5.2 LTI Award Outcomes in 2024 and 2025 As disclosed in the 2023 Remuneration Report, the Board made the decision to maintain ROIC LTI performance targets for on‑foot unvested LTI awards granted prior to the acquisition of Vifor Pharma. The Board noted it would take into account CSL Vifor’s performance when considering LTI vesting outcomes. The awards vesting in the financial year 2024 (performance period to 30 June 2023/vesting 1 September 2023) and financial year 2025 (performance period to 30 June 2024/vesting 1 September 2024) are the last awards granted prior to the acquisition of Vifor Pharma, where this decision is applicable. All awards granted since November 2022 and vesting in the future include CSL Vifor in target setting. This year, to enhance transparency, disclosures have been expanded to include the equity award testing outcomes across 2024 and 2025 financial years. Awards tested in 2024 For the awards that vested on 1 September 2023 (performance period to 30 June 2023), the Board considered performance over the seven year performance period, noting that CSL Vifor was only part of the CSL Group for 11 of the 84 months. The Board determined to make no adjustment for the relatively immaterial time period CSL Vifor was part of the CSL Group, noting that integration activities were underway and it was too early to make an assessment on the CSL Vifor contribution. Table 6: LTI Awards tested in 2024 Grant Date Security Tranche Performance Measure Performance Period Performance Level Performance Outcome Vesting Outcome16 1 September 2019 PSU 4 ROIC 1 July 2016 – 30 June 2023 Threshold – 22% Target – 25% 21.8% 0% 1 September 2020 PSU 3 ROIC 1 July 2016 – 30 June 2023 Threshold – 20% Target – 23% 21.8% 80% Awards tested in 2025 In 2024, after careful consideration of the shareholder experience and CSL Vifor’s performance against a range of factors since the acquisition, the Board determined that for five executives, including the former CEO, current CEO and Chief Financial Officer, a 20% reduction will be applied to LTI awards vesting 1 September 2024 (performance period to 30 June 2024). The Board believes this adjustment is appropriate and fair and achieves appropriate accountability. Table 7: LTI Awards tested in 2025 Grant Date Security Tranche Performance Measure Performance Period Performance Level Performance Outcome Vesting Outcome17 Board Discretion Adjusted Vesting Outcome17 1 September 2020 PSU 4 ROIC 1 July 2017 – 30 June 2024 Threshold – 20% Target – 23% 20.7% 61.67% 49.34% 1 September 2021 PSU 1 ROIC 1 July 2017 – 30 June 2024 Threshold – 20% Target – 21.4% 20.7% 75% 60% 1 September 2021 PSU 2 EPSg 1 July 2021 – 30 June 2024 Threshold – 5% Target – 8.3% 3.5% 0% 0% The Board and Management team continues to have confidence in CSL Vifor, and whilst near term growth prospects are more subdued than originally envisaged, CSL is confident that it has the right plans in place to deliver growth from CSL Vifor over the long-term. It is a good business with the right capabilities, competencies and adjacencies to CSL. 16. The remaining portion of each tranche has lapsed – there is no retest. 17. The remaining portion of each tranche will lapse – there is no retest. 89
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