CSL Ltd Annual Report 2020

CSL Limited Annual Report 2020 118 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$93.1m (2019: US$461.9m). The parent entity’s retained earnings as at 30 June 2020 were US$7,706.4m (2019: US$8,484.4m). During the financial year US$883.1mwas distributed to shareholders by way of a dividend, with a further US$485.8m being determined as a dividend payable subsequent to the balance date. Dividend paid 2020 US$m 2019 US$m Paid: Final ordinary dividend of US$1.00 per share, unfranked, paid on 11 October 2019 for FY19 (prior year: US$0.93 per share, unfranked, paid on 12 October 2018 for FY18) 453.9 420.3 Paid: Interim ordinary dividend of US$0.95 per share, unfranked, paid on 9 April 2020 for FY20 (prior year: US$0.85 per share, unfranked, paid on 12 April 2019 for FY19) 429.2 386.5 Total paid 883.1 806.8 Dividend determined, but not paid at year end: Final ordinary dividend of US$1.07 per share, unfranked, expected to be paid on 9 October 2020 for FY20, based on shares on issue at reporting date. The aggregate amount of the proposed dividend will depend on actual number of shares on issue at dividend record date (prior year: US$1.00 per share, unfranked paid on 11 October 2019 for FY19) 485.8 453.1 The distribution in respect of the 2020 financial year represents a US$2.02 dividend paid for FY2020 on each ordinary share held. These dividends are approximately 43.6% of the Group’s basic earnings per share (“EPS”) of US$4.63. Earnings per Share CSL’s basic and diluted EPS are calculated using the Group’s net profit for the financial year of US$2,102.5m (2019: US$1,918.7m). 2020 2019 Basic EPS US$4.633 US$4.236 Weighted average number of ordinary shares 453,808,099 452,919,486 Diluted EPS US$4.615 US$4.226 Adjusted weighted average number of ordinary shares, represented by: 455,605,010 454,027,808 Weighted average ordinary shares 453,808,099 452,919,486 Plus: Employee Share Schemes (See Note 5 & Note 18) 1,796,911 1,108,322 Diluted EPS differs from Basic EPS as the calculation takes into account potential ordinary shares arising from employee share schemes operated by the Group. On-market Share Buyback The Group did not undertake any share buy backs during the year. Contributed Equity The following table illustrates the movement in the Group’s contributed equity. 5 2020 2019 Numbers of shares US$m Numbers of shares US$m Opening balance at 1 July 453,138,632 (4,603.0) 452,400,784 (4,634.5) Shares issued to employees (see also Notes 5 and 18): Performance Options Plan 299,078 18.0 206,748 10.8 Performance Rights Plan (for nil consideration) 151,486 – 201,460 – Retain and Grow Plan (for nil consideration) 168,866 – 82,222 – Executive Performance & Alignment plan 91,822 – 51,628 – Global Employee Share Plan (GESP) 198,823 24.0 195,790 20.7 Closing balance 454,048,707 (4,561.0) 453,138,632 (4,603.0) 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.