CSL Ltd. — Interim / Quarterly Report 2013

Feb 12, 2013

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For immediate release 13 February 2013

Interim Result

Reported profit of US$627m, up 24% Earnings per share US124.7¢, up 30% Cash flow from operations of US$670 million, up 24% Dividends lifted to US50¢ per share, up 33%

CSL Limited (ASX:CSL) today announced a net profit after tax of US$627 million for the six months ended 31 December 2012, up US$123 million or 24% on a reported basis when compared to the prior comparable period (PCP). Earnings per share grew 30%, benefiting from current and past capital management initiatives.

KEY ITEMS

Financial

• Sales revenue US$2.5 billion, up 7% on PCP

• Up 11% at Constant Currency[1]

• Reported net profit after tax US$627 million, up 24% on PCP

• Up 25% at Constant Currency

• Reported earnings per share US124.7¢, up 30% on PCP

• Research and development investment of US$190 million, up 14% on PCP

• Cash flow from operations of US$670 million, up 24% on PCP

• Strong balance sheet

• Interim dividend[2] increased to US50¢ per share, unfranked for Australian tax purposes, payable on 5 April 2013 [3] .

1 Constant currency removes the impact of exchange rate movements to facilitate comparability. See end note (#) for further detail.

2 For shareholders with an Australian registered address, dividends will be paid in A$ at an amount of A48.66¢ per share (at an exchange rate of A$0.9732/US$1.0000), and for shareholders with a New Zealand registered address, dividends will be paid in NZD at an amount of NZ59.775¢ per share (at an exchange rate of NZ$1.1955/US$1.0000). The exchange rates used are fixed at the date of dividend determination. All other shareholders will be paid in US$. Exchange rate fixed at the date of dividend determination.

3 For further information see separate ASX announcement.

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13 February 2013

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Operational

• Margin expansion arising from operational efficiencies

• Strengthening presence in emerging markets

• Australian operations reorganised

• CSL Behring, Broadmeadows - plasma operations

• bioCSL - vaccines, pharmaceutical and diagnostics businesses

• Facilities expansion – investing for growth

• Capital management

• Current buyback[4] ~21% complete

• New US$300m private placement foreshadowed

OUTLOOK (at 11/12 exchange rates)

Commenting on CSL’s outlook, Dr McNamee said “It’s been a very productive half year during which we have successfully strengthened our presence in emerging markets.”

“Ongoing efficiency initiatives underpin much of our long term trend in margin improvement, with this first half benefiting from some expense phasing. Research and development investment in particular is planned to be skewed towards the second half of the financial year.”

“Although global business conditions remain mixed, we are able to reaffirm our upgraded profit outlook. We continue to anticipate fiscal year 2013 net profit after tax to grow by approximately 20% at constant currency[#] . Earnings per share growth will again exceed profit growth as shareholders benefit from the ongoing effect of past and current capital management initiatives. This year we anticipate earnings per share growth of approximately 24%,” Dr McNamee said.

In compiling the Company’s financial forecasts for the year ending 30 June 2013 a number of key variables which may have a significant impact on guidance have been identified and these have been included in the footnote[5] below.

4 CSL reserves the right to suspend or terminate buy-backs at any time.

5 Key variables which may have a significant impact on guidance include material price and volume movements in plasma products, competitor activity, changes in healthcare regulations and reimbursement policies, royalties arising from the sale of Human Papillomavirus Vaccine, internationalisation of the

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13 February 2013

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BUSINESS REVIEW

Results overview

CSL Behring sales of US$1.96 billion grew 9% in constant currency terms, when compared to the prior comparable period.

Immunoglobulin sales of US$912 million grew 10% in constant currency terms. Demand for Privigen[®] was particularly strong in the US. Demand for subcutaneous immunoglobulin (SCIG), lead by Hizentra[®] , was robust in both the US and Europe, growing 30% when compared to the prior comparable period. The Company’s transitioning of patients from Vivaglobin[®] to new generation SCIG Hizentra[®] is now almost complete.

Albumin sales, excluding Asian sales[6] , of US$163 million grew 8% in constant currency terms. Including Asian sales, albumin sales grew 27% at constant currency. Growth was underpinned by ongoing demand in China and the favourable re-evaluation of albumin usage in intensive care units in Europe.

Haemophilia product sales of US$542 million grew 6% in constant currency terms. Volume growth for plasma derived factor VIII products was lead by Beriate[®] . Demand was particularly strong in Argentina, Poland and Brazil. This volume growth was offset to some extent by the ongoing geographic shift towards lower priced emerging markets.

Specialty products sales of US$345 million grew 15% in constant currency terms. The changing paradigm for the treatment of peri-operative bleeding has underpinned growth in demand for fibrinogen product Haemocomplettan[®] in Europe. Demand for Beriplex[®] , human prothrombin concentrate used in the emergency reversal of anticoagulation, grew well, particularly in France. Robust demand continues in the US for Berinert[®] , which is used for the treatment of acute attacks in patients with hereditary angioedema.

Other Human Health sales of US$518 million grew 19% in constant currency terms, when compared to the prior comparable period, or 9% excluding US$117 million of albumin sales into Asia. CSL’s Broadmeadow’s plant contributed US$137 million in plasma therapy sales. Also contributing to growth were influenza sales of US$97 million,

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Company’s influenza vaccine sales and plasma therapy life cycle management strategies, enforcement of key intellectual property, regulatory risk, litigation, the effective tax rate and foreign exchange movements. 6 CSL Behring albumin products sold in Asia by CSL Biotherapies.

13 February 2013

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boosted by solid sales into northern hemisphere markets. GARDASIL* sales in Australia and New Zealand were US$20m following growth in the Australian National Immunisation Program and private markets.

Intellectual Property Licensing revenue was US$72 million, which is predominantly royalty contributions from Human Papillomavirus Vaccines.

Australian Operations Reorganised

The integration of the Australian plasma operations with CSL Behring previously announced is now complete. This action creates a single plasma business within the CSL group building on the scale and efficiencies achieved to date. It also leverages the new biotech and plasma manufacturing facilities at Broadmeadows now under construction.

The vaccines and pharmaceutical operations is now a stand-alone business unit within the CSL Group and operating under the name bioCSL .

Financial reporting of this new organisational structure will commence with the FY2013 results announcement in August 2013. To assist investors during the transition the Company intends to lodge with the Australian Securities Exchange in June this year the prior period financial segment numbers reflecting this change.

Appointment of Paul Perreault as Executive Director

CSL Limited is pleased to announce the appointment of Mr Paul Perreault to the CSL Limited Board as an Executive Director effective 13 February 2013. Mr Perreault currently holds the position of President, CSL Behring and, as announced on 3 August 2012, he will succeed Dr Brian McNamee as Managing Director of CSL on 1 July 2013.

The detailed announcement can be found on the company website at www.csl.com.au/investor

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13 February 2013

RESEARCH & DEVELOPMENT

Immunoglobulin

Hizentra®

A new study conducted in Japan supports the previously demonstrated safety and efficacy of Hizentra® (Immune Globulin Subcutaneous, Human) for the treatment of primary immunodeficiency (PID). Hizentra is the first and only 20 percent subcutaneous immunoglobulin (SCIG) therapy in the world for the treatment of PID, a rare and serious group of diseases of the immune system. It is the first SCIG therapy to demonstrate safety and efficacy in Japanese subjects. Based on these excellent results, CSL Behring submitted the new drug application (NDA) for Hizentra to the Pharmaceutical and Medicines Devices Agency (PMDA) in Japan on 28 September, 2012.

The Phase III study, conducted in Japanese patients who converted from intravenous immunoglobulin (IVIG) treatment, found that a dose-equivalent switch to Hizentra therapy maintained serum IgG (immunoglobulin) at a similar level of trough concentration to previous IVIG therapy. Results showed that Hizentra provided effective passive immunity in adults and children to control most recurrent infections and improved patients’ overall quality of life.

