CSL Ltd. — Interim / Quarterly Report 2003

Feb 17, 2003

18 February 2003

Mr James Gerraty Manager Listings Australian Stock Exchange Limited 530 Collins Street MELBOURNE VIC 3001

Dear Mr Gerraty

HALF YEARLY REPORT - ACCOUNTS AND MEDIA RELEASE

For the purposes of dual lodgement with the ASX and ASIC, following are CSL's Half Yearly Report (Appendix 4B), Statements of Financial Performance and Position, Statement of Cash Flows and Notes to the Financial Statements as at 31 December, 2002, Directors' Report and Declaration, Independent Review Report and a Media Release announcing the results.

Yours sincerely

Peter Turvey COMPANY SECRETARY

Enc:

Rules 4.1, 4.3

Appendix 4B

Preliminary final report

Introduced 30/6/2002.

Name of entity

CSL LIMITED
Half yearly ABN or equivalent company Preliminary reference final (tick) (tick)	Half year/financial year ended ('current period')
99 051 588 348	Half year ended 31 December 2002
For announcement to the market Extracts from this report for announcement to the market (see note 1).	\$A'000
Revenues from ordinary activities (item 1.1)	up/down 7.4% 639,852 to
Profit (loss) from ordinary activities after tax attributable to members (item 1.22)	up/down 30.3% 40,100 to.
Profit (loss) from extraordinary items after tax attributable to members (item 2.5(d))	gain (loss) of NIL
Net profit (loss) for the period attributable to members (item 1.11)	up/down 30.3% to. 40,100
Dividends (distributions)	Amount per security Franked amount per security
Final dividend (Preliminary final report only - item 15.4) Interim dividend (Half yearly report only - item 15.6)	12 c 12 c
Previous corresponding period (Preliminary final report - item 15.5; half yearly report - item 15.7)	12 t 12c
*Record date for determining entitlements to the dividend, (in the case of a trust, distribution) (see item 15.2)	4 April 2003
Brief explanation of any of the figures reported above (see Note 1) and short details of any bonus or cash issue or other item(s) of importance not previously released to the market:
NONE

If this is a half-yearly report it is to be read in conjunction with the most recent annual financial report.

⁺ See chapter 19 for defined terms.

		Current period - \$A'000	Previous corresponding period - \$A'000
1.1	Revenues from ordinary activities (see items 1.23 - 1.25	639,852	595,591
1.2	Expenses from ordinary activities (see items 1.26 & 1.27	(566, 955)	(503, 610)
1.3	Borrowing costs	(16, 114)	(18, 578)
1.4	Share of net profits (losses) of associates and joint venture entities (see item 16.7)
1.5	Profit (loss) from ordinary activities before tax	56,783	73,403
1.6	Income tax on ordinary activities (see note 4)	(16, 683)	(15,862)
	(refer Attachment 1)
1.7	Profit (loss) from ordinary activities after tax	40,100	57,541
1.8	Profit (loss) from extraordinary items after tax (see item (2.5)
1.9	Net profit (loss)	40,100	57,541
1.10	Net profit (loss) attributable to outside + equity interests
1.11	Net profit (loss) for the period attributable to members	40,100	57,541
	Non-owner transaction changes in equity
1.12	Increase (decrease) in revaluation reserves
1.13	Net exchange differences recognised in equity	38,662	26,586
1.14	Other revenue, expense and initial adjustments
1.15	recognised directly in equity (attach details) Initial adjustments from UIG transitional provisions
1.16	Total transactions and adjustments recognised directly in equity (items 1.12 to 1.15)
1.17	Total changes in equity not resulting from
	transactions with owners as owners	78,762	84,127

Condensed consolidated statement of financial performance

Earnings per security (EPS)	Current period	Previous corresponding Period
1.18 Basic EPS	25.3 Cents	36.4 Cents
Diluted EPS 1.19	25.1 Cents	35.9 Cents

Profit (loss) from ordinary activities attributable to members

		Current period - \$A'000	Previous corresponding period - \$A'000
1.20	Profit (loss) from ordinary activities after tax (item 1.7)	40,100	57,541
1.21	Less (plus) outside + equity interests
1.22	Profit (loss) from ordinary activities after tax, attributable to members	40,100	57,541

⁺ See chapter 19 for defined terms.

Notes to the condensed consolidated statement of financial performance

Revenue and expenses from ordinary activities

(See note 15)

		Current period - \$A'000	Previous corresponding period - \$A'000
1.23	Revenue from sales or services	633,438	589,805
1.24	Interest revenue	307	3,412
1.25	Other relevant revenue
	Proceeds from sale of non-current assets	3,625	364
	Rent	364	530
	Royalties	41	76
	Collaborative revenue	987
	Other	1,090	1,404
	TOTAL REVENUE	639,852	595,591
1.26	Details of relevant expenses
	Cost of sales	383,054	336,598
	Research and development expenses	50,149	49,003
	Selling and marketing expenses	58,003	38,737
	General and administration expenses	44,946	51,689
	Other expenses	30,803	27,583
	TOTAL EXPENSES	566,955	503,610
1.27	Depreciation and amortisation excluding amortisation of intangibles (see item 2.3)	33,089	30,971
	Capitalised outlays
1.28	Interest costs capitalised in asset values
1.29	Outlays capitalised in intangibles (unless arising
	from an +acquisition of a business)

Consolidated retained profits

		Current period - \$A'000	Previous corresponding period - \$A'000
1.30	Retained profits (accumulated losses) at the beginning of the financial period	279,206	205,148
1.31	Net profit (loss) attributable to members (item 1.11)	40,100	57,541
1.32	Net transfers from (to) reserves
	(from General Reserves)	۰
1.33	Net effect of changes in accounting policies	34,864
1.34	Dividends and other equity distributions paid or payable	(34, 924)	(20, 504)
1.35	Retained profits (accumulated losses) at end of financial period	319,246	242,185

⁺ See chapter 19 for defined terms.

Intangible and extraordinary items

			Consolidated - current period
		Before tax \$A'000	Related tax \$A'000	Related outside + equity interests \$A'000	Amount (after tax) attributable to members \$A'000
		(a)	(b)	(c)	(d)
2.1 2.2	Amortisation of goodwill Amortisation of other intangibles	26,102 262	(4, 722) (32)		21,380 230
2.3	Total amortisation of intangibles	26,364	(4,754)		21,610
2.4	Extraordinary items (details)
2.5	Total extraordinary items

Comparison of half year profits

(Preliminary final report only)

• $3.1$ Consolidated profit (loss) from ordinary activities after tax attributable to members reported for the 1st half year (item 1.22 in the half yearly report)
• $3.2$ Consolidated profit (loss) from ordinary activities after tax attributable to members for the 2nd half year

Current year - \$A'000	Previous year - \$A'000

⁺ See chapter 19 for defined terms.

