CSL Limited Annual Report 2022/23 3 Despite there being no changes to CSL’s non-executive Board members this year, the composition of the Board is an ever-present priority. We aim to have the right skills and expertise to navigate our industry and the broader macro environment. We believe we have a strong and complementary dynamic that will continue our long record of exceptional governance. Bruce Brook will retire as a Director at this year’s Annual General Meeting. I’d like to thank Bruce for his service over the last 12 years. His guidance has been of immense value to the Board and our shareholders. Alison Watkins will become Chair of the Audit and Risk Management Committee following Bruce’s retirement. Our Evolving Footprint As we grow and our operations become more complex, your Board continues to prioritise meeting our employees and spending time at our facilities around the world. This year we visited our European operations, including our manufacturing plants and research and development facilities in Bern (Switzerland), St Gallen (Switzerland) and Marburg (Germany). We also spent a very productive week with our Australian teams and inspected our Australian facilities. Underpinned by the confidence we have in the long-term prospects for our company, we have invested a significant amount of capital in our Australian operations over the past few years. This includes the recently completed Plasma Fractionation Facility in Broadmeadows, and our new US$530-million state-of-the-art cell-based vaccine manufacturing facility in Tullamarine, which will be operational in 2026. These investments will enhance our capacity to meet patient needs into the future. We also officially moved into our new Global Headquarters and Centre for R&D in Melbourne in March. Located in the heart of the city’s biomedical precinct, the building represents the progress CSL has made during its journey from a small, local company to the global biotech leader we are today. This is a significant milestone not just for CSL, but for Australia, and I look forward to the scientific and commercial developments that will no doubt come from collaboration in the precinct. Environment and Sustainability In August last year, we took the next step in our sustainability strategy by announcing CSL Group carbon emission reduction targets for the first time. The specific targets build on our previous work by serving as a tangible, transparent roadmap to decarbonising CSL’s operations by reducing the company’s direct and indirect emissions footprint. You can read more in the Environment section of this report, but I am pleased to see the progress we’ve already made. In addition to reducing carbon emissions, CSL is prioritising integrating environmental considerations into key business decisions; minimising end-to-end production of waste through removal, reduction and recycling; and reducing waste in our supply chain. This year, our teams will also be focusing on advancing the social pillar of our sustainability strategy. We will continue to be transparent with our stakeholders, and will share more information as our efforts progress. A Bright Future I can assure you that CSL will remain true to the formula that has largely driven our success to date. There is so much potential to make a difference to people’s lives – so many problems to solve and so much science to translate. CSL has been very deliberate about targeting areas where we know we can develop a competitive advantage. This will not change; we will remain dedicated to our strategy. But this should not be seen as a conflict with our growth aspirations. The two goals are very much complementary: our strategy is built for sustained, long-term growth. Our confidence about this is built around a few key factors. Firstly, the underlying demand for our products will remain robust. It is an unfortunate reality that patients will continue to be diagnosed with rare and serious diseases. We have a high-quality range of safe and effective products that help these patients, and will continue to do so well into the future. Secondly, our research and development (R&D) pipeline is constantly maintained and evaluated. The nature of our business means we have to think decades ahead. We have certainly done this, and a number of key prospective treatments are nearing the commercialisation phase. Importantly, we also have key early-stage options to take their place. And finally, as we grow we will benefit from the capital we have reinvested back into the business. Our global network is built for efficient, reliable supply that we aim to deliver with some of the best margins in the sector. We will continue to drive value across the organisation. The Board and I believe that CSL is in a strong position and we look forward to sharing our progress with shareholders. Brian McNamee AO Chair More on CSL.com (Investors > Financial Results and Information)
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