Download CSL Limited Financial Report 1999-2000

CSL Limited
Financial Report 1999 - 2000
CSL Board of Directors
CSL Limited
ABN 99 051 588 348
CSL Limited develops, manufactures and markets
pharmaceutical products of biological origin.
Contents
Our business is health care:
1
CSL Board of Directors
2
Financial Calendar
•
Life-saving products derived from human plasma;
2
CSL Monthly Share Price
•
Pharmaceuticals and diagnostics essential to
3
Directors’ Report
6
Profit and Loss Statement
7
Balance Sheet
8
Statement of Cash Flows
9
Notes to the Financial Statements
34
Directors’ Declaration
35
Auditor’s Report
36
Financial Highlights
36
Five Year Summary
37
CSL Business Offices
community health;
•
Veterinary vaccines and diagnostics to protect
livestock and companion animals;
•
Cell culture and blood grouping reagents.
Peter H Wade, FCPA, FAICD - Chairman (age 66)
- Finance, Management (resident in Victoria)
Ian A Renard, BA, LLM, FAICD (age 54)
- Law (resident in Victoria).
Mr Wade was elected to the Board in 1994. He had previously
served CSL as a Commissioner and Director from 1985 to 1993
including a period as Acting Chairman during 1988. Mr Wade
is a Director of Tabcorp Holdings Limited, former Managing
Director, North Limited and former Chairman of Acacia
Resources Limited, Energy Resources of Australia Limited, and
Gunns Kilndried Timber Industries Limited.
Mr Renard was appointed to the CSL Board in August 1998.
He is a Partner of Arthur Robinson & Hedderwicks, solicitors,
practising in company and commercial law. He is a Director of
AMP Limited, Newcrest Mining Limited, Ericsson Australia Pty
Ltd and Hillview Quarries Pty Ltd, and was formerly a Director
of North Limited. Mr Renard is also a Member of the Council of
the University of Melbourne and a Member of the Board of
Governors of Melbourne University Private Limited. Mr Renard
is a Member of the Audit and Risk Management Committee.
Brian A McNamee, MB, BS - Managing Director (age 43)
- Pharmaceutical Industry, Medicine (resident in Victoria).
Dr McNamee is the Chief Executive and Managing Director of
CSL. Dr McNamee completed Bachelor of Medicine and
Bachelor of Surgery Degrees at the University of Melbourne in
1979. Before taking up his present position in 1990,
Dr McNamee was Managing Director and Chief Executive of
Pacific Biotechnology Limited in Sydney, NSW (1988-89),
General Manager, Faulding Product Divisions, F H Faulding &
Co Limited, Adelaide, South Australia (1984-87), and
International Product Manager, Dr Madaus & Co, based in
Cologne, West Germany (1982-84).
Elizabeth A Alexander, AM. BCom, FCPA, FAIM, FCA, FAICD
(age 57) - Accounting (resident in Victoria).
Miss Alexander was appointed to the CSL Board in July 1991.
She is a Partner of PricewaterhouseCoopers, and a Director of
Amcor Limited and Boral Limited. She is National Vice President
of the Australian Institute of Company Directors, a Member of
the Corporations and Securities Panel of the Australian
Securities and Investment Commission, past National President
of the Australian Society of Certified Practising Accountants, a
Member of the Council of the Australian Defence Force
Academy and a Member of the Deputy Prime Minister’s Trade
Policy and Advisory Committee. She was a Member of the
National Commission of Audit. Miss Alexander is Chairman of
the Audit and Risk Management Committee.
C Ian R McDonald, BSc (Hons) (age 67)
- International Pharmaceutical Industry (resident in NSW).
Front Cover photographs:
Inside the ZLB plasma products facility at Bern in
Switzerland. In June 2000, CSL entered into a conditional
agreement to purchase the plasma fractionation assets
and business (ZLB) from a foundation affiliated with the
Swiss Red Cross. Through the ZLB acquisition, CSL will
become the largest fractionator of recovered plasma in the
world and a major producer of intravenous immunoglobulin
(IVIG) products.
