CSL Ltd Annual Report 2020

CSL Limited Annual Report 2020 104 Notes to the Financial Statements Our Current Performance 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. The Group’s operating segments are: • 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. • Seqirus – manufactures and distributes non-plasma biotherapeutic products and develops influenza related products. CSL Behring US$m Seqirus US$m Consolidated Entity US$m 2020 2019 2020 2019 2020 2019 Sales and service revenue 7,661.0 7,187.3 1,135.6 1,018.1 8,796.6 8,205.4 Influenza Pandemic Facility Reservation fees – – 145.4 133.4 145.4 133.4 Royalties and License revenue 158.5 151.1 – 20.0 158.5 171.1 Other Income 34.2 4.5 16.1 24.2 50.3 28.7 Total segment revenue 7,853.7 7,342.9 1,297.1 1,195.7 9,150.8 8,538.6 Segment Gross Profit 4,540.3 4,195.1 686.1 582.3 5,226.4 4,777.4 Segment Gross Profit % 57.8% 57.1% 52.9% 48.7% 57.1% 56.0% Segment EBIT 2,451.4 2,350.6 265.1 153.4 2,716.5 2,504.0 Consolidated Operating Profit 2,716.5 2,504.0 Finance income 7.0 13.8 Finance costs (150.8) (176.7) Consolidated profit before tax 2,572.7 2,341.1 Income tax expense (470.2) (422.4) Consolidated net profit after tax 2,102.5 1,918.7 Amortisation 42.8 76.5 29.7 25.8 72.5 102.3 Depreciation 309.9 244.5 37.4 28.6 347.3 273.1 Segment EBITDA 2,804.1 2,671.6 332.2 207.8 3,136.3 2,879.4 CSL Behring US$m Seqirus US$m Intersegment Elimination US$m Consolidated Entity US$m 2020 2019 2020 2019 2020 2019 2020 2019 Segment assets 14,193.4 11,249.7 1,617.0 1,333.5 (345.8) (268.8) 15,464.6 12,314.4 Segment liabilities 8,510.2 6,697.3 715.1 634.6 (288.1) (268.8) 8,937.2 7,063.1 Other Information – capital expenditure Payments for property, plant and equipment 1,079.9 1,017.0 126.9 100.6 – – 1,206.8 1,117.6 Payments for intangibles 136.2 142.1 24.6 25.1 – – 160.8 167.2 Total capital expenditures 1,216.1 1,159.1 151.5 125.9 – – 1,367.6 1,284.8