CSL BEHRING  
CSL’s reported net profit  
after tax was US$1,729 million  
for the year ended 30 June  
Our specialty products grew 24% in  
constant currency terms to sales of  
US$1,490 million. Sales of KCENTRA ,  
CSL Behring’s focused execution  
delivered outstanding results for the year.  
Total sales in constant currency grew 10%  
over the previous year to US$6.6 billion  
with sales increases at constant currency  
of 11% for immunoglobulins, 24% for the  
specialty portfolio, 7% for albumin, and  
®
4
Factor Prothrombin Complex  
2018. On a constant currency  
Concentrate, in the US were particularly  
solid driven by our team’s effort to  
achieve deeper penetration into  
basis, net profit after tax was  
US$1,713 million.  
®
targeted accounts. RESPREEZA , a  
5% for haemophilia products.  
maintenance treatment for severe  
alpha-1 antitrypsin deficiency, continued  
to grow in Europe due to further strong  
uptake, aided also by competitor supply  
disruptions in France. RESPREEZA has  
been shown to slow the progression  
of hereditary emphysema. Europe  
On 13 April 2018, CSL  
shareholders received an  
interim unfranked dividend  
of US$0.79 per share. A  
final unfranked dividend of  
US$0.93 per share will be  
paid on 12 October 2018. Total  
ordinary dividends for the  
year were US$1.72 per share.  
Immunoglobulins (Ig) represent our  
largest therapy area and contributed  
sales of US$3,145 million, up 11% in  
constant currency over last year. Sales  
were driven largely by increased  
demand across the globe. Sales of  
our subcutaneous immunoglobulin  
IVIg sales growth was underpinned by  
®
®
solid global demand for PRIVIGEN ,  
saw growth of BERINERT , C1-esterase  
Immune Globulin Intravenous (Human)  
inhibitor concentrate, in the treatment  
of HAE aided also by competitor supply  
disruptions in Europe.  
®
product, HIZENTRA , Immune Globulin  
10% Liquid, with sales up 13% in constant  
Subcutaneous (Human) 20% liquid,  
increased by 12% at constant currency,  
fuelled by strong demand in primary  
immunodeficiency (PID), as well as  
its expanded indication to treat CIDP.  
currency over the prior comparable  
period. Excellence in execution, a  
focused approach to growth in the non-  
acute segments, as well as increased  
10  
CSL Limited Annual Report 2018  
During 2017/18 we successfully launched  
HAEGARDA , C1 Esterase Inhibitor  
IDELVION saw robust demand and  
the product is now launched in 12  
countries; it is quickly becoming the  
new standard of care for haemophilia  
B patients. IDELVION delivers high-  
level protection, maintaining factor IX  
activity levels above 5% in most patients  
over 14 days, resulting in a median  
annualised spontaneous bleeding rate  
of zero. Appropriate patients can go up  
to two weeks between infusions and  
achieve excellent bleeding control. The  
flexibility to reduce their dosing cycle is  
an important attribute for patients who  
require a prophylactic regimen but don’t  
want treatment to disrupt their active  
lives.  
CSL Behring’s portfolio of albumin  
products yielded sales of US$921 million,  
an increase of 7% at constant currency,  
primarily driven by strong ongoing global  
demand. Our team in China delivered  
another remarkable year of albumin  
growth, up 11% fuelled by ongoing  
successful sales penetration into lower  
tier cities and hospitals.  
In an effort to sustain future growth, we  
invested almost US$1 billion in capital to  
expand our manufacturing capabilities  
across all regions, strengthening our  
global manufacturing footprint and ability  
to secure the reliable supply of therapies.  
®
Subcutaneous (Human), in the US, a  
transformational therapy for adolescent  
and adult patients with HAE. HAEGARDA,  
the first and only subcutaneous C1  
esterase inhibitor therapy, garnered  
nearly half the prophylaxis HAE market in  
its first year, and provides unprecedented  
reduction in oedema attacks and  
significantly reduces the need for rescue  
medication.  
In Australia, 2018 commenced under  
the newly signed national fractionation  
agreement for Australia (NaFAA) - a  
new nine-year agreement with the  
National Blood Authority to continue to  
manufacture a range of products from  
plasma collected by the Australian Red  
Cross Blood Service.  
CSL completed its acquisition of plasma-  
derived therapies manufacturer Wuhan  
Zhong Yuan Rui De Biological Products  
Co. Ltd. from Humanwell Healthcare  
Group Co. Ltd in August 2017. The  
acquisition provides CSL with a strategic  
presence in the Chinese domestic  
plasma fractionation market and  
complements the leadership position  
that CSL Behring has built over the  
past 20 years as a provider of imported  
albumin in China.  
Overall, the haemophilia product  
franchise increased 5% in constant  
currency, versus the prior year to  
US$1,113 million. Growth in this franchise  
was due predominantly to the strong  
uptake of our recombinant therapy  
Overall, our results for the 2017/18 fiscal  
year reflect our market leadership  
positions around the world, and  
robust demand for our differentiated  
products. Investments in production and  
commercial capabilities have positioned  
us well for sustainable growth and to  
continue to deliver on our promise to  
patients with rare and serious diseases.  
This year we also launched AFSTYLA in  
Japan, which complements the launch of  
IDELVION in the previous year. AFSTYLA,  
the first and only single-chain product for  
haemophilia A, is specifically designed  
for long-lasting protection from bleeds  
with the ability to dose twice weekly.  
Both products are delivering solid  
uptake with ongoing approvals in various  
countries and launches planned in the  
coming year.  
®
IDELVION , Coagulation Factor IX  
(
Recombinant), Albumin Fusion  
®
Protein, as well as sales of AFSTYLA ,  
Antihemophilic Factor (Recombinant),  
Single Chain, in new and  
CSL Behring also continues to invest in  
state-of-the-art manufacturing facilities  
around the world to meet growing  
demand for its products, increase  
efficiency and support its cohesive global  
manufacturing network.  
existing markets.  
CSL Limited Annual Report 2018  
11  
Year in Review continued  
®
SEQIRUS  
continues to have one of the broadest  
and most differentiated influenza vaccine  
portfolios in the industry.  
AFLURIA QUADRIVALENT achieved an  
tender in Mexico for the first time. We  
established a stronger presence with the  
opening of the Seqirus Argentina office,  
investing in the future growth of this  
significant market.  
expanded age indication for use in people  
from 5 years and above in the US for the  
NH 2017/18 season, and similar approvals  
were achieved for AFLURIA TETRA and  
When Seqirus was established three  
years ago, we set out an ambitious  
agenda to turn the business around  
and achieve a break even result by  
The accelerated development of cell-  
based manufacturing technology at our  
state-of-the-art facility in Holly Springs  
enabled us to deliver approximately  
20 million doses of FLUCELVAX  
®
AFLURIA QUAD in Canada and Australia.  
2017/18. Seqirus has not only delivered  
In the UK, we achieved regulatory  
We were also first to market in Australia  
with AFLURIA QUAD for the 2018 season,  
reinforcing Seqirus as a reliable local  
partner, and went back into production at  
the request of the Australian Government  
to meet unprecedented demand for  
influenza vaccine following the severe  
season in 2017.  
on this commitment, but has exceeded  
its financial targets, posting an EBIT of  
US$52 million. We’ve built a strong global  
business that serves a significant public  
health need and is well positioned for  
future growth and success.  
approval for our adjuvanted influenza  
®
vaccine FLUAD and a subsequent  
®
QUADRIVALENT to the US market for  
preferential recommendation by public  
health authorities. This means FLUAD  
will be the only influenza vaccine used  
in the 65 years and above population  
in the UK next season. The Australian  
health authorities also recognised the  
clinical importance of FLUAD for the  
older adult population, fast tracking  
the introduction of the vaccine into the  
National Immunisation Program for the  
2018 season.  
the NH 2017/18 season, representing a  
four-fold increase in output in just two  
years. Ongoing process innovation  
will help us meet increased demand  
for the vaccine in the US, support  
Total revenue for the reporting period  
totalled US$1,088 million, representing  
constant currency growth of 16%  
compared to the prior year. Seasonal  
influenza vaccine sales in the US  
continued to generate the majority of our  
revenue with solid contributions from our  
global pandemic franchise as well as our  
vaccine and pharmaceutical in-licensing  
business in Australia and New Zealand.  
commericalisation plans in Europe and  
further strengthen pandemic response.  
Our in-licensing division in Australia  
and New Zealand also performed well  
during the period with the launch of  
GARDASIL 9, Human Papillomavirus  
-valent Vaccine, Recombinant; the  
continuation of the ZOSTAVAX™ shingles  
vaccine on the National Immunisation  
Program; and strong growth of PALEXIA  
in the pain portfolio. We also announced  
new in-licensing agreements for hay fever  
and ophthalmology products.  
Seqirus was also successful in using a  
cell-derived H3N2 candidate vaccine  
virus in the production of the NH  
2017/18 formulation of FLUCELVAX  
QUADRIVALENT, making the end-to-  
end production of this particular strain  
exclusively cell-based. There is strong  
scientific rationale to suggest that  
cell-based technology may potentially  
overcome the challenges of egg-based  
influenza virus mutations, leading to  
higher vaccine effectiveness.  
®
9
We experienced strong growth in our  
global pandemic franchise through  
extending a number of agreements  
for pandemic preparedness with  
governments around the world. There  
is increasing interest in our proprietary  
adjuvant, MF59, for its ability to boost  
immune response and its dose-sparing  
benefits. Our new purpose-built  
®
The most significant driver of growth was  
the ongoing shift in our product mix from  
standard trivalent influenza vaccines to  
cell-based quadrivalent and adjuvanted  
products, particularly in the US. Seqirus  
In Latin America, Seqirus successfully  
delivered on our AGRIPPAL , influenza  
vaccine, commitments in Argentina  
and won a seasonal influenza vaccine  
®
laboratories in Cambridge, Boston,  
12  
CSL Limited Annual Report 2018  
Operators at Seqirus’ Liverpool site. This year,  
Seqirus announced a £40 million investment  
for a new fill and finish facility at our UK  
Liverpool site, planned for 2020.  
expansion project in Holly Springs and  
completed the first FLUAD formulation in  
Holly Springs for the US market.  
vaccine to the Texas Department of  
State Health Services, to help displaced  
residents fight the onset of influenza.  
We also donated €250,000 to the Global  
Initiative for Sharing of Influenza Data  
High Commission, and the Charles  
Campbell Toxinology Centre (CCTC), at  
the University of PNG. PNG has some of  
the highest rates of snakebite mortality  
in the world and Seqirus will provide  
an annual donation of 600 vials of  
antivenoms, with an approximate value of  
more than A$1 million annually, as part of  
a holistic program that will include secure  
warehousing, cold-chain distribution  
and data collection on snake bites and  
antivenom use to help improve the  
program.  
achieved special certification during the  
period enabling it to respond to public  
health emergencies requiring biologics  
(BSL3) agent containment.  
As part of our corporate responsibility  
efforts, Seqirus continued its support for  
the Pandemic Influenza Preparedness  
Framework operated by the World  
Health Organization, which aims to  
build pandemic preparedness capacity  
in low and middle income countries. In  
response to Hurricane Harvey, Seqirus  
donated 22,500 doses of influenza  
During the period, Seqirus announced  
a £40 million investment for a new fill  
(GISAID) to support open and rapid  
sharing of genetic data for influenza  
viruses.  
&
finish facility at our UK Liverpool site,  
planned for 2020. Bringing this important  
capability in-house will help meet  
growing demand for FLUAD, strengthen  
reliability of supply and further  
strengthen pandemic response. We also  
announced a US$9 million warehouse  
Additionally, Seqirus entered a new  
partnership to help save the lives of  
people bitten by venomous snakes in  
Papua New Guinea (PNG), with the PNG  
Department of Health, the Australian  
CSL Limited Annual Report 2018  
13  
Year in Review continued  
RESEARCH AND DEVELOPMENT  
on our deep knowledge and expertise  
of HAE and plasma derived C1-INH, CSL  
aims to leverage CEVEC’s expertise in the  
production of recombinant C1-INH using  
dose. IDELVION is currently licensed  
for treatment intervals of up to 14 days.  
An ongoing Phase III extension study  
(PROLONG-9FP) is currently evaluating  
the possibility of extending the dosing  
interval to every 21 days. Global regulatory  
submissions to gain approval of the  
extended dosing regimen are planned  
for 2019.  
Over the past year we have continued to  
make strong progress in our breakthrough  
medicine portfolio with the completion  
of two Phase I trials and the initiation of a  
third using three of CSL’s novel monoclonal  
antibodies. CSL312 is a fully human  
anti-factor XIIa monoclonal antibody  
that is being studied for use in multiple  
indications, including as a subcutaneous  
therapy for HAE with the potential for  
administration once every two to three  
weeks. A Phase I study in healthy volunteers  
was completed in November 2017 and  
confirmed that CSL312 is safe and well  
tolerated with good bioavailability. A  
Phase II trial designed to evaluate the  
efficacy, safety and pharmacokinetics of  
CSL312 in the prophylaxis of angioedema  
attacks in HAE patients is anticipated to  
start in 2018/19.  
CSL’s global R&D activities focus on the  
development of innovative new and  
improved products and manufacturing  
processes thereby ensuring our continued  
growth. Our R&D portfolio is divided into  
five strategic areas – specialty products,  
haemophilia, breakthrough medicines,  
immunoglobulins and transplant. Over the  
past year, we have achieved successes in all  
five strategic areas with new registrations,  
exciting new collaborations, positive results  
in our clinical trials and the initiation of the  
largest clinical trial ever undertaken by CSL.  
®
their proprietary CAP Go technology.  
The technology provides the opportunity  
to develop innovative proteins with  
improved half-life and more convenient  
administration, further improving the  
quality of life for patients suffering  
from HAE.  
BREAKTHROUGH MEDICINES  
Our commitment to remain at the  
HAEMOPHILIA  
forefront of innovation is stronger than ever.  
In August 2017, CSL acquired Calimmune  
Inc., a biotechnology company focused on  
the development of gene and stem cell-  
based therapies. The acquisition introduced  
a new ex vivo haematopoietic stem cell  
gene therapy (CAL-H) for the treatment of  
sickle cell disease into our breakthrough  
medicines pipeline. Clinical trials using  
CAL-H are anticipated to start in 2019. In  
addition, Calimmune’s proprietary platform  
technologies have the potential to develop  
new treatments for a wide range of other  
rare diseases that complement CSL’s  
product portfolio and expertise.  
CSL remains focused on easing the  
burden of care and improving the lives of  
haemophilia patients. In September 2017,  
Japan’s Ministry of Health, Labour and  
Welfare approved AFSTYLA.  
SPECIALTY PRODUCTS  
CSL’s HAEGARDA, the first subcutaneous  
preventative treatment for patients with  
HAE, represents a new standard of care  
for HAE patients, reducing HAE attacks by  
In May 2018, the FDA approved a new  
3500 IU vial size for IDELVION, our long-  
acting fusion protein linking recombinant  
coagulation factor IX with recombinant  
albumin for the treatment of haemophilia  
B. For patients requiring high doses of  
IDELVION, the larger vial size will reduce  
the reconstitution time needed to  
CSL324 neutralises G-CSF activity and  
may provide a new treatment for rare  
inflammatory diseases associated with  
overactive neutrophils (white blood cells).  
The completion of a Phase I trial in healthy  
volunteers in January 2018 demonstrated  
that CSL324 can block receptors and lower  
neutrophil counts. A subsequent Phase Ib  
trial in patients with neutrophil-driven  
95% and the need for rescue medication  
by 99%. In order to remain at the forefront  
of innovation in HAE treatment, in May  
2018, CSL announced an exclusive license  
agreement with CEVEC Pharmaceuticals  
to develop highly differentiated  
recombinant C1-INH proteins. Building  
prepare multiple smaller vials for a similar  
14  
CSL Limited Annual Report 2018  
disease is anticipated to start in 2018/19  
and aims to show proof of mechanism  
of this novel product.  
CSL346 targets VEGF-B and could  
potentially be used to control glucose  
absorption in Type 2 diabetics by targeting  
fatty acid metabolism. CSL346 may also  
be beneficial in the treatment of diabetic  
nephropathy, one of the most common  
kidney complications associated with  
Type 2 diabetes, where VEGF-B levels  
have been shown to be elevated in  
patients. A Phase I trial in healthy volunteers  
commenced in November 2017 in order  
to demonstrate that CSL346 is safe and  
well tolerated.  
In March 2018, the US  
FDA and the European  
Medicines Agency granted  
®
approval for HIZENTRA  
(
Immune Globulin  
Subcutaneous [Human],  
0% liquid) to treat CIDP.  
2
Collaboration with external partners  
continues to provide CSL with important  
new opportunities to develop novel  
In the largest ever clinical study to  
IMMUNOGLOBULINS  
investigate the treatment of CIDP and  
the first to evaluate the subcutaneous  
administration of Ig for the treatment  
of CIDP (the Polyneuropathy And  
Treatment with Hizentra or PATH study),  
HIZENTRA maintained stable disease  
and prevented relapse for up to 24 weeks.  
The subcutaneous formulation will allow  
patients the flexibility to self-administer  
their treatment at a time, place and  
schedule that’s convenient for them.  
The largest clinical trial ever to be  
The expansion of our Ig portfolio continued  
over the past year with successful  
undertaken by CSL was announced in  
December 2017. CSL112 is a novel plasma  
derived apolipoprotein A-1 infusion therapy  
that has been shown to have an immediate  
and significant impact on the removal  
of cholesterol from arteries. The ApoA-1  
Event reducinG in Ischemic Syndromes II  
therapies for patients and address areas  
of unmet medical need. In January 2018,  
CSL and Momenta Pharmaceuticals, Inc.  
announced the initiation of a Phase I study  
in healthy volunteers to evaluate the safety  
and tolerability of the potential first-in-  
class recombinant Fc multimer protein  
M230/CSL730 in development to control  
inflammation associated with autoimmune  
diseases. Preclinical studies in animal  
regulatory approvals in neurology. In  
September 2017, the US FDA approved  
PRIVIGEN for the treatment of CIDP, a  
rare and progressing disease that may  
cause permanent nerve damage. The FDA  
approval represents a significant milestone  
for patients with this debilitating and  
progressive disease.  
(AEGIS-II) Phase III trial will enrol over 17,000  
patients from approximately 1,000 medical  
centres around the world (please see page  
32 for more information).  
CSL Limited Annual Report 2018  
15  
Year in Review continued  
models of autoimmune disease have  
shown that CSL730 matched potency and  
efficacy of intravenous immunoglobulin at  
significantly lower doses. CSL730 offers CSL  
the potential to further grow and expand  
our long-term global leadership in helping  
patients with autoimmune diseases that  
are treated with immunoglobulins.  
additional C1-esterase inhibitor to  
patients after solid organ transplantation  
is expected to reduce the action of the  
complement system, therefore reducing  
the likelihood of the transplanted organ  
being rejected. CSL’s plasma-derived C1-  
INH, registered as BERINERT, has been  
used clinically for over 30 years, and has  
an excellent safety record in both acute  
and chronic prophylactic therapies for  
HAE. In October 2017, we received orphan  
designation in Europe for the use of human  
C1-INH in solid organ transplantation to  
control rejection. In November 2017, CSL  
initiated a Phase III trial to evaluate the  
efficacy and safety of plasma-derived C1-  
INH (CSL842) in the treatment of refractory  
AMR in renal allograft recipients.  
Research and  
Development  
Investment  
TRANSPLANT  
Solid organ transplantation is a complex  
procedure as the organ to be transplanted  
may become damaged due to the  
interruption and restoration of blood supply  
to the organ. In addition, graft rejection  
can occur after transplantation when the  
patient’s immune system recognises the  
transplanted organ as ‘foreign’ and attacks  
it, resulting in potentially debilitating and  
life-threatening complications.  
4
66m  
463m  
614m  
667m  
702m  
New Product Development  
activities focus on innovative  
new therapies for  
life-threatening diseases.  
Market Development  
strategies seek to bring  
therapies to new markets  
and new indications.  
In December 2017, CSL and Vitaeris  
announced a strategic partnership to  
expedite the development of clazakizumab  
Antibody-mediated rejection (AMR) is a  
major cause of kidney transplant failure  
and is often associated with the activation  
of complement, a set of proteins that  
work with antibodies and play a role in the  
development of inflammation and tissue  
damage. C1-esterase inhibitor (C1-INH)  
present in human plasma regulates the  
complement pathway. Administering  
(an anti-IL-6 mAb, formerly ALD518)  
Life Cycle Management  
ensures continuous  
improvement of existing  
products.  
as a therapeutic option for solid organ  
transplant rejection. Clazakizumab is a  
best-in-class IL-6 antagonist that has been  
studied in clinical trials involving over one  
thousand patients worldwide. IL-6-driven  
chronic inflammation has been implicated  
in the development of AMR, and a clinical  
*
Includes R&D for CSL Behring and Seqirus.  
1
3-14  
14-15  
15-16*  
16-17*  
17-18*  
16  
CSL Limited Annual Report 2018  
study to further evaluate the role of IL-6  
blockade as a means to preserve renal  
function and prevent renal allograft loss  
from AMR is anticipated to start later in  
Investment in R&D remains a key driver  
for CSL’s future growth. We have a  
CORPORATE RESPONSIBILITY  
In November 2017, CSL published its ninth  
Corporate Responsibility (CR) Report,  
detailing our performance across key  
sustainability topics. Our latest report  
adopted the Global Reporting Initiative’s  
(GRI) G4 reporting framework, the leading  
global framework for sustainability  
reporting. A full version of the report,  
including detailed disclosure of our  
material sustainability topics, is available  
at CSL.com.  
In August 2017, Hurricane Harvey, a  
Category 4 storm, struck the east coast  
of the US causing an estimated US$125  
billion in damages. With operations and  
employees in affected areas, such as  
Greater Houston, Texas, CSL committed  
US$150,000 in support of relief efforts and  
matched in full a further US$25,195 raised  
by employees. A total of US$200,391 was  
donated to United Way of Greater Houston  
to support families and individuals affected  
by the second costliest hurricane to hit  
the US.  
high quality and potentially valuable  
portfolio of projects in various stages  
of development. We continue to make  
a balanced investment in the life cycle  
management and market development  
of existing products that bring short to  
mid-term commercial benefits, and we  
make strategic investments in longer term,  
higher risk and high opportunity new  
product development activities. In 2017/18,  
CSL invested US$702 million on R&D and  
was supported by an R&D workforce of  
approximately 1,700 scientists worldwide.  
2018. Our expertise in immunology, our  
pipeline and strategic partnerships are full  
of promise to address unmet needs in the  
transplant community.  
VACCINES  
Our Seqirus R&D team continued to  
advance the pipeline during the period,  
which is critical to future growth. Key  
clinical trials are underway to support the  
registration of FLUAD QUADRIVALENT  
in the older adult population and to  
expand the age indication of FLUCELVAX  
QUADRIVALENT down to six months.  
We also have a number of research and  
development programs in place to further  
optimise our adjuvant and cell-based  
technologies. Seqirus also has early stage  
collaborations that are exploring other  
transformational approaches including  
universal projects, synthetic technology  
and new delivery devices.  
Also in 2017, following participation in  
the CDP (formerly the Carbon Disclosure  
Project), CSL achieved a B for its submission  
to CDP water and a C for its climate  
Over the reporting period, CSL remained  
a FTSE4Good index constituent and  
became a constituent of the Dow  
Jones Sustainability Index Asia Pacific.  
These global indices recognise strong  
environmental, social and governance  
(ESG) performance that assists investors  
with investment decisions.  
impacts submission. CDP is a not-for-profit  
organisation that runs a global disclosure  
system enabling companies, cities, states  
and regions to measure and manage their  
environmental impacts, while providing  
investors with the most comprehensive  
environmental data for informed decision  
making. CSL is one of few Australian  
companies that has supported CDP  
water with annual submissions since its  
inception in 2012. Our participation in  
both initiatives demonstrates a continued  
commitment to measuring and assessing  
our environmental impacts.  
CSL Limited Annual Report 2018  
17  
Year in Review continued  
OUR PEOPLE  
where the best and brightest can succeed  
and where individual’s professional and  
personal lives are respected.  
allow them to develop their skills through  
both instructor-led and virtual learning  
experiences on a range of topics, including  
building effective teams, coaching,  
managing change, and delivering  
effective feedback. Leaders were also  
invited to leadership days at locations  
around the world as an opportunity  
to continually enhance their personal  
leadership skills. The program included  
management discussions, external  
thought leaders, networking opportunities,  
and development resources. We also  
pay special attention to our talent by  
requiring managers to create development  
plans and provide career coaching to  
enhance their overall career experience.  
All employees are also encouraged to  
complete an online career profile to  
share their career experiences and future  
interests as a way of further supporting  
meaningful development conversations  
with their manager.  
CSL is passionate about keeping its  
promises – to patients, communities  
and employees. CSL employees are  
A key underpinning of our Promising  
Futures employee brand is the investment  
we make in the growth, learning and  
development of our people. Over the past  
year, CSL introduced global leadership  
capabilities to provide guidance around  
the capabilities expected at every stage of  
a leader’s career from first line manager  
to executive. We also introduced training  
programs for our people managers that  
committed to saving lives and protecting  
the health of people around the world  
every day. In return, we are committed to  
creating a workplace environment where  
employees can fulfill their individual career  
aspirations and potential and are inspired  
by a purpose-driven organisation with a  
values-based culture. CSL works to foster  
a collaborative and innovative workplace  
To help ensure we are living up to our  
commitment to employees, we conduct  
an employee feedback survey twice a year  
to solicit feedback on everything from  
CSL Values  
Patient Focus  
We deliver on our promise to patients.  
Innovation  
We turn innovative thinking  
into solutions.  
Integrity  
We walk the talk.  
Collaboration  
We are stronger together.  
Superior Performance  
We take pride in our results  
18  
CSL Limited Annual Report 2018  
decision-making and development to  
whether or not we are living the CSL values.  
In the most recent survey conducted in  
April/May 2018, CSL employee engagement  
index is three points above global IBM  
norms. Our employees report being very  
proud to work for the company and they  
believe that there is a promising future for  
them at CSL.  
Recognition of note includes being named  
one of the world’s Top 50 employers  
Journal. In addition, East Coles Australia  
recognised CSL with a 2017 Best Investor  
Relations Award (out of the S&P/ASX100)  
and the Global Equity Organization  
awarded CSL with the “2018 Best Plan  
Effectiveness” award.  
OUR THANKS  
It has been a full and rewarding year driven  
by the commitment of our employees.  
Your Board of Directors recognises  
the continued focus of our expanding  
workforce on delivering against our  
strategic objectives and in their dedication  
to applying our Group Values as the guide  
for achieving sustainable growth.  
by Forbes and one of Australia’s top 20  
most innovative companies. Kankakee,  
in the US, was the proud recipient of the  
Pinnacle Award from United Way for their  
community fundraising efforts. We also  
received the Patient Impact Award from  
Life Sciences Pennsylvania for developing  
HAEGARDA and Healthcare Innovator  
of the Year by the Philadelphia Business  
CSL continues to have gender, ethnic and  
generational diversity in our workforce.  
Further information regarding CSL’s  
We are proud of the external recognition  
that our talented people and innovative  
workplace and programs have earned.  
diversity position can be found at CSL.com.  
John Shine AC  
Paul Perreault  
Chairman  
Chief Executive Officer  
and Managing Director  
CSL Limited Annual Report 2018  
19  
CSL Behring  
PROFILE  
CSL Behring has been at the forefront of biotherapeutics research and development for more than  
100 years. Our roots are traced to Emil von Behring, the first Nobel Prize recipient in physiology and  
medicine. CSL Behring and the collective group of CSL businesses have a heritage of outstanding  
contributions to medicine and human health.  
Throughout the years our passion  
and commitment to delivering on our  
promise to save and improve the lives  
of people with rare and serious diseases  
has remained strong. We are proud of  
our history, and we’re excited about the  
future.  
Our products are used around the world  
to treat the following conditions:  
We work with patient groups, plasma  
donors, researchers, physicians, nurses,  
pharmacists and home healthcare  
companies to achieve better results.  
This includes promoting quality care,  
improving patient access to care,  
expanding educational and outreach  
efforts, and affecting public healthcare  
policy.  
• Paul Perreault, CEO & Managing  
Director, receives 2018 Humanitarian of  
the Year Award from the Hemophilia  
Association of New Jersey, USA;  
immunodeficiency and autoimmune  
diseases;  
the 2017 Industry Innovation Award  
presented by the National Organization  
for Rare Disorders (NORD);  
hereditary bleeding disorders;  
hereditary angioedema;  
alpha-1 antitrypsin deficiency;  
neurological disorders;  
the 2017 Journal Progress Award for  
Innovation in Manufacturing  
Our ability to innovate and deliver  
lifesaving products for patients with  
unmet medical needs around the world  
continues to grow in response to the  
demand for our products.  
transplantation; and  
RECOGNISED AND RESPECTED BY  
PATIENT, INDUSTRY AND BUSINESS  
ORGANISATIONS WORLDWIDE  
• the 2017 Healthcare Innovator of  
the Year Award presented by the  
Philadelphia Business Journal;  
• critical care.  
WE ARE PATIENTꢂFOCUSED  
We strive to be the best at what we do,  
and we are proud that our pioneering  
work in developing therapies to treat  
rare and serious conditions has received  
recognition from patient organisations  
and others worldwide. This includes:  
• the 2016 Innovator Break-Through  
Award presented by Marcum and  
SmartCEO magazine;  
Today, we are one of the largest and  
fastest-growing protein biotherapeutics  
businesses in the world, delivering  
medicines to patients in more than 60  
countries. We offer the broadest range of  
quality plasma derived and recombinant  
therapies in the protein biotherapeutics  
industry, and have substantial markets  
in North America, Europe, Asia, Latin  
America and Australia.  
Our patients are our focus. The people  
who trust and rely on our products come  
first in everything we do. We are keenly  
aware that our therapies are essential  
to their health and well-being, and we  
bring that sense of purpose to work every  
day. We are passionate about meeting  
the needs of our customers, which  
begins with listening to them and their  
healthcare providers.  
• the National Hemophilia Foundation’s  
2015 Leadership Award, and  
• Best Places to Work awards in  
Switzerland, Germany and Italy in 2015.  
• being listed among the Top 50  
employers in the world by Forbes  
magazine;  
The thousands of talented employees at  
CSL Behring who share our vision, values  
and passion for saving lives are the engine  
that drives our superior performance.  
20  
CSL Limited Annual Report 2018  
Major Therapeutic Products  
Marketed by CSL Behring  
BROADEST RANGE OF THERAPIES TO  
TREAT RARE DISEASES  
HAEMATOLOGY  
IMMUNODEFICIENCY DISEASES  
Plasma-derived Factor XIII  
®
®
®
Intravenous Immunoglobulins  
RECOMBINANT THERAPIES  
Corifact / Fibrogammin P / Cluvot  
Privigen®  
Carimune NF  
Sandoglobulin / Sanglopor  
Intragam 10  
CSL Behring is a global leader in  
immunoglobulins (Ig). Our portfolio of  
innovative medicines includes a wide  
range of recombinant and plasma-  
derived products for treating bleeding  
disorders, and our specialty products treat  
hereditary angioedema and inherited  
respiratory disease.  
Other Products  
Factor VIII Single Chain  
®
AFSTYLA®  
Stimate®  
Octostim*  
®
®
Recombinant Factor IX  
Albumin Fusion Protein  
®
®
Intragam P  
SPECIALTY CARE  
IDELVION®  
Evogam®  
C1-Esterase Inhibitor  
Factor VIII  
Subcutaneous Immunoglobulins  
Hizentra®  
Berinert®  
®
Helixate FS  
Haegarda®  
®
Helixate NexGen  
Specific Immunoglobulin  
Prothrombin Complex Concentrates  
Iblias®  
CSL Behring also manufactures critical  
care products that are used in cardiac  
surgery and organ transplantation, and to  
treat trauma, shock, burns and acquired  
bleeding. They are also used to reverse  
the effects of warfarin and to prevent  
haemolytic disease in newborns.  
®
®
®
®
Beriglobin P  
Berirab P  
Beriplex P/N / Confidex / Kcentra /  
®
PLASMA-DERIVED THERAPIES  
®
Prothrombinex – VF  
®
Hepatitis B Immunoglobulin P Behring  
Factor VIII and von Willebrand Factor  
Fibrinogen Concentrate  
®
Rhophylac  
Beriate®  
®
Haemocomplettan P  
®
Tetagam P  
®
Monoclate P  
®
Albumin Management  
Varicellon P  
Humate P®  
Cytogam®  
Albuminar®  
Alburex / AlbuRx / Albumex  
®
Haemate P  
Voncento  
®
®
®
®
TOLL FRACTIONATION  
WORLDꢂCLASS R&D: UNLOCKING THE  
PROMISE OF PROTEINS  
®
Human Albumin Behring  
Biostate  
CSL Behring performs plasma  
fractionation for Australia, Canada,  
Denmark, Hong Kong, Malaysia, New  
Zealand, Singapore and Taiwan  
Humanalbin®  
Aleviate®  
Innovation has been in our DNA since  
Plasma-derived Antithrombin III  
Concentrate  
Factor IX  
1916 and continues at the core of  
®
Berinin P  
Mononine  
®
everything we do today. Our integrated  
R&D global organisation is driven by an  
experienced team of research experts  
who work collaboratively at worldwide  
locations. They continually explore new  
innovations to unlock the promise of  
biotherapies. Their contributions to  
medicine and human health have been  
possible because we continually grow our  
investment in R&D.  
®
Kybernin P  
®
*
Octostim is a trademark of Ferring  
GmbH  
MonoFIX ꢀVF  
Other Products  
Factor I (Fibrinogen)  
Woundꢀhealing therapies are used to  
facilitate healing.  
** Tachocomb is a trademark of Nycomed  
®
Haemocomplettan P / RiaSTAP®  
®
Beriplast P CombiꢀSet  
Factor X  
Product availability varies from country to  
country, depending on registration status.  
®
Fibrogammin P  
Tachocomb**  
Factor X P Behring®  
For more information about these  
products, see CSLBehring.com  
PULMONOLOGY  
®
®
Respreeza / Zemaira  
CSL Limited Annual Report 2018  
21  
CSL Behring Profile continued  
The consumption of immunoglobulins,  
which is 10 to 15 times lower per capita  
in Russia than in the US and some  
CSL Behring’s response to this challenge  
has been to forge lasting partnerships  
that will offer meaningful solutions and  
support patients with rare and serious  
conditions. This includes exploring  
opportunities to partner with the  
Russian Government and contribute  
to the development of the Russian  
pharmaceutical industry.  
CSL Behring’s licensed portfolio also  
continued to grow in 2017 with the  
CSL Behring  
®
Meeting Growing  
Need for Novel  
Therapies in Russia  
launch of two therapies – RHESOGAM ,  
intravenous Rh-d immune globulin,  
European countries, is another indicator  
of unmet need. It is explained by several  
factors including poor diagnostics, lack  
of medical application knowledge by  
health care providers (HCPs), diminished  
access to care caused by a restricted  
supply of plasma from local sources, and  
pricing barriers for imported products.  
®
and COAPLEX , human prothrombin  
complex, increasing the number of  
commercialised brands in Russia  
to eight. Currently, CSL Behring  
is working to file dossiers for our  
recombinant products for haemophilia  
Russia has a population of  
more than 144 million people,  
so its potential market is  
substantial. There is also a  
tremendous unmet medical  
need in the rare disease  
community, reflected in part  
by the wide gap between  
the approximately 2,000  
von Willebrand disease  
While CSL Behring’s entry in the Russian  
market has not been without challenges,  
including a competitive environment  
and stringent state procurement  
regulations, we will continue to deliver  
on our promise to make our novel  
therapies available to patients around  
the world, including in Russia.  
®
as well as HIZENTRA , subcutaneous  
immunoglobulin, for primary immune  
deficiency and chronic inflammatory  
demyelinating polyneuropathy.  
CSL Behring has been working to  
make a difference, collaborating with  
the Russian Federation, HCPs, patient  
groups and the scientific community  
to provide many more patients with  
its innovative therapies. Since opening  
its first office in Russia in 2015, the CSL  
Behring regional team has almost  
doubled to help meet the growing  
demand. This has enabled the field force  
to cover more territories, reach more  
HCPs in the far regions and increase  
During the past decade the  
development of the Russian  
pharmaceutical industry has become  
a priority because of the poor quality of  
many of the industry’s products. This  
includes plasma-derived therapies,  
which the government considers a  
national security issue. The Russian  
Ministry of Industry and Trade’s Pharma  
(
VWD) patients in Russia’s  
®
sales. For example, sales of HAEMATE ,  
2020 strategy seeks to modernise the  
patient registry and the  
human plasma coagulation factor, in  
Russia grew significantly in the past year.  
industry with the goal of producing  
nearly 90% of its own essential medicines  
in Russia by 2020.  
statistical prevalence rate of  
patients with severe VWD, or  
approximately 15,000 patients.  
2
2
CSL Limited Annual Report 2018  
Cheryl Blackwell-Johnson finds  
strength in her family’s unique bond  
Cheryl Blackwell-Johnson was diagnosed with hereditary  
angioedema (HAE) at the age of 15. HAE is a rare disease that can  
cause swelling in certain parts of the body, such as the stomach,  
hands and face. The swelling can be painful and, in some cases,  
life-threatening. It’s also genetic, meaning it runs in families.  
Cheryl, who lives in Baltimore, US, has 15 family members with  
HAE and credits them with helping her manage the condition.  
We stay in touch with each other to ensure everyone is doing  
what they’re supposed to do,” Cheryl said.  
Her husband, Michael, also plays a pivotal role in Cheryl’s care. For  
nearly 30 years, he’s shuttled her back and forth to emergency  
rooms, attended full-day doctor’s appointments and once spent  
three days in the critical care unit of a hospital while Cheryl  
struggled through a serious HAE attack.  
“Didn’t go to work, didn’t go anywhere until they moved her to  
another room,” he recalled. “As long as she needs that support, I’m  
always going to be there for her.”  
CSL Limited Annual Report 2018 23  
CSL Behring Profile continued  
We care deeply about the patients we  
serve. Driven by our innovation, CSL  
Behring’s immunology team successfully  
delivered global launches, showcased  
the largest chronic inflammatory  
demyelinating polyneuropathy (CIDP)  
trial to date, and expanded the use of  
existing products in 2018.  
Our teams first launched PRIVIGEN  
for the treatment of CIDP in Europe  
in 2013 and in the US in 2017. As a  
follow-up to PRIVIGEN, the team  
or withdrawal for any other reason  
during subcutaneous Ig treatment was  
significantly lower with Hizentra versus  
placebo. PATH results also showed  
that three times as many patients  
preferred subcutaneous treatment over  
intravenous treatment.  
Delivering on Our  
Promise to CIDP  
Patients  
®
introduced HIZENTRA , subcutaneous  
immunoglobulin, to complement the  
portfolio and deliver a much-needed  
option for CIDP patients.  
CSL had a strong commercial and  
scientific presence at four major  
Achieving Our Vision in 2018:  
CSL Behring is the world-  
renowned leader in Ig therapy,  
delivering innovations that  
enhance patients’ lives.  
Our formula for commercial success is  
simple: quality science, creative vision,  
meticulous launch planning and a  
robust base of scientific evidence. We  
delivered exceptional performance for  
patients, physicians and communities  
across the globe in 2017/18. Because of  
our lengthy history and experience with  
rare and serious diseases, we understand  
better than most the tremendous  
HIZENTRA is the first and only  
subcutaneous immunoglobulin for  
maintenance therapy to treat CIDP.  
neurology congresses throughout 2018.  
In addition to symposia and poster  
presentations, CSL Behring teams  
designed a simulation that allowed  
visitors to walk in the shoes of a CIDP  
patient. We partnered with the GBS/  
CIDP foundation and created an  
The European Commission (EC) granted  
marketing authorisation for HIZENTRA  
in CIDP in March 2018. The US approval  
and launch followed closely and to date,  
is approved in over 30 countries to treat  
CIDP.  
awareness program, which raised over  
US$50,000 in support of CIDP patients.  
promise of biotechnology, and we are  
working tirelessly to unlock its potential.  
These approvals were based on data  
from the Phase III PATH (Polyneuropathy  
And Treatment with Hizentra) study,  
which is the largest randomised  
controlled clinical study in CIDP patients.  
Combined with the PATH extension  
study, the PATH program is also the  
longest CIDP research period to date.  
According to Lisa Butler, Executive  
Director of GBS/CIDP Foundation  
International, the impact on patients is  
clear. “Patients who were once burdened  
by travelling to the infusion centre or  
hospital may now have the flexibility  
to self-administer their treatment at  
a time, place and on a schedule that’s  
convenient for them,” said Butler.  
Our three-pronged strategy for building  
a solid neurology offering entailed  
building on the momentum and the  
proven successes of CSL Behring’s  
history in primary immunodeficiency (PI)  
and intravenous immunoglobulin (IVIg),  
®
using PRIVIGEN , intravenous  
Results from the PATH study  
demonstrated that after switching from  
IVIg, the percentage of CIDP relapse  
immunoglobulin, approval for CIDP to  
lay the foundation, and then expanding  
the portfolio with Hizentra.  
24  
CSL Limited Annual Report 2018  
Listen to your body  
Hizentra will offer clinicians a safe and  
Beth Thirtyacre is a nurse at the Ohio State University  
Wexner Medical Center in Columbus, Ohio, US. She works  
with patients with neurological disorders such as CIDP,  
Guillain-Barré syndrome (GBS) and multiple sclerosis, and  
she understands first-hand the challenges her patients face  
because she has walked in their shoes.  
effective subcutaneous therapy option  
for patients with CIDP,” said Prof. Dr. Ivo  
N. van Schaik, principal investigator and  
professor of neurology at the University  
of Amsterdam’s faculty of Medicine  
(
AMC-UvA). “It will also allow clinicians  
I was 25 and in nursing school when I was diagnosed with  
the flexibility to adjust doses based on  
their patient’s clinical response and  
needs.”  
GBS,” Beth said. “At first I thought I was overworked and not  
getting enough rest, so I ignored my symptoms for several  
months before I saw my doctor. She recognised that I had  
some neurological deficits and referred me to a neurologist.”  
CIDP is a rare autoimmune disorder that  
affects the peripheral nerves and may  
cause permanent nerve damage. 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  
over a period longer than eight weeks.  
The neurologist initially diagnosed Beth with GBS and  
recommended a wait-and-see course of action, particularly  
since she was feeling better and her symptoms were starting  
to subside. One year later, Beth relapsed. “It was really scary. I  
couldn’t open water bottles or carry a basket of laundry.”  
“Coping with a chronic condition is difficult for me and my  
family,” she said. “My husband is very supportive and helps  
remind me to consider my health when making decisions. A  
strong support system of family and friends as well as my faith  
in God, have helped me advocate for myself and live with CIDP.”  
Following various diagnostic tests, including a lumbar  
puncture, Beth’s diagnosis was changed to CIDP, a chronic  
condition that grows progressively worse. CIDP attacks the  
central nervous system and can lead to life in a wheelchair if  
not treated appropriately.  
Beth was initially treated with intravenous immunoglobulin  
(IVIg) and started getting strength back in her fingers. But her  
infusions took several hours. She elected to take part in a clinical  
The effects of CIDP can worsen over  
time, leading to significant activity  
limitations and a decreased quality of  
life. Approximately 30% of CIDP patients  
will progress to wheelchair dependence  
if not treated. Until now, the only  
immunoglobulin therapy to treat CIDP  
was intravenously administered, by  
infusion.  
®
trial for HIZENTRA , which is self-administered subcutaneously  
and was subsequently approved by the US Food & Drug  
Administration for the treatment of CIDP. Beth has been  
treated with HIZENTRA since 2015.  
Beth considers herself fortunate to have been diagnosed  
with CIDP early on and she urges people to “listen to what  
your body is trying to tell you. Do what’s right for your body.”  
She said it was especially difficult for her to visualise what her  
life was going to be like after being diagnosed with CIDP. “I  
learned that I needed to grieve the loss of normalcy in my life  
and not worry about looking silly or people judging me.”  
“It gave me back a lot of control in my life. I treat myself at home  
at my convenience. Sometimes I work three 12-hour shifts and  
even pick up additional hours. Without early diagnosis and  
appropriate treatment, I wouldn’t be capable of maintaining  
my career.”  
CSL Limited Annual Report 2018 25  
CSL Behring Profile continued  
CSL Plasma  
CSL Plasma has over 200 collection  
centres globally (US, Germany,  
and Hungary) with plasma testing  
laboratories and logistics centres in the  
US and Germany.  
US  
WA  
Since beginning its program  
of expansion in 2011, CSL  
Plasma, a division of CSL  
Behring, has grown to  
become one of the largest  
plasma collection networks in  
the world, providing human  
plasma to CSL Behring  
for the manufacture and  
distribution of plasma protein  
biotherapeutics. Its expanded  
laboratory and logistics  
MN  
OR  
NY  
WI  
ID  
MI  
RI  
PA  
IA  
The Global and US headquarters of CSL  
Plasma is located in Boca Raton, Florida,  
with the European (EU) headquarters  
located in Marburg, Germany. Within  
the US and Germany, logistics centres  
are located in Indianapolis, Indiana (US),  
Mesquite, Texas (US) and Schwalmstadt,  
Germany, while the plasma testing  
laboratories are located in Knoxville,  
Tennessee (US) and Goettingen,  
Germany.  
NE  
OH  
NV  
IN  
IL  
WV  
UT  
MD  
CO  
KS  
MO  
KY  
NC  
SC  
TN  
OK  
AZ  
NM  
GA  
MS  
AL  
TX  
LA  
FL  
US States with CSL Plasma  
collection centres  
operations have increased CSL  
Plasma’s testing and storage  
capacity to meet the growing  
need for plasma-derived  
therapies.  
In a highly regulated industry, CSL  
Behring and CSL Plasma use the most  
sophisticated systems and continue to  
explore avenues of innovation.  
GERMANY  
HUNGARY  
German cities with  
Hungarian cities with  
CSL Plasma collection centres  
CSL Plasma collection centres  
Nyíregyháza  
Miskolc  
Debrecen  
For our donors, CSL Plasma has  
developed the most efficient processes  
and systems that focus on donor  
and plasma safety, along with donor  
satisfaction.  
Kiel  
Bremen  
Braunschweig  
Bielefeld  
Berlin  
Goettingen  
US HEADQUARTERS  
Boca Raton, Florida  
EU HEADQUARTERS  
Marburg, Germany  
Frankfurt  
Nuremberg  
US TESTING LABORATORY EU TESTING LABORATORY  
Knoxville, Tennessee  
Goettingen, Germany  
US LOGISTICS CENTRES  
Indianapolis, Indiana  
Mesquite, Texas  
EU LOGISTICS CENTRE  
Schwalmstadt, Germany  
26  
CSL Limited Annual Report 2018  
Left to right: Kansas City CSL Plasma  
employees Bruce Nevils, Kimberly Mangold  
and Cristina Ceniceros display just some of  
the items that were collected by Kansas City,  
Missouri, employees and donors to support  
Hurricane Harvey relief efforts.  
Hurricane Harvey was a Category 4 storm that hit Texas, US,  
on 25 August, 2017. According to the US National Hurricane  
Center, it caused US$125 billion in damage and affected  
With many people experiencing significant personal loss  
due to inundating floods, CSL Plasma set up multiple giving  
campaigns to help impacted communities. The Adopt-a-Family  
Campaign enabled employees to donate urgent supplies for  
their peers and families. CSL Plasma also sent donation boxes  
to all US-located plasma centres, logistic centres, and corporate  
offices. Boxes full of non-perishable food items, clothing,  
nappies, toiletries and cleaning supplies were shipped to  
emergency intake facilities.  
In times of crisis, CSL Plasma  
employees step up to help and  
give unselfishly  
13 million people in multiple states, but none was hit harder  
than the state of Texas.  
CSL Plasma has multiple locations in Texas with many being  
in the path of the hurricane. Along with hundreds of local  
community members, our employees and donors, who lived in  
the particularly devastated areas of Houston and Port Arthur,  
relocated to local shelters or resided with family and friends to  
shield themselves from the devastating storms.  
In addition to providing essential daily products, CSL Plasma  
employees and peers from other sites donated funds via local  
payroll deduction facilities or other workplace fundraising  
campaigns, raising US$25,195.86 which was matched in full by  
CSL. Together with CSL’s corporate donation of US$150,000 to  
the Greater Houston United Way, a total of US$200,391.72 was  
raised in support of hurricane relief efforts.  
CSL Limited Annual Report 2018 27  
Seqirus  
PROFILE  
thereafter, and in 1952, CSL was asked  
to assist the World Health Organization  
In 2015, CSL created Seqirus to continue its  
important work in seasonal influenza and  
pandemic response. Seqirus combines  
the influenza heritage and expertise of  
CSL with the innovative technologies  
and production facilities developed by  
Novartis. As a result, Seqirus is one of  
largest influenza vaccine companies in  
the world and a global leader in pandemic  
preparedness and response.  
The 1918 Influenza  
Pandemic:  
(WHO) with global surveillance of the  
ever-changing virus.  
100 Years On  
Regular production of influenza vaccine  
meant that CSL was in a constant state  
of pandemic readiness for Australia. This  
capability was tested with great effect  
during the Asian Flu Pandemic in 1957  
and the Hong Kong Flu Pandemic in  
1968/69. In 1973, CSL scientists began  
adapting influenza strains so they would  
grow better in eggs, boosting speed  
of production. In the early 1990s, our  
expertise was recognised as a WHO  
influenza collaborating centre.  
2
018 marks the centenary of  
the 1918 influenza pandemic  
a devastating, global public  
Towards the end of World War I, a deadly  
form of influenza began to spread  
around the world and threatened  
Australian shores. The newly formed  
Commonwealth Serum Laboratories  
Seqirus has three state-of-the-art  
manufacturing facilities on three different  
continents, together with a global fill and  
finish network located close to our end  
markets. Our facility in the US, built in a  
partnership with the US Government,  
is particularly unique as it utilises cell-  
based technology for influenza vaccine  
production which has the potential for  
the rapid ramp up of pandemic vaccine  
production.  
health tragedy that killed an  
estimated 50 million people  
worldwide. We reflect on CSL’s  
role in the pandemic, the  
leading contributions it has  
made to the global influenza  
system since, and the critical  
work it is now undertaking  
through Seqirus to help  
(CSL) swung into action, producing three  
million doses of a mixed bacterial vaccine  
to help protect the nation. The pandemic  
took the lives of 12,000 Australians, but  
the death toll could have been far worse.  
The experience left an indelible mark on  
CSL and the company has been on the  
front line of influenza protection ever  
since.  
In the mid-2000s, CSL expanded into  
Northern Hemisphere markets, with  
increased seasonal production further  
supporting pandemic vaccine capacity  
and our ability to support governments  
with preparedness plans. Around  
this time, the H5N1 virus – or ‘Bird  
Flu’ – emerged as a threat and CSL  
worked with countries to make vaccine  
stockpiles. It was in fact an H1N1 virus that  
caused the next pandemic, which was  
declared in 2009. Nonetheless, CSL was  
one of the first in the world to develop  
and roll-out a pandemic vaccine to  
global markets.  
Each Seqirus facility provides pandemic  
preparedness to their host countries as  
well as other countries in their respective  
regions through reservation of capacity  
as well as stockpiling vaccine for those  
who would respond first in the event of  
a pandemic, such as healthcare workers.  
We have also incorporated a proprietary  
adjuvant, MF59, to our pandemic vaccines  
protect the world from the  
catastrophic impact of future  
influenza pandemics.  
