CSL Ltd Annual Report 2020

5.2 STI Outcomes by Executive KMP in 2020 6 The remaining 42.69% of this tranche has lapsed – there is no retest. 7 The full tranche has lapsed – there is no retest. The financial performance of CSL (NPAT and CFO) makes up the majority weighting of the KPIs for Executive KMP, incentivising the delivery of strong financial performance – 70% for Mr Perreault, Mr Lamont and Dr McKenzie and 60% for Professor Cuthbertson. Both NPAT and CFO at 30 June 2020 resulted in above target performance and after reviewing the outcome and considering the impact of COVID-19, the Board exercised its discretion and reduced outcomes for certain unbudgeted actual outcomes. The remaining KPIs measured individual performance. Achievements that contributed to the outcomes detailed in Table 3 below can be found in Table 2 of this Report. The Board made no adjustments under the Malus and Clawback Policy and no risk management, behaviour or compliance issues involving Executive KMP were identified during the joint consultation between the HRRC and Audit and Risk Management Committee. Table 3: STI Outcomes in 2020 Executive Value of STI Earned US$ STI opportunity at Target level hurdle as a % of FR STI opportunity at Maximum level hurdle as a % of FR STI earned as % of Target opportunity STI earned as % of Maximum opportunity STI earned as % of FR Financial Performance Outcome Individual Performance Outcome P Perreault 2,477,746 120% 180% 118% 79% 142% Between Target and Maximum Between Threshold and Target A Cuthbertson 699,030 85% 128% 121% 81% 103% Between Target and Maximum Between Target and Maximum D Lamont 901,581 85% 128% 124% 83% 105% Between Target and Maximum Between Target and Maximum P McKenzie 1,164,765 100% 150% 126% 84% 126% Between Target and Maximum Between Target and Maximum 5.3 LTI Outcomes by Executive KMP in 2020 5.3.1 LTI awards tested in 2020 In 2020, in the course of annual performance testing, four LTI grants were tested across both legacy and current LTI awards. Due to CSL’s performance against a peer group of global pharmaceutical and biotechnology companies, and CSL’s strong share price growth over the performance period, vesting value outcomes were high. The table below shows the performance of CSL against the targets with vesting occurring in August 2019 and September 2019. Table 4: LTI Awards Tested in 2020 Grant Date Security Tranche Performance Period Exercise Price A$ Performance Outcome Vesting Outcome 1 October 2015 Option 1 1 July 2015 – 30 June 2019 89.52 Individual Performance 100% vested Right 1 – RTSR ranking – 98th%ile against a peer group of global Pharmaceutical and Biotechnology companies 100% vested Right 2 Annual EPS growth at 9.7% 57.31% vested 6 Right 3 Annual EPS growth at 9.7% 0% vested 7 1 October 2016 Notional Share 1 1 July 2016 – 30 June 2019 – Individual Performance 100% vested 1 October 2017 PSU 2 1 July 2012 – 30 June 2019 – Seven year ROIC at 28.2% 100% vested 1 October 2018 PSU 1 1 July 2012 – 30 June 2019 – Seven year ROIC at 28.2% 100% vested CSL Limited Annual Report 2020 78 Directors’ Report