Note 9: Property, Plant and Equipment Land Buildings Leasehold improvements Plant and Equipment Right-of-use assets Capital work in progress Total US$m US$m US$m US$m US$m US$m US$m 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Cost 65 65 2,858 2,554 666 687 6,567 5,659 2,107 2,199 2,212 2,975 14,475 14,139 Accumulated depreciation and impairment — — (1,447) (425) (296) (263) (3,665) (2,919) (854) (735) — — (6,262) (4,342) Net carrying amount 65 65 1,411 2,129 370 424 2,902 2,740 1,253 1,464 2,212 2,975 8,213 9,797 Net carrying amount at beginning of year 65 65 2,129 2,017 424 446 2,740 2,639 1,464 1,510 2,975 2,981 9,797 9,658 Additions — — — — — — — 23 34 62 651 624 685 709 Transfers — — 189 183 15 14 872 433 — — (1,076) (623) — 7 Disposals — — — — (27) (2) (31) (24) (94) (5) — — (152) (31) Depreciation for the year (Note 2) — — (71) (70) (38) (35) (349) (336) (97) (108) — — (555) (549) Impairment for the year (Note 3) — — (847) — (4) — (357) — (58) — (398) — (1,664) — Currency translation differences — — 11 (1) — 1 27 5 4 5 60 (7) 102 3 Net carrying amount at end of year 65 65 1,411 2,129 370 424 2,902 2,740 1,253 1,464 2,212 2,975 8,213 9,797 Property, plant and equipment Land, buildings, capital work in progress and plant and equipment assets are recorded at historical cost less, where applicable, depreciation. Right-of-use assets are measured at cost, less accumulated depreciation, impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities and restoration obligations recognised less any lease incentives received and initial direct costs. Depreciation is recognised on a systematic basis over the estimated useful life of the asset, generally on a straight-line basis. Buildings 5 – 50 years Plant and equipment 3 – 40 years Leaseholds 3 – 25 years Right-of-use assets: – Plasma centres 5 – 40 years – Offices, warehouses 2 – 39 years – Land 40 – 101 years The unit-of-production depreciation method, based on the expected use or output as the asset is being used, may be applied during the early stages of operation of manufacturing facilities, as a substantial period of time may be required to ramp up the production and operate at intended capacity. This method is to be applied consistently from period to period unless there is a change in the expected pattern of consumption of those future economic benefits. Assets’ residual values and useful lives are reviewed and adjusted if appropriate at each reporting date. This review includes consideration of physical climate risks where these may reasonably be expected to affect asset condition or use. Items of property, plant and equipment are derecognised upon disposal or when no further economic benefits are expected from their use or disposal. Impairment testing for property, plant and equipment is performed where indicators of impairment are identified. Climate-related risks are considered in assessing impairment indicators and recoverable amounts where they can be reliably estimated. Refer to Note 3 for details of impairment charges recognised during the year ended 30 June 2026 and the related key judgements and assumptions. Leasehold improvements The cost of improvements to leasehold properties is amortised over the unexpired period of the lease or the estimated useful life of the improvement, whichever is the shorter. Right-of-use assets The Group principally has leases for plasma centres, office buildings, land, manufacturing facilities and warehouses. The recognised assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Refer to Note 11(d) for the Group's corresponding lease liabilities. Other arrangements CSL has leased a recombinant protein facility in Lengnau to a third party under a 20-year operating lease, with two five-year extension options. The leased property, plant and equipment continue to be recognised on the balance sheet. Future operating lease payments receivable, excluding extension options and variable lease payments, totalled $395m on an undiscounted basis as at 30 June 2026 (2025: $415m). 111 Notes to the Financial Statements 111 CSL Limited Annual Report 2025/26
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