Haemophilia

rIX-FP

On 21 January 2013, CSL announced that the first patient has been enrolled in the pivotal pediatric phase III study to evaluate the safety, efficacy and pharmacokinetics of recombinant fusion protein linking coagulation factor IX with recombinant albumin (rIXFP) in previously treated children.

Results of a Phase I study evaluating recombinant fusion protein linking coagulation Factor IX with albumin (rIX-FP) in patients with severe hemophilia B were publicly presented earlier this year and published in BLOOD 2012 showing that rIX-FP achieved a 91.57 hours terminal half-life, incremental recovery of 1.376 (IU/dL) / (IU/kg), and clearance of 0.75 mL/h/kg. This was an extension in half-life of 5.3 times that of the current recombinant FIX therapy.

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13 February 2013

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Specialty Plasma Products

Fibrinogen

A Phase II study published in December 2012 in the journal Anesthesiology showed that human fibrinogen concentrate can significantly reduce the need for blood transfusion when given as an intra-operative, targeted first-line haemostatic therapy in bleeding patients undergoing aortic replacement surgery.

This is the world’s largest randomized, double-blind, placebo-controlled study of fibrinogen concentrate therapy. Results suggest proactive, targeted treatment with fibrinogen concentrate may safely reduce the need for transfusions, restore clotting ability, and protect patients undergoing aortic surgery from the adverse events associated with donor blood transfusion.

FACILITIES EXPANSION – INVESTING FOR GROWTH

The Company is currently undertaking significant facilities expansion activities to support growth.

Recombinant Cell Culture Facility

Facility validation and preparation for regulatory approval is currently underway with clinical production targeted for later this year.

Privigen[®]

Construction of a 15 million gram capacity Privigen plant at the Company’s Broadmeadow’s facility in Australia is scheduled for completion in the second half of fiscal 2013. Facility commissioning and regulatory approvals will take place over the next 2 years with commercial start up expected in 2016.

Albumin & Base Fractionation

The Company’s Kankakee, Bern & Marburg sites are being expanded to accommodate growth in demand for Albumin. Expansion of base fractionation capacity at Kankakee is targeted for completion in 2014.

Plasma

The Company’s fleet of plasma collection centres was expanded with the opening of 4 collection centres in the USA with a further 6 centres scheduled for opening later this

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13 February 2013

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year. In support of this growth the company is constructing a second plasma logistics centre in the USA and doubling the size of the existing plasma testing laboratory facility.

CAPITAL MANAGEMENT

Share Buyback

On 17 October 2012, CSL announced its intention to conduct an on-market share buyback of up to A$900 million. Under the Australian Securities Exchange listing rules this buyback[7] has a 12 month completion window. To date CSL has repurchased approximately 3.7 million shares for approximately $190 million, representing ~21% of the intended buyback program.

CSL’s balance sheet remains very sound. Cash and cash equivalents totalled $757 million as at 31 December 2012 and net debt stands at $371 million.

Capital management foreshadowed

During the second half of fiscal 2013 the Company intends to raise around US$300 million via a new US private placement facility. These funds will be used to repay existing debt, fund CSL’s capital management plan, including the on-market share buyback of up to A$900 million announced at the 2012 Annual General Meeting, and for general corporate purposes. The tenor of the funds will be designed to facilitate a balanced long term debt maturity profile.

Additional details about CSL’s results are included in the Company’s 4D statement, investor presentation slides and webcast, all of which can be found on the Company’s website www.csl.com.au A glossary of medical terms can also be found on the website.

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7 CSL reserves the right to suspend or terminate buybacks at any time.

13 February 2013

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Page 8

For further information, please contact:

Media:

Sharon McHale Senior Director Public Affairs CSL Limited Phone: +613 9389 1506 Mobile +614 0997 8314 Email: sharon.mchale@csl.com.au

Investors:

Mark Dehring Head of Investor Relations CSL Limited Telephone: +613 9389 2818 Email: mark.dehring@csl.com.au

Tim Duncan Hintons & Associates Phone: +613 9600 1979 Mobile: +614 0844 1122 Email: tduncan@hintons.com.au

• ® Trademarks of CSL Limited or its affiliates.

• GARDASIL is a trademark of Merck & Co. Inc.

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13 February 2013

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Group Results US Dollars

Six months ended December US$ Millions	Dec 2011 Reported Dec 2012 Reported Dec 2012 Constant Currency# Change %
Sales Other Revenue / Income Total Revenue / Income	2,324 2,482 2,568 10.5% 91 84 84 2,414 2,567 2,652
Earnings before Interest, Tax, Depreciation & Amortisation Depreciation/Amortisation Earnings before Interest and Tax Net Interest Expense / (Income) Tax Expense Net Profit after Tax Interim Dividend (US cents) Basic EPS (US cents)	720 884 898 24.7% 86 98 102 634 786 796 25.6% - 7 7 130 152 157
	504 627 632 25.4%
	37.57 96.3 50.00 124.7 125.7 30.5%

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13 February 2013

Constant currency removes the impact of exchange rate movements to facilitate comparability by restating the current year’s results at the prior year’s rates. This is done in two parts: a) by converting the current year net profit of entities in the group that have reporting currencies other than US Dollars at the rates that were applicable to the prior year (“translation currency effect”) and comparing this with the actual profit of those entities for the current year; and b) by restating material transactions booked by the group that are impacted by exchange rate movements at the rate that would have applied to the transaction if it had occurred in the prior year (“transaction currency effect”) and comparing this with the actual transaction recorded in the current year. The sum of translation currency effect and transaction currency effect is the amount by which reported net profit is adjusted to calculate the result at constant currency.

Summary NPAT

Reported Net Profit after Tax US$ 626.9m Translation Currency Effect (a) US$ 60.5m Transaction Currency Effect (b) US$ (55.6)m Constant currency Net Profit after Tax* US$ 631.8m

a) Translation Currency Effect US$60.5m

Average Exchange rates used for calculation in major currencies were as follows: Six months ended Dec 11 Dec 12 USD/CHF 0.85 0.95 USD/EUR 0.71 0.79

b) Transaction Currency Effect US$(55.6)m

Transaction currency effect is calculated by reference to the applicable prior year exchange rates. The calculation takes into account the timing of sales both internally within the CSL Group (ie from a manufacturer to a distributor) and externally (ie to the final customer) and the relevant exchange rates applicable to each transaction.

Summary Sales Reported Sales $2,482.3m Currency Effect (c) $85.3m Constant Currency Sales * $2,567.6m

c) Constant Currency Effect $85.3m

Constant currency effect is presented as a single amount due to the complex and interrelated nature of currency impact on sales.

* Constant currency net profit after tax and sales have not been audited or reviewed in accordance with Australian Auditing Standards

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CSL Limited

ABN: 99 051 588 348

ASX Half-year Information 31 December 2012

Lodged with the ASX under Listing Rule 4.2A. This information should be read in conjunction with the 30 June 2012 Annual Report.

Contents

Page

Results for Announcement to the Market

Half-year Report

1 3

CSL Limited

ABN: 99 051 588 348

Appendix 4D Half-year ended 31 December 2012

(Previous corresponding period:

Half-year ended 31 December 2011)

Results for Announcement to the Market

Reported

• Revenues from continuing operations up 6.4% to US$2.58 billion.

• Net profit after tax for the period attributable to members up 24.3% to US$626.9m.

Constant Currency[1 ]

• Sales revenue at constant currency up 11% to US$2.6 billion.

• Net profit after tax for the period at constant currency up 25% to US$631.8 million.

Dividends	Dividends	Dividends
	Amount per	Franked amount per
	security (US cents)	security (US cents)
Interim dividend (determined subsequent to balance date)	50.00¢	Unfranked*
Interim dividend from the previous corresponding period	37.57¢	Unfranked*
Final dividend (prior year)	48.92¢	Unfranked*
Record date for determiningentitlements to the dividend:	12 March 2013

* Non-resident withholding tax is not payable on this dividend as it will be declared to be wholly conduit foreign income.

The Company's Dividend Reinvestment Plan remains suspended and does not apply to the interim dividend.