During the 1930s, influenza was found to  
be caused by a virus, and with World War  
II looming, the race began to develop a  
new vaccine. In 1942, CSL produced one  
million doses of the new virus vaccine  
using an egg-based method pioneered  
by the Australian virologist, Macfarlane  
Burnet. Seasonal production began  
2
8
CSL Limited Annual Report 2018  
produced in the US and the UK, which  
can help boost immune response as well  
as production output due to its dose-  
sparing benefits.  
influenza vaccine, we need to continue  
to invest in new technologies that offer  
faster and broader responses. Seqirus  
continues to optimise these technologies  
while also working on other early stage  
opportunities such as synthetic seeds,  
novel antigens, innovative delivery  
devices and a universal vaccine.  
While there have been significant  
advances in the global influenza  
system since the 1918 Pandemic, our  
interconnected world and population  
growth makes pandemic preparedness  
today just as critical, if not more so.  
Influenza vaccine plays a central role in  
pandemic response but the fact remains  
that if an influenza pandemic was  
declared today, demand for pandemic  
vaccine would vastly outstrip supply.  
Finally, one of the most powerful ways  
to build pandemic preparedness is to  
increase seasonal influenza vaccination  
around the world. Too many countries  
today continue to have either very poor  
seasonal influenza vaccine uptake or  
no programs at all. Increasing seasonal  
demand builds supply chains and  
throughput that can be quickly switched  
to pandemic production. It also builds  
vital in-country infrastructure as well as  
knowledge and skills that are needed for  
effective pandemic response.  
So what’s needed? All countries should  
have robust pandemic preparedness  
plans in place that incorporate  
vaccines as well as other pandemic  
countermeasures. WHO is working to  
strengthen preparedness in low and  
middle income countries through the  
Pandemic Influenza Preparedness (PIP)  
Framework and Seqirus has committed  
Standing on the front line in the fight  
against influenza, Seqirus is committed  
to working with governments and public  
health partners to strengthen pandemic  
preparedness and response and  
protect the world from the potentially  
catastrophic impact of another  
pandemic.  
10% of our real-time production  
capacity to support this in the event of a  
pandemic.  
While cell-based production and the  
use of adjuvants represent a significant  
step forwards in the production of  
CSL Limited Annual Report 2018 29  
Seqirus Profile continued  
SEASONAL INFLUENZA PRODUCTS  
Seqirus markets a comprehensive portfolio of influenza products  
in various countries around the world:  
VACCINES & PHARMACEUTICALS  
Seqirus also markets a broad range of vaccines and  
pharmaceuticals in both Australia and New Zealand:  
Major Vaccines,  
Pharmaceutical  
and Diagnostic  
Products Marketed  
by Seqirus  
Afluria® ^  
Trivalent influenza vaccine  
Vaccines  
Prevention of:  
Afluria® Quadrivalent+  
Aggripal® #  
Quadrivalent influenza vaccine  
ADT™ Booster  
Dukoral™*  
Gardasil™*  
Gardasil™* 9  
H-B-Vax™* II  
Jespect™*  
Diphtheria and Tetanus  
Cholera  
Trivalent influenza vaccine,  
egg-based  
Cervical cancer and genital warts  
Cervical cancer and genital warts  
Hepatitis B infection  
Fluvirin®  
Trivalent influenza vaccine,  
egg-based  
Fluad® ~  
Adjuvanted trivalent influenza  
vaccine, egg-based  
Japanese encephalitis  
Measles, mumps and rubella  
Pneumococcal infection  
Measles, mumps, rubella and varicella  
Rotavirus-induced gastroenteritis  
Hepatitis A infection  
®
Flucelvax Quadrivalent  
Quadrivalent influenza vaccine,  
cell-based  
M-M-R™*II  
Pneumovax™* 23  
ProQuad™*  
RotaTeq™*  
Vaqta™*  
Rapivab®  
Intravenous influenza antiviral  
^
Also marketed as Enzira™, Fluvax™ and Nilgrip™ in various  
different markets  
®
®
+
Also marketed as Afluria Quad, Afluria Tetra  
Varivax™*  
Varicella  
#
Also marketed as Begripal™, Fluazur™, Sandovac™, Agriflu™,  
Chiroflu™  
Vivotif™ Oral*  
Zostavax™*  
Typhoid infection  
Shingles and post herpetic neuralgia  
~
Also marketed as Chiromas™, and Fluad Pediatric™  
Pharmaceuticals  
Acarizax™*  
BenPen™  
For the treatment of:  
Allergic rhinitis and allergic asthma  
Bacterial infections  
PRE-PANDEMIC INFLUENZA VACCINES  
Foclivia®  
Aflunov®  
H5N1 influenza vaccine, egg-based  
H5N1 influenza vaccine, egg-based  
Caldolor™*  
Grazax™*  
Pain and fever  
Grass pollen allergy  
PANDEMIC VACCINES  
Nervoderm™*  
Palexia™*  
Post herpetic neuralgia  
Moderate to severe chronic pain  
Moderate to severe pain  
Post herpetic neuralgia  
Movement disorders  
®
®
Panvax & Panvax Junior H1N1 influenza vaccine, egg-based  
®
®
Panvax & Panvax Junior H5N1 adjuvanted influenza vaccine,  
Tramal™*  
egg-based  
Celtura®  
Versatis™*  
H1N1 influenza vaccine, cell-based  
Tetrabenazine™*  
Additional products are also marketed in New Zealand only, details  
of which can be found at Seqirus.co.nz.  
3
0
CSL Limited Annual Report 2018  
PRODUCTS OF NATIONAL SIGNIFICANCE  
TRADEMARKS  
®
Seqirus manufactures and distributes a range of uniquely  
Australian products in the national interest under contract with  
the Commonwealth Department of Health.  
Registered trademark of CSL Limited or its affiliates.  
*
Trademarks of companies other than CSL and referred to on  
this page are property of their respective owners as listed  
below:  
Antivenoms  
For treatment of envenomation from land snakes:  
ALK-Abelló A/S – Acarizax, Grazax  
Black snake antivenom  
Brown snake antivenom  
Death adder antivenom  
Taipan antivenom  
Cumberland Pharmaceuticals Inc. – Caldolor  
Grunenthal GmbH – Tramal, Palexia, Versatis, Nervoderm  
iNova Pharmaceuticals (Australia) Pty Ltd – Tetrabenazine  
Tiger snake antivenom  
Polyvalent antivenom  
Merck & Co. Inc. – Gardasil, Gardasil 9, H-B-Vax II, M-M-R II,  
Pneumovax, ProQuad, RotaTeq, Vaqta, Varivax, Zostavax  
For the treatment of envenomation from spiders:  
Funnel web spider antivenom  
Red back spider antivenom  
PaxVax Vera GmbH – Vivotif Oral  
Valneva Inc – Jespect, Dukoral  
Sandoz – Sandovac  
For the treatment of envenomation from marine animals:  
Box jellyfish antivenom  
Sea Snake antivenom  
Stone fish antivenom  
Diagnostic product  
Snake Venom Detection Products (used to detect venom in  
snakebite victims and indicate the appropriate monovalent  
antivenom for treatment)  
Vaccines  
®
Q-Vax for the prevention of Q fever  
®
Q-Vax Skin Test for the detection of Q fever antibodies  
CSL Limited Annual Report 2018  
31  
Research and Development  
PROFILE  
Cardiovascular disease (CVD) is the leading  
cause of death globally, claiming 17.7 million  
lives or an estimated 31% of all deaths  
worldwide (World Health Organization  
In March 2018, CSL announced the first  
patient enrollment in a Phase 3 clinical trial  
to evaluate the efficacy and safety of CSL112  
in reducing the risk of major CV events in  
patients with acute coronary syndrome  
(ACS). Prior research has shown that CSL112  
can produce an immediate and significant  
enhancement in cholesterol efflux capacity,  
a measurement of the body’s ability to  
remove excess cholesterol from cells. CSL112  
is the only apoA-I therapy to proceed to a  
large-scale Phase 3 cardiovascular clinical  
trial.  
The AEGIS-II Phase 3 study represents an  
exciting and unique opportunity for CSL.  
The double-blind, randomised, placebo-  
controlled, parallel group study will enrol  
over 17,000 patients from approximately  
1,000 sites in 40 countries around the world,  
making it the largest Phase 3 trial in CSL’s  
history. The trial is the final research step to  
evaluate whether our novel apoA-I infusion  
therapy reduces cardiovascular events in  
high-risk patients during the critical 90  
days following a heart attack. Patients will  
be randomised in a 1:1 ratio and will receive  
either CSL112 or placebo, administered  
through IV infusion once weekly for four  
consecutive weeks. The primary endpoint  
is the first occurrence of major adverse  
cardiovascular events (MACE) within 90  
days from the time of randomisation.  
Patients will continue to be followed for one  
year.  
Seeking to Reduce  
Early Recurrent  
Cardiovascular  
Events in Heart  
Attack Survivors  
CVDs - Fact Sheet. 2017). Heart attacks and  
strokes result in 80% of all CVD deaths.  
Nearly one in five survivors of acute  
myocardial infarction (MI), or heart attack,  
will experience a recurrent cardiovascular  
event (non-fatal MI, stroke, cardiovascular  
death) within one year of the initial event.  
The majority of these recurrent events  
happen within 90 days and are associated  
with a high rate of morbidity and mortality.  
Results from the previous Phase 2b AEGIS-I  
study (ApoA-I Event reducinG in Ischemic  
Syndromes I) demonstrated that primary  
safety endpoints were met as CSL112 did  
not cause significant changes in liver or  
kidney function and was well tolerated  
when administered to patients who had  
experienced a heart attack. The study  
also confirmed CSL112’s mechanism of  
action, cholesterol efflux enhancement, as  
demonstrated by an immediate increase  
in cholesterol efflux capacity approximately  
four-fold compared to baseline. An  
Early recurrent cardiovascular events are  
commonly caused by the rupture or erosion  
of cholesterol-rich plaque in the arteries  
resulting in the obstruction of blood flow.  
Cholesterol is known to be removed from  
the lipid-rich atherosclerotic plaque and  
transported to the liver for elimination from  
the body by the action of apolipoprotein A-I  
The AEGIS-II trial is being conducted under  
the academic leadership of the PERFUSE  
Group at Beth Israel Deaconess Medical  
Center, the Duke Clinical Research Institute,  
and the Stanford Cardiovascular Institute  
and is expected to take around four years  
to complete. If successful, CSL112 will be a  
transformative growth driver for CSL and  
has the potential to address one of the  
world’s most prevalent and devastating  
diseases.  
(apoA-I), the primary functional component  
of high-density lipoprotein (HDL). CSL112  
is a novel formulation of apoA-I and may  
offer a new approach for rapidly stabilising  
atherosclerotic lesions through the rapid  
enhancement of cholesterol efflux capacity.  
It is derived from human plasma collected  
by our extensive plasma collection network  
and comprises apoA-1 reconstituted with  
phosphatidylcholine to form HDL particles  
suitable for infusion.  
additional Phase 2 trial demonstrated  
the renal safety of CSL112 in patients  
with moderate renal impairment who  
experienced a heart attack.  
Depiction of particles of CSL112, an  
investigational intravenous formulation  
of human apoA-I.  
32  
CSL Limited Annual Report 2018  
Research and  
Development  
Strategy  
Protein Science  
Influenza Science  
Breakthrough  
Medicines  
Immunoglobulins  
Transplant  
Quadrivalent Adjuvanted  
Vaccines  
Vaccines  
Plasma  
Fractionation  
Recombinant  
Technology  
Haemophilia  
Products  
Specialty  
Products  
Cell-based  
Egg-based  
Gene Therapy  
Immunoglobulins  
Breakthrough Medicines  
Haemophilia Products  
Plasmaꢀderived products  
Specialty Products  
Transplant  
Vaccines  
Plasmaꢀderived products  
Innovative proteinꢀbased  
therapies including novel  
monoclonal antibodies such  
as antiꢀfactor XIIa (CSL312),  
Plasmaꢀderived products for  
the treatment of hereditary  
Plasma derived products  
Quadrivalent egg or cellꢀ  
culture derived influenza  
®
vaccines such as AFLURIA  
and FLUCELVAX QUAD®.  
®
®
such as HIZENTRA and  
such as HAEMATE P  
such as C1 Esterase Inhibitor  
®
®
®
PRIVIGEN and novel  
and VONCENTO and  
angioedema (HAE) such as  
(BERINERT ) and Alpha1  
®
®
recombinant Fc multimer  
proteins to treat autoimmune a novel plasmaꢀderived  
diseases.  
recombinant coagulation  
HAEGARDA and for acquired antitrypsin (ZEMAIRA ) and  
®
factors such as IDELVION  
and AFSTYLA®.  
and perioperative bleeding  
an antiꢀIL6 monoclonal  
Direction: Support improving  
the effectiveness of current  
influenza vaccines and  
manufacturing processes,  
while exploring early stage  
opportunities in novel  
®
apolipoprotein Aꢀ1 infusion  
therapy (CSL112) and a new  
stem cell gene therapy  
including KCENTRA ,  
antibody (clazakizumab) as  
a therapeutic option for solid  
organ transplant rejection.  
®
®
BERIPLEX and ZEMAIRA .  
Direction: Maintain  
Direction: Support and  
enhance plasma products and Direction: Leverage our  
leadership position through  
focussing on improved  
patient convenience,  
yield improvements, new  
indications, new formulation  
science and specialty  
immunoglobulins.  
(CALꢀH) for the treatment of  
develop a novel recombinant  
portfolio with a focus on  
scientific and product  
innovation and patient  
benefit.  
high quality, broad specialty  
plasma products portfolio  
through new markets, novel  
indications and new modes of  
administration.  
Direction: Develop CSL and  
other novel therapies with  
the potential to improve  
transplant outcomes.  
sickle cell disease.  
Direction: Leverage clinical  
and technical insight in  
developing novel protein-  
and gene-based therapies  
for significant unmet  
formulations and alternate  
delivery technologies.  
medical needs and multiple  
indications.  
CSL Limited Annual Report 2018 33  
Research and Development Profile continued  
MARKET DEVELOPMENT  
Research/pre-clinical  
Clinical development  
Registration/post launch  
Research and  
Development  
Pipeline  
Privigen® (10% intravenous Ig) in CIDP in US  
Hizentra® (20% subcutaneous Ig) in CIDP in Europe  
Privigen® (10% intravenous Ig) in CIDP in Japan  
Cytogam® (Cytomegalovirus intravenous Ig) in CMV transmission (NIH Study)*  
Respreez(Alpha1-Proteinase Inhibitor) in Europe  
Haegarda® (C1 Esterase Inhibitor) Subcutaneous in US  
CSL830 (C1 Esterase Inhibitor) Subcutaneous in EU  
Kcentra® (Prothrombin Complex Concentrate) for bleeding in Japan  
AFLURIA Quad (quadrivalent egg-based influenza vaccine)  
FLUCELVAX Quadrivalent (quadrivalent cell-based influenza vaccine)  
FLUAD Trivalent (adjuvanted influenza vaccine)  
FLUAD Quadrivalent (adjuvanted influenza vaccine)  
NEW PRODUCT DEVELOPMENT  
Idelvion® (rIX-FP)  
Afstyla® (rFVIII-SingleChain)  
CORE CAPABILITIES  
Immunoglobulins  
CSL626 rD'D3-FP (VIII 1/2 life ext)  
CAM3001 (GM-CSFRα mAb) in Giant Cell Arteritis - MedImmune/Kiniksa*  
CSL112 (ApoA-1) in ACS  
Haemophilia/Coagulation  
Specialty Products  
Breakthrough Medicines  
Transplant  
CSL312 (Anti-FXIIa mAb) in HAE  
CSL324 (Anti-G-CSFR mAb)  
CSL346 (Anti-VEGFB mAb)  
Vaccines and Licensing  
CSL334 (Anti-IL-13R mAb) in Asthma - ASLAN*  
CSL111 (Anti-Beta Common) in Inflammatory Disease  
CSL200 (CAL-H) in Sickle Cell Disease  
CSL842 (C1-INH) for AMR  
Important advances in 2017-18  
*
Partnered projects  
CSL’s R&D pipeline also includes Life Cycle  
Management projects which address  
Clazakizumab (Anti-IL-6) for Transplant - Vitaeris*  
CSL730 (M230) Recombinant Fc - Momenta*  
P. Gingivalis POD OH-CRC*  
regulatory post marketing commitments,  
pathogen safety, capacity expansions, yield  
improvements and new packages and sizes.  
SAM influenza vaccine (novel mRNA-based technology)  
3
4
CSL Limited Annual Report 2018  
On the Front Line of  
Influenza Protection  
One of the big challenges in influenza  
vaccine production is the requirement to  
make a new vaccine twice a year – once  
for the Northern Hemisphere (NH) winter  
and again for the Southern Hemisphere  
QUADRIVALENT INFLUENZA VACCINE  
demands, we successfully completed  
work on changes to the cell culture  
manufacturing process that will support  
efficiency and capacity improvements at  
the plant in Holly Spring, US.  
ENHANCED INFLUENZA VACCINE FOR  
THE ELDERLY AND CHILDREN  
In the recent US influenza season (over  
the winter of 2017/18), the H3N2 virus was  
the predominant strain circulating in the  
US and an important cause of illness and  
deaths related to influenza infection. For the  
first time, a cell-derived candidate vaccine  
virus (CVV) was included in FLUCELVAX  
QUAD, our vaccine made in cell culture,  
for the H3N2 strain. A potential benefit of  
using a cell-derived CVV rather than the  
more traditional egg-derived approach is  
that it may be a better match to the virus  
circulating in the community in some  
seasons. Preliminary data from the US  
suggests that FLUCELVAX QUAD was in fact  
more effective than egg-derived vaccines  
last season, with further data expected to be  
available in the latter part of 2018. This is an  
exciting development and next NH season  
three of the four strains in FLUCELVAX  
QUAD will be derived from a cell-based CVV.  
The promise of FLUCELVAX is reflected in  
our regulatory submission activity to licence  
it around the world and in our ongoing  
trials to support the age expansion of  
Demand for a more effective vaccine after  
the recent severe influenza seasons in both  
the NH and SH have resulted in strong  
demand for FLUAD for people at particular  
risk, specifically people 65 years of age  
and older and young children. This vaccine  
combines seasonal strains with MF59, our  
proprietary adjuvant (immune stimulant) to  
boost the normally weak immune response  
in these groups. Of note, the National  
Health Service in the UK recommended  
FLUAD as the preferred influenza vaccine  
for people 65 years and older next NH  
season, while in Australia FLUAD is one of  
two recommended vaccines in this age  
group for the 2018 season. Key clinical trials  
are underway to support the transition  
of FLUAD to a quadrivalent formulation  
for older adults and results from a pivotal  
study of FLUAD QUADRVALENT in the  
paediatric population were published in  
the prestigious journal Lancet Respiratory  
Medicine.  
(SH) winter. This is needed because  
Over the past year we have made good  
progress in further licencing AFLURIA  
QUAD, made in eggs at the Parkville site.  
It was approved in the US, Canada and  
Australia for children 5 to 17 years of age to  
add to the previous approvals for adults  
18 years and older. The data underpinning  
these approvals demonstrated that the  
manufacturing changes implemented after  
investigation of the causes of the vaccine-  
induced fevers related to AFLURIA in 2010  
have successfully resolved that issue. In  
addition, submission for approval in children  
six months to four years inclusive was made  
in the US and Australia, with approval  
expected later in 2018. Submissions to other  
countries have either been made or are  
under review to support our geographical  
expansion plans. Egg-based manufacture  
will continue to be important in years to  
come to ensure sufficient global supply  
of influenza vaccines is maintained while  
newer technologies continue to evolve.  
the influenza virus mutates as it infects  
humans and can vary between NH and  
SH seasons. The change in strain of virus  
can have quite a profound influence on the  
process of vaccine production. The Seqirus  
R&D group provides support to ensure  
the conditions are optimised for efficient  
manufacture of the vaccine. Seqirus’ R&D  
activities also focus on improving the  
effectiveness of current influenza vaccines  
and manufacturing processes. The portfolio  
is divided into quadrivalent (four strain)  
vaccines made in either eggs or cell culture,  
and enhanced vaccines for elderly and  
children. At the same time, we continue  
to explore early stage opportunities in  
novel formulations and alternate delivery  
technologies.  
FLUCELVAX QUAD down to six months of  
age. Furthermore, to meet expected volume  
CSL Limited Annual Report 2018 35  
Board of Directors  
BA (Psychology)  
Age 61  
Age 70  
Age 63  
Finance and Management  
(resident in Victoria, Australia)  
Independent: Yes  
nagement  
BSc (Hons), PhD, DSc, FAA, FRCPA, FAHMS  
Age 72  
Pharmaceutical Industry and Medicine  
International Pharmaceutical Industry  
(resident in Pennsylvania, US)  
Independent: Yes  
(resident in New South Wales, Australia)  
Mr Paul Perreault was appointed to the  
CSL Board in February 2013 and was  
appointed as the Chief Executive Officer  
and Managing Director in July 2013. He  
joined a CSL predecessor company in  
Independent: Yes  
Mr David Anstice AO was appointed to  
the CSL Board in September 2008. He  
was a long-time Member of the Board of  
Directors and Executive Committee of the  
US Biotechnology Industry Organization,  
and has 50 years’ experience in the  
global pharmaceutical industry. Until his  
retirement in August 2008, Mr Anstice  
was for many years a senior executive of  
Merck & Co., Inc., serving at various times  
as President of Human Health for US,  
Canada, Latin America, Europe and Asia,  
and at retirement was an Executive Vice  
President. He is a Director of Alkermes  
plc, Dublin, Ireland, and a Director of  
the United States Studies Centre at the  
University of Sydney. In 2018, Mr Anstice  
was made an officer of the Order of  
Australia (AO).  
Mr Bruce Brook was appointed to the CSL  
Board in August 2011. He is currently a  
Director of Newmont Mining Corporation.  
Mr Brook has previously been Chairman  
of Programmed Maintenance Services  
Limited and Energy Developments  
Dr Megan Clark AC was appointed to  
the CSL Board in February 2016. She  
is currently a Director of Rio Tinto and  
Care Australia and a Member of the  
Australian advisory board of the Bank  
of America Merrill Lynch. Dr Clark was  
Chief Executive of the Commonwealth  
Scientific and Industrial Research  
Organisation (CSIRO) from 2009 to  
2014. Prior to CSIRO, she was a Director  
at NM Rothschild and Sons (Australia)  
and was Vice President Technology  
and subsequently Vice President  
Professor John Shine AC was appointed to  
the CSL Board in June 2006 and became  
Chairman in October 2011. He is Professor  
of Molecular Biology and Professor of  
Medicine at the University of NSW, and a  
director of many scientific research and  
medical bodies throughout Australia.  
Professor Shine was Executive Director of  
the Garvan Institute of Medical Research  
from 1990 to 2012. He was also formerly  
President of the Museum of Applied  
Arts and Science (Powerhouse Museum  
and Sydney Observatory) and Chairman  
of the National Health and Medical  
Research Council and a Member of the  
Prime Minister’s Science, Engineering and  
Innovation Council. Professor Shine was  
awarded the 2010 Prime Minister’s Prize  
for Science and, in 2017, a Companion of  
the Order of Australia (AC).  
1997 and has held senior roles in sales,  
marketing and operations with his most  
recent prior position being President, CSL  
Behring. Mr Perreault has also worked  
in senior leadership roles with Wyeth,  
Centeon, Aventis Bioservices and Aventis  
Behring. He was previously Chairman of  
the Global Board for the Plasma Protein  
Therapeutics Association. Mr Perreault has  
had more than 30 years’ experience in the  
global healthcare industry.  
Limited and a Director of Boart  
Longyear Limited, Lihir Gold Limited and  
Consolidated Minerals Limited. During his  
executive career, he was Chief Financial  
Officer of WMC Resources Limited and  
prior to that the Deputy Chief Financial  
Officer of the ANZ Banking Group.  
Health, Safety and Environment at BHP  
Billiton from 2003 to 2008.  
Mr Brook is Chairman of the Audit and Risk  
Management Committee and a member of  
the Nomination Committee.  
Dr Clark is a member of the Innovation  
and Development Committee, the Human  
Resources and Remuneration Committee  
and the Nomination Committee.  
Mr Anstice is Chairman of the Innovation  
and Development Committee and the  
Nomination Committee.  
Professor Shine is Chairman of the  
Nomination Committee and Chairman of the  
Innovation and Development Committee.  
3
6
CSL Limited Annual Report 2018  
KBE  
2  
MD, BA  
Age 73  
and Infrastructure  
in Victoria, Australia)  
dent: Yes  
International Pharmaceutical Industry and  
Medicine (resident in Washington, US)  
Independent: Yes  
Independent: Yes  
nt in Vic
Independent: Y
Mr Abbas Hussain was appointed to  
the CSL Board in February 2018. He  
is currently a Director of Immunocore  
Limited. Mr Hussain has previously been  
Global President, Pharmaceutical at  
GlaxoSmithKline (GSK) and a Director  
of ViiV Healthcare Limited, as well as  
previously serving on the Board of  
Aspen Healthcare and the Duke/National  
University of Singapore Medical School.  
Ms Marie McDonald was appointed to  
the CSL Board in August 2013. For many  
years she practised in company and  
commercial law and she was a partner  
of Ashurst (formerly Blake Dawson) until  
July 2014. Ms McDonald is currently a  
Director of Nanosonics Limited, Nufarm  
Limited and the Walter and Eliza Hall  
Institute of Medical Research. She was  
Chair of the Corporations Committee  
of the Business Law Section of the Law  
Council of Australia from 2012 to 2013,  
having previously been the Deputy Chair,  
and was also a Member of the Australian  
Takeovers Panel from 2001 to 2010.  
Dr Brian McNamee was appointed to the  
CSL Board in February 2018. He was Chief  
Executive Officer and Managing Director  
of CSL from 1990 until his retirement  
in 2013. Since leaving his executive role  
at CSL, Dr McNamee has served as an  
advisor to private equity group Kohlberg  
Kravis Roberts (KKR). He has also  
pursued a number of private start-up and  
company-making activities, and in 2014  
served on the panel of the Australian  
Government’s Financial System Inquiry. In  
2009, Dr McNamee received the Office of  
the Order of Australia (AO) for service to  
business and commerce.  
Ms Christine O’Reilly was appointed to  
the CSL Board in February 2011. She is a  
Director of Transurban, Energy Australia,  
Medibank Private Limited and Baker  
Heart & Diabetes Institute. Ms O’Reilly  
has in excess of 30 years financial and  
operational business experience in  
domestic and off-shore organisations.  
During her executive career, she was  
Co-Head of Unlisted Infrastructure  
Investments at Colonial First State Global  
Asset Management and prior to that was  
the Chief Executive Officer of the GasNet  
Australia Group.  
Dr Tadataka Yamada was appointed to  
the CSL Board in September 2016. He  
is presently a Venture Partner at Frazier  
Healthcare Partners, a leading provider of  
growth capital to healthcare companies, a  
position that he has held since 2015. Prior to  
this, he was the Chief Medical and Scientific  
Officer at Takeda Pharmaceuticals, as  
well as a Member of the Board. Prior to  
Takeda, Dr Yamada was President of the  
Bill & Melinda Gates Foundation Global  
Health Program and prior to that was  
Chairman of Research and Development  
at GlaxoSmithKline. He currently serves as  
a Director of Agilent Technologies, Inc. and  
as Chairman of the Clinton Health Access  
Initiative. Dr Yamada is also a Member of  
the National Academy of Medicine (US),  
Fellow of the Academy of Medical Sciences  
Mr Hussain is a member of the Innovation  
and Development Committee, the Human  
Resources and Remuneration Committee  
and the Nomination Committee.  
Ms O’Reilly is a member of the Audit and  
Risk Management Committee, the Human  
Resources and Remuneration Committee,  
omination Committee.  
Ms McDonald is a member of the Audit and  
Risk Management Committee, the Human  
Resource
and the N
Dr McNamee is a member of the Innovation  
and Development Committee and the  
(UK), Member of the American Academy  
of Arts and Sciences, Fellow of the Imperial  
College of Medicine and Master of the  
American College of Physicians.  
Dr Yamada is a member of the Innovation and  
Development Committee and the Nomination  
Committee.  
a)  
CSL Limited Annual Report 2018 37  
Global Leadership Group  
Paul Perreault  
Gordon Naylor  
Andrew Cuthbertson AO  
Greg Boss  
BA (Psychology)  
Age 61  
BEng (Hons), DipCompSc, MBA, CPA  
Age 55  
BMedSci, MBBS, PhD, FTSE, FAHMS  
Age 63  
JD, BS (Hon)  
Age 57  
Chief Executive Officer  
and Managing Director  
President, Seqirus  
Chief Scientific Officer and R&D Director  
Executive Vice President, Legal and  
CSL Group General Counsel  
David was appointed as Chief Financial  
Officer in January 2016. As Chief Financial  
Officer, he is responsible for managing the  
financial aspects of CSL’s strategy which  
includes financial planning and reporting,  
capital management, tax, treasury and  
investor relations. Immediately prior to  
joining CSL, he was the Chief Financial  
Officer and an Executive Director at MMG  
since 2010. Prior to this, David served as  
CFO for several leading multi-national  
public companies across a range of  
industries since 1999 – including MMG  
Limited, Oz Minerals Limited, PaperlinX  
Limited, BHP Billiton’s energy and coal  
and carbon steel materials divisions, and  
Incitec Pivot Limited. He is a qualified  
chartered accountant and a member of  
the Institute of Chartered Accountants  
Gordon joined CSL in 1987 and has held  
many operational and corporate roles in  
different parts of the CSL Group. He was  
appointed Chief Financial Officer in 2010.  
In April 2015, Gordon was appointed to a  
new position as President of CSL’s global  
influenza business. Previously, Gordon  
was based in the US and responsible for  
CSL Behring’s global supply chain, the  
supply of plasma for CSL Behring and  
CSL’s global information systems.  
Andrew was appointed as Chief Scientific  
Officer and R&D Director in 2000. He is  
responsible for CSL’s global research and  
development operations. Andrew joined  
CSL in 1997 as Director of Research. He  
trained in medicine and science at the  
University of Melbourne, the Walter and  
Eliza Hall Institute, the Howard Florey  
Institute and the National Institutes of  
Health in the US. Andrew was then a  
Senior Scientist at Genentech, Inc. in San  
Francisco. In 2016, Andrew was made an  
Officer of the Order of Australia (AO) and  
appointed Enterprise Professor at the  
University of Melbourne.  
Paul was appointed to the CSL Board in  
February 2013 and was appointed as the  
Chief Executive Officer and Managing  
Director in July 2013. He joined a CSL  
predecessor company in 1997 and has  
held senior roles in sales, marketing and  
operations with his most recent prior  
position being President, CSL Behring.  
Paul has also worked in senior leadership  
roles with Wyeth, Centeon, Aventis  
Bioservices and Aventis Behring. He was  
previously Chairman of the Global Board  
for the Plasma Protein Therapeutics  
Association. Paul has had more than 30  
years’ experience in the global healthcare  
industry.  
Greg was appointed Group General  
Counsel in 2009 and is responsible  
for worldwide legal operations for  
all CSL Group companies. He joined  
CSL in 2001, serving as General  
Counsel for what became the CSL  
Behring business. In addition to his  
legal role, Greg is also responsible  
for overseeing risk management and  
compliance for the Group as well as  
global communications and public  
affairs. Prior to joining CSL, Greg was  
Vice President and Senior Counsel for  
CB Richard Ellis International, after  
working ten years in private legal  
practice. In 2016, Greg received the  
World Recognition of Distinguished  
General Counsel from the Directors  
Roundtable.  
(Australia).  
3
8
CSL Limited Annual Report 2018  
Bill Campbell  
Elizabeth Walker  
Age 60  
BSc (Business Administration)  
Age 59  
BA, MS (Organizational Development and  
Leadership)  
Age 48  
Age 60  
Age 54  
Executive Vice President,  
Quality and Business Services  
Executive Vice President,  
Chief Commercial Officer  
Executive Vice President,  
Manufacturing and Planning  
Executive Vice President, Strategy  
and Business Development  
Executive Vice President,  
Chief Human Resources Officer  
Karen was appointed as Executive Vice  
President, Quality and Business Services  
in April 2013 with responsibility for  
quality, information, technology, logistics,  
sourcing, enterprise excellence and  
environment, health and safety. Prior to  
that, she was Executive Vice President,  
Plasma, Supply Chain and Information  
Technology. Karen joined CSL as a  
Bill was appointed in September  
2017 as Executive Vice President,  
Chief Commercial Officer. He has  
Val was appointed as Executive Vice  
President Manufacturing and Planning  
in January 2015. In 1998 he joined  
Centeon, a predecessor company of CSL  
Behring, and has held a broad range of  
management and R&D positions in the  
US and Switzerland. During his R&D  
tenure, CSL Behring had more than 25  
product or indication approvals in the US,  
Europe and Japan. Prior to his current  
position, Val was Senior Vice President,  
Global Plasma R&D.  
Alan joined the company in February  
2015. He is responsible for strategy,  
portfolio management and business  
development activities at CSL. Prior to  
joining CSL, Alan was Executive Vice  
President, Corporate Development  
at Auxilium Pharmaceuticals. He was  
previously head of corporate strategy  
for Bristol-Myers Squibb and Pfizer,  
and has worked in strategy and  
Elizabeth Walker was appointed as Chief  
Human Resources Officer in December  
2017. She joined CSL Behring as Chief  
responsibility for a variety of global  
functions including sales, marketing,  
commercial development, medical  
affairs and public policy. Prior to being  
appointed to his current role, Bill led CSL  
Behring’s North American commercial  
operations since 2014. He has more  
than 35 years of diverse pharmaceutical  
and biotechnology experience across  
a range of therapeutic areas, including  
oncology, women’s health, vaccines and  
plasma proteins. Bill has held senior  
management positions at a number  
of pharmaceutical and biotechnology  
companies. He is a member of the  
Board of Directors for the Biotechnology  
Innovation Organization (BIO).  
Talent Officer in 2016 and served as  
interim Chief Human Resources Officer  
from October 2017. Prior to joining CSL,  
Elizabeth was Vice President Global  
Talent Management at Campbell Soup  
Company. She has more than 25 years  
of experience in both management  
consulting and human resources.  
Product Manager at JRH Biosciences in  
1991 and progressed through a number  
business development roles at United  
Healthcare and Stanford Medical  
Center. Alan began his career with the  
Boston Consulting Group.  
of positions in technical services,  
quality management and research and  
development. Prior to joining CSL, she  
was Director of Developmental Research  
at Endotech Corporation.  
Elizabeth has worked across a variety of  
industries, including healthcare, financial  
services and food manufacturing.  
Laurie Reed  
BS (Finance), MS (Organizational  
Development)  
Age 54  
Senior Vice President, Human Resources  
(until 30 November 2017)  
Bob Repella  
BSc (Pharmacy), MBA  
Age 59  
Executive Vice President, Global  
Commercial Operations  
(until 31 August 2017)  
CSL Limited Annual Report 2018 39  
Share Information  
CSL LIMITED  
DETAILS OF INCORPORATION  
Serum Laboratories Limited. These  
changes were brought into effect by the  
Commonwealth Serum Laboratories  
SUBSTANTIAL SHAREHOLDERS  
Issued Capital Ordinary Shares:  
CSL’s activities were carried on within  
the Commonwealth Department of  
Health until the Commonwealth Serum  
Laboratories Commission was formed  
as a statutory corporation under the  
Commonwealth Serum Laboratories Act  
As at 30 June 2018, the Commonwealth  
Bank of Australia and its subsidiaries and  
BlackRock Inc and its subsidiaries were  
substantial shareholders in CSL.  
452,400,784 as at 30 June 2018  
(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.  
VOTING RIGHTS  
1961 (Cth) [the CSL Act] on 2 November  
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 has  
one vote for each fully paid share held in  
person or by proxy.  
1961. On 1 April 1991, the Corporation  
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 have been traded on  
the Australian Securities Exchange (ASX)  
since 30 May 1994. Melbourne is the  
Home Exchange.  
was converted to a public company  
limited by shares under the Corporations  
Law of the Australian Capital Territory  
and it was renamed Commonwealth  
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.  
DISTRIBUTION OF SHAREHOLDINGS AS AT 30 JUNE 2018  
Range  
Total Holders  
Units  
% of Issued Capital  
In June 2014, CSL commenced a  
1
- 1,000  
,001 - 5,000  
,001 - 10,000  
0,001 - 100,000  
00,001 and over  
125,091  
22,989  
3,768  
32,587,599  
52,970,483  
7.20  
11.71  
sponsored Level 1 American Depository  
Receipts (ADR) program with the Bank  
of New York Mellon. The sponsored ADR  
program replaced the unsponsored ADR  
programs that have previously operated  
with CSL’s involvement.  
1
5
25,947,095  
5.74  
1
1,578  
28,504,158  
6.30  
1
57  
312,391,449  
ꢊꢈ2ꢉꢊ00ꢉ78ꢊ  
69.05  
100ꢅ00  
Total shareholders and shares on issue  
1ꢈꢇꢉꢊ8ꢇ  
The ADRs 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.  
Unmarketable Parcels  
Minimum Parcel Size  
Holders  
Units  
Minimum A$ꢀꢁꢁꢂꢁꢁ parcel at A$ꢃꢄꢅꢂꢆꢅ per unit  
ꢈꢅꢅ  
ꢀꢁꢆ  
4
0
CSL Limited Annual Report 2018  
Shareholder Information  
CSL’s share registry is overseen by  
Computershare. Shareholders  
with enquiries should go to  
this option by providing a payment  
instruction online via investorcentre.com  
or by obtaining a direct credit form from  
the share registry or by advising the  
share registry in writing.  
bank account details to Computershare  
by the dividend record date of 12  
September 2018.  
The Annual General Meeting will be  
held at the Clarendon Auditorium,  
Melbourne Convention and Exhibition  
Centre (MCEC), South Wharf, Melbourne,  
at 1pm on Wednesday, 17 October 2018.  
Clarendon Auditorium is easily accessible  
from the Clarendon Street entrance. For  
transport and parking directions to the  
venue please visit MCEC.com.au/visit/  
visit-information#getting-here.  
investorcentre.com 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 Computershare at  
the below address.  
The Annual Report is produced for  
your information. The default option is  
an online Annual Report via CSL.com.  
If you opted 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. You will  
continue to receive Notices of Meeting  
and Proxy forms.  
CSL now 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 2018 final dividend  
payment must provide their valid US  
Separate shareholdings may be  
consolidated by advising the Share  
Registry in writing or by completing  
a Request to Consolidate Holdings  
form which can be found online at  
investorcentre.com.  
SHAREHOLDERS AS AT 30 JUNE 2018  
Share Registry  
Shareholders  
Shares  
COMPUTERSHARE INVESTOR  
SERVICES PTY LIMITED  
Yarra Falls, 452 Johnston Street  
Abbotsford VIC 3067  
Change of address should be notified  
to the Share Registry online via the  
Investor Centre at investorcentre.com,  
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.  
Australian Capital Territory  
New South Wales  
Northern Territory  
Queensland  
ꢅꢉꢇꢀꢄ  
ꢈꢀꢉꢁꢇꢀ  
ꢇꢇꢊ  
ꢅꢉꢃꢅꢇꢉꢃꢀꢇ  
ꢅꢅꢁꢉꢇꢃꢇꢉꢀꢄꢃ  
ꢅꢊꢋꢉꢈꢁꢆ  
Postal Address:  
GPO Box 2975 Melbourne VIC 3001  
Enquiries within Australia:  
1800 646 882  
ꢃꢊꢉꢋꢆꢁ  
ꢊꢉꢀꢇꢋ  
ꢃꢀꢉꢅꢆꢊꢉꢄꢋꢇ  
ꢋꢉꢋꢀꢈꢉꢈꢊꢇ  
ꢃꢉꢇꢄꢊꢉꢄꢀꢀ  
South Australia  
Tasmania  
ꢃꢉꢆꢃꢇ  
Enquiries outside Australia:  
+
61 3 9415 4178  
Victoria  
ꢈꢊꢉꢆꢊꢁ  
ꢅꢅꢉꢆꢋꢋ  
ꢋꢉꢇꢋꢇ  
ꢃꢋꢊꢉꢇꢇꢄꢉꢋꢇꢆ  
ꢃꢃꢉꢁꢀꢁꢉꢀꢆꢃ  
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  
Investor enquiries online:  
investorcentre.com/contact  
Website:  
Western Australia  
International Shareholders  
Total Shareholders and Shares on Issue  
ꢀꢉꢊꢊꢈꢉꢋꢅꢆ  
1ꢈꢇꢉꢊ8ꢇ  
ꢊꢈ2ꢉꢊ00ꢉ78ꢊ  
investorcentre.com  
CSL Limited Annual Report 2018 41  
Shareholder Information continued  
CSL’S TWENTY LARGEST SHAREHOLDERS AS AT 30 JUNE 2018  
Shareholder  
Shares  
% Total Shares  
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED  
JP MORGAN NOMINEES AUSTRALIA LIMITED  
CITICORP NOMINEES PTY LIMITED  
ꢃꢀꢋꢉꢇꢄꢊꢉꢊꢋꢀ  
ꢊꢀꢉꢀꢅꢄꢉꢆꢃꢃ  
ꢅꢈꢉꢇꢇꢇꢉꢀꢋꢆ  
ꢃꢈꢉꢁꢀꢇꢉꢃꢄꢊ  
ꢆꢉꢄꢅꢆꢉꢄꢅꢀ  
ꢀꢉꢆꢁꢊꢉꢁꢄꢈ  
ꢀꢉꢅꢇꢇꢉꢅꢁꢁ  
ꢅꢉꢅꢋꢈꢉꢀꢃꢁ  
ꢃꢉꢊꢆꢃꢉꢁꢁꢁ  
ꢃꢉꢀꢃꢋꢉꢃꢇꢊ  
ꢇꢀꢂꢁꢃ  
ꢃꢆꢂꢊꢁ  
ꢀꢂꢇꢋ  
ꢇꢂꢃꢃ  
NATIONAL NOMINEES LIMITED  
BNP PARIBAS NOMINEES PTY LTD  
ꢃꢂꢀꢇ  
BNP PARIBAS NOMS PTY LTD  
ꢃꢂꢅꢈ  
ꢃꢂꢃꢆ  
CITICORP NOMINEES PTY LIMITED  
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED  
AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED  
ꢁꢂꢀꢁ  
ꢁꢂꢇꢄ  
ꢁꢂꢇꢈ  
ꢁꢂꢅꢋ  
ꢁꢂꢅꢋ  
ꢁꢂꢅꢀ  
ꢁꢂꢅꢁ  
ꢁꢂꢃꢋ  
ꢁꢂꢃꢆ  
ꢁꢂꢃꢇ  
ꢁꢂꢃꢇ  
ꢁꢂꢃꢇ  
ꢁꢂꢃꢅ  
ꢃꢁ AMP LIFE LIMITED  
ꢃꢃ CUSTODIAL SERVICES LIMITED  
ꢃꢅ NATIONAL NOMINEES LIMITED  
ꢃꢇ ARGO INVESTMENTS LIMITED  
ꢃꢈ NETWEALTH INVESTMENTS LIMITED  
ꢃꢀ DWS NOMINEES PTY LTD  
ꢃꢉꢅꢋꢋꢉꢊꢈꢋ  
ꢃꢉꢅꢆꢅꢉꢈꢄꢄ  
ꢃꢉꢃꢃꢇꢉꢇꢊꢁ  
ꢋꢄꢅꢉꢀꢁꢊ  
ꢊꢄꢇꢉꢁꢄꢁ  
ꢊꢁꢀꢉꢋꢇꢆ  
ꢀꢄꢅꢉꢃꢄꢋ  
ꢃꢆ NAVIGATOR AUSTRALIA LTD  
ꢃꢊ MILTON CORPORATION LIMITED  
ꢃꢋ MUTUAL TRUST PTY LTD  
ꢀꢋꢋꢉꢃꢈꢆ  
ꢃꢄ FORSYTH BARR CUSTODIANS LTD  
ꢅꢁ DIVERSIFIED UNITED INVESTMENT LTD  
ꢀꢆꢋꢉꢀꢆꢃ  
ꢀꢆꢀꢉꢁꢁꢁ  
Top 20 holders of ordinary fully paid shares  
Remaining holders balance  
ꢇ0ꢊꢉ01ꢈꢉ000  
1ꢊ8ꢉꢇ8ꢈꢉ78ꢊ  
ꢊꢈ2ꢉꢊ00ꢉ78ꢊ  
ꢋ7ꢅ20  
ꢇ2ꢅ80  
Total shares on issue  
100ꢅ00  
In additionꢉ as at ꢇ0 June 2018ꢉ a substantial shareholder notice has been received from:  
Commonwealth Bank of Australia and its subsidiaries and BlackRock Inc and its subsidiaries  
42  
CSL Limited Annual Report 2018  
Corporate Governance at CSL  
CSL Limited’s Board and management team maintain high standards of corporate governance as part of the  
Company’s commitment to maximise shareholder value. This is achieved through promoting effective strategic  
planning, risk management, transparency and corporate responsibility.  
CSL’S CORPORATE GOVERNANCE  
STATEMENT  
Robust processes are in place to ensure the  
KEY STAKEHOLDERS, INCLUDING SHAREHOLDERS  
delegation flows through the Board and  
its committees to the CEO and Managing  
Director, the Global Leadership Group  
A detailed statement outlining CSL’s  
principal corporate governance practices  
in place during the financial year ended  
(GLG) and into the organisation. The CEO  
BOARD  
and GLG have responsibility for the day-to-  
day management of the Group. CSL’s Code  
of Responsible Business Practice underpins  
the Company’s approach to corporate  
governance. It defines CSL’s Values and  
purpose and fosters a culture that rewards  
high ethical standards, personal and  
30 June 2018 can be found at CSL.com.  
This statement has been approved by  
the Board.  
Committees  
Audit & Risk  
Governance &  
Nomination  
Human Resources &  
Remuneration  
GOVERNANCE STRUCTURE  
Management  
The Board has a formal charter  
documenting its membership, operating  
procedures and the allocation of  
responsibilities between the Board and  
management.  
Innovation &  
Development  
Securities &  
Market Disclosure  
corporate integrity and respect for others.  
CSL BOARD  
Throughout the year there were between  
nine and ten directors on the Board. As  
at the date of this report, there were ten  
directors on the Board, comprising nine  
independent, non-executive Directors  
and the CEO and Managing Director. Two  
new directors, Mr Abbas Hussain and Dr  
Brian McNamee AO, were appointed to  
the Board and one director, Mr Maurice  
Renshaw, retired from the Board during  
the financial year. Professor John Shine AC,  
Mr Bruce Brook and Ms Christine O’Reilly  
were re-elected as directors at the 2017  
Annual General Meeting.  
CEO & MANAGING DIRECTOR  
The Board is responsible for oversight of  
the management of CSL and providing  
strategic direction. It monitors operational  
and financial performance, human  
resources policies and practices and  
approves CSL’s budgets and business  
plans. It is also responsible for overseeing  
CSL’s risk management, financial reporting  
and compliance framework.  
GLOBAL LEADERSHIP GROUP  
OUR PEOPLE  
Values  
Integrity  
Patient Focus  
Collaboration  
The Board has delegated the day-  
to-day management of CSL, and the  
implementation of approved business  
plans and strategies, to the Managing  
Director, who in turn may further delegate  
to senior management.  
Innovation  
Superior Performance  
CODE OF RESPONSIBLE BUSINESS PRACTICE  
CSL Limited Annual Report 2018 43  
Governance at CSL continued  
On 13 December, CSL announced that  
once elected following the close of the  
The Company’s more formal and structured engagement opportunities over the 2017/18  
reporting period include:  
DIVERSITY AT CSL  
CSL views diversity through a broad  
array of difference in people across  
attributes of gender, nationality, ethnicity,  
disability, sexual orientation, gender  
identity, generation/age, socio-economic  
status, religious beliefs, professional and  
educational background as well as global  
and cultural experiences.  
2018 AGM, Dr Brian McNamee AO would  
assume the position of Chairman of the  
Board of Directors and Professor John  
Shine will retire from the CSL Board.  
Event  
Purpose  
Led by  
Location  
Full-year (Aug ꢅꢁꢃꢊ) and  
half-year (Feb ꢅꢁꢃꢋ) results  
Share performance against  
strategyꢉ outlookꢉ organisational  
activities and milestones  
CEO &  
Managing  
Director  
Melbourneꢉ Australia  
Details of the directors, including their  
qualifications and experience, together  
with details of their length of service, can  
be found on pages 36 and 37 of this report.  
(includes webcast and  
teleconference with questions  
and answers)  
CSL has a global diversity policy, which is  
integral to its overall talent and culture  
strategies and guides investments in  
this area. CSL supports an inclusive  
work environment where people have  
equitable access to career opportunities,  
training and benefits.  
Investor roadshows (biannual) Update shareholders with  
significant holdings on results or  
CEO &  
Managing  
Director  
Sydney and  
SHAREHOLDER ENGAGEMENT  
Melbourneꢉ Australia;  
Asia; Europe; North  
America  
other key announcements  
CSL regards stakeholder engagement as a  
foundation of good corporate governance.  
Engagement with shareholders in a  
two-way dialogue ensures the Company  
understands expectations and can respond  
to various interests and concerns. CSL  
strives to establish appropriate channels to  
engage with shareholders and ensure they  
can voice their perspective.  
We also engage with other capital  
providers; for exampleꢉ through  
meetings with debt investors  
CSL Annual General Meeting  
(Oct ꢅꢁꢃꢊ)  
Share performance against  
strategyꢉ outlookꢉ organisational  
milestonesꢉ elect new directors and  
set remuneration practices and  
values  
Chairman  
Melbourneꢉ Australia  
(
includes webcast and  
face-to-face questions and  
answers)  
BOARD COMPOSITION  
Male 70%  
Female 30%  
Research and Development  
Briefing  
Share progress across CSL’s  
product pipeline including clinical  
trial outcomes and market  
potential  
Chief Scientific Sydneyꢉ Australia  
Officer/Chief  
Commercial  
Officer  
(Dec ꢅꢁꢃꢊ)  
PEOPLE MANAGER  
Male 61%  
(includes webcast and  
teleconference questions and  
answers)  
Female 39%  
Retail investor roadshows  
Share performance against  
strategyꢉ outlookꢉ organisational  
activities and milestones  
Chief Financial Perth and Adelaideꢉ  
EMPLOYEES  
Male 44%  
(May ꢅꢁꢃꢋ)  
Officer  
Australia; one-on-one  
meetings ongoing  
(includes face-to-face  
Female 56%  
questions and answers)  
DIVERSITY OBJECTIVES  
CSL site tours  
Operations familiarisation  
Site General  
Manager/Head  
of Investor  
Melbourneꢉ Australia  
tours at CSL Behring Australiaꢉ  
Broadmeadows and CSL’s research  
facilities at Bioꢅꢃꢉ Melbourne  
CSL’s progress against diversity objectives  
set in 2017, and our commitments set for  
the 2018/19 financial year, can be found in  
our Corporate Governance Statement at  
CSL.com.  
Relations  
4
4
CSL Limited Annual Report 2018  
CSL Limited  
Financial Report  
2017/18  
4
6
Directors’ Report  
5
4
7
Auditor’s Independence Declaration  
7
Consolidated Statement of  
Comprehensive Income  
7
8
9
Consolidated Balance Sheet  
7
Consolidated Statement  
of Changes in Equity  
8
8
0
1
Consolidated Statement of Cash Flows  
Notes to the Financial Statements  
1
1
1
16 Directors’ Declaration  
17 Independent Auditor’s Report  
24 Medical Glossary  
Directors’ Report  
The Board of Directors of CSL Limited (CSL) has pleasure in presenting their report on  
the consolidated entity for the year ended 30 June 2018.  
1
.
DIRECTORS  
Particulars of the directors’ qualifications, independence, experience, all  
directorships of public listed companies held for the past three years, special  
responsibilities, ages and the period for which each has been a director are  
set out in the Directors’ Profiles section of the Annual Report and on CSL’s  
website, www.csl.com.  