	Condensed consolidated statement of financial position	At end of current period \$A'000	As shown in last annual report \$A'000	As in last half yearly report \$A'000
	Current assets
4.1	Cash	95,933	106,215	36,338
4.2	Receivables	167,297	190,446	198,301
4.3	Investments
4.4	Inventories	537,422	436,109	448,170
4.5	Tax assets
4.6	Other - Prepayments	10,038	5,930	8,431
4.7	Total current assets	810,690	738,700	691,240
	Non-current assets
4.8	Receivables	5,745	2,546	2,846
4.9	Investments (equity accounted)
4.10 4.11	Other investments Inventories	5,646	2,036	2,770
4.12	Exploration and evaluation expenditure capitalised (see para .71 of AASB 1022)
4.13	Development properties ( + mining entities)
4.14	Other property, plant and equipment (net)	588,705	562,638	552,369
4.15	Intangibles (net)	1,047,906	989,934	966,164
4.16	Tax assets	16,080	16,268	16,734
4.17	Other (provide details if material)
4.18	Total non-current assets	1,664,082	1,573,422	1,540,883
4.19	Total assets	2,474,772	2,312,122	2,232,123
	Current liabilities
4.20	Payables	190,771	207,075	185,285
4.21	Interest bearing liabilities	20,126	85,594	73,612
4.22	Tax liabilities	13,461	10,092	10,780
4.23	Provisions excl. tax liabilities	67,149	104,049	103,422
4.24	Other (provide details if material)
4.25	Total current liabilities	291,507	406,810	373,099
	Non-current liabilities
4.26	Payables	29,188	26,949
4.27	Interest bearing liabilities	742,179	555,211	544,169
4.28 4.29	Tax liabilities Provisions exc. tax liabilities	22,612 27,819	22,739 27,282	19,570 29,926
4.30	Other (provide details if material)
4.31	Total non-current liabilities	821,798	632,181	593,665
4.32	Total liabilities	1,113,305	1,038,991	966,764
4.33	Net assets	1,361,467	1,273,131	1,265,359

$+$ See chapter 19 for defined terms.

Condensed consolidated statement of financial position continued

		At end of current	As shown in last	As in last half
		period \$A'000	annual report	yearly report
			\$A'000	SA'000
	Equity
4.34	Capital/contributed equity (refer Attachment 1)	933,488	923,856	923,235
4.35	Reserves	108,733	70,069	99,939
4.36	Retained profits (accumulated losses)	319,246	279,206	242,185
4.37	Equity attributable to members of the	1,361,467	1,273,131	1,265,359
	parent entity
4.38	Outside + equity interests in controlled
	entities
4.39	Total equity	1,361,467	1,273,131	1,265,359
4.40	Preference capital included as part of 4.37

Notes to the condensed consolidated statement of financial position

Exploration and evaluation expenditure capitalised

(To be completed only by entities with mining interests if amounts are material. Include all expenditure incurred.)

		Current period \$A'000	Previous corresponding period - \$A'000
5.1	Opening balance	N/A	N/A
5.2	Expenditure incurred during current period
5.3	Expenditure written off during current period
5.4	Acquisitions, disposals, revaluation increments, etc.
5.5	Expenditure transferred to Development Properties
5.6	Closing balance as shown in the consolidated balance sheet (item 4.12)	N/A	N/A

Development properties

(To be completed only by entities with mining interests if amounts are material)

• $6.1$ Opening balance
• $6.2$ Expenditure incurred during current period
• Expenditure transferred from exploration and $6.3$ evaluation
• $6.4$ Expenditure written off during current period
• 6.5 Acquisitions, disposals, revaluation increments, etc.
• $6.6$ Expenditure transferred to mine properties
• Closing balance as shown in the consolidated $6.7$ balance sheet (item 4.13)

Current period \$A'000	Previous corresponding period - \$A'000
N/A	N/A
N/A	N/A

⁺ See chapter 19 for defined terms.

		Current period \$A'000	Previous corresponding
			period - \$A'000
	Cash flows related to operating activities
7.1	Receipts from customers	661,933	553,080
7.2	Payments to suppliers and employees	(593, 765)	(520, 422)
7.3	Dividends received from associates
7.4	Other dividends received
7.5	Interest and other items of similar nature received	356	3,458
7.6	Interest and other costs of finance paid	(30, 414)	(30, 042)
7.7	Income taxes paid	(13, 253)	(8, 333)
7.8	Other (provide details if material)
7.9	Net operating cash flows	24,857	(2, 259)
	Cash flows related to investing activities
7.10	Payment for purchases of property, plant and equipment	(47, 558)	(36, 889)
7.11	Proceeds from sale of property, plant and equipment	3,625	364
7.12	Payment for purchases of equity investments	(396)	(323)
7.13	Proceeds from sale of equity investments
7.14	Loans to other entities
7.15	Loans repaid by other entities
7.16(a)	Other - payment for restructuring of business	(4, 101)	(1,480)
7.16(b)	Other - payment for intellectual property	(37,037)
7.16(c)	Other - payment for purchasing of business		(309, 337)
7.17	Net investing cash flows	(85, 467)	(347, 665)
	Cash flows related to financing activities
7.18	Proceeds from issues of + securities (shares, options, etc.	6,435	326,828
7.19	Proceeds from borrowings	491,197	9,740
7.20	Repayment of borrowings	(403,060)	(42,656)
7.21	Dividends paid	(34, 924)	(26, 937)
7.22	Other (provide details if material)
7.23	Net financing cash flows	59,648	266,975
7.24	Net increase (decrease) in cash held	(962)	(82, 949)
7.25	Cash at beginning of period (see Reconciliation of cash)	89,355	109,489
7.26	Exchange rate adjustments to item 7.25.	1,288	2,259
7.27	Cash at end of period (see Reconciliation of cash)	89,681	28,799

Condensed consolidated statement of cash flows

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows are as follows. (If an amount is quantified, show comparative amount.)

NONE

⁺ See chapter 19 for defined terms.

Reconciliation of cash

	Reconciliation of cash at the end of the period (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current period \$A'000	Previous corresponding period - \$A'000
8.1	Cash on hand and at bank	95,482	20,338
8.2	Deposits at call	451	16,000
8.3	Bank overdraft	(6,252)	(7, 539)
8.4	Other (provide details)
8.5	Total cash at end of period (item 7.27)	89,681	28,799

Other notes to the condensed financial statements

Ratios		Current period	Previous corresponding Period
9.1	Profit before tax / revenue Consolidated profit (loss) from ordinary activities before tax (item 1.5) as a percentage of revenue (item 1.1)	8.9%	12.3%
9.2	Profit after tax / +equity interests Consolidated net profit (loss) from ordinary activities after tax attributable to members (item 1.11) as a percentage of equity (similarly attributable) at the end of the period (item 4.37)	29%	4.5%

Earnings per security (EPS)

$10.$ Details of basic and diluted EPS reported separately in accordance with paragraph 9 and 18 of AASB 1027: Earnings Per Share is as follows.