Explanation of results

For further explanation of the results please refer to the accompanying press release and “Review of Operations” in the Directors’ Report that is within the Half-year Report.

The half year financial statements are presented in US$ unless otherwise stated.

Other information required by Listing Rule 4.3A

The remainder of the information requiring disclosure to comply with Listing Rule 4.3A is contained in the attached Half-year Report (which includes the Directors’ Report) and Media Release.

1

1 Constant currency removes the impact of exchange rate movements to facilitate comparability by restating the current year’s results at the prior year’s rates. This is done in two parts: (a) by converting the current year net profit of entities in the group that have reporting currencies other than US Dollars at the rates that were applicable to the prior year (“translation currency effect”) and comparing this with the actual profit of those entities for the current year; and (b) by restating material transactions booked by the group that are impacted by exchange rate movements at the rate that would have applied to the transaction if it had occurred in the prior year (“transaction currency effect”) and comparing this with the actual transaction recorded in the current year. The sum of translation currency effect and transaction currency effect is the amount by which reported net profit is adjusted to calculate the result at constant currency.

the result at constant currency.
Summary NPAT
Reported Net Profit after Tax	$626.9m
Translation Currency Effect (a)	$ 60.5m
Transaction Currency Effect (b)	$ (55.6)m
Constant Currency Net Profit after Tax *	$631.8m

(a) Translation Currency Effect $60.5m

Average Exchange rates used for calculation in major currencies (six months to Dec 12/Dec 11) were as follows: USD/EUR (0.79/0.71); USD/CHF(0.95/0.85)

(b) Transaction Currency Effect $(55.6m)

Transaction currency effect is calculated by reference to the applicable prior year exchange rates. The calculation takes into account the timing of sales both internally within the CSL Group (ie from a manufacturer to a distributor) and externally (ie to the final customer) and the relevant exchange rates applicable to each transaction.

Summary Sales
Reported Sales	$2,482.3m
Currency Effect (c)	$85.3 m
Constant Currency Sales *	$2,567.6m

c) Constant Currency Effect $85.3m

Constant currency effect is presented as a single amount due to the complex and interrelated nature of currency impacts on sales.

• Constant Currency Net Profit after Tax and Sales have not been audited or reviewed in accordance with Australian Auditing Standards.

2

CSL Limited Half-year Report – 31 December 2012

Contents	Page
Directors’ Report	4
Auditor’s Independence Declaration	6
Consolidated Statement of Comprehensive Income	7
Consolidated Balance Sheet	8
Consolidated Statement of Changes in Equity	9
Consolidated Statement of Cash Flows	10
Notes to the Financial Statements	11
Directors’ Declaration	22
Independent Review Report to the Members of CSL Limited	23

This Interim Financial Report does not include all the notes of the type normally included in an Annual Financial Report. Accordingly, this report is to be read in conjunction with the Annual Report for the year ended 30 June 2012 and any public announcements made by CSL Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 . In particular refer to the ASX announcement on 23 October 2012, where the Company lodged sets of financial statements for the first half and full year financial 2012, restated in US Dollars. These restated financial statements in US dollars form the prior comparable period disclosures in the Interim Financial Report.

3

CSL Limited Directors’ Report

The Board of Directors of CSL Limited has pleasure in presenting their report on the consolidated entity for the half-year ended 31 December 2012.

Directors

The following persons were Directors of CSL Limited during the whole of the half-year and up to the date of this report:

Professor J Shine, AO (Chairman) Dr B A McNamee, AO (Managing Director) Mr J H Akehurst Mr D W Anstice Mr B R Brook Ms C E O’Reilly Mr I A Renard, AM Mr M A Renshaw

Mr P J Turner was a director from the beginning of the financial year until his retirement on 17 October 2012.

Review of Operations

For the half year ended 31 December 2012, total sales revenue of the Group was $2.5 billion, up 7% compared to the prior corresponding period. Reported net profit after tax was $627 million for the six months ended 31 December 2012, up 24% when compared to the prior corresponding period. Net operating cash flow from operations was $670 million, up 24% when compared to the prior corresponding period.

CSL Behring sales of $1.96 billion grew 9% in constant currency terms, when compared to the prior comparable period.

Immunoglobulin sales of US$912 million grew 10% in constant currency terms. Demand for Privigen[®] was particularly strong in the US. Demand for subcutaneous immunoglobulin (SCIG), lead by Hizentra[®] , was robust in both the US and Europe, growing 30% when compared to the prior comparable period. The Company’s transitioning of patients from Vivaglobin[®] to new generation SCIG Hizentra[®] is now almost complete.

Albumin sales, excluding Asian sales[2] , of US$163 million grew 8% in constant currency terms. Including Asian sales, albumin sales grew 27% at constant currency. Growth was underpinned by ongoing demand in China and the favourable re-evaluation of albumin usage in intensive care units in Europe.

Haemophilia product sales of US$542 million grew 6% in constant currency terms. Volume growth for plasma derived factor VIII products was lead by Beriate[®] . Demand was particularly strong in Argentina, Poland and Brazil. This volume growth was offset to some extent by the ongoing geographic shift towards lower priced emerging markets.

Specialty products sales of US$345 million grew 15% in constant currency terms. The changing paradigm for the treatment of peri-operative bleeding has underpinned growth in demand for fibrinogen product Haemocomplettan[®] in Europe. Demand for Beriplex[®] , human prothrombin concentrate used in the emergency reversal of anticoagulation, grew well, particularly in France. Robust demand continues in the US for Berinert[®] , which is used for the treatment of acute attacks in patients with hereditary angioedema.

2 CSL Behring albumin products sold in Asia by CSL Biotherapies.

4

Other Human Health sales of US$518 million grew 19% in constant currency terms, when compared to the prior comparable period, or 9% excluding US$117 million of albumin sales into Asia. CSL’s Broadmeadow’s plant contributed US$137 million in plasma therapy sales. Also contributing to growth were influenza sales of US$97 million, boosted by solid sales into northern hemisphere markets. GARDASIL[3] sales in Australia and New Zealand were US$20m following growth in the Australian National Immunisation Program and private markets.

Intellectual Property Licensing revenue was US$72 million, which is predominantly royalty contributions from Human Papillomavirus Vaccines.

Auditor’s independence declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 6.

Rounding of Amounts

The amounts contained in this report and in the financial report have been rounded to the nearest hundred thousand dollars (where rounding is applicable) unless specifically stated otherwise under the relief available to the Company under ASIC Class Order 98/0100. The Company is an entity to which the Class Order applies.

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

John Shine AO CHAIRMAN 13 February 2013

Brian A McNamee AO

MANAGING DIRECTOR

3 GARDASIL is a trademark of Merck & Co. Inc

5

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Auditor’s Independence Declaration to the Directors of CSL Limited

In relation to our review of the financial report of CSL Limited for the half-year ended 31 December 2012, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

Ernst & Young

Glenn Carmody Partner 13 February 2013

Liability limited by a scheme approved under Professional Standards Legislation

6

CSL Limited and its controlled entities Consolidated Statement of Comprehensive Income For the half-year ended 31 December 2012

For the half-year ended 31 December 2012
		Consolidated Entity
		December	December
		2012	2011
	Notes	**US$m **	US$m
Sales revenue		2,482.3	2,324.0
Cost of sales		(1,188.9)	(1,252.9)
Gross profit		1,293.4	1,071.1
Other revenue	4(a)	101.4	105.4
Research and development expenses		(190.2)	(167.4)
Selling and marketing expenses		(242.3)	(231.5)
General and administration expenses	4(c)	(159.5)	(128.8)
Finance costs	4(b)	(24.4)	(14.9)
Profit before income tax expense		778.4	633.9
Income tax expense	5	(151.5)	(129.6)
Netprofit for theperiod		626.9	504.3
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations, net of
hedges on net foreign investments	11	129.3	(319.0)
Mark to market adjustment on available-for-sale financial assets		-	(1.0)
Items that will not be reclassified subsequently to profit or loss
Actuarial gains/(losses) on defined benefit plans, net of tax		(32.5)	(33.7)
Total of other comprehensive income/(expense)		96.8	(353.7)
Total comprehensive income for theperiod		723.7	150.6
Earnings per share(based on netprofit for theperiod)		Cents	Cents
Basic earnings per share	6	124.68	96.25
Diluted earnings per share	6	124.30	96.07

