CSL Ltd Annual Report 2019

Description of Key Risk Key Risk Mitigation Cyber Security and Data Protection • Most of CSL’s operations are computer-based and information technology (IT) systems are essential to maintaining effective operations. The data maintained within these systems is also essential to the operation of the business and considered private or proprietary to CSL. • 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, among 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 is continuously monitoring and assessing threats and implementing security control for its IT systems, data centre infrastructure, and data sets based on its understanding of known threats and best practice industry knowledge. Through regular training and awareness campaigns, CSL seeks to ensure employees are prepared to respond appropriately to relevant threats. • CSL employs robust IT disaster recovery planning and business continuity planning to mitigate operational interruptions. CSL also seeks to continuously improve, update and implement new IT systems to meet regulatory requirements, advance information security, and enhance the manufacture and supply of products and integration of operations. Intellectual Property • CSL relies on an ability to obtain and maintain protection for its intellectual property (IP) in the countries in which it operates. • 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 it does not hold a licence or other rights. • 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, it engages specialist advisors by jurisdiction to inform this approach. • CSL seeks to ensure that projects, products and related activities include an appropriate assessment of any third party IP profile and its IP profile. 6. Dividends On 14 August 2019 the Directors resolved to pay a final dividend of US$1.00 per ordinary share, unfranked, bringing dividends per share for 2019 to US$1.85 per share. In accordance with determinations by the Directors, CSL does not operate a dividend reinvestment plan. Dividends paid during the year were as follows: Dividend Date Resolved Date Paid Unfranked Dividend per Share US$ Total Dividend US$ Final Dividend for Year Ended 30 June 2018 15/08/2018 12/10/2018 0.93 cents $420.3m InterimDividend for Year Ended 30 June 2019 13/02/2019 12/04/2019 0.85 cents $386.5m Dividends are determined after period-end and announced with the results for the period. Interim dividends are determined in February and paid in April. Final dividends are determined in August and paid in October. Dividends determined are not recorded as a liability at the end of the period to which they relate. 7. Significant changes in the State of Affairs 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. 8. Significant events after year end 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. 9. Environment, Health, Safety & Sustainability Performance CSL has an Environment, Health, Safety and Sustainability (EHS 2 ) Strategic Plan that its facilities operate to industry and regulatory standards. This strategy includes compliance with government regulations and commitments for continuous improvement of health and safety in the workplace, as well as minimising the impact of operations on the environment. To drive this strategy, CSL implemented an EHS 2 Management System (EHSMS) Standard. Internal audits at three sites demonstrated compliance with EHSMS. Completion of the remaining internal audits are scheduled over the next two years. Development, implementation, and improvement of employee safety & health processes and programs continue to focus on enhancement of a strong safety culture. Our Australian operations continue classification as an Established Licensee in respect to CSL’s self-insurance licence as granted by the Safety, Rehabilitation and Compensation Commission. CSL Limited Annual Report 2019 54 Directors' Report