Mr McDonald was appointed a Director of CSL in October
1992. Mr McDonald was formerly Group Vice President,
Pharmaceuticals, of Syntex Corporation, President of Syntex
Pharmaceuticals International Limited, Vice President Asia
Pacific of G D Searle & Co and a former Director of Agen
Limited Group. He is a past Managing Director of Searle
Australia Pty Limited and Mead Johnson Pty Limited, and is a
Director of Rothschild Bioscience Managers Limited. Mr
McDonald is a Member of the Audit and Risk Management
Committee.
Kenneth J Roberts, AM, BEc, FCPA, FAIM, FAICD (age 62)
- International Pharmaceutical Industry, Management,
Marketing (resident in NSW).
Mr Roberts was appointed to the Board in February 1996.
Formerly, he was Chairman and Managing Director of Wellcome
Australasia and Director of Marketing Development for the
Wellcome worldwide group. He is Chairman of the Royal
Australasian College of Physicians Research and Education
Foundation, Start-up Australia Pty Ltd, and Open Software
Associates Limited. Mr Roberts is also a Member of the Boards
of the Australian Genome Research Facility and the University of
Queensland Centre for Drug Design and Development, and a
Council Member of the National Museum of Australia.
Arthur C Webster, BVSc, DipBact (Lond) (age 56)
- Animal Health Industry, Commerce (resident in NSW).
Dr Webster was appointed to the CSL Board in March 1998.
He was formerly Technical Director then Managing Director of
the animal health company Cyanamid Webster Pty Ltd and a
Member of the Board of Governors, University of Western
Sydney.
Antoni M Cipa, B.Bus (Acc), Grad.Dip (Acc), ACIS (age 45)
- Finance (resident in Victoria)
Mr Cipa was appointed to the CSL Board as Finance Director
in August 2000. Mr Cipa commenced his employment at CSL
in 1990 as Finance Manager. He was instrumental in the float
of the Company in 1994 at which time he was appointed Chief
Financial Officer. Prior to joining CSL, Mr Cipa was employed
at large public companies where he had significant exposure
to mergers and acquisitions.
Company Secretary
Peter R Turvey, BA/LLB
CSL Limited and Controlled Entities (ACN 051 588 348)
1
CSL Board of Directors
CSL Limited
ABN 99 051 588 348
CSL Limited develops, manufactures and markets
pharmaceutical products of biological origin.
Contents
Our business is health care:
1
CSL Board of Directors
2
Financial Calendar
•
Life-saving products derived from human plasma;
2
CSL Monthly Share Price
•
Pharmaceuticals and diagnostics essential to
3
Directors’ Report
6
Profit and Loss Statement
7
Balance Sheet
8
Statement of Cash Flows
9
Notes to the Financial Statements
34
Directors’ Declaration
35
Auditor’s Report
36
Financial Highlights
36
Five Year Summary
37
CSL Business Offices
community health;
•
Veterinary vaccines and diagnostics to protect
livestock and companion animals;
•
Cell culture and blood grouping reagents.
Peter H Wade, FCPA, FAICD - Chairman (age 66)
- Finance, Management (resident in Victoria)
Ian A Renard, BA, LLM, FAICD (age 54)
- Law (resident in Victoria).
Mr Wade was elected to the Board in 1994. He had previously
served CSL as a Commissioner and Director from 1985 to 1993
including a period as Acting Chairman during 1988. Mr Wade
is a Director of Tabcorp Holdings Limited, former Managing
Director, North Limited and former Chairman of Acacia
Resources Limited, Energy Resources of Australia Limited, and
Gunns Kilndried Timber Industries Limited.
Mr Renard was appointed to the CSL Board in August 1998.
He is a Partner of Arthur Robinson & Hedderwicks, solicitors,
practising in company and commercial law. He is a Director of
AMP Limited, Newcrest Mining Limited, Ericsson Australia Pty
Ltd and Hillview Quarries Pty Ltd, and was formerly a Director
of North Limited. Mr Renard is also a Member of the Council of
the University of Melbourne and a Member of the Board of
Governors of Melbourne University Private Limited. Mr Renard
is a Member of the Audit and Risk Management Committee.
