CSL Ltd. — Interim / Quarterly Report 2012

Apr 12, 2012

CSL Limited Half Year Report 2011-2012

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Chairman’s Report
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Dividend to Shareholders

An interim

unfranked dividend of 36 cents per share is payable on 13 April 2012.

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PRofessoR JoHn sHine, Ao ChAirmAn

half Year Financial results

CsL GRouP ResuLts

half year ended December

$ millions

sales

Other revenue / income

total Revenue / income

earnings before interest, tax, Depreciation and Amortisation

Depreciation / Amortisation

earnings before interest and tax

net interest Expense / (income)

Tax Expense

net Profit after tax

interim Dividend (cents)

Basic EPS (cents)

• Constant currency removes the impact of exchange rate movements to facilitate comparability. For further details, please refer to the ASX Announcement of half Year results lodged on 22 February 2012.

• Change between December 2011 results at constant currency and December 2010 reported results.

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Dear Shareholder,

i am pleased to report a net profit after tax of $483 million for the half year ended 31 December 2011. Although down $17 million on a reported basis compared to the same period last year, this result has been achieved against an unfavourable foreign exchange impact of $95 million.

in constant currency¹, net profit after tax grew 16% and CSL Group sales revenue increased 13% to $2.4 billion. Cash flow from operations was up 28% to $522 million. Our balance sheet remains sound with cash and cash equivalents of $1,300 million, interest bearing liabilities of $1,278 million, and undrawn debt facilities of $450 million.

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2010 2011 2011 Change [‡]
Constant
reported reported Currency [†] %
2,116 2,221 2,401 13.4%
56 88 95
2,172 2,309 2,496
719 689 811 12.9%
83 82 85
636 607 726 14.2%
(11) – 1
147 124 148
500 483 578 15.5%
35.0 36.0
91.5 92.2
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On 19 October 2011, CSL announced an on-market share buyback of up to $900 million which is now more than 35% complete with 10 million shares repurchased as at 20 march 2012 for approximately $322 million. The benefit to shareholders comes from improved investment return ratios, such as earnings per share and return on equity.

On 9 november 2011, CSL announced completion of a debt refinancing program which included a US$750 million private placement in the US and the equivalent of approximately $800 million in new lines of credit with its banks. The new funds will be used to repay existing debt, fund CSL’s capital management plan including our on-market share buyback, and for general corporate purposes.

Your Directors have announced an increased interim unfranked dividend of 36 cents per share, payable on 13 April 2012.

Business Review

in constant currency¹, CSL Behring sales grew 13% to US$1.9 billion compared to the same period last year with increased sales of 21% for immunoglobulins, 14% for albumin², 4% for haemophilia products and 20% for specialty products.

Growth in demand was strong for all immunoglobulins, particularly Privigen[®] , and was across all key markets but particularly strong in Europe. Contributing to growth was the temporary absence of one competitor from the marketplace and a product mix shift in demand towards our subcutaneous immunoglobulin hizentra[®] .

haemophilia product sales growth was typically in new lower priced markets and driven by demand for immune tolerance therapy treatment in Europe and Beriate[®] in emerging markets. in our specialty product range, there has been solid growth in demand for our haemocomplettan[®] fibrinogen product in Europe, and the sales of Berinert[®] (C1 esterase inhibitor) received a boost following approvals in the US and Europe for patient self-administration. Growth in albumin sales was underpinned by ongoing demand in China.

CSL Biotherapies sales of $417 million included albumin sales of $65 million into Asia. in constant currency¹ and excluding Asian sales, 13% growth has been achieved compared to the same period last year. Plasma therapy sales from our plant in Broadmeadows contributed $125 million. influenza vaccine

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sales of $93 million were boosted by solid sales into northern hemisphere markets. Gardasil* sales growth came through the Australian national immunisation Program and private markets.

revenue from intellectual property licensing was $80 million including royalty contributions of $61 million from human papillomavirus vaccines and $18 million from the sale of intellectual property associated with enzyme replacement treatment for mucopolysaccharidosis.

Business Development

On 25 August 2011, CSL Behring announced that European health authorities had approved self-administration of our specialty plasma product Berinert[®] , a C1-esterase inhibitor concentrate for the treatment of acute attacks of hereditary angioedema (hAE).