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.  
The following persons were Directors of CSL during the whole of the year  
and up to the date of this report:  
On 16 August 2011, Mr J A G Levy, CPA, was appointed as Assistant Company  
Secretary and continues in office as at the date of this report. Mr Levy has  
held a number of senior finance positions within the CSL Group since joining  
CSL in 1989. Mr Levy was acting Company Secretary for the period between  
Mr Bailey’s departure and Ms Mead’s appointment.  
Professor J Shine AC (Chairman)  
Mr P R Perreault (Managing Director and Chief Executive Officer)  
Mr D W Anstice AO  
Mr B R Brook  
Dr M E Clark AC  
Ms M E McDonald  
Ms C E O’Reilly  
2
. COMPANY SECRETARIES  
Mr E H C Bailey, B.Com/LLB FGIA served in the position of Company  
Secretary until 21 December 2017.  
3
. DIRECTORS’ ATTENDANCES AT MEETINGS  
Ms F Mead, B.Com/LLB (Hons) FGIA, GAICD, was appointed and commenced  
in the position of Company Secretary and Head of Corporate Governance on  
The table below shows the number of Directors’ meetings held (including  
meetings of Board Committees) and number of meetings attended by each  
of the Directors of CSL during the year. The Directors also visited various  
locations of the CSL Group’s operations inside and outside Australia and  
met with local management.  
Dr T Yamada KBE  
Mr Abbas Hussain and Dr Brian McNamee AC were appointed as Directors  
on 14 February 2018 and continue in office as at the date of this report. Mr  
M Renshaw retired as a Director as of the conclusion of the 2017 Annual  
General Meeting.  
4
June 2018 and continues in office as at the date of this report. Ms Mead  
was previously the Company Secretary and a member of the Executive  
Audit & Risk Management  
Committee  
Securities & Market  
Disclosure Committee  
Human Resources &  
Remuneration Committee  
Innovation & Development  
Board of Directors  
Committee  
Nomination Committee  
A
9
9
9
9
4
4
9
9
9
2
9
B
9
9
9
9
4
4
9
9
9
1
A
B
A
B
A
B
A
5
5
B
5
5
A
4
4
4
4
B
4
4
4
4
*
J Shine  
9
9
1
D W Anstice  
B R Brook  
6
6
*
*
5
5
1
5
5
*
M E Clark  
1
8
2
8
2
2
5
*
S A Hussain  
B McNamee  
M McDonald  
P R Perreault  
C E O’Reilly  
M A Renshaw  
T Yamada  
1
*
*
1
*
*
5
5
5
2
8
2, 2  
5
5
4
4
*
*
*
5
5
9
9
8
5
1
4
1
*
8
4
1
4
3
4
2
5
9
5
4
A
B
Number of meetings held whilst a member.  
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*.  
4
6
CSL Limited Annual Report 2018  
4
. PRINCIPAL ACTIVITIES  
(b) Operating Review  
Haemophilia product sales of US$1,113m grew 5% at constant currency. The  
main contributor to this growth has been the successful global rollout of  
CSL Behring’s recombinant coagulation factors, which grew 12% at constant  
currency over the prior comparable period. Idelvion®, a novel long-acting  
recombinant factor IX product for the treatment of haemophilia B, has  
been particularly strong since its launch in US in 2016. Together with rolling  
launches globally, particularly in Europe and Japan, Idelvion® sales have  
more than doubled when compared with FY17.  
The principal activities of the consolidated entity during the financial year  
were the research, development, manufacture, marketing and distribution  
of biopharmaceutical and allied products.  
CSL Behring total revenue of US$6,827m increased 10% at constant  
currency when compared to the prior comparable period.  
Immunoglobulin (Ig) product sales of US$3,145m grew 11% at constant  
currency underpinned by demand for Privigen® (10% liquid Ig) and  
Hizentra® (subcutaneous Ig). Growth in this segment is masked to some  
extent by a very strong comparable period when sales were boosted by  
atypical market conditions  
5
.
OPERATING AND FINANCIAL REVIEW AND FUTURE PROSPECTS  
(a) Financial Review  
The CSL Group announced a net profit after tax of US$1,728.9m for the  
twelve months ended 30 June 2018, up 29.3% when compared to the prior  
comparable period. Underlying Net Profit After Tax at constant currency  
grew 28.1% when compared to the prior comparable period. Sales Revenue  
was US$7,587.9m, up 11.8% on an underlying constant currency basis when  
compared to the prior comparable period, with research and development  
expenditure of US$702.4m. Net cash inflow from operating activities was  
US$1,902.1m.  
Afstyla®, CSL Behring’s novel recombinant factor VIII has delivered solid  
growth since launch, underpinned to a large extent by patients switching  
from Helixate as the availability of this product wound down in the lead up  
and following the expiry of the distribution agreement in December 2017.  
Competition in the Haemophilia A market remains intense as new entrants  
participate in the market.  
Globally demand for immunoglobulin has been strong driven by increased  
usage for chronic therapies, including Primary Immune Deficiency and  
Chronic Inflammatory Demyelinating Polyneuropathy (CIDP), together with  
increased disease awareness and diagnosis. During the period, Privigen®  
was approved in the US for CIDP and Hizentra was approved in both the US  
and EU for CIDP. CIDP is a debilitating peripheral nerve disorder and is the  
largest Ig indication.  
1
1
Constant currency removes the impact of exchange rate movements to facilitate comparability of operational performance for  
the Group. This is done in three parts: a) by converting the current year net profit of entities in the group that have reporting  
currencies other than US Dollars, at the rates that were applicable to the prior comparable period (translation currency effect);  
b) by restating material transactions booked by the group that are impacted by exchange rate movements at the rate that  
would have applied to the transaction if it had occurred in the prior comparable period (transaction currency effect); and c) by  
adjusting for current year foreign currency gains and losses (foreign currency effect). The sum of translation currency effect,  
transaction currency effect and foreign currency effect is the amount by which reported net profit is adjusted to calculate the  
result at constant currency.  
b) Transaction currency effect NPAT $53.1m  
Transaction currency effect is calculated by reference to the applicable prior year exchange rates. The calculation takes into  
account the timing of sales both internally within the CSL Group (ie from a manufacturer to a distributor) and externally (ie to the  
final customer) and the relevant exchange rates applicable to each transaction.  
c) Foreign Currency Gains ($14.4m)  
Foreign currency gains recorded during the period.  
Summary NPAT adjusted for currency effects  
Summary Sales  
Reported net profit after tax  
US$1,728.9m  
US$(54.7m)  
US$53.1m  
Reported sales  
US$7,587.9m  
US$(193.8m)  
US$7,394.1m  
Translation currency effect (a)  
Currency effect  
Transaction currency effect (b)  
Constant currency sales*  
Foreign currency (gains) and losses (c)  
Constant currency net profit after tax*  
a) Translation currency effect NPAT ($54.7m)  
US$(14.4m)  
US$1,712.9m  
FY18 Underlying Net Profit after Tax  
Reported Net Profit after Tax  
US$1,728.9m  
US$32.0m  
One off favourable Cost of Goods sold item  
FY Underlying Net Profit after Tax  
Average Exchange rates used for calculation in major currencies (twelve months to June 17/June 18) were as follows: USD/EUR  
0.84/0.92); USD/CHF (0.97/0.99).  
(
US$1,696.9m  
*
Constant currency net profit after tax, constant currency sales and underlying net profit after tax have not been audited or  
reviewed in accordance with Australian Auditing Standards.  
CSL Limited Annual Report 2018 47  
Directors’ Report continued  
Haemate®, CSL Behring’s plasma derived product containing factor VIII and  
von Willebrand factor experienced good sales growth in Russia and Brazil.  
This growth has largely been offset by modest declines in both Beriate® and  
Mononine®.  
(c) Future Prospects (including Key Risks)  
Further comments on likely developments and expected results of certain  
aspects of the operations of the consolidated entity and on the business  
strategies and prospects for future financial years of the consolidated entity,  
are contained in the Year in Review in the Annual Report and in section 5 (b)  
of this Directors’ Report. Additional information of this nature can be found  
on CSL’s website, CSL.com. Any further information of this nature has been  
omitted as it would unreasonably prejudice the interests of CSL to refer  
further to such matters.  
In the medium term CSL expects to continue to grow through developing  
differentiated plasma-derived and recombinant products, receiving royalty  
flows from the exploitation of the Human Papillomavirus Vaccine by Merck  
& Co, Inc, and the commercialisation of CSL’s technology. Over the longer  
term CSL intends to develop new products which are protected by its own  
intellectual property and which are high margin human health medicines  
marketed and sold by CSL’s global operations.  
Specialty product sales of US$1,490m grew 24% at constant currency. Sales  
of Kcentra® (4 factor pro-thrombin complex concentrate) in the US were  
strong driven by an expansion of new accounts and expanding usage in  
existing accounts.  
In the course of CSL’s business operations, CSL is exposed to a variety of  
risks that are inherent to the pharmaceutical industry, and in particular the  
plasma therapies industry. The following details some of the key business  
risks that could affect CSL’s business and operations but are not the only  
risks CSL faces. Key financial risks are set out in Note 11 to the Financial  
Statements. Other risks besides those detailed below or in the Financial  
Statements could also adversely affect CSL’s business and operations, and  
key business risks below should not be considered an exhaustive list of  
potential risks that may affect CSL.  
The launch in the US of Haegarda® (C1 esterase inhibitor subcutaneous)  
has been very successful and reflected in a very strong patient adoption of  
the product. The product’s clinical profile, broad pre-launch activities and  
competitive supply disruption all contributed to sales growth.  
This is underpinned by CSL’s research and development strategy that  
comprises four main areas:  
Immunoglobulins – support and enhance the current portfolio with  
improved patient convenience, yield improvements, expanded labels  
and new formulation science;  
Sales of Haemocomplettan® (fibrinogen concentrate) and Respreeza®  
(Alpha-1 proteinase inhibitor) in Europe also contributed to growth of  
Haemophilia Products – support and enhance the current portfolio with  
new plasma-derived products, recombinant coagulation factors and  
coagulation research;  
specialty product sales.  
Albumin sales of US$921 million rose 7% at constant currency underpinned  
by strong sales growth in China with further market penetration into Tier 2  
and Tier 3 cities. This growth was tempered to some extent by competitive  
pricing pressure.  
Speciality Products – expand the use of speciality plasma-derived  
products through new markets, novel indications and new modes of  
administration; and  
Seqirus total revenue of US$1,088 million grew 16% at constant currency  
driven largely by increased sales of seasonal influenza vaccines.  
Breakthrough Medicines – develop new protein-based therapies for  
significant unmet medical needs and multiple indications.  
Seqirus’ portfolio of influenza vaccines is transitioning towards higher  
valued Quadrivalent influenza vaccines - Flucelvax® and Afluria®. This  
transition together with a significant increase in FLUAD® sales were the  
main growth drivers. FLUAD® is Seqirus’ adjuvanted influenza vaccine  
designed to offer increased protection for over 65 year olds.  
Revenue growth has been tempered by the divestment of its specialty cold  
chain distribution business in Australia which was sold in December 2016.  
Included within total Seqirus revenue is ‘other’ revenue of US$178 million,  
which increased 22% at constant currency, mainly arising from an increase  
in pandemic facility reservation fees.  
4
8
CSL Limited Annual Report 2018  
DESCRIPTION OF KEY RISK  
KEY RISK MANAGEMENT  
Healthcare Industry Risk  
CSL faces competition from pharmaceutical companies and biotechnology companies. The introduction of new competitive  
products or follow-on biologics by our competitors, may impact our ability to access fast-growing/strategic markets, and  
may result in reduced product sales and lower prices. In addition, industry wide shifts in demand for our products may  
affect our business and operations.  
Along with regular reviews of key markets and geographies of strategic value and potential, CSL monitors our competitive  
markets to understand what new competitive products may be emerging and the ongoing demand for our products. We  
ensure a diverse product pipeline with a focus on product lifecycle development, and seek to ensure that the pricing of our  
products remains competitive.  
Accessing fast-growing or strategic markets and executing on value-creating business development deals are key growth  
opportunities for CSL. If these activities are unsuccessful our business and financial performance could be adversely  
affected.  
CSL identifies and assesses new business development and market expansion opportunities that align with our long term  
strategic objectives. Broader input from a variety of functions is engaged when opportunities reach specific points in the  
due diligence process, to ensure appropriate evaluation, integration and business continuity in operations should we enter  
fast-growing strategic markets or make an acquisition.  
CSL operates in many countries and changes in the regulatory framework under which we operate in these countries  
could have a negative impact on our business and operations. Healthcare industry regulations address many aspects of  
our business including, but not limited to, clinical trials, product registration, manufacturing, logistics, pharmacovigilance,  
reimbursement and pricing.  
CSL works to understand the current and emerging regulatory environment to be able to meet requirements and  
also engages with government bodies to present constructive views and information regarding the regulatory policy  
framework.  
Manufacturing & Supply Risk  
The manufacture of CSL’s products, in accordance with regulatory requirements, is a complex process including  
fractionation, purification, filling and finishing. Any challenges experienced in the continuity of this process, and/or the  
quality of supply, could have a negative impact on our business results.  
CSL has a robust management process to ensure that any process is well is maintained through our strategy to operate  
large, long-life and efficient manufacturing facilities. This includes adoption of, and compliance with, a broad suite of  
internationally recognised standards (GxP) including Good Manufacturing Practice (GMP).  
CSL depends on a limited group of companies that supply our raw materials and supply and maintain our equipment.  
If there is a material interruption to the supply or quality of a critical raw material or finished product, this could disrupt  
production or our commercial operations. If the equipment should malfunction or suffer damage, the repair or replacement  
of the machinery may require substantial time and cost, which could disrupt production and other operations.  
CSL seeks to maintain appropriate levels of inventory and safety stock and ensures that, where practicable, we have  
alternative supply arrangements in place. We have a robust preventative maintenance program and access to remedial  
maintenance when necessary. We undertake quality audits of suppliers and maintain and review business continuity plans  
which can be actioned in the event of any significant event.  
CSL also depends on plasma donors for the supply of plasma. Ineffective management of donors has the potential to  
impact supply and may also have reputational consequences.  
CSL responsibly sources plasma from donors, complying with voluntary and regulatory standards. The donor experience is  
closely monitored to ensure the comfort, health and safety of donors.  
Research and Development/Commercialisation Risk  
Our future success depends significantly on our ability to continue to successfully develop new products. The success of  
such development efforts involves great challenge and uncertainty. To achieve this, we must conduct, at our own expense,  
by ourselves or by our collaboration partners, early stage research and clinical trials to demonstrate proof of concept and  
the safety and efficacy of the product candidates. Clinical trials are expensive, difficult to design and implement, can take  
multiple years to complete and are uncertain as to outcome.  
CSL seeks to ensure that our research and development programs conducted by ourselves or by our collaboration partners,  
including early stage research and clinical trials, are undertaken responsibly and ethically within an appropriate governance  
framework that includes multiple decision points where the science and commercialisation opportunities are robustly  
analysed and risk-assessed.  
CSL undertakes extensive advance planning and transitioning work to ensure research and development activities and  
technologies are effectively transitioned to business operations. We also actively source partners/subcontractors, where  
necessary, to ensure business continuity in product development or general operations.  
Commercialisation requires effective transition of research and development activities to business operations.  
Business Combination Risk  
Potential business combinations could require significant management attention and prove difficult to integrate with CSL’s  
business.  
CSL takes a disciplined approach to acquisitions. We focus on strategically aligned opportunities, including those where  
we can derive synergies through our substantial existing knowledge and expertise. We also seek to ensure that a detailed  
review and assessment of potential business combinations occurs prior to any acquisition.  
CSL may not realise the anticipated benefits, or it may take longer to do so than anticipated, from any business combination  
we may undertake in the future and any benefits we do realise may not justify the acquisition price.  
CSL seeks to ensure that integration activities are well planned and executed, leveraging our existing capabilities and  
knowledge base, as well as those of highly qualified and reputable advisors.  
CSL Limited Annual Report 2018 49  
Directors’ Report continued  
DESCRIPTION OF KEY RISK  
KEY RISK MANAGEMENT  
Tax Risk  
Tax reform policy continues to be a topic of discussion in the United States and many other countries in which we operate.  
Changes in tax laws or exposure to additional tax liabilities may have an impact on our financial performance.  
CSL ensures it is aware of and assesses emerging tax risks in the jurisdictions in which it operates. CSL operates a model  
that identifies tax risk, which includes engaging with external advisors and revenue authorities on uncertain tax matters,  
and assesses the likelihood of outcomes resulting from tax assessments and proposed changes in tax frameworks.  
Information Security, including Cybersecurity  
Most of CSL’s operations are computer-based and information technology (IT) systems are essential to maintaining  
effective operations.  
CSL has developed numerous security controls for our IT systems and data centre infrastructure that are based on our  
understanding of known threats and best practice industry knowledge. We continually reassess the appropriateness of,  
and seek to continuously improve, these controls in light of the evolving nature of such threats, and through regular training  
and awareness campaigns ensure our employees can respond appropriately to relevant threats.  
CSL’s IT Systems are exposed to risks of complete or partial failure of IT systems or data centre infrastructure, the  
inadequacy of internal or third-party IT systems due to, amongst other things, failure to keep pace with industry  
developments and the capacity of existing systems to effectively accommodate growth, unauthorised access and  
integration of existing operations.  
CSL employs robust IT Disaster Recovery planning, as well as Business Continuity planning to mitigate operational  
interruptions. We also seeks to continuously improve, update and implement new IT systems, in part to assist us to satisfy  
regulator demands, ensure information security, enhance the manufacture and supply of our products and integration of  
our operations.  
Intellectual Property Risk  
CSL relies on an ability to obtain and maintain protection for our intellectual property (IP) in the countries in which we  
operate.  
CSL seeks appropriate patent and trademark protection and manages any specifically identified IP risks. Along with  
dedicated IP personnel to manage IP opportunity and risk, we use specialist advisors by jurisdiction to inform this approach.  
CSL’s products or product candidates may infringe, or be accused of infringing, on one or more claims of an issued patent,  
or may fall within the scope of one or more claims in a published patent application that may be subsequently issued and to  
which we do not hold a licence or other rights.  
CSL ensures that our projects, products and related activities include an appropriate assessment of any third party IP profile  
and our IP profile.  
Personnel Risk  
Providing a safe and rewarding work environment for CSL’s employees is critical to our sustainability.  
CSL has in place a robust workplace health and safety management system in line with industry best practice. Incident  
prevention, monitoring and reporting, along with early injury intervention, assist in mitigating risks to employee health and  
safety.  
CSL is dependent on the principal members of our executive and scientific teams. The loss of the services of any of these  
persons might impede the achievement of our research, development, operational and commercialisation objectives.  
CSL seeks to ensure that our remuneration and retention arrangements are competitive in the employment markets in  
which we operate. We have plans and processes in place to develop our future leaders, such as succession planning and  
talent development.  
Unexpected Side Effects Risk  
As for all pharmaceutical products, the use of CSL’s products can produce undesirable or unintended side effects or  
adverse reactions (referred to cumulatively as “adverse events”). The occurrence of adverse events for a particular product  
or shipment may result in a loss, and could have a negative impact on our business and reputation, as well as results of  
operations.  
CSL seeks to maintain processes and procedures that meet good pharmacovigilance practice standards. We ensure that  
our product information is up to date and contains all relevant information to assist healthcare practitioners to appropriately  
use our products.  
Market Practice Risk  
CSL’s marketplace is diverse and complex, presenting many opportunities and challenges. Breach of regulations, local  
or international law, or industry codes of conduct, may subject us to financial penalty and reputational damage. Such  
instances may invite further regulation that may negatively affect our ability to market therapies.  
CSL ensures our employees, contractors and suppliers are aware of our expectations in relation to their interaction with  
stakeholders. We undertake relevant training and monitoring of our Code of Responsible Business Practice. We undertake  
internal audits of functions, processes and activities across our operating geographies.  
5
0
CSL Limited Annual Report 2018  
CSL has adopted and follows a detailed and structured Risk Framework to  
ensure that risks in the CSL Group are identified, evaluated, monitored and  
managed. This Risk Framework sets out the risk management processes  
and internal compliance and control systems, the roles and responsibilities  
for different levels of management, the risk tolerance of CSL, the matrix of  
risk impact and likelihood for assessing risk and risk management reporting  
requirements.  
6. DIVIDENDS  
9. ENVIRONMENT, HEALTH, SAFETY & SUSTAINABILITY PERFORMANCE  
On 14 August 2018 the Directors resolved to pay a final dividend of US$0.93  
per ordinary share, unfranked, bringing dividends per share for 2018 to  
US$1.72 per share. In accordance with determinations by the Directors,  
CSL’s dividend reinvestment plan remains suspended.  
CSL has an Environment, Health, Safety and Sustainability (EHS2)  
Strategic Plan that ensures its facilities operate to industry and regulatory  
standards. This strategy includes compliance with government regulations  
and commitments to continuously improve the health and safety of  
the workforce as well as minimising the impact of operations on the  
environment. To drive this strategy, a Global CSL EHS2 Management  
System (EHSMS) Standard has been developed and implemented. Internal  
audits at two sites resulted in the issuance of compliance certificates.  
Completion of the remaining internal audits will be over the next two years.  
Dividends paid during the year were as follows:  
The risk management processes and internal compliance and control  
systems are made up of various CSL policies, processes, practices and  
procedures, which have been established by management and/or the Board  
to provide reasonable assurance that:  
Unfranked  
dividend per Dividend  
share US$  
Total  
Date  
Resolved  
Dividend  
Date Paid  
US$  
The Global Total Recordable Incident Rate continues to demonstrate an  
improving trend in recordable injury and illness performance. Our Australian  
operations continue to be classified as an Established Licensee in respect  
to CSL’s self-insurance licence as granted by the Safety, Rehabilitation and  
Compensation Commission.  
Final Dividend 15/08/2017  
13/10/2017  
0.72 cents  
$323.6m  
established corporate and business strategies are implemented, and  
objectives are achieved;  
for Year Ended  
30 June 2017  
Interim  
13/02/2018  
13/04/2018 0.79 cents  
$348.6m  
any material exposure to risk is identified and adequately monitored  
and managed;  
Dividend  
for Year Ended  
30 June 2018  
No environmental breaches have been notified by the Environment  
Protection Authority (EPA) in Victoria, Australia or by any other equivalent  
Australian interstate or foreign government agency in relation to CSL’s  
Australian, European, North American or Asia Pacific operations during the  
year ended 30 June 2018. During the year CSL has directly engaged with  
EPA Victoria regarding historical contamination of groundwater in a small  
portion of the Parkville (Australia) site and has been in discussion with EPA  
on actions to remediate any impact. This engagement is ongoing.  
significant financial, managerial and operating information is accurate,  
relevant, timely and reliable; and  
7. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS  
there is an adequate level of compliance with policies, standards,  
procedures and applicable laws and regulations.  
There were no significant changes in the state of affairs of the consolidated  
entity during the financial year not otherwise disclosed in this report or the  
financial statements.  
Further details of CSL’s risk management framework are contained in CSL’s  
corporate governance statement.  
8
. SIGNIFICANT EVENTS AFTER YEAR END  
A Stage 1 non-compliance notice was issued to CSL by the local water  
authority in relation to an elevated sample result for sulphide in wastewater  
discharged to the sewer from the Parkville site. CSL is working with  
the authority to resolve this issue to their satisfaction. A second non-  
compliance with a wastewater permit limit sampling issue at the Holly  
Springs (USA) site has been rectified with the authority and subsequent  
sampling is demonstrating compliance.  
Other than as disclosed in the financial statements, the Directors are not  
aware of any other matter of circumstance which has arisen since the end of  
the financial year which has significantly affected or may significantly affect  
the operations of the consolidated entity, results of those operations or the  
state of affairs of the consolidated entity in subsequent financial years.  
CSL Limited Annual Report 2018  
51  
Directors’ Report continued  
Environmental obligations and waste discharge quotas are regulated  
under applicable Australian and foreign laws. Environmental performance  
is monitored from time to time by government agency audits and site  
inspections. The EHS2 function continues to refine standards, processes  
and data collection systems to ensure we are well prepared for new  
regulatory requirements.  
10. DIRECTORS’ SHAREHOLDINGS AND INTERESTS  
13. INDEMNIFICATION OF DIRECTORS AND OFFICERS  
At 30 June 2018, the interests of the Directors who held office at 30 June  
During the financial year, the insurance and indemnity arrangements  
discussed below were in place concerning directors and officers of the  
consolidated entity:  
2
018 in the shares, options and performance rights of CSL are set out in the  
Remuneration Report – Tables 12 and 13 for executive Key Management  
Personnel (KMP) and Table 12 for Non-Executive Directors. It is contrary to  
Board policy for KMP to limit exposure to risk in relation to these securities.  
From time to time the Company Secretary makes inquiries of KMP as to  
their compliance with this policy.  
CSL has entered into a Director’s Deed with each director regarding access  
to Board papers, indemnity and insurance. Each deed provides:  
As part of compliance and continuous improvement in regulatory and  
voluntary environmental performance, CSL continues to report on key  
environmental issues including energy consumption, emissions, water use  
and management of waste as part of CSL’s annual Corporate Responsibility  
Report and submission to the Carbon Disclosure Project. CSL has met  
its reporting obligations under the Australian Government’s National  
Greenhouse and Energy Reporting Act (2007) and Victorian Government’s  
Industrial Waste Management Policy (National Pollutant Inventory).  
(a) an ongoing and unlimited indemnity to the relevant director against  
liability incurred by that director in or arising out of the conduct of the  
business of CSL or of a subsidiary (as defined in the Corporations Act  
2001) or in or arising out of the discharge of the duties of that director.  
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;  
1
1. DIRECTORS INTERESTS IN CONTRACTS  
Section 13 of this Report sets out particulars of the Directors Deed entered  
into by CSL with each director in relation to access to Board papers,  
indemnity and insurance.  
12. PERFORMANCE RIGHTS AND OPTIONS  
Environmental and climate change risks, and control measures continue  
to be monitored to ensure compliance to new and emerging regulatory  
requirements.  
As at 30 June 2018, the number of unissued ordinary shares in CSL under  
options and under performance rights are set out in Note 18 of the Financial  
Statements.  
(b) that CSL will purchase and annually renew a liability insurance program  
which covers all past, present and future directors and officers against  
liability for acts and omissions in their respective capacity on behalf  
of CSL. Coverage will be maintained for a minimum of seven years  
following the cessation of office for each director appointment for acts  
or omissions during their time served; and  
CSL’s environmental performance is particularly important and relevant  
to select stakeholders and CSL reaffirms its commitment to continue  
to participate in initiatives such as CDP’s (previously known as Carbon  
Disclosure Project) climate change and water disclosures to help inform  
investors of its environmental management approach and performance.  
Further details related to EHS2 performance can be found in CSL’s  
sustainability report and our website CSL.com.  
Holders of options or performance rights do not have any right, by virtue  
of the options or performance rights, to participate in any share issue by  
CSL or any other body corporate or in any interest issued by any registered  
managed investment scheme.  
The number of options and performance rights exercised during the  
financial year and the exercise price paid to acquire fully paid ordinary  
shares in CSL is set out in Note 18 of the Financial Statements. Since the end  
of the financial year, no shares were issued under CSL’s Performance Rights  
Plan.  
(c) the relevant director with a right of access to Board papers relating to  
the director’s period of appointment as a director for a period of seven  
years following that director’s cessation of office. Access is permitted  
where the director is, or may be, defending legal proceedings or  
appearing before an inquiry or hearing of a government agency or  
an external administrator, where the proceedings, inquiry or hearing  
relates to an act or omission of the director in performing the director’s  
duties to CSL during the director’s period of appointment.  
52  
CSL Limited Annual Report 2018  
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 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.  
14. INDEMNIFICATION OF AUDITORS  
Ernst & Young and its related practices received or are due to receive the  
following amounts for the provision of non-audit services in respect to the  
year ended 30 June 2018:  
To the extent permitted by law, CSL has agreed to indemnify its auditors,  
Ernst & Young, as part of the terms of its audit engagement agreement  
against claims by third parties arising from the audit (for an unspecified  
amount). No payment has been made to indemnify Ernst & Young during or  
since the financial year.  
US$  
Other assurance services  
203,751  
749,992  
953,743  
Non-assurance services  
1
5. AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES  
For this purpose, “officer” includes a director, executive officer, secretary,  
agent, auditor or other officer of CSL. The indemnity only applies to the  
extent CSL is not precluded by law from doing so, and to the extent that the  
officer is not otherwise entitled to be or is actually indemnified by another  
person, including under any insurance policy, 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  
officer in relation to that corporation.  
Total fee paid for non-audit services  
CSL may decide to employ the auditor on assignments additional to their  
statutory audit duties where the auditor’s expertise and experience with  
CSL and/or the consolidated entity are important.  
The signing partner for the auditor is normally to be rotated at least every  
five years, and the auditor is required to make an independence declaration  
annually. Mr Rodney Piltz continues to act as the signing partner for Ernst  
Details of the amounts paid or payable to the entity’s auditor, Ernst &  
Young, for non-audit services provided during the year are set out below.  
The directors, in accordance with the advice received from the Audit and  
Risk Management Committee, are satisfied that the provision of non-audit  
services is compatible with the general standard of independence for  
auditors imposed by the Corporations Act 2001. The directors are satisfied  
that the provision of non-audit services by the auditor did not compromise  
the auditor independence requirements of the Corporations Act 2001 for  
the following reasons:  
&
Young for the 2017-2018 financial year following his appointment in the  
prior year. The Audit and Risk Management Committee undertakes a formal  
review of the appropriateness of continuing with the incumbent audit firm  
prior to approving the appointment of a new signing partner by rotation.  
CSL paid insurance premiums of US$717,374 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.  
1
6. ROUNDING  
The amounts contained in this report and in the financial report have been  
rounded to the nearest $100,000 (where rounding is applicable) unless  
specifically stated otherwise under the relief available to CSL under ASIC  
Corporations Instrument 2016/19. CSL is an entity to which the Instrument  
applies.  
all non-audit services have been reviewed by the Audit and Risk  
Management Committee to ensure that they do not impact the  
impartiality and objectivity of the auditor; and  
none of the services undermine the general principles relating to  
auditor independence as set out in Professional Statement F1, including  
reviewing or auditing the auditor’s own work, acting in a management  
or a decision making capacity for CSL, acting as an advocate for CSL or  
jointly sharing economic risks and rewards.  
A copy of the auditors’ independence declaration as required under section  
07C of the Corporations Act 2001 accompanies this Report.  
3
CSL Limited Annual Report 2018 53  
Directors’ Report continued  
5
4
CSL Limited Annual Report 2018  
1
7. REMUNERATION REPORT  
Remuneration Snapshot  
We simplified our long term remuneration by moving to a single long term  
incentive (LTI) equity instrument which is time and performance hurdled.  
We recognised the importance of the long term by measuring performance  
using a seven year rolling average Return on Invested Capital measure to  
focus executives on achieving CSL’s long term objectives. We also made  
our approach to valuing equity more transparent by changing from a fair  
value to a face value methodology. This means that the value of a CSL  
Performance Share Unit (PSU) at grant is the same price that you would pay  
for a CSL share on the day.  
The remuneration outcomes in 2018 reflect CSL’s outstanding financial  
results and achievements across CSL’s operational and development  
activities. These results are outlined further across this Directors’ Report.  
1
.
The CSL Board of Directors is pleased to present the Remuneration  
Report (‘Report’) for CSL Limited (CSL) for the year ended 30 June 2018  
(
the Corporations Regulations 2001 (Cth). This Report contains detailed  
information regarding the remuneration arrangements for the directors and  
senior executives who are the Key Management Personnel (‘KMP’) for CSL  
during 2018.  
CSL’s sector-leading performance and global reach has delivered against  
our objective of growing shareholder value with a 41% increase in Total  
Shareholder Return over the 12 month period. As a result, CSL has grown to  
become the fourth largest company on the Australian Securities Exchange  
2018) prepared in accordance with the Corporations Act 2001 (Cth) and  
(ASX) as at June 30 2018.  
Key measures of the results achieved in 2018 included:  
In order to maintain global competiveness and shareholder alignment,  
executive KMP, excluding the Chief Executive Officer and Managing Director  
29.3% increase in Net Profit after Tax (NPAT);  
The Board is committed to an executive remuneration framework that  
is focused on driving a performance culture and linking pay to the  
achievement of CSL’s long term strategy and business objectives. These in  
turn drive long term shareholder value.  
(CEO), received an average increase to their LTI target of 7%. The CEO  
52.6% increase in Cash Inflow from Operations (CFO);  
Return on Invested Capital (ROIC) of 25.9%;  
received no increase to his LTI target.  
I am pleased to announce that our new LTI program has been globally  
recognised by the Global Equity Organization, winning an award at its  
recent annual conference for Best Plan Effectiveness. The award recognises  
CSL for developing an equity plan that delivers against key strategic  
objectives and helps CSL achieve its mission and goals.  
Turn-around of the Seqirus influenza business to breakeven; and  
In 2017 your Board recognised that the significant global growth of CSL had  
overtaken the pay design we had been using for many years. The existing  
remuneration framework did not reflect the global nature of our business,  
required simplification and needed stronger alignment with shareholders  
and yet CSL’s success depends on attracting and retaining executives of the  
requisite calibre.  
A strong R&D pipeline with new registrations, exciting new  
collaborations, positive results in our clinical trials and the initiation of the  
largest clinical trial ever undertaken by CSL.  
The Board considers that the new remuneration framework builds strong  
alignment with shareholders, balances sensible risk management and  
motivates executives to deliver outstanding results and long term growth.  
1.1 2018 CEO Remuneration Outcome  
As a consequence, we completed a major review of CSL’s remuneration  
framework taking into consideration shareholder and stakeholder feedback,  
market expectations and regulatory developments. At the 2017 Annual  
General Meeting (‘AGM’), the Remuneration Report for the year ended  
In 2018, our CEO, Mr Paul Perreault, received no increase to his Fixed Reward  
from the previous year, which remained at US$1,751,000, and no increase  
to his STI percentage of 120% for target performance, capped at 180% for  
outstanding performance.  
CSL’s strategy is to develop and deliver innovative medicines that save  
lives, protect public health and help people with life threatening medical  
conditions live full lives. Consistent with this strategy, in 2018 CSL has  
delivered sector-leading growth through efficient plasma production and  
product sales, expanded into new markets including China, expanded  
our product pipeline portfolio through acquisitions and research and  
development (R&D) and delivered on our influenza strategy. CSL also  
extended its plasma collection network with 27 new centres opened and  
completed capacity expansion projects.  
3
0 June 2017, which outlined the new remuneration framework, was well  
The STI outcome for Mr Perreault was 143% of target based on the two key  
measures of above target performance for NPAT and CFO, resulting in a  
cash payment of US$3,008,183 (to be paid in September 2018). As part  
of the LTI program, Mr Perreault was granted 52,052 PSUs (representing  
supported by our shareholders.  
3
10% of Fixed Reward) in October 2017 which are subject to both time and  
performance hurdles over the next four years.  
CSL Limited Annual Report 2018 55  
Directors’ Report continued  
1
.2 2018 CEO ‘Take-Home’ Pay  
1.3 Changes to CEO, Executive KMP and Board Remuneration for 2019  
1.4 Shareholder engagement  
The Board believes that CEO and executive KMP ‘take-home’ pay is a  
simple and transparent view of what was actually earned in 2018. We have  
disclosed the CEO ‘take-home’ pay in the graph below with a full view of all  
executive KMP ‘take-home’ pay details in section 8.3, Table 9.  
Taking into consideration shareholder feedback and global market  
positioning, the Board has determined to make no increase to Fixed Reward  
or STI target and maximum opportunity for the second year in a row to the  
CEO. Consistent with CSL’s guiding principles for remuneration the Board  
has decided to rebalance the remuneration pay-mix toward LTI. To ensure  
our CEO has market appropriate incentives and remains aligned with the  
interests of our shareholders, in 2019 he will receive a 13% increase in his LTI  
target which is both time and performance hurdled.  
Thank you for your constructive feedback over the past year – it is  
important to us as we embed our new remuneration framework and seek  
your support for this year’s Report. We are committed to ensuring that  
our senior executives’ interests are aligned with yours. We will adjust our  
remuneration framework wherever there are opportunities to make it even  
more effective, aligned to shareholders and to support our global talent in  
their achievement of CSL’s long-term global business goals.  
2018 CEO ‘TAKE-HOME’ PAY  
Thank you for supporting CSL and our patients around the world.  
For our executive KMP in 2019, the Board has approved an average 4%  
increase in Fixed Reward, no increase in STI and an average 30% increase  
in LTI targets to recognise that our executive KMP LTI component is  
significantly below global market comparators.  
0%  
20%  
40%  
60%  
80%  
100%  
2
018 Total Fixed Reward  
Total STI Received  
Total LTI Received  
A review of Board and Committee workload and fees against the median of  
the ASX top 12 companies was completed. Accordingly, adjustments were  
made to the Board Chair and Director fees and also the Audit Committee  
fees. Adjustments to fees were made within the existing aggregate fee pool  
approved by shareholders in 2016. The Board has considered that sufficient  
headroom remains within the existing fee pool.  
Dr Megan Clark AC  
Chair Human Resources and Remuneration Committee  
Mr Perreault’s ‘take-home’ pay for 2018 was US$7,394,489 and this is  
a 0.2% decrease in ‘take-home pay from the prior year. Table 9 of this  
Report provides the detail on the ‘take-home’ pay.  
Our existing NED equity program has been replaced with a plan, described  
in more detail in this Report, which will enable directors to more quickly  
build a meaningful level of equity in the Company and which will restrict  
disposal of shares acquired under the plan for three to fifteen years.  
Given the long term nature of CSL’s legacy remuneration plans we will  
continue to see their impact on ‘take-home pay’ of our executive KMP until  
2
021.  
5
6
CSL Limited Annual Report 2018  
2
.1 Changes in KMP  
Contents  
TABLE 1  
NON-EXECUTIVE DIRECTORS  
1
.
Remuneration Snapshot  
Mr Maurice Renshaw retired from the Board of Directors following the 2017  
Annual General Meeting (AGM) on 18 October 2017. Mr Shah Abbas Hussain  
and Dr Brian McNamee AO were appointed as Non-Executive Directors on  
Chairman  
Professor John Shine AC  
2
3
4
.
CSL’s Key Management Personnel  
Remuneration Governance  
1
4 February 2018.  
.
Mr David Anstice AO  
Mr Bruce Brook  
. Remuneration Framework  
Mr Robert Repella retired from the role of Executive Vice President  
(EVP) Commercial Operations on 31 August 2017 and was replaced by Mr  
William Campbell in the role of EVP & Chief Commercial Officer effective  
1 September 2017. Ms Laurie Reed retired from the role of Senior Vice  
President Human Resources on 30 November 2017. Ms Elizabeth Walker  
was appointed to the role of EVP & Chief Human Resources Officer on 1  
December 2017.  
Dr Megan Clark AC  
5
6
7
8
9
.
CSL Performance and Shareholder Returns  
Mr Shah Abbas Hussain (commenced 14 February 2018)  
Ms Marie McDonald  
. Executive Key Management Personnel Outcomes in 2018  
.
Executive Key Management Personnel Legacy Remuneration  
Dr Brian McNamee AO (commenced 14 February 2018)  
Ms Christine O’Reilly  
. Remuneration Changes in 2018 and 2019  
Dr Tadataka Yamada KBE  
.
Executive Key Management Personnel  
Contractual Arrangements  
3
3
. Remuneration Governance  
Mr Maurice Renshaw (retired 18 October 2017)  
.1 Human Resources and Remuneration Committee (HRRC)  
1
1
0. Non-Executive Director Remuneration  
1. Statutory Tables  
EXECUTIVE KEY MANAGEMENT PERSONNEL  
The HRRC has oversight of all aspects of remuneration at CSL. The Board  
has delegated responsibility to the HRRC for reviewing and making  
recommendations to the Board with regard to:  
Executive Director and Chief Executive Officer and Managing Director (CEO)  
Mr Paul Perreault  
EVP Legal & Group General Counsel  
Mr Greg Boss  
-
-
-
-
Executive remuneration design;  
Approval of awards to the CEO;  
Senior executive succession planning;  
Independent audit of the report  
EVP & Chief Commercial Officer  
Mr William Campbell (commenced 1 September 2017)  
The Remuneration Report has been audited by Ernst & Young. Please see  
page 117 of the Financial Statements for Ernst & Young’s report.  
Chief Scientific Officer  
Dr Andrew Cuthbertson AO  
The design and implementation of any incentive plan (including equity  
based arrangements);  
EVP Quality & Business Services  
Ms Karen Etchberger  
2
. CSL’s Key Management Personnel  
-
-
The remuneration and other benefits applicable to NEDs; and  
This Report sets out remuneration information for Key Management  
Personnel (KMP) which includes Non-Executive Directors (NEDs), the  
Executive Director (i.e. the Chief Executive Officer and Managing Director  
Chief Financial Officer  
Mr David Lamont  
The CSL diversity policy and measurable objectives for achieving  
gender diversity.  
President, Seqirus  
Mr Gordon Naylor  
(
CEO)) and those key executives who have authority and responsibility for  
The HRRC is able to approve the remuneration of executive KMP (excluding  
the CEO).  
planning, directing and controlling the major activities of CSL during the  
financial year (executive KMP). The CSL KMP during 2018 are outlined in  
Table 1.  
SVP Human Resources  
Ms Laurie Reed (retired from role 30 November 2017)  
Full responsibilities of the HRRC are outlined in its Charter, which is  
reviewed annually. The Charter is available on CSL’s website CSL.com.  
EVP Commercial Operations  
Mr Robert Repella (retired from role 31 August 2017)  
EVP Manufacturing Operations & Planning  
Mr Val Romberg  
EVP & Chief Human Resources Officer  
Ms Elizabeth Walker (commenced 1 December 2017)  
CSL Limited Annual Report 2018 57  
Directors’ Report continued  
The HRRC comprises four independent NEDs: Dr Megan Clark AC (Chair), Mr  
Abbas Hussain, Ms Marie McDonald and Ms Christine O’Reilly. The Chairman  
of the Board and other NEDs may attend in an ex officio capacity and the  
HRRC may invite members of the management team and external advisers  
to attend its meetings. A portion of all meetings is NED only attendance.  
3.4 Securities Dealing  
One Pay  
Design  
for Senior  
Executives  
A uniform pay design recognises the importance of functioning  
as a team and assists in mobility of our executives. One pay  
design recognises the global scope and value to CSL of every  
executive role and allows us to competitively recruit, engage,  
retain and deploy talent in our global business.  
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 on the CSL Limited website at CSL.com.  
Simple and  
Our pay design is no more complicated than it needs to be. It  
Transparent recognises shareholders’ remuneration guidelines and provides  
clarity so that our shareholders, executives, and all other  
interested parties understand how pay at CSL helps drive the  
business strategy and shareholder alignment. Having a simple  
and transparent pay design helps us focus and be accountable  
to our shareholders.  
During 2018 Mr David Anstice AO retired from his role as Chair and member  
of the HRRC.  
3
.2 HRRC Activities  
3
.5 Minimum Shareholding Guideline  
During 2018, the HRRC met formally on eight occasions involving the  
following activities:  
Reward Real We focus our top talent on the challenges that matter – that  
Achievement make a difference to our business and our capacity to improve  
the lives of those with serious medical conditions. Our senior  
executives are responsible for making decisions that build  
enterprise value. We balance reward for short term results  
with long-term sustained performance. Over the longer term,  
executive reward must be aligned with business performance  
and shareholder return.  
To be met within a target of the first five years of appointment, or within  
five years for current incumbents, and to be held whilst in the role at CSL,  
the following levels of vested equity must be held:  
-
-
-
Review of the executive remuneration framework;  
Appointment of external remuneration advisors;  
-
-
-
NEDs: One times base fee;  
Review of senior executive appointments and remuneration  
arrangements;  
CEO: Three times base salary; and  
Executive KMP: One times base salary.  
-
-
Review of STI and LTI arrangements, and reward outcomes for senior  
executives;  
Share-  
We align senior executives’ interests and those of shareholders.  
We encourage directors and executives to build and maintain a  
meaningful shareholding to create alignment between directors,  
executives and shareholders and to enhance focus on long-term  
value creation. CSL recognises the importance of equity in its  
long term employee rewards and that a significant proportion of  
total executive reward should be CSL equity earned by achieve-  
ment and performance over the longer term.  
holder and  
Executive  
Alignment  
4
. Remuneration Framework  
Review of the CSL diversity objectives and report, and gender pay  
review and progress against diversity objectives;  
4.1 Guiding Principles  
-
-
Review of talent and succession planning for senior executives;  
The prime objectives of the CSL Executive Performance and Alignment  
Plan remuneration framework are to make guaranteed (Fixed Reward) and  
performance based pay more effective as a driver of growth in enterprise  
value, and to create real alignment between executives and shareholders  
by facilitating executives becoming shareholders sooner and requiring that  
they remain shareholders while they are in their roles at CSL.  
Review of long term remuneration strategy and global trends in  
remuneration;  
4
.2 Reward Framework – Overview  
-
-
Review of NED remuneration; and  
Review of the HRRC Charter and HRRC performance.  
4
.2.1 Total Reward  
3
.3 External Remuneration Advice  
Understanding competitive pay levels around the world helps us ensure we  
pay appropriately to reward senior talent. Five reference groups are used  
to assist in determining CSL executive KMP Total Reward and the pay-  
mix. Total Reward comprises a Fixed Reward, a short term performance  
component, ‘STI’, and a long term equity alignment component, ‘LTI’. The  
reference groups, a global pharmaceutical/biotechnology sector reference  
group and four general industry reference groups representing Australia,  
North America, the United Kingdom and Europe (focused on Germany and  
Switzerland), cover senior executive roles in companies of similar scale and  
complexity. We regularly review Total Reward against real movements  
in the global reference groups, with a view to achieving and maintaining  
competitiveness.  
Our Guiding Principles, adopted in April 2017, provide the foundation for  
CSL executive reward design and quantum decisions.  
As appropriate, the Board and the HRRC seek and consider advice directly  
from external advisers, who are independent of management. In 2018 the  
HRRC engaged the services of Aon Consulting in the US, and MinterEllison  
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 MinterEllison. Neither Aon Consulting nor MinterEllison  
provided a ‘Remuneration Recommendation’ as defined in the Corporations  
Act 2001 during the 2018 financial year.  
5
8
CSL Limited Annual Report 2018  
4
.2.2 Fixed Reward  
A minimum shareholding guideline was introduced to further reinforce the  
alignment between executive KMP and shareholders. A description of the  
guideline can be found in section 3.5.  
4.3 Executive KMP Pay-Mix  
Fixed Reward (or salary) is determined based on the scope, complexity and  
responsibility of the role ensuring internal consistency across executive  
KMP. Set at competitive levels, to attract, retain and engage key talent,  
Fixed Reward is regularly compared against external benchmarks of the  
reference peer groups described above.  
As described in section 1 the remuneration framework for executive KMP  
was changed on 1 July 2017. Our pay-mix continues to shift towards higher  
levels of performance based pay, specifically the LTI opportunity and we will  
continue to rebalance the pay-mix over the coming two years. The graphs  
below show each of the components as a percentage of Total Target Reward  
for the 2018 and 2019 financial years. For executive KMP this calculation is  
a weighted average. Reward changes in both 2018 and 2019 are included in  
section 8 of this Report.  
4
.2.5 Leading and Managing Modifier  
The Board has the discretion to apply a ‘Leading and Managing’ modifier to  
both the Performance (STI) and Alignment (LTI) components of executive  
KMP. The Board’s objective is to formally recognise the importance of CSL’s  
culture including leadership behaviours, values and diversity objectives  
without shifting focus away from the financial and operational KPIs.  
4
.2.3 Performance Component (STI)  
Maintaining a focus on underlying value creation within the business  
operations is critical to the success of CSL in the long-term. In our view,  
it is more effective to focus executive KMP on a small number of Key  
Performance Indicators (KPIs) that matter as we believe that too many  
KPIs can result in competing objectives and dilute the incentive value to the  
participant.  
The modifier allows for the Board to adjust in exceptional circumstances  
+20% / -50% of short term annual incentive earned, and/or long term equity  
incentive opportunity granted. In particular, the capacity for downward  
adjustment provides the Board with the ability to adjust for adverse  
management behaviour at a level below that requiring application of the  
malus and clawback policy.  
CEO AND MANAGING DIRECTOR  
2018  
2019  
Executive KMP KPIs include two critical measures of business strength,  
shared by all, NPAT and CFO, plus up to four business building KPIs  
19%  
18%  
(
individual, business unit, operations, function or research related) – with  
4
.2.6 Current Executive Remuneration Framework –  
Potential Remuneration Delivery  
the majority weighting on the financial KPIs. This STI opportunity is based  
on a percentage of Fixed Reward and is tested and awarded annually in  
cash subject to achievement of KPIs.  
58%  
61%  
23%  
21%  
The diagram below shows the period over which potential 2018  
remuneration is delivered and when the awards vest.  
4
.2.4 Alignment Component (LTI)  
Fixed Reward  
STI  
LTI  
Fixed Reward  
STI  
LTI  
The objective of this component is to build economic alignment between  
executive KMP and shareholders.  
2018  
2019  
2020  
2021  
Equity grants, in the form of Performance Share Units (PSUs), vest in equal  
tranches on the first, second, third and fourth anniversaries of grant, subject  
to continuing employment, meeting a minimum individual performance  
rating and achievement of an absolute return measure - a seven year  
rolling average Return on Invested Capital (ROIC) hurdle set by the Board  
each year. All four tranches of the grant will have the same ROIC hurdle.  
Executive KMP will be granted PSUs at face value. To the extent that  
threshold and target performance hurdles are achieved, one CSL share will  
be delivered for each PSU that vests.  
Fixed Reward  
Salary  
EXECUTIVE KMP  
Short Term Incentive -  
Cash STI  
T1 (25%)  
T2 (25%)  
T3 (25%)  
T4 (25%)  
Performance”  
2018  
2019  
Long Term Incentive -  
Alignment”  
2
9%  
32%  
42%  
48%  
We continue to shift the risk in our pay-mix towards higher levels of  
performance based pay as a proportion of Total Reward to better align with  
our peer reference groups and to build alignment and focus on responsibly  
achieving what matters. In this regard, it will be necessary to increase  
equity allocations and it is proposed to do this over the next few years.  
2
3%  
2
6%  
Date Paid  
Date Granted  
Vesting Date  
Fixed Reward  
STI  
LTI  
Fixed Reward  
STI  
LTI  
CSL Limited Annual Report 2018 59  
Directors’ Report continued  
4
.4 Short Term Incentive (STI)  
FEATURE  
DESCRIPTION  
Performance Period  
Annual aligned with the financial year 1 July 2017 to 30 June 2018  
In July 2017 a new STI plan was implemented for executive KMP. Measuring  
performance over an annual period and paid in cash, the plan incentivises  
executive KMP to work together to achieve a small group of key short term  
objectives that really matter, providing them with the latitude to identify  
and manage the actions needed to build the business, without competing  
objectives.  
Performance Measures Financial Performance  
Top line growth is the foundation of long term sustainability and  
Individual Performance  
Individual performance hurdles align with strategic priorities,  
encourage appropriate decision making, and balance performance  
in non-financial priorities. The individual performance measures are  
based on individual responsibilities and categories include divisional  
performance, achievement of strategic objectives and improvement  
in operations, risk management, compliance, health and safety and  
quality  
evidences our competitive advantage, whilst pursuing profitable  
growth aligns employee and shareholder objectives. The financial  
performance measures are NPAT and CFO. NPAT is measured at  
constant currency and CFO is a reported rate  
Each executive KMP has a maximum of six KPIs. The KPIs are made up of  
two critical measures of CSL business strength, shared by all participants -  
NPAT and CFO, plus up to four individual business building KPIs.  