Brian A McNamee, MB, BS - Managing Director (age 43)
- Pharmaceutical Industry, Medicine (resident in Victoria).
Dr McNamee is the Chief Executive and Managing Director of
CSL. Dr McNamee completed Bachelor of Medicine and
Bachelor of Surgery Degrees at the University of Melbourne in
1979. Before taking up his present position in 1990,
Dr McNamee was Managing Director and Chief Executive of
Pacific Biotechnology Limited in Sydney, NSW (1988-89),
General Manager, Faulding Product Divisions, F H Faulding &
Co Limited, Adelaide, South Australia (1984-87), and
International Product Manager, Dr Madaus & Co, based in
Cologne, West Germany (1982-84).
Elizabeth A Alexander, AM. BCom, FCPA, FAIM, FCA, FAICD
(age 57) - Accounting (resident in Victoria).
Miss Alexander was appointed to the CSL Board in July 1991.
She is a Partner of PricewaterhouseCoopers, and a Director of
Amcor Limited and Boral Limited. She is National Vice President
of the Australian Institute of Company Directors, a Member of
the Corporations and Securities Panel of the Australian
Securities and Investment Commission, past National President
of the Australian Society of Certified Practising Accountants, a
Member of the Council of the Australian Defence Force
Academy and a Member of the Deputy Prime Minister’s Trade
Policy and Advisory Committee. She was a Member of the
National Commission of Audit. Miss Alexander is Chairman of
the Audit and Risk Management Committee.
C Ian R McDonald, BSc (Hons) (age 67)
- International Pharmaceutical Industry (resident in NSW).
Front Cover photographs:
Inside the ZLB plasma products facility at Bern in
Switzerland. In June 2000, CSL entered into a conditional
agreement to purchase the plasma fractionation assets
and business (ZLB) from a foundation affiliated with the
Swiss Red Cross. Through the ZLB acquisition, CSL will
become the largest fractionator of recovered plasma in the
world and a major producer of intravenous immunoglobulin
(IVIG) products.
Mr McDonald was appointed a Director of CSL in October
1992. Mr McDonald was formerly Group Vice President,
Pharmaceuticals, of Syntex Corporation, President of Syntex
Pharmaceuticals International Limited, Vice President Asia
Pacific of G D Searle & Co and a former Director of Agen
Limited Group. He is a past Managing Director of Searle
Australia Pty Limited and Mead Johnson Pty Limited, and is a
Director of Rothschild Bioscience Managers Limited. Mr
McDonald is a Member of the Audit and Risk Management
Committee.
Kenneth J Roberts, AM, BEc, FCPA, FAIM, FAICD (age 62)
- International Pharmaceutical Industry, Management,
Marketing (resident in NSW).
Mr Roberts was appointed to the Board in February 1996.
Formerly, he was Chairman and Managing Director of Wellcome
Australasia and Director of Marketing Development for the
Wellcome worldwide group. He is Chairman of the Royal
Australasian College of Physicians Research and Education
Foundation, Start-up Australia Pty Ltd, and Open Software
Associates Limited. Mr Roberts is also a Member of the Boards
of the Australian Genome Research Facility and the University of
Queensland Centre for Drug Design and Development, and a
Council Member of the National Museum of Australia.
Arthur C Webster, BVSc, DipBact (Lond) (age 56)
- Animal Health Industry, Commerce (resident in NSW).
Dr Webster was appointed to the CSL Board in March 1998.
He was formerly Technical Director then Managing Director of
the animal health company Cyanamid Webster Pty Ltd and a
Member of the Board of Governors, University of Western
Sydney.
Antoni M Cipa, B.Bus (Acc), Grad.Dip (Acc), ACIS (age 45)
- Finance (resident in Victoria)
Mr Cipa was appointed to the CSL Board as Finance Director
in August 2000. Mr Cipa commenced his employment at CSL
in 1990 as Finance Manager. He was instrumental in the float
of the Company in 1994 at which time he was appointed Chief
Financial Officer. Prior to joining CSL, Mr Cipa was employed
at large public companies where he had significant exposure
to mergers and acquisitions.
