CSL Ltd Annual Report 2021

United Nations sustainable development goals 1 Constant Currency removes the impact of exchange rate movements to facilitate comparability of operational performance for the Group. This is done in three parts: a) by converting the current year net profit of entities in the group that have reporting currencies other than US Dollars, at the rates that were applicable to the prior comparable period (Translation Currency Effect); b) by restating material transactions booked by the group that are impacted by exchange rate movements at the rate that would have applied to the transaction if it had occurred in the prior comparable period (Transaction Currency Effect); and c) by adjusting for current year foreign currency gains and losses (Foreign Currency Effect). The sum of translation currency effect, transaction currency effect and foreign currency effect is the amount by which reported net profit is adjusted to calculate the result at constant currency. CSL continues to be guided by the General Assembly of the United Nations (UN) 2030 Agenda for Sustainable Development, which includes 17 Sustainable Development Goals (SDGs). The goals seek to address global challenges, including those related to health and wellbeing, education, poverty, inequality, climate change, peace and justice. For CSL, these goals have guided the development of our sustainability strategy, with seven being identified as goals where performance against our 2030 Strategy, including our sustainability strategy, can positively impact their achievement. More on CSL.com More on CSL.com More on CSL.com CSL’s identified UN Sustainable Development Goals For mor e informat ion on how CSL supports the UN Sustainable Development Goals visit CSL.com (Our Company > Corporate Responsibility > Approach). Reported results CSL announced a net profit after tax of US$2.375 billion for the 12 months ending 30 June 2021, up 13% when compared to the prior comparable period. Net profit after tax at constant currency 1 grew 10%. Sales revenue was US$9,980 million, up 10% 1 when compared to the prior comparable period. Expense performance • Research and development expenses were US$1,001 million, up 5% 1 when compared to the prior comparable period • Selling and marketing expenses were US$980 million, an increase of 7% 1 • General and administrative expenses were US$732 million, an increase of 5% 1 • Depreciation, amortisation and impairment expense was US$590 million, up 38% 1 • Net finance costs were US$167 million, up 7% 1 Financial position • Capital expenditure (including license agreements) was US$1,667 million, up 22% when compared to the prior comparable period. • Cashflow from operations was US$3,622 million, up 46% • CSL’s balance sheet is in a strong position with net assets of US$8,381 million • Current assets increased by 15% to US$7,390 million • Non-current assets increased by 17% to US$10,767 million • Current liabilities increased by 45% to US$3,104 million • Non-current liabilities decreased by 4% to $6,672 million Our Operating Review CSL Behring Total revenue was US$8,574 million, up 6% 1 when compared to the prior comparable period. Immunoglobulin (Ig) product sales of US$4,238 million, up 3% 1 led by HIZENTRA ® (Immune Globulin Subcutaneous (Human), 20% Liquid). HIZENTRA ® sales grew strongly, up 15% 1 , driven by the increased preference and patient benefits of home administration and the continued uptake for the treatment of chronic inflammatory demyelinating polyneuropathy, a debilitating neurological disorder. The subcutaneous segment continues to be the fastest growing area of the Ig market in which HIZENTRA ® continues to build its market leadership position. HIZENTRA ® is the only subcutaneous product approved for CIDP in the US. PRIVIGEN ® (Immune Globulin Intravenous (Human), 10% Liquid) declined modestly, impacted by supply constraints and an accelerated patient shift to HIZENTRA ® . Underlying demand for Ig continues to be strong due to significant patient needs in core indications – namely primary immune deficiency, secondary immune deficiency and CIDP. Specialty product sales of US$1,770 million, up 2% 1 led by demand for HAEGARDA ® and KCENTRA ® . HAEGARDA ® , a therapy for patients with hereditary angioedema, grew strongly by 14% 1 , driven by continued patient growth and a shift from on-demand to prophylaxis treatment. New launches in Europe, Australia and Canada have contributed to the rise in patient numbers. CSL Limited Annual Report 2020/21 18 4 Our Strategy and Performance