CSL Ltd Annual Report 2021

Returns, Risk & Capital Management Note 10: Shareholder Returns Dividends Dividends are paid from the retained earnings and profits of CSL Limited, as the parent entity of the Group. (See Note 22 for the parent entity’s retained earnings). During the year, the parent entity reported profits of $106.1m (2020: $93.1m). The parent entity’s retained earnings as at 30 June 2021 were $6,854.4m (2020: $7,706.4m). During the financial year $958.0mwas distributed to shareholders by way of a dividend, with a further $537.0m being determined as a dividend payable subsequent to the balance date. 12 O rdinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. Where the Group reacquires its own shares, for example as a result of a share buy-back, those shares are cancelled. No gain or loss is recognised in the profit or loss and the consideration paid to acquire the shares, including any directly attributable transaction costs net of income taxes, is recognised directly as a reduction in equity. Dividend Paid 2021 US$m 2020 US$m Paid: Final ordinary dividend of US$1.07 per share, unfranked, paid on 9 October 2020 for FY20 (prior year: US$1.00 per share, unfranked, paid on 11 October 2019 for FY19) 484.7 453.9 Paid: Interim ordinary dividend of US$1.04 per share, unfranked, paid on 1 April 2021 for FY21 (prior year: US$0.95 per share, unfranked, paid on 9 April 2020 for FY20) 473.3 429.2 Total paid 958.0 883.1 Dividend determined, but not paid at year end: Final ordinary dividend of US$1.18 per share, 10% franked at 30% tax rate, expected to be paid on 30 September 2021 for FY21, based on shares on issue at reporting date. The aggregate amount of the proposed dividend will depend on actual number of shares on issue at dividend record date (prior year: US$1.07 per share, unfranked paid on 9 October 2020 for FY20) 537.0 485.8 The distribution in respect of the 2021 financial year represents a US$2.22 dividend paid for FY2021 on each ordinary share held. These dividends are approximately 42.5% of the Group’s basic earnings per share (“EPS”) of US$5.22. Earnings per Share CSL’s basic and diluted EPS are calculated using the Group’s net profit for the financial year of $2,375.0m (2020: $2,102.5m). 2021 2020 Basic EPS US$5.22 US$4.63 Weighted average number of ordinary shares 454,865,604 453,808,099 Diluted EPS US$5.21 US$4.61 Adjusted weighted average number of ordinary shares, represented by: 456,203,803 455,605,010 Weighted average ordinary shares 454,865,604 453,808,099 Plus: Employee Share Schemes (See Note 5 & Note 18) 1,338,199 1,796,911 Diluted EPS differs from Basic EPS as the calculation takes into account potential ordinary shares arising from employee share schemes operated by the Group. Contributed Equity The following table illustrates the movement in the Group’s contributed equity. 12 2021 2020 Number of shares US$m Number of shares US$m Opening balance at 1 July 454,048,707 (4,561.0) 453,138,632 (4,603.0) Shares issued to employees via (see also Notes 5 and 18): Performance Options Plan 308,186 24.4 299,078 18.0 Performance Rights Plan (for nil consideration) 197,646 – 151,486 – Retain and Grow Plan (for nil consideration) 253,126 – 168,866 – Executive Performance & Alignment Plan (for nil consideration) 138,369 – 91,822 – Global Employee Share Plan (GESP) 179,960 32.0 198,823 24.0 Closing balance 455,125,994 (4,504.6) 454,048,707 (4,561.0) CSL Limited Annual Report 2020/21 126 Notes to the Financial Statements