Company Secretary
Peter R Turvey, BA/LLB
CSL Limited and Controlled Entities (ACN 051 588 348)
1
Directors’ Report
Financial Calendar
22
28
12
18
31
2000
September
September
October
October
December
20
6
11
25
30
21
21
27
11
17
31
2001
February
April
April
April
June
August
September
September
October
October
December
The Board of Directors of CSL Limited has pleasure in
submitting the balance sheet of the Company and of the
economic entity at 30 June 2000, and the related profit and
loss statement and statement of cash flows for the year
then ended, and reports as follows:
Shares traded ex-dividend
Record date for final dividend
Final dividend paid
Annual General Meeting
Half year ends
1. Directors
The directors of the Company in office at the date of this
report are:
2. Directors’ Shareholdings and Interests
At the date of this report, the relevant interests of the
directors in, and their rights or options over, shares of the
Company and related bodies corporate were:
June 2000
CSL Limited
$32.00
Ordinary Shares
$30.00
P H Wade
$28.00
$26.00
$24.00
120,000
E A Alexander
-
A M Cipa
500
$22.00
$20.00
C I R McDonald
$18.00
I A Renard
K J Roberts
$16.00
June 1999
$14.00
12,824 (SESOP I)
154,770 (SESOP II)
40,000
500
2,000
A C Webster
-
3. Directors‘ Interests in Contracts
June 1997
$10.00
$8.00
June 1996
Remuneration
Committee
4
4
1
1
P H Wade
13
13
2
2
B A McNamee
12
13
3
5
2
2
E A Alexander
13
13
5
5
1
2
C I R McDonald
12
13
3
5
1
2
I A Renard
12
13
4
5
2
2
K J Roberts
13
13
2
2
A C Webster
13
13
2
2
* C J Harper retired from the board on 12 October 1999
5. Principal Activities
The principal activities of the economic entity during the
financial year were the research, development,
manufacture, marketing and distribution of pharmaceutical
and allied products. No significant change in the nature of
those activities has taken place during that period.
6. Operating Results
The consolidated profit of the economic entity for the
financial year, after providing for income tax, amounted
to $54.4m. This represents a 14.8% improvement on the
1998-99 result of $47.4m.
7. Dividends
300,000 (SESOP II)
June 1998
$12.00
$6.00
Share Options
16,400
B A McNamee
Audit and Risk
Management
Committee
Attended Maximum Attended Maximum Attended Maximum
Particulars of all directors who held office during or since
the end of the financial year are to be found in Note 23 of
this Financial Report.
$34.00
The attendances of directors at meetings of the Board and
its Committees were:
C J Harper *
Particulars of the directors' qualifications, experience,
special responsibilities and ages are set out on Page 1 in
the Directors' Profiles section of this Financial Report.
CSL Monthly Share Price: June 1995 to June 2000
During the year, the Board held thirteen meetings. The
Audit and Risk Management Committee met five times and
the Remuneration Committee twice. The Nomination
Committee comprises the full Board and meets in
conjunction with Board Meetings.
Board of
Directors
Mr P H Wade (Chairman)
Dr B A McNamee (Managing Director)
Miss E A Alexander, AM
Mr A M Cipa
Mr C I R McDonald
Mr I A Renard
Mr K J Roberts, AM
Dr A C Webster
Half year profit and interim dividend announcement
Shares traded ex-dividend
Record date for interim dividend
Interim dividend paid
Year ends
Annual profit and final dividend announcement
Shares traded ex-dividend
Record date for final dividend
Final dividend paid
Annual General Meeting
Half year ends
4. Directors‘ Meetings
Particulars of Directors' interest in contracts are to be
found in Note 29 of the financial statements.
The following dividends have been paid or declared since
the end of the preceding financial year:
1998-1999
A final dividend for the year ended 30 June 1999 of 14 cents
per ordinary share, franked at 36%, was paid on 14 October
1999 out of profits for that year as declared by the directors
in last year's Directors' Report.
1999-2000
An interim dividend on ordinary shares of 8 cents per share,
fully franked at 36% was paid on 26 April 2000.
The directors of the Company have declared a final
dividend of 15 cents per ordinary share for the year ended
30 June 2000, to be paid out of profits for that year. The
dividend is fully franked at 34%.
