CSL Ltd Annual Report 2020

We continue to invest in our CSL Plasma footprint to secure supply to meet growing patient demand. CSL Plasma has over 270 collection centres globally (US, Germany, Hungary and China) with plasma testing laboratories and logistics centres in the US, Germany and China along with a saline and sodium citrate manufacturing facility in the US. Efficient and safe donor management contributes to our success by ensuring a supply of rawmaterial which we use in our biotherapy manufacture. Over the reporting period 1.164 million surveys completed by our plasma donors indicated 99% would be willing to donate again and 97% would be willing to refer a friend to donate.* CSL Plasma donor profile The socio-demographic background of CSL Plasma donors in the US is very diverse. Based on self-reported survey data (1 July 2019 to 30 June 2020), CSL Plasma donors related their occupational status*: – 50% described themselves as working full-time; – 26% described themselves as unemployed, inclusive of full-time parents, donors who are not looking for work or the unemployed; – 14% described themselves as part-time; – 3% described themselves as students; and – 7% described themselves as other (e.g. military, retired). Focus on efficiency, standardised manufacturing processes and integrated supply chain CSL’s end-to-end operations organisation has a critical role to play in helping to deliver on our 2030 strategy, so we can continue saving people’s lives and improving public health across the globe. Over the last year, we have been evolving our end-to-end operations to build on its strengths and create an engaged and inclusive culture that consistently delivers top-tier results in the key areas of safety, quality, reliability and innovation. To meet the global demand for CSL’s lifesaving medicines, we are focused on driving a global mindset and creating an end-to-end operation organisation that is modern and scalable, from plasma collection through to our patients. Over the last year, we have made enhancements to our supply chain and manufacturing capabilities, introducing concepts such as reliability rooms, to give us greater visibility and control across our network. End-to-end operations is also working more closely than ever before with key internal partners like commercial operations and R&D, and using more predictive thinking and modelling to anticipate potential challenges, minimise risk and identify solutions. For CSL Plasma, the collection of vital human-derived plasma for the development of lifesaving products is industry leading and a critical part of CSL’s supply chain. With careful localised management of operations, including donor remuneration, CSL Plasma facilities minimise donor time via integrated donor management systems including electronic biometric identification and check-in, streamlined floor layouts and an operational excellence approach driving a cohesive culture of efficiency and teamwork. During the COVID-19 pandemic, CSL Plasma utilised a wide variety of measures to ensure the safety of donors and employees and address challenges such as the need for social distancing, stay-at-home orders and mandated capacity reductions. Secure and reliable supply During the financial year, a new function, External Supply Integration, was created to focus on partnering with world class contract manufacturers, analytical services and logistics providers. This function supports our 2030 strategy by delivering growth, reliability and innovation through investments made by the chosen partners. This ensures efficient growth, risk reduction and new capabilities are delivered more quickly and cost effectively. Sourcing in collaboration with the supplier quality team ensures the required level of quality and performance is demonstrated consistently across the CSL business. The focus on consistency removes variation for suppliers, thus simplifying their efforts to support CSL and further reduces risks and inefficiencies in our operations. CSL logistics was able to maintain the continuity of CSL product deliveries throughout the year and especially during COVID-19 amidst unprecedented disruptions of shipping capacity affecting both sea and airfreight. With the introduction in 2019 of a newly formed supply chain integrity role, a roadmap was developed to deepen our due diligence towards continuously improving the monitoring of potential risks in our supply chain. In collaboration with EcoVadis, a trusted global provider of sustainability performance evaluations, high-priority suppliers were independently assessed across health and safety, labour rights, ethical and environmental risk domains. Further to this pilot, CSL will establish an enterprise-wide due diligence platform that will create a consistent and holistic risk profile for our existing critical supplier base as well as enhance risk assessment processes when evaluating new suppliers. The COVID-19 pandemic served as a significant test of the security of Seqirus’ supply chain in the second half of the year. Supplies were successfully maintained to our manufacturing operations across all sites, internal and external, throughout the lockdown period. Materials where long-lead times are necessary will be assessed to mitigate future risks in similar circumstances. Seqirus UK secured Authorised Economic Operator (AEO) status in 2019/20, confirming the quality of our organisation and processes withWorld Customs Organization (WCO) standards. Procurement activities implemented across the Seqirus organisation, including commercial operations and R&D, have generated service improvements and cost reduction. Increased demand for influenza vaccine from Southern Hemisphere markets in early 2020 was able to be accommodated as a result of the network capacity and flexibility implemented in recent years. CSL remains compliant with all product serialisation requirements having achieved implementation in Russia in 2019/20 and is preparing to meet requirements for various other countries, such as Brazil and the USA Drug Supply Chain Security Act 2023 Track and Trace. Logistics goes green in the US Through a multi-functional initiative, CSL Global Logistics implemented a new small parcel shipper for the US market. Single-use components are made of cardboard, while all other components are collected and returned to the vendor for refurbishment and re-use. The result is a 90% reduction in landfill contributions (150 US tons annually). In addition, improved performance, increased branding and easier packaging ensures a unique and simpler customer experience. * Limited assurance by Ernst & Young. CSL Limited Annual Report 2020 33