KPI Weighting  
Executive  
NPAT  
50%  
30%  
35%  
30%  
30%  
CFO  
50%  
Individual  
-
Executive  
D Lamont  
G Naylor  
L Reed  
NPAT  
35%  
15%  
CFO  
35%  
15%  
Individual  
30%  
KPIs are challenging and not just duties expected of an executive KMP in  
the normal course of their role. There must be real difference between  
under achieve / achieve / over achieve targets and measures, set so that  
a challenging but meaningful incentive is provided. Hurdles are set at  
threshold, target and maximum levels of performance. The KPIs and hurdles  
are set to drive business performance and the creation of shareholder value.  
The key features of the program for cash awards for the year ended 30 June  
P Perreault  
G Boss  
30%  
40%  
30%  
40%  
40%  
70%  
W Campbell  
A Cuthbertson  
K Etchberger  
Performance Level  
Below Threshold  
35%  
30%  
30%  
30%  
30%  
30%  
30%  
40%  
30%  
V Romberg  
E Walker  
40%  
30%  
40%  
2018 (paid in September 2018) are detailed as follows.  
Performance Hurdles  
STI Outcome  
0% earned  
Between Threshold and Target  
50% earned on achievement of threshold level performance, increasing on a straight-line basis to 100%  
earned on achievement of target level performance  
Target  
100% earned  
Maximum  
100% earned at target level performance, increasing on a straight-line basis to 150% earned on achieve-  
ment of maximum level performance (capped)  
The above STI Outcome percentages are then multiplied by the KPI weighting and individual STI opportunity (as disclosed in Table 3) to  
determine the payment amount  
Cessation of  
Employment  
A “good leaver” (such as retirement) may receive a pro-rata payment based on time elapsed since the start of the Performance Period, subject  
to Performance Measures being met  
Performance Review  
Process  
A formal review of executive KMP progress against objectives is conducted twice annually by the CEO and annually by the Board for the CEO.  
Following the full year performance review, the CEO makes recommendations in respect of executive KMP to the HRRC. The HRRC and the  
Board assess individual performance against objectives at the end of the financial year, and approve the actual STI payments to be made. The  
Board may adjust STI outcomes  
60  
CSL Limited Annual Report 2018  
4
.5 Long Term Incentive (LTI)  
FEATURE  
DESCRIPTION  
Summary  
A 'right' to a CSL share (i.e. full value instrument)  
The table to the right describes the equity grant made in October 2017 -  
the first grant under the new remuneration framework. The LTI program  
has been simplified to a single equity instrument, PSUs, which are hurdled.  
A face value equity allocation methodology is used with the number of  
PSUs granted being based on an executive KMP’s Board approved equity  
opportunity, and a volume weighted average share price based on the  
market price of a CSL share at the time of grant.  
Security  
Performance Share Unit (PSU)  
Performance Period  
Tranche 1 - 1 July 2011 to 30 June 2018; Tranche 2 - 1 July 2012 to 30 June 2019; Tranche 3 - 1 July 2013 to 30 June 2020; and Tranche 4 - 1 July  
2014 to 30 June 2021  
Performance Measure Return on Invested Capital  
Performance Target  
Threshold – 24.0%  
Target – 27.0%  
The performance hurdle is a seven year rolling average Return on Invested  
Capital (ROIC) measure, focusing executives on achieving CSL’s long  
term objectives and to align with shareholder returns. This measure was  
selected as the Board considers it a measurement of real achievement over  
an appropriate time period for our R&D and capacity investment cycle.  
Developing a new medical product can take more than ten years from  
science to manufacturing to market. We manage our business to support our  
investments and have decided to align our senior executives’ equity interests  
in CSL by rewarding sustainable ROIC outcomes over the longer term.  
Vesting Schedule  
Performance Level  
Outcome as a % of target opportunity  
Below Threshold  
0% earned  
Between Threshold and Target  
50% earned on achievement of threshold level performance, increasing on a straight-line basis to 100%  
earned on achievement of target level performance  
Target  
100% earned  
Above Target  
Outcome capped at 100% - cannot exceed target  
Vesting Date  
Retesting  
Tranche 1 (25% of award granted) - 1 September 2018; Tranche 2 (25% of award granted) - 1 September 2019 ; Tranche 3 (25% of award grant-  
ed) - 1 September 2020; and Tranche 4 (25% of award granted) - 1 September 2021  
The Board establishes a ROIC hurdle for each annual grant taking into  
consideration the CSL budget and longer term forecast annual ROIC over the  
four year term of the grant, together with the historical annual ROIC achieved  
that will form part of the performance test over the four year annual testing  
period. The ROIC hurdle established is tested against market analyst  
consensus for reasonableness. The Board also reviews peer group ROIC  
numbers to ensure the performance levels we are targeting are appropriate.  
No retest of any tranche  
Cessation of  
Employment  
A “good leaver” (such as retirement) may retain a pro-rated number of PSUs based on time elapsed since grant date, subject to original terms  
and conditions including test date  
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 awards vest having regard to the  
performance of CSL 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  
4
.6 Leading and Managing Modifier  
Dividends  
No dividends are paid on unvested awards. Executive KMP are only eligible for dividends once the PSUs have vested and shares have been  
allocated  
The Board, based on recommendations from the CEO for executive KMP,  
and the HRRC for the CEO, will have the discretion to apply a ‘Leading  
and Managing’ modifier to both the STI and LTI opportunity – allowing for  
recognition of extraordinary contribution in exceptional circumstances or  
significant leadership failure. In 2018 the Leading and Managing Modifier  
was not used.  
CSL Limited Annual Report 2018  
61  
Directors’ Report continued  
4
.7 Global Pharmaceutical/Biotechnology Peer Group  
5. CSL Performance and Shareholder Returns  
5.1 Financial Performance from 2014 to 2018  
The global pharmaceutical/biotechnology industry peer group serves as a  
primary reference group for remuneration benchmarking, created such that  
CSL falls in the middle of the group with respect to market capitalisation  
and revenue. The group represents global industry peers, and is updated  
annually. The peer group in 2018 included: Alexion Pharmaceuticals,  
Inc.; Allergan plc; AstraZeneca PLC; Bayer Aktiengesellschaft; Biogen  
Inc.; BioMarin Pharmaceutical Inc.; Celgene Corporation; Eli Lilly and  
Company; Endo International plc; Gilead Sciences Inc.; Grifols, S.A.;  
Incyte Corporation; Jazz Pharmaceuticals Public Limited Company;  
Merck Kommanditgesellschaft auf Aktien; Novo Nordisk A/S; Regeneron  
Pharmaceuticals, Inc.; Shire plc; UCB SA; United Therapeutics Corporation;  
Vertex Pharmaceuticals Incorporated. This peer group will also be used in  
2
The following graphs summarise key financial performance over the past  
five financial years.  
Net Profit After Tax/Earnings per Share  
USD)  
Cash inflow From Operating Activities  
(millions USD)  
Annual Return on Invested Capital  
(
2,000  
400  
350  
300  
250  
200  
2,000  
1,500  
1,000  
500  
35%  
0%  
5%  
0%  
3
1,500  
2
2
1,000  
15%  
2019.  
10%  
5,00  
CSL also compares executive KMP reward levels to general industry pay  
in the global pay markets in which we operate. This provides a better  
understanding of the position of the global pharmaceutical/biotechnology  
sector compared to the broader market in each geography. On an annual  
basis the HRRC will determine peer group relevancy for any individual  
executive KMP position.  
5
%
0
0
0%  
2
014  
2015  
2016  
2017  
2018  
2014  
2015  
2016  
2017  
2018  
2014  
2015  
2016  
2017  
2018  
Net Profit After Tax (millions) – USD  
Earnings Per Share (cents) – USD  
Closing Share Price (at 30 June AUD) /  
Total Shareholder Return  
Total Dividends per Share  
(cents USD)  
4
.8 Malus and Clawback Policy  
2
50  
50%  
40%  
30%  
20%  
10%  
0
160  
CSL operates a Malus and Clawback Policy. “Malus” means adjusting  
or cancelling all or part of an individual’s variable remuneration as a  
consequence of a materially adverse development occurring prior to  
payment (in the case of cash incentives) and/or prior to vesting (in the case  
of equity incentives). “Clawback” means seeking recovery of a benefit paid  
to take into account a materially adverse development that only comes to  
light after payment, including shares delivered post vesting.  
1
50  
40  
30  
200  
1
1
1
50  
120  
110  
1
00  
50  
0
100  
90  
80  
2
014  
2015  
2016  
2017  
2018  
2014  
2015  
2016  
2017  
2018  
The Board, in its discretion, may apply the policy to any incentive provided  
to a senior executive, including a former senior executive, in the event  
of a material misstatement or omission in the financial statements of a  
Group company or the CSL Group, or other material error, or in the event of  
fraud, dishonesty or other serious and wilful misconduct involving a senior  
executive, leading to a senior executive receiving a benefit greater than  
the amount which would have been due based on the corrected financial  
statements or had the error or misconduct not occurred.  
Closing Share Price (dollars) – AUD  
TSR  
2
The 2016 Annual Return on Invested Capital figure includes the gain on acquisition of Novartis’ global influenza vaccine business of  
US$176.1m. The Total Dividends per Share is the actual total dividends paid within the financial year.  
62  
CSL Limited Annual Report 2018  
During 2018 the CSL Board completed the buy-back program with a total  
of approximately 1.1m shares (A$150m) purchased on-market in 2018. The  
buy-back policy had been in operation for the past eight years improving  
the efficiency of the balance sheet. Through these buybacks, all CSL  
shareholders benefited from improved investment return ratios, including  
earnings per share and return on equity. Whilst the buybacks have been  
largely funded by debt, they do not impact ROIC. This is because the increase  
in net debt is directly offset by the decline in equity, and the financing cost of  
the share buy-back does not impact Earnings Before Interest and Tax.  
5.2 CSL – Achievement of Our Goals and Financial Performance  
The following performance outcomes were achieved resulting in above target STI payment outcomes (see Table 3). Additional quantitative objectives,  
which were also integral to the achievement of individual performance, were considered by the Board when assessing executive KMP performance, remain  
confidential for commercial reasons.  
TABLE 2: CSL ACHIEVEMENTS IN 2018  
GROWTH  
EFFICIENCY  
INFLUENZA  
INNOVATION  
PEOPLE AND CULTURE  
Reported NPAT – above  
target performance of  
US$1,728.9m;  
• 27 Plasma centres opened • Seqirus reported Earnings • Acquisition and successful • Execution on our R&D  
taking our total to 206  
globally;  
Before Tax and Interest –  
above target performance  
at US$52.4m;  
integration of Calimmune  
into CSL;  
growth initiative with over  
300 hires completed;  
Reported CFO - above  
target performance of  
US$1,902.1m;  
• New Donor Management  
System rolled out;  
• CSL 112 phase III study  
commenced;  
• Employee engagement  
index above global IBM  
norm; and  
• FLUAD® approved in the  
UK;  
Major capital projects on  
track; and  
• Vitaeris collaboration on  
the emerging transplant  
franchise;  
Exceptionally strong  
performance across all  
businesses;  
• Holly Springs, US doses  
produced quadrupled; and  
• CSL Limited named among  
the top 50 employers in the  
world by Forbes Magazine.  
Successful implementation  
at our first site in Bern,  
Switzerland of the new  
Enterprise Resource  
• Successful implementation • Privigen® approved for  
of the Seqirus ERP system.  
Acquisition in China of  
plasma-derived therapies  
manufacturer Wuhan  
Zhong Yuan Rui De  
Biological Products Co.  
Ltd.;  
CIDP in the US; and  
Hizentra® approved for  
Planning (ERP) system.  
CIDP in Europe and the US.  
Successful launch of  
Haegarda® in the US; and  
Successful launch of  
10 products across 17  
countries in all four regions.  
CSL Limited Annual Report 2018 63  
Directors’ Report continued  
6
6
. Executive Key Management Personnel Outcomes in 2018  
.1 STI Outcomes by Executive KMP in 2018  
2018 has been an exceptionally strong year of performance for CSL, delivering against our strategy and delivering sector leading financial outcomes and returns to our shareholders. Over the past 12 months CSL’s share price has grown  
4
0% from A$138.03 to A$192.62. The STI outcomes for executive KMP in 2018 are reflective of this performance.  
Financial performance of CSL makes up the majority weighting of the KPIs for executive KMP, incentivising the delivery of strong financial performance. In 2018 the financial performance measures were NPAT and CFO and both of these  
outcomes were above target performance with the CFO outcome exceeding the maximum level of performance. The remaining KPIs measured individual performance. Achievements that contributed to the outcomes detailed in Table  
3
below can be found in Table 2 of this Report.  
TABLE 3: STI OUTCOMES IN 2018  
STI opportunity at  
Target level hurdle  
STI opportunity  
at Maximum level  
STI earned as %  
of Target level  
opportunity  
Value of STI  
Earned  
Financial  
Performance %  
Weighting  
Individual  
Performance %  
Weighting  
STI earned as %  
of FR  
Financial Performance  
Outcome  
Individual Performance  
Outcome  
3
Executive  
as a % of FR hurdle as a % of FR  
(US$)  
P Perreault  
120%  
75%  
85%  
85%  
75%  
85%  
85%  
85%  
75%  
180%  
113%  
128%  
128%  
113%  
128%  
128%  
128%  
113%  
143%  
132%  
148%  
138%  
131%  
172%  
99%  
105%  
118%  
98%  
112%  
123%  
139%  
47%  
3,008,183  
596,542  
630,135  
100%  
60%  
70%  
60%  
60%  
70%  
30%  
60%  
60%  
Between Target and Maximum  
Between Target and Maximum  
Between Target and Maximum  
Between Target and Maximum  
Between Target and Maximum  
Between Target and Maximum  
Between Target and Maximum  
Between Target and Maximum  
Between Target and Maximum  
-
40%  
30%  
40%  
40%  
30%  
70%  
40%  
40%  
-
Between Target and Maximum  
Between Target and Maximum  
Between Target and Maximum  
Between Target and Maximum  
Between Target and Maximum  
Between Target and Maximum  
Between Target and Maximum  
Between Target and Maximum  
G Boss  
W Campbell4  
A Cuthbertson  
892,908  
540,990  
1,072,749  
986,749  
775,202  
199,293  
K Etchberger  
D Lamont  
132%  
125%  
142%  
107%  
G Naylor  
V Romberg  
E Walker5  
Former Executive Key Management Personnel  
L Reed6  
75%  
113%  
128%  
60%  
272,768  
30%  
Between Target and Maximum  
70%  
Between Target and Maximum  
3
The Australian Dollar (AUD), British Pound (GBP) and Swiss Franc (CHF) awards during the year ended 30 June 2018 have been converted to US Dollars (USD) at an average rate for the 2018 financial year of AUD – 1.28996 / CHF – 0.96982 / GBP – 0.74249. Amount payable in September 2018.  
Reflects STI outcome for the period 1 September 2017 to 30 June 2018 being the period W Campbell was executive KMP.  
4
5
6
Reflects STI outcome for the period 1 December 2017 to 30 June 2018 being the period E Walker was executive KMP.  
Reflects STI outcome for the period 1 July 2017 to 30 November 2017 being the period L Reed was executive KMP.  
64  
CSL Limited Annual Report 2018  
6
.2 LTI Outcomes by Executive KMP in 2018  
The table below shows the performance of CSL against the targets for the  
012 and 2013 LTI awards, with performance periods ended in 2018. No  
7. Executive Key Management Personnel Legacy Remuneration  
Our legacy LTI programs will continue to be measured and reported through until the 2021 Remuneration Report. As a consequence of legacy plans and the  
new LTI framework, in 2019 we will have four different years of awards that will be tested and subsequently vested or lapsed based on performance. Based on  
the exceptionally strong performance of CSL over the performance period and the significant increase of the CSL share price since the grant of these awards,  
the value of any vesting achieved is expected to be high, in alignment with shareholder returns over the same period.  
2
Options were granted at 1 October 2012 or 2013, therefore no Options were  
tested. Executive Deferred Incentive Plan (EDIP) awards, granted in 2015  
(
grant date of 1 October 2014), vested at 100% and as a result of the share  
The following table sets out a preview of the awards that will be tested in 2019 for executive KMP with Table 6 providing the specific grant details for each  
executive KMP. The face value in Table 5 is provided in Australian Dollars.  
price at vesting there was an 80% growth in the value of each Notional Share  
that was cash settled. These are all awards under our legacy LTI frameworks.  
TABLE 4: LTI AWARDS TESTING OUTCOMES IN 2018  
Tranche  
TABLE 5: LTI AWARDS DUE TO BE TESTED IN 2019  
Face Value of a CSL Share  
Grant Date  
tested  
Performance outcome  
Vesting Outcome  
Grant Date  
Security  
Performance Measure  
Exercise Price  
at Date of Grant A$  
1
October  
012  
EPSg - 2.5%  
1 October 2013  
Right  
EPSg  
-
ꢉꢀꢋꢄꢁ  
7
2
2 (retest) Annual EPS growth at 8.3% vested  
1
1
1
1
October 2014  
October 2014  
October 2014  
October 2015  
Right  
rTSR  
-
8
9
1
(retest) Annual EPS growth at 4.9% EPSg - 0% vested  
Annual EPS growth at 4.9% EPSg - 0% vested  
Right  
EPSg  
-
ꢊꢀꢋꢇꢇ  
Option  
Individual Performance  
Individual Performance  
ROIC  
Aꢌꢊꢁꢋꢅꢁ  
1
October 2013  
2
RTSR ranking - Above  
Notional Share  
Performance Share Unit  
Restricted Share Unit  
-
-
-
ꢆꢅꢋꢅꢀ  
MSCI Gross Pharmaceutical rTSR - 100%  
Index  
vested  
1 October 201710  
ꢈꢁꢁꢋꢅꢉ  
7
1 October 2017  
Individual Performance  
In October 2016 51.25% of the award vested based on the EPS outcome in 2016. This was a retest  
and an EPS outcome of 8.3% resulted in an additional 2.5% vesting. The remaining 46.25% of  
this award lapsed.  
10  
E Walker had a portion of her Performance Share Units granted on 1 March 2018 where the face value of a CSL share on the date of grant was A$161.42.  
8
9
This award has been lapsed in full as no vesting occurred in either 2017 or 2018.  
Unvested portion will be retested and reported in the 2019 Remuneration Report.  
TABLE 6: EXECUTIVE KMP LTI OPPORTUNITY TO BE TESTED IN 2019  
Number of  
Number of  
Notional Shares  
Number of Performance  
Share Units  
Number of Restricted  
Share Units  
KMP  
Performance Rights  
Number of Options  
P Perreault  
G Boss  
ꢀꢁꢂꢃꢄꢄ  
ꢅꢂꢅꢀꢀ  
ꢄꢂꢊꢆꢀ  
ꢈꢁꢂꢊꢁꢆ  
ꢆꢂꢊꢀꢀ  
ꢈꢄꢂꢇꢊꢆ  
ꢈꢉꢂꢅꢇꢀ  
ꢉꢂꢇꢃꢄ  
-
ꢅꢀꢂꢆꢇꢆ  
ꢈꢈꢂꢈꢉꢈ  
ꢇꢂꢁꢁꢇ  
ꢇꢂꢁꢄꢅ  
ꢈꢂꢅꢆꢆ  
ꢇꢂꢈꢁꢈ  
ꢇꢂꢃꢈꢃ  
ꢈꢂꢉꢈꢈ  
ꢁꢂꢀꢉꢀ  
ꢈꢂꢇꢇꢆ  
ꢈꢁꢂꢃꢈꢁ  
ꢇꢂꢃꢆꢇ  
ꢇꢂꢉꢁꢇ  
ꢇꢂꢈꢈꢈ  
ꢈꢂꢅꢃꢇ  
ꢇꢂꢃꢁꢅ  
ꢇꢂꢊꢁꢇ  
ꢇꢂꢇꢅꢆ  
ꢊꢄꢀ  
-
ꢇꢈꢂꢈꢁꢊ  
-
W Campbell  
A Cuthbertson  
K Etchberger  
D Lamont  
G Naylor  
-
-
-
-
ꢈꢆꢂꢄꢅꢁ  
-
-
-
-
-
ꢈꢅꢂꢊꢃꢅ  
-
V Romberg  
E Walker  
-
ꢈꢄꢈ  
CSL Limited Annual Report 2018 65  
Directors’ Report continued  
7.1 Key Characteristics of prior financial years Performance Right and Option grants  
7.2 Key Characteristics of prior financial years Executive Deferred  
Incentive Plan grants  
Feature  
2013 - 2014  
2015 - 2017  
Feature  
2014 - 2017  
Grant Date  
1 October 2012 (reported 2013 / expiry 30 September 2019) and 1  
October 2013 (reported 2014 / expiry 30 September 2020)  
1 October 2014 (reported 2015 / expiry 30 September 2019),  
1 October 2015 (reported 2016 / expiry 30 September 2020)  
and 1 October 2016 (reported 2017 / expiry 30 September 2021)  
Grant Date  
1 October 2014 (reported 2015), 1 October 2015  
(reported 2016) and 1 October 2016 (reported 2017)  
Instrument  
Notional Shares  
One  
Instrument  
Tranches  
Performance Rights  
Options and Performance Rights  
Tranches  
Two tranches: T1 - 50% of grant and T2 - 50%  
One tranche of Options and three tranches of Performance  
Rights  
Performance Period  
Three years  
Performance Measure Individual performance measure  
Performance Period  
Performance Measure  
T1 – 3 years and T2 – 4 years  
4 years  
Vesting Schedule  
Exercise Price  
Settlement  
100% of performance measure met  
N/A  
50% of award: rTSR against the MSCI Gross Pharmaceutical Index Options - individual performance measure  
50% of award: EPSg  
Performance Rights T1 – rTSR against selected global  
Pharmaceutical and Biotechnology companies, and T2 and T3  
-
EPSg  
Value of the award at vest is based on the five day  
weighted average share price up to the award maturity  
date multiplied by the number of Notional Shares held  
Vesting Schedule  
rTSR at or below performance of Index – 0% vesting  
rTSR exceeds performance of Index – 100% vesting  
EPSg < 8% – 0% vesting  
Tranche 1 - rTSR  
<
50th %ile – 0% vesting  
0th %ile – 50% vesting  
5
Retesting  
No retest  
Between 50th and 75th %ile - Straight line vesting from 50% to  
1
00% vesting  
EPSg 8% to 12% - Straight line vesting from 50% to 100% vesting  
EPSg 12% or above – 100% vesting  
75th %ile – 100% vesting  
Tranche 2 – EPS target performance  
<
8
8% – 0% vesting  
% to 13% - Straight line vesting from 35% to 100% vesting  
13% - 100% vesting  
Tranche 3 – EPS maximum performance  
1
1
1
3% - 0% vesting  
3% to 15% - Straight line vesting from 0% to 100% vesting  
5% - 100% vesting  
Exercise Price  
Retesting  
N/A  
Options only: 2015 – A$73.93, 2016 – A$89.52 and 2017 –  
A$107.25  
1 retest per tranche, after an additional 12 months  
No retest  
66  
CSL Limited Annual Report 2018  
8
8
. Remuneration Changes in 2018 and 2019  
.1 Changes to Reward in 2018  
8.2 Changes to Reward in 2019  
Aligning executive KMP rewards with shareholder outcomes and the long term performance of the organisation is a  
key driver of our reward strategy. The Board has resolved that our CEO, while driving market leading performance, will  
receive no increase to Fixed Reward or STI, at target or maximum, however we will rebalance Total Reward toward the  
long-term equity component over the coming two years. In 2019 we will increase the LTI target opportunity by 13%  
taking the target from the current 310% to 350%, with an anticipated further increase in 2020. This long term equity  
component will remain subject to performance and service conditions. This increase is not only reflective of strong  
performance and leadership but also better aligns the CEO towards the market median of our global pharmaceutical/  
biotechnology peer group.  
For the 2018 year, the Board determined that the CEO would not receive an increase to any component of Total Reward  
as we looked to realign the overall pay-mix. For 2018, Mr Paul Perreault’s salary remained at US$1,751,000, his STI  
target at 120%, with the maximum payout at 180% and the long term incentive (LTI) target of 310%.  
For our executive KMP, an average Total Reward increase of 3% was applied, with the increase granted solely as  
hurdled Performance Share Units under the new LTI program (an average 7% increase to LTI target). These LTI target  
adjustments were made to improve the competitive positioning of roles within the market and also reweight the pay-  
mix towards alignment LTI opportunity.  
Further to this, in 2019 we will increase the LTI target opportunity of our executive KMP by an average of 30% to  
not only drive long term performance delivery for CSL but to also better align our LTI targets within our global  
pharmaceutical/biotechnology peer group. Further increases to LTI targets will be applied in 2020. While no increase  
to STI targets or maximum opportunity is being granted, the Board has determined, after a freeze on Fixed Reward  
increases in 2018, an average increase of 4% to Fixed Reward. These increases have been provided to reflect market  
movement, appropriately recognise the skills and experience of our executive KMP and to position those below the  
market median more competitively within the market range.  
The sum of the adjustments, expressed as a percentage change to prior year, are summarised at the Total Reward item  
in Table 7 (presented in US Dollars). No data is reported for Mr William Campbell or Ms Elizabeth Walker as they were  
not executive KMP when recommendations were made.  
TABLE 7: 2018 ADJUSTMENTS TO CEO AND EXECUTIVE KMP REWARD EFFECTIVE FROM 1 JULY 2017  
TABLE 8: 2019 ADJUSTMENTS TO CEO AND EXECUTIVE KMP REWARD EFFECTIVE FROM 1 JULY 2018  
%
change in STI  
% change in LTI  
opportunity at  
target  
% change in STI  
opportunity at  
target  
% change in LTI  
opportunity at  
target  
opportunity at  
target  
Total Reward  
Adjustment %  
Total Reward  
Adjustment $  
Total Reward  
Adjustment %  
Total Reward  
Adjustment $  
Executive  
% change in FR  
Executive  
% change in FR  
P Perreault  
G Boss  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢊꢍ  
ꢃꢍ  
ꢁꢍ  
ꢄꢍ  
ꢁꢍ  
ꢁꢍ  
ꢁꢍ  
ꢁꢍ  
-
ꢄꢀꢂꢇꢊꢇ  
ꢈꢈꢁꢂꢆꢄꢁ  
ꢀꢅꢂꢄꢅꢄ  
ꢊꢉꢂꢉꢄꢀ  
ꢆꢁꢂꢇꢊꢄ  
ꢉꢀꢂꢈꢄꢆ  
P Perreault  
G Boss  
ꢃꢍ  
ꢁꢍ  
ꢁꢍ  
ꢁꢍ  
ꢁꢍ  
ꢁꢍ  
ꢁꢍ  
ꢉꢍ  
ꢀꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢈꢁꢍ  
ꢇꢄꢍ  
ꢈꢁꢍ  
ꢊꢅꢍ  
ꢇꢄꢍ  
ꢀꢉꢍ  
ꢀꢍ  
ꢆꢍ  
ꢈꢁꢍ  
ꢆꢍ  
ꢊꢃꢃꢂꢀꢃꢃ  
ꢇꢄꢃꢂꢇꢄꢊ  
ꢈꢊꢈꢂꢁꢃꢃ  
ꢊꢁꢇꢂꢆꢁꢊ  
ꢇꢇꢆꢂꢉꢆꢉ  
ꢀꢀꢁꢂꢉꢁꢇ  
ꢅꢄꢂꢁꢃꢀ  
A Cuthbertson  
K Etchberger  
D Lamont  
G Naylor  
ꢈꢄꢍ  
ꢊꢍ  
W Campbell  
A Cuthbertson  
K Etchberger  
D Lamont  
G Naylor  
ꢁꢇꢍ  
ꢈꢁꢍ  
ꢈꢊꢍ  
ꢁꢍ  
ꢈꢃꢍ  
ꢆꢍ  
V Romberg  
ꢊꢍ  
Former Executive Key Management Personnel  
V Romberg  
E Walker  
ꢇꢀꢍ  
ꢇꢉꢍ  
ꢈꢀꢍ  
ꢈꢀꢍ  
ꢇꢊꢃꢂꢈꢊꢄ  
ꢈꢅꢈꢂꢇꢄꢃ  
L Reed  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢃꢍ  
ꢊꢍ  
ꢃꢍ  
ꢁꢍ  
ꢃꢍ  
ꢀꢃꢂꢊꢆꢅ  
-
R Repella  
CSL Limited Annual Report 2018 67  
Directors’ Report continued  
8
.3 Executive KMP Remuneration Received in 2018 – ‘Take-Home’ Pay  
Some of the ‘take-home’ pay in the table was earned over the previous three to five years, but was not paid until  
018. This includes cash settled deferred STI earned in 2015, cash settled LTI earned between 2015 and 2018 and  
equity settled LTI earned over five years from 2013 to 2018. The significant increase in the CSL share price over  
the period of grant to vest has provided executive KMP with a significant increase in value of the LTI component of  
reward.  
2
Table 9 shows the actual ‘take-home’ pay of executive KMP for the year ended 30 June 2018 in US Dollars. This is a  
voluntary disclosure which the Board believes is simple and affords a transparent view of what executive KMP actually  
earned in 2018.  
The main difference between actual ‘take-home’ pay disclosures, and the statutory disclosures in section 11, is the  
inclusion of ‘opportunity to earn performance based pay on achievement of hurdles in the statutory disclosures. The  
take-home’ pay table details the actual vesting outcomes during 2018.  
TABLE 9: EXECUTIVE KMP REMUNERATION RECEIVED OR AVAILABLE AS CASH IN 2018  
2
018 Total  
2018 Short Term  
Cash Settled Deferred  
Total  
STI Received  
Cash Settled  
LTI in 2018  
LTI Vested  
in 2018  
Total  
LTI Received  
Total  
Reward Received  
1
1
12  
13  
14  
15  
Executive  
Fixed Reward  
Incentive  
STI in 2018  
Period Earned  
2018  
ꢈꢂꢆꢇꢁꢂꢇꢊꢅ  
ꢉꢉꢁꢂꢇꢈꢅ  
ꢄꢊꢈꢂꢀꢀꢀ  
ꢊꢅꢈꢂꢆꢇꢆ  
ꢉꢈꢇꢂꢃꢊꢄ  
ꢅꢊꢉꢂꢄꢀꢉ  
ꢈꢂꢈꢁꢇꢂꢆꢅꢈ  
ꢆꢃꢇꢂꢁꢇꢉ  
ꢇꢉꢊꢂꢃꢉꢈ  
2018  
ꢁꢂꢃꢃꢆꢂꢈꢆꢁ  
ꢄꢅꢉꢂꢄꢀꢇ  
ꢉꢁꢃꢂꢈꢁꢄ  
ꢆꢅꢇꢂꢅꢃꢆ  
ꢄꢀꢃꢂꢅꢅꢃ  
ꢈꢂꢃꢊꢇꢂꢊꢀꢅ  
ꢅꢆꢉꢂꢊꢀꢅ  
ꢊꢊꢄꢂꢇꢃꢁ  
ꢈꢅꢅꢂꢇꢅꢁ  
2015 – 2018  
2015 - 2018  
ꢁꢂꢅꢇꢉꢂꢀꢁꢇ  
ꢄꢅꢉꢂꢄꢀꢇ  
2014 – 2018  
ꢈꢂꢃꢅꢈꢂꢁꢀꢈ  
ꢇꢇꢆꢂꢃꢄꢈ  
ꢇꢇꢉꢂꢇꢆꢄ  
ꢈꢆꢈꢂꢈꢈꢈ  
ꢇꢃꢃꢂꢄꢁꢈ  
ꢈꢂꢃꢅꢃꢂꢀꢃꢉ  
ꢈꢀꢆꢂꢇꢅꢄ  
ꢇꢉꢇꢂꢇꢈꢊ  
-
2013 - 2018  
ꢄꢄꢁꢂꢀꢁꢊ  
ꢈꢆꢄꢂꢅꢊꢇ  
-
2013 - 2018  
ꢈꢂꢉꢀꢀꢂꢊꢊꢆ  
ꢀꢈꢀꢂꢃꢇꢁ  
ꢇꢇꢉꢂꢇꢆꢄ  
ꢀꢅꢃꢂꢅꢅꢇ  
ꢁꢉꢁꢂꢀꢀꢆ  
ꢈꢂꢃꢅꢃꢂꢀꢃꢉ  
ꢄꢁꢀꢂꢇꢇꢉ  
ꢁꢆꢉꢂꢃꢈꢉ  
-
2013 - 2018  
ꢊꢂꢁꢅꢀꢂꢀꢆꢅ  
ꢈꢂꢉꢊꢁꢂꢊꢆꢀ  
ꢈꢂꢀꢇꢊꢂꢊꢉꢀ  
ꢇꢂꢄꢃꢉꢂꢈꢇꢃ  
ꢈꢂꢄꢈꢉꢂꢄꢈꢁ  
ꢁꢂꢈꢁꢅꢂꢊꢃꢈ  
ꢁꢂꢃꢊꢈꢂꢊꢄꢁ  
ꢈꢂꢅꢉꢁꢂꢄꢀꢄ  
ꢀꢉꢉꢂꢁꢄꢀ  
P Perreault  
ꢅꢈꢆꢂꢇꢀꢅ  
G Boss  
-
W Campbell16  
-
ꢉꢁꢃꢂꢈꢁꢄ  
A Cuthbertson  
ꢁꢁꢃꢂꢁꢅꢇ  
ꢈꢂꢇꢇꢁꢂꢁꢃꢃ  
ꢄꢀꢃꢂꢅꢅꢃ  
ꢁꢃꢅꢂꢆꢆꢈ  
ꢈꢉꢇꢂꢅꢈꢊ  
-
K Etchberger  
-
D Lamont  
-
ꢈꢂꢃꢊꢇꢂꢊꢀꢅ  
ꢈꢂꢀꢃꢀꢂꢉꢁꢉ  
ꢊꢊꢄꢂꢇꢃꢁ  
G Naylor  
ꢀꢈꢊꢂꢆꢆꢊ  
ꢁꢆꢄꢂꢅꢁꢈ  
ꢈꢇꢁꢂꢊꢅꢅ  
-
V Romberg  
-
-
E Walker17  
ꢈꢅꢅꢂꢇꢅꢁ  
Former Executive Key Management Personnel  
L Reed18  
ꢇꢃꢈꢂꢅꢄꢁ  
ꢈꢈꢊꢂꢁꢇꢈ  
ꢇꢊꢇꢂꢊꢉꢆ  
-
-
-
ꢇꢊꢇꢂꢊꢉꢆ  
-
ꢈꢉꢃꢂꢀꢀꢄ  
-
-
-
ꢈꢉꢃꢂꢀꢀꢄ  
-
ꢉꢁꢄꢂꢈꢉꢉ  
ꢈꢈꢊꢂꢁꢇꢈ  
R Repella19  
1
1
5
6
Value of LTI vested at 19 October 2017 (Performance Rights) that became unrestricted (refer to section 7.1).  
1
1
Includes base salary, retirement / superannuation benefits, other benefits such as insurances, expatriate assignment benefits (school fees, tax services)  
and allowances paid in 2018.  
Reflects ‘take-home’ pay for the period 1 September 2017 to 30 June 2018 being the period W Campbell was executive KMP.  
1
1
2
3
17 Reflects ‘take-home’ pay for the period 1 December 2017 to 30 June 2018 being the period E Walker was executive KMP.  
18 Reflects ‘take-home’ pay for the period 1 July 2017 to 30 November 2017 being the period L Reed was executive KMP.  
Relates to STI earned in 2018 and will be paid in September 2018 (refer to section 6.1).  
Relates to the deferred component (33%) of STI earned in the financial year 2015 (cash portion paid in September 2017). Note STI deferral ceased to  
operate in the calendar year 2015 and deferral from financial year 2016 (maturity in 2018) will be the final deferral amount to be reported (reported in the  
19  
Reflects ‘take-home’ pay for the period 1 July 2017 to 31 August 2017 being the period R Repella was executive KMP.  
2
019 Remuneration Report).  
1
4
Value of awards vested at 30 September 2017 under the Executive Deferred Incentive Plan (EDIP) and paid in October 2017 (refer to section 7.2). Includes  
commencement benefit for D Lamont.  
68  
CSL Limited Annual Report 2018  
9
.
Executive Key Management Personnel Contractual Arrangements  
10. Non-Executive Director Remuneration  
10.1 NED fee policy  
9.1 Contractual provisions for executive KMP  
Executive KMP are employed on individual service contracts that outline the  
terms of their employment, which include:  
Feature  
Description  
Strategic objective  
CSL’s NED fee arrangements are designed to appropriately compensate suitably qualified directors, with appropriate experience and  
expertise, for their Board responsibilities and contribution to Board committees. In the 2018 year, the Board had three Committees for  
which fees were payable  
Duration of  
contract  
Notice Period  
Employee  
Notice Period  
CSL*  
Termination  
Payment  
Maximum aggregate fees  
approved by shareholders  
The current maximum aggregate fee pool of A$4,000,000 was approved by shareholders on 12 October 2016 and has applied from 1 July  
2016. Actual NED fees paid during the year (including superannuation contributions and Committee fees) is within this agreed limit, and  
totalled A$2,556,300. NEDs may be reimbursed for reasonable expenses incurred by them in the course of discharging their duties and  
this reimbursement is not included within this limit  
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.  
Remuneration reviews  
The Board reviews NED fees on an annual basis in line with general industry practice. Fees are set with reference to the responsibilities  
and time commitments expected of NEDs along with consideration to the level of fees paid to NEDs of comparable Australian companies  
9
.2 Other Transactions  
Independence  
NED Equity  
To ensure independence and impartiality is maintained, NEDs do not receive any performance related remuneration  
No loans or related party transactions were made to executive KMP or their  
associates during 2018.  
In July 2018 a new NED Rights Plan was introduced to enable NEDs to build up meaningful levels of equity more quickly. Under the plan  
NEDs will 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 cost. At the end of a nominated restriction period, of three to fifteen years, the NED will be able to access their shares.  
The previous NED equity plan ceased operation on 30 June 2018. Under the plan NEDs received at least 20% of their post-tax base fee  
(
excluding superannuation) in the form of shares. These acquisitions were facilitated through the NED Share Plan which was approved by  
shareholders in 2002. On-market purchases under the plan were made twice yearly, following the announcement of CSL’s half and full  
year results  
Additional shares may be purchased by NEDs on-market at prevailing share prices in accordance with CSL’s Securities Dealing Policy  
Post-Employment Benefits Superannuation contributions are made in accordance with legislation and are included in the reported base fee, and are not additional to  
the base fee. NEDs are not entitled to any compensation on cessation of appointment  
Contracts  
NEDs are appointed under a letter of appointment and are subject to ordinary election and rotation requirements as stipulated in the ASX  
Listing Rules and CSL Limited’s constitution  
CSL Limited Annual Report 2018 69  
Directors’ Report continued  
1
0.2 NED fees in 2018  
10.4 Other Transactions  
11. Statutory Tables  
The following table provides details of current Board and Committee fees  
from 1 July 2016 as no increase was applied at 1 July 2017. Committee fees are  
not payable to the Chairman or to members of the Nomination Committee or  
the Securities & Market Disclosure Committee.  
No loans were made to NEDs during 2018. NEDs and their related entities  
conducted the following transactions with CSL, as part of a normal supplier  
relationship on ‘arm’s length’ terms:  
11.1 Currency Reporting  
Remuneration is reported in US Dollars (USD), unless otherwise stated. This  
is consistent with the presentation currency used by CSL. Remuneration  
for executive KMP outside the US is paid in local currency and converted to  
USD based on the average exchange rate for the 2018 financial year: AUD –  
1.28996 / CHF - 0.96982 / GBP – 0.74249. Valuation of equity awards was  
converted from Australian Dollars (AUD) to USD at the average exchange  
rate of 1.28996 for the 2018 financial year.  
-
CSL Behring in Australia has entered into an agreement to make  
a research grant to the Australia and New Zealand College of  
Anaesthetists (ANZCA), of which Mr Bruce Brook is a member of the  
Board of Governors;  
TABLE 10: NED FEES FOR 2018  
Board Chairman Fee  
Aꢌꢊꢃꢃꢂꢃꢃꢃ  
Board NED Base Fee  
Committee Fees  
Aꢌꢇꢈꢇꢂꢃꢃꢃ  
Committee Chair  
Aꢌꢄꢀꢂꢃꢃꢃ  
-
CSL has entered into a number of contracts, including collaborative  
research agreements, with Monash University, of which Dr Megan Clark  
AC is a member of Council;  
Committee Member  
Audit & Risk Management  
Aꢌꢇꢆꢂꢃꢃꢃ  
-
-
Financial services provided by Bank of America Merrill Lynch of which Dr  
Megan Clark AC is a member of the Australian Advisory Board;  
Human Resources &  
Remuneration  
Aꢌꢄꢀꢂꢃꢃꢃ  
Aꢌꢄꢀꢂꢃꢃꢃ  
Aꢌꢇꢆꢂꢃꢃꢃ  
Aꢌꢇꢆꢂꢃꢃꢃ  
Innovation & Development  
CSL has entered into a number of contracts, including collaborative  
research agreements, with the Walter and Eliza Hall Institute for Medical  
Research (WEHI), of which Ms Marie McDonald is a director;  
1
0.3 NED fees in 2019  
In 2018, following an external review of fees paid by ASX Top 12 companies  
where CSL sat at the median for market capitalisation, the Board determined  
to increase NED fees for the 2018 financial year. The increases have  
been applied to take fees to the median of the peer group and ensure a  
competitive reward package. From 1 July 2018 the Board Chairman fee will  
increase to A$782,500 and the Board NED Base Fee to A$227,500; The Audit  
and Risk Committee Chair fee will increase to A$64,550 and the Committee  
Member fee to A$31,750. There will be no change to the Committee Chair  
and Member fees for the Human Resources and Remuneration Committee  
and Innovation and Development Committee fees as these committees are  
competitively positioned.  
-
-
-
-
Corporate accounts with CityLink, operated by Transurban Group of  
which Ms Christine O’Reilly is a Director;  
Corporate accounts with Energy Australia of which Ms Christine O’Reilly  
was a Director during the year;  
CSL has entered into a research collaboration with the Baker Heart and  
Diabetes Institute, of which Ms Christine O’Reilly is a Director; and  
CSL has a commercial relationship to acquire laboratory supplies from  
Agilent Technologies, of which Dr Tadataka Yamada KBE is a Director.  
During 2018, CSL completed two on-market purchases of shares for the  
purposes of the NED Share Plan. A total of 1,554 shares were purchased  
during the reporting period and the average price paid per share was  
A$139.97  
From 1 July 2018 a new Corporate Governance and Nomination Committee  
will be formed. The Committee Chair fee will be A$28,000 and the Member  
fee A$14,000. Following these fee increases and the introduction of the new  
Corporate Governance and Nomination Committee, the NED fee spend will  
increase by 20% to A$3,076,550. The total spend is 77% of the shareholder  
approved fee pool.  
70  
CSL Limited Annual Report 2018  
1
1.2 Executive KMP Remuneration for 2017 and 2018  
TABLE 11: STATUTORY REMUNERATION DISCLOSURE – EXECUTIVE KMP REMUNERATION (US DOLLARS)  
% of  
remuneration  
performance  
related  
Short Term Benefits  
Post Employment  
Other Long-Term  
Share Based Payment21  
Cash salary  
Non-  
Deferred  
Performance  
Rights  
Performance  
Share Units  
Restricted  
22  
Cash bonus23  
ꢆꢁꢇꢇꢈꢁꢀꢈꢆ  
ꢇꢂꢁꢆꢇꢂꢃꢉꢃ  
ꢉꢊꢅꢁꢉꢃꢄ  
24  
25,26  
EDIP27  
ꢀꢁꢆꢊꢊꢁꢊꢅꢄ  
ꢈꢂꢇꢆꢉꢂꢄꢃꢅ  
ꢄꢊꢉꢁꢂꢆꢊ  
Executive  
Year20  
and fees  
monetary  
Superannuation  
ꢀꢊꢁꢄꢉꢇ  
LSL  
STI  
Options  
ꢀꢁꢀꢊꢊꢁꢆꢂꢇ  
ꢈꢂꢃꢁꢃꢂꢇꢉꢇ  
ꢄꢀꢆꢁꢉꢇꢂ  
Share Units  
Total  
ꢀꢀꢁꢄꢅꢅꢁꢃꢃꢉ  
ꢆꢂꢈꢆꢃꢂꢆꢁꢈ  
ꢄꢁꢄꢃꢅꢁꢅꢃꢇ  
2
018  
ꢀꢁꢂꢃꢃꢁꢄꢅꢅ  
ꢈꢂꢆꢀꢄꢂꢇꢊꢊ  
ꢅꢄꢀꢁꢃꢈꢈ  
ꢉꢆꢁꢇꢄꢊ  
ꢉꢇꢂꢃꢆꢃ  
ꢃꢇꢁꢊꢆꢊ  
-
-
-
ꢉꢂꢈꢁꢃꢈꢄ  
ꢉꢅꢆꢂꢀꢄꢅ  
-
ꢀꢁꢀꢀꢃꢁꢆꢃꢅ  
ꢆꢄꢊꢂꢉꢁꢀ  
ꢀꢀꢉꢁꢄꢂꢈ  
ꢄꢁꢀꢃꢊꢁꢉꢉꢂ  
-
-
-
-
ꢈꢃ%  
ꢊꢉꢍ  
ꢂꢇ%  
P Perreault –  
CEO and Managing Director  
2
017  
ꢈꢆꢂꢄꢄꢃ  
G Boss -  
2018  
2017  
2018  
2017  
ꢀꢊꢁꢄꢉꢇ  
ꢆꢃꢆꢁꢈꢊꢂ  
EVP Legal &  
Group General Counsel  
ꢄꢅꢁꢂꢈꢊꢉ  
ꢉꢄꢃꢁꢄꢀꢉ  
-
ꢄꢃꢇꢂꢁꢊꢀ  
ꢅꢆꢇꢁꢀꢆꢉ  
-
ꢁꢆꢂꢇꢉꢉ  
ꢉꢀꢁꢅꢊꢃ  
-
ꢈꢆꢂꢄꢄꢃ  
ꢀꢊꢁꢂꢉꢇ  
-
-
-
ꢈꢊꢇꢂꢈꢉꢃ  
ꢀꢈꢃꢁꢆꢃꢀ  
-
ꢈꢆꢅꢂꢈꢉꢊ  
-
-
ꢇꢊꢁꢂꢅꢉꢀ  
ꢈꢀꢁꢄꢇꢊ  
-
ꢈꢂꢊꢆꢊꢂꢉꢄꢊ  
ꢀꢁꢊꢄꢅꢁꢀꢆꢇ  
-
ꢉꢀꢍ  
ꢅꢊ%  
-
W Campbell28  
-
-
-
-
ꢃꢆꢃꢁꢂꢈꢅ  
-
EVP & Chief  
Commercial Officer  
-
-
-
-
-
-
2
018  
ꢂꢄꢆꢁꢄꢈꢈ  
ꢊꢁꢁꢂꢃꢅꢅ  
ꢉꢂꢄꢁꢄꢃꢉ  
ꢄꢀꢇꢂꢆꢅꢅ  
ꢊꢊꢇꢁꢇꢂꢅ  
ꢅꢀꢆꢂꢁꢈꢊ  
ꢀꢁꢀꢉꢄꢁꢇꢈꢉ  
ꢆꢃꢃꢂꢈꢃꢁ  
ꢅꢂꢈꢁꢇꢅꢇ  
ꢉꢀꢅꢂꢇꢅꢊ  
ꢄꢃꢇꢁꢈꢃꢆ  
-
ꢈꢊꢄꢁꢊꢇꢈ  
ꢊꢇꢉꢂꢆꢈꢄ  
ꢉꢃꢇꢁꢊꢊꢇ  
ꢀꢁꢀꢂꢇꢊꢀ  
ꢀꢁꢇꢂꢄꢁꢂꢃꢊ  
ꢆꢉꢄꢂꢁꢆꢊ  
ꢊꢈꢅꢁꢂꢃꢊ  
ꢊꢇꢈꢂꢈꢇꢃ  
ꢂꢂꢉꢁꢄꢇꢆ  
ꢉꢇꢁꢂꢊꢈꢆ  
ꢀꢊꢊꢁꢄꢊꢆ  
-
ꢄꢊꢁꢊꢃꢃ  
ꢇꢅꢂꢅꢀꢀ  
ꢃꢃꢁꢃꢊꢆ  
ꢀꢈꢂꢅꢀꢃ  
ꢀꢃꢁꢂꢃꢂ  
ꢈꢀꢂꢊꢀꢉ  
ꢂꢇꢁꢈꢂꢇ  
ꢀꢅꢂꢀꢊꢅ  
ꢀꢃꢆꢁꢄꢀꢅ  
ꢈꢀꢁꢂꢊꢈꢀ  
ꢀꢊꢁꢀꢃꢃ  
-
ꢀꢊꢁꢆꢈꢇ  
ꢇꢉꢂꢁꢈꢃ  
ꢀꢅꢁꢉꢆꢄ  
ꢈꢊꢂꢁꢇꢉ  
ꢀꢊꢁꢆꢈꢇ  
ꢇꢉꢂꢁꢈꢃ  
ꢉꢅꢁꢊꢄꢈ  
ꢇꢉꢂꢁꢈꢃ  
ꢀꢂꢁꢉꢄꢈ  
ꢇꢈꢂꢃꢊꢇ  
-
ꢄꢄꢁꢃꢇꢀ  
ꢀꢊꢀꢁꢆꢅꢊ  
ꢀꢇꢂꢁꢇꢅꢂ  
ꢇꢇꢅꢂꢄꢄꢀ  
ꢀꢀꢄꢁꢂꢊꢈ  
ꢈꢄꢁꢂꢊꢉꢃ  
ꢉꢀꢇꢁꢈꢂꢊ  
ꢁꢈꢇꢂꢉꢄꢈ  
ꢀꢆꢆꢁꢊꢉꢅ  
ꢇꢅꢊꢂꢇꢃꢀ  
ꢀꢂꢉꢁꢆꢉꢆ  
ꢈꢄꢈꢂꢆꢃꢅ  
-
ꢆꢃꢈꢁꢅꢂꢇ  
-
ꢄꢅꢅꢁꢊꢅꢇ  
ꢇꢈꢀꢂꢃꢀꢅ  
ꢄꢅꢊꢁꢊꢉꢃ  
ꢇꢀꢈꢂꢀꢉꢈ  
ꢆꢅꢊꢁꢇꢃꢊ  
ꢀꢁꢃꢂꢊꢊꢇ  
ꢀꢊꢄꢁꢈꢂꢂ  
ꢈꢉꢀꢂꢇꢁꢀ  
ꢃꢆꢂꢁꢅꢃꢀ  
ꢁꢀꢊꢂꢈꢈꢁ  
ꢀꢀꢂꢁꢂꢉꢃ  
-
ꢄꢁꢅꢇꢀꢁꢊꢈꢂ  
ꢇꢂꢇꢄꢃꢂꢊꢈꢁ  
ꢄꢁꢇꢅꢃꢁꢃꢈꢉ  
ꢈꢂꢉꢃꢇꢂꢊꢀꢄ  
ꢆꢁꢆꢆꢂꢁꢃꢆꢉ  
ꢇꢂꢉꢇꢃꢂꢆꢊꢇ  
ꢆꢁꢉꢀꢅꢁꢄꢂꢉ  
ꢇꢂꢄꢉꢄꢂꢉꢆꢉ  
ꢄꢁꢈꢂꢉꢁꢅꢉꢅ  
ꢇꢂꢈꢀꢅꢂꢈꢆꢄ  
ꢅꢊꢂꢁꢃꢄꢀ  
-
ꢅꢊ%  
ꢉꢁꢍ  
ꢅꢊ%  
ꢉꢇꢍ  
ꢅꢊ%  
ꢉꢈꢍ  
ꢅꢆ%  
ꢉꢄꢍ  
ꢂꢀ%  
ꢉꢇꢍ  
ꢅꢆ%  
-
A Cuthbertson -  
Chief Scientific Officer  
2
017  
ꢀꢅꢂꢆꢃꢀ  
ꢇꢀꢈꢂꢈꢁꢆ  
-
-
-
K Etchberger -  
EVP Quality & Business  
Services  
2018  
-
-
ꢀꢊꢆꢁꢄꢂꢄ  
ꢈꢊꢈꢂꢃꢆꢄ  
-
ꢆꢀꢃꢁꢄꢇꢀ  
-
2017  
-
-
-
-
2018  
2017  
2018  
2017  
ꢄꢆꢁꢂꢅꢇ  
-
ꢆꢆꢅꢁꢂꢊꢉ  
-
D Lamont -  
Chief Financial Officer  
ꢇꢇꢂꢉꢆꢅ  
-
ꢄꢆꢉꢁꢇꢉꢉ  
ꢇꢅꢆꢂꢄꢇꢊ  
ꢂꢉꢁꢊꢊꢄ  
ꢀꢇꢂꢈꢆꢇ  
-
-
-
-
ꢄꢇꢁꢅꢊꢆ  
ꢄꢀꢉꢁꢂꢂꢅ  
ꢈꢆꢄꢂꢊꢆꢀ  
ꢀꢊꢆꢁꢀꢇꢃ  
ꢈꢊꢃꢂꢇꢆꢃ  
-
ꢃꢉꢀꢁꢄꢈꢅ  
-
G Naylor -  
President, Seqirus  
ꢇꢇꢂꢅꢇꢄ  
-
-
V Romberg -  
EVP Manufacturing  
Operations & Planning  
E Walker2  
EVP & Chief Human Resources  
Officer  
L Reed30 - SVP Human  
Resources (Former Executive  
Key Management Personnel)  
2018  
2017  
2018  
2017  
2018  
2017  
-
-
-
-
-
-
-
-
ꢆꢂꢊꢁꢉꢉꢊ  
-
-
-
9
-
ꢀꢇꢀꢁꢇꢀꢂ  
ꢀꢊꢁꢆꢂꢇ  
-
-
-
-
-
-
-
-
-
-
-
-
-
ꢀꢈꢈꢁꢈꢆꢆ  
ꢀꢄꢊꢂꢈꢆꢉ  
ꢀꢀꢃꢁꢄꢆꢂ  
ꢉꢄꢃꢂꢆꢄꢆ  
ꢄꢂꢄꢁꢂꢅꢈ  
ꢁꢉꢇꢂꢇꢄꢆ  
-
ꢀꢇꢁꢃꢆꢀ  
ꢇꢁꢂꢆꢀꢄ  
ꢆꢁꢊꢅꢀ  
ꢄꢁꢅꢈꢈ  
ꢇꢃꢂꢇꢅꢄ  
-
-
ꢀꢇꢄꢁꢇꢀꢈ  
ꢈꢃꢇꢂꢃꢉꢈ  
(ꢆꢇꢁꢇꢅꢆ)  
ꢈꢅꢉꢂꢄꢉꢀ  
ꢀꢇꢀꢁꢇꢆꢈ  
ꢈꢁꢁꢂꢁꢆꢄ  
ꢃꢇꢁꢊꢇꢃ  
ꢇꢃꢆꢂꢆꢀꢄ  
ꢀꢅꢊꢁꢉꢉꢄ  
ꢈꢅꢁꢂꢆꢀꢃ  
ꢀꢅꢀꢁꢆꢄꢀ  
ꢀꢃꢊꢂꢈꢀꢉ  
ꢈꢃꢂꢁꢆꢄꢈ  
ꢈꢂꢇꢅꢇꢂꢆꢊꢃ  
ꢆꢀꢊꢁꢄꢈꢇ  
ꢇꢂꢁꢆꢉꢂꢊꢈꢆ  
ꢂꢅ%  
ꢉꢈꢍ  
ꢅꢆ%  
ꢊꢃꢍ  
-
R Repella3 - EVP Commercial 2018  
1
ꢄꢈꢁꢊꢄꢇ  
ꢅꢉꢂꢁꢈꢆ  
Operations (Former Executive  
Key Management Personnel)  
2017  
ꢊꢉꢉꢂꢀꢆꢃ  
ꢀꢈꢂꢅꢄꢊ  
ꢈꢆꢂꢄꢄꢃ  
-
2
2
0
22  
23  
27  
The AUD, GBP and CHF compensation paid during the years ended 30 June 2017 and 30 June 2018 have  
been converted to USD. For the 30 June 2018 compensation, this has been converted to USD at an average  
exchange rate for the 2018 financial year: AUD – 1.28996 / CHF – 0.96982 / GBP – 0.74249. Both the amount  
of remuneration and any movement in comparison to prior years may be influenced by changes in the AUD/  
USD, GBP/USD and CHF/USD exchange rates. No sign-on or termination benefits were paid in 2018.  
