CSL Ltd Annual Report 2019

CSL Limited Annual Report 2019 108 Notes to the Financial Statements Returns, Risk & Capital Management Note 10: Shareholder Returns Dividends 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 US$461.9m (2018: US$1,017.8m). The parent entity’s retained earnings as at 30 June 2019 were US$8,484.4m (2018: US$8,824.4m). During the financial year US$806.8mwas distributed to shareholders by way of a dividend, with a further US$453.1m being determined as a dividend payable subsequent to the balance date. Dividend paid 2019 US$m 2018 US$m Paid: Final ordinary dividend of US$0.93 per share, unfranked, paid on 12 October 2018 for FY18 (prior year: US$0.72 per share, unfranked, paid on 13 October 2017 for FY17) 420.3 323.6 Paid: Interim ordinary dividend of US$0.85 per share, unfranked, paid on 12 April 2019 for FY19 (prior year: US$0.79 per share, unfranked, paid on 13 April 2018 for FY18) 386.5 348.6 Total paid 806.8 672.2 Dividend determined, but not paid at year end: Final ordinary dividend of US$1.00 per share, unfranked, expected to be paid on 11 October 2019 for FY19, 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$0.93 per share, unfranked paid on 12 October 2018 for FY18) 453.1 420.7 The distribution in respect of the 2019 financial year represents a US$1.85 dividend paid for FY2019 on each ordinary share held. These dividends are approximately 44% of the Group’s basic earnings per share (“EPS”) of US$4.236. Earnings per Share CSL’s basic and diluted EPS are calculated using the Group’s net profit for the financial year of US$1,918.7m (2018: US$1,728.9m). 2019 2018 Basic EPS US$4.236 US$3.822 Weighted average number of ordinary shares 452,919,486 452,353,221 Diluted EPS US$4.226 US$3.809 Adjusted weighted average number of ordinary shares, represented by: 454,027,808 453,876,613 Weighted average ordinary shares 452,919,486 452,353,221 Plus: Employee share schemes 1,108,322 1,523,391 Diluted EPS differs from Basic EPS as the calculation takes into account potential ordinary shares arising from employee share schemes operated by the Group. On-market Share Buyback The Group did not undertake any share buy backs during the year. Contributed Equity The following table illustrates the movement in the Group’s contributed equity. 5 2019 2018 Numbers of shares US$m Numbers of shares US$m Opening balance at 1 July 452,400,784 (4,634.5) 453,251,764 (4,534.3) Shares issued to employees (see also Notes 5 and 18): Performance Options Plan 206,748 10.8 24,540 0.6 Performance Rights Plan (for nil consideration) 201,460 – 67,714 – Retain and Grow Plan (for nil consideration) 82,222 – 683 – Executive Performance & Alignment plan 51,628 – – – Global Employee Share Plan (GESP) 195,790 20.7 182,518 15.1 Share buy-back, inclusive of cost – – (1,126,435) (115.9) Closing balance 453,138,632 (4,603.0) 452,400,784 (4,634.5) 5 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.