6. Executive Key Management Personnel Outcomes in 2022 6.1 CSL and Executive KMP Performance In 2022, CSL has demonstrated resilience in its results, delivering solid performance outcomes. As expected, NPAT was down from the prior year, reflecting lower plasma collection in 2021. However, the outcome was in line with expectations and at the top end of market guidance. We continue to progress our research and development pipeline and have grown investment in this area over the year ensuring innovation for a sustainable business. Revenue increased 3.5% at constant currency. CFO was also down on prior year due to higher plasma costs and strong plasma collection during 2022. CFO did however exceed target through strong underlying cash earnings and good working capital management. The NPAT at 30 June 2022 resulted in performance below target and our CFO achieved an above target performance outcome. The Board reviewed the quality of earnings, including the impact of COVID-19 across supply and inventory, and risk management outcomes across the year. As the Vifor Pharma AG (Vifor) acquisition was not contemplated at the time of setting the targets at the start of the financial year, the Board used its discretion to adjust the outcomes of both NPAT and CFO associated with the Vifor acquisition net costs. The CFO outcome was also adjusted to remove the impact of the favourable cash inflow resulting from the Treasury hedging activity associated with the Vifor acquisition. The Leading and Managing Modifier was not used in 2022. The following performance outcomes were achieved resulting in an average overall STI payment outcome of 125% of target level opportunity across the Executive KMP (see Table 3). The minimum STI earned as a percentage of target level opportunity was 105% and the maximumwas 140% – the latter was 70% of the maximum STI outcome that could be achieved. Additional objectives, which were also integral to the achievement of individual performance, were considered by the Board when assessing Executive KMP performance. However, these remain confidential for commercial reasons. Table 2: Achievements in 2022 Measure and Commentary Threshold 50% Target 100% Maximum 200% Financials • NPAT • CFO People • Completion of the organisational transformation across the Enabling Functions providing a sustainable base and improved scalability • Transformation of an integrated global R&D business • Strong progress against the 2022 diversity, inclusion and equity targets furthering progress to attainment of FY25 and FY30 goals • Recognised by Forbes magazine as one of America’s best employers • Recognised as one of Australia and New Zealand’s Best Places to Work by The Australian Financial Review • Launch of the CSL Promising Futures scholarship program Innovation • Agreement to acquire Vifor – acquisition completed in August 2022 • 24 product registrations or new indications for serious disease across the CSL Group portfolio • Garadacimab Phase III study enrolment completed for HAE • CSL112 (ApoA-1) Phase III study (AEGIS-II) progressing with >80% enrolment achieved and 3rd interim analysis completed • Pre-clinical assessment of next generation, self-amplifying mRNA vaccine in season and pandemic influenza • FLUCELVAX® Quadrivalent approvals – US and Argentina 6m+ indication, Australia 2y+ extension and New Zealand 9y+ extension • FLUAD® Quadrivalent Phase III study in adults 50-64y enrolment completed • EtranaDez (Haem B gene therapy) primary end point achieved in HOPE-B study with MAA (EU) and BLA (US) submitted • Completed manufacturing of the AstraZeneca COVID-19 vaccine in Australia Focus • Collaboration with StartX as an Innovation Partner to support entrepreneurs in the StartX community as they commercialise innovative technologies and develop novel therapeutics • Collaboration with WEHI and the University of Melbourne to create a biotech start-up incubator in CSL’s new global headquarters in Melbourne • Lengnau mechanical completion and transition to Thermo Fisher Scientific management CSL Limited Annual Report 2021/22 81
RkJQdWJsaXNoZXIy MjE2NDg3