		Current period \$A'000	Previous corresponding period - \$A'000
(a)	Basic EPS	$25.3$ cents	36.4 cents
(b)	Weighted average number of ordinary shares used in the calculation of the Basic EPS	158,770,085	158,218,335
(c)	Diluted EPS	25.1 cents	35.9 cents
(d)	Weighted average number of ordinary shares used in the calculation of the Diluted EPS	159,573,118	160,101,999

NTA backing (see note 7)	Current period	Previous corresponding Period
Net tangible asset backing per + ordinary security	\$1.97	\$1.91

⁺ See chapter 19 for defined terms.

Discontinuing Operations

(Entities must report a description of any significant activities or events relating to discontinuing operations in accordance with paragraph 7.5 (g) of AASB 1029: Interim Financial Reporting, or, the details of discontinuing operations they have disclosed in their accounts in accordance with AASB 1042: Discontinuing Operations (see note 17).)

12.1	Discontinuing Operations
		NONE

Control gained over entities having material effect

13.1 Name of entity (or group of entities)

NONE

• 13.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) since the date in the current period on which control was +acquired
• 13.3 Date from which such profit has been calculated
• 13.4 Profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the whole of the previous corresponding period

\$A'000
N/A

Loss of control of entities having material effect

$14.1$ Name of entity (or group of entities)

NONE

• $14.2$ Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the current period to the date of loss of control
• $14.3$ Date to which the profit (loss) in item 14.2 has been calculated
• $14.4$ Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) while controlled during the whole of the previous corresponding period
• 14.5 Contribution to consolidated profit (loss) from ordinary activities and extraordinary items from sale of interest leading to loss of control

\$
\$
\$

⁺ See chapter 19 for defined terms.

Dividends (in the case of a trust, distributions)

• $15.1$ Date the dividend (distribution) is payable
• 15.2 ⁺Record date to determine entitlements to the dividend (distribution) (ie, on the basis of proper instruments of transfer received by 5.00 pm if ⁺securities are not ⁺CHESS approved, or security holding balances established by 5.00 pm or such later time permitted by SCH Business Rules if ⁺securities are ⁺CHESS approved)
• 15.3 If it is a final dividend, has it been declared? (Preliminary final report only)

Amount per security

			Amount per security	Franked amount per security at 30% tax (see note 4)	Amount per security of foreign source dividend
	(Preliminary final report only)
15.4	Final dividend:	Current year
15.5		Previous year	¢	¢
	(Half yearly and preliminary final reports)
15.6	Interim dividend:	Current year	12¢	12 0	NIL
15.7		Previous year	12¢	12 c	ΝIL

Total dividend (distribution) per security (interim plus final)

(Preliminary final report only)

15.8 ⁺Ordinary securities

Current year	Previous year

15.9 Preference ⁺securities

Half yearly report - interim dividend (distribution) on all securities or Preliminary final report - final dividend (distribution) on all securities

• 15.10 +Ordinary securities (each class separately)
• 15.11 Preference +securities (each class separately)
• 15.12 Other equity instruments (each class separately)
• 15.13 Total

Current period \$A'000	Previous corresponding period - \$A'000
19,094	19,001
19.094	19.00

15 April 2003

4 April 2003

⁺ See chapter 19 for defined terms.

The ⁺dividend or distribution plans shown below are in operation.

NONE

The last date(s) for receipt of election notices for the ⁺dividend or distribution plans

NOT APPLICABLE

Any other disclosures in relation to dividends (distributions). (For half yearly reports, provide details in accordance with paragraph 7.5(d) of AASB 1029 Interim Financial Reporting)

Dividend is fully franked at 30%

Details of aggregate share of profits (losses) of associates and joint venture entities

entities':	Group's share of associates' and joint venture	Current period \$A'000	Previous corresponding period - \$A'000
16.1	Profit (loss) from ordinary activities before tax
16.2	Income tax on ordinary activities
16.3	Profit (loss) from ordinary activities after tax
16.4	Extraordinary items net of tax
16.5	Net profit (loss)
16.6	Adjustments
16.7	Share of net profit (loss) of associates and joint venture entities

Material interests in entities which are not controlled entities

The economic entity has an interest (that is material to it) in the following entities. (If the interest was acquired or disposed of during either the current or previous corresponding period, indicate date of acquisition ("from dd/mm/yy") or disposal ("to dd/mm/yy").)

Name of entity		Percentage of ownership interest held at end of period or date of disposal		Contribution to net profit (loss) (item 1.9)
17.1	Equity accounted associates and joint venture entities	Current period	Previous corresponding period	Current period \$A'000	Previous corresponding period - \$A'000
		NONE	NONE
17.2	Total
17.3	Other material interests
17.4	`otal

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current period

(Description must include rate of interest and any redemption or conversion rights together with prices and dates)

Category of + securities	Total number	Number quoted	Issue price per security (see note 14) (cents)	Amount paid up per security (see note 14)
				(cents)
Preference + securities	NONE
Changes during current period (a) Increases through issues Decreases through returns of (b) capital, buybacks, redemptions
+ Ordinary securities	159,113,355	159, 113, 355
Changes during current period (a) Increases through issues SESOP II SESOP II SESOP II Share Plan	354,800 61,400 56,314 170,350	354,800 61,400 56,314 170,350	\$13.23 \$11.45 \$10.82 \$21.28	\$13.23 \$11.45 \$10.82 \$21.28
(b) Decreases through returns of
capital, buybacks	N/A	N/A
+ Convertible debt securities	N/A	N/A
Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted	N/A	N/A
Options (description and conversion factor)			Exercise price	Expiry Date (if any)
SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II SESOP II	300,000 31,000 58,310 537,050 85,000 60,000 200,000 925,500 82,540 844,800 90,000 254,400 243,193 5,000 91,000 20,000 3,000 1,348,300 204,600 30,000		\$11.45 \$10.82 \$13.23 \$20.84 \$21.01 \$23.07 \$34.04 \$0.01 \$37.54 \$49.31 \$37.54 \$0.01 \$43.51 \$49.94 \$47.20 \$40.41 \$27.97 \$0.01 \$20.67	Nov 04 Mar 05 Jul 05 Jul 06 Nov 06 Feb 07 Feb 07 Aug 07 Nov 07 Jun 08 Jul 08 Aug 08 Aug 08 Aug 08 Dec 08 Jan 09 Apr 09 Jul 09 Sept 09 Oct 09
				\$8.93

⁺ See chapter 19 for defined terms.