Includes cash salary, cash allowances and short term compensated absences, such as annual leave  
entitlements accrued but not taken during the year.  
The fair value of the EDIP cash settled deferred payment has been measured by reference to the CSL  
share price at reporting date, adjusted for the dividend yield and the number of days left in the vesting  
period.  
The cash bonus in respect of 2018 is scheduled to be paid in September 2018. The cash component of the  
cash bonus received in 2017 was paid in full during 2018 for all executive KMP as previously disclosed, with  
no adjustment.  
28  
The period reported is 1 September 2017 to 30 June 2018 being the period W Campbell was executive  
KMP.  
1
The Performance Rights and Options have been valued using a combination of the Binomial and Black Scholes  
option valuation methodologies including Monte Carlo simulation as at the grant date adjusted for the  
probability of hurdles being achieved. The Performance Share Units have been valued using the Black Scholes  
option valuation methodology. This valuation was undertaken by PricewaterhouseCoopers. The amounts  
disclosed have been determined by allocating the value of the Options, Performance Rights and Performance  
Share Units over the period from grant date to vesting date in accordance with applicable accounting  
standards. As a result, the current year includes Options and Performance Rights that were granted in prior  
years and are expected to or will lapse.  
24  
29  
30  
Includes any health benefits, insurances benefits and other benefits. For International Assignees this may  
include personal tax advice, health insurance and other expatriate assignment benefits.  
The period reported is 1 December 2017 to 30 June 2018 being the period E Walker was executive KMP.  
L Reed was the former SVP Human Resources and retired from this role 30 November 2017. The period  
reported is 1 July 2017 to 30 November 2017 being the period L Reed was executive KMP.  
2
5
The fair value of the deferred incentive (STI deferral) has been measured by reference to the CSL share  
price at reporting date, adjusted for the dividend yield and the number of days left in the vesting period.  
31  
R Repella was the former EVP Commercial Operations and retired from this role 31 August 2017. The  
period reported is 1 July 2017 to 31 August 2017 being the period R Repella was executive KMP.  
26  
STI deferral was removed in 2016 however deferred awards for the Strategic Leadership Group are still  
outstanding.  
CSL Limited Annual Report 2018  
71  
Directors’ Report continued  
1
1.3 Summary of Executive KMP allocated, vested or lapsed equity  
11.4 Legacy LTI awards vested and lapsed in 2018  
Executive KMP LTI opportunities are detailed in Table 12 below. These grants are the first awards made under the new  
Executive Performance and Alignment Plan. To determine the number of PSUs issued, a five day weighted average  
share price is used. The LTI opportunity for each element is divided by the calculated face value to determine the  
number of awards granted. The number and both face and fair value (as determined by accounting standards) of  
PSUs awarded to executive KMP in 2018 is shown in the following table in US Dollars. The awards had a grant date of 1  
October 2017, 25% of each award will vest on 1 September in 2018, 2019, 2020 and 2021 provided performance hurdles  
have been met. For Ms Elizabeth Walker, the award had a grant date of 1 March 2018 and the same vesting dates and  
performance criteria apply.  
The table below summarises the number of LTI awards vested and lapsed in US Dollars for each executive KMP. No  
EDIP awards lapsed in 2018.  
TABLE 13: LTI AWARDS VESTED AND LAPSED IN 2018  
EDIP vested (cash settled)35  
Performance Rights vested  
Performance Rights lapsed  
Executive  
Number  
ꢄꢂꢃꢉꢄ  
ꢈꢂꢊꢃꢇ  
-
Value36  
Number  
ꢊꢂꢁꢁꢉ  
ꢇꢂꢊꢇꢃ  
-
Value 37  
Number  
ꢈꢃꢂꢄꢃꢅ  
ꢇꢂꢈꢅꢉ  
ꢇꢂꢈꢊꢅ  
ꢈꢂꢊꢀꢀ  
ꢈꢂꢅꢁꢈ  
ꢈꢃꢂꢄꢃꢃ  
ꢈꢂꢀꢇꢆ  
ꢇꢂꢄꢇꢄ  
-
Value38  
P Perreault  
G Boss  
ꢄꢄꢁꢂꢀꢁꢊ  
ꢈꢆꢄꢂꢅꢊꢇ  
-
ꢆꢃꢈꢂꢄꢆꢇ  
ꢇꢅꢊꢂꢇꢃꢉ  
-
ꢈꢂꢃꢅꢈꢂꢁꢀꢈ  
ꢇꢇꢆꢂꢃꢄꢈ  
ꢇꢇꢉꢂꢇꢆꢄ  
ꢈꢆꢈꢂꢈꢈꢈ  
ꢇꢃꢃꢂꢄꢁꢈ  
ꢈꢂꢃꢅꢃꢂꢀꢃꢉ  
ꢈꢀꢆꢂꢇꢅꢄ  
ꢇꢉꢇꢂꢇꢈꢊ  
-
TABLE 12: LTI GRANTED IN 2018  
Performance Share Units  
Opportunity  
W Campbell39  
A Cuthbertson  
K Etchberger  
D Lamont  
ꢇꢂꢆꢁꢉ  
ꢈꢂꢀꢅꢈ  
-
ꢁꢃꢅꢂꢆꢆꢈ  
ꢈꢉꢇꢂꢅꢈꢊ  
-
ꢀꢂꢄꢊꢄ  
ꢇꢂꢇꢆꢁ  
-
ꢀꢅꢅꢂꢆꢅꢉ  
ꢇꢀꢅꢂꢀꢄꢉ  
-
at Target level  
achievement as %  
of FR  
Number of  
Performance Share  
Face Value  
of grant  
Fair Value  
of grant  
3
2
33  
34  
Executive  
Units granted  
P Perreault  
G Boss  
ꢁꢈꢃꢍ  
ꢈꢀꢀꢍ  
ꢈꢆꢁꢍ  
ꢈꢈꢄꢍ  
ꢈꢀꢀꢍ  
ꢆꢆꢍ  
ꢄꢇꢂꢃꢄꢇ  
ꢆꢂꢁꢇꢊ  
ꢈꢃꢂꢄꢇꢅ  
ꢆꢂꢀꢀꢇ  
ꢊꢂꢉꢃꢅ  
ꢆꢂꢈꢄꢄ  
ꢈꢃꢂꢅꢇꢆ  
ꢅꢂꢈꢅꢃ  
ꢇꢂꢈꢃꢊ  
ꢄꢂꢀꢃꢄꢂꢄꢃꢀ  
ꢆꢉꢀꢂꢊꢀꢀ  
ꢈꢂꢃꢅꢁꢂꢀꢈꢉ  
ꢆꢊꢉꢂꢉꢆꢆ  
ꢊꢅꢃꢂꢈꢆꢃ  
ꢆꢀꢉꢂꢆꢆꢈ  
ꢈꢂꢈꢁꢀꢂꢆꢄꢇ  
ꢅꢄꢀꢂꢁꢉꢀ  
ꢇꢉꢁꢂꢉꢄꢅ  
ꢄꢂꢈꢉꢈꢂꢀꢊꢅ  
ꢆꢇꢄꢂꢊꢃꢆ  
ꢈꢂꢃꢀꢀꢂꢃꢄꢀ  
ꢆꢁꢊꢂꢈꢈꢄ  
ꢊꢄꢀꢂꢄꢃꢊ  
ꢆꢃꢆꢂꢉꢄꢁ  
ꢈꢂꢃꢆꢁꢂꢉꢇꢇ  
ꢅꢈꢈꢂꢇꢆꢉ  
ꢇꢄꢉꢂꢈꢈꢁ  
G Naylor  
ꢁꢂꢄꢁꢇ  
ꢈꢂꢈꢁꢁ  
-
ꢁꢆꢄꢂꢅꢁꢈ  
ꢈꢇꢁꢂꢊꢅꢅ  
-
ꢄꢂꢉꢅꢅ  
ꢈꢂꢆꢁꢁ  
-
ꢉꢇꢇꢂꢊꢈꢇ  
ꢇꢃꢃꢂꢇꢆꢉ  
-
V Romberg  
E Walker40  
W Campbell  
A Cuthbertson  
K Etchberger  
D Lamont  
G Naylor  
Former Executive Key Management Personnel  
L Reed41  
-
-
-
-
-
-
-
-
ꢈꢂꢄꢀꢄ  
-
ꢈꢉꢃꢂꢀꢀꢄ  
-
R Repella42  
ꢈꢇꢀꢍ  
ꢈꢄꢃꢍ  
ꢉꢇꢍ  
3
3
5
6
Awards were granted on 1 October 2014 with the exception of D Lamont where the award was January 2016 on commencement of employment.  
V Romberg  
E Walker  
Performance Rights vested during the year, multiplied by the share price at the date of vesting. The AUD value was converted to USD at an average exchange  
rate for the 2018 financial year of 1.28996. The share price at vesting was A$140.95.  
3
3
3
7
8
9
Performance Rights lapsed during the year, multiplied by the share price at the date of lapsing. The AUD value was converted to USD at an average exchange  
rate for the 2018 financial year of 1.28996. The share price at lapsing was A$140.95.  
Former Executive Key Management Personnel  
Notional Shares vested during the year, multiplied by the share price at the date of vesting. The AUD value was converted to USD at an average exchange rate for  
the 2018 financial year of 1.28996. The share price at vesting was A$133.96.  
L Reed  
-
-
-
-
-
-
-
-
For W Campbell the period reported is 1 September 2017 to 30 June 2018 being the period W Campbell was executive KMP.  
For E Walker the period reported is 1 December 2017 to 30 June 2018 being the period E Walker was executive KMP.  
For L Reed the period reported is 1 July 2017 to 30 November 2017 being the period L Reed was executive KMP.  
For R Repella the period reported is 1 July 2017 to 31 August 2017 being the period R Repella was executive KMP.  
4
4
4
0
R Repella  
1
2
3
3
3
2
3
4
The number of Performance Share Units was calculated based on a five day weighted average share price being A$133.37. The AUD value was converted to USD  
at an average exchange rate for the 2018 financial year of 1.28996.  
The face value is calculated using a share price of A$133.96 being the share price on the date of grant – 1 October 2017. For E Walker the face value is A$161.42  
being the CSL share price at 1 March 2018.  
The number of Performance Share Units is calculated based on an assessment of the fair market value of the instruments in accordance with the accounting  
standards (refer to Note 18 in the Financial Statements). The fair value of each Performance Share Unit granted on 1 October 2017 was Tranche 1: A$131.26;  
Tranche 2: A$129.01; Tranche 3: A$126.78 and Tranche 4: A$124.60. For the awards granted 1 March 2018 the fair values were Tranche 1: A$160.32; Tranche 2:  
A$157.95; Tranche 3: A$155.61 and Tranche 4: A$153.31.  
7
2
CSL Limited Annual Report 2018  
1
1.5 Non-Executive Director Fees for 2017 and 2018  
All amounts are presented in US Dollars.  
TABLE 14: STATUTORY REMUNERATION DISCLOSURE – NON-EXECUTIVE DIRECTOR REMUNERATION  
Short term benefits  
Post-employment  
Superannuation  
Non-Executive Director  
Year43  
ꢄꢇꢀꢈ  
ꢇꢃꢈꢊ  
ꢄꢇꢀꢈ  
ꢇꢃꢈꢊ  
ꢄꢇꢀꢈ  
ꢇꢃꢈꢊ  
ꢄꢇꢀꢈ  
ꢇꢃꢈꢊ  
ꢄꢇꢀꢈ  
ꢇꢃꢈꢊ  
ꢄꢇꢀꢈ  
ꢇꢃꢈꢊ  
ꢄꢇꢀꢈ  
ꢇꢃꢈꢊ  
ꢄꢇꢀꢈ  
ꢇꢃꢈꢊ  
ꢄꢇꢀꢈ  
ꢇꢃꢈꢊ  
Cash salary and fees44  
ꢉꢄꢂꢁꢀꢀꢇ  
ꢀꢅꢅꢂꢆꢆꢊ  
ꢄꢇꢆꢁꢃꢂꢊ  
ꢈꢅꢊꢂꢁꢉꢉ  
ꢀꢊꢇꢁꢅꢅꢉ  
ꢈꢆꢄꢂꢇꢃꢅ  
ꢀꢊꢂꢁꢄꢉꢉ  
ꢈꢆꢈꢂꢀꢄꢈ  
ꢂꢀꢁꢂꢂꢇ  
Retirement benefits  
Total  
ꢉꢃꢄꢁꢅꢉꢄ  
ꢄꢇꢉꢂꢈꢅꢊ  
ꢄꢄꢄꢁꢃꢈꢂ  
ꢇꢈꢉꢂꢈꢈꢉ  
ꢄꢇꢅꢁꢄꢇꢂ  
ꢈꢅꢅꢂꢅꢄꢀ  
ꢄꢀꢄꢁꢂꢊꢂ  
ꢈꢅꢉꢂꢈꢅꢉ  
ꢂꢂꢁꢊꢇꢊ  
-
ꢀꢉꢁꢉꢃꢄ  
ꢇꢉꢂꢁꢈꢃ  
ꢀꢊꢁꢇꢇꢈ  
ꢈꢆꢂꢊꢄꢃ  
ꢀꢉꢁꢉꢃꢄ  
ꢈꢀꢂꢊꢀꢄ  
ꢀꢉꢁꢉꢃꢄ  
ꢈꢀꢂꢊꢀꢄ  
ꢅꢁꢀꢆꢊ  
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
J Shine  
Chairman  
D Anstice  
B Brook  
M Clark  
A Hussain45  
M McDonald  
B McNamee46  
C O’Reilly  
-
ꢀꢂꢈꢁꢅꢃꢊ  
ꢈꢉꢄꢂꢉꢉꢀ  
ꢅꢆꢁꢈꢅꢅ  
ꢀꢉꢁꢉꢃꢄ  
ꢈꢀꢂꢊꢀꢉ  
ꢉꢁꢊꢇꢆ  
-
ꢀꢊꢃꢁꢀꢊꢀ  
ꢈꢆꢃꢂꢀꢈꢃ  
ꢅꢊꢁꢂꢅꢊ  
-
-
ꢀꢊꢄꢁꢄꢀꢅ  
ꢈꢆꢉꢂꢊꢈꢁ  
ꢀꢈꢅꢁꢇꢉꢄ  
ꢈꢀꢆꢂꢄꢆꢆ  
ꢀꢉꢁꢉꢃꢄ  
ꢈꢀꢂꢊꢀꢄ  
-
ꢄꢇꢂꢁꢂꢉꢈ  
ꢇꢃꢈꢂꢀꢄꢆ  
ꢀꢈꢅꢁꢇꢉꢄ  
ꢈꢀꢆꢂꢄꢆꢆ  
T Yamada47  
-
-
Former Non-Executive Director  
J Akehurst48  
ꢄꢇꢀꢈ  
ꢇꢃꢈꢊ  
ꢄꢇꢀꢈ  
ꢇꢃꢈꢊ  
-
ꢄꢃꢂꢊꢆꢃ  
ꢉꢅꢁꢃꢊꢉ  
ꢈꢆꢇꢂꢉꢃꢊ  
-
ꢀꢂꢈꢈꢇ  
-
-
-
-
-
ꢄꢀꢂꢆꢅꢇ  
ꢅꢀꢁꢈꢅꢄ  
ꢈꢅꢅꢂꢅꢄꢄ  
ꢉꢁꢆꢅꢂ  
M Renshaw49  
ꢈꢊꢂꢁꢀꢆ  
4
3
45  
46  
The AUD compensation paid during the years ended 30 June 2017 and 30 June 2018 have been converted to  
USD. For the 2018 compensation, this has been converted to USD at an average exchange rate for the 2018  
financial year: AUD – 1.28996. Both the amount of remuneration and any movement in comparison to prior  
years may be influenced by changes in the AUD/USD exchange rates.  
In 2018 A Hussain was a NED for the period 14 February 2018 to 30 June 2018.  
In 2018 B McNamee was a NED for the period 14 February 2018 to 30 June 2018.  
In 2017 T Yamada was a NED for the period 1 September 2016 to 30 June 2017.  
47  
4
4
48 In 2017 J Akehurst was a NED for the period 1 July 2016 to 12 October 2016.  
49  
As disclosed in the section titled “Non-Executive Director Remuneration”, NEDs participate in the NED  
Share 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 shares in the Company which are purchased on-  
market at prevailing share prices. The value of this remuneration element is included in cash, salary and fees.  
In 2018 M Renshaw was a NED for the period 1 July 2017 to 18 October 2017.  
CSL Limited Annual Report 2018 73  
Directors’ Report continued  
1
1.6 KMP Shareholdings  
Details of shares held directly, indirectly or beneficially by each executive KMP and NED, including their related parties,  
is provided in Table 15. For executive KMP, details of Options, Performance Rights, PSUs and Restricted Share Units  
held are provided in Table 16. Any amounts are presented in US Dollars.  
TABLE 15: NED AND EXECUTIVE KMP SHAREHOLDINGS  
Number of shares acquired on  
Value of shares acquired on  
0
exercise of Options, Performance exercise of Options5 , Performance  
Rights, Performance Share Units or Rights, Performance Share Units or  
Number of (Shares Sold) /  
Purchased  
KMP  
Balance at 1 July 2017 Restricted Share Units during year Restricted Share Units during year  
Balance at 30 June 2018  
Non-Executive Director  
J Shine  
ꢅꢂꢆꢄꢃ  
ꢈꢁꢂꢁꢀꢀ  
ꢀꢂꢉꢁꢁ  
ꢈꢂꢀꢆꢄ  
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(ꢇꢃꢉ)  
ꢈꢆꢉ  
ꢈꢀꢅ  
ꢆꢇꢅ  
ꢈꢊ  
ꢅꢂꢉꢀꢀ  
ꢈꢁꢂꢄꢁꢃ  
ꢀꢂꢊꢆꢇ  
ꢇꢂꢁꢈꢀ  
ꢈꢊ  
5
0
The value at exercise date has been  
D Anstice  
determined by the share price at the close  
of business on exercise date less the Option  
exercise price, multiplied by the number  
of Options exercised during 2018. For  
Performance Rights, Performance Share  
Units and Restricted Share Units, the value  
at exercise date has been determined by the  
share price at the close of business on the  
exercise date. The AUD value was converted to  
USD at an average exchange rate for the year  
of 1.28996.  
B Brook#  
M Clark  
A Hussain51  
M McDonald  
B McNamee52  
ꢇꢂꢁꢅꢊ  
ꢈꢊꢊꢂꢄꢆꢊ  
ꢁꢂꢃꢄꢁ  
ꢅꢀ  
ꢈꢀꢅ  
ꢈꢊ  
ꢇꢂꢄꢀꢉ  
ꢈꢊꢊꢂꢉꢃꢀ  
ꢁꢂꢇꢃꢇ  
ꢇꢄꢊ  
5
5
5
5
5
5
5
1
The opening balance for A Hussain is 14  
February 2018 being the date A Hussain  
became a NED.  
C O’Reilly  
ꢈꢀꢅ  
ꢈꢉꢁ  
T Yamada  
2
3
4
5
6
7
The opening balance for B McNamee is 14  
February 2018 being the date B McNamee  
became a NED.  
Executive Key Management Personnel  
P Perreault  
ꢄꢃꢂꢁꢃꢃ  
ꢉꢂꢇꢁꢈ  
-
ꢄꢂꢃꢉꢄ  
ꢄꢄꢁꢂꢀꢁꢊ  
(ꢇꢂꢄꢁꢁ)  
ꢄꢇꢂꢆꢁꢇ  
ꢉꢂꢁꢀꢀ  
ꢄꢇ  
The opening balance for W Campbell is 1  
September 2017 being the date W Campbell  
became an executive KMP.  
G Boss  
ꢈꢂꢊꢃꢇ  
ꢈꢆꢉꢂꢉꢇꢇ  
(ꢈꢂꢄꢆꢅ)  
The opening balance for E Walker is 1  
December 2017 being the date E Walker  
became an executive KMP.  
W Campbell53  
A Cuthbertson  
K Etchberger  
D Lamont  
-
-
ꢄꢇ  
ꢈꢈꢀꢂꢈꢀꢁ  
ꢈꢇꢂꢊꢃꢀ  
ꢈꢂꢁꢃꢃ  
ꢀꢈꢂꢀꢈꢇ  
ꢊꢊꢄ  
ꢈꢄꢂꢃꢉꢃ  
ꢈꢂꢉꢆꢀꢂꢁꢇꢈ  
(ꢁꢆꢂꢃꢈꢃ)  
ꢅꢈꢂꢈꢅꢁ  
ꢈꢇꢂꢊꢃꢀ  
ꢈꢂꢁꢄꢄ  
ꢉꢁꢂꢄꢁꢈ  
ꢆꢀꢊ  
The closing balance for L Reed is 30 November  
2
017 being the date L Reed ceased to be an  
-
ꢈꢆꢅꢂꢆꢇꢄ  
-
executive KMP.  
The closing balance for M Renshaw is 18  
October 2017 being the date M Renshaw  
ceased to be a KMP.  
-
-
ꢄꢄ  
G Naylor  
ꢁꢆꢂꢇꢉꢃ  
ꢁꢂꢆꢆꢁꢂꢆꢆꢇ  
(ꢈꢉꢂꢈꢀꢈ)  
The closing balance for R Repella is 31 August  
2017 being the date R Repella ceased to be an  
executive KMP.  
V Romberg  
E Walker54  
-
-
-
-
ꢊꢇ  
-
-
-
#
The opening and closing balances for B Brook  
have been corrected since the report was  
published on 15 August 2018 to exclude 50  
shares that had been incorrectly included.  
Former Key Management Personnel  
L Reed55  
M Renshaw56  
R Repella57  
-
ꢅꢂꢈꢊꢈ  
ꢈꢂꢁꢃꢀ  
-
-
-
-
-
-
-
ꢆꢈ  
-
-
ꢅꢂꢇꢄꢇ  
ꢈꢂꢁꢃꢀ  
74  
CSL Limited Annual Report 2018  
There have been no movements in shareholdings of executive KMP or NEDs between 30 June 2018 and the date of this Report.  
TABLE 16: EXECUTIVE KMP OPTION, PERFORMANCE RIGHT, PERFORMANCE SHARE UNIT AND RESTRICTED SHARE UNIT HOLDINGS  
Balance at 30 June 2018  
Vested58  
Balance at 30 June  
2018  
Number Vested  
during year  
KMP  
Instrument  
Balance at 1 July 2017  
Number Granted  
Number Exercised  
Number Lapsed  
Unvested  
Executive KMP  
Options  
Rights  
PSUs  
ꢀꢃꢉꢂꢇꢄꢁ  
-
-
-
ꢀꢃꢉꢂꢇꢄꢁ  
ꢈꢀꢈꢂꢅꢇꢃ  
ꢄꢇꢂꢃꢄꢇ  
ꢊꢀꢂꢆꢃꢈ  
ꢇꢄꢂꢅꢀꢅ  
ꢆꢂꢁꢇꢊ  
-
-
-
ꢀꢃꢉꢂꢇꢄꢁ  
ꢈꢀꢈꢂꢅꢇꢃ  
ꢄꢇꢂꢃꢄꢇ  
ꢊꢀꢂꢆꢃꢈ  
ꢇꢄꢂꢅꢀꢅ  
ꢆꢂꢁꢇꢊ  
-
P Perreault  
G Boss  
ꢈꢄꢀꢂꢁꢇꢈ  
-
ꢄꢂꢃꢉꢄ  
ꢊꢂꢁꢁꢉ  
ꢄꢂꢃꢉꢄ  
-
-
ꢄꢇꢂꢃꢄꢇ  
-
-
-
-
Options  
Rights  
PSUs  
ꢊꢀꢂꢆꢃꢈ  
-
-
-
-
-
ꢁꢃꢂꢁꢊꢈ  
-
ꢈꢂꢊꢃꢇ  
ꢇꢂꢊꢇꢃ  
ꢈꢂꢊꢃꢇ  
-
-
ꢆꢂꢁꢇꢊ  
-
-
-
-
Options  
Rights  
PSUs  
-
-
-
-
-
-
W Campbell59  
A Cuthbertson  
K Etchberger  
D Lamont  
ꢈꢊꢂꢇꢊꢊ  
-
-
-
ꢈꢊꢂꢇꢊꢊ  
ꢈꢃꢂꢄꢇꢅ  
-
-
-
ꢈꢊꢂꢇꢊꢊ  
ꢈꢃꢂꢄꢇꢅ  
-
-
ꢈꢃꢂꢄꢇꢅ  
-
-
-
-
Options  
Rights  
PSUs  
-
-
-
-
-
-
ꢄꢁꢂꢆꢉꢃ  
-
ꢈꢄꢂꢃꢉꢃ  
ꢀꢂꢄꢊꢄ  
ꢁꢀꢂꢇꢇꢄ  
ꢆꢂꢀꢀꢇ  
ꢉꢉꢂꢅꢊꢀ  
ꢇꢁꢂꢁꢊꢃ  
ꢊꢂꢉꢃꢅ  
-
ꢇꢂꢆꢁꢉ  
-
ꢁꢀꢂꢇꢇꢄ  
ꢆꢂꢀꢀꢇ  
ꢉꢉꢂꢅꢊꢀ  
ꢇꢁꢂꢁꢊꢃ  
ꢊꢂꢉꢃꢅ  
-
-
ꢆꢂꢀꢀꢇ  
-
-
-
-
Options  
Rights  
PSUs  
ꢉꢉꢂꢅꢊꢀ  
-
-
-
-
-
ꢇꢊꢂꢈꢀꢀ  
-
ꢈꢂꢀꢅꢈ  
ꢇꢂꢇꢆꢁ  
ꢈꢂꢀꢅꢈ  
-
-
ꢊꢂꢉꢃꢅ  
-
-
-
-
Options  
Rights  
PSUs  
-
-
-
-
-
-
ꢁꢅꢂꢇꢇꢊ  
-
-
-
ꢁꢅꢂꢇꢇꢊ  
ꢆꢂꢈꢄꢄ  
ꢊꢈꢂꢉꢀꢁ  
ꢆꢊꢂꢈꢆꢅ  
ꢈꢃꢂꢅꢇꢆ  
ꢉꢅꢂꢊꢁꢇ  
ꢁꢁꢂꢅꢆꢈ  
ꢅꢂꢈꢅꢃ  
-
-
-
ꢁꢅꢂꢇꢇꢊ  
ꢆꢂꢈꢄꢄ  
ꢊꢈꢂꢉꢀꢁ  
ꢀꢇꢂꢊꢃꢁ  
ꢈꢃꢂꢅꢇꢆ  
ꢉꢉꢂꢆꢉꢇ  
ꢇꢁꢂꢇꢁꢅ  
ꢅꢂꢈꢅꢃ  
-
-
ꢆꢂꢈꢄꢄ  
-
-
-
-
Options  
Rights  
PSUs  
ꢅꢃꢂꢄꢉꢁ  
-
ꢈꢆꢂꢅꢇꢃ  
-
-
-
G Naylor  
ꢈꢈꢇꢂꢇꢇꢆ  
-
ꢈꢅꢂꢁꢀꢃ  
ꢄꢂꢉꢅꢅ  
ꢁꢂꢄꢁꢇ  
ꢀꢀꢂꢀꢆꢉ  
-
ꢈꢃꢂꢅꢇꢆ  
-
-
-
-
-
-
-
-
-
-
-
Options  
Rights  
PSUs  
ꢉꢅꢂꢊꢁꢇ  
-
-
-
ꢇꢂꢆꢊꢃ  
V Romberg  
ꢁꢄꢂꢆꢈꢀ  
-
ꢈꢂꢆꢁꢁ  
ꢈꢂꢈꢁꢁ  
ꢈꢃꢂꢊꢀꢇ  
-
-
ꢅꢂꢈꢅꢃ  
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Options  
Rights  
PSUs  
-
-
-
ꢇꢂꢈꢃꢊ  
-
-
-
E Walker60  
ꢅꢃꢉ  
ꢉꢃꢀ  
ꢁꢂꢃꢈꢁ  
ꢉꢃꢀ  
ꢁꢂꢃꢈꢁ  
ꢉꢃꢀ  
ꢉꢈ  
RSUs  
5
8
9
Vested awards are exercisable to the executive KMP. There are no vested and unexercisable awards.  
The opening balance for W Campbell is 1 September 2017 being the date W Campbell became an executive KMP.  
The opening balance for E Walker is 1 December 2017 being the date E Walker became an executive KMP.  
Restricted Share Units granted to E Walker in prior role of Chief Talent Officer.  
5
6
6
0
1
CSL Limited Annual Report 2018 75  
Directors’ Report continued  
TABLE 16: EXECUTIVE KMP OPTION, PERFORMANCE RIGHT, PERFORMANCE SHARE UNIT AND RESTRICTED SHARE UNIT HOLDINGS CONTINUED  
Balance at 30 June 2018  
Vested58  
Balance at 30 June Number Vested during  
KMP  
Instrument  
Balance at 1 July 2017  
Number Granted  
Number Exercised  
Number Lapsed  
2018  
year  
Unvested  
Former Executive Key Management Personnel  
Options  
ꢄꢇꢂꢁꢀꢇ  
ꢈꢊꢂꢆꢀꢊ  
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
ꢄꢇꢂꢁꢀꢇ  
ꢈꢊꢂꢆꢀꢊ  
-
-
-
-
-
-
-
-
-
-
-
-
-
ꢄꢇꢂꢁꢀꢇ  
ꢈꢊꢂꢆꢀꢊ  
-
L Reed62  
Rights  
PSUs  
Options  
Rights  
PSUs  
ꢆꢇꢂꢁꢁꢆ  
ꢁꢀꢂꢄꢃꢉ  
-
ꢆꢇꢂꢁꢁꢆ  
ꢁꢀꢂꢄꢃꢉ  
-
ꢆꢇꢂꢁꢁꢆ  
ꢁꢀꢂꢄꢃꢉ  
-
R Repella63  
6
6
2
3
The grant, exercise and lapse activity along with the closing balance for L Reed is for the period 1 July 2017 to 30 November 2017 being the period L Reed was executive KMP.  
The grant, exercise and lapse activity along with the closing balance for R Repella is for the period 1 July 2017 to 31 August 2017 being the period R Repella was executive KMP.  
This report has been made in accordance with a resolution of directors.  
John Shine AC  
Paul Perreault  
Chairman  
Managing Director  
Melbourne  
14 August 2018  
®
*
Registered trademark of CSL or its affiliates.  
Gardasil is a trademark of Merck & Co, Inc  
76  
CSL Limited Annual Report 2018  
Consolidated Statement of Comprehensive Income  
For the Year Ended 30 June 2018  
Consolidated Entity  
2
018  
2017  
US$m  
Notes  
US$m  
Continuing operations  
Sales revenue  
ꢂꢁꢉꢈꢂꢋꢊ  
ꢀꢀꢂꢋꢂ  
ꢉꢂꢉꢈꢄꢋꢆ  
ꢅꢀꢋꢃ  
Pandemic Facility Reservation fees  
Royalties and License revenue  
Other Income  
ꢀꢃꢃꢋꢈ  
ꢇꢃꢁꢋꢁ  
ꢅꢃꢋꢊ  
ꢁꢁꢋꢅ  
Total Operating Revenue  
Cost of sales  
ꢂꢁꢊꢀꢉꢋꢆ  
(ꢆꢁꢉꢆꢀꢋꢅ)  
ꢃꢁꢆꢈꢆꢋꢂ  
(ꢂꢇꢄꢋꢃ)  
(ꢂꢈꢅꢋꢄ)  
(ꢉꢀꢃꢋꢈ)  
ꢄꢁꢆꢈꢇꢋꢆ  
(ꢀꢇꢈꢋꢃ)  
ꢊꢋꢆ  
ꢉꢂꢅꢀꢊꢋꢃ  
(ꢁꢂꢁꢇꢅꢋꢀ)  
ꢁꢂꢉꢈꢊꢋꢉ  
(ꢉꢉꢉꢋꢅ)  
(ꢉꢅꢊꢋꢃ)  
(ꢀꢆꢀꢋꢆ)  
ꢈꢂꢊꢉꢆꢋꢅ  
(ꢅꢃꢋꢃ)  
Gross profit  
Research and development expenses  
Selling and marketing expenses  
General and administration expenses  
Operating profit  
Finance costs  
Finance income  
ꢈꢃꢋꢅ  
Profit before income tax expense  
Income tax expense  
ꢄꢁꢄꢈꢀꢋꢄ  
(ꢉꢉꢄꢋꢆ)  
ꢀꢁꢂꢄꢈꢋꢊ  
ꢈꢂꢉꢆꢅꢋꢆ  
(ꢁꢄꢇꢋꢀ)  
ꢈꢂꢁꢁꢊꢋꢀ  
Net profit for the period  
Other comprehensive income  
Items that may be reclassified subsequently to profit or loss  
Exchange differences on translation of foreign operations, net of hedges on foreign investments  
Items that will not be reclassified subsequently to profit or loss  
Actuarial gains on defined benefit plans, net of tax  
ꢈꢇ  
ꢈꢅ  
(ꢊꢅꢋꢊ)  
ꢅꢊꢋꢄ  
ꢄꢊꢋꢅ  
(ꢅꢂꢋꢆ)  
ꢊꢄꢋꢄ  
ꢈꢊꢁꢋꢃ  
Total of other comprehensive income/(loss)  
Total comprehensive income for the period  
ꢀꢁꢅꢅꢀꢋꢅ  
ꢈꢂꢄꢈꢃꢋꢀ  
Earnings per share (based on net profit for the period)  
Basic earnings per share  
USꢌ  
ꢆꢋꢈꢄꢄ  
ꢆꢋꢈꢇꢊ  
USꢌ  
ꢇꢋꢅꢁꢊ  
ꢇꢋꢅꢁꢈ  
ꢈꢃ  
ꢈꢃ  
Diluted earnings per share  
The consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.  
CSL Limited Annual Report 2018 77  
Consolidated Balance Sheet  
As at 30 June 2018  
Consolidated Entity  
2
018  
2017  
Notes  
ꢈꢀ  
US$m  
US$m  
CURRENT ASSETS  
Cash and cash equivalents  
Trade and other receivables  
Inventories  
ꢈꢀꢃꢋꢂ  
ꢀꢁꢃꢂꢈꢋꢇ  
ꢄꢁꢅꢊꢄꢋꢈ  
ꢅꢋꢅ  
ꢆꢀꢀꢋꢄ  
ꢈꢂꢈꢊꢃꢋꢀ  
ꢇꢂꢄꢊꢄꢋꢆ  
ꢉꢋꢇ  
ꢈꢄ  
Current tax assets  
Other financial assets  
Total Current Assets  
NON-CURRENT ASSETS  
Other receivables  
Other financial assets  
Property, plant and equipment  
Deferred tax assets  
Intangible assets  
ꢀꢋꢅ  
ꢃꢁꢊꢊꢆꢋꢂ  
ꢄꢋꢇ  
ꢀꢂꢉꢃꢇꢋꢈ  
ꢈꢄ  
ꢀꢉꢋꢆ  
ꢅꢋꢄ  
ꢆꢁꢉꢉꢀꢋꢃ  
ꢃꢇꢀꢋꢆ  
ꢀꢁꢈꢇꢄꢋꢉ  
ꢃꢋꢀ  
ꢉꢁꢂꢈꢇꢋꢈ  
ꢀꢇꢁꢂꢂꢃꢋꢉ  
ꢈꢉꢋꢄ  
ꢁꢋꢅ  
ꢇꢂꢅꢀꢇꢋꢊ  
ꢀꢅꢉꢋꢄ  
ꢈꢂꢃꢄꢄꢋꢀ  
ꢄꢋꢉ  
Retirement benefit assets  
Total Non-Current Assets  
TOTAL ASSETS  
ꢈꢆ  
ꢀꢂꢄꢇꢃꢋꢉ  
ꢅꢂꢈꢇꢇꢋꢊ  
CURRENT LIABILITIES  
Trade and other payables  
Interest-bearing liabilities  
Current tax liabilities  
Provisions  
Deferred government grants  
Total Current Liabilities  
NON-CURRENT LIABILITIES  
Other non-current liabilities  
Interest-bearing liabilities  
Deferred tax liabilities  
Provisions  
ꢈꢄ  
ꢈꢈ  
ꢀꢁꢄꢉꢅꢋꢈ  
ꢄꢄꢉꢋꢂ  
ꢄꢃꢈꢋꢃ  
ꢀꢈꢇꢋꢂ  
ꢆꢋꢀ  
ꢈꢂꢈꢁꢁꢋꢆ  
ꢈꢇꢇꢋꢄ  
ꢇꢃꢇꢋꢄ  
ꢈꢄꢉꢋꢈ  
ꢁꢋꢇ  
ꢈꢉ  
ꢀꢁꢊꢀꢃꢋꢂ  
ꢈꢂꢉꢈꢆꢋꢈ  
ꢈꢄ  
ꢈꢈ  
ꢈꢉ  
ꢀꢄꢅꢋꢅ  
ꢃꢁꢀꢅꢇꢋꢅ  
ꢀꢊꢆꢋꢂ  
ꢆꢃꢋꢂ  
ꢆꢂꢋꢂ  
ꢇꢄꢋꢆ  
ꢁꢂꢆꢄꢇꢋꢊ  
ꢈꢁꢆꢋꢇ  
ꢁꢇꢋꢅ  
ꢁꢄꢋꢅ  
Deferred government grants  
Retirement benefit liabilities  
Total Non-Current Liabilities  
TOTAL LIABILITIES  
ꢈꢆ  
ꢄꢄꢅꢋꢅ  
ꢇꢄꢄꢋꢁ  
ꢃꢁꢂꢂꢊꢋꢊ  
ꢅꢁꢅꢊꢃꢋꢅ  
ꢃꢁꢇꢂꢊꢋꢊ  
ꢀꢂꢁꢀꢃꢋꢆ  
ꢄꢂꢅꢄꢆꢋꢅ  
ꢁꢂꢈꢉꢁꢋꢆ  
NET ASSETS  
EQUITY  
Contributed equity  
Reserves  
Retained earnings  
TOTAL EQUITY  
ꢈꢇ  
ꢈꢇ  
ꢈꢅ  
(ꢃꢁꢅꢆꢃꢋꢉ)  
ꢄꢄꢃꢋꢄ  
ꢈꢁꢃꢊꢇꢋꢄ  
ꢃꢁꢇꢂꢊꢋꢊ  
(ꢀꢂꢄꢁꢀꢋꢁ)  
ꢇꢅꢀꢋꢇ  
ꢊꢂꢀꢃꢁꢋꢅ  
ꢁꢂꢈꢉꢁꢋꢆ  
The consolidated balance sheet should be read in conjunction with the accompanying notes.  
78  
CSL Limited Annual Report 2018  
Consolidated Statement of Changes in Equity  
For the year ended 30 June 2018  
Foreign currency  
translation reserve  
US$m  
Contributed Equity  
US$m  
Share based payment reserve  
US$m  
Retained earnings  
US$m  
Total  
US$m  
Consolidated Entity  
2018  
2017  
2018  
ꢅꢆꢇꢄꢈ  
-
2017  
ꢇꢆꢋꢄ  
-
2018  
2017  
2018  
2017  
2018  
ꢃꢁꢅꢇꢃꢄꢉ  
ꢀꢁꢂꢄꢈꢋꢊ  
2017  
ꢇꢂꢄꢉꢊꢋꢇ  
ꢈꢂꢁꢁꢊꢋꢀ  
ꢈꢊꢁꢋꢃ  
As at the beginning of the year  
Profit for the period  
(ꢀꢁꢂꢃꢀꢄꢃ)  
(ꢀꢂꢇꢈꢁꢋꢃ)  
ꢅꢇꢉꢄꢆ  
ꢈꢄꢅꢋꢀ  
ꢊꢁꢀꢈꢃꢄꢋ  
ꢀꢁꢂꢄꢈꢋꢊ  
ꢄꢊꢋꢅ  
ꢉꢂꢄꢅꢇꢋꢁ  
ꢈꢂꢁꢁꢊꢋꢀ  
ꢊꢄꢋꢄ  
-
-
-
-
-
-
-
-
Other comprehensive income  
Total comprehensive income for the full year  
(ꢊꢅꢋꢊ)  
ꢅꢊꢋꢄ  
(ꢅꢂꢋꢆ)  
ꢀꢁꢅꢅꢀꢋꢅ  
ꢈꢂꢄꢈꢃꢋꢀ  
Transactions with owners in their capacity  
as owners  
Share based payments  
Dividends  
-
-
-
-
-
-
-
-
-
-
ꢄꢅꢋꢊ  
ꢆꢋꢆ  
-
-
(ꢅꢂꢄꢋꢄ)  
-
-
(ꢉꢃꢈꢋꢁ)  
-
ꢄꢅꢋꢊ  
(ꢅꢂꢄꢋꢄ)  
(ꢀꢀꢉꢋꢊ)  
ꢆꢋꢆ  
(ꢉꢃꢈꢋꢁ)  
(ꢁꢁꢀꢋꢃ)  
-
-
Share buy back  
Share issues  
(ꢀꢀꢉꢋꢊ)  
(ꢁꢁꢀꢋꢃ)  
-
-
Employee share scheme  
ꢀꢉꢋꢂ  
ꢈꢇꢋꢊ  
-
-
-
-
-
-
ꢀꢉꢋꢂ  
ꢈꢇꢋꢊ  
As at the end of the year  
(ꢃꢁꢅꢆꢃꢋꢉ)  
(ꢀꢂꢄꢁꢀꢋꢁ)  
ꢄꢊꢋꢀ  
ꢈꢇꢉꢋꢃ  
ꢀꢊꢉꢋꢀ  
ꢈꢉꢆꢋꢇ  
ꢈꢁꢃꢊꢇꢋꢄ  
ꢊꢂꢀꢃꢁꢋꢅ  
ꢃꢁꢇꢂꢊꢋꢊ  
ꢁꢂꢈꢉꢁꢋꢆ  
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.  
CSL Limited Annual Report 2018 79  
Consolidated Statement of Cash Flows  
For the year ended 30 June 2018  
Consolidated Entity  
2
018  
2017  
US$m  
Notes  
US$m  
Cash flows from Operating Activities  
Receipts from customers (inclusive of goods and services tax)  
Payments to suppliers and employees (inclusive of goods and services tax)  
ꢈꢁꢇꢇꢆꢋꢃ  
(ꢉꢁꢉꢂꢇꢋꢃ)  
ꢄꢁꢃꢆꢆꢋꢇ  
(ꢃꢄꢃꢋꢅ)  
ꢊꢋꢇ  
ꢉꢂꢊꢀꢅꢋꢇ  
(ꢀꢂꢅꢀꢉꢋꢅ)  
ꢈꢂꢆꢃꢇꢋꢁ  
(ꢀꢉꢆꢋꢁ)  
ꢉꢋꢊ  
Income taxes paid  
Interest received  
Borrowing costs  
(ꢀꢀꢉꢋꢆ)  
ꢀꢁꢊꢇꢄꢋꢀ  
(ꢅꢀꢋꢈ)  
Net cash inflow from operating activities  
Cash flows from Investing Activities  
Payments for property, plant and equipment  
Payments for intangible assets  
ꢈꢂꢇꢀꢉꢋꢉ  
(ꢂꢂꢈꢋꢈ)  
(ꢄꢀꢆꢋꢈ)  
(ꢉꢆꢊꢋꢂ)  
(ꢀꢋꢈ)  
(ꢉꢆꢅꢋꢃ)  
(ꢈꢊꢈꢋꢄ)  
-
Payments for business acquisitions (Net of cash acquired)  
Payments for other financial assets and liabilities  
Net cash outflow from investing activities  
Cash flows from Financing Activities  
(ꢇꢋꢀ)  
(ꢀꢁꢉꢆꢃꢋꢀ)  
(ꢆꢉꢇꢋꢅ)  
Proceeds from issue of shares  
ꢀꢉꢋꢂ  
(ꢅꢂꢄꢋꢄ)  
ꢀꢁꢈꢊꢈꢋꢊ  
(ꢀꢁꢃꢂꢉꢋꢉ)  
(ꢀꢆꢈꢋꢃ)  
(ꢆꢂꢀꢋꢉ)  
(ꢆꢋꢉ)  
ꢈꢇꢋꢊ  
(ꢉꢃꢈꢋꢁ)  
ꢈꢂꢁꢆꢈꢋꢀ  
(ꢄꢆꢈꢋꢁ)  
(ꢁꢈꢀꢋꢅ)  
(ꢈꢃꢁꢋꢀ)  
ꢇꢆꢃꢋꢁ  
Dividends paid  
Proceeds from borrowings  
Repayment of borrowings  
Payment for shares bought back  
Net cash outflow from financing activities  
Net (decrease)/increase in cash and cash equivalents  
Cash and cash equivalents at the beginning of the financial year  
Exchange rate variations on foreign cash and cash equivalent balances  
Cash and cash equivalents at the end of the financial year  
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.  
ꢈꢃꢆꢋꢇ  
ꢄꢄꢄꢋꢁ  
(ꢄꢅꢋꢈ)  
ꢊꢋꢀ  
ꢈꢀ  
ꢈꢀꢄꢋꢂ  
ꢆꢀꢁꢋꢃ  
80  
CSL Limited Annual Report 2018  
Notes to the Financial Statements  
For the year ended 30 June 2018  
b. Principles of consolidation  
About this Report  
Contents  
About this Report  
The consolidated financial statements comprise the financial statements  
of CSL and its subsidiaries as at 30 June 2018. CSL has control of its  
subsidiaries when it is exposed to, and has the rights to, variable returns  
from its involvement with those entities and when it has the ability to affect  
those returns. A list of significant controlled entities (subsidiaries) at year-  
end is contained in Note 17.  
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 14 August 2018.  
ꢈꢀ  
ꢈꢀ  
Notes to the financial statementsꢎ  
Our Current Performance  
ꢈꢄ  
Note ꢈꢎ Segment Information and Business Combinations  
Note ꢇꢎ Revenue and Expenses  
Note ꢁꢎ Tax  
ꢆꢇ  
ꢆꢉ  
The financial results of the subsidiaries are prepared using consistent  
accounting policies and for the same reporting period as the parent  
company.  
ꢆꢊ  
Note ꢀꢎ Inventories  
ꢆꢅ  
Note ꢄꢎ People Costs  
ꢅꢃ  
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.  
Our Future  
ꢊꢄ  
A description of the nature of the Group’s operations and its principal  
activities is included in the directors’ report.  
Note ꢉꢎ Research & Development  
Note ꢊꢎ Intangible Assets  
ꢅꢇ  
ꢅꢇ  
a. Basis of preparation  
Note ꢆꢎ Propertyꢂ Plant and Equipment  
Note ꢅꢎ Deferred Government Grants  
Returnsꢁ Risk & Capital Management  
Note ꢈꢃꢎ Shareholder Returns  
Note ꢈꢈꢎ Financial Risk Management  
Note ꢈꢇꢎ Equity and Reserves  
Note ꢈꢁꢎ Commitments and Contingencies  
Efficiency of Operation  
ꢅꢀ  
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 hundred thousand dollars.  
c. Foreign currency  
ꢅꢄ  
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 Australian dollars.  
