CSL Ltd Annual Report 2020

1 Constant Currency removes the impact of exchange rate movements to facilitate comparability of operational performance for the Group. This is done in three parts: a) by converting the current year net profit of entities in the group that have reporting currencies other than US Dollars, at the rates that were applicable to the prior comparable period (Translation Currency Effect); b) by restating material transactions booked by the group that are impacted by exchange rate movements at the rate that would have applied to the transaction if it had occurred in the prior comparable period (Transaction Currency Effect); and c) by adjusting for current year foreign currency gains and losses (Foreign Currency Effect). The sum of translation currency effect, transaction currency effect and foreign currency effect is the amount by which reported net profit is adjusted to calculate the result at constant currency. United Nations sustainable development goals In September 2015, the General Assembly of the United Nations (UN) adopted the 2030 Agenda for Sustainable Development that includes 17 Sustainable Development Goals (SDGs). The goals seek to address global challenges, including those related to health and wellbeing, education, poverty, inequality, climate change, peace and justice. CSL has identified seven goals where performance against our strategic objectives, and continuous improvement across our priority sustainability topics, can impact achievement of these goals. More on CSL.com More on CSL.com More on CSL.com CSL’s identified UN Sustainable Development Goals For mor e informat ion on how CSL supports the UN Sustainable Development Goals visit CSL.com (Our Company > Corporate Responsibility > Approach). Our financial review Reported results CSL announced a net profit after tax of US$2,103 million for the 12 months ending 30 June 2020, up 10% when compared to the prior comparable period. Net profit after tax at constant currency 1 grew 17%. Sales revenue was US$8,797 million, up 9% on a constant currency basis when compared to the prior comparable period. Expense performance • Research and development expenses were US$922 million, up 12% 1 when compared to the prior comparable period. • Selling and marketing expenses were US$896 million, an increase of 5% 1 . • Depreciation and amortisation expense was US$420 million, up 13% 1 . • Net finance costs were US$144 million, down 17% 1 . Financial position • Capital expenditure was US$1,368 million, up 7% when compared to the prior comparable period. • Cashflow from operations was US$2,488 million, up 51%. • CSL’s balance sheet remains in a strong position with net assets of US$6,527 million. • Current assets increased by 16% to US$6,446 million. • Non-current assets increased by 33% to US$9,019 million. • Current liabilities decreased by 2% to US$2,142 million. • Non-current liabilities increased by 39% to $6,796 million. Our operating review CSL Behring Total revenue was US$7,854 million, up 9% at constant currency basis when compared to the prior comparable period. Immunoglobulin (Ig) product sales of US$4,014 million grew 22% on a constant currency basis underpinned by strong demand for PRIVIGEN ® (Immune Globulin Intravenous (Human), 10% Liquid) and HIZENTRA ® (Immune Globulin Subcutaneous (Human), 20% Liquid). Global demand for immunoglobulin is being driven by increased disease awareness and diagnosis as well as increase usage of Ig for the treatment of chronic conditions such as primary immune deficiency and the expanding utilisation of Ig for the treatment of secondary immune deficiencies. Another contributing factor to the strong growth in Ig was the label claim granted to PRIVIGEN ® and HIZENTRA ® in the US for the treatment of chronic inflammatory demyelinating polyneuropathy (CIDP) in 2018. The fastest growing area of the Ig market is the subcutaneous segment in which HIZENTRA ® continues to build its market leadership position. HIZENTRA ® is the only subcutaneous product approved for CIDP and has been granted orphan exclusivity for this indication in the US. CSL Limited Annual Report 2020 16 Strategy and Performance 4