		Total number	Number quoted	Exercise price	Expiry Date (if any)
18.8	Issued during current period SESOP II SESOP II SESOP II	1,388,300 204.600 30,000		\$27.97 \$0.01 \$20.67	Jul 09 Sept 09 Oct 09
18.9	Exercised during current period SESOP II SESOP II SESOP II	354,800 61,400 56,314		\$13.23 \$11.45 \$10.82	Jul 06 Mar 05 Jul 05
18.10	Expired during current period	$\ddot{\phantom{1}}$	$\mathbf{r}$	$\mathbf{r}$
	Lapsed during current period	168,172
18.11 18.12	Debentures (description) Changes during current period (a) Increases through issues	N/A
	(b) Decreases through securities matured, converted
18.13	Unsecured notes (description)
18.14	Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted	N/A

Segment reporting

(Information on the business and geographical segments of the entity must be reported for the current period in accordance with AASB 1005: Segment Reporting and for half year reports, AASB 1029: Interim Financial Reporting. Because entities employ different structures a pro forma cannot be provided. Segment information in the layout employed in the entity's +accounts should be reported separately and attached to this report.)

Refer ATTACHMENT 2

⁺ See chapter 19 for defined terms.

Comments by directors

(Comments on the following matters are required by ASX or, in relation to the half yearly report, by AASB 1029; Interim Financial Reporting. The comments do not take the place of the directors' report and statement (as required by the Corporations Act) and may be incorporated into the directors' report and statement. For both half yearly and preliminary final reports, if there are no comments in a section, state NIL. If there is insufficient space to comment, attach notes to this report.)

Basis of financial report preparation

• $19.1$ If this report is a half yearly report, it is a general purpose financial report prepared in accordance with the listing rules and AASB 1029: Interim Financial Reporting. It should be read in conjunction with the last *annual report and any announcements to the market made by the entity during the period. The financial statements in this report are "condensed financial statements" as defined in AASB 1029: Interim Financial Reporting. This report does not include all the notes of the type normally included in an annual financial report. [Delete if preliminary final report.]
• 19.2 Material factors affecting the revenues and expenses of the economic entity for the current period. In a half yearly report, provide explanatory comments about any seasonal or irregular factors affecting operations.

Comments on significant trends or events during the current period are included in the accompanying press release.

19.3 A description of each event since the end of the current period which has had a material effect and which is not already reported elsewhere in this Appendix or in attachments, with financial effect quantified (if possible).

NONE

19.4 Franking credits available and prospects for paying fully or partly franked dividends for at least the next year.

The available franking credits are \$37.0m. This balance has been determined in accordance with the revised imputation system that came into force on 1 July 2002.

While the extent of further franking will be dependent upon operating performance and the business environment, there are reasonable prospects that subsequent dividend payments for at least the next year can be fully franked.

19.5 Unless disclosed below, the accounting policies, estimation methods and measurement bases used in this report are the same as those used in the last annual report. Any changes in accounting policies, estimation methods and measurement bases since the last annual report are disclosed as follows. (Disclose changes and differences in the half yearly report in accordance with AASB 1029: Interim Financial Reporting. Disclose changes in accounting policies in the preliminary final report in accordance with AASB 1001: Accounting Policies-Disclosure).

Provision is only made for the amount of any dividend declared, determined or publicly recommended by the directors on or before the end of the half-year but not distributed at balance date. The above policy was adopted from 1 July 2002 to comply with AASB 1044: Provisions, Contingent Liabilities and Contingent Assets released in October 2001 and applied to the half vear ended 31 December 2002.

⁺ See chapter 19 for defined terms.

19.6 Revisions in estimates of amounts reported in previous interim periods. For half yearly reports the nature and amount of revisions in estimates of amounts reported in previous +annual reports if those revisions have a material effect in this half year.

NONE

19.7 Changes in contingent liabilities or assets. For half yearly reports, changes in contingent liabilities and contingent assets since the last + annual report.

There has been the following changes to contingent liabilities and contingent assets since the last annual reporting date:

• (a) The legal matter with Aventis Pasteur SA in relation to the transfer of travel vaccines has been settled.
• (b) The legal matter with Alpine Biologics Inc. in relation to the distribution of Albumin in the USA has been settled.

Both matters were settled without detriment to the financial result for the half-year ended 31 December 2002.

Additional disclosure for trusts

• $20.1$ Number of units held by the management company or responsible entity or their related parties.
• $20.2$ A statement of the fees and commissions payable to the management company or responsible entity.

Identify:

• initial service charges
• management fees
• other fees

Annual meeting

(Preliminary final report only)

The annual meeting will be held as follows:

Place

Date

Time

Approximate date the *annual report will be available

⁺ See chapter 19 for defined terms.

Compliance statement

$\mathbf{1}$ This report has been prepared in accordance with AASB Standards, other AASB authoritative pronouncements and Urgent Issues Group Consensus Views or other standards acceptable to ASX (see note 12).

Identify other standards used

• $\overline{2}$ This report, and the *accounts upon which the report is based (if separate), use the same accounting policies.
• 3 This report does/does not* (doloto one) give a true and fair view of the matters disclosed (see note 2).
• $\overline{4}$ This report is based on +accounts to which one of the following applies.

• 5 The review by the auditor is attached.
• $6\overline{6}$ The entity has/does not have* (delete one) a formally constituted audit committee.

Sign here: 18 February 2003 Date: (Director/Company Secretary)

Peter R Turvey Print name:

⁺ See chapter 19 for defined terms.

ATTACHMENT 1

Income tax expense (refer item 1.6)	Current period - \$A'000	Previous corresponding period - \$A'000
The aggregate amount of income tax attributable to the financial periods differs by more than 15% from the amount calculated on the operating profit. The differences are reconciled as follows:
Profit from ordinary activities before income tax expense	56,783	73,403
Income tax calculated at 30% (2001: 34%) Tax effect of permanent differences	17,035	22,021
Building depreciation	136	180
Reduction in tax arising from the tax incentive for R&D	(1,507)	(1, 413)
Reduction in tax arising from equity raising costs claim	(226)	(452)
Under/(over) provision in previous year	(594)	(900)
Other non-allowable/assessable items	(379)	1,112
Effects of different rates of tax on overseas income	2,218	(4,686)
Income tax expense	16,683	15,862

Contributed equity / Share capital (refer item 4.34)	Current period - \$A'000
Movements in contributed equity for the period ended 31 December 2002: Issued and paid up capital at 1 July 2002 Issued under shareholder plan Issued to employees through participation in	923,856 3.625
SESOP II	6,007
Contributed equity at 31 December 2002	933,488

⁺ See chapter 19 for defined terms.

ATTACHMENT 2

Segment reporting

Business segments

Human Health Biosciences

Animal Health

Plasma Services

Products/services

Develops, manufactures and markets biopharmaceutical products to the human health industry. Develops, manufactures and markets cell culture reagents used in the manufacture of vaccines, biopharmaceuticals and gene therapy products.

Develops, manufactures and markets vaccines and diagnostics to protect livestock and companion animals. Collects human plasma used in manufacture of biopharmaceutical products to the human health industry.