ꢊꢉ  
ꢅꢄ  
ꢅꢉ  
ꢈꢃꢇ  
ꢈꢃꢁ  
ꢀꢇꢃ  
ꢈꢃꢀ  
ꢈꢃꢄ  
ꢈꢃꢉ  
ꢀꢇꢂ  
ꢈꢃꢊ  
ꢈꢃꢆ  
ꢈꢈꢈ  
ꢈꢈꢇ  
ꢈꢈꢇ  
ꢈꢈꢀ  
ꢈꢈꢀ  
ꢈꢈꢄ  
ꢀꢀꢅ  
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 and loss is  
translated at average exchange rates. All resulting exchange differences  
are recognised in other comprehensive income and in the foreign currency  
translation reserve in equity.  
The report is presented in US Dollars, because this currency is the  
pharmaceutical industry standard currency for reporting purposes. It is  
the predominant currency of the Group’s worldwide sales and operating  
expenses.  
Note ꢈꢀꢎ Cash and Cash Equivalentsꢂ Cash Flows  
Note ꢈꢄꢎ Trade Receivables and Payables  
Note ꢈꢉꢎ Provisions  
Other Notes  
Note ꢈꢊꢎ Related Party Transactions  
Note ꢈꢆꢎ Detailed Information – People Costs  
Note ꢈꢅꢎ Detailed Information – Shareholder Returns  
Note ꢇꢃꢎ Auditors Remuneration  
Note ꢇꢈꢎ Deed of Cross Guarantee  
Note ꢇꢇꢎ Parent Entity Information  
Note ꢇꢁꢎ Subsequent Events  
d. Other accounting policies  
Significant accounting policies that summarise the measurement basis  
used and are relevant to an understanding of the financial statements are  
provided throughout the notes to the financial statements.  
Note ꢇꢀꢎ New and Revised Accounting Standards  
Directors’ Declaration  
CSL Limited Annual Report 2018 81  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
e. Key judgements and estimates  
The Group’s operating segments are:  
Our Current Performance  
In the process of applying the Group’s accounting policies, management  
has made a number of judgements and estimates of future events. Material  
judgements and estimates are found in the following notes:  
CSL Behring – manufactures, markets, and develops plasma therapies  
(plasma products and recombinants), conducts early stage research on  
plasma and non-plasma therapies, excluding influenza, receives licence  
and royalty income from the commercialisation of intellectual property  
and undertakes the administrative and corporate function required to  
support the Group. The entities acquired during the financial year are  
part of the CSL Behring segment.  
Note 1: Segment Information  
and Business Combinations  
The Group’s segments represent strategic business units that offer  
different products and operate in different industries and markets. They  
are consistent with the way the CEO (who is the chief operating decision-  
maker) monitors and assesses business performance in order to make  
decisions about resource allocation. Performance assessment is based  
on EBIT (earnings before interest and tax) and EBITDA (earnings before  
interest, tax, depreciation and amortisation). These measures are different  
from the profit or loss reported in the consolidated financial statements  
which is shown after net interest and tax expense. This is because decisions  
that affect net interest expense and tax expense are made at the Group  
level. It is not considered appropriate to measure segment performance at  
the net profit after tax level.  
Note 1b: Business Combination  
Note 3: Tax  
Page 85  
Page 87  
Page 89  
Page 90  
Page 92  
Page 105  
Page 106  
Note 4: Inventories  
Seqirus – manufactures and distributes non-plasma biotherapeutic  
Note 5: People Costs  
products and develops influenza related products.  
Note 7: Intangible Assets  
Note 15: Trade Receivables & Payables  
Note 16: Provisions  
f. The notes to the financial statements  
The notes to these financial statements have been organised into logical  
groupings to help users find and understand the information they need.  
Where possible, related information has been provided in the same place.  
More detailed information (for example, valuation methodologies and  
certain reconciliations) has been placed at the rear of the document and  
cross-referenced where necessary. CSL has also reviewed the notes for  
materiality and relevance and provided additional information where it is  
helpful to an understanding of the Group’s performance.  
g. Significant changes in the current reporting period  
There were no changes in accounting policy during the year ended 30 June  
2
018, nor did the introduction of new accounting standards lead to any  
change in measurement or disclosure in these financial statements. See  
Note 24 for details of new accounting standards issued but not yet effective.  
82  
CSL Limited Annual Report 2018  
CSL Behring  
018  
US$m  
ꢅꢁꢅꢂꢂꢋꢉ  
-
Seqirus  
Consolidated Entity  
2
2017  
2018  
2017  
2018  
US$m  
2017  
US$m  
US$m  
US$m  
US$m  
Sales to external customers  
ꢄꢂꢆꢁꢀꢋꢆ  
-
ꢊꢀꢇꢋꢃ  
ꢀꢀꢂꢋꢂ  
ꢄꢇꢋꢇ  
ꢊꢆꢈꢋꢃ  
ꢅꢀꢋꢃ  
ꢂꢁꢉꢈꢂꢋꢊ  
ꢉꢂꢉꢈꢄꢋꢆ  
ꢅꢀꢋꢃ  
Pandemic Facility Reservation fees  
Royalties and License revenue  
ꢀꢀꢂꢋꢂ  
ꢀꢃꢃꢋꢈ  
ꢅꢃꢋꢊ  
ꢀꢄꢃꢋꢈ  
ꢄꢃꢋꢂ  
ꢈꢆꢁꢋꢃ  
ꢄꢋꢇ  
ꢇꢃꢋꢁ  
ꢇꢃꢁꢋꢁ  
ꢁꢁꢋꢅ  
Other revenue / Other income (excl interest income)  
Total segment revenue  
ꢃꢇꢋꢄ  
ꢇꢆꢋꢊ  
ꢅꢁꢈꢄꢂꢋꢇ  
ꢉꢂꢃꢇꢁꢋꢃ  
ꢀꢁꢇꢈꢈꢋꢆ  
ꢅꢇꢀꢋꢃ  
ꢂꢁꢊꢀꢉꢋꢆ  
ꢉꢂꢅꢀꢊꢋꢃ  
Consolidated Revenue  
ꢂꢁꢊꢀꢉꢋꢆ  
ꢃꢁꢆꢈꢆꢋꢂ  
ꢉꢂꢅꢀꢊꢋꢃ  
Segment Gross Profit  
Segment Gross Profit ꢍ  
Consolidated Gross Profit  
ꢆꢁꢈꢊꢆꢋꢇ  
ꢁꢂꢁꢄꢆꢋꢁ  
ꢃꢊꢇꢋꢂ  
ꢇꢄꢅꢋꢁ  
28.1%  
ꢁꢂꢉꢈꢊꢋꢉ  
52.1%  
57.0ꢍ  
55.8%  
45.1ꢍ  
55.4ꢍ  
ꢃꢁꢆꢈꢆꢋꢂ  
ꢁꢂꢉꢈꢊꢋꢉ  
Segment EBIT  
ꢄꢁꢆꢄꢂꢋꢊ  
ꢈꢂꢅꢄꢆꢋꢁ  
ꢉꢄꢋꢃ  
(ꢈꢊꢅꢋꢀ)  
ꢄꢁꢆꢈꢇꢋꢆ  
ꢄꢁꢆꢈꢇꢋꢆ  
ꢈꢂꢊꢊꢆꢋꢅ  
ꢈꢂꢊꢊꢆꢋꢅ  
Consolidated EBIT  
Acquisition related costs  
Consolidated Operating Profit  
Interest income  
-
ꢄꢁꢆꢈꢇꢋꢆ  
ꢊꢋꢆ  
(10.0)  
ꢈꢂꢊꢉꢆꢋꢅ  
ꢈꢃꢋꢅ  
Finance costs  
(ꢀꢇꢈꢋꢃ)  
ꢄꢁꢄꢈꢀꢋꢄ  
(ꢉꢉꢄꢋꢆ)  
ꢀꢁꢂꢄꢈꢋꢊ  
(ꢅꢃꢋꢃ)  
Consolidated profit before tax  
Income tax expense  
ꢈꢂꢉꢆꢅꢋꢆ  
(ꢁꢄꢇꢋꢀ)  
ꢈꢂꢁꢁꢊꢋꢀ  
Consolidated net profit after tax  
Amortisation  
ꢃꢇꢋꢈ  
ꢄꢀꢀꢋꢅ  
ꢀꢃꢋꢈ  
ꢈꢆꢀꢋꢈ  
ꢀꢂꢋꢇ  
ꢄꢂꢋꢆ  
ꢊꢅꢋꢂ  
ꢁꢈꢋꢁ  
ꢇꢁꢋꢊ  
ꢉꢂꢋꢈ  
ꢄꢆꢈꢋꢊ  
ꢄꢁꢅꢂꢂꢋꢇ  
-
ꢊꢈꢋꢀ  
ꢇꢃꢊꢋꢆ  
Depreciation  
Segment EBITDA  
Acquisition related costs  
Consolidated EBITDA  
ꢄꢁꢉꢈꢇꢋꢆ  
ꢇꢂꢈꢆꢇꢋꢄ  
(ꢈꢇꢀꢋꢀ)  
ꢇꢂꢃꢄꢆꢋꢈ  
(ꢈꢃꢋꢃ)  
ꢄꢁꢅꢂꢂꢋꢇ  
ꢇꢂꢃꢀꢆꢋꢈ  
CSL Limited Annual Report 2018 83  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
CSL Behring  
Seqirus  
Consolidated Entity  
Consolidated Entity  
2
018  
2017  
US$m  
2018  
US$m  
2017  
US$m  
2018  
US$m  
2017  
US$m  
2018  
US$m  
2017  
US$m  
US$m  
Segment assets  
Total assets  
ꢀꢇꢁꢅꢃꢆꢋꢊ  
ꢅꢂꢈꢃꢆꢋꢀ  
ꢄꢂꢆꢀꢀꢋꢉ  
ꢀꢁꢉꢅꢂꢋꢈ  
ꢀꢁꢉꢊꢊꢋꢀ  
ꢈꢂꢀꢈꢊꢋꢊ  
ꢈꢂꢄꢈꢊꢋꢊ  
(ꢀꢁꢃꢆꢂꢋꢄ)  
(ꢈꢂꢀꢃꢁꢋꢀ)  
(ꢈꢂꢀꢃꢁꢋꢀ)  
ꢀꢇꢁꢂꢂꢃꢋꢉ  
ꢅꢂꢈꢇꢇꢋꢊ  
ꢅꢂꢈꢇꢇꢋꢊ  
ꢄꢂꢅꢄꢆꢋꢅ  
ꢄꢂꢅꢄꢆꢋꢅ  
ꢀꢇꢁꢂꢂꢃꢋꢉ  
ꢅꢁꢅꢊꢃꢋꢅ  
ꢅꢁꢅꢊꢃꢋꢅ  
Segment liabilities  
Total liabilities  
ꢅꢁꢉꢆꢄꢋꢂ  
(ꢀꢁꢃꢆꢂꢋꢄ)  
Other Information – capital expenditure excluding Business Acquisition  
Payments for property, plant and equipment  
732.0  
ꢀꢄꢃꢋꢅ  
636.9  
ꢆꢈꢋꢄ  
46.8  
ꢈꢊꢋꢄ  
52.2  
ꢅꢃꢋꢃ  
-
-
-
-
ꢂꢂꢈꢋꢈ  
ꢄꢀꢆꢋꢈ  
992.6  
ꢉꢆꢅꢋꢈ  
ꢈꢊꢈꢋꢄ  
860.6  
Payments for intangibles  
Total capital expenditures excluding Business Acquisition  
Inter-segment sales  
Inter-segment sales are carried out on an arm’s length basis and reflect current market prices.  
Geographical areas of operation  
The Group operates predominantly in Australia, the USA, Germany, the United Kingdom, Switzerland and China. The rest of the Group’s operations are spread across many countries and are collectively disclosed as ‘Rest of World’.  
Australia  
US$m  
United States  
US$m  
Germany  
US$m  
UK  
US$m  
Switzerland  
US$m  
China  
US$m  
Rest of world  
US$m  
Total  
US$m  
Geographic areas  
2018  
2017  
2018  
2017  
2018  
2017  
2018  
2017  
2018  
2017  
2018  
2017  
2018  
2017  
2018  
2017  
External Operating Revenue  
ꢅꢊꢀꢋꢉ  
ꢆꢀꢅꢋꢄ  
ꢆꢁꢉꢄꢀꢋꢈ  
ꢇꢂꢆꢅꢀꢋꢁ  
ꢈꢀꢂꢋꢂ  
ꢉꢅꢉꢋꢈ  
ꢆꢅꢄꢋꢅ  
ꢇꢆꢄꢋꢃ  
ꢄꢄꢂꢋꢃ  
ꢇꢇꢉꢋꢆ  
ꢉꢈꢊꢋꢈ  
ꢄꢃꢅꢋꢁ  
ꢀꢁꢂꢇꢃꢋꢉ  
ꢈꢂꢀꢆꢉꢋꢃ  
ꢂꢁꢊꢀꢉꢋꢆ  
ꢉꢂꢅꢀꢊꢋꢃ  
Property, plant, equipment  
and intangible assets  
ꢂꢂꢅꢋꢊ  
ꢉꢄꢊꢋꢃ  
ꢀꢁꢂꢇꢄꢋꢉ  
ꢈꢂꢀꢇꢇꢋꢃ  
ꢉꢈꢊꢋꢆ  
ꢀꢉꢄꢋꢈ  
ꢆꢄꢀꢋꢈ  
ꢇꢁꢅꢋꢁ  
ꢀꢁꢃꢈꢂꢋꢄ  
ꢈꢂꢇꢃꢇꢋꢊ  
ꢃꢅꢂꢋꢇ  
ꢃꢋꢆ  
ꢊꢋꢄ  
ꢈꢈꢋꢇ  
ꢉꢁꢆꢉꢆꢋꢊ  
ꢁꢂꢅꢅꢆꢋꢈ  
84  
CSL Limited Annual Report 2018  
The liability recognised at the date of acquisition was calculated by  
reference to management’s judgement of the expected probability and  
timing of the contingent consideration discounted to a present value using  
an appropriate discount rate. The liability was included in the non-current  
liabilities amount on the balance sheet at the date of acquisition.  
Calimmune Acquisition  
Note 1b: Business Combination  
Three business combinations occurred in the financial year ended 30 June  
On 31 August 2017 CSL acquired 100% of the equity of Calimmune Inc for an  
upfront payment of $82m and a series of contingent payments subject to  
the achievement of development milestones. Calimmune has developed a  
suite of gene therapy technologies that may prove the basis of treatments  
for rare diseases. The acquisition provides CSL with a new technology  
platform and manufacturing process.  
2
018.  
Ruide Acquisition  
The range of undiscounted contingent consideration was originally  
expected to be between $140m and $150m including interest that was  
payable on certain components of the contingent consideration.  
On 1 August 2017 CSL acquired 80% of the equity of Ruide from Humanwell.  
Ruide develops, manufactures and commercialises plasma-derived  
products for the Chinese domestic market and provides a vehicle for the  
Group to access this growing market for plasma therapeutics.  
CSL also agreed to fund certain deal related liabilities of Calimmune  
totalling $8.6m, these are not consideration for the acquisition and the  
associated liabilities are included in the fair value disclosures in this note.  
The cash flows arising from the settlement of these liabilities by Calimmune  
after CSL obtained control are disclosed in the consolidated statement of  
cash flows as cash outflows from payment for business as they are directly  
related to the transaction.  
On 20 June 2018, Humanwell and CSL renegotiated the terms and  
conditions under which the remaining consideration would be paid. The  
payment of $102m for the 20% equity initially retained by Humanwell  
was paid in June 2018 and the timing and triggers for the balance of the  
consideration of $30.6m were amended. As this was a change in the nature  
of the transaction the impact of changes in the fair value of liabilities as at  
The initial purchase price was $352 million for 80% of Ruide. There was  
additional consideration possible within the agreement, part of which  
was contingent on the registration of new products and the opening of  
new plasma centres, and part was related to a put and call option over the  
remaining 20% of Ruide. CSL exercised control over the acquired entity  
through the appointment of a majority of the board of directors and of the  
head of the business from the date of acquisition (when CSL held 80% of the  
equity interest in Ruide). As noted below the remaining 20% equity interest  
was acquired by CSL in June 2018 bringing CSL’s equity interest to 100%.  
2
0 June 2018 is recorded in the statement of comprehensive income. The  
The fair value of assets and liabilities acquired were:  
changes in the timing of payments has generated a gain of $4.1m which  
is recorded in other income in the statement of comprehensive income.  
The expected undiscounted future contingent consideration that is now  
expected to be paid is $30.6m.  
Asset Class  
US$m  
ꢃꢋꢊ  
Cash  
The fair value of assets and liabilities acquired were:  
Trade and other receivables  
Plant and equipment  
ꢃꢋꢁ  
The fair value of the originally recognised liability related to the original  
contingent consideration was reassessed at the date of the revised  
agreement and at year end. An interest charge of $5.7m has been recorded  
in the full year result, reflecting the change in fair value between the  
acquisition date and 20 June 2018 and between 20 June 2018 and 30 June  
ꢃꢋꢁ  
Asset Class  
US$m  
ꢃꢋꢇ  
#
Intellectual property  
ꢈꢄꢈꢋꢄ  
ꢁꢅꢋꢃ  
(ꢄꢋꢄ)  
(ꢄꢋꢉ)  
(ꢁꢅꢋꢃ)  
ꢀꢃꢀꢋꢂ  
ꢆꢇꢋꢃ  
Cash  
Goodwill  
Trade and other receivables  
Inventory  
ꢃꢋꢊ  
Trade creditors & accruals  
Non-current liabilities  
Deferred tax liabilities  
Fair Value of Net Assets Acquired  
Consideration paid  
ꢇꢃꢋꢊ  
ꢇꢇꢋꢆ  
ꢇꢄꢋꢆ  
ꢃꢋꢉ  
2
018.  
Buildings  
Plant & equipment  
The goodwill recognised in the business combination is largely related  
to access to the domestic Chinese plasma market. Such access is only  
available through acquisition of a local Chinese fractionator such as Ruide.  
The value of the domestic Chinese market lies in the anticipated growth in  
the utilisation of plasma products in China as the healthcare environment  
matures. Other intangible assets recognised are the plasma centre,  
manufacturing and product related licences that enable the business to  
operate.  
Deferred tax assets  
Identifiable Intangible Assets  
Other non-current assets  
Trade creditors & accruals  
Non-current liabilities  
Deferred tax liabilities  
Fair Value of Net Assets Acquired  
Goodwill arising on acquisition  
Consideration paid  
ꢇꢄꢋꢁ  
ꢈꢋꢄ  
Contingent consideration recognised  
as a liability at the date of acquisition  
#
(1.5)  
(ꢀꢋꢉ)  
(ꢄꢋꢃ)  
ꢈꢅꢋꢉ  
ꢁꢅꢄꢋꢄ  
ꢁꢄꢈꢋꢆ  
59.7  
#
The provisional accounting included in the December 2017 accounts included a value  
of contingent consideration recognised as a liability at the date of acquisition of $62.1m  
and a value of intellectual property of $153.9m.  
Since CSL obtained control of the acquired business it has contributed  
$
23.6m of sales and a $1.6m EBIT loss. The EBIT loss is principally  
attributable to integration costs incurred in the acquired entity.  
Contingent consideration recognised  
as a liability at the date of acquisition  
130.2  
CSL Limited Annual Report 2018 85  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
Upon finalisation of the purchase price accounting, the expected timing  
of the contingent payments has been changed as better information  
is available since the half year accounts provisional accounting. The  
probabilities applied to each milestone are unchanged. This has had the  
impact of reducing both the fair value of the contingent consideration  
and the value of the intangible assets by $2.4m to $59.7m and $151.5m  
respectively.  
Guangzhou Junxin Pharmaceutical Acquisition  
Note 2: Revenue and Expenses  
Recognition and measurement of revenue  
On 14 May 2018 CSL acquired 100% of the equity of Guangzhou Junxin  
Pharmaceutical Limited. The acquired entity holds a GSP (Good Supply  
Practice) licence granted by the Chinese regulator. This licence enables the  
holder to own and sell inventory in the domestic Chinese market. Prior to  
this acquisition CSL operated through distributors. In the future CSL will  
be able to participate more fully in the value chain for Albumin imported  
into China. Consideration for the transaction is payable in stages within the  
next twelve months. This entity will also sell Ruide manufactured product  
in China.  
Revenue is recognised and measured at the fair value of the consideration  
that has been or will be received. The Group recognises revenue when the  
amount of revenue can be reliably measured and it is probable that the  
future economic benefits will flow to the Group.  
The liability recognised at the date of acquisition has been calculated by  
reference management’s judgement of the expected probability and timing  
of the contingent consideration which is then discounted to a present value  
using an appropriate discount rate. The liability is included in the non-  
current liabilities amount on the balance sheet.  
Further information about each source of revenue and the criteria for  
recognition follows.  
Sales: Revenue earned (net of returns, discounts and allowances) from  
the sale of products. Sales are recognised when the significant risks and  
rewards of ownership of the goods have passed to the buyer.  
CSL did not acquire any of the assets and liabilities of the entity, the  
economic interest in these was retained by the vendor. As a consequence,  
the entire consideration payable has been recognised as the GSP licence, an  
intangible asset.  
The range of undiscounted contingent consideration is expected to be  
between $50m and $325m depending on the progress of the research and  
development program.  
Royalties: Income received or receivable from licensees of CSL intellectual  
property. Where the amount payable is based on sales of product, it is  
recognised as it accrues which is when the Group has a legally enforceable  
claim.  
At balance date, the fair value of the liability related to the contingent  
consideration has been increased in relation to interest charge of $1.6m to  
reflect the passage of time.  
Asset Class  
US$m  
Intangible assets – GSP licence  
Fair Value of Net Assets Acquired  
Consideration paid  
ꢃꢋꢉ  
ꢇꢋꢅ  
-
Finance revenue: Income from cash deposits is recognised as it accrues.  
Licence revenue: Milestone income received or receivable from licensees of  
CSL intellectual property is recognised as it accrues.  
The goodwill recognised is a consequence of the recognition of deferred tax  
liabilities in respect of indefinite lived intangible assets in accordance with  
accounting standards.  
Contingent consideration recognised as a liability at  
the date of acquisition  
0.6  
Pandemic facility reservation fees: Income received from governments  
in return for access to influenza manufacturing facilities in the event of a  
pandemic. Contracts are time based and revenue is accrued progressively  
over the life of the relevant contract.  
Since CSL obtained control of the acquired business it has contributed $0m  
of sales and $12.0m EBIT loss as a result of the ongoing research activity.  
As at 30 June 2018 none of the consideration payable has been paid to  
the vendor, the full value is therefore recorded as a current liability on the  
balance sheet.  
Other: Rent, proceeds from sale of fixed assets, government grants and  
other income is recognised as it accrues.  
Since CSL obtained control of the acquired business it has contributed $0m  
in sales and EBIT.  
2018  
US$m  
2017  
US$m  
Expenses  
Finance costs  
ꢀꢇꢈꢋꢃ  
ꢄꢆꢈꢋꢊ  
ꢉꢂꢋꢈ  
ꢅꢃꢋꢃ  
ꢇꢃꢊꢋꢆ  
ꢊꢈꢋꢀ  
Depreciation and amortisation of fixed assets  
Amortisation of intangibles  
Total depreciation and amortisation expense  
Write-down of inventory to net realisable value  
Rental expenses relating to operating leases  
Employee benefits expense  
ꢄꢊꢅꢋꢂ  
ꢀꢂꢃꢋꢅ  
ꢅꢊꢋꢆ  
ꢇꢊꢅꢋꢇ  
ꢈꢆꢅꢋꢆ  
ꢄꢊꢋꢄ  
ꢀꢁꢊꢃꢄꢋꢊ  
(ꢀꢅꢋꢃ)  
ꢈꢂꢉꢈꢆꢋꢁ  
ꢉꢀꢋꢁ  
Net foreign exchange (gain)/loss  
86  
CSL Limited Annual Report 2018  
Recognition and measurement of expenses  
Note 3: Tax  
Finance costs: Includes interest expense and borrowing costs. These are  
recognised as an expense when incurred, except where finance costs are  
directly attributable to the acquisition or construction of a qualifying asset  
where they are capitalised as part of the cost of the asset. Capitalised  
interest for qualifying assets during the year ended 30 June 2018 was  
2018  
US$m  
2017  
US$m  
a. Income tax expense recognised in the statement of comprehensive income  
Current tax expense  
$
12.7m (2017: nil). Interest-bearing liabilities and borrowings are stated at  
Current year  
ꢃꢈꢃꢋꢆ  
ꢀꢄꢀꢋꢅ  
amortised cost. Any difference between the borrowing proceeds (net of  
transaction costs) and the redemption value is recognised in the statement  
of comprehensive income over the borrowing period using the effective  
interest method.  
Deferred tax expense/(recovery)  
Origination and reversal of temporary differences  
Total deferred tax expense/(recovery)  
Over/(under) provided in prior years  
Income tax expense  
ꢂꢇꢋꢀ  
ꢂꢇꢋꢀ  
(ꢈꢈꢃꢋꢊ)  
(ꢈꢈꢃꢋꢊ)  
ꢆꢋꢇ  
(ꢄꢋꢀ)  
ꢉꢉꢄꢋꢆ  
Depreciation and amortisation: Refer to Note 8 for details on depreciation  
and amortisation of fixed assets and Note 7 for details on amortisation of  
intangibles.  
ꢁꢄꢇꢋꢀ  
Write-down of inventory to net realisable value: Included in Cost of Sales  
in the Statement of Comprehensive Income. Refer to Note 4 for details of  
inventories.  
b. Reconciliation between tax expense and pre-tax net profit  
The reconciliation between tax expense and the product of accounting profit  
before income tax multiplied by the Group’s applicable income tax rate is as follows:  
Employee benefits expense: Refer to Note 5 for further details.  
Accounting profit before income tax  
Income tax calculated at 30% (2017: 30%)  
Effects of different rates of tax on overseas income  
Research and development  
ꢄꢁꢄꢈꢀꢋꢄ  
ꢅꢈꢃꢋꢃ  
(ꢀꢃꢆꢋꢆ)  
(ꢀꢄꢋꢂ)  
(ꢄꢋꢀ)  
ꢈꢂꢉꢆꢅꢋꢆ  
ꢄꢃꢊꢋꢃ  
(ꢈꢄꢊꢋꢉ)  
(ꢈꢁꢋꢁ)  
ꢆꢋꢇ  
Rental expenses relating to operating leases: Operating leases are leases  
in which a significant portion of the risks and rewards of ownership are  
not transferred to the Group. Payments made under operating leases are  
charged to the statement of comprehensive income on a straight-line basis  
over the period of the lease.  
Over/(under) provision in prior year  
Other non-deductible expenses  
Income tax expense  
Goods and Services Tax and other foreign equivalents (GST)  
ꢄꢅꢋꢇ  
ꢆꢋꢈ  
Revenues, expenses and assets are recognised net of GST, except where  
GST is not recoverable from a taxation authority, in which case it is  
recognised as part of an asset’s cost of acquisition or as part of the expense.  
ꢉꢉꢄꢋꢆ  
ꢁꢄꢇꢋꢀ  
c. Income tax recognised directly in equity  
Deferred tax benefit/(expense)  
Share-based payments  
(ꢆꢋꢄ)  
(ꢆꢋꢄ)  
ꢁꢋꢊ  
ꢁꢋꢊ  
Income tax benefit/(expense) recognised in equity  
CSL Limited Annual Report 2018 87  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
US tax reform came into effect for the Group in the financial year ended 30  
June 2018. The Group was impacted by the lower tax and by the need to  
restate deferred balances to the new rate at which these are expected to be  
realised. The impact of these items is included in the full year financials and  
are immaterial to the Group.  
2
018  
2017  
US$m  
US$m  
d. Deferred tax assets and liabilities  
Deferred tax asset  
ꢃꢇꢀꢋꢆ  
(ꢀꢊꢆꢋꢂ)  
ꢄꢇꢂꢋꢅ  
ꢀꢅꢉꢋꢄ  
(ꢈꢁꢆꢋꢇ)  
ꢁꢄꢆꢋꢁ  
Deferred tax liability  
Current taxes  
Net deferred tax asset  
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 tax balances reflect temporary differences attributable to:  
Amounts recognised in the statement of comprehensive income  
Inventories  
ꢀꢃꢅꢋꢇ  
(ꢀꢄꢇꢋꢉ)  
(ꢀꢄꢃꢋꢇ)  
ꢆꢆꢋꢅ  
ꢈꢆꢅꢋꢉ  
(ꢈꢈꢇꢋꢆ)  
(ꢈꢈꢉꢋꢇ)  
ꢁꢇꢋꢁ  
Property, plant and equipment  
Intangible assets  
Deferred taxes  
Trade and other payables  
Deferred tax liabilities are recognised for taxable temporary differences.  
Deferred tax assets are recognised for deductible temporary differences,  
carried forward unused tax assets and unused tax losses, only if it is  
probable that taxable profit will be available to utilise them.  
a
Recognised carry forward tax losses  
Retirement liabilities, net  
Trade and other receivables  
Other assets  
ꢀꢂꢈꢋꢆ  
ꢆꢂꢋꢂ  
ꢇꢇꢉꢋꢆ  
ꢀꢇꢋꢈ  
ꢆꢋꢇ  
ꢇꢋꢃ  
The carrying amount of deferred income tax assets is reviewed at the  
reporting date. If it is no longer probable that taxable profit will be available  
to utilise them, they are reduced accordingly.  
ꢅꢋꢃ  
ꢈꢇꢋꢇ  
Interest bearing liabilities  
Other liabilities and provisions  
ꢉꢋꢅ  
(ꢈꢋꢃ)  
ꢉꢁꢋꢆ  
ꢅꢀꢋꢊ  
Deferred tax is measured using tax rates and laws that are enacted at the  
reporting date and are expected to apply when the related deferred income  
tax asset is realised or when the deferred income tax liability is settled.  
Tax bases not in net assets – share-based payments  
Total recognised in the statement of comprehensive income  
Amounts recognised in equity  
ꢀꢋꢈ  
ꢃꢋꢄ  
ꢄꢄꢊꢋꢈ  
ꢁꢁꢅꢋꢁ  
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.  
Share-based payments  
ꢄꢀꢋꢈ  
ꢈꢅꢋꢃ  
Net deferred tax asset  
ꢄꢉꢀꢋꢅ  
ꢁꢄꢆꢋꢁ  
e. Movement in temporary differences during the year  
Opening balance  
Income taxes attributable to amounts recognised in other comprehensive  
income or directly in equity are also recognised in other comprehensive  
income or in equity, and not in the income statement.  
ꢆꢉꢈꢋꢆ  
(ꢀꢇꢇꢋꢀ)  
(ꢅꢋꢊ)  
ꢇꢉꢅꢋꢆ  
ꢈꢃꢃꢋꢉ  
(ꢈꢀꢋꢇ)  
-
Credited/(charged) to profit before tax  
Charged to other comprehensive income  
Net deferred tax asset/(liability) recognized in business combination  
Credited/(charged) to equity  
CSL Limited and its 100% owned Australian subsidiaries have formed a tax  
consolidated group effective from 1 July 2003.  
(ꢃꢃꢋꢇ)  
(ꢆꢋꢄ)  
ꢁꢋꢊ  
Currency translation difference  
ꢆꢋꢉ  
(ꢈꢋꢉ)  
ꢁꢄꢆꢋꢁ  
a
Deferred tax assets in respect of carry forward tax losses are principally recorded in  
CSL entities in Switzerland and the UK (prior year: Switzerland and the UK) and are  
recognised as it is probable that future taxable profit will be available in those entities  
to utilise the losses.  
Closing balance  
ꢄꢇꢂꢋꢅ  
Unrecognised deferred tax assets  
b
Deferred tax assets have not been recognised for the following items:  
Tax losses with no expiry dateb  
Deferred tax assets have not been recognised in respect of these items because it is  
not probable that future taxable profit will be available for utilisation in the entities  
that have recorded these losses.  
ꢇꢋꢃ  
ꢃꢋꢀ  
88  
CSL Limited Annual Report 2018  
Finished Products  
Note 4: Inventories  
Key Judgements and Estimates -  
Tax  
Finished products comprise material that is ready for sale and has passed all  
quality control tests.  
2
018  
2017  
US$m  
US$m  
Raw materials  
ꢂꢀꢈꢋꢊ  
ꢉꢁꢈꢋꢀ  
ꢅꢅꢄꢋꢇ  
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. At this stage the relevant expiry date is  
that applicable to the resultant intermediate or finished product.  
Management regularly assesses the risk of uncertain tax  
positions, and recognition and recoverability of deferred  
tax assets. To do this requires judgements about the  
application of income tax legislation in jurisdictions in  
which the Group operates and the future operating  
performance of entities with carry forward losses. These  
judgements and assumptions, which include matters such  
as the availability and timing of tax deductions and the  
application of the arm’s length principle to related party  
transactions, are subject to risk and uncertainty. Changes  
in circumstances may alter expectations and affect the  
carrying amount of deferred tax assets and liabilities. Any  
resulting adjustment to the carrying value of a deferred  
tax item will be recorded as a credit or charge to the  
statement of comprehensive income.  
Work in progress  
Finished products  
Total inventories  
ꢀꢁꢀꢅꢉꢋꢈ  
ꢈꢇꢈꢋꢀ  
ꢅꢀꢅꢋꢇ  
ꢄꢁꢅꢊꢄꢋꢈ  
ꢇꢂꢄꢊꢄꢋꢆ  
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.  
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.  
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.  
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.  
Key judgements and estimates -  
Inventory  
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.  
CSL Limited Annual Report 2018 89  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
Salaries and wages  
Present value is based on expected future payments to the reporting date,  
calculated by independent actuaries using the projected unit credit method.  
Past service costs are recognised in income on the earlier of the date of  
plan amendments or curtailment, and the date that the Group recognises  
restructuring related costs.  
Note 5: People Costs  
a. Employee benefits  
Wages and salaries include non-monetary benefits, annual leave and long  
service leave. These are recognised and presented in different ways in the  
financial statements:  
Employee benefits include salaries and wages, annual leave and long-  
service leave, defined benefit and defined contribution plans and share-  
based payments incentive awards.  
The liability for annual leave and the portion of long service leave  
expected to be paid within twelve months is measured at the amount  
expected to be paid.  
Detailed information about the Group’s defined benefit plans is in Note 18.  
Defined contribution plans  
PEOPLE COSTS 2018 – $1,942.8m  
The liability for long service leave and annual leave expected to be paid  
after one year is measured as the present value of expected future  
payments to be made in respect of services provided by employees up  
to the reporting date.  
The 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 2018 was  
$40.0m (2017: $33.6m).  
$
30.1m  
$35.1m  
$
40.0m  
$
29.9m  
$1,807.7m  
The liability for annual leave and the portion of long service leave that  
has vested at the reporting date is included in the current provision for  
employee benefits.  
Equity settled share-based payments expense  
Share-based payments expenses arise from plans that award long-term  
incentives.  
The portion of long service leave that has not vested at the reporting  
date is included in the non-current provision for employee benefits.  
Detailed information about the terms and conditions of the share-based  
payments arrangements is presented in Note 18.  
Defined benefit plans  
2
018  
2017  
US$m  
PEOPLE COSTS 2017 – $1,618.3m  
US$m  
Key judgements and estimates -  
People Costs  
$
12.2m  
33.6m  
34.2m  
$32.9m  
Expenses/(gains) recognised in the  
statement of comprehensive income  
are as follows:  
$
$
$1,505.4m  
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.  
Current service costs  
ꢆꢄꢋꢆ  
ꢆꢋꢀ  
ꢁꢇꢋꢃ  
ꢇꢋꢇ  
-
Net interest cost  
Past service costs  
(ꢉꢋꢉ)  
ꢄꢊꢋꢊ  
Total included in employee benefits expense  
ꢁꢀꢋꢇ  
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.  
Salaries and wages  
Defined benefit plan expense  
Defined contribution plan expense  
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.  
Equity settled share-based payments expense (LTI)  
Cash settled share-based payments expense (EDIP)  
90  
CSL Limited Annual Report 2018  
Outstanding share-based payment equity instruments  
The number and weighted average exercise price for each share-based payment scheme outstanding is as follows. All schemes are settled by physical delivery of shares except for instruments granted to good leavers from 2012 onwards,  
which may be settled in cash at the discretion of the company.  
Executive Performance and  
Alignment Plan (EPA)  
Global Employee Share Plan  
(GESP)#  
Options  
Performance Rights  
Retain and Grow Plan (RGP)  
Weighted  
average  
Weighted  
Weighted  
Weighted  
Weighted  
average  
average  
average  
average  
Number  
ꢅꢃꢉꢂꢊꢉꢉ  
-
exercise price  
Aꢌꢅꢃꢋꢈꢃ  
A$0.00  
Aꢌꢇꢅꢋꢁꢀ  
-
Number  
ꢆꢀꢆꢂꢄꢅꢅ  
-
exercise price  
Number  
exercise price  
Number  
exercise price  
Number  
ꢆꢁꢂꢄꢁꢃ  
ꢇꢃꢁꢂꢀꢇꢄ  
ꢈꢆꢇꢂꢄꢈꢆ  
-
exercise price  
Total  
ꢈꢂꢆꢁꢆꢂꢆꢅꢄ  
ꢊꢁꢊꢂꢀꢄꢄ  
ꢇꢊꢄꢂꢀꢄꢄ  
ꢇꢂꢀꢈꢇ  
Outstanding at the beginning of the year  
Granted during the year  
Aꢌꢃꢋꢃꢃ  
A$0.00  
Aꢌꢃꢋꢃꢃ  
A$0.00  
Aꢌꢃꢋꢃꢃ  
-
-
Aꢌꢃꢋꢃꢃ  
A$0.00  
Aꢌꢃꢋꢃꢃ  
A$0.00  
Aꢌꢃꢋꢃꢃ  
-
-
Aꢌꢃꢋꢃꢃ  
Aꢌꢃꢋꢃꢃ  
Aꢌꢃꢋꢃꢃ  
Aꢌꢃꢋꢃꢃ  
Aꢌꢃꢋꢃꢃ  
-
Aꢌꢈꢃꢃꢋꢀꢃ  
324,104  
ꢇꢃꢅꢂꢅꢇꢉ  
Aꢌꢈꢇꢇꢋꢆꢇ  
Exercised during the year  
ꢇꢀꢂꢄꢀꢃ  
-
ꢉꢊꢂꢊꢈꢀ  
2,412  
ꢉꢆꢁ  
-
Aꢌꢈꢃꢄꢋꢀꢊ  
Cash settled during the year  
Forfeited during the year  
-
-
-
ꢄꢅꢂꢉꢁꢆ  
-
Aꢌꢅꢊꢋꢉꢅ  
-
ꢅꢁꢂꢄꢁꢇ  
-
ꢈꢉꢂꢆꢃꢈ  
ꢁꢂꢈꢁꢁ  
-
-
Aꢌꢈꢃꢃꢋꢀꢃ  
Aꢌꢈꢁꢊꢋꢇꢈ  
-
ꢈꢊꢁꢂꢈꢃꢀ  
(ꢀꢂꢅꢊꢆ)  
#
GESP True-up  
-
ꢁꢃꢉꢂꢉꢇꢃ  
-
-
ꢇꢃꢉꢂꢊꢅꢁ  
-
(ꢀꢂꢅꢊꢆ)  
ꢅꢅꢂꢀꢄꢅ  
-
Closing balance at the end of the year  
Exercisable at the end of the year  
ꢆꢇꢇꢂꢄꢆꢆ  
8,530  
Aꢌꢅꢈꢋꢁꢉ  
A$29.34  
ꢉꢆꢀꢂꢅꢀꢈ  
58,492  
Aꢌꢃꢋꢃꢃ  
A$0.00  
Aꢌꢃꢋꢃꢃ  
A$0.00  
Aꢌꢃꢋꢃꢃ  
Aꢌꢃꢋꢃꢃ  
ꢇꢂꢈꢇꢃꢂꢀꢃꢈ  
ꢉꢊꢂꢃꢇꢇ  
#
The exercise price at which GESP plan shares are issued is calculated at a 15% discount to the lower of the ASX market price on the first and last dates of the contribution period. Accordingly the exercise price and the final number of shares to be issued is not yet known (and  
may differ from the assumptions and fair values disclosed above). The number of shares which may ultimately be issued from entitlements granted on 1 March 2018 has been estimated based on information available as at 30 June 2018.  
The share price at the dates of exercise (expressed as a weighted average)  
by equity instrument type, is as follows:  
2017: 3,922 and April 2017: 3,243). The notional shares will generate a  
cash payment to participants on a prorated vesting period over a two  
year period, provided they are still employed by the company and receive  
a satisfactory performance review over that period. The amount of the  
cash payment will be determined by reference to the CSL share price  
immediately before the award maturity date.  
b. Key management personnel disclosures  
The remuneration of key management personnel is disclosed in section 17 of  
the Directors’ Report and has been audited.  
2
018  
2017  
Aꢌꢈꢈꢁꢋꢇꢊ  
Aꢌꢈꢃꢆꢋꢊꢁ  
-
Options  
Aꢌꢀꢅꢄꢋꢅꢇ  
Aꢌꢀꢆꢂꢋꢊꢊ  
Aꢌꢀꢅꢀꢋꢉꢆ  
Aꢌꢀꢉꢇꢋꢇꢄ  
Total compensation for key management personnel  
Performance Rights  
2
018  
2017  
US$  
The October 2014 EDIP grant vested during the period ended 30 June 2018  
and an amount of $24.9m was paid to employees (2017: $26.2m). A portion  
of the March 2016 EDIP grant vested during the period ending 30 June 2018  
and an amount of $1.2m was paid to employees. The carrying amount of the  
liability at 30 June 2018 attributable to the 2015 and 2016 grants is $57.0m  
RGP  
US$  
GESP  
Aꢌꢈꢈꢁꢋꢈꢇ  
Total of short term remuneration elements ꢀꢈꢁꢈꢂꢉꢁꢀꢈꢀ ꢈꢉꢂꢆꢀꢆꢂꢅꢁꢀ  
Total of post-employment elements  
Total of other long term elements  
Total of share-based payments  
Total of all remuneration elements  
ꢆꢇꢃꢁꢈꢀꢆ  
ꢀꢁꢀꢂꢅꢁꢅꢂꢄ  
ꢀꢆꢁꢆꢄꢉꢁꢀꢀꢅ  
ꢁꢈꢆꢂꢊꢊꢀ  
ꢈꢂꢀꢊꢇꢂꢃꢀꢇ  
ꢆꢂꢈꢇꢈꢂꢇꢅꢁ  
Cash-settled share-based payments expense  
(
2017: $50.0m) measured at fair value. Fair value is determined by reference  
On 1 July 2017 and 1 October 2017, 6,673 and 1,509 notional shares  
respectively were granted to employees under the Executive Deferred  
Incentive Plan (EDIP) (July 2016: 2,568, October 2016: 281,715, January  
to the CSL share price at reporting date, adjusted for expected future  
dividends that will be paid between reporting date and vesting date.  
ꢆꢆꢁꢅꢈꢀꢁꢂꢈꢄ ꢇꢉꢂꢊꢉꢈꢂꢃꢀꢁ  
CSL Limited Annual Report 2018  
91  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
Our Future  
Note 6: Research & 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 these 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. At the point of approval the total cost of development has largely been incurred.  
#
For the year ended 30 June 2018, the research costs, net of recoveries, were $702.4m (2017: $666.9m ). Further information about the Group’s research and  
development activities can be found on the CSL website.  
In the prior financial year research and development expense included $50.0m related to a licensing arrangement with Momenta. The Momenta transaction  
gave CSL rights to certain intellectual property, which was in an early stage and does not yet give rise to a demonstrated recoverable amount. If the  
intellectual property were to have a demonstrated recoverable amount in the future, then the charge would be reversed and the amount recognized as an  
intangible asset.  
Note 7: Intangible Assets  
Goodwill  
US$m  
Intellectual property  
US$m  
Software  
US$m  
Intangible capital work in progress  
US$m  
Total  
US$m  
Year  
2018  
2017  
ꢉꢆꢆꢋꢁ  
-
2018  
2017  
2018  
2017  
ꢇꢈꢀꢋꢈ  
(121.3)  
ꢅꢇꢋꢆ  
2018  
ꢀꢂꢊꢋꢈ  
-
2017  
ꢈꢊꢃꢋꢉ  
-
2018  
ꢄꢁꢄꢅꢄꢋꢊ  
(ꢃꢅꢇꢋꢃ)  
ꢀꢁꢈꢇꢄꢋꢉ  
2017  
ꢈꢂꢀꢉꢄꢋꢅ  
(ꢀꢈꢃꢋꢄ)  
ꢈꢂꢃꢄꢄꢋꢀ  
Cost  
ꢀꢁꢀꢇꢄꢋꢇ  
-
ꢉꢅꢄꢋꢆ  
(299.4)  
ꢄꢅꢄꢋꢊ  
ꢁꢅꢇꢋꢅ  
(289.2)  
ꢈꢃꢁꢋꢊ  
ꢃꢀꢈꢋꢈ  
(161.0)  
ꢄꢉꢂꢋꢈ  
Accumulated amortisation  
Net carrying amount  
ꢀꢁꢀꢇꢄꢋꢇ  
ꢉꢆꢆꢋꢁ  
ꢀꢂꢊꢋꢈ  
ꢈꢊꢃꢋꢉ  
Movement  
Net carrying amount at the beginning of the year  
ꢅꢈꢈꢋꢆ  
ꢉꢊꢀꢋꢁ  
ꢀꢇꢆꢋꢂ  
2.1  
ꢈꢁꢊꢋꢁ  
ꢊꢄꢋꢈ  
0.7  
ꢆꢃꢋꢃ  
2.6  
ꢀꢂꢇꢋꢅ  
ꢄꢈꢋꢃ  
ꢈꢉꢇꢋꢇ  
-
ꢀꢁꢇꢉꢉꢋꢃ  
ꢄꢄꢇꢋꢊ  
ꢅꢇꢈꢋꢊ  
-
ꢅꢀꢇꢋꢉ  
ꢈꢊꢃꢋꢃ  
-
1
Additions  
-
-
5.2  
ꢄꢀꢈꢋꢀ  
Business acquisition  
ꢃꢆꢃꢋꢉ  
-
ꢀꢂꢃꢋꢃ  
-
-
-
-
-
(ꢄꢀꢇꢋꢄ)  
ꢇꢋꢅ  
Transfers from intangible capital work in progress  
Transfers to/from property, plant and equipment  
Disposals  
-
-
0.5  
210.2  
-
43.1  
-
(ꢀꢁꢋꢉ)  
(ꢃꢋꢀ)  
(ꢃꢋꢈ)  
-
-
-
-
-
-
-
-
ꢇꢋꢅ  
(ꢃꢋꢀ)  
(ꢈꢋꢊ)  
(ꢊꢈꢋꢀ)  
ꢈꢉꢋꢁ  
ꢈꢂꢃꢄꢄꢋꢀ  
-
-
-
(0.8)  
(ꢃꢆꢋꢄ)  
(1.9)  
ꢄꢉꢂꢋꢈ  
(1.6)  
(ꢁꢇꢋꢈ)  
0.8  
-
(ꢇꢋꢈ)  
(ꢉꢂꢋꢈ)  
(ꢄꢃꢋꢂ)  
ꢀꢁꢈꢇꢄꢋꢉ  
2
Amortisation for the year  
-
(ꢀꢃꢋꢅ)  
(2.7)  
ꢄꢅꢄꢋꢊ  
(ꢁꢅꢋꢁ)  
-
-
Currency translation differences  
(20.8)  
ꢀꢁꢀꢇꢄꢋꢇ  
14.0  
ꢉꢆꢆꢋꢁ  
ꢇꢋꢂ  
ꢈꢋꢄ  
Net carrying amount at the end of the year  
ꢈꢃꢁꢋꢊ  
ꢅꢇꢋꢆ  
ꢀꢂꢊꢋꢈ  
ꢈꢊꢃꢋꢉ  
1
The 2017 intangible capital work in progress additions relate to two significant information technology projects.  
The amortisation charge is recognised in general and administration expenses in the statement of comprehensive income.  
This number has been corrected from that published on 15 August 2018  
2
#
92  
CSL Limited Annual Report 2018  
Goodwill  
Software  
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.  
Any excess of the fair value of the purchase consideration of an acquired  
business over the fair value of the identifiable net assets (minus incidental  
expenses) is recorded as goodwill.  
Costs incurred in developing or acquiring software, licences or systems  
that will contribute future financial benefits are capitalised. These include  
external direct costs of materials and service and direct payroll and payroll  
related costs of employees’ time spent on the project. Amortisation is  
calculated on a straight line basis over periods generally ranging from 3 to  
Goodwill is allocated to each of the cash-generating units but is monitored  
at the segment (business unit) level. The aggregate carrying amounts of  
goodwill allocated to each business unit are as follows:  
1
0 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. The Group is undertaking two major software programs, these will be  
capitalized as they are brought into use and amortised over their estimated  
useful life of ten years.  
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.  
2
018  
2017  
US$m  
ꢀꢁꢀꢇꢄꢋꢇ  
ꢀꢁꢀꢇꢄꢋꢇ  
US$m  
CSL Behring  
ꢉꢆꢆꢋꢁ  
ꢉꢆꢆꢋꢁ  
Closing balance of goodwill as at 30 June  
Recognition and measurement  
Key judgements and estimates  
The useful lives of intangible assets are assessed to be either finite or  
indefinite.  
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 impairment assessment process requires  
management to make significant judgements.  
Intangible assets with finite lives are amortised over the useful life of the  
asset. Significant software intangible assets are amortised over a ten year  
useful life. The amortisation period and method is reviewed at each financial  
year end at a minimum.  
The results of the impairment test show that each business unit’s  
recoverable amount exceeds the carrying value of its net assets, inclusive of  
goodwill. Consequently, there is no goodwill impairment as at 30 June 2018.  
Determining whether goodwill has been impaired  
requires an estimation of the recoverable amount of  
the cash generating units using a discounted cash flow  
methodology. This calculation uses cash flow projections  
based on operating budgets and a three-year strategic  
business plan, after which a terminal value, based on  
management’s view of the longer term growth profile of  
the business is applied. Cash flows have been discounted  
using an implied pre-tax discount rate of 9.9% (2017:  
Intangible assets with indefinite useful lives are not amortised. The useful  
life of these intangibles is reviewed each reporting period to determine  
whether indefinite life assessment continues to be supportable.  
A change in assumptions significant enough to lead to impairment is not  
considered a reasonable possibility.  
Intellectual property  
Impairment of intangible assets  
Intellectual property acquired separately or in a business combination is  
initially measured at cost, which is its fair value at the date of acquisition.  
Following initial recognition, it is carried at cost less any amortisation and  
impairment.  
Assets with finite lives are subject to amortisation and 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) are  
not subject to amortisation and are tested annually for impairment or more  
frequently if events or changes in circumstances indicate that they may be  
impaired.  
1
0.1%) which is calculated with reference to external  
The useful life of intellectual property generally ranges from 5 – 20  
years. Certain intellectual property acquired in a business combination is  
considered to have an indefinite life.  
analyst views, long-term government bond rates and  
the company’s pre-tax cost of debt. The determination  
of cash flows over the life of an asset requires judgement  
in assessing the future demand for the Group’s products,  
any changes in the price and cost of those products and of  
other costs incurred by the Group.  
The decrease in the amortisation charge in the year ended 30 June 2018  
reflects reassessments of useful life of intellectual property in the prior year.  
