CSL Ltd Annual Report 2021

Note 21: Deed of Cross Guarantee On 3 February 2017, a deed of cross guarantee was executed between CSL Limited and some of its wholly owned entities, namely CSL International Pty Ltd (now CSL Behring (Holdings) Pty Ltd), CSL Finance Pty Ltd, Seqirus (Australia) Pty Ltd, CSL Innovation Pty Ltd, Seqirus Pty Ltd, CSL Behring (Australia) Pty Ltd and Seqirus Holdings Australia Pty Ltd. During the year ended 30 June 2021, CSL IP Investments Pty Ltd and Amrad Pty Ltd, were added to the deed. Under this deed, each company guarantees the debts of the others. By entering into the deed, these specific wholly owned entities have been relieved from the requirement to prepare a financial report and directors’ report under Class Order 98/1418 (as amended) issued by the Australian Securities and Investments Commission. The entities that are parties to the deed represent a ‘Closed Group’ for the purposes of the Class Order, and as there are no other parties to the deed of cross guarantee that are controlled by CSL Limited, they also represent the ‘Extended Closed Group’. A consolidated income statement and a summary of movements in consolidated retained profits for the year ended 30 June 2021 and 30 June 2020 and a consolidated balance sheet as at each date for the Closed Group is set out below. Consolidated Closed Group Income Statement 2021 US$m 2020 US$m Continuing operations Sales revenue 1,244.4 1,035.3 Cost of sales (652.0) (690.1) Gross profit 592.4 345.2 Dividend income 667.3 1,405.0 Interest income 2.2 1.3 Research and development expenses (139.4) (141.8) Selling and marketing expenses (60.2) (44.9) General and administration expenses (110.7) (95.5) Finance costs (32.9) (27.3) Sundry expenses (116.8) (57.0) Profit before income tax expense 801.9 1,385.0 Income tax (expense)/credit (51.8) 20.3 Profit for the year 750.1 1,405.3 CSL Limited Annual Report 2020/21 144 Notes to the Financial Statements