June 1995
$4.00
$2.00
J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J
2
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
3
Directors’ Report
Financial Calendar
22
28
12
18
31
2000
September
September
October
October
December
20
6
11
25
30
21
21
27
11
17
31
2001
February
April
April
April
June
August
September
September
October
October
December
The Board of Directors of CSL Limited has pleasure in
submitting the balance sheet of the Company and of the
economic entity at 30 June 2000, and the related profit and
loss statement and statement of cash flows for the year
then ended, and reports as follows:
Shares traded ex-dividend
Record date for final dividend
Final dividend paid
Annual General Meeting
Half year ends
1. Directors
The directors of the Company in office at the date of this
report are:
2. Directors’ Shareholdings and Interests
At the date of this report, the relevant interests of the
directors in, and their rights or options over, shares of the
Company and related bodies corporate were:
June 2000
CSL Limited
$32.00
Ordinary Shares
$30.00
P H Wade
$28.00
$26.00
$24.00
120,000
E A Alexander
-
A M Cipa
500
$22.00
$20.00
C I R McDonald
$18.00
I A Renard
K J Roberts
$16.00
June 1999
$14.00
12,824 (SESOP I)
154,770 (SESOP II)
40,000
500
2,000
A C Webster
-
3. Directors‘ Interests in Contracts
June 1997
$10.00
$8.00
June 1996
Remuneration
Committee
4
4
1
1
P H Wade
13
13
2
2
B A McNamee
12
13
3
5
2
2
E A Alexander
13
13
5
5
1
2
C I R McDonald
12
13
3
5
1
2
I A Renard
12
13
4
5
2
2
K J Roberts
13
13
2
2
A C Webster
13
13
2
2
* C J Harper retired from the board on 12 October 1999
5. Principal Activities
The principal activities of the economic entity during the
financial year were the research, development,
manufacture, marketing and distribution of pharmaceutical
and allied products. No significant change in the nature of
those activities has taken place during that period.
6. Operating Results
The consolidated profit of the economic entity for the
financial year, after providing for income tax, amounted
to $54.4m. This represents a 14.8% improvement on the
1998-99 result of $47.4m.
7. Dividends
300,000 (SESOP II)
June 1998
$12.00
$6.00
Share Options
16,400
B A McNamee
Audit and Risk
Management
Committee
Attended Maximum Attended Maximum Attended Maximum
Particulars of all directors who held office during or since
the end of the financial year are to be found in Note 23 of
this Financial Report.
$34.00
The attendances of directors at meetings of the Board and
its Committees were:
C J Harper *
Particulars of the directors' qualifications, experience,
special responsibilities and ages are set out on Page 1 in
the Directors' Profiles section of this Financial Report.
CSL Monthly Share Price: June 1995 to June 2000
During the year, the Board held thirteen meetings. The
Audit and Risk Management Committee met five times and
the Remuneration Committee twice. The Nomination
Committee comprises the full Board and meets in
conjunction with Board Meetings.
Board of
Directors
Mr P H Wade (Chairman)
Dr B A McNamee (Managing Director)
Miss E A Alexander, AM
Mr A M Cipa
Mr C I R McDonald
Mr I A Renard
Mr K J Roberts, AM
Dr A C Webster
Half year profit and interim dividend announcement
Shares traded ex-dividend
Record date for interim dividend
Interim dividend paid
Year ends
Annual profit and final dividend announcement
Shares traded ex-dividend
Record date for final dividend
Final dividend paid
Annual General Meeting
Half year ends
4. Directors‘ Meetings
Particulars of Directors' interest in contracts are to be
found in Note 29 of the financial statements.
The following dividends have been paid or declared since
the end of the preceding financial year:
1998-1999
A final dividend for the year ended 30 June 1999 of 14 cents
per ordinary share, franked at 36%, was paid on 14 October
1999 out of profits for that year as declared by the directors
in last year's Directors' Report.
1999-2000
An interim dividend on ordinary shares of 8 cents per share,
fully franked at 36% was paid on 26 April 2000.