7

CSL Limited and its controlled entities Consolidated Balance Sheet As at 31 December 2012

Consolidated Balance Sheet As at 31 December 2012
		Consolidated	Entity
		December	June
		2012	2012
	Notes	**US$m **	US$m
CURRENT ASSETS
Cash and cash equivalents	7	756.7	1,171.4
Trade and other receivables		839.6	783.8
Inventories		1,537.2	1,482.7
Current tax assets		5.2	5.4
Other financial assets		1.9	1.8
Total Current Assets		3,140.6	3,445.1
NON-CURRENT ASSETS
Trade and other receivables		9.9	10.4
Other financial assets		1.0	1.1
Property, plant and equipment	8	1,561.9	1,380.9
Deferred tax assets		213.5	198.5
Intangible assets		885.5	865.3
Total Non-Current Assets		2,671.8	2,456.2
TOTAL ASSETS		5,812.4	5,901.3
CURRENT LIABILITIES
Trade and other payables		517.1	536.3
Interest-bearing liabilities	9	7.1	169.6
Current tax liabilities		138.0	141.7
Provisions		97.2	100.3
Deferred government grants		1.0	1.0
Derivative financial instruments		0.8	1.4
Total Current Liabilities		761.2	950.3
NON-CURRENT LIABILITIES
Trade and other payables		14.4	15.4
Interest bearing liabilities	9	1,120.7	1,120.0
Deferred tax liabilities		115.5	111.1
Provisions		29.2	28.0
Deferred government grants		41.9	30.2
Retirement benefit liabilities	14	217.8	169.6
Total Non-Current Liabilities		1,539.5	1,474.3
TOTAL LIABILITIES		2,300.7	2,424.6
NET ASSETS		3,511.7	3,476.7
EQUITY
Contributed equity	10	(1,322.0)	(869.1)
Reserves	11	773.5	632.9
Retained earnings		4,060.2	3,712.9
TOTAL EQUITY		3,511.7	3,476.7

8

CSL Limited and its controlled entities Consolidated Statement of Changes in Equity For the half year ended 31 December 2012

Ordinary shares US$m Foreign currency translation reserve US$m Share based payment reserve US$m Available- for-sale investment reserve US$m Retained earnings US$m Total US$m At 1 July 2012 (869.1) 536.6 96.3 - 3,712.9 3,476.7 Profit for the period - - - - 626.9 626.9 Other comprehensive income - 129.3 - - (32.5) 96.8	Ordinary shares US$m Foreign currency translation reserve US$m Share based payment reserve US$m Available- for-sale investment reserve US$m Retained earnings US$m Total US$m At 1 July 2012 (869.1) 536.6 96.3 - 3,712.9 3,476.7 Profit for the period - - - - 626.9 626.9 Other comprehensive income - 129.3 - - (32.5) 96.8	Ordinary shares US$m Foreign currency translation reserve US$m Share based payment reserve US$m Available- for-sale investment reserve US$m Retained earnings US$m Total US$m At 1 July 2012 (869.1) 536.6 96.3 - 3,712.9 3,476.7 Profit for the period - - - - 626.9 626.9 Other comprehensive income - 129.3 - - (32.5) 96.8	Ordinary shares US$m Foreign currency translation reserve US$m Share based payment reserve US$m Available- for-sale investment reserve US$m Retained earnings US$m Total US$m At 1 July 2012 (869.1) 536.6 96.3 - 3,712.9 3,476.7 Profit for the period - - - - 626.9 626.9 Other comprehensive income - 129.3 - - (32.5) 96.8
Total comprehensive income for the half year - 129.3 - - 594.4 723.7 Transactions with owners in their capacity as owners Share based payments 11 - - 11.3 - - 11.3
Dividends 12 - Share buy back 10 (473.6) Share issues - Employee share scheme 10 29.5 Tax adjustment 10 (8.8)	-	-	- (247.1) (247.1) - - (473.6) - - 29.5 (8.8)
	-	-
	-	-
Balance as at 31 December 2012 (1,322.0)	665.9	107.6	- 4,060.2 **3,511.7 **
At 1 July 2011 (228.0) 901.1 82.2 (1.2) 3,162.5 3,916.6 Profit for the period - - - - 504.3 504.3 Other comprehensive income - (319.0) - (1.0) (33.7) (353.7)
Total comprehensive income for the half year - (319.0) - (1.0) 470.6 150.6 Transactions with owners in their capacity as owners
Share based payments 11 - Dividends 12 - Share buy back 10 (181.8) Share issues - Employee share scheme 10 3.8	-	6.4	- - 6.4 - (231.0) (231.0) - - (181.8) - - 3.8
	-	-
	-	-
	-	-
Balance as at 31 December 2011 (406.0)	**582.1 **	88.6	(2.2) 3,402.1 3,664.6

9

CSL Limited and its controlled entities Consolidated Statement of Cash Flows For the half-year ended 31 December 2012

CSL Limited and its controlled entities Consolidated Statement of Cash Flows For the half-year ended 31 December 2012	CSL Limited and its controlled entities Consolidated Statement of Cash Flows For the half-year ended 31 December 2012	CSL Limited and its controlled entities Consolidated Statement of Cash Flows For the half-year ended 31 December 2012	CSL Limited and its controlled entities Consolidated Statement of Cash Flows For the half-year ended 31 December 2012
Consolidated Entity
December December 2012 2011 Notes US$m US$m
Cash flows from Operating Activities Receipts from customers (inclusive of goods and services tax) 2,564.4 2,430.7 Payments to suppliers and employees (inclusive of goods and services tax) (1,722.0) (1,747.8)
842.4 682.9
Interest received Income taxes paid Borrowingcosts		19.7	9.2 (140.9) (12.4)
		(167.8)
		(24.1)
Net cash inflow /(outflow)from operatingactivities 670.2 538.8
Cash flows from Investing Activities Proceeds from sale of property, plant and equipment - 0.4 Payments for property, plant and equipment (231.9) (147.6) Payments for intangible assets (5.2) (5.4) Receipts from other financial assets 0.2 0.8
Net cash inflow /(outflow)from investingactivities (236.9) (151.8)
Cash flows from Financing Activities Proceeds from issue of shares 29.5 4.0 Payment for shares bought back (480.8) (181.8) Dividends paid (247.1) (231.0) Receipts on closure of foreign exchange hedges 0.1 0.6 Proceeds from borrowings 9 - 1,112.4 Repayment of borrowings 9 (170.0) (242.2)
Net cash inflow /(outflow)from financingactivities (868.3) 462.0
Net increase (decrease) in cash and cash equivalents (435.0) 849.0 Cash and cash equivalents at the beginning of the period 1,168.2 514.6 Exchange rate variations on foreign cash and cash equivalent balances 18.5 (46.4)
Cash and cash equivalents at the end of theperiod 751.7 1,317.2
Reconciliation of cash and cash equivalents Cash and cash equivalents at the end of the period as shown in the statement of cash flows is reconciled as follows: Cash and cash equivalents 7 756.7 1,317.2 Bank overdrafts (5.0) -
751.7 1,317.2

10

CSL Limited and its controlled entities Notes to the financial statements For the half-year ended 31 December 2012

1 Corporate Information

The financial report of CSL Limited (the Company) for the half-year ended 31 December 2012 was authorised for issue in accordance with a resolution of the directors on 13 February 2013. CSL Limited is a company incorporated in Australia and limited by shares, which are publicly traded on the Australian Stock Exchange.

The nature of the operations and principal activities of the Group are described in the Directors’ Report.

2 Summary of Significant Accounting Policies

(a) Basis of Accounting

The half-year 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 2012.

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 2012 in accordance with the continuous disclosure obligations arising under ASX listing rules.

