CSL Annual Report 2023

Notes to the Financial Statements For the Year Ended 30 June 2023 Contents About this Report 116 Notes to the financial statements: 116 Our Current Performance 118 Note 1: Segment Information 118 Note 2: Business Combinations 121 Note 3: Revenue and Expenses 124 Note 4: Tax 127 Note 5: Inventories 129 Note 6: People Costs 130 Our Future 133 Note 7: Research and Development 133 Note 8: Intangible Assets 133 Note 9: Property, Plant and Equipment 136 Returns, Risk & Capital Management 138 Note 10: Shareholder Returns 138 Note 11: Financial Risk Management 139 Note 12: Equity and Reserves 145 Note 13: Commitments and Contingencies 147 Efficiency of Operation 148 Note 14: Cash and Cash Equivalents 148 Note 15: Receivables, Contract Assets and Payables 148 Note 16: Provisions 150 Other Notes 151 Note 17: Related Party Transactions 151 Note 18: Detailed Information – People Costs 152 Note 19: Detailed Information – Shareholder Returns 155 Note 20: Auditor Remuneration 156 Note 21: Deed of Cross Guarantee 157 Note 22: Parent Entity Information 159 Note 23: Non-Controlling Interests 160 Note 24: Subsequent Events 161 Note 25: Amendments to Accounting Standards and Interpretations 161 About this Report Notes to the financial statements: Corporate information CSL Limited (CSL) is a for-profit company incorporated and domiciled in Australia and limited by shares publicly traded on the Australian Securities Exchange. This financial report covers the financial statements for the consolidated entity consisting of CSL and its subsidiaries (together referred to as the Group). The financial report was authorised for issue in accordance with a resolution of directors on 15 August 2023. A description of the nature of the Group’s operations and its principal activities is included in the directors’ report. a. Basis of preparation This general purpose financial report has been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, International Financial Reporting Standards (IFRS) and the Corporations Act 2001. It presents information on a historical cost basis, except for certain financial instruments, which have been measured at fair value. Amounts have been rounded off to the nearest million dollars. The report is presented in US dollars, because this currency is the pharmaceutical industry standard currency for reporting purposes. It is the predominant currency of the Group’s worldwide sales and operating expenses. b. Principles of consolidation The consolidated financial statements comprise the financial statements of CSL and its subsidiaries as at 30 June 2023. CSL has control of its subsidiaries when it is exposed to, and has the rights to, variable returns from its involvement with those entities and when it has the ability to affect those returns. A list of significant controlled entities (subsidiaries) at year end is contained in Note 17. Non-controlling interests in the financial results and equity of subsidiaries are shown separately in the consolidated statement of comprehensive income, statement of changes in equity and balance sheet respectively. Further details about the Group’s non-controlling interest is contained in Note 23. The financial results of the subsidiaries are prepared using consistent accounting policies and for the same reporting period as the parent company. In preparing the consolidated financial statements, all intercompany balances and transactions have been eliminated in full. The Group has formed a trust to administer the Group’s employee share plan. This trust is consolidated as it is controlled by the Group. CSL Limited Annual Report 2022/23 116

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