CSL Ltd. — Investor Presentation 2003

Aug 3, 2003

4 August 2003

Mr James Gerraty Manager Listings Australian Stock Exchange Limited 530 Collins Street MELBOURNE VIC 3000

Dear Mr Gerraty

CSL advises that its Managing Director, Dr Brian McNamee, will be making a presentation to financial analysts at 3.30 p.m. today relating to the future supply of plasma products by CSL to the National Blood Authority.

The presentation materials are available to any interested parties on the Company's website at www.csl.com.au under the heading "Plasma Fractionation Agreement Update" and are also herewith attached for general information purposes only.

Yours sincerely

Peter Turvey COMPANY SECRETARY

CSL Bioplasma and the Plasma Fractionation Agreement

The Stephen Review (March 2001)

Safe, adequate, secure and affordable supply of blood and blood products for Australia

• Safety and quality Review:
• Management and governance
• System wide decision making processes
• Self sufficiency
• Role of the National Fractionator

Key recommendations for plasma products

• Reaffirmation of the policy of Self Sufficiency ۰
• Voluntary donors
• Products provided free to all patients
• Establish a National Blood Authority $\bullet$
• Provide national management and oversight
• Ensure efficiency and equity
• Retention of CSL as the National Fractionator $\bullet$
• New PFA beyond June 2004
• Policy development through transparent evidence-based processes

2003 Update

• Governments move forward with implementation $\bullet$ of key Stephen recommendations
• National Blood Agreement $\bullet$ - Commonwealth, States, Territories
• National Blood Authority Established $\bullet$ $-1$ July 2003

PFA Update

• Governments considering a range of complex ۰ issues
• roll out of national arrangements
• transition to NBA
• Expectation of a new agreement similar to the PFA ۰
• CSL NBA actively engaged in discussions to ۰ ensure continuity of supply into the future

"Proud record...one of the safest and secure blood systems in the world"

Safe system

• Voluntary donor system
• Comprehensive screening ARCBS/CSL
• World leading plant
• Chromatographic based production
• Segregation of chromatographic gels
• Full traceability from donation to patient
• Safe, high quality products
• Highly responsive system
• $-$ Policy
• $-$ R&D capability

Safety

Safety

Category one BSE risk country

Australia, New Zealand, Singapore, Norway

Canada, India, Pakistan, Sweden, USA

Austria, Albania, Belarus, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Israel, Italy, Japan, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Romania, San Marino, Slovak Republic, Slovenia, Spain, Switzerland, Turkey

United Kingdom, Portugal

Source: Geographic BSE Risk (GBR) rating - World Health Organisation

Note: list excludes nations from Africa, South and Central America and the Pacific Islands.

Increased Rick

Security

Australia's interests are safeguarded

Dedicated capacity

• Shield against supply crises
• Certainty of supply
• Security of supply chain ۰
• TGA as the determining regulator ۰
• Planning and preparedness for unforeseen events ۰
• CSL governance

Extensive range of products from Australian donor plasma

Adequacy

CSL Product	Use
Intragam P	Immunodeficiency
Albumex	Burns, shock
Normal Immunoglobulin	Prevention of infections
Hepatitis B Immunoglobulin	Prophylaxis for specific diseases
Tetanus Immunoglobulin
Zoster Immunoglobulin
Cytomegalovirus Immunoglobulin
$Rh(D)$ immunoglobulin	Rh negative pregnancy
Biostate	Haemophilia A and von Willebrand's Disease
MonoFIX-VF	Haemophilia B
Prothrombinex-HT	Multiple factor deficiency
Thrombotrol-VF	Antithrombin III deficiency

Meets evolving clinical need

Adequacy

• Redeveloped product range based on "superior" chromatography
• Continued improvements in viral safety
• World's best IVIG $\bullet$
• driver of plasma requirements from ARCBS
• yield optimised to meet increasing clinical need
• Customised products ۰
• Biostate vWF
• 250 IU minidose Rh D
• Thrombotrol-VF
• Guaranteed production capacity

Intragam P is a world leading IVIG

Adequacy

Manufacturer	Product	Eorm	Specific Viral Inactivation Steps enveloped viruses only	non-enveloped and enveloped viruses
CSL	Intragam P	liquid	Low pH	Pasteurisation er for de la segunda de la companya de la companya de la companya de la companya de la companya de la companya La companya de la companya de la companya de la companya de la companya de la companya de la companya de la co
ZLB	Sandoglobulin NF	powder	Low pH	Nanofiltration
Baxter	Gammagard S/D	powder	Solvent det
Aventis Behring	Gammar-P I.V.	powder	X	Pasteurisation
Bayer	Gamimune N S/D	liquid	Solvent det Low pH

Source: "Comparison Chart of Intravenous Immuno Globulins" Blood Diagnostics Inc

Basis of the price arrangements in the original Agreement

Affordability

The pricing objectives in the negotiation of the original PFA were:

• Recovery of costs with fair margin
• Prices competitive with international benchmarks

Model adopted with:

• individual product prices
• mechanisms to encourage efficiency
• mechanisms to encourage continued investment in products and processes
• encouragement of regional relationships

The Agreement has mechanisms to deliver efficiency benefits and continued investment

Affordability

• Two tier pricing: - All production beyond fixed volumes must be supplied at significantly lower, second tier prices
• All growth is at second tier prices
• Productivity: - Mechanism to share productivity gains with Government
• Investment: - Ensuring highest quality product range is rewarded
• Prices for new products to be based on PBS-like mechanisms

Affordability must be assessed relative to the appropriate comparator

Affordability

National Fractionator:

• Medical-marketing support, logistics, planning
• Low volume, niche products
• Scale limitations
• Commercial restrictions

Superior Product Range:

• Extensive product range
• Premium products
• Continued investment in R&D

Appropriate Comparators:

• Developed nations
• Self sufficiency model
• Similar scale

Affordability

Fractionation Economics

Industry Revenue by Product Other 23% IVIG 36% pdFIX $4%$ pdFVII 17% Albumin 20%

Source: "The Worldwide Plasma Fractions Market" MRB May 2002

Recovered plasma is by-product of ٠ producing fresh blood products

• Strict joint products most products can be extracted from the same unit of plasma without affecting the yield of others
• Plasma cost is allocated across all products
• Fractionation cost is driven by the quantity and range of products, plant scale, batch scale

Comparison of Liquid IVIG Prices

Sources: "Eurodata" MRB Mar 2002, "The Plasma Fractions Market in the United States" MRB June 2002 "The Plasma Fractions Market in Asia and the Pacific" MRB Jan 2002, CSL market intelligence

.© /} Innovative · Dedicated · Caring

Comparison of Factor VIII prices

Sources: "Eurodata" MRB Mar 2002, "The Plasma Fractions Market in the United States" MRB June 2002 "The Plasma Fractions Market in Asia and the Pacific" MRB Jan 2002, CSL market intelligence

CSL's prices compare well, even to the US market

Annual savings of obtaining Australian plasma product requirements at actual prices rather than US commercial prices (with US prices adjusted downward to compensate for plasma cost)

Sources: "Eurodata" MRB Mar 2002. "The Plasma Fractions Market in the United States" MRB June 2002 "The Plasma Fractions Market in Asia and the Pacific" MRB Jan 2002, CSL market intelligence

Conclusion

CSL' view:

• Australia remains committed to the policy of self sufficiency, and retention of a National Fractionator
• CSL provides good value for money
• broad responsibilities
• high quality products
• regulatory compliance
• basket of products
• dedicated capacity / preparedness

The End