(b) Basis of Preparation

The half-year consolidated 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 134 Interim Financial Reporting and other mandatory professional reporting requirements. The half-year financial report has been prepared on a historical cost basis, as modified by the revaluation of available-for-sale financial assets, financial assets and liabilities (including derivative instruments) at fair value through profit or loss, and land and buildings.

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

The consolidated Financial Statements are presented in US Dollars, following the announcement in February 2012 that the company was moving to US Dollar reporting for the 2012/13 financial year.

(c) Significant Accounting Policies

The half-year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2012.

The change in presentation currency from Australian dollars to US dollars represents a voluntary change in accounting policy which has been applied retrospectively. US dollars are the pharmaceutical industry standard currency for reporting purposes. The move also reflects the predominance of the Company’s worldwide sales and operations in US dollars.

(d)

Basis of Consolidation

The half-year consolidated financial statements comprise the financial statements of CSL Limited and its subsidiaries as at 31 December 2012 ('the Group').

11

CSL Limited and its controlled entities Notes to the financial statements For the half-year ended 31 December 2012

3 Segment Information

Reportable segments are:

• (a) CSL Behring – manufactures, markets and develops plasma products.

• (b) Intellectual Property Licensing – revenue and associated expenses from the licensing of Intellectual Property generated by the Group to unrelated third parties.

• (c) Other Human Health – comprises CSL Biotherapies, which manufactures, markets and develops biotherapeutic products, and Research & Development.

Research & Development expense is allocated in accordance with management’s expectation as to where a project’s value will be realised. Where this is uncertain the expense is allocated to Other Human Health.

		Intellectual	Other
		Property	Human	Intersegment	Consolidated
	CSL Behring	Licensing	Health	Elimination	Group
	December	December	December	December	December
	2012	2012	2012	2012	2012
	**US$m **	**US$m **	**US$m **	**US$m **	**US$m **
Sales to external customers	1,964.3	-	518.0	-	2,482.3
Inter-segment sales	122.3	-	-	(122.3)	-
Other revenue / Other income (excl interest income)	1.9	71.9	10.2	-	84.0
Total segment revenue	2,088.5	71.9	528.2	(122.3)	2,566.3
Interest income					17.1
Unallocated revenue / income					0.3
Consolidated revenue					2,583.7
Segment EBIT4	797.3	61.7	(40.3)	-	818.7
Unallocated revenue / income less
unallocated costs					(33.0)
Consolidated EBIT					785.7
Interest income					17.1
Finance costs					(24.4)
Consolidated profit before tax					778.4
Income tax expense					(151.5)
Consolidated netprofit after tax					626.9
Amortisation	14.8	-	-	-	14.8
Depreciation	48.1	-	32.2	-	80.3
Segment EBITDA5	860.2	61.7	(8.1)	-	913.8
Unallocated revenue / income less
unallocated costs					(33.0)
Unallocated depreciation and amortisation					2.8
Consolidated EBITDA					883.6

4 Segment EBIT is a measure of operating profit for the segment. It reflects all transactions recorded in that segment with the exception of interest income, interest expense and income tax expense.

[5] Segment EBITDA is Segment EBIT plus charges for depreciation of tangible fixed assets and amortisation of intangible assets employed in that segment.

12

CSL Limited and its controlled entities Notes to the financial statements For the half-year ended 31 December 2012

3 Segment information (continued)

		Intellectual	Other
		Property	Human	Intersegment	Consolidated
	CSL Behring	Licensing	Health	Elimination	Group
	December	December	December	December	December
	2012	2012	2012	2012	2012
	US$m	US$m	US$m	US$m	US$m
Segment assets	4,444.7	24.0	1,170.3	(165.9)	5,473.1
Other unallocated assets					2,064.3
Elimination of amounts between operating
segments and unallocated					(1,725.0)
Total assets					5,812.4
Segment liabilities	1,978.6	5.4	1,226.6	(165.9)	3,044.7
Other unallocated liabilities					981.0
Elimination of amounts between operating
segments and unallocated					(1,725.0)
Total liabilities					2,300.7

		Intellectual	Other
		Property	Human	Intersegment	Consolidated
	CSL Behring	Licensing	Health	Elimination	Group
	December	December	December	December	December
	2011	2011	2011	2011	2011
	**US$m **	**US$m **	**US$m **	**US$m **	**US$m **
Sales to external customers	1,883.2	-	440.8	-	2,324.0
Inter-segment sales	66.9	-	-	(66.9)	-
Other revenue / Other income (excl interest
income)	2.6	82.4	4.9	-	89.9
Total segment revenue	1,952.7	82.4	445.7	(66.9)	2,413.9
Interest income					14.9
Unallocated revenue / income					0.6
Consolidated revenue					2,429.4
Segment EBIT	583.3	72.9	(5.1)	-	651.1
Unallocated revenue / income less unallocated
costs					(17.2)
Consolidated EBIT					633.9
Interest income					14.9
Finance costs					(14.9)
Consolidated profit before tax					633.9
Income tax expense					(129.6)
Consolidated netprofit after tax					504.3
Amortisation	14.8	-	-	-	14.8
Depreciation	48.9	-	20.1	-	69.0
Segment EBITDA	647.0	72.9	15.0	-	734.9
Unallocated revenue / income less unallocated
costs					(17.3)
Unallocated depreciation and amortisation					2.5
Consolidated EBITDA					720.1

13

CSL Limited and its controlled entities Notes to the financial statements For the half-year ended 31 December 2012

3 Segment information (continued)

		Intellectual	Other
	CSL	Property	Human	Intersegment	Consolidated
	Behring	Licensing	Health	Elimination	Group
	June	June	June	June	June
	2012	2012	2012	2012	2012
	**US$m **	**US$m **	**US$m **	**US$m **	**US$m **
Segment assets	4,270.9	21.2	1,087.3	(168.2)	5,211.2
Other unallocated assets					1,598.1
Elimination of amounts between operating segments and unallocated					(908.0)
Total assets					5,901.3
Segment liabilities	1,856.6	4.0	496.8	(168.2)	2,189.2
Other unallocated liabilities					1,143.4
Elimination of amounts between operating segments and unallocated					(908.0)
Total liabilities					2,424.6

Geographic areas	Australia US$m	United States US$m	Switzerland US$m	Germany US$m	Rest of world US$m	Total US$m
December 2012 External sales revenue	308.5	946.4	70.9	385.8	770.7	2,482.3
December 2011 External sales revenue	286.3	899.0	76.6	356.9	705.2	2,324.0

14

CSL Limited and its controlled entities Notes to the financial statements For the half-year ended 31 December 2012

4 Revenue, Income and Expenses from continuing operations

4	Revenue, Income and Expenses from continuing operations
		Consolidated Entity
		December	December
		2012	2011
		US$m	US$m
(a)	Other Revenue
	Interest income	17.1	14.9
	Rent	0.7	0.6
	Royalties	68.4	64.6
	Sundry	**15.2 **	25.3
		**101.4 **	105.4
(b)	Finance Costs
	Interest paid / payable	24.4	14.9
(c)	Other Expenses
	General and administration expenses:
	Expense of share based payments	23.2	11.7
	Amortisation of intellectual property and software	14.8	14.8
	Other relevant expenses
	Depreciation and amortisation of property, plant and equipment	83.1	71.5
	Net foreign exchange losses	3.3	4.7

5 Income Tax

The reconciliation between income tax expense and the consolidated entity’s applicable tax rate is as follows:

Profit from continuingactivities before income tax expense	778.4 633.9	778.4 633.9
Income tax calculated at 30% Tax effect of non-assessable / non-deductible items	233.5 190.2
Research and development Other (non-assessable revenue)/non-deductible expenses Effects of different rates of tax on overseas income Under(over) provision inpreviousyear	(7.9)	(6.4) 2.1 (53.7) (2.6)
	(2.3)
	(74.3)
	2.5
Income tax expense	151.5 129.6

15

CSL Limited and its controlled entities Notes to the financial statements For the half-year ended 31 December 2012

6 Earnings Per Share

6 Earnings Per Share
	Consolidated Entity
	December	December
	2012	2011
	US$m	US$m
The following reflects the income and share information used in the
calculation of basic and diluted earnings per share:
Earnings used in calculatingbasic earningsper share	626.9	504.3
	Number of shares
	December	December
	2012	2011
Weighted average number of ordinary shares used in the calculation of basic
earnings per share:	502,807,390523,991,134
Effect of dilutive securities:
Share options	589,189	107,358
Performance rights	935,837	898,462
Global employee shareplan	11,465	7,377
Adjusted weighted average number of ordinary shares used in calculating
diluted earningsper share	504,343,881 525,004,331

Refer to note 10 for a reconciliation of the movement in issued shares.