Business Segment December 2002	Human Health \$A'000	Biosciences SA'000	Animal Health \$A'000	Plasma Services \$A'000	Eliminations \$A'000	Consolidated \$A'000
Revenue
External sales	379,296	84,070	32,645	137,427		633,438
Other external revenue	2,160	275	11			2,446
Intersegment revenue	869	532			(1,401)
Segment revenue	382,325	84,877	32,656	137,427	(1,401)	635,884
Unallocated revenue						3,968
Total revenue						639,852
Results
Segment earnings	45,734	21,837	4,800	3,233		75,604
Borrowing costs						(16, 114)
Unallocated expense net of						(2,707)
unallocated revenue
Profit from ordinary activities
before tax						56,783
Income tax expense						(16, 683)
Profit from ordinary activities						40,100
after tax

Business segment	Human Health	Biosciences	Animal Health	Plasma Services	Eliminations	Consolidated
December 2001	\$A'000	\$A'000	SA'000	\$A'000	SA'000	\$A'000
Revenue
External sales	387,811	71,061	28,433	102,500		589,805
Other external revenue	262.	316	1,253			1,831
Inter segment revenue		403			(403)
Segment revenue	388,073	71,780	29,686	102,500	(403)	591,636
Unallocated revenue						3,955
Total revenue						595,591
Results
Segment earnings	83,240	8,827	2,157	1,456		95,680
Borrowing costs						(18, 578)
Unallocated expense net of unallocated revenue						(3,699)
Profit from ordinary activities
before tax						73,403
Income tax expense						(15,862)
Profit from ordinary activities after tax						57,541

⁺ See chapter 19 for defined terms.

CSL Limited and its controlled entities ABN 99 051 588 348 Condensed Statement of Financial Performance for the half-year ended 31 December 2002

			Consolidated Entity
		December	December
		2002	2001
	Notes	\$000	\$000
Sales revenue	$\overline{2}$	633,438	589,805
Cost of sales		383,054	336,598
Gross profit		250,384	253,207
Other revenues	2	6.414	5,786
Research and development expenses		50,149	49,003
Selling and marketing expenses		58,003	38,737
General and administration expenses		44,946	51,689
Borrowing costs	3	16,114	18,578
Other expenses	3(a)	30,803	27,583
Profit from ordinary activities before income tax expense		56,783	73,403
Income tax expense relating to ordinary activities	4	16,683	15,862
Profit from ordinary activities after income tax expense		40,100	57,541
Net exchange difference on translation of financial statements of self-sustaining foreign operations net of exchange
differences on associated borrowings	1(b)	38,662	26,586
Total revenues, expenses and valuation adjustments
attributable to members recognised directly in equity		38,662	26,586
Total changes in equity other than those resulting from transactions with owners as owners		78,762	84,127
Basic earnings per share		cents 25.3	cents 36.4
Diluted earnings per share		25.1	35.9

The above statement of financial performance should be read in conjunction with the accompanying notes.

ABN 99 051 588 348 Condensed Statement of Financial Position as at 31 December 2002

			Consolidated Entity
		December	June	December
		2002	2002	2001
	Notes	\$000	\$000	\$000
CURRENT ASSETS
Cash assets		95,933	106,215	36,338
Receivables		167,297	190,446	198,301
Inventories		537,422	436,109	448,170
Other		10,038	5,930	8,431
Total Current Assets		810,690	738,700	691,240
NON-CURRENT ASSETS
Receivables		5,745	2,546	2,846
Other financial assets		5,646	2,036	2,770
Property, plant and equipment		588,705	562,638	552,369
Deferred tax assets		16,080	16,268	16,734
Intangibles		1,047,906	989,934	966,164
Total Non-Current Assets		1,664,082	1,573,422	1,540,883
TOTAL ASSETS		2,474,772	2,312,122	2,232,123
CURRENT LIABILITIES
Payables		190,771	207,075	185,285
Interest bearing liabilities		20,126	85,594	73,612
Tax liabilities		13,461	10,092	10,780
Provisions	1(c)	67,149	104,049	103,422
Total Current Liabilities		291,507	406,810	373,099
NON-CURRENT LIABILITIES
Payables		29,188	26,949
Interest bearing liabilities		742,179	555.211	544,169
Deferred tax liabilities		22,612	22,739	19,570
Provisions		27,819	27,282	29,926
Total Non-Current Liabilities		821,798	632,181	593,665
TOTAL LIABILITIES		1,113,305	1,038,991	966,764
NET ASSETS		1,361,467	1,273,131	1,265,359
EQUITY
Contributed equity	5	933,488	923,856	923,235
Reserves		108,733	70,069	99,939
Retained profits		319,246	279,206	242,185
TOTAL EQUITY		1,361,467	1,273,131	1,265,359

The above statement of financial position should be read in conjunction with the accompanying notes.

CSL Limited and its controlled entities ABN 99 051 588 348 Condensed Statement of Cash Flows for the half-year ended 31 December 2002

		Consolidated Entity
		December	December
		2002	2001
	Notes	S000	\$000
Cash flows from Operating Activities
Receipts from customers		661,933	553,080
Payments to suppliers and employees		(593,765)	(520, 422)
Interest received		356	3,458
Income taxes paid		(13,253)	(8,333)
Borrowing costs		(30, 414)	(30, 042)
Net eash inflow from operating activities		24,857	(2,259)
Cash flows from Investing Activities
Proceeds from sale of property, plant and equipment		3.625	364
Payment for property, plant and equipment		(47,558)	(36, 889)
Payment for other investments		(396)	(323)
Purchase of business, net of cash acquired	6		(309, 337)
Payment for intellectual property		(37, 037)
Payment for restructuring of business		(4, 101)	(1,480)
Net cash outflow from investing activities		(85, 467)	(347, 665)
Cash flows from Financing Activities
Proceeds from issue of shares		6,435	326,828
Dividends paid		(34, 924)	(26, 937)
Proceeds from borrowings		491,197	9,740
Repayment of borrowings		(403,060)	(42, 656)
Net eash inflow from financing activities		59,648	266,975
Net increase/(decrease) in cash held		(962)	(82, 949)
Cash at the beginning of the period		89,355	109,489
Exchange rate variations on foreign cash balances		1.288	2,259
Cash at the end of the period		89,681	28,799
Reconciliation of Cash
Cash at the end of the period as shown in the condensed
statement of eash flows is reconciled as follows:
Cash on hand		95,482	20,338
Cash deposits		451	16,000
Bank overdraft		(6,252)	(7, 539)
		89.681	28.799

The above statement of cash flows should be read in conjunction with the accompanying notes.

1 Basis of Preparation of the half-year financial report

The half-vear financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

The half-year financial report should be read in conjunction with the Annual Financial Report of CSL Limited as at 30 June 2002. It is also recommended that the half-year financial report be considered together with any public announcements made by CSL Limited and its controlled entities during the half-year ended 31 December 2002 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

(a) Basis of Accounting

The half-year financial report is a general purpose financial report which has been prepared in accordance with the requirements of the Corporations Act 2001, applicable Accounting Standards including AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements. The half-year financial report has been prepared in accordance with the historical cost convention. For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

(b) Foreign currency translation

The financial statements of self-sustaining operations are translated using the current method. Any exchange difference arising through the use of the current rate method is taken directly to the foreign currency translation reserve. The amount taken to the reserve for the half-year ended 31 December 2002 was \$38,662,000 (2001:\$26,586,000).

