CSL Ltd Annual Report 2020

CSL Limited Annual Report 2020 135 Note 21: Deed of Cross Guarantee On 3 February 2017, a deed of cross guarantee was executed between CSL Limited and some of its wholly owned entities, namely CSL International Pty Ltd (now CSL Behring (Holdings) Pty Ltd), CSL Finance Pty Ltd, Seqirus (Australia) Pty Ltd), Zenyth Therapeutics Pty Ltd (now CSL Innovation Pty Ltd), Seqirus Pty Ltd, CSL Behring (Australia) Pty Ltd and Seqirus Holdings Australia Pty Ltd. During the year ended 30 June 2020, CSL IP Investments Pty Ltd and Amrad Pty Ltd, were 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 2020 and 30 June 2019 and a consolidated balance sheet as at each date for the Closed Group is set out below. Consolidated Closed Group Income Statement 2020 US$m 2019 US$m Continuing operations Sales revenue 1,035.3 830.9 Cost of sales (488.3) (558.7) Gross profit 547.0 272.2 Sundry revenues 25.7 38.9 Dividend income 521.9 745.9 Interest income 1.3 31.6 Research and development expenses (141.8) (148.3) Selling and marketing expenses (44.9) (51.8) General and administration expenses (95.6) (168.6) Finance costs (26.1) (27.4) Profit before income tax expense 787.6 692.5 Income tax expense (20.3) (0.1) Profit for the year 767.3 692.4