The directors of the Company have declared a final
dividend of 15 cents per ordinary share for the year ended
30 June 2000, to be paid out of profits for that year. The
dividend is fully franked at 34%.
June 1995
$4.00
$2.00
J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J
2
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
3
12. Options and Shares or Other Interests Under Options
Total dividends for the 1999-2000 year are:
$’000
Ordinary shares
Interim fully franked dividend
paid 26 April 2000
10,600
Final fully franked dividend
payable on 12 October 2000
22,361
8. Review of Operations
Contributions to the increase in profit came from continuing
growth in the Bioplasma Division, the Pharmaceutical
Group and cell culture revenues, and a continuation of the
steady performance of the Animal Health Group. Close
management of costs has been a priority. Specific factors
contributing to the results of the business units are
described elsewhere in the Annual Report.
9. Significant Changes in the State of Affairs
Apart from the proposed acquisition of the ZLB business
and associated equity raising which is further disclosed in
the consolidated financial statements, there were no other
significant changes in the state of affairs of the economic
entity during the financial year not otherwise disclosed in
this report or the consolidated financial statements.
Directors are not aware of any other matter or
circumstance, not otherwise dealt with in this report or in
the consolidated financial statements, which has arisen
since the end of the financial year which has significantly
affected or may significantly affect the operations of the
economic entity, the results of those operations or the
state of affairs of the economic entity in subsequent
financial years.
10. Likely Developments and Future Results
In the opinion of the directors, it would unreasonably
prejudice the interests of the economic entity if this report
were to refer to the likely developments in the operations
of the economic entity and expected results from those
operations in future financial years.
11. Environmental Regulatory Performance
The economic entity's environmental obligations and waste
discharge quotas are regulated under both State and
Federal law. All environmental performance obligations are
monitored by the Board and subjected from time to time to
government agency audits and site inspections. The
economic entity has a policy of complying and, where
appropriate, exceeding its environmental obligations.
No environmental breaches have been notified by any
government agency during the year ended 30 June 2000.
4
CSL Limited and Controlled Entities (ACN 051 588 348)
Details of options granted to directors or relevant officers
as part of their remuneration and details of shares and
interests under option or issued during or since the end of
the financial year due to the exercise of an option are set
out in this Report and in Note 24 of the financial statements.
13. Directors and Officers Remuneration
Remuneration of directors and senior executives within the
Company is established by the Remuneration Committee.
Remuneration is determined as part of an annual
performance review having regard to market factors, a
performance evaluation process and independent
remuneration advice. For executive directors and officers,
remuneration packages generally comprise salary, a
performance-based bonus and superannuation. Executives
are also provided with longer term incentives through the
Senior Executive Share Ownership Plan I and II and the
General Employee Share Ownership Plan, and in the case
of the Chief Executive Officer, an individual, long term
performance incentive, which act to align the executives’
actions with the interests of the shareholders. The
incentive for the Chief Executive Officer is designed to
encourage him to conduct the Company’s business with a
view to the Company’s share price outperforming an
appropriate ASX industrial index progressively over a
period of ten years and for him to remain with the Company
over that period. If the Company’s share price
underperforms the said ASX index over a relevant period,
no amount is payable in respect of that period.
C J Harper
P H Wade
B A McNamee
A Cipa
E A Alexander
C I R McDonald
I A Renard
K J Roberts
A C Webster
D Gearing
T Giarla
A Cuthbertson
P Bordonaro
P Turvey
Base Salary
Fee
Bonus
Super
Other
Cash
Total
Options
Total
Number
of Options
Granted
569,644
179,644
60,404
223,821
173,034
199,297
172,000
23,044
75,218
57,500
52,500
52,500
45,000
45,000
-
200,000
42,000
44,764
23,000
56,250
40,000
1,613
5,265
30,356
30,356
4,025
3,412
3,675
3,150
3,150
12,648
13,597
25,703
28,000
246,840
35,000
100,000
-
271,497
80,483
835,000
352,000
61,525
55,912
56,175
48,150
48,150
73,052
268,585
209,631
281,250
240,000
208,000
582,250
374,400
384,600
208,000
208,000
271,497
80,483
835,000
560,000
61,525
55,912
56,175
48,150
48,150
655,302
642,985
594,231
489,250
448,000
50,000
85,000
90,000
60,000
50,000
50,000
Note 1: T Giarla (JRH Biosciences Inc) was not an employee of the chief entity during the financial year.