Conversions, calls, subscription or issues after 31 December 2012

Subsequent to the reporting date 6,635 ordinary shares were issued, as required under the Employee Performance Rights Plan. There have been no other ordinary shares issued since the reporting date and before the completion of this financial report. There have been no other conversions to, calls of, or subscriptions for ordinary shares or issues of potential ordinary shares since the reporting date and before the completion of this financial report.

7 Cash and cash equivalents

Cash and cash equivalents
	Consolidated	Entity
	December	June
	2012	2012
	US$m	US$m
Cash at bank and on hand	278.0	342.3
Cash deposits	**478.7 **	829.1
Total cash and cash equivalents	**756.7 **	1,171.4

8 Property, Plant and Equipment

During the half-year ended 31 December 2012, the Group acquired assets with a cost of $225.0m (2011: $148.4m).

16

CSL Limited and its controlled entities Notes to the financial statements For the half-year ended 31 December 2012

9 Borrowings and repayments

For the half year ended 31 December 2012, the Group has repaid US$170.0m of interest bearing debt, made up of US$2.0m for finance lease repayments, and the repayment of US$168.0m for the 2002 US Private Placement issue.

As at balance date the Group had US$458m in undrawn liquidity available under its bank debt facilities.

10 Contributed Equity

10 Contributed Equity
	Consolidated	Entity
	December	June
	2012	2012
	US$m	US$m
Ordinary shares issued and fully paid	-	-
Share buy-back reserve	(1,322.0)	(869.1)
Total contributed equity	(1,322.0)	(869.1)

Ordinary shares have the right to receive dividends as declared and, in the event of winding up the company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or proxy, at a meeting of the company.

Due to share buy-backs, the balance for ordinary share contributed equity has been reduced to nil, and a reserve created to reflect the excess of shares bought over the original amount of subscribed capital.

Movements in the contributed equity

Movements in the contributed equity
	Number of	US$m
	Shares
Ordinary shares
Balance as at 1July 2012	506,929,847	(869.1)
Shares issued to CSL employees through participation in:
- Performance Option Plan	740,696	26.7
- Performance Rights Plan	285,898	-
- Global Employee Share Plan	95,521	2.8
Shares acquired under the Share Buy Back	(9,859,292)	(473.6)
Tax adjustment	-	(8.8)
Balance as at 31 December 2012	498,192,670	(1,322.0)

17

CSL Limited and its controlled entities Notes to the financial statements For the half-year ended 31 December 2012

11 Reserves

Reserves
	Consolidated	Entity
	December	June
	2012	2012
	US$m	US$m
Composition
Share based payments reserve (i)	107.6	96.3
Foreign currencytranslation reserve(ii)	665.9	536.6
	773.5	632.9

Nature and purpose of reserves

(i) Share based payments reserve

The share based payments reserve is used to recognise the fair value of options and performance rights issued but not exercised.

(ii) Foreign currency translation reserve

Following the change in presentation currency from Australian dollars to US dollars (note 2c), the results are translated into US dollars at average exchange rates for subsidiaries with a functional currency other than US dollars. For those subsidiaries assets and liabilities are translated to US dollars at exchange rates prevailing at balance date and resulting exchange differences are recognised in the foreign currency translation reserve in equity. On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such investments, are taken to the foreign currency translation reserve in equity.

12 Dividends

12 Dividends	12 Dividends	12 Dividends
Consolidated Entity December December 2012 2011 US$m US$m Ordinary shares Dividendsprovided for orpaid duringthe half-year 247.1 231.0
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 50.00 US cents (2011 – 37.57 US cents) per fully paid ordinary share, unfranked. The aggregate amount of the proposed interim dividend expected to be paid on 5 April 2013 out of retained earnings at 31 December 2012,but not recognised as a liabilityat the end of the half-year,is:		195.1
	**249.1 **

18

CSL Limited and its controlled entities Notes to the financial statements For the half-year ended 31 December 2012

13 NTA Backing

NTA Backing
	December	June
	2012	2012
	$	$
Net tangible asset backing per ordinarysecurity	5.27	5.15

14 Retirement Benefit Liabilities

The Group sponsors a range of defined benefit pension plans that provide pension benefits for its worldwide employees upon retirement. Entities of the Group who operate the defined benefit plans contribute to the respective plans in accordance with the Trust Deeds, following the receipt of actuarial advice.

	December
	2012
	US$m
Movements in the net liability for defined benefit obligations recognised
in the balance sheet
Net liability for defined benefit obligation:
Opening balance	169.6
Contributions received	(5.1)
Benefits paid	(4.7)
Expense recognised in the statement of comprehensive income	14.3
Actuarial losses recognised in equity	36.9
Currencytranslation differences	6.8
Closingbalance	217.8

Defined Benefit Plan liabilities are discounted to present value using a corporate or government bond rate as at the date of the Actuarial assessment. Over the six months to December 2012 most jurisdictions in which the Group operates Defined Benefit Plans have experienced reductions in the appropriate discount rate.

	December	June
	2012	2012
The principal actuarial assumptions at the balance sheet date (expressed
as weighted averages) are as follows:
Discount rate	2.4%	3.0%
Expected return on assets and expected long-term rate of return on assets1	2.5%	3.4%
Future salary increases	2.4%	2.3%
Future pension increases	0.4%	0.4%

1Expressed as per annum return. The expected rate of return is based on the portfolio as a whole.

19

CSL Limited and its controlled entities Notes to the financial statements For the half-year ended 31 December 2012

15 Share Based Payment Plans

(a) Long Term Incentives

On 1 October 2012, 247,780 performance rights were granted to senior executives under the CSL Performance Rights Plan. The exercise price for the performance rights is Nil. The performance rights will become exercisable between 30 September 2015 and 30 September 2017. The fair value of the performance rights granted is estimated as at the date of grant using an adjusted form of the Black-Scholes model, taking into account the terms and conditions upon which the performance rights were granted.

Performance rights granted in October 2012 have two performance hurdles with each hurdle applying to half of each tranche. The performance rights tested against an Earnings per Share (EPS) hurdle will vest on a sliding scale with 50% of the rights vesting if the group achieves 8% compound annual growth in USDdenominated EPS over the relevant period, rising to 100% vesting if the compound annual growth rate in USD-denominated EPS reaches 12% over the relevant period. The performance rights tested against a comparator group will only vest if the total shareholder return for CSL, denominated in USD, exceeds the growth in the MSCI Gross Pharma Index for the relevant period.

The following table lists the inputs to the model used for performance rights issued in the half-year ended 31 December 2012:

December 2012 Dividend yield (%) 2.0% Expected volatility (%) 21.0% Risk-free interest rate (%) 2.50%

Fair Value of Performance Rights 3 year vesting $35.52 4 year vesting $34.69

(b) Executive Deferred Incentive Plan

On 1 October 2012, 408,950 phantom shares were granted to employees under the Executive Deferred Incentive Plan. This plan provides for a grant of phantom shares which will generate a cash payment to participants in three years time, provided they are still employed by the company and receive a satisfactory performance review over that period. The amount of the cash payment will be determined by reference to the CSL share price immediately before the three year anniversary.