On 3 January 2012, CSL Behring announced that the US Food and Drug Administration had approved a label expansion for self-administration of Berinert[®] for the treatment of acute attacks of hAE.

in January 2012, CSL Behring concluded its phase iii trial on the use of Privigen[®] to treat chronic inflammatory demyelinating polyneuropathy (CiDP). We plan to seek regulatory approval in Europe by June this year.

riaSTAP[®] is approved in the US for treatment of acute bleeding episodes in patients with congenital fibrinogen deficiency. in January 2012, CSL Behring enrolled the first patient in a phase iii study to assess the use of riaSTAP[®] in peri-operative bleeding.

A key element of our global research and development activities is the development of new therapies. Currently, we are working on a number of innovative recombinant factors for the treatment of haemophilia. These are progressing well with riX-FP, rViii-SingleChain and rViia-FP moving into clinical development.

CSL’s antibody licensee AstraZeneca has successfully completed a phase iia study of a monoclonal antibody (mavrilimumab) targeting the Gm-CSF receptor for the potential treatment of rheumatoid arthritis. mavrilimumab showed a rapid and significant clinical effect compared to a placebo with a safety profile supporting further clinical development.

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Corporate Responsibility

On 8 December 2011, CSL announced partnering with the world’s largest health research agency, the US national institute of health (nih), to study a potential new treatment to prevent transmission of congenital cytomegalovirus (CmV) infection during pregnancy, one of the most common known causes of congenital abnormalities in the developed world. Through CSL Behring AG, we are donating Cytogam[®] to the nih for use in this study as part of our commitment to addressing significant public health issues through collaborative research.

Cytogam[®] is an intravenous immune globulin enriched in antibodies against cytomegalovirus. it is used to prevent infection against CmV disease associated with transplantation of the kidney, liver, pancreas and heart. CmV is the most common cause of infection occurring after any solid organ transplant, contributing significantly to morbidity and mortality in organ transplant recipients.

On 13 December 2011, CSL released its third Corporate responsibility report providing a comprehensive account of our economic, social and environmental performance in 2010-2011. The report is available on our website at www.csl.com.au.

Business Outlook

CSL is well placed for continued sales growth with an excellent portfolio of products and a broad geographic reach.

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John shine, Ao, Chairman March 2012

• ¹ Constant currency removes the impact of exchange rate movements to facilitate comparability. For further details, please refer to the ASX Announcement of Half Year Results lodged on 22 February 2012.

• ² Adjusted to include CSL Behring albumin products sold in Asia by CSL Biotherapies.

• ® Trademarks of CSL Limited or its affiliates.

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

• ** Mavrilimumab is a trademark of AstraZeneca

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shareholder information
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share Registry

Computershare investor Services Pty Limited Yarra Falls, 452 Johnston Street Abbotsford ViC 3067 Postal Address: GPO Box 2975 melbourne ViC 3001

Enquiries within Australia: 1800 646 882 Enquiries outside Australia: 61 3 9415 4178 investor enquiries facsimile: 61 3 9473 2500 Website: www.investorcentre.com Email: web.queries@computershare.com.au

shareholders with enquiries should email, telephone or write to the Share registry at the above address.

separate shareholdings may be consolidated by advising the Share registry in writing or by completing a request to Consolidate holdings form which can be found online at the above website.

Change of address should be notified to the Share registry online via the investor Centre at www.investorcentre.com, by telephone or in writing without delay. Shareholders who are broker sponsored on the ChESS sub-register must notify their sponsoring broker of a change of address.

Direct payment of dividends into a nominated account may be arranged with the Share registry. Shareholders are encouraged to use this option by providing a payment instruction online via the investor Centre at www.investorcentre.com or by obtaining a direct credit form from the Share registry or by advising the Share registry in writing with particulars.

the Annual General Meeting will be held at the Function Centre, national Tennis Centre, melbourne Park, Batman Avenue, melbourne at 10:00am on Wednesday 17 October 2012.

There is a public car park adjacent to the Function Centre that will be available to shareholders at no charge.

for more detailed information on results Visit our website: http://www.csl.com.au/investors

Cover Peter Curwen works in research and Development at CSL’s Parkville site in Australia

CsL Limited ABn 99 051 588 348

Registered Head office 45 Poplar road Parkville Victoria 3052 Australia Telephone: +61 3 9389 1911 Facsimile: +61 3 9389 1434 internet: http://www.csl.com.au

Visit our websites CSL Limited www.csl.com.au CSL Behring www.cslbehring.com

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