CSL Limited Annual Report 2018 93  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
Note 8: Property, Plant and Equipment  
Leased property, plant  
and equipment  
US$m  
Land  
US$m  
Buildings  
US$m  
Leasehold improvements  
US$m  
Plant and equipment  
US$m  
Capital work in progress  
US$m  
Total  
US$m  
2
018  
2017  
ꢁꢊꢋꢇ  
-
2018  
2017  
ꢄꢁꢄꢋꢃ  
(155.7)  
ꢁꢊꢅꢋꢁ  
2018  
ꢆꢄꢅꢋꢅ  
(95.7)  
ꢄꢆꢇꢋꢊ  
2017  
2018  
2017  
2018  
ꢆꢉꢋꢇ  
2017  
ꢁꢄꢋꢀ  
2018  
ꢀꢁꢆꢃꢇꢋꢉ  
-
2017  
ꢈꢂꢃꢆꢃꢋꢃ  
-
2018  
2017  
Cost  
ꢆꢊꢋꢈ  
-
ꢅꢅꢉꢋꢄ  
(175.3)  
ꢃꢈꢊꢋꢊ  
ꢇꢊꢄꢋꢅ  
ꢄꢁꢊꢇꢊꢋꢆ  
ꢇꢂꢄꢉꢈꢋꢄ  
ꢉꢁꢆꢀꢅꢋꢃ  
ꢀꢂꢄꢇꢄꢋꢃ  
Accumulated depreciation / amortisation  
(75.5) (ꢀꢁꢃꢂꢄꢋꢉ) (ꢈꢂꢁꢁꢈꢋꢀ)  
(ꢄꢀꢋꢉ)  
ꢀꢆꢋꢉ  
(ꢈꢅꢋꢊ)  
ꢈꢄꢋꢊ  
(ꢀꢁꢂꢅꢉꢋꢇ) (ꢈꢂꢄꢆꢇꢋꢁ)  
Net carrying amount  
ꢆꢊꢋꢈ  
ꢁꢊꢋꢇ  
ꢇꢃꢃꢋꢀ  
ꢀꢁꢃꢆꢅꢋꢈ  
ꢈꢂꢇꢁꢃꢋꢈ  
ꢀꢁꢆꢃꢇꢋꢉ  
ꢈꢂꢃꢆꢃꢋꢃ  
ꢆꢁꢉꢉꢀꢋꢃ  
ꢇꢂꢅꢀꢇꢋꢊ  
Movement  
Net carrying amount at the start of the year  
Transferred from capital work in progress  
Business Acquisition  
ꢆꢂꢋꢄ  
ꢇꢉꢋꢀ  
ꢆꢂꢊꢋꢆ  
116.5  
ꢄꢄꢋꢈ  
0.3  
ꢁꢊꢈꢋꢇ  
20.7  
-
ꢄꢇꢇꢋꢃ  
42.9  
-
ꢈꢉꢀꢋꢇ  
50.1  
-
ꢀꢁꢄꢆꢇꢋꢀ  
ꢆꢂꢀꢋꢊ  
ꢄꢅꢋꢀ  
ꢈꢂꢈꢅꢈꢋꢇ  
ꢈꢁꢄꢋꢅ  
-
ꢀꢉꢋꢂ  
-
ꢈꢄꢋꢀ  
-
ꢀꢁꢇꢈꢇꢋꢇ  
(ꢉꢆꢀꢋꢆ)  
-
ꢉꢇꢈꢋꢇ  
ꢄꢁꢊꢃꢄꢋꢂ  
-
ꢇꢂꢁꢆꢅꢋꢉ  
-
-
-
-
(ꢇꢃꢉꢋꢊ)  
-
10.0  
-
-
-
-
ꢃꢈꢋꢊ  
-
3
Other Additions  
3.4  
-
0.3  
11.3  
3.4  
ꢀꢈꢋꢀ  
ꢄꢄꢋꢆ  
ꢀꢋꢅ  
(ꢄꢋꢅ)  
-
ꢀꢋꢃ  
(ꢇꢋꢆ)  
-
ꢈꢇꢂꢋꢇ  
(ꢇꢋꢅ)  
(ꢇꢋꢅ)  
-
ꢉꢄꢈꢋꢅ  
ꢈꢃꢀꢋꢂ  
(ꢃꢈꢋꢃ)  
(ꢇꢋꢅ)  
ꢊꢇꢄꢋꢀ  
(ꢀꢃꢋꢅ)  
ꢃꢋꢀ  
Disposals  
(ꢇꢋꢀ)  
-
(ꢃꢋꢇ)  
-
(ꢄꢋꢀ)  
-
(ꢈꢋꢁ)  
-
(ꢃꢆꢋꢇ)  
-
(ꢁꢉꢋꢉ)  
-
-
Transferred to/from intangibles  
-
-
ꢃꢋꢀ  
Depreciation / amortisation for the year  
Accumulated depreciation / amortisation on disposals  
Currency translation differences  
Net carrying amount at the end of the year  
-
-
(ꢄꢀꢋꢈ)  
0.0  
(ꢇꢃꢋꢅ)  
0.1  
(ꢄꢄꢋꢇ)  
1.4  
(ꢈꢊꢋꢉ)  
1.1  
(ꢀꢊꢄꢋꢄ)  
ꢆꢈꢋꢈ  
(ꢈꢉꢉꢋꢄ)  
ꢇꢅꢋꢃ  
(ꢆꢋꢇ)  
ꢀꢋꢊ  
(ꢇꢋꢀ)  
ꢀꢆꢋꢉ  
(ꢇꢋꢆ)  
ꢈꢋꢆ  
ꢃꢋꢈ  
ꢈꢄꢋꢊ  
-
-
(ꢄꢆꢊꢋꢇ)  
ꢃꢄꢋꢀ  
(ꢇꢃꢊꢋꢆ)  
ꢁꢇꢋꢃ  
ꢀꢀꢋꢃ  
ꢇꢂꢅꢀꢇꢋꢊ  
-
-
-
(ꢇꢋꢈ)  
ꢆꢊꢋꢈ  
ꢃꢋꢆ  
ꢁꢊꢋꢇ  
(ꢂꢋꢀ)  
ꢃꢈꢊꢋꢊ  
ꢆꢋꢈ  
(ꢀꢋꢇ)  
ꢄꢆꢇꢋꢊ  
ꢃꢋꢄ  
(ꢀꢆꢋꢇ)  
ꢀꢁꢃꢆꢅꢋꢈ  
ꢇꢈꢋꢁ  
(ꢀꢃꢋꢇ)  
ꢀꢁꢆꢃꢇꢋꢉ  
ꢈꢁꢋꢇ  
(ꢆꢅꢋꢇ)  
ꢆꢁꢉꢉꢀꢋꢃ  
ꢁꢊꢅꢋꢁ  
ꢇꢃꢃꢋꢀ  
ꢈꢂꢇꢁꢃꢋꢈ  
ꢈꢂꢃꢆꢃꢋꢃ  
3
The capital work in progress additions are the result of major capacity projects.  
Property, plant and equipment  
Assets’ residual values and useful lives are reviewed and adjusted if  
40% of the Holly Springs facility, acquired with the Novartis Influenza  
business, is legally owned by the US Government. Full legal title will transfer  
to CSL on the completion of the Final Closeout Technical Report, expected in  
the next two to four years. CSL has full control of the asset and 100% of the  
value of the facility is included in the consolidated financial statements.  
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.  
Land, buildings, capital work in progress and plant and equipment assets  
are recorded at historical cost less, where applicable, depreciation and  
amortisation.  
Impairment testing for property, plant and equipment occurs if an  
impairment trigger is identified. No impairment triggers have been  
identified in the current year.  
Depreciation is on a straight-line basis over the estimated useful life of the  
asset.  
Assets under Finance Leases  
Leases of property, plant and equipment where the Group, as lessee, has  
substantially all the risks and rewards of ownership are classified as finance  
leases. A finance lease is capitalised at the lease’s inception at the fair value  
of the leased property or, if lower, the present value of the minimum lease  
Buildings  
5 – 40 years  
3 – 15 years  
5 – 10 years  
Gains and losses on disposals of items of property, plant and equipment are  
determined by comparing proceeds with carrying amounts and are included  
in the statement of comprehensive income when realised.  
Plant and equipment  
Leasehold improvements  
94  
CSL Limited Annual Report 2018  
payments. The corresponding rental obligations, net of finance charges, are  
included in interest bearing liabilities and borrowings. Each lease payment  
is allocated between the liability and finance cost. The finance cost is  
charged to the statement of comprehensive income over the lease period so  
as to produce a constant periodic rate of interest on the remaining balance  
of the liability for each period. The property, plant and equipment acquired  
under a finance lease is depreciated over the shorter of the asset’s useful life  
and the lease term.  
Earnings per Share  
Returns, Risk & Capital Management  
CSL’s basic and diluted EPS are calculated using the Group’s net profit for  
the financial year of US$1,728.9m (2017: US$1,337.4m).  
Note 10: Shareholder Returns  
Dividends  
2
018  
2017  
Dividends are paid from the retained earnings and profits of CSL Limited,  
as the parent entity of the Group. (See Note 19 for the Group’s retained  
earnings). During the year, the parent entity reported profits of A$1,312.9m  
Basic EPS  
USꢌꢆꢋꢈꢄꢄ  
USꢌꢇꢋꢅꢁꢊ  
Weighted average number of  
ordinary shares  
(
2
2017: A$6,104.2m). The parent entity’s retained earnings as at 30 June  
018 were A$10,720.4m (2017: A$10,275.9m). During the financial year  
ꢃꢉꢄꢁꢆꢉꢆꢁꢄꢄꢀ  
USꢌꢆꢋꢈꢇꢊ  
ꢀꢄꢄꢂꢁꢁꢈꢂꢈꢅꢉ  
USꢌꢇꢋꢅꢁꢈ  
Leasehold improvements  
Diluted EPS  
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.  
A$868.5m (the equivalent of US$672.2m) was distributed to shareholders  
by way of a dividend, with a further A$578.3 (the equivalent of US$420.7m)  
being determined as a dividend payable subsequent to the balance date.  
Adjusted weighted average number  
of ordinary shares, represented by:  
ꢃꢉꢆꢁꢈꢂꢅꢁꢅꢀꢆ  
ꢀꢄꢉꢂꢁꢊꢀꢂꢉꢀꢆ  
Weighted average ordinary shares  
ꢃꢉꢄꢁꢆꢉꢆꢁꢄꢄꢀ  
ꢀꢁꢉꢄꢆꢁꢆꢊꢀ  
ꢀꢄꢄꢂꢁꢁꢈꢂꢈꢅꢉ  
ꢈꢂꢃꢀꢁꢂꢀꢄꢇ  
2
018  
2017  
Plus:  
Dividend paid  
US$m  
US$m  
Note 9: Deferred Government Grants  
Employee share schemes  
Paid: Final ordinary dividend of US$0.72  
per share, unfranked, paid on 13 October  
ꢆꢄꢆꢋꢅ  
ꢁꢈꢃꢋꢃ  
2
018  
2017  
US$m  
2
017 for FY17 (prior year: US$0.68 per  
US$m  
Diluted EPS differs from Basic EPS as the calculation takes into account  
potential ordinary shares arising from employee share schemes operated by  
the Group.  
share, unfranked paid on 7 October 2016  
for FY16)  
Current deferred income  
ꢆꢋꢀ  
ꢁꢋꢇ  
ꢁꢄꢋꢅ  
ꢁꢅꢋꢈ  
Non-current deferred income  
Total deferred government grants  
ꢆꢂꢋꢂ  
ꢃꢇꢋꢈ  
Paid: Interim ordinary dividend of US$0.79  
per share, unfranked, paid on 13 April 2018  
for FY18 (prior year: US$0.64 per share,  
unfranked paid on 13 April 2017 for FY17)  
ꢆꢃꢈꢋꢅ  
ꢇꢅꢈꢋꢁ  
On-market Share Buyback  
During the year, the Group completed the remaining A$150m of the  
A$500m buyback announced in October 2016 as an element of its capital  
management program.  
Total paid  
ꢅꢂꢄꢋꢄ  
ꢃꢄꢇꢋꢂ  
ꢉꢃꢈꢋꢁ  
ꢁꢇꢉꢋꢁ  
Government grants are recognised at their fair value where there is  
reasonable assurance that the grant will be received and the Group  
will comply with all attached conditions. Government grants relating  
to an expense item are deferred and recognised in the statement of  
comprehensive income over the period necessary to match them with  
the expenses that they are intended to compensate. Government grants  
received for which there are no future related costs are recognised in the  
statement of comprehensive income immediately. Government grants  
relating to the purchase of property, plant and equipment are included in  
current and non-current liabilities as deferred income and are released to  
the statement of comprehensive income on a straight line basis over the  
expected useful lives of the related assets.  
Dividend determined, but not paid at  
year end:  
The on-market buyback was chosen as the most effective method to return  
capital to shareholders after consideration of the various alternatives. The  
on-market buyback provided the Group with maximum flexibility and  
allowed shareholders to choose whether to participate through normal  
equity market processes.  
Final ordinary dividend of US$0.93 per  
share, unfranked, expected to be paid on  
1
2 October 2018 for FY18, 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$0.72 per share, unfranked paid on 7  
October 2017 for FY17)  
The Group’s contributed equity includes the Share Buyback Reserve  
of (US$4,634.5m) (2017: (US$4,534.3m)). The Group’s ordinary share  
contributed equity has been reduced to nil from previous share buybacks.  
The distribution in respect of the 2018 financial year represents a US$1.72  
dividend paid for FY2018 on each ordinary share held. These dividends  
are approximately 45 % of the Group’s basic earnings per share (“EPS”) of  
US$3.822  
CSL Limited Annual Report 2018 95  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
Contributed Equity  
Note 11: Financial Risk Management  
CSL holds financial instruments that arise from the Group’s need to access  
financing, from the Group’s operational activities and as part of the Group’s  
risk management activities.  
4
The following table illustrates the movement in the Group’s contributed equity.  
2018  
2017  
The Group is exposed to financial risks associated with its financial  
instruments. Financial instruments comprise cash and cash equivalents,  
receivables, payables, bank loans and overdrafts, unsecured notes, lease  
liabilities and derivative instruments.  
Number of shares  
US$m  
Number of shares  
US$m  
Opening balance at 1 July  
ꢃꢉꢆꢁꢄꢉꢀꢁꢂꢅꢃ  
(ꢃꢁꢉꢆꢃꢋꢆ)  
ꢀꢄꢉꢂꢉꢃꢆꢂꢊꢀꢊ  
(ꢀꢂꢇꢈꢁꢋꢃ)  
Shares issued to employees (see also Notes 5 and 18):  
Performance Options Plan  
ꢄꢃꢁꢉꢃꢇ  
67,714  
ꢅꢈꢆ  
ꢇꢋꢅ  
ꢅꢇꢂꢀꢊꢉ  
94,380  
ꢇꢋꢁ  
-
The primary risks these give rise to are:  
Performance Rights Plan (for nil consideration)  
Retain and Grow Plan (for nil consideration)  
Global Employee Share Plan (GESP)  
Share buy-back, inclusive of cost  
Closing balance  
-
-
Foreign exchange risk.  
Interest rate risk.  
-
-
182,518  
15.1  
152,737  
10.4  
Credit risk.  
(ꢀꢁꢀꢄꢅꢁꢃꢆꢉ)  
452,400,784  
(ꢀꢀꢉꢋꢊ)  
(4,634.5)  
(ꢁꢂꢉꢅꢉꢂꢄꢊꢉ)  
453,251,764  
(ꢁꢁꢀꢋꢃ)  
(4,534.3)  
Funding and liquidity risk.  
Capital management risk.  
4
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, for example as a result of a share buy-back, those shares are cancelled. No gain or loss is recognised in the profit or loss and the consideration  
paid to acquire the shares, including any directly attributable transaction costs net of income taxes, is recognised directly as a reduction in equity.  
These risks, and the strategies used to mitigate them, are outlined on the  
following page.  
96  
CSL Limited Annual Report 2018  
SOURCE OF RISK  
RISK MITIGATION  
a. Foreign exchange risk  
b. Interest rate 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 net  
investments in foreign operations by denominating external borrowings in currencies that  
match the currencies of its foreign investments.  
The Group is exposed to interest rate risk through its primary financial assets and liabilities.  
The Group mitigates interest rate risk on borrowings primarily by entering into fixed rate  
arrangements, which are not subject to interest rate movements in the ordinary course. If  
necessary, CSL also hedges interest rate risk using derivative instruments. As at 30 June  
2018, no derivative financial instruments hedging interest rate risk were outstanding (2017:  
Nil).  
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, 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 and with whom the Group  
has a signed netting agreement. 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. Creditworthiness of  
customers is reviewed prior to granting credit, using trade references and credit reference  
agencies.  
d. Funding and liquidity risk  
The Group is exposed to funding and liquidity risk from operations and from external  
borrowing.  
The Group mitigates funding and liquidity risks by ensuring that:  
The Group has sufficient funds on hand to achieve its working capital and investment  
objectives  
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.  
The Group focusses on improving operational cash flow and maintaining a strong  
balance sheet  
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.  
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  
Liquidity and re-financing risks are not significant for the Group, as CSL has a prudent  
gearing level and strong cash flows.  
It has adequate flexibility in financing to balance short-term liquidity requirements and  
long-term core funding and 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.  
The Directors have proposed share buybacks in previous years, consistent with the aim of  
maintaining an efficient balance sheet, and with the ability to cease a buyback at any point  
should circumstances such as liquidity conditions change. Refer to Note 10 for details of share  
buybacks.  
CSL Limited Annual Report 2018 97  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
Risk management approach  
Sensitivity analysis – USD values  
b. Interest rate risk  
The Group uses sensitivity analysis (together with other methods)  
to measure the extent of financial risks and decide if they need to be  
mitigated.  
Profit after tax – sensitivity to general movement of 1%  
A movement of 1% in the USD exchange rate against AUD, EUR, CHF and  
GBP would not generate a material impact to profit after tax.  
At 30 June 2018, 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 $5.7m. This calculation is based on applying a 1% movement  
to the total of the Group’s cash and cash equivalents at year end.  
If so, the Group’s policy is to use derivative financial instruments, such as  
foreign exchange contracts and interest rate swaps, to support its objective  
of achieving financial targets while seeking to protect future financial  
security.  
Equity – sensitivity to general movement of 1%  
Any change in equity is recorded in the Foreign Currency Translation  
Reserve.  
At 30 June 2018, 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 $5.8m.  
This calculation is based on applying a 1% movement to the total of the  
Group’s floating rate unsecured bank loans at year end.  
FX Sensitivity on Equity (US$m)  
The aim is to reduce the impact of short-term fluctuations in currency or  
interest rates on the Group’s earnings.  
1
6
4
Derivatives are exclusively used for this purpose and not as trading or other  
speculative instruments.  
1
As at 30 June 2018, the Group had the following bank facilities, unsecured  
notes and finance leases:  
12  
a. Foreign exchange risk  
Eight revolving committed bank facilities totalling $1,633.9m. Of  
these facilities $21.5m mature in September 2018, $36.1m mature in  
November 2018, $36.1m mature in November 2019, $258.6m mature  
in October 2019, and the balance matures in December 2020. Interest  
on the facilities is paid quarterly in arrears at a variable rate. As at the  
reporting date the Group had $1,301.3m in undrawn funds available  
under these facilities;  
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.  
1
0
8
6
4
2
0
The Group reduces its foreign exchange risk on net investments in foreign  
operations by denominating external borrowings in currencies that match  
the currencies of its foreign investments.  
EUR250.4m committed bank facility (the KfW loan) with quarterly  
repayments commencing in December 2019 through to June 2027. As  
at the reporting date EUR60.4m ($70.5m) was undrawn under this  
facility.  
The total value of forward exchange contracts in place at reporting date is  
nil (2017: Nil).  
AUD  
EUR  
CHF  
GBP  
This calculation is based on changing the actual exchange rate of  
US Dollars to AUD, EUR, CHF and GBP as at 30 June 2018 by 1% and  
applying these adjusted rates to the net assets (excluding investments in  
subsidiaries) of the foreign currency denominated financial statements of  
various Group entities.  
98  
CSL Limited Annual Report 2018  
US$2,500m of Senior Unsecured Notes in the US Private Placement  
market. The notes mature in November 2018 (US$200m), March 2020  
c. Credit Risk  
The Group only invests its cash and cash equivalent financial assets with financial institutions having a credit rating of at least ‘A’ or better, as assessed by  
independent rating agencies.  
(
US$150m), November 2021 (US$250m), March 2023 (US$150m),  
November 2023 (US$200m), March 2025 (US$100m), October 2025  
US$100m), October 2026 (US$150m), November 2026 (US$100m),  
October 2027 (US$250m), October 2028 (US$200m), October 2029  
US$200m), October 2031 (US$200m), October 2032 (US$150m) and  
(
Average Closing  
Floating rate4  
Non-interest bearing  
US$m  
Total  
interest Rate  
%
(
US$m  
US$m  
October 2037 (US$100m). The weighted average interest rate on the  
notes is fixed at 3.37%  
2
018  
2017  
2018  
2017  
2018  
2017  
2018  
2017  
Financial Assets  
EUR350m of Senior Unsecured Notes in the US Private Placement  
market. The Notes mature in November 2022 (EUR100m), November  
Cash and cash equivalents  
Trade and other receivables  
Other financial assets  
814.7  
844.5  
-
ꢀꢁꢆꢈꢇꢋꢈ  
7.8  
-
ꢈꢂꢈꢇꢁꢋꢆ  
9.1  
814.7  
ꢀꢁꢆꢈꢇꢋꢈ  
7.8  
844.5  
ꢈꢂꢈꢇꢁꢋꢆ  
9.1  
ꢇꢋꢈ%  
ꢃꢋꢉꢍ  
2
024 (EUR150m) and November 2026 (EUR100m). The weighted  
-
-
-
-
-
-
-
-
average interest rate on the notes is fixed at 1.90%;  
CHF400m of Senior Unsecured Notes in the US Private Placement  
market. The notes mature in October 2023 (CHF150m) and October  
ꢈꢀꢃꢋꢂ  
ꢆꢀꢀꢋꢄ  
ꢀꢁꢆꢈꢈꢋꢅ  
ꢈꢂꢈꢁꢇꢋꢅ  
ꢄꢁꢄꢇꢆꢋꢆ  
ꢈꢂꢅꢊꢊꢋꢀ  
4
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 and liabilities  
are subject to reset within the next six months.  
2
025 (CHF250m). The weighted average interest rate on the notes is  
fixed at 0.88%;  
US$500m of Unsecured Floating Rate Notes (the QDI Bond) in the  
Hong Kong market. The notes mature in December 2021.  
Finance leases with a weighted average lease term of 6 years (2017:  
8
4
years). The weighted average discount rate implicit in the leases is  
.77% (2017: 4.85%). The Group’s lease liabilities are secured by leased  
CREDIT QUALITY OF FINANCIAL ASSETS  
30 JUNE 2018)  
CREDIT QUALITY OF FINANCIAL ASSETS  
assets of $13.5 million (2017: $15.4m). In the event of default, leased  
assets revert to the lessor.  
(
(30 JUNE 2017)  
The Group is in compliance with all debt covenants.  
$393.7m  
$854.2m  
$272.6m  
$848.7m  
Financial Institutions*  
Governments  
Hospitals  
Financial Institutions*  
Governments  
Hospitals  
$580.6m  
$490.7m  
Buying Groups  
Other  
Buying Groups  
Other  
$
213.7m  
$161.1m  
$195.8m  
$169.5m  
*
US$814.7m of the assets held with financial institutions are held as cash or cash  
equivalents, $33.3m of trade and other receivables and $6.2m of other financial  
assets. Financial assets held with non-financial institutions include US$1,349.1m of  
trade and other receivables and $1.6m of other financial assets.  
* US$844.5m of the assets held with financial institutions are held as cash or cash  
equivalents, $0.4m of trade and other receivables and $3.9m of other financial assets.  
Financial assets held with non-financial institutions include US$1,123.6m of trade and  
other receivables and $5.2m of other financial assets.  
CSL Limited Annual Report 2018 99  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
Financial assets are considered impaired where there is evidence that the  
Group will not be able to collect all amounts due according to the original  
trade and other receivable terms. Factors considered when determining if  
a financial asset is impaired include ageing and timing of expected receipts  
and the credit worthiness of counterparties. Where required, a provision  
for impairment is created for the difference between the financial asset’s  
carrying amount and the present value of estimated future receipts.  
The Group’s trading terms do not generally include the requirement for  
customers to provide collateral as security for financial assets.  
Trade Receivables  
Provision  
Gross  
Net  
2018  
2017  
2018  
US$m  
2017  
2018  
2017  
US$m  
US$m  
US$m  
US$m  
US$m  
Trade receivables:  
current  
925.7  
ꢅꢅꢋꢃ  
786.7  
ꢆꢃꢋꢈ  
ꢅꢋꢃ  
ꢇꢋꢄ  
11.9  
ꢃꢋꢁ  
919.3  
ꢅꢅꢋꢄ  
774.8  
ꢊꢅꢋꢆ  
less than 30 days overdue  
between 30 and 90 days overdue  
more than 90 days overdue  
51.0  
ꢂꢀꢋꢈ  
49.3  
0.3  
0.5  
50.7  
48.8  
The Group has not renegotiated any material collection/repayment terms of  
any financial assets in the current financial year.  
ꢉꢇꢋꢄ  
ꢀꢃꢋꢅ  
21.5  
ꢅꢋꢅ  
ꢉꢂꢋꢄ  
ꢄꢇꢋꢉ  
1
,114.9  
978.6  
22.6  
1,093.4  
956.0  
Government or government-backed entities (such as hospitals) often  
account for a significant proportion of trade receivables. As a result,  
the Group carries receivables from a number of Southern European  
governments. The credit risk associated with trading in these countries is  
considered on a country-by-country basis and the Group’s trading strategy  
is adjusted accordingly. The factors taken into account in determining the  
credit risk of a particular country include recent trading experience, current  
economic and political conditions and the likelihood of continuing support  
from agencies such as the European Central Bank. An analysis of trade  
receivables that are past due and, where required, the associated provision  
for impairment, is as follows. All other financial assets are less than 30 days  
overdue.  
d. Funding and liquidity risk  
The following table analyses the Group’s financial liabilities.  
2018  
US$m  
2017  
US$m  
The maturity profile of the Group’s debt is  
shown in the following chart.  
Interest-bearing liabilities and borrowings  
Current  
MATURITY PROFILE OF DEBT BY FACILITY  
Bank overdrafts – Unsecured  
Bank Borrowings – Unsecured  
Senior Unsecured Notes - Unsecured  
Lease liability – Secured  
ꢄꢋꢇ  
ꢄꢇꢋꢂ  
ꢄꢇꢇꢋꢇ  
ꢆꢋꢇ  
ꢈꢋꢄ  
ꢈꢊꢋꢅ  
ꢈꢃꢃꢋꢃ  
ꢁꢋꢈ  
800000  
7
6
5
4
3
2
1
00000  
00000  
00000  
00000  
00000  
00000  
00000  
0
ꢄꢄꢉꢋꢂ  
ꢈꢇꢇꢋꢄ  
Non-current  
Bank loans – Unsecured  
ꢉꢆꢆꢋꢆ  
ꢈꢂꢇꢈꢉꢋꢁ  
ꢇꢂꢉꢈꢀꢋꢈ  
ꢇꢇꢋꢁ  
Senior Unsecured Notes - Unsecured  
Lease liability - Secured  
ꢆꢁꢅꢇꢅꢋꢈ  
ꢄꢇꢋꢉ  
ꢃꢁꢀꢅꢇꢋꢅ  
ꢁꢂꢆꢄꢇꢋꢊ  
Interest-bearing liabilities and borrowings are recognised initially at fair value, net  
of transaction costs incurred. Subsequent to initial recognition, interest-bearing  
liabilities and borrowings are stated at amortised cost, with any difference between  
the proceeds (net of transaction costs) and the redemption value recognised in the  
statement of comprehensive income over the period of the borrowings.  
PRIVATE PLACEMENT  
QDI  
BANK DEBT  
KFW LOANS  
LEASES  
Fees paid on the establishment of loan facilities that are yield related are included as  
part of the carrying amount of the loans and borrowings. Borrowings are classified  
as current liabilities unless the Group has an unconditional right to defer settlement  
of the liability for at least 12 months after the reporting date.  
100 CSL Limited Annual Report 2018  
The following table categorises the financial liabilities into relevant maturity periods, taking into account the remaining period at the reporting date and the contractual maturity date. The amounts  
disclosed in the table are the contractual undiscounted cash flows and hence will not necessarily reconcile with the amounts disclosed in the balance sheet.  
Contractual payments due  
1
year or less  
US$m  
Between 1 year and 5 years  
US$m  
Over 5 years  
US$m  
Total  
US$m  
Average interest Rate  
%
2
018  
2017  
ꢈꢂꢈꢁꢁꢋꢆ  
ꢀꢃꢋꢇ  
2018  
ꢀꢆꢈꢋꢊ  
ꢆꢄꢃꢋꢄ  
ꢀꢅꢂꢋꢆ  
2017  
2018  
2017  
2018  
ꢀꢁꢆꢊꢉꢋꢂ  
ꢆꢉꢃꢋꢇ  
2017  
ꢈꢂꢈꢄꢅꢋꢉ  
ꢈꢂꢇꢅꢉꢋꢅ  
-
2018  
-
2017  
Trade and other payables (non-interest bearing)  
Bank loans – unsecured (floating rates)  
Bank loans – unsecured (fixed rates)  
ꢀꢁꢄꢉꢅꢋꢈ  
ꢄꢊꢋꢈ  
ꢇꢄꢋꢆ  
ꢈꢂꢇꢄꢉꢋꢊ  
-
-
-
-
-
-
-
ꢈꢋꢆꢍ  
-
ꢄꢋꢊ%  
ꢀꢋꢇ%  
ꢄꢋꢆ  
-
ꢅꢆꢋꢀ  
ꢄꢆꢄꢋꢂ  
Bank overdraft – unsecured (floating rates)  
ꢄꢋꢇ  
ꢈꢋꢄ  
-
-
-
-
ꢄꢋꢇ  
ꢈꢋꢄ  
-
-
Senior unsecured notes (fixed rates)  
Senior unsecured notes (floating rate)  
Lease liabilities (fixed rates)  
ꢄꢊꢄꢋꢄ  
ꢀꢃꢋꢅ  
ꢆꢋꢀ  
ꢈꢊꢀꢋꢃ  
-
ꢀꢁꢄꢅꢇꢋꢅ  
ꢉꢆꢅꢋꢉ  
ꢅꢉꢉꢋꢀ  
-
ꢄꢁꢉꢄꢅꢋꢆ  
-
ꢇꢂꢈꢈꢀꢋꢇ  
-
ꢃꢁꢇꢂꢊꢋꢀ  
ꢉꢉꢀꢋꢀ  
ꢁꢂꢇꢄꢀꢋꢉ  
-
ꢄꢋꢊ%  
ꢄꢋꢊ%  
ꢃꢋꢈ%  
ꢇꢋꢊꢍ  
-
ꢈꢋꢇ  
ꢀꢅꢋꢈ  
ꢈꢃꢋꢁ  
ꢀꢇꢋꢇ  
ꢇꢄꢋꢁ  
ꢄꢊꢋꢊ  
ꢁꢉꢋꢆ  
ꢀꢋꢊꢍ  
ꢁꢅꢇꢇꢋꢈ  
ꢈꢂꢁꢄꢃꢋꢊ  
ꢄꢁꢃꢃꢃꢋꢆ  
ꢇꢂꢇꢄꢅꢋꢇ  
ꢄꢁꢉꢊꢊꢋꢃ  
ꢇꢂꢈꢁꢅꢋꢄ  
ꢅꢁꢅꢃꢃꢋꢉ  
ꢄꢂꢊꢀꢅꢋꢀ  
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 and liabilities are subject to reset within the  
next six months.  
Derivatives  
Valuation of financial instruments  
Derivative financial instruments are initially recognised at fair value on the  
date the contract is entered into and are subsequently remeasured at fair  
value at reporting date. The gain or loss on re-measurement is recognised  
in the statement of comprehensive income. The fair value of forward foreign  
exchange contracts is calculated by reference to current forward exchange  
rates for contracts with similar maturity profiles.  
For financial instruments measured and carried at fair value, the Group uses  
the following to categorise the method used:  
Level 1: Items traded with quoted prices in active markets for identical  
liabilities  
Fair value of financial assets and financial liabilities  
The carrying value of financial assets and liabilities is materially the same  
as the fair value. The following methods and assumptions were used to  
determine the net fair values of financial assets and liabilities.  
Level 2: Items with significantly observable inputs other than quoted  
prices in active markets  
Interest bearing liabilities  
Level 3: Items with unobservable inputs (not based on observable  
market data)  
Cash  
Fair value is calculated based on the discounted expected principal and  
interest cash flows, using rates currently available for debt of similar terms,  
credit risk and remaining maturities.  
The carrying value of cash equals fair value, due to the liquid nature of cash.  
There were no derivatives outstanding as of 30 June 2018 (30 June 2017 –  
nil).  
Trade and other receivables/payables  
The Group also has external loans payable that have been designated as a  
hedge of its investment in foreign subsidiaries (known as a net investment  
hedge).  
The carrying value of trade and other receivables/payables with a remaining  
life of less than one year is deemed to be equal to its fair value.  
There were no transfers between Level 1 and 2 during the year.  
Contingent consideration arising from Business Combinations as set out  
in Note 1b is a Level 3 item. Management has exercised judgement in  
determining the appropriate timing and probability of the achievement of  
the underlying milestones.  
An effective hedge is one that meets certain criteria. Gains or losses on the  
net investment hedge that relate to the effective portion of the hedge are  
recognised in equity. Gains or losses relating to the ineffective portion, if any,  
are recognised in the consolidated statement of comprehensive income.  
CSL Limited Annual Report 2018 101  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
b. Reserves  
Note 12: Equity and Reserves  
a. Contributed Equity  
Movement in reserves  
2
018  
2017  
Foreign currency  
(ii)  
translation reserve  
US$m  
US$m  
US$m  
Share-based payments reserve (i)  
Total  
US$m  
US$m  
Ordinary shares issued and fully paid  
Share buy-back reserve  
-
-
(ꢀꢂꢄꢁꢀꢋꢁ)  
(ꢀꢂꢄꢁꢀꢋꢁ)  
(ꢃꢁꢅꢆꢃꢋꢉ)  
(ꢃꢁꢅꢆꢃꢋꢉ)  
2018  
2017  
2018  
2017  
2018  
2017  
Total contributed equity  
Opening balance  
ꢀꢅꢈꢋꢄ  
ꢆꢇꢋꢀ  
ꢈꢄꢅꢋꢀ  
ꢀꢄꢅꢋꢇ  
ꢇꢆꢋꢄ  
ꢄꢊꢃꢋꢄ  
ꢈꢆꢊꢋꢅ  
Share-based payments expense  
Deferred tax on share-based payments  
ꢄꢋꢇ  
-
ꢆꢇꢋꢀ  
ꢄꢋꢇ  
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.  
(ꢆꢋꢄ)  
-
ꢁꢋꢉ  
-
-
(ꢆꢋꢄ)  
ꢁꢋꢉ  
Net exchange gains / (losses) on translation of  
foreign subsidiaries, net of hedge  
(ꢊꢅꢋꢊ)  
ꢄꢊꢋꢀ  
ꢅꢊꢋꢄ  
(ꢊꢅꢋꢊ)  
ꢅꢊꢋꢄ  
Closing balance  
ꢀꢊꢉꢋꢀ  
ꢈꢉꢆꢋꢇ  
ꢈꢇꢉꢋꢃ  
ꢄꢄꢃꢋꢄ  
ꢇꢅꢀꢋꢇ  
Due to share buy-backs being undertaken at higher prices than the original  
subscription prices, the balance for ordinary share contributed equity has  
been reduced to nil, and a reserve created to reflect the excess value of  
shares bought over the original amount of subscribed capital. Refer to Note  
Nature and purpose of reserves  
i. Share-based payments reserve  
1
0 for further information about on-market share buy-backs.  
The share-based payments reserve is used to recognise the fair value of  
options, performance rights and GESP rights issued to employees.  
Information relating to employee performance option plans and GESP,  
including details of shares issued under the scheme, is set out in Note 5.  
ii. Foreign currency translation reserve  
Where the functional currency of a subsidiary is not US dollars, its  
assets and liabilities are translated on consolidation to US dollars using  
the exchange rates prevailing at the reporting date, and its profit and  
loss is translated at average exchange rates. All resulting exchange  
differences are recognized in other comprehensive income and in the  
foreign currency translation reserve in equity. Exchange differences  
arising from borrowings designated as hedges of net investments in  
foreign entities are also included in this reserve.  
102 CSL Limited Annual Report 2018  
5
The present value of finance lease liabilities is as follows:  
Note 13: Commitments and Contingencies  
a. Commitments  
2018  
2017  
US$m  
US$m  
Operating leases entered into relate predominantly to leased land and rental properties. The leases have varying terms and renewal rights. Rental payments  
under the leases are predominantly fixed, but generally contain inflation escalation clauses.  
Not later than one year  
Later than one year but not later than five years  
Later than five years  
ꢆꢋꢇ  
ꢂꢋꢊ  
ꢁꢋꢈ  
ꢆꢋꢀ  
Finance leases entered into relate predominantly to leased plant and equipment. The leases have varying terms but lease payments are generally fixed for  
the life of the agreement. In some instances, at the end of the lease term the Group has the option to purchase the equipment.  
ꢀꢄꢋꢅ  
ꢄꢆꢋꢉ  
ꢈꢁꢋꢅ  
ꢇꢄꢋꢀ  
Total  
No operating or finance lease contains restrictions on financing or other leasing activities.  
Commitments in relation to non-cancellable operating leases, finance leases and capital expenditure contracted but not provided for in the financial  
statements are payable as follows:  
b. Contingent assets and liabilities  
Litigation  
Operating Leases  
US$m  
Finance Leases  
US$m  
Capital Commitments  
US$m  
Total  
The Group is involved in litigation in the ordinary course of business.  
US$m  
During the year ended 30 June 2018 the Group became engaged in  
2018  
2017  
ꢄꢊꢋꢅ  
2018  
ꢆꢋꢂ  
2017  
ꢁꢋꢅ  
2018  
ꢉꢆꢄꢋꢄ  
ꢀꢉꢀꢋꢉ  
2017  
2018  
ꢅꢇꢇꢋꢃ  
ꢃꢇꢃꢋꢃ  
2017  
ꢀꢈꢄꢋꢆ  
ꢁꢁꢁꢋꢄ  
litigation for breach of contract, CSL has counter claims in place against  
the same entity and the outcomes remain uncertain. We have recognized a  
legal provision (see Note 16) which would be utilised should a settlement be  
required.  
Not later than one year  
ꢅꢃꢋꢉ  
ꢁꢄꢀꢋꢃ  
ꢈꢈꢊꢋꢃ  
Later than one year but  
not later than five years  
ꢄꢃꢄꢋꢉ  
ꢇꢃꢄꢋꢀ  
ꢀꢇꢋꢃ  
ꢈꢈꢋꢈ  
Later than five years  
Sub-total  
ꢃꢅꢅꢋꢉ  
ꢀꢃꢀꢋꢆ  
ꢀꢃꢋꢉ  
ꢈꢉꢋꢇ  
-
-
ꢃꢈꢀꢋꢇ  
ꢀꢇꢈꢋꢃ  
During the period ended 30 June 2017 the Group became aware of two  
separate patent infringement actions brought by competitors. CSL is highly  
confident in our intellectual property positions which are the product of  
more than a decade of innovative research by the Group. The Company is  
vigorously defending against the claims.  
ꢂꢂꢆꢋꢉ  
-
ꢉꢉꢆꢋꢈ  
-
ꢄꢈꢋꢅ  
ꢁꢈꢋꢇ  
ꢅꢈꢆꢋꢂ  
-
ꢀꢊꢈꢋꢃ  
-
ꢀꢁꢃꢈꢉꢋꢈ  
ꢈꢂꢈꢊꢃꢋꢁ  
(ꢄꢋꢆ)  
(ꢉꢋꢀ)  
(ꢄꢋꢆ)  
(ꢉꢋꢀ)  
Future finance charges  
Total  
ꢂꢂꢆꢋꢉ  
ꢉꢉꢆꢋꢈ  
ꢄꢆꢋꢉ  
ꢇꢄꢋꢀ  
ꢅꢈꢆꢋꢂ  
ꢀꢊꢈꢋꢃ  
ꢀꢁꢃꢈꢇꢋꢂ  
ꢈꢂꢈꢉꢀꢋꢄ  
5
Commitments and contingencies are disclosed net of the amount of GST (or equivalent) recoverable from, or payable to, a taxation authority  
CSL Limited Annual Report 2018 103  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
Cash, cash equivalents and bank overdrafts  
Efficiency of Operation  
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:  
Note 14: Cash and Cash Equivalents, Cash Flows  
2
018  
2017  
US$m  
US$m  
Cash on hand.  
Reconciliation of cash and cash equivalents  
Cash at bank and on hand  
At call deposits with banks or financial institutions.  
ꢉꢂꢄꢋꢉ  
ꢄꢃꢄꢋꢄ  
(ꢄꢋꢇ)  
ꢈꢀꢄꢋꢂ  
ꢄꢉꢇꢋꢊ  
ꢇꢆꢈꢋꢆ  
(ꢈꢋꢄ)  
Investments in money market instruments with original maturities of  
six months or less, that are readily convertible to known amounts of  
cash and subject to insignificant risk of changes in value.  
Cash deposits  
Less bank overdrafts  
Total cash and cash equivalents  
Reconciliation of Profit after tax to Cash Flows from Operations  
Profit after tax  
ꢆꢀꢁꢋꢃ  
For the purposes of the cash flow statement, cash at the end of the financial  
year is net of bank overdraft amounts.  
ꢀꢁꢂꢄꢈꢋꢊ  
ꢈꢂꢁꢁꢊꢋꢀ  
Cash flows are presented on a gross basis. The GST component of cash  
flows arising from investing and financing activities that are recoverable  
from or payable to a taxation authority are presented as part of operating  
cash flows.  
Non-cash items in profit after tax:  
Depreciation, amortisation and impairment charges  
Loss on disposal of property, plant and equipment  
Gain/(loss) on sale of assets  
ꢄꢊꢅꢋꢂ  
ꢆꢋꢃ  
ꢇꢊꢅꢋꢇ  
ꢆꢋꢊ  
(ꢆꢋꢈ)  
ꢆꢇꢋꢀ  
-
Share-based payments expense  
Changes in assets and liabilities:  
Increase in trade and other receivables  
Increase in inventories  
ꢈꢇꢋꢇ  
(ꢆꢇꢃꢋꢈ)  
(ꢀꢆꢈꢋꢇ)  
ꢀꢋꢆ  
(ꢊꢇꢋꢄ)  
(ꢁꢆꢅꢋꢇ)  
(ꢃꢋꢀ)  
(
Increase)/decrease in retirement benefit assets  
Increase)/decrease in net tax assets  
(
ꢀꢄꢂꢋꢂ  
ꢀꢄꢈꢋꢈ  
ꢆꢋꢆ  
(ꢈꢈꢈꢋꢃ)  
ꢈꢄꢁꢋꢅ  
(ꢃꢋꢉ)  
Increase in trade and other payables  
Decrease)/increase in deferred government grants  
(
Increase in provisions  
ꢄꢃꢋꢈ  
ꢇꢈꢋꢀ  
Increase in retirement benefit liabilities  
Net cash inflow from operating activities  
Non-cash financing activities  
ꢆꢋꢂ  
ꢊꢋꢄ  
ꢀꢁꢊꢇꢄꢋꢀ  
ꢈꢂꢇꢀꢉꢋꢉ  
Acquisition of plant and equipment by means of finance leases  
ꢀꢋꢅ  
ꢀꢋꢃ  
104 CSL Limited Annual Report 2018  
Trade and other receivables are initially recorded at fair value and are  
generally due for settlement within 30 to 60 days from date of invoice.  
Collectability is regularly reviewed at an operating unit level. Debts which  
are known to be uncollectible are written off when identified. A provision  
for impairment loss is recognised when there is objective evidence that  
all amounts due may not be fully recovered. The provision amount is the  
difference between the receivable’s carrying amount and the present value  
of estimated future cash flows that may ultimately be recovered. Cash  
flows relating to short-term receivables are not discounted if the effect of  
discounting is immaterial. When a trade receivable for which a provision for  
impairment has been recognised becomes uncollectible in a subsequent  
period, it is written off against the provision.  
Note 15: Trade Receivables and Payables  
a. Trade and other receivables  
Key judgements and estimates  
2
018  
2017  
In applying the Group’s accounting policy to trade and  
other receivables with governments and related entities  
in South Eastern Europe as set out in Note 11, significant  
judgement is involved in first assessing whether or not  
trade or other receivable amounts are impaired and  
thereafter in assessing the extent of impairment. 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.  
US$m  
US$m  
Current  
Trade receivables  
ꢀꢁꢀꢀꢃꢋꢊ  
(ꢄꢀꢋꢉ)  
ꢅꢊꢆꢋꢉ  
(ꢇꢇꢋꢉ)  
Less: Provision for impairment loss  
ꢁꢇꢊꢆꢋꢃ  
ꢄꢂꢄꢋꢀ  
ꢀꢀꢄꢋꢉ  
ꢅꢄꢉꢋꢃ  
ꢈꢄꢈꢋꢁ  
Sundry receivables  
Prepayments  
ꢉꢁꢋꢈ  
Other current receivables are recognised and carried at the nominal amount  
due. Non-current receivables are recognised and carried at amortised cost.  
They are non-interest bearing and have various repayment terms.  
Carrying amount of current trade  
and other receivables  
ꢀꢁꢃꢂꢈꢋꢇ  
ꢈꢂꢈꢊꢃꢋꢀ  
Non-current  
As at 30 June 2018, the Group had made provision for impairment of $21.5m  
(
2017: $22.6m).  
Long term deposits/other receivables  
ꢀꢉꢋꢆ  
ꢀꢉꢋꢆ  
ꢈꢉꢋꢄ  
ꢈꢉꢋꢄ  
Carrying amount of  
2
018  
2017  
US$m  
6
US$m  
non-current other receivables  
Opening balance at 1 July  
Additional allowance/  
ꢄꢄꢋꢅ  
ꢁꢈꢋꢈ  
6
The carrying amount disclosed above is a reasonable approximation of fair value. The  
maximum exposure to credit risk at the reporting date is the carrying amount of each  
class of receivable disclosed above. Refer to Note 11 for more information on the risk  
management policy of the Group and the credit quality of trade receivables.  
(utilised/written back)  
(ꢇꢋꢈ)  
(ꢇꢋꢆ)  
ꢄꢀꢋꢉ  
(ꢆꢋꢊ)  
ꢃꢋꢇ  
Currency translation differences  
Closing balance at 30 June  
ꢇꢇꢋꢉ  
Non-trade receivables do not include any impaired or overdue amounts and  
it is expected they will be received when due. The Group does not hold any  
collateral in respect to other receivable balances.  
CSL Limited Annual Report 2018 105  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
a. Trade and other payables  
Note 16: Provisions  
Employee  
benefits  
US$m  
Onerous  
Contracts  
US$m  
2
018  
2017  
US$m  
Legal  
US$m  
Other  
US$m  
Total  
US$m  
US$m  
Current  
Current  
Trade payables  
ꢃꢀꢂꢋꢃ  
ꢈꢇꢂꢋꢇ  
ꢁꢅꢅꢋꢃ  
ꢊꢈꢃꢋꢈ  
Carrying amount at the start of the year  
ꢈꢃꢁꢋꢀ  
ꢁꢃꢋꢃ  
ꢇꢇꢋꢁ  
ꢃꢋꢊ  
ꢈꢄꢉꢋꢀ  
Accruals and other payables  
Share-based payments (EDIP)  
Transfers (to)/from accruals  
Transfers between provisions  
Utilised  
-
-
(ꢄꢋꢃ)  
-
ꢇꢃꢋꢃ  
-
-
-
(ꢄꢋꢃ)  
-
ꢆꢄꢋꢃ  
ꢇꢀꢋꢊ  
(ꢇꢃꢋꢃ)  
Carrying amount of current trade and  
other payables  
ꢀꢁꢄꢉꢅꢋꢈ  
ꢈꢂꢈꢁꢁꢋꢆ  
(ꢉꢇꢋꢆ)  
ꢊꢆꢋꢇ  
(ꢇꢋꢄ)  
ꢀꢀꢅꢋꢆ  
(ꢄꢋꢃ)  
(ꢃꢋꢀ)  
ꢃꢋꢉ  
(ꢃꢋꢈ)  
ꢇꢋꢈ  
(ꢉꢆꢋꢇ)  
ꢅꢅꢋꢅ  
(ꢇꢋꢀ)  
ꢀꢈꢇꢋꢂ  
Additions  
-
-
-
ꢇꢈꢋꢈ  
ꢃꢋꢇ  
Currency translation differences  
Carrying amount at the end of the year  
Non-current  
ꢅꢆꢋꢅ  
Accruals and other payables  
Share-based payments (EDIP)  
ꢀꢇꢄꢋꢇ  
ꢄꢃꢋꢅ  
ꢃꢋꢉ  
ꢇꢄꢋꢇ  
ꢇꢄꢋꢆ  
Non-current  
Carrying amount of  
non-current other payables  
ꢀꢄꢅꢋꢅ  
Carrying amount at the start of the year  
Transfers (to)/from accruals  
ꢁꢇꢋꢄ  
-
-
-
-
-
ꢃꢋꢀ  
-
ꢁꢇꢋꢅ  
-
Transfers between provisions  
Utilised  
-
-
-
-
-
-
-
-
Trade and other payables represent amounts reflected at 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.  
(ꢃꢋꢈ)  
(ꢃꢋꢈ)  
Additions  
ꢈꢋꢅ  
-
-
-
-
-
-
-
-
-
ꢈꢋꢅ  
-
Currency translation differences  
Carrying amount at the end of the year  
ꢆꢃꢋꢃ  
ꢇꢋꢆ  
ꢆꢃꢋꢂ  
Receivables and payables include the amount of GST receivable or payable.  
The net amount of GST recoverable from, or payable to, taxation authorities  
is included in other receivables or payables in the balance sheet.  
Provisions are recognised when all three of the following conditions are met:  
assessments of the time value of money and of the risks specific to the  
obligation.  
The Group has a present or constructive obligation arising from a past  
transaction or event  
Detailed information about the employee benefits is presented in Note 5.  
It is probable that an outflow of resources will be required to settle the  
obligation  
During the financial year ended 30 June 2018 various liabilities have been  
reclassified.  
A reliable estimate can be made of the obligation.  
Amounts relating to a legal dispute have been reclassified from accruals into  
the legal provision as shown in the table above.  
Provisions are not recognised for future operating losses.  
The Onerous contract provision recognised in the prior year has been  
partially utilised with the balance reclassified to the legal provision and  
accruals as shown in the table above.  
Provisions recognised reflect management’s 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  
The change in presentation is to provide clarity as to the nature of the  
provisions.  
106 CSL Limited Annual Report 2018  
Subsidiaries  
Key management personnel transactions with the Group  
Other Notes  
The following table lists the Group’s material subsidiaries.  
The following transactions with key management personnel and their  
related entities have occurred during the financial year. These transactions  
occur as part of a normal supplier or partner relationship on “arm’s length”  
terms:  
Note 17: Related Party Transactions  
Ultimate controlling entity  
Percentage owned  
Country of  
2018  
%
2017  
%
The ultimate controlling entity is CSL Limited, otherwise described as the  
parent company.  
Company  
Incorporation  
CSL in Australia has corporate accounts with CityLink, operated by  
Transurban Group, of which Christine O’Reilly is a director.  
