Notes to the Financial Statements Note 5: Inventories 2026 2025 US$m US$m Raw materials 1,550 1,669 Work in progress 2,715 2,413 Finished goods 2,362 2,384 Total inventories 6,627 6,466 Raw Materials Raw materials comprise collected and purchased plasma, chemicals, filters and other inputs to production that will be further processed into saleable products but have yet to be allocated to manufacturing. Work in Progress Work in progress comprises all inventory items that are currently in use in manufacturing and intermediate products such as pastes generated from the initial stages of the plasma production process. Finished Goods Finished goods comprise material that is available for sale and has passed all quality control tests. Inventories generally have expiry dates and the Group provides for product that is short-dated. Expiry dates for raw material are no longer relevant once the materials are used in production. The relevant expiry date at this point then becomes that of the resultant intermediate or finished good. Inventories are carried at the lower of cost or net realisable value. Cost includes direct material and labour and an appropriate proportion of variable and fixed overheads. Fixed overheads are allocated on the basis of normal operating capacity. Net realisable value is the estimated revenue that can be earned from the sale of a product less the estimated costs of both completion and selling. The Group assesses net realisable value of plasma derived products on a basket of products basis given their joint product nature. Key Judgements and Estimates Various factors affect the assessment of recoverability of the carrying value of inventory, including regulatory approvals and future demand for the Group’s products. These factors are taken into account in determining the appropriate level of provisioning for inventory. Note 6: People Costs a. Employee Benefits Employee benefits comprise salaries and wages (including annual leave, long-service leave and termination benefits), defined benefit and defined contribution plans, and share-based payment incentive awards. People Cost 2026 – US$4,052m People Cost 2025 – US$3,855m Salaries and wages $3,750m Defined benefit plan expense $63m Defined contribution plan expense $67m Equity settled share-based payments expense (LTI) $172m Salaries and wages $3,581m Defined benefit plan expense $63m Defined contribution plan expense $62m Equity settled share-based payments expense (LTI) $149m 106 106 Financial Report
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