(c) Changes in accounting policy for providing for dividends

Provision is only made for the amount of any dividend declared, determined or publicly recommended by the directors on or before the end of the half-year but not distributed at balance date.

The above policy was adopted from 1 July 2002 to comply with AASB 1044; Provisions, Contingent Liabilities and Contingent Assets released in October 2001 and applied to the half vear ended 31 December 2002. In previous periods, in addition to providing for the amount of any dividends declared, determined or publicly recommended by the directors on or before the end of the period but not distributed at balance date, provision was made for dividends to be paid out of retained profits at the end of the period where the dividend was proposed, recommended or declared between the end of the period and completion of the financial report.

The adoption of this policy has no impact on the financial position at 31 December 2002 or on the financial results for the half-year then ended.

(d) Prior period comparatives

Where necessary, comparatives have been reclassified and repositioned for consistency with current period disclosures.

	Consolidated Entity
	December	December
	2002	2001
	5000	\$000
2 Revenue from Ordinary Activities
Sales revenue	633,438	589.805
Other revenue
Interest received/receivable
Other persons and/or corporations	307	3,412
Proceeds from sale of property, plant and equipment	3.625	364
Rent	364	530
Royalties	41	76
Collaborative revenue	987
Other	1,090	1,404
Total other revenues	6.414	5,786
Total revenue from ordinary activities	639,852	595.591

3 Operating Profit

Profit from ordinary activities before income tax includes the following specific expenses:

Interest paid/payable to other persons	16,114	18.578
Depreciation	31.856	30,646
Writedown of investments	-	3.493
Amortisation of leasehold improvements	1,233	325
Amortisation of intellectual property	262	$\overline{\phantom{a}}$
Goodwill amortisation (a)	26,102	24.090

(a) The functional expense classification of Other Expenses includes goodwill amortisation.

4 Income Tax

The income tax expense from ordinary activities for the period differs from the amount calculated on the profit. The differences are reconciled as follows:

Profit from ordinary activities before income tax	56.783	73,403
Income tax calculated at $30\%$ (2001: $30\%$ ).	17.035	22.021
Tax effect of permanent differences
Building depreciation	136	180
Reduction in tax arising from the tax incentive for R&D	(1,507)	(1,413)
Reduction in tax arising from equity raising costs claim	(226)	(452)
Under/(over) provision in previous year	(594)	(900)
Effects of different rates of tax on overseas income	2.218	(4,686)
Other non-allowable/assessable items	(379)	1,112
Income tax expense adjusted for permanent differences	16,683	15,862.

5 Contributed Equity

Movements in the contributed equity for the six months ended 31 December 2002

	Number of
	shares	\$000
Opening balance	158,470,491	923.856
Shares issued to employees through participation in SESOP II	472.514	6,007
Shares issued to shareholders through participation in Share Plan	170,350	3,625
Balance as at 31 December 2002	159,113,355	933,488

6 Businesses Acquired

The following investments in operating assets were acquired by the consolidated entity at the dates stated. Their operating results have been included in the consolidated statement of financial performance from the relevant dates and the operating assets acquired have been included in the statement of financial position since the date of acquisition.

On 6 September 2001, the consolidated entity acquired 47 US based plasma collection centres and associated laboratory facilities from Nabi for consideration of AUD \$316.9 million.

December December 2001 2002 \$000 \$000 Consideration Cash 316,891 Total consideration 316,891 Fair value of net assets acquired Goodwill 260,089 875 Cash 26,897 Property, plant and equipment Inventories 25,697 1,640 Prepayments Debtors Deferred tax assets 4,586 Payables (2,570) Provisions (323) Investments 316,891 $\overline{\phantom{0}}$ Cash outflow on acquisition of operating assets Cash consideration 316.891 Less Cash paid carried forward from prior periods Cash acquired 875 Cash payable 6,679 309,337		Consolidated Entity

7 Segment Information

Primary Reporting - business segments

December 2002

	Human		Anımat	rtasma
	Health	Biosciences	Health	Services	Eliminations	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
External sales	379,296	84.070	32.645	137,427		633,438
Other external revenue	2,160	275.	11		-	2,446
Intersegment revenue	869.	532			(1,401)
Segment revenue	382,325	84,877	32,656	137,427	(1,401)	635,884
Unallocated revenue						3,968
Total revenue						639,852
Segment earnings	45.734	21,837	4,800	3.233		75,604
Borrowing costs						(16, 114)
Unallocated expense net
of unallocated revenue						(2,707)
Profit from ordinary activities before tax						56,783
Income tax expense						(16, 683)
Profit from ordinary activities after tax						40,100
December 2001
	Human		Animal	Plasma

	пинан		аннан	гизна
	Health	Biosciences	Health	Services	Eliminations	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
External sales	387,811	71,061	28,433	102,500		589,805
Other external revenue	262	316	1,253	$\overline{\phantom{a}}$	$\overline{a}$	1,831
Intersegment revenue		403			(403)
Segment revenue	388,073	71,780	29,686	102,500	(403)	591,636
Unallocated revenue						3,955
Total revenue						595,591
Segment earnings	83.240	8.827	2.157	1.456		95,680
Borrowing costs						(18, 578)
Unallocated expense net
of unallocated revenue						(3,699)
Profit from ordinary activities before tax						73,403
Income tax expense						(15, 862)
Profit from ordinary activities after tax						57,541

	Consolidated Entity
	December	December
	2002	2001
	S000	\$000
8 Dividends
Ordinary shares
Dividends provided for or paid during the half-year	34.924	26.937
Dividends not recognised at the end of the half-year
Since the end of the half-year the directors have recommended the payment of an
interim dividend of 12 cents per fully paid ordinary share, franked at 30%.
The aggregate amount of the proposed interim dividend expected to be paid on
15 April 2003 out of retained profits at 31 December 2002, but not recognised as a
liability at the end of the half-year as a result of the change in accounting policy

19,094

$\omega_{\rm c}$

Y flating at the end of the ne

9 Contingent Liabilities and Contingent Assets

There has been the following changes to contingent liabilities and contingent assets since the last annual reporting date:

(a) The legal matter with Aventis Pasteur SA in relation to the transfer of travel vaccines has been settled. (b) The legal matter with Alpine Biologics Inc. in relation to the distribution of Albumin in the USA has been settled.

Both matters were settled without detriment to the financial result for the half-year ended 31 December 2002.

10 Events occurring after reporting date

On 23 January 2003, ZLB Bioplasma AG, a controlled entity repaid 160 million Swiss Francs of the vendor loan provided by Rotkreuzstiftung Zentrallaboratorium Blutspendedienst SRK. This was financed through a new syndicated global multi-currency revolving finance facility that provides the consolidated entity with a credit limit of AUD\$400 million.