The following table lists the inputs to the model used for grant issued in the half-year ended 31 December 2012:

	December
	2012
Dividend yield (%)	2.0%
Fair Value of Grant at reporting date, adjusted for the dividend yield and the number	$50.36
of days left in the vesting period

20

CSL Limited and its controlled entities Notes to the financial statements For the half-year ended 31 December 2012

16 Commitments and contingencies

(a) Capital commitments

Capital commitments
	December	June
	2012	2012
	US$m	US$m
During the half year, the capital expenditure contracted for but not provided
for in the financial statements, payable:
Not later than one year	136.9	123.7
Later than one year but not later than five years	12.3	78.5
Later than fiveyears	-	-
	**149.2 **	202.2

(b) Contingent assets and liabilities

Litigation

The Group is involved in litigation in the U.S. claiming that the Group and a competitor, along with an industry trade association, conspired to restrict output and fix and raise prices of certain plasma-derived therapies in the U.S. The lawsuits, filed by representative plaintiffs, seek status to proceed as class actions on behalf of ‘all others similarly situated’. The Group believes the litigation is unsupported by fact and without merit and will robustly defend the claims.

The Group is involved in other litigation in the ordinary course of business.

The directors believe that future payment of a material amount in respect of litigation is remote. The Group has disclaimed liability for, and is vigorously defending, all current material claims and actions that have been made.

21

CSL Limited Directors’ Declarations

The directors declare that:

• (a) the financial statements and notes of the consolidated entity are in accordance with the Corporations Act 2001, and:

• (i) give a true and fair view of the financial position as at 31 December 2012 and the performance for the half-year ended on that date of the consolidated entity; and

• (ii) comply with Accounting Standard AASB 134 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.

Made in accordance with a resolution of directors.

John Shine AO Chairman Melbourne 13 February 2013

Brian A McNamee AO Managing Director

22

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To the members of CSL Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of CSL Limited, which comprises the consolidated balance sheet as at 31 December 2012, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001and for such internal controls as the directors determine are necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2012 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of CSL Limited and the entities it controlled during the half-year, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is included in the Directors’ Report.

Liability limited by a scheme approved under Professional Standards Legislation.

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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of CSL Limited is not in accordance with the Corporations Act 2001, including:

• a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2012 and of its performance for the half-year ended on that date; and

• b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Ernst & Young

Glenn Carmody Partner Melbourne 13 February 2013

2012/13 Half Year Result 13 February 2013

Forward looking statements

The materials in this presentation speak only as of the date of these materials, and include forward looking statements about CSL Limited and its related bodies corporate (CSL) financial results and estimates, business prospects and products in research, all of which involve substantial risks and uncertainties, many of which are outside the control of, and are unknown to, CSL. You can identify these forward looking statements by the fact that they use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “may,” “assume,” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Factors that could cause actual results to differ materially include: the success of research and development activities, decisions by regulatory authorities regarding approval of our products as well as their decisions regarding label claims; competitive developments affecting our products; the ability to successfully market new and existing products; difficulties or delays in manufacturing; trade buying patterns and fluctuations in interest and currency exchange rates; legislation or regulations that affect product production, distribution, pricing, reimbursement or access; litigation or government investigations, and CSL’s ability to protect its patents and other intellectual property. The statements being made in this presentation do not constitute an offer to sell, or solicitation of an offer to buy, any securities of CSL.

No representation, warranty or assurance (express or implied) is given or made in relation to any forward looking statement by any person (including CSL). In particular, no representation, warranty or assurance (express or implied) is given in relation to any underlying assumption or that any forward looking statement will be achieved. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based.

Subject to any continuing obligations under applicable law or any relevant listing rules of the Australian Securities Exchange, CSL disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in these materials to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any such statement is based. Nothing in these materials shall under any circumstances create an implication that there has been no change in the affairs of CSL since the date of these materials.

Trademarks

Except where otherwise noted, brand names designated by a ™or ® throughout this presentation are trademarks either owned by and/or licensed to CSL or its affiliates.

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Total sales US$2.5billion, up 7% (up 11% CC[1] ) EBIT US$786 million, up 24% NPAT US$627 million, up 24% (up 25% CC[1] ) EPS 124.7 US cents, up 30% R&D investment US$190 million, up 14% Cashflow from operations US$670 million, up 24% Strong balance sheet Interim dividend increased to US50 cents (unfranked)

1. Constant Currency (CC) removes the impact of exchange rate movements to facilitate comparability. See end note for further detail.

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Margin expansion arising from operational efficiencies Strengthening presence in emerging markets Australian operations reorganised

• CSL Behring, Broadmeadows - plasma operations

• bioCSL – vaccines, pharmaceutical and diagnostics businesses

• Facilties expansion – investing for growth Capital Management

• Current buyback[1] ~21% complete

• New ~US$300m private placement foreshadowed

1. CSL reserves the right to suspend, terminate or extend the buyback at any time

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Product
Pharma &
vaccines 10%
Groupings
Specialty
Products
14%
Other
6%
IVIG 29%
Peri-op 6%
Wound 2%
Healing
Albumin 12%
SCIG 8%
rFVIII
pd Coag 13%
10%
Hyper IG 4%
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* Product groupings combine CSL Behring & Broadmeadow’s sales

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ROW 9% Australia 10% Europe 29%

1H2013 US$2.5Bn

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FY2013 NPAT growth ~20% @ CC

EPS will exceed NPAT growth driven by past and current capital management initiatives

FY2013 EPS growth ~24% @ CC

Outlook statements are subject to:

Material price and volume movements on core plasma products, competitor activity, changes in healthcare regulations and reimbursement policies, royalties arising from the sale of Human Papillomavirus vaccine, implementation of the Company’s influenza strategy and plasma therapy life cycle management strategies, enforcement of key intellectual property, regulatory risk, litigation, the effective tax rate and foreign exchange movements.

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Product sales US$1,962m up 9% at CC Normal immunoglobulin sales up 11% at CC Albumin sales up 8% at CC

• Including Asian sales – albumin growth up 27% at CC

• Pipeline effect

Strong plasma derived coagulation product sales growth Specialty products sales up 15% at CC Operational efficiencies

• Plasma collections

• Manufacturing scale

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US$M

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US$1,962m
2,000
US$1,862m
Specialty
1,800
Products
1,600
1,400
1,200 Immunoglobulins
1,000
800
Albumin
600
400 pdCoag
200
Helixate
0
Dec 11 Dec 12
Sales for the 6 month period
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US$M

1,000

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900
800
700
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600
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500
400
300
200
100
0
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US$912m

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US$853m
IVIG
SCIG
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Dec 12
Dec11
Sales for the 6 month period
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Highlights

Normal IG up 11% in CC terms

IVIG

• US – strong demand for Privigen[®]

• European tendering competitive

• SCIG demand

  • EU & US

• Migration to Hizentra[®] from Vivaglobin[®] nearly complete

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US$M

300

250

200

150

100

50

US$225m

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US$157m

US$280m Asia* US$163m

Highlights

Up 8% in CC terms Including Asian sales, up 27%

Asia

• Strong demand growth

• Transition benefits in China

• Europe

• Favourable re-evaluation of albumin usage in intensive care units

0

Dec 11

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Dec 12
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Sales for the 6 month period

* CSL Behring albumin sold in Asia by CSL Biotherapies

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US$M

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600
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500
400
300
200
100
0
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US$542m
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US$537m
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pdCoag
Helixate
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Highlights

Up 6% in CC terms

PdFVIII

• Beriate[®] demand growth in Argentina, Poland & Brazil

• Geographic shift towards lower priced emerging markets

Helixate[®]

• Conditions steady

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Dec 11 Dec 12
Sales for the 6 month period
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400US$M

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350
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300
250
200
150
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100
50
0
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US$345m
Other
Specialty
Products
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US$316m
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Other
Specialty
Products
Peri-
Operative
Bleeding
Wound
Healing
Dec 11 Dec 12
Sales for the 6 month period
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Highlights

Up 15% in CC terms

Other Speciality Products

• Berinert[® ] P – US demand strong

Peri-operative Bleeding

• Haemocomplettan[® ] / RiaSTAP[®] changing treatment paradigm for Peri-Operative Bleeding.