Note 2: P Turvey is included to disclose the top five executives of the chief entity.
Note 3: A Cipa is included in the top five executives as he was not appointed to the Board until after the end of the financial year.
Note 4: Options issued under the Senior Executive Share Ownership Plan have been valued using the Black-Scholes option valuation methodology as at the date of issue.
These options are subject to company and individual performance hurdles and are only exercisable if these hurdles have been achieved.
14. Indemnification of Directors and Officers
During the financial year, the following insurance and
indemnity arrangements were entered into concerning
directors and officers of the economic entity:
Non-executive directors are not entitled to performance
based bonuses or share options.
The Company paid insurance premiums of $59,628 in
respect of a contract insuring each individual director of
the Company and each full time executive officer, director
and secretary of the Company and its controlled entities,
against certain liabilities and expenses arising as a result of
work performed in their respective capacities.
The Board meets annually to review its own performance.
The Chairperson also holds discussions with individual
directors to facilitate this peer review. The non-executive
directors are responsible for evaluating the performance of
the Chief Executive who in turn evaluates the performance
of all other senior executives. These evaluations are based
on specific criteria including the Company business
performance, whether the long term strategic objectives
are being achieved and the achievement of individual
performance objectives.
Under Rule 146 of the Company’s Constitution, the Company
is required to indemnify each "officer" of the Company and
of each wholly owned subsidiary of the Company out of the
assets of the Company "to the relevant extent" against any
liability incurred by the officer in the conduct of the
business of the Company or in the conduct of the business
of such wholly owned subsidiary of the Company or in the
discharge of the duties of the officer unless incurred in
circumstances which the Board resolves do not justify
indemnification.
Details of remuneration provided to directors ($A) and the
five most highly remunerated officers are as follows:
For this purpose, "officer" includes a director, executive
officer, secretary, agent, auditor or other officer of the
Company. The indemnity only applies to the extent the
Company is not precluded by law from doing so, and to the
extent that the officer is not otherwise entitled to be or is
actually indemnified, including under any insurance policy.
15. Rounding
The chief entity is a company entitled to release under
Australian Securities and Investment Commission Class
Order 98/100. In accordance with that Class Order,
amounts in the financial statements and the Directors'
Report have been rounded to the nearest $1,000, unless
specifically stated to be otherwise.
This report has been made in accordance with a
resolution of directors.
Signed
Peter H Wade (Director)
Signed
Brian A McNamee (Director)
Melbourne
15 August 2000
CSL Limited and Controlled Entities (ACN 051 588 348)
5
12. Options and Shares or Other Interests Under Options
Total dividends for the 1999-2000 year are:
$’000
Ordinary shares
Interim fully franked dividend
paid 26 April 2000
10,600
Final fully franked dividend
payable on 12 October 2000
22,361
8. Review of Operations
Contributions to the increase in profit came from continuing
growth in the Bioplasma Division, the Pharmaceutical
Group and cell culture revenues, and a continuation of the
steady performance of the Animal Health Group. Close
management of costs has been a priority. Specific factors
contributing to the results of the business units are
described elsewhere in the Annual Report.
9. Significant Changes in the State of Affairs
Apart from the proposed acquisition of the ZLB business
and associated equity raising which is further disclosed in
the consolidated financial statements, there were no other
significant changes in the state of affairs of the economic
entity during the financial year not otherwise disclosed in
this report or the consolidated financial statements.
Directors are not aware of any other matter or
circumstance, not otherwise dealt with in this report or in
the consolidated financial statements, which has arisen
since the end of the financial year which has significantly
affected or may significantly affect the operations of the
economic entity, the results of those operations or the
state of affairs of the economic entity in subsequent
financial years.
10. Likely Developments and Future Results
In the opinion of the directors, it would unreasonably
prejudice the interests of the economic entity if this report
were to refer to the likely developments in the operations
of the economic entity and expected results from those
operations in future financial years.