As the vendor loan was a fixed rate borrowing, break costs of 3.75 million Swiss Francs were incurred and will be paid in instalments over the remaining life of the original vendor loan. The interest rate on the new facility is at Swiss Franc floating rates and it is anticipated that the break costs will be recouped through interest expense savings within the next twelve months.

The financial effect of the above event has not been brought to account at 31 December 2002.

CSL Limited and its controlled entities ABN 99 051 588 348 Directors' Declaration

The directors declare that:

• (a) the financial statements and notes of the consolidated entity:
• (i) give a true and fair view of the financial position as at 31 December 2002 and the performance for the half-year ended on that date of the consolidated entity; and
• (ii) comply with Accounting Standard AASB 1029 'Interim Financial Reporting' and the Corporations Regulations 2001; and
• (b) in the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable, and that the company and parent entity, will together be able to meet any obligations or liabilities to which they are, or may become subject by virtue of the deed of cross guarantee dated 20 June 1995.

Made in accordance with a resolution of directors.

Peter H Wade Chairman

Brian A McNamee Managing Director

Melbourne

18 February 2003

CSL LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS' REPORT

The Board of Directors of CSL Limited has pleasure in submitting the condensed statement of financial position of the consolidated entity at 31 December, 2002, and the related condensed statement of financial performance and condensed statement of cash flows for the half year then ended and report as follows:

$1.$ Directors

The names and details of the Directors in office at the date of this report are:

Names	Qualifications and Experience
Peter H Wade, FCPA, FAICD, Chairman	Experienced in finance, commercial and
	corporate governance, Mr Wade is a past Deputy
	Chairman of CSL, having previously served
	from 1985 until 1993. Mr Wade was appointed
	Chairman in 1999 and re-elected at the 2000
	Resident Annual General Meeting. $\mathbf{m}$
	Melbourne.
Brian A McNamee, MB, BS, FAICD	Experienced in international pharmaceutical
Managing Director	industry and medicine, Dr McNamee became the Chief Executive and Managing Director of
	CSL in 1990. Resident in Melbourne.
Elizabeth A Alexander, AM, BCom, FCPA,	Miss Alexander is an accountant, and was
FCA, FAICD	appointed to the CSL Board in 1991. She was
	most recently re-elected at the 2001 Annual
	General Meeting. She is Chairman of the Audit
	and Risk Management Committee. Resident in
	Melbourne.
A M (Tony) Cipa, B.Bus(Acc), Grad.Dip(Acc), CPA, ACIS	Mr Cipa was appointed to the CSL Board as
	Finance Director in August 2002 and re-elected at the 2002 Annual General Meeting. Mr Cipa
	commenced his employment at CSL in 1990 as
	Finance Manager and was appointed Chief
	Officer in 1994. Resident Financial $\overline{\mathbf{m}}$
	Melbourne.
C I R (Ian) McDonald, BSv (Hons)	Mr McDonald has had the $\mathbf{a}$ career 111
	international pharmaceutical industry and was
	appointed a Director of CSL in 1992, and most
	recently re-elected at the 2001 Annual General
	Meeting. Mr McDonald is a member of the
	Audit and Risk Management Committee.
	Resident in Sydney.
Ian A Renard, B.4, LLM, FAICD	Mr Renard was appointed to the CSL Board in August 1998 and most recently re-elected at the
	2002 Annual General Meeting. Mr Renard was a
	partner of a law firm for 22 years practising in
	commercial law. Mr Renard is a member of the
	and Risk Management Committee. Audit
	Resident in Melbourne.

Kenneth J Roberts, AM, BEc, FCPA, FAIM,	Mr Roberts was appointed to the Board in
FAICD, FRACP(Hon)	February 1996, and most recently re-elected at
	the 2002 Annual General Meeting. His career
	has been in the international pharmaceutical
	industry. Mr Roberts is Chairman of the
	Remuneration and Human Resources
	Committee. Resident in Sydney.
Arthur C Webster, BVSc, DipBact (Lond)	Dr Webster was appointed to the CSL Board in
	March 1998 and most recently re-elected at the
	2001 Annual General Meeting. Dr Webster's
	career has been in the animal health industry
	both domestically and internationally. Dr
	Webster is a member of the Remuneration and
	Human Resources Committee. Resident in
	Sydney.

$2.$ Activities

The principal activities of the consolidated entity during the half year under review were the research, development, manufacture, marketing and distribution of pharmaceutical and allied products and no significant change in the nature of those activities has taken place during the period.

3. Operating Results

Group sales totalled \$633.4 million, an increase of $7\%$ over the corresponding period last The consolidated earnings before interest, income tax, depreciation and year. amortisation was \$132 million, a decrease of $8\%$ on the corresponding period last year. Net profit after providing for income tax was \$40.1 million, a decrease of $30\%$ on the corresponding period last year.

4. Significant Changes in the State of Affairs

There were no significant changes in the state of affairs of the economic entity that occurred during the financial period not otherwise disclosed in this report or the financial statements.

5. Review of Operations

A number of factors impacted on the performance of the consolidated entity during the first half under review as predicted by the Company at its Annual General Meeting in October 2002. A principal factor has been the strong appreciation of the Swiss franc against the US dollar. During the half year under review the Swiss franc had on average appreciated approximately 12% against the US dollar compared to the same period last year. Consequently, net profit after providing for income tax prior to applying exchange rate movements was \$55.4 million, a decrease of $4\%$ on the corresponding period last year. A further factor was the competitive pricing environment for IVIG in the USA which had the effect of moving the IVIG price adversely. The third factor has been a delay in the transition from Novartis distributing Sandoglobulin in Europe to ZLB Bioplasma AG doing so.

Dividends 6.

A final dividend of 22 cents per ordinary share, fully franked, was paid out of profits for the year ended 30 June 2002, on 10 October, 2002.

The Directors have declared an interim dividend of 12 cents per ordinary share (the same as for the corresponding period last year), fully franked at 30% to be paid on 15 April, 2003.

7. Rounding of Amounts

The chief entity is a company entitled to relief under Australian Securities & Investments Commission Class Order 98/100. In accordance with that Class Order, amounts in the consolidated financial statements and the Directors' Report have been rounded to the nearest \$1,000, unless specifically stated to be otherwise.

This report has been made in accordance with a resolution of Directors.

Peter H Wade CHAIRMAN

Brian A McNamee MANAGING DIRECTOR

Dated:

18 February 2003

INDEPENDENT AUDITOR'S REPORT

To the members of CSL Limited

Scope

We have audited the financial report of CSL Limited for the half-year ended 31 December 2002, as set out on pages 1 to 9, including the Directors' Declaration. The financial report includes the consolidated financial statements of CSL Limited and the entities it controlled at the end of the half-year or from time to time during the half-year. The company's directors are responsible for the financial report. We have conducted an independent audit of this financial report in order to express an opinion on it, so as to enable the company to lodge the financial report with the Australian Securities and Investments Commission.

Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the financial report is free of material misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial report, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with Accounting Standard AASB 1029 "Interim Financial Reporting" and other mandatory professional reporting requirements in Australia, and statutory requirements so as to present a view which is consistent with our understanding of the consolidated entity's financial position and performance as represented by the results of their operations and their cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion

In our opinion, the half-year financial report of CSL Limited is in accordance with:

• the Corporations Act 2001, including: $(a)$
• (i) giving a true and fair view of the consolidated entity's financial position as at (balance date) and of its performance for the half-year ended on that date; and
• (ii) complying with Accounting Standard AASB 1029 "Interim Financial Reporting", and the Corporations Regulations 2001;
• (b) other mandatory professional reporting requirements in Australia.

Ernst & Young

Ivan Wingreen Partner Melbourne Date: 18 February 2003

CSL LOOKS FORWARD TO IMPROVED TRADING CONDITIONS IN THE SECOND HALF

Results:

CSL Limited today announced its operating results for the half year ended 31 December, 2002. Group sales totalled \$633.4m, an increase of 7% over the corresponding period last year. The consolidated earnings before interest, income tax, depreciation and amortisation (EBITDA) were \$132m, a decrease of 8% on the corresponding period last year. As predicted at the Company's Annual General Meeting in October 2002, the strong appreciation of the Swiss franc against the US dollar has had a significant impact on the operating results of the Company. At constant currency rates, EBITDA grew by 4% over the corresponding period last year.

Net profit after providing for income tax (NPAT) was \$40.1m, a decrease of 30% on the corresponding period last year. In addition to a strong Swiss franc and as noted at the Annual General Meeting this result was a reflection of a competitive pricing environment for IVIG in the US and the transition from Novartis to ZLB Bioplasma of IVIG distribution in Europe. Further, the effective tax rate of the Company has also risen considerably in the period due to the inability of the Company to benefit the Group results through the lower corporate tax rate offered to ZLB Bioplasma AG in Switzerland.

Earnings per share after tax, before goodwill amortisation, was 38.7c (diluted), a decrease over the corresponding period last year of $20\%$ .

Dr McNamee, CSL's Managing Director, said, "The Company has continued to increase its investment in the ZLB business by expanding its marketing and sales activity in the US and in Europe". He noted however that the other businesses in the CSL Group had continued to show strong growth in the period, especially JRH Biosciences, Inc.

Dr McNamee advised that the Company had maintained its investment in R&D expenditure, spending more than \$50m in the period, demonstrating its ongoing commitment to innovation as part of its strategy to build a long term future for the business.

Dr McNamee advised that given a higher effective corporate tax rate and continuing currency volatility, NPAT for the full year was hard to forecast with accuracy. However, on the basis of current indications, the anticipated underlying trading performance of the Group was likely to be reflected as an EBITDA split of approximately 45%/55% for the full year. The final result however, he added, was very difficult to predict because of a number of key variables including fluctuations in exchange rates and IVIG market conditions in the US.

The Directors maintained an interim dividend payment of 12c per share fully franked to be paid to shareholders on 15 April, 2003, the same as for the corresponding period last year.

$/2...$

Aventis-Behring:

CSL has announced today that it is exploring the strategic option of acquiring Aventis-Behring. In connection with investigating this option, the Company has entered into an agreement with Aventis to allow CSL to appropriately and exclusively evaluate this acquisition opportunity.

On January 31 2003, Aventis announced that its discussions with Bayer regarding a possible blood products joint venture were terminated and that it was proactively exploring alternative options. As part of its 2002 review, Aventis further stated its desire to divest Aventis-Behring within the year 2003.

Aventis-Behring, headquartered in the USA, is a major player in the plasma therapeutic protein industry with a strong position in plasma derived and recombinant coagulation factors and has over 3.0m litres of processing capacity in the USA and Germany.

Dr Brian McNamee commented that the production and distribution of human plasma products is a core business for CSL and management and the Board regularly review acquisition opportunities as they arise. Dr McNamee noted that this acquisition may provide CSL with a broadened and more balanced product portfolio, greater geographical reach and currency balance and would more fully utilise ZLB/CSL strategic assets. He added that the current discussions with Aventis were at an early stage and may or may not result in a transaction, with the ultimate outcome of these discussions depending among other things on whether the Company could secure a transaction that would be sufficiently attractive and value enhancing for CSL's shareholders.

JRH Biosciences Inc:

The Company also announced today that its US subsidiary, JRH Biosciences Inc, had recently acquired from ByProd Corporation a new business in the US, which business was a major collector and producer of animal derived serum. This acquisition had the potential to double JRH's existing business in animal derived serum. This purchase will enable JRH to secure ongoing supplies of foetal bovine serum and other sera which is in high demand from its customers, being a critical resource used in the production of many important biopharmaceutical products. Dr McNamee commented that the acquisition will position JRH as a major collector and producer of serum in the US and will provide further growth opportunities for JRH which was continuing to perform very strongly.

Fibrin Bandage:

In respect to the project to develop a fibrin bandage, the Company has announced that it had recently shipped bandages to the US Army having received FDA approval under an IND in December 2002 for pilot battlefield use. Dr McNamee noted that the unique properties of the bandage differentiated it from competitor dressings. It is anticipated that it will be effective in severe life threatening haemorrhage as it contains potent coagulation proteins necessary for blood clotting and will be able to be used for both internal and external injury as it is capable of being naturally absorbed by the body.

Dr Brian McNamee's Relocation:

Dr McNamee relocated permanently to Australia on February 2, 2003, after overseeing the establishment of ZLB's US operations as well as ensuring the continued growth of the Company's other US businesses.

For further information please contact:

Dr Brian McNamee Managing Director

ΟÊ

Mr Tony Cipa Finance Director

Ph: $+61393891601$

Group Results 2007

1999 - Johann Maria (f. 1989)

Half year ended December	2016 I	2002
	S) II	STI
Sales	589.8	633.4
Other Revenue	$\sim 8$	64
Total Revenue	59546	689.8
Earnings before Interest, Tax, Depreciation &
Amortisation	i kata	132.0
Depreciation/Amortisation	55.1	59.S
Net Interest Expense/(Income)	15.2	15.8
Tax Expense	15.9	16.7
Profit after tax before Goodwill Amortisation	77. JUNIO	617
Amortisation of Goodwill after tax	$20.0 -$	21.6
Net Profit from Ordinary Activities	SAS	ZIDEL
Interim Dividend (cents)	12.0	$-12.0$
EPS diluted (cents)	35.9	25.1
EPS after tax before Goodwill Amortisation (cents)	48,4	38.7

AUSTRALIA SEKOPHARMACEUTICAL COMPANY

1999 - Johann Amerikaanse politikelijk († 1908)

a mana

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