CSL Limited  
Australia  
Related party transactions  
Subsidiaries of CSL Limited:  
CSL has entered into a number of contracts, including collaborative research  
agreements, with Monash University, of which Megan Clark is a member of  
Council.  
CSL Behring (Australia) Pty Ltd Australia  
ꢀꢇꢇ  
ꢀꢇꢇ  
ꢀꢇꢇ  
ꢀꢇꢇ  
ꢀꢇꢇ  
ꢀꢇꢇ  
ꢀꢇꢇ  
ꢀꢇꢇ  
ꢀꢇꢇ  
ꢀꢇꢇ  
ꢈꢃꢃ  
ꢈꢃꢃ  
ꢈꢃꢃ  
ꢈꢃꢃ  
ꢈꢃꢃ  
ꢈꢃꢃ  
ꢈꢃꢃ  
ꢈꢃꢃ  
ꢈꢃꢃ  
ꢈꢃꢃ  
The parent company entered into the following transactions during the year  
with related parties in the Group.  
CSL Behring LLC  
CSL Plasma Inc  
USA  
USA  
Wholly owned subsidiaries  
CSL has entered into a number of contracts, including collaborative research  
agreements, with the Walter and Eliza Hall Institute for Medical Research, of  
which Marie McDonald is a director.  
CSL Behring GmbH  
CSL Behring AG  
Germany  
Switzerland  
Switzerland  
UK  
Loans were advanced and repayments received on the long term  
intercompany accounts.  
#
CSL Behring Lengnau AG  
Seqirus UK Limited  
Seqirus Pty Ltd  
Interest was charged on outstanding intercompany loan account  
balances.  
CSL has corporate accounts for the supply of power with Energy Australia,  
of which Christine O’Reilly was a director during the financial year.  
Sales and purchases of products.  
Australia  
UK  
Licensing of intellectual property.  
Seqirus Vaccines Limited  
Seqirus Inc  
CSL has entered into a research collaboration with the Baker Heart and  
Diabetes Institute, of which Christine O’Reilly is a director.  
Provision of marketing services by controlled entities.  
Management fees were received from a controlled entity.  
Management fees were paid to a controlled entity.  
USA  
#
In June 2018 CSL Behring Recombinant Facility AG and CSL Behring Lengnau AG  
merged.  
CSL Behring in Australia has entered into an agreement to make a research  
grant to the Australia and New Zealand College of Anesthetists, of which  
Bruce Brook was a member of the Board of Governors until December 2017.  
The transactions were undertaken on commercial terms and conditions.  
CSL has received financial services from Bank of America Merrill Lynch, of  
which Megan Clark is a member of the Australian Advisory Board.  
Payment for intercompany transactions is through intercompany loan  
accounts and may be subject to extended payment terms.  
CSL has a commercial arrangement to acquire laboratory supplies from  
Agilent Technologies, of which Tadataka Yamada is a director.  
Ownership interests in related parties  
All transactions with subsidiaries have been eliminated on consolidation.  
CSL Limited Annual Report 2018 107  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
Movements in Accrued benefits and assets  
Note 18: Detailed Information – People Costs  
a. Defined benefit plans  
During the financial year the value of accrued benefits decreased by $6.0m.  
The decrease is mainly attributable to three main factors:  
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.  
Actuarial adjustments, due primarily to higher discount rates at the  
end of the year than originally anticipated by the actuary, generated  
a decrease in accrued benefits of $25.9m. These adjustments do not  
affect the profit and loss as they are recorded in Other Comprehensive  
Income.  
The surplus/deficit for each defined benefit plan operated by the Group is as follows:  
June 2018  
US$m  
June 2017  
US$m  
Foreign currency movements had a $18.5m favourable impact on  
the value of accrued benefits, this movement is taken to the Foreign  
Currency Translation Reserve.  
Plan  
surplus/  
(deficit)  
Plan  
surplus/  
(deficit)  
Plan  
Assets  
Accrued  
benefit  
Plan  
Accrued  
benefit  
Pension Plan  
Assets  
Benefits were paid by plans and the employer during the year of $9.2m  
and $3.3m, respectively.  
CSL Pension Plan (Australia) - provides a lump sum benefit upon exit  
CSL Behring AG Pension Plan (Switzerland) - provides an ongoing pension  
ꢄꢆꢋꢆ  
(ꢀꢊꢋꢄ)  
ꢃꢋꢀ  
ꢇꢆꢋꢆ  
(ꢇꢁꢋꢇ)  
ꢄꢋꢉ  
ꢉꢆꢆꢋꢊ  
(ꢉꢉꢊꢋꢈ)  
(ꢄꢉꢋꢊ)  
ꢄꢈꢃꢋꢈ  
(ꢄꢉꢅꢋꢃ)  
(ꢄꢆꢋꢅ)  
Offsetting these decreases were:  
CSL Behring Union Pension Plan (USA) – provides an ongoing pension  
ꢉꢊꢋꢃ  
(ꢅꢀꢋꢆ)  
(ꢀꢋꢊ)  
ꢄꢉꢋꢄ  
(ꢉꢀꢋꢅ)  
(ꢆꢋꢀ)  
Service cost charged to the profit and loss of $40.2m. This amount  
represents the increased benefit entitlement of members, arising from  
an additional year of service and salary increases, which are taken into  
account in the calculation of the accrued benefit.  
CSL Behring GmbH Supplementary Pension Plan (Germany) –  
provides an ongoing pension  
-
-
-
-
(ꢀꢅꢅꢋꢄ)  
(ꢄꢋꢂ)  
(ꢀꢅꢅꢋꢄ)  
(ꢄꢋꢂ)  
-
-
-
-
(ꢈꢄꢊꢋꢇ)  
(ꢇꢋꢆ)  
(ꢈꢄꢊꢋꢇ)  
(ꢇꢋꢆ)  
bioCSL GmbH Pension Plan (Germany) – provides an ongoing pension  
CSL Behring KG Pension Plan (Germany) – provides an ongoing pension  
CSL Plasma GmbH Pension Plan (Germany) – provides an ongoing pension  
Employee contributions paid into the plan of $10.2m.  
(ꢀꢄꢋꢊ)  
(ꢇꢋꢆ)  
(ꢀꢄꢋꢊ)  
(ꢇꢋꢆ)  
(ꢈꢇꢋꢁ)  
(ꢃꢋꢁ)  
(ꢈꢇꢋꢁ)  
(ꢃꢋꢁ)  
In the prior year the value of accrued benefits increased by $1.4m. The  
increase is attributable to three main factors:  
CSL Behring KK Retirement Allowance Plan (Japan) –  
provides a lump sum benefit upon exit  
-
(ꢀꢃꢋꢆ)  
(ꢀꢃꢋꢆ)  
-
(ꢈꢁꢋꢇ)  
(ꢈꢁꢋꢇ)  
Service cost charged to the profit and loss of $43.7m. This amount  
represents the increased benefit entitlement of members, arising from  
an additional year of service and salary increases, which are taken into  
account in the calculation of the accrued benefit.  
CSL Behring S.A. Pension Plan (France) -  
provides a lump sum benefit upon exit  
-
-
(ꢀꢋꢀ)  
(ꢀꢋꢆ)  
(ꢀꢋꢀ)  
(ꢀꢋꢆ)  
-
-
(ꢃꢋꢅ)  
(ꢈꢋꢁ)  
(ꢃꢋꢅ)  
(ꢈꢋꢁ)  
CSL Behring S.p.A Pension Plan (Italy) -  
provides a lump sum benefit upon exit  
Foreign currency movements had a $18.8m unfavourable impact on  
the value of accrued benefits, this movement is taken to the Foreign  
Currency Translation Reserve.  
Total  
ꢅꢀꢅꢋꢅ  
(ꢈꢆꢊꢋꢀ)  
(ꢄꢄꢄꢋꢉ)  
ꢄꢅꢄꢋꢀ  
(ꢆꢀꢄꢋꢈ)  
(ꢇꢀꢅꢋꢊ)  
In addition to the plans listed above, CSL Behring GmbH and Seqirus GmbH employees are members of multi-employer plans administered by an unrelated  
third party. CSL Behring GmbH, Seqirus GmbH and their employees make contributions to the plans and receive pension entitlements on retirement.  
Participating employers may have to make additional contributions in the event that the plans have insufficient assets to meet their obligations. However,  
there is insufficient information available to determine this amount on an employer by employer basis. The contributions made by CSL Behring GmbH and  
Seqirus GmbH are determined by the Plan Actuary and are designed to be sufficient to meet the obligations of the plans based on actuarial assumptions.  
Contributions made by CSL Behring GmbH and Seqirus GmbH are expensed in the year in which they are made.  
Employee contributions paid into the plan of $8.5m.  
Offsetting these increases were:  
Actuarial adjustments, due primarily to higher discount rates at the  
end of the year than originally anticipated by the actuary, generated  
a decrease in accrued benefits of $59.3m. These adjustments do not  
affect the profit and loss as they are recorded in Other Comprehensive  
Income.  
108 CSL Limited Annual Report 2018  
Benefits were paid by plans and the employer during the year of $4.7m  
and $2.8m, respectively.  
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 $39.5m.  
An increase in the average discount rate of 0.25% would reduce the defined  
benefit obligation by $22.8m.  
On 1 October 2017, 206,436 PSUs and 315,304 RSUs were granted. The  
exercise price for both PSUs and RSUs is nil. The relevant tranche of PSUs  
and RSUs will exercise upon vesting on 1 September in each of 2018, 2019,  
2020 and 2021, this is one month earlier than the anniversary of the date of  
grant. Subsequent grants will be made on 1 September annually. The face  
value of the PSUs and RSUs granted is estimated at the date of grant using  
an adjusted form of the Black-Scholes model, taking into account the terms  
and conditions upon which the PSUs and RSUs were granted. On 1 March  
Plan assets increased by $21.3m during the financial year. The increase is  
mainly attributable to the following factors:  
Investment returns increased plan assets by $17.9m; and  
Contributions made by employer and employee increased plan assets  
by $32.9m.  
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.  
2
018 a further grant of 3,490 PSUs and 8,800 RSUs were granted. These  
Offsetting these increases were benefits paid by the plans of $8.3m and  
unfavourable foreign currency movements of $20.6m which are taken  
directly to the Foreign Currency Translation Reserve.  
have vesting dates between March 2018 and September 2021.  
Share-based long term incentives (LTI) issued between October 2012 and  
October 2013  
Year ended 30 June 2019  
Between two and five years  
Between five and ten years  
Beyond ten years  
$21.9m (2017: 21.1m)  
In the prior year plan the value of plan assets increased by $73.3m.  
Contributing factors were investment returns earned on plan assets  
Performance rights granted in 2012 and 2013 have hurdles that were to  
be set and measured in US dollars in line with the Group’s presentation  
currency. Subject to performance hurdles being satisfied, 50% of the LTI  
award will vest after three years, with the remaining 50% vesting after the  
fourth anniversary of the award date. The performance hurdles comprise a  
graduated vesting for the compound annual growth in EPS with no vesting  
below 8% CAGR and 100% vesting at 12% CAGR and a relative TSR hurdle  
measured against the MSCI Global Pharmaceutical Index with vesting if  
CSL’s TSR exceeds the Index.  
$92.9m (2017: 93.9m)  
$139.1m (2017: 146.4m)  
$585.2m (2017: 584.2m)  
($36.6m), employer and employee contributions ($30.2m) and favourable  
currency movements ($14.5m).  
b. Share-based payments – equity settled  
Long Term Incentives  
The principal actuarial assumptions,  
expressed as weighted averages,  
at the reporting date are:  
2018  
%
2017  
%
Discount rate  
ꢀꢋꢆ%  
ꢄꢋꢇ%  
ꢇꢋꢃ%  
ꢈꢋꢈꢍ  
ꢇꢋꢃꢍ  
ꢃꢋꢀꢍ  
During the year the Group amended our approach to long term incentives  
and replaced the previous performance rights, performance options  
and EDIP instruments with two new equity settled schemes. No further  
instruments have been issued under the previous schemes, other than the  
EDIP instruments disclosed in this note. The two new schemes are:  
Future salary increases  
Future pension increases  
Share-based long term incentives (LTI) issued in October 2014, October  
2
015 and October 2016  
Plan Assets  
Performance rights grants made in 2014, 2015 and 2016 will vest over a four  
year period with no re-test. The EPS growth test has 100% vesting occurring  
at a 13% compound annual growth rate and the potential for additional  
vesting on the achievement of stretch EPS growth targets. The relative  
TSR test is against a cohort of global pharmaceutical and biotechnology  
companies and progressive vesting has been reintroduced with 50% vesting  
where CSL’s performance is at the 50th percentile rising to 100% vesting at  
the 75th percentile. Performance Options also vest over a four year period  
and have no performance hurdles. The options only have value when the  
share price on exercise exceeds the exercise price. The company does not  
provide loans to fund the exercise of options.  
The Executive Performance and Alignment Plan (EPA) that grants  
Performance Share Units (PSU) to qualifying executives. Vesting is subject  
to continuing employment, satisfactory performance and the achievement  
of an absolute return measure. The return measure is a seven year rolling  
average Return on Invested Capital.  
The major categories of  
2018  
2017  
total plan assets are as follows:  
US$m  
US$m  
Cash  
ꢆꢈꢋꢄ  
ꢄꢃꢋꢃ  
Instruments quoted in active markets:  
Equity Instruments  
Bonds  
ꢄꢀꢊꢋꢊ  
ꢄꢅꢄꢋꢂ  
ꢊꢄꢋꢆ  
ꢇꢇꢃꢋꢀ  
ꢇꢀꢈꢋꢃ  
ꢆꢇꢋꢃ  
The Retain and Grow Plan (RGP) that 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.  
Unquoted investments – property  
Other assets  
ꢆꢋꢉ  
ꢇꢋꢃ  
Total Plan assets  
ꢅꢀꢅꢋꢅ  
ꢄꢅꢄꢋꢀ  
Under both the EPA and RGP plans grants will vest in equal tranches on the  
first, second, third and fourth anniversaries of grant.  
CSL Limited Annual Report 2018 109  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
Global Employee Share Plan (GESP)  
Valuation assumptions and fair values of equity instruments granted  
The model inputs for performance share units, restricted share units and GESP awards granted during the year ended 30 June 2018 included:  
The Global Employee Share Plan (GESP) allows employees to make  
contributions from after tax salary up to a maximum of A$6,000 per six  
month contribution period. The employees receive the shares at a 15%  
discount to the applicable market rate, as quoted on the ASX on the first day  
or the last day of the six-month contribution period, whichever is lower.  
Expected  
Life  
Expected  
Risk free  
interest rate  
Face Value7  
8
Share Price  
A$  
Exercise Price  
A$  
volatility  
assumption dividend yield  
A$  
Performance Share Units (by grant  
date)  
Recognition and measurement  
1
October 2017 - Tranche 1  
ꢌꢈꢁꢈꢋꢇꢉ  
ꢌꢈꢇꢅꢋꢃꢈ  
ꢌꢈꢇꢉꢋꢊꢆ  
ꢌꢈꢇꢀꢋꢉꢃ  
ꢌꢈꢉꢃꢋꢁꢇ  
ꢌꢈꢄꢊꢋꢅꢄ  
ꢌꢈꢄꢄꢋꢉꢈ  
ꢌꢈꢄꢁꢋꢁꢈ  
ꢌꢈꢁꢁꢋꢁꢊ  
ꢌꢈꢁꢁꢋꢁꢊ  
ꢌꢈꢁꢁꢋꢁꢊ  
ꢌꢈꢁꢁꢋꢁꢊ  
ꢌꢈꢉꢈꢋꢄꢁ  
ꢌꢈꢉꢈꢋꢄꢁ  
ꢌꢈꢉꢈꢋꢄꢁ  
ꢌꢈꢉꢈꢋꢄꢁ  
Nil  
Nil  
Nil  
Nil  
Nil  
Nil  
Nil  
Nil  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢈꢈ months  
ꢇꢁ months  
ꢁꢄ months  
ꢀꢊ months  
ꢉ months  
ꢈꢋꢊꢄꢍ  
ꢈꢋꢊꢄꢍ  
ꢈꢋꢊꢄꢍ  
ꢈꢋꢊꢄꢍ  
ꢈꢋꢄꢃꢍ  
ꢈꢋꢄꢃꢍ  
ꢈꢋꢄꢃꢍ  
ꢈꢋꢄꢃꢍ  
ꢈꢋꢊꢀꢍ  
ꢈꢋꢆꢀꢍ  
ꢈꢋꢅꢅꢍ  
ꢇꢋꢈꢀꢍ  
ꢈꢋꢆꢀꢍ  
ꢈꢋꢅꢆꢍ  
ꢇꢋꢃꢉꢍ  
ꢇꢋꢇꢃꢍ  
The fair value of options or rights is 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 options or rights. Fair  
value is independently determined using a combination of the Binomial and  
Black Scholes valuation methodologies, including Monte Carlo simulation,  
taking into account the terms and conditions on which the options and  
rights were granted. The fair value of the options granted excludes the  
impact of any non-market vesting conditions, which are included in  
assumptions about the number of options that are expected to vest.  
1 October 2017 - Tranche 2  
1
1
1
October 2017 - Tranche 3  
October 2017 - Tranche 4  
March 2018 – Tranche 1  
1 March 2018 – Tranche 2  
ꢈꢆ months  
ꢁꢃ months  
ꢀꢇ months  
1
1
March 2018 – Tranche 3  
March 2018 – Tranche 4  
Restricted Share Units (by grant date)  
At each reporting date, the number of options and rights that are expected  
to vest is revised. The employee benefit expense recognised each period  
takes into account the most recent estimate of the number of options and  
rights that are expected to vest. No expense is recognised for options and  
rights that do not ultimately vest, except where the vesting is conditional  
upon a market condition and that market condition is not met.  
1 October 2017 - Tranche 1  
ꢌꢈꢁꢈꢋꢇꢉ  
ꢌꢈꢇꢅꢋꢃꢈ  
ꢌꢈꢇꢉꢋꢊꢆ  
ꢌꢈꢇꢀꢋꢉꢃ  
ꢌꢈꢉꢈꢋꢄꢁ  
ꢌꢈꢉꢃꢋꢁꢇ  
ꢌꢈꢄꢅꢋꢈꢀ  
ꢌꢈꢄꢊꢋꢅꢄ  
ꢌꢈꢄꢉꢋꢊꢆ  
ꢌꢈꢄꢄꢋꢉꢈ  
ꢌꢈꢄꢀꢋꢀꢊ  
ꢌꢈꢄꢁꢋꢁꢈ  
ꢌꢈꢁꢁꢋꢁꢊ  
ꢌꢈꢁꢁꢋꢁꢊ  
ꢌꢈꢁꢁꢋꢁꢊ  
ꢌꢈꢁꢁꢋꢁꢊ  
ꢌꢈꢉꢈꢋꢄꢁ  
ꢌꢈꢉꢈꢋꢄꢁ  
ꢌꢈꢉꢈꢋꢄꢁ  
ꢌꢈꢉꢈꢋꢄꢁ  
ꢌꢈꢉꢈꢋꢄꢁ  
ꢌꢈꢉꢈꢋꢄꢁ  
ꢌꢈꢉꢈꢋꢄꢁ  
ꢌꢈꢉꢈꢋꢄꢁ  
Nil  
Nil  
Nil  
Nil  
Nil  
Nil  
Nil  
Nil  
Nil  
Nil  
Nil  
Nil  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢇꢃꢍ  
n/a  
ꢈꢈ months  
23 months  
35 months  
47 months  
nil  
ꢈꢋꢊꢄꢍ  
1.75%  
1.75%  
1.75%  
n/a  
ꢈꢋꢊꢀꢍ  
1.84%  
1.99%  
2.14%  
n/a  
1
1
1
October 2017 - Tranche 2  
October 2017 - Tranche 3  
October 2017 - Tranche 4  
1 March 2018 – Tranche 1  
1
1
1
1
1
1
1
March 2018 – Tranche 2  
March 2018 – Tranche 3  
March 2018 – Tranche 4  
March 2018 – Tranche 5  
March 2018 – Tranche 6  
March 2018 – Tranche 7  
March 2018 – Tranche 8  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢇꢃꢍ  
ꢇꢃꢍ  
6 months  
12 months  
18 months  
24 months  
30 months  
36 months  
42 months  
1.50%  
1.50%  
1.50%  
1.50%  
1.50%  
1.50%  
1.50%  
1.75%  
1.84%  
1.98%  
1.98%  
2.06%  
2.06%  
2.20%  
GESP (by grant date)9  
1
1
September 2017  
March 2018  
ꢌꢁꢈꢋꢄꢄ  
ꢌꢄꢀꢋꢁꢆ  
ꢌꢈꢁꢇꢋꢇꢆ  
ꢌꢈꢉꢁꢋꢀꢁ  
ꢌꢈꢃꢃꢋꢊꢁ  
ꢌꢈꢃꢅꢋꢃꢄ  
ꢇꢃꢍ  
ꢇꢃꢍ  
6 months  
6 months  
1.75%  
1.50%  
1.75%  
1.75%  
7
8
9
PSUs are subject to a ROIC based performance measure.  
The expected volatility is based on the historic volatility (calculated based on the remaining life assumption of each equity instrument), adjusted for any expected changes.  
The fair value of GESP equity instruments is estimated based on the assumptions prevailing on the grant date. In accordance with the terms and conditions of the GESP plan,  
shares are issued at a 15% discount to the lower of the ASX market price on the first and last dates of the contribution period.  
110 CSL Limited Annual Report 2018  
c. Share-based payments – cash settled  
Note 19: Detailed Information – Shareholder Returns  
The notional shares under the Executive Deferred Incentive Plan generate a cash payment to  
participants in three years’ time, or in limited instances over a prorated period (see Note 5), provided  
they are still employed by the company and receive a satisfactory performance review over that  
period. The amount of the cash payment will be determined by reference to the CSL share price  
immediately before the award maturity date.  
Consolidated Entity  
2018  
2017  
US$m  
Note  
US$m  
Retained earnings  
Recognition and measurement  
Opening balance at 1 July  
Net profit for the year  
ꢂꢁꢃꢇꢆꢋꢊ  
ꢀꢁꢂꢄꢈꢋꢊ  
(ꢅꢂꢄꢋꢄ)  
ꢆꢅꢋꢉ  
ꢉꢂꢄꢅꢇꢋꢁ  
ꢈꢂꢁꢁꢊꢋꢀ  
(ꢉꢃꢈꢋꢀ)  
ꢆꢅꢋꢆ  
The fair value of the cash-settled notional shares is measured by reference to the CSL share price at  
reporting date, adjusted for the dividend yield and the number of days left in the vesting period. The  
ultimate cost of these transactions will be equal to the fair value at settlement date. The cumulative  
cost recognised until settlement is a liability and the periodic determination of this liability is carried  
out as follows:  
Dividends  
Actuarial gain on defined benefit plans  
Deferred tax on actuarial (loss) on defined benefit plans  
Closing balance at 30 June  
(ꢅꢋꢊ)  
(ꢈꢀꢋꢇ)  
ꢊꢂꢀꢃꢁꢋꢅ  
ꢈꢁꢃꢊꢇꢋꢄ  
At each reporting date between grant and settlement, the fair value of the award is determined.  
Performance Options Plan  
During the vesting period, the liability recognised at each reporting date is the fair value of the  
award at that date multiplied by the expired portion of the vesting period.  
Options exercised under Performance Option plans as follows  
nil issued at A$37.91 (2017: 64,646 issued at A$33.68)  
nil issued at A$33.45 (2017: 25,050 issued at A$33.45)  
-
-
ꢈꢋꢉ  
ꢃꢋꢉ  
ꢃꢋꢈ  
ꢇꢋꢁ  
All changes in the liability are recognised in employee benefits expense for the period.  
The fair value of the liability is determined by reference to the CSL Limited share price at  
reporting date, adjusted for the dividend yield and the number of days left in the vesting period.  
24,540 issued at A$29.34 (2017: 2,780 issued at A$29.34)  
ꢇꢋꢅ  
ꢇꢋꢅ  
The following table lists the inputs to the valuation models used during the year for EDIP  
purposes.  
Global Employee Share Plan (GESP)  
Shares issued to employees under Global Employee Share Plan (GESP)  
2018  
2017  
78,552 issued at A$100.73 on 6 September 2017  
ꢅꢋꢆ  
ꢈꢋꢈ  
ꢀꢋꢅ  
ꢄꢋꢄ  
(
2017: 74,117 issued at A$86.86 on 9 September 2016)  
Fair value  
of grants at  
reporting date  
Fair value  
of grants at  
103,966 issued at A$109.05 on 6 March 2018  
(2017: 78,620 issued at A$92.46 on 3 March 2017)  
Dividend yield  
(%)  
Grant date  
reporting date  
Dividend yield %  
ꢈꢋꢊꢄꢍ  
ꢉꢋꢀ  
ꢈꢃꢋꢀ  
October 2015  
January 2016  
Aꢌꢀꢊꢃꢋꢃꢆ  
Aꢌꢀꢊꢃꢋꢃꢆ  
Aꢌꢀꢊꢆꢋꢂꢊ  
Aꢌꢀꢊꢃꢋꢃꢆ  
Aꢌꢀꢊꢃꢋꢃꢆ  
Aꢌꢀꢊꢀꢋꢀꢀ  
Aꢌꢀꢊꢆꢋꢇꢉ  
Aꢌꢀꢊꢃꢋꢀꢃ  
ꢀꢋꢂꢉ%  
ꢀꢋꢂꢉ%  
ꢀꢋꢂꢉ%  
ꢀꢋꢂꢉ%  
ꢀꢋꢂꢉ%  
ꢀꢋꢂꢉ%  
ꢀꢋꢂꢉ%  
ꢀꢋꢂꢉ%  
Aꢌꢈꢁꢊꢋꢆꢊ  
Aꢌꢈꢁꢊꢋꢆꢊ  
Aꢌꢈꢁꢊꢋꢃꢊ  
Aꢌꢈꢁꢊꢋꢆꢊ  
Aꢌꢈꢁꢊꢋꢆꢊ  
Aꢌꢈꢁꢄꢋꢄꢃ  
Aꢌꢈꢁꢄꢋꢄꢃ  
Aꢌꢈꢁꢊꢋꢆꢊ  
ꢈꢋꢊꢄꢍ  
#
March 2016  
ꢈꢋꢊꢄꢍ  
April 2016  
July 2016  
ꢈꢋꢊꢄꢍ  
ꢈꢋꢊꢄꢍ  
#
October 2016  
ꢈꢋꢊꢄꢍ  
#
January 2017  
ꢈꢋꢊꢄꢍ  
#
April 2017  
ꢈꢋꢊꢄꢍ  
#
The fair value of grants are the weighted average fair values.  
CSL Limited Annual Report 2018 111  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
Note 20: Auditors Remuneration  
Note 21: Deed of Cross Guarantee  
During the year the following fees were paid or were payable for services  
provided by CSL’s auditor and by the auditor’s related practices:  
On 22 October 2009, a deed of cross guarantee was executed between CSL  
Limited and some of its wholly owned entities, namely CSL International Pty  
Ltd, CSL Finance Pty Ltd, CSL Biotherapies Pty Ltd (now Seqirus (Australia)  
Pty Ltd) and Zenyth Therapeutics Pty Ltd. Since the establishment of the  
deed Seqirus Pty Ltd, CSL Behring (Australia) Pty Ltd and CSL Behring  
(Privigen) Pty Ltd have been added to the deed. During the year ended 30  
June 2017 Seqirus Australia Holdings Pty Ltd was added to the deed. 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 98/1418 (as amended) issued by the Australian Securities and  
Investments Commission.  
The entities that are parties to the deed represent a ‘Closed Group’ for the  
purposes of the Class Order, and as there are no other parties to the deed of  
cross guarantee that are controlled by CSL Limited, they also represent the  
‘Extended Closed Group’. A consolidated income statement and a summary  
of movements in consolidated retained profits for the year ended 30 June  
2018 and 30 June 2017 and a consolidated balance sheet as at each date for  
the Closed Group is set out below.  
2
018  
2017  
Audit or Review of Financial Reports  
Ernst & Young Australia  
US$m  
ꢀꢁꢆꢇꢆꢁꢇꢈꢃ  
ꢆꢁꢆꢀꢄꢁꢆꢀꢅ  
ꢃꢁꢅꢀꢉꢁꢃꢇꢇ  
US$m  
ꢈꢂꢈꢀꢇꢂꢀꢉꢇ  
ꢁꢂꢃꢉꢃꢂꢊꢊꢆ  
ꢀꢂꢇꢃꢁꢂꢇꢀꢃ  
Ernst & Young related practices  
Total remuneration for audit services  
Other services  
Ernst & Young Australia  
Consolidated Closed Group  
-
-
other assurance services  
non-assurance services  
ꢈꢈꢁꢈꢃꢆ  
ꢅꢇꢂꢈꢇꢇ  
2
018  
2017  
A$m  
ꢀꢃꢀꢁꢀꢈꢉ  
ꢈꢆꢁꢂꢈꢆꢃ  
Income Statement  
Continuing operations  
Sales revenue  
A$m  
ꢀꢁꢀꢇꢀꢋꢇ  
(ꢅꢈꢉꢋꢂ)  
ꢃꢀꢉꢋꢆ  
ꢈꢂꢈꢃꢉꢋꢄ  
(ꢊꢉꢄꢋꢁ)  
ꢁꢀꢈꢋꢇ  
Ernst & Young related practices  
Cost of sales  
-
-
other assurance services  
non-assurance services  
ꢀꢀꢃꢁꢊꢇꢈ  
ꢅꢇꢈꢁꢈꢇꢂ  
ꢊꢉꢆꢁꢂꢃꢆ  
ꢉꢁꢂꢉꢄꢅ  
ꢉꢅꢉꢂꢉꢉꢅ  
Gross profit  
Sundry revenues  
Dividend income  
Interest income  
ꢀꢀꢃꢋꢄ  
ꢈꢆꢆꢋꢄ  
Total remuneration for non-audit services  
Total remuneration for all services rendered  
ꢈꢂꢃꢁꢄꢂꢉꢁꢃ  
ꢀꢁꢆꢂꢉꢋꢇ  
ꢂꢅꢋꢃ  
ꢈꢂꢇꢊꢈꢋꢉ  
ꢉꢀꢋꢅ  
ꢉꢁꢉꢅꢊꢁꢀꢃꢆ  
ꢄꢂꢇꢁꢆꢂꢆꢊꢃ  
Research and development expenses  
Selling and marketing expenses  
General and administration expenses  
Finance costs  
(ꢀꢊꢃꢋꢀ)  
(ꢂꢉꢋꢃ)  
(ꢈꢆꢆꢋꢅ)  
(ꢉꢉꢋꢄ)  
(ꢀꢊꢇꢋꢇ)  
(ꢆꢆꢋꢀ)  
(ꢈꢇꢈꢋꢅ)  
(ꢇꢈꢋꢈ)  
Profit before income tax expense  
Income tax expense  
ꢀꢁꢃꢈꢈꢋꢆ  
(ꢃꢆꢋꢅ)  
ꢈꢂꢀꢉꢊꢋꢆ  
(ꢄꢉꢋꢇ)  
Profit for the year  
ꢀꢁꢃꢃꢃꢋꢂ  
ꢈꢂꢀꢈꢈꢋꢉ  
112 CSL Limited Annual Report 2018  
2
018  
2017  
A$m  
2018  
A$m  
2017  
A$m  
Balance sheet  
A$m  
Summary of movements in consolidated retained earnings of the Closed Group  
Current assets  
Retained earnings at beginning of the financial year  
Net profit  
ꢆꢃꢁꢉꢊꢊꢄꢇ  
ꢀꢁꢃꢃꢃꢋꢂ  
ꢀꢋꢇ  
ꢇꢁꢂꢇꢀꢆꢋꢅ  
ꢈꢂꢀꢈꢈꢋꢉ  
ꢇꢋꢀ  
Cash and cash equivalents  
ꢆꢉꢂꢋꢄ  
ꢄꢃꢇꢋꢆ  
ꢄꢉꢊꢋꢊ  
ꢈꢉꢂꢋꢃ  
ꢁꢆꢊꢋꢀ  
ꢇꢈꢇꢋꢄ  
ꢇꢊꢄꢋꢈ  
ꢆꢊꢄꢋꢃ  
Trade and other receivables  
Inventories  
Actuarial gain/(loss) on defined benefit plans, net of tax  
Dividends provided for or paid  
(ꢈꢅꢈꢋꢉ)  
ꢄꢃꢁꢃꢉꢃꢋꢈ  
(ꢊꢆꢄꢋꢁ)  
ꢇꢁꢂꢆꢊꢊꢋꢉ  
Total Current Assets  
Non-current assets  
Trade and other receivables  
Other financial assets  
Property, plant and equipment  
Deferred tax assets  
Intangible assets  
Retained earnings at the end of the financial year  
ꢂꢋꢉ  
ꢄꢇꢁꢇꢂꢉꢋꢃ  
ꢈꢊꢀꢋꢇ  
ꢈꢃꢋꢉ  
ꢈꢅꢂꢀꢅꢇꢋꢄ  
ꢆꢈꢈꢋꢇ  
ꢆꢆꢋꢉ  
ꢇꢃꢋꢃ  
ꢃꢆꢋꢆ  
ꢀꢈꢋꢅ  
Retirement benefit assets  
Total Non-Current Assets  
Total Assets  
ꢉꢋꢉ  
ꢊꢋꢁ  
ꢄꢀꢁꢇꢉꢅꢋꢄ  
ꢆꢅꢁꢋꢅꢃꢄꢇ  
ꢇꢃꢂꢁꢆꢁꢋꢄ  
ꢇꢈꢂꢇꢄꢆꢋꢄ  
Current liabilities  
Trade and other payables  
Provisions  
ꢄꢂꢊꢋꢄ  
ꢅꢇꢋꢆ  
ꢆꢋꢈ  
ꢁꢃꢀꢋꢉ  
ꢄꢉꢋꢅ  
ꢁꢋꢆ  
Deferred government grants  
Total Current Liabilities  
Non-current liabilities  
Trade and other payables  
Interest-bearing liabilities and borrowings  
Provisions  
ꢆꢃꢆꢋꢆ  
ꢁꢉꢄꢋꢁ  
ꢀꢄꢋꢄ  
ꢀꢁꢅꢆꢈꢋꢃ  
ꢀꢇꢋꢄ  
ꢈꢈꢋꢃ  
ꢈꢂꢀꢈꢇꢋꢀ  
ꢈꢃꢋꢄ  
Deferred government grants  
Total Non-Current Liabilities  
Total Liabilities  
ꢃꢉꢋꢀ  
ꢀꢉꢋꢊ  
ꢀꢁꢂꢇꢉꢋꢊ  
ꢄꢁꢇꢃꢊꢋꢄ  
ꢀꢊꢁꢈꢅꢃꢋꢃ  
ꢈꢂꢀꢆꢃꢋꢉ  
ꢈꢂꢆꢀꢄꢋꢅ  
ꢈꢅꢂꢀꢈꢇꢋꢉ  
Net Assets  
Equity  
Contributed equity  
Reserves  
(ꢃꢁꢂꢉꢉꢋꢅ)  
ꢀꢅꢉꢋꢄ  
(ꢀꢂꢉꢇꢄꢋꢁ)  
ꢈꢉꢃꢋꢁ  
Retained earnings  
ꢄꢃꢁꢃꢉꢃꢋꢈ  
ꢀꢊꢁꢈꢅꢃꢋꢃ  
ꢇꢁꢂꢆꢊꢊꢋꢉ  
ꢈꢅꢂꢀꢈꢇꢋꢉ  
TOTAL EQUITY  
CSL Limited Annual Report 2018 113  
Notes to the Financial Statements For the Year Ended 30 June 2018 continued  
Note 22: Parent Entity Information  
Note 23: 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.  
2
018  
2017  
A$m  
A$m  
Information relating to CSL Limited (‘the parent entity’)  
(
a) Summary financial information  
The individual financial statements for the parent entity show the following aggregate amounts:  
Current assets  
ꢉꢃꢉꢋꢅ  
ꢂꢁꢂꢀꢀꢋꢈ  
ꢄꢃꢄꢋꢇ  
ꢄꢇꢁꢋꢁ  
ꢊꢂꢉꢃꢃꢋꢀ  
ꢁꢁꢅꢋꢃ  
Total assets  
Current liabilities  
Total liabilities  
ꢀꢁꢅꢀꢉꢋꢃ  
(ꢃꢁꢂꢉꢉꢋꢅ)  
ꢀꢆꢀꢋꢅ  
ꢈꢂꢆꢇꢈꢋꢄ  
(ꢀꢂꢉꢇꢄꢋꢁ)  
ꢈꢇꢆꢋꢁ  
Contributed equity  
Share-based payments reserve  
Retained earnings  
ꢀꢇꢁꢂꢄꢇꢋꢃ  
ꢅꢁꢇꢊꢅꢋꢃ  
ꢀꢁꢆꢀꢄꢋꢊ  
ꢀꢁꢆꢀꢆꢋꢀ  
ꢈꢃꢂꢇꢊꢄꢋꢅ  
ꢄꢂꢊꢊꢆꢋꢅ  
ꢉꢂꢈꢃꢀꢋꢇ  
ꢉꢂꢈꢃꢀꢋꢄ  
Net Assets & Total Equity  
Profit or loss for the year  
Total comprehensive income  
(
b) Guarantees entered into by the parent entity  
The parent entity provides certain financial guarantees in the ordinary course of business. No liability has been recognised in relation to these  
guarantees as the fair value of the guarantees is immaterial. These guarantees are mainly related to all 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).  
(c) Contingent liabilities of the parent entity  
The parent entity did not have any material contingent liabilities as at 30 June 2018 or 30 June 2017. For information about guarantees given by the  
parent entity, please refer above and to Note 21.  
(d) Contractual commitments for the acquisition of property, plant or equipment  
The parent entity did not have any material contractual commitments for the acquisition of property, plant and equipment as at 30 June 2018 or 30  
June 2017.  
114 CSL Limited Annual Report 2018  
Product sales represent around 95% of total group revenue. The project  
to date has reviewed specific contracts driving this revenue. Whilst these  
contracts included a number of considerations under AASB 15 (such as  
discounts, rebates and rights of return), our project to date has assessed  
that the Group currently accounts for these in a manner that is materially  
consistent with the requirements under AASB 15. Work is ongoing to finalise  
the assessment across the remaining contracts.  
Applicable to the Group for the year ended 30 June 2020:  
Note 24: New and Revised Accounting Standards  
a. New and revised standards and interpretations adopted by the Group  
AASB 16 - Leases  
This standard introduces a single lessee accounting model and requires a  
lessee to recognise assets and liabilities for all leases with a term of more  
than 12 months, unless the underlying asset is of low value. A lessee will  
recognise a right-of-use asset representing its right to use the underlying  
leased asset and a lease liability representing its obligation to make lease  
payments. Depreciation on the asset and interest on the liability will be  
recognised. The Group is in the process of undertaking an assessment of  
the impact of AASB 16 and has not progressed to the point of quantifying  
the increase in total assets (arising from the inclusion of right of use assets)  
or total liabilities (arising from the inclusion of lease liabilities). The new  
standard will change the character of various items in the statement of  
comprehensive income but, at this stage, is not expected to give rise to a  
material impact.  
The Group has adopted, for the first time, certain standards and  
amendments to accounting standards. None of the changes have impacted  
on the Group’s accounting policies nor have they required any restatement.  
b. New and revised standards and interpretations not yet adopted by  
the Group  
Non-product sales represent the balance of group revenue. The project to  
date has reviewed significant contracts covering the majority of this. Given  
the size of the revenue stream and the contracts concerned, the Group does  
not believe that there will be a material impact on the financial statements  
arising from these contracts. One identified impact is a change in the timing  
of recognition of revenue for certain contracts where the Group enhances  
customer owned assets, under these contracts revenue will be recognized  
progressively rather than at a single point of time under the predecessor  
accounting standard. This change will give rise to an adjustment to opening  
retained earnings upon adoption of AASB 15, the amount is still being  
determined and will be included in the Interim Financial Statements for the  
period ended 31 December 2018. Despite this change the amount of revenue  
recognised over the financial year is not expected to be materially different  
from past practice.  
The following new and revised accounting standards and interpretations  
published by the Australian Accounting Standards Board which are  
considered relevant to the Group, are not yet effective. Unless otherwise  
stated below the Group has not yet completed its assessment of the impact  
of these new and revised standards on the financial report.  
Applicable to the Group for the year ended 30 June 2019:  
AASB 9 – Financial Instruments  
AASB2018-2 (Amendment to AASB 119 – Employee Benefits)  
This standard will change the classification and measurement of financial  
instruments, introduce new hedge accounting requirements including  
changes to hedge effectiveness testing, treatment of hedging costs, risk  
components that can be hedged and disclosures, and introduce a new  
expected-loss impairment model that will require more timely recognition  
of expected credit losses. An assessment of the impact has been completed  
and the Group does not believe that there will be a material impact upon  
adoption of AASB9.  
This pronouncement specifies how an entity accounts for defined benefit  
plans when a plan amendment, curtailment or settlement occurs during  
a reporting period. It requires entities to use the updated actuarial  
assumptions to determine current service cost and net interest for the  
remainder of the annual reporting period after such an event occurs. It  
also clarifies that when such an event occurs, an entity recognises the past  
service cost or a gain or loss on settlement separately from its assessment  
of the asset ceiling.  
The standard does impose additional disclosure requirements and the  
Group is continuing the project to determine the impact of the new  
disclosures.  
AASB2016-5 (Amendment to AASB 2 – Classification and Measurement of  
Share-based Payment Transactions)  
AASB 15 - Revenue from Contracts with Customers  
IFRIC Interpretation 23 – Uncertainty over income tax treatments  
This standard specifies the accounting treatment for revenue arising from  
contracts with customers providing a framework for determining when and  
how much revenue should be recognised. The core principle is that revenue  
must be recognised when goods or services are transferred to a customer,  
in an amount that reflects the consideration to which the entity expects to  
be entitled in exchange for those goods or services. During the year the  
Group undertook a project to identify the impact of AASB 15 on the financial  
statements. This included an analysis of the specific requirements of the  
standard and the review of material contracts entered into by the group that  
give rise to revenue.  
This amendment clarifies how to account for certain types of share-based  
payment transactions impacting the accounting for the effects of vesting  
and non-vesting conditions on the measurement of cash-settled share-  
based payments, share-based payment transactions with a net settlement  
feature for withholding tax obligations and a modification to the terms  
and conditions of a share-based payment that changes the classification  
of the transaction from cash-settled to equity settled. The Group does not  
have share based payment instruments that are impacted by the change,  
therefore the impact on the Group is expected to be immaterial.  
IFRIC23 clarifies the application of recognition and measurement  
requirements of AASB 112 Income Taxes where there is uncertainty over  
income tax treatments. The interpretation is not expected to result in any  
change to the financial statements of the group.  
CSL Limited Annual Report 2018 115  
Directors’  
Declaration  
1) In the opinion of the Directors:  
a. the financial statements and notes of the company and of the Group are in accordance with the Corporations Act 2001 (Cth), including:  
i. giving a true and fair view of the company’s and Group’s financial position as at 30 June 2018 and of their performance for the year  
ended on that date; and  
ii. complying with Australian Accounting Standards and Corporations Regulations 2001.  
b. there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.  
2) About this Report (a) in the notes to the financial statements confirms that the financial report complies with International Financial  
Reporting Standards as issued by the International Accounting Standards Board.  
3
) This declaration has been made after receiving the declarations required to be made to the directors in accordance with section 295A of the  
Corporations Act 2001 (Cth) for the financial period ended 30 June 2018.  
4) In the opinion of the Directors, as at the date of this declaration, there are reasonable grounds to believe that the members of the Closed  
Group identified in note 21 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 22 October 2009.  
This declaration is made in accordance with a resolution of the directors.  
John Shine AC  
Paul Perreault  
Chairman  
Managing Director  
Melbourne  
August 14 2018  
116 CSL Limited Annual Report 2018  
Independent Auditor’s Report  
For the Year Ended 30 June 2018  
CSL Limited Annual Report 2018 117  
Independent Auditors Report For the Year Ended 30 June 2018 continued  
118 CSL Limited Annual Report 2018  
CSL Limited Annual Report 2018 119  
Independent Auditors Report For the Year Ended 30 June 2018 continued  
120 CSL Limited Annual Report 2018  
CSL Limited Annual Report 2018 121  
Independent Auditors Report For the Year Ended 30 June 2018 continued  
122 CSL Limited Annual Report 2018  
CSL Limited Annual Report 2018 123  
Medical Glossary  
Acute myocardial infarction is a heart attack.  
Chronic inflammatory demyelinating  
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.  
Perioperative bleeding is bleeding during an  
operation.  
polyneuropathy (CIDP) is a neurological  
disorder which causes gradual weakness and  
a loss in sensation mainly in the arms and legs.  
Adjuvant is a substance which enhances the  
body’s immune response to an antigen.  
Plasma is the yellow-coloured liquid  
component of blood in which blood cells are  
suspended.  
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).  
Coagulation is the process of clot formation.  
Hereditary emphysema is a physiological  
condition that results in excessive amounts  
of white blood cells (neutrophils) entering the  
lungs, causing inflammation and chronic lung  
disease.  
Common variable immune deficiency  
is one of the most frequently diagnosed  
primary immunodeficiencies, especially  
in adults, characterised by low levels of  
immunoglobulins and antibodies, which  
causes an increased susceptibility to infection.  
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.  
Human papilloma virus (HPV) is a diverse  
group of DNA-based viruses that infect the  
skin and mucous membranes of humans and  
a variety of animals. Some HPV types cause  
benign skin warts, or papillomas, for which the  
virus family is named. Others can lead to the  
development of cervical dyskaryosis, which  
may in turn lead to cancer of the cervix.  
Prophylaxis is the action of a vaccine or  
drug that acts to defend against or prevent a  
disease.  
Anti-D immunoglobulin, also called Rh (D)  
immunoglobulin, is an injection of Anti-  
Rhesus antibodies given to a woman whose  
blood group is Rhesus negative, if there is a  
chance that she has been exposed to Rhesus  
positive blood either during pregnancy or  
blood transfusion.  
Fibrinogen is a coagulation factor found in  
human plasma that is crucial for blood clot  
formation.  
Quadrivalent influenza vaccine is a vaccine  
that offers protection against four different  
influenza virus strains.  
Fractionation is the process of separating  
plasma into its component parts,  
such as clotting factors, albumin and  
immunoglobulin, and purifying them.  
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).  
Immunoglobulins (IgG), also known as  
antibodies, are proteins produced by plasma  
cells. They are designed to control the body’s  
immune response by binding to substances  
in the body that are recognised as foreign  
antigens (often proteins on the surface of  
bacteria or viruses).  
Antivenom (or antivenin, or antivenene) is a  
biological product used in the treatment of  
venomous bites or stings.  
G-CSF is a glycoprotein that stimulates  
the bone marrow to produce granulocytes  
and stem cells and release them into the  
bloodstream.  
Subcutaneous is the administration of drugs  
or fluids into the subcutaneous tissue, which is  
located just below the skin.  
Autoimmune disease is when the body’s  
immune system attacks healthy cells.  
Biopharmaceuticals are proteins (including  
antibodies), nucleic acids (DNA, RNA  
or antisense oligonucleotides) used for  
prophylactic or therapeutic purposes.  
Haemolytic disease is a disease that disrupts  
the integrity of red blood cells causing the  
release of haemoglobin.  
Thrombosis is the formation of a blood clot  
inside a blood vessel, obstructing the flow of  
blood through the circulatory system.  
Influenza, commonly known as flu, is an  
infectious disease of birds and mammals  
caused by a RNA virus of the family  
Haemophilia is a haemorrhagic cluster of  
diseases occurring in two main forms:  
Orthomyxoviridae (the influenza viruses).  
Trivalent influenza vaccine is a vaccine  
that offers protection against three different  
influenza virus strains.  
Cell-based (technology) for the manufacture  
of influenza vaccines, is a process of growing  
viruses in animal cells.  
Intravenous is the administration of drugs or  
fluids directly into a vein.  
1. Haemophilia A (classic haemophilia, factor  
VIII deficiency), an X linked disorder due to  
deficiency of coagulation factor VIII.  
Von Willebrand disease (vWD) is a hereditary  
disorder caused by defective or deficient von  
Willebrand factor, a protein involved in normal  
blood clotting.  
C1 esterase inhibitor is a protein found in the  
fluid part of blood that controls C1, the first  
component of the complement system. The  
complement system is a group of proteins  
that move freely through the blood stream.  
These proteins work with the immune  
system and play a role in the development of  
inflammation.  
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.  
2
. Haemophilia B (factor IX deficiency,  
Christmas disease), also X linked, due to  
deficiency of coagulation factor IX.  
Warfarin is an anticoagulant used to to  
prevent heart attacks, strokes, and blood clots.  
Haemostasis (haemostatic) is the stopping  
of blood flow. Hereditary angioedema (HAE)  
is a rare but serious genetic disorder caused  
Neurology is the science of nerves and the  
nervous system.  
124 CSL Limited Annual Report 2018  
This report is printed on environmentally  
responsible paper made carbon neutral.  
The greenhouse gas emissions of the  
manufacturing process including  
transportation of paper to paper warehouse  
has been measured by the Edinburgh Centre  
for Carbon Neutral Company and the fibre  
source has been independently certified  
by the Forest Stewardship Council (FSC).  
The paper is manufactured from 100% Post  
Consumer Recycled paper in a Process  
Chlorine Free environment under the ISO  
Legal notice: This report is intended for global  
use. Some statements about products or  
procedures may differ from the licensed  
indications in specific countries. Therefore,  
always consult the country-specific product  
information, package leaflets or instructions  
for use. For more information, please contact  
a local CSL representative. This report  
covers CSL’s global operations, including  
subsidiaries, unless otherwise noted and a  
reference to CSL is a reference to CSL Limited  
and its related bodies corporate. The matters  
discussed in this report that are not historical  
facts are forward-looking statements,  
including statements with respect to future  
company compliance and performance.  
These statements involve numerous risks  
and uncertainties. Many factors could affect  
the company’s actual results, causing results  
to differ, possibly materially, from those  
expressed in the forward-looking statements.  
These factors include actions of regulatory  
bodies and other governmental authorities;  
the effect of economic conditions;  
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 have  
been approved in all countries served by CSL.  
CSL Limited ABN 99 051 588 348  
14001 environmental management system.  
It is printed by a ISO 14001EMS & ISO 9001  
quality management system certified printer,  
which is FSC Chain of Custody certified and  
printed on an ecologically rated printing  
press using a chemical recirculation system  
and vegetable based inks.  
Designed and produced by  
Carbon Theory, Melbourne, Australia.  
technological developments in the  
healthcare field; advances in environmental  
protection processes; and other factors.  
CSL disclaims any obligation to update any  
forward-looking statements.  
Corporate Directory  
SHARE REGISTRY  
AUDITORS  
REGISTERED HEAD OFFICE  
Computershare Investor  
Services Pty Limited  
Ernst & Young  
CSL Limited  
ABN 99 051 588 348  
Ernst & Young Building  
8 Exhibition Street  
Melbourne VIC 3000  
Yarra Falls  
45 Poplar Road  
Parkville VIC 3052  
Australia  
452 Johnston Street  
Abbotsford VIC 3067  
GPO Box 67  
GPO Box 2975  
Melbourne VIC 3001  
Melbourne VIC 3001  
Telephone: +61 3 9389 1911  
Facsimile: +61 3 9389 1434  
CSL.com  
Telephone: +61 3 9288 8000  
Facsimile: +61 3 8650 7777  
Enquiries within Australia:  
1
800 646 882  
FURTHER INFORMATION  
Enquiries outside Australia:  
61 3 9415 4178  
+
For further information about CSL  
and its operations, refer to Company  
announcements to the Australian  
Securities Exchange and our website:  
Investor enquiries online:  
Investorcentre.com/contact  
CSL.com  


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