11. Environmental Regulatory Performance
The economic entity's environmental obligations and waste
discharge quotas are regulated under both State and
Federal law. All environmental performance obligations are
monitored by the Board and subjected from time to time to
government agency audits and site inspections. The
economic entity has a policy of complying and, where
appropriate, exceeding its environmental obligations.
No environmental breaches have been notified by any
government agency during the year ended 30 June 2000.
4
CSL Limited and Controlled Entities (ACN 051 588 348)
Details of options granted to directors or relevant officers
as part of their remuneration and details of shares and
interests under option or issued during or since the end of
the financial year due to the exercise of an option are set
out in this Report and in Note 24 of the financial statements.
13. Directors and Officers Remuneration
Remuneration of directors and senior executives within the
Company is established by the Remuneration Committee.
Remuneration is determined as part of an annual
performance review having regard to market factors, a
performance evaluation process and independent
remuneration advice. For executive directors and officers,
remuneration packages generally comprise salary, a
performance-based bonus and superannuation. Executives
are also provided with longer term incentives through the
Senior Executive Share Ownership Plan I and II and the
General Employee Share Ownership Plan, and in the case
of the Chief Executive Officer, an individual, long term
performance incentive, which act to align the executives’
actions with the interests of the shareholders. The
incentive for the Chief Executive Officer is designed to
encourage him to conduct the Company’s business with a
view to the Company’s share price outperforming an
appropriate ASX industrial index progressively over a
period of ten years and for him to remain with the Company
over that period. If the Company’s share price
underperforms the said ASX index over a relevant period,
no amount is payable in respect of that period.
C J Harper
P H Wade
B A McNamee
A Cipa
E A Alexander
C I R McDonald
I A Renard
K J Roberts
A C Webster
D Gearing
T Giarla
A Cuthbertson
P Bordonaro
P Turvey
Base Salary
Fee
Bonus
Super
Other
Cash
Total
Options
Total
Number
of Options
Granted
569,644
179,644
60,404
223,821
173,034
199,297
172,000
23,044
75,218
57,500
52,500
52,500
45,000
45,000
-
200,000
42,000
44,764
23,000
56,250
40,000
1,613
5,265
30,356
30,356
4,025
3,412
3,675
3,150
3,150
12,648
13,597
25,703
28,000
246,840
35,000
100,000
-
271,497
80,483
835,000
352,000
61,525
55,912
56,175
48,150
48,150
73,052
268,585
209,631
281,250
240,000
208,000
582,250
374,400
384,600
208,000
208,000
271,497
80,483
835,000
560,000
61,525
55,912
56,175
48,150
48,150
655,302
642,985
594,231
489,250
448,000
50,000
85,000
90,000
60,000
50,000
50,000
Note 1: T Giarla (JRH Biosciences Inc) was not an employee of the chief entity during the financial year.
Note 2: P Turvey is included to disclose the top five executives of the chief entity.
Note 3: A Cipa is included in the top five executives as he was not appointed to the Board until after the end of the financial year.
Note 4: Options issued under the Senior Executive Share Ownership Plan have been valued using the Black-Scholes option valuation methodology as at the date of issue.
These options are subject to company and individual performance hurdles and are only exercisable if these hurdles have been achieved.
14. Indemnification of Directors and Officers
During the financial year, the following insurance and
indemnity arrangements were entered into concerning
directors and officers of the economic entity:
Non-executive directors are not entitled to performance
based bonuses or share options.
The Company paid insurance premiums of $59,628 in
respect of a contract insuring each individual director of
the Company and each full time executive officer, director
and secretary of the Company and its controlled entities,
against certain liabilities and expenses arising as a result of
work performed in their respective capacities.
The Board meets annually to review its own performance.
The Chairperson also holds discussions with individual
directors to facilitate this peer review. The non-executive
directors are responsible for evaluating the performance of
the Chief Executive who in turn evaluates the performance
of all other senior executives. These evaluations are based
on specific criteria including the Company business
performance, whether the long term strategic objectives
are being achieved and the achievement of individual
performance objectives.
Under Rule 146 of the