• Beriplex[®] - strong demand in France

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US$M

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500
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400

300

200

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100
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0
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US$518m
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Asia [#]
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US$441m
+9%
@ CC
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US$401m
US$373m
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Dec 11 Dec 12
Sales for the 6 month period
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Highlights

Up 19% in CC terms Excluding Asian albumin sales, up 9% @CC

• Albumin sales growth in Asia

• Broadmeadows plasma therapy sales $137m

• Influenza sales $97m

• Gardasil[*] sales growth in Australian NIP and private markets

• Gardasil is a trademark of Merck & Co. Inc

• # CSL Behring albumin sold in Asia by CSL Biotherapies

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• rIX-FP (rec fusion protein linking factor IX with albumin) • Enrolment of first patient in paediatric phase II/III pivotal study

• rVIIa-FP (rec fusion protein linking factor VIIa with albumin)

• Completion of phase I study in healthy volunteers

• rVIII-SingleChain

• Continuation of phase I study in Haemophilia A patients

• Early data support potential half life extension

• Hizentra[®]

• NDA for PID indication submitted to Japan PMDA

• Privigen[®]

• Dossier submitted to EMA for CIDP indication

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Berinert[®]

• Recruitment complete in subcutaneous prophylaxis phase II study

• Corifact[®]

• FDA approval for expanded indication

• Prophylactic and surgical indications for FXIII deficiency

• CSL112 (reconstituted HDL)

• Rapidly enhances capacity of plasma to promote cholesterol efflux

• Phase IIa study completed

CSL362 (anti-IL-3Ra mAb)

• Commencement of phase I study in AML

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Business Performance 1H13

Financial Detail

1H 2013 Net Profit after Tax up 24 % (up 25% @ CC)

US$627m +24% US$504m Reported NPAT

Reported NPAT

Notable items

• R&D spend phasing

• Change of business model in China

• Gardasil*

Company reorganisation

• Effective 1 Jan 2013

• New segment reporting commencing FY2013

• Historical data lodged with the ASX in June 2013

Dec 11 Dec 12

NPAT for the 6 month period

* Gardasil is a trademark of Merck & Co.

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Reported USD EBIT Margin

% 35 30 25 20 Influencing Margin Investing in the Future Currency & Timing R&D growth supported 15 Sales mix Expanding commercial footprint Improved efficiencies 10  Plasma collections  Manufacturing efficiencies 5 0

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Financial Discipline

1H12 1H13 Cashflow from operations $539m $670m Capital Investment $153m $237m Days receivable 57 53 Cash cycle - days 154 151 Cash conversion % 96.1 97.6

- Balance Sheet Strength -

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Facilities Expansion Investing for Growth

Recombinant Cell Culture Facility

• Clinical production targeted for later this year

• Privigen

• Commercial start up of Broadmeadows facility in 2016

• Albumin & Base Fractionation

• Capacity expansion at Kankakee, Bern & Marburg sites

• Kankakee base fractionation expansion complete 2014

• Plasma

• 4 centres opened in the USA - 6 centres later this year

• Building second plasma logistics centre

• Laboratory expansion - construction commenced

• Transitioning to in-house nucleic acid testing

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Transition to USD reporting

Dividends

Payment date brought forward to 5 April Determined & paid in USD

Australian and New Zealand residents continue to be paid in local currency

• Translation as at determination date

Foreign Exchange Exposure Key remaining exposures

• USD/CHF

• USD/EUR

Profit line volatility reduced

• Transaction & translation FX largely offset

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Capital Management

Debt Refinancing

• New ~US$300 million private placement in the US

• Fund capital management plan and/or for general corporate purposes

• Tenor of facilities designed to balance debt maturity profile

• CSL upgraded to NAIC-1* - the highest US private debt rating

On Market Buyback

• A$900m buyback[**] As at 13 February 2013

• ~3.7 million shares repurchased for $190m

• ~21% complete

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Indicative Debt Maturity
US$m
Profile
400
300
200
100
0
FY17 FY19 FY21 FY23 FY25 FY27
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• NAIC – National Association of Insurance Commissioners

• ** CSL reserves the right to suspend, terminate or extend the buyback at any time

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Biotech AML, RA

Immunoglobulins Privigen[®] Hizentra[®]

Emerging markets Albumin, FVIII

Specialty products RiaSTAP[®] , Beriplex[®] , Cytogam[®] , Berinert[®] , Zemaira[®]

Recombinant Coagulation Factors rIX-FP, rVIIa-FP, rVIII-SingleChain

New Plasma Fractions rHDL

Market growth All products

R&D capabilities - Financial strength

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2012/13 Half Year Result 13 February 2013

Six months ended December US$ Millions	Dec 2011 Reported Dec 2012 Reported Dec 2012 CC1 Change %
Sales Other Revenue / Income Total Revenue / Income	2,324 91 2,414 2,482 84 2,567 2,568 84 2,652 10.5%
Earnings before Interest, Tax, Depreciation & Amortisation Depreciation/Amortisation Earnings before Interest and Tax Net Interest Expense / (Income) Tax Expense Net Profit after Tax Interim Dividends (cents) Basic EPS (cents)	720 884 898 24.7% 86 634 98 786 102 796 25.6% - 130 7 152 7 157
	504 627 632 25.4%
	37.57 96.3 50.00 124.7 125.7 30.5%

1. Constant Currency (CC) removes the impact of exchange rate movements to facilitate comparability. See end note for further detail.

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Six months ended December	1H12 USD$M 1H13 USD$M 1H13 USD$M CC1 Change %	1H12 USD$M 1H13 USD$M 1H13 USD$M CC1 Change %
rFVIII pdCoag Albumin (excludes Asian sales) Immunoglobulins Specialty Products - Wound healing - Peri-operative bleeding - Other specialty products	257 280 157 853 316 53 126 137 246 296 163 912 345 52 147 146	258 312 169 936 363 53 160 151 0% 12% 8% 10% 15% - % 27% 10%
Total Product Sales Other sales (mainly plasma) Total Sales	1,862 21 1,883 1,962 2 1,964 2,038 9%

1. Constant Currency (CC) removes the impact of exchange rate movements to facilitate comparability. See end note for further detail.

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Notes

Constant currency removes the impact of exchange rate movements to facilitate comparability by restating the current year’s results at the prior year’s rates. This is done in two parts: a) by converting the current year net profit of entities in the group that have reporting currencies other than US Dollars at the rates that were applicable to the prior year (“translation currency effect”) and comparing this with the actual profit of those entities for the current year; and b) by restating material transactions booked by the group that are impacted by exchange rate movements at the rate that would have applied to the transaction if it had occurred in the prior year (“transaction currency effect”) and comparing this with the actual transaction recorded in the current year. The sum of translation currency effect and transaction currency effect is the amount by which reported net profit is adjusted to calculate the result at constant currency.

Summary NPAT

Reported Net Profit after Tax US$ 626.9m Translation Currency Effect (1) US$ 60.5m Transaction Currency Effect (2) US$ (55.6)m Constant Currency Net Profit after Tax * US$ 631.8m a) Translation Currency Effect US$60.5m

Average Exchange rates used for calculation in major currencies were as follows:

Six months ended Dec 11 Dec 12 USD/CHF 0.85 0.95 USD/EUR 0.71 0.79

b) Transaction Currency Effect US$(55.6m)

Transaction currency effect is calculated by reference to the applicable prior year exchange rates. The calculation takes into account the timing of sales both internally within the CSL Group (ie from a manufacturer to a distributor) and externally (ie to the final customer) and the relevant exchange rates applicable to each transaction.

Summary Sales

Reported Sales $2,482.3m Currency Effect (c) $85.3m Constant Currency Sales * $2,567.6m

c) Constant Currency Effect $85.3m

Constant currency effect is presented as a single amount due to the complex and interrelated nature of currency impact on sales.

* Constant currency net profit after tax and sales has not been audited or reviewed in accordance with Australian Auditing Standards

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