CSL Ltd Annual Report 2020

Contents 1 Chairman and CEO Message 2 2 2020 Performance 6 Business performance and highlights 6 Financial highlights 7 3 Our Company 8 CSL at a glance 8 Our businesses 8 Our locations 9 Our product portfolio 10 Our research and development pipeline 10 4 Strategy and Performance 12 Our 2030 strategy 12 How we create value 14 United Nations sustainable development goals 16 Our financial review 16 Our operating review 16 Business strategies, prospects and likely developments 17 5 Our Material Risks 18 Patient safety and product quality 18 Product innovation and competition 18 Supply, capacity and operations 18 Market access 18 People and culture 19 Privacy and cybersecurity 19 6 Outlook 20 7 Powered by Innovation 21 Expanding our R&D footprint 21 Investment in our R&D pipeline 21 Strategic support for innovative medical research 24 Our drug delivery platforms 25 Influenza vaccine technologies 26 Addressing the global COVID-19 crisis 27 New products to market 28 Clinical trials in process and new 30 Innovation across the value chain 31 8 Global Reach and Impact 32 Global reach and focus 32 Donor management 32 Focus on efficiency, standardised manufacturing 33 processes and integrated supply chain Secure and reliable supply 33 Environment, health and safety 34 9 A Trusted Health Partner 37 Product quality and safety 37 Value and access 38 Public policy engagement 38 Influenza pandemic and emergency response 40 Relationships with patient groups 40 Responsible marketing and promotion 40 Our expanding footprint 41 Ethical conduct 42 10 Promising Futures 44 Diversity 44 Attraction and retention 45 Training and development 46 Our employee-centric approach to COVID-19 46 Employee engagement 46 Safety and wellbeing 47 11 Our Communities 48 Our approach 48 Support for patient communities 49 Support for biomedical communities 50 Support for local communities 52 12 Governance 54 Governance structure 54 Board composition 54 Board of Directors 55 Board committees 58 Leadership team 58 Ethics and transparency 60 Disclosure 60 Corporate governance 60 Risk management 60 Tax transparency 60 13 Financial Performance 61 Directors’ Report 62 Auditor’s Independence Declaration 67 Consolidated Statement of Comprehensive Income 96 Consolidated Balance Sheet 97 Consolidated Statement of Changes in Equity 98 Consolidated Statement of Cash Flows 99 Notes to the Financial Statements 100 Directors’ Declaration 138 Independent Auditor’s Report 139 14 Share Information 146 15 Medical Glossary 148 16 Key Performance Data Summary 150 Find out more CSL.com CSL Calendar 2020 Key Dates 19 August Annual profit and final dividend announcement 10 September Shares traded ex-dividend 11 September Record date for final dividend 9 October Final dividend paid 14 October Annual General Meeting 31 December Half Year ends 2021 Key Dates 16 February Half year profit and interim dividend announcement 4 March Shares traded ex-dividend 5 March Record date for interim dividend 1 April Interim dividend paid 30 June Full Year ends 18 August Annual profit and final dividend announcement 2 September Shares traded ex-dividend 3 September Record date for final dividend 30 September Final dividend paid 12 October Annual General Meeting 31 December Half Year ends About this report This is CSL’s second annual report where we have combined our financial and non-financial performance in one comprehensive account, linking our sustainability and strategic priorities to our business results. Unless otherwise stated, this report covers CSL’s subsidiaries as listed on Note 17 of the Financial Statements. In 2019/20, we concluded our fourth materiality assessment. Our prioritised topics are listed on page 15 and detailed throughout the Report. In addition to an independent audit of our consolidated financial accounts, limited assurance on a selection of corporate responsibility (CR) metrics has been provided by Ernst & Young, and an assurance statement for non-financial indicators, along with more detailed Group and CR information, including our materiality assessment, can be found on CSL.com (Our Company > Corporate Responsibility). Annual General Meeting 2020 Annual General Meeting ( AGM ) of CSL Limited (ABN 99 051 588 348) will be held online on Wednesday, 14 October 2020 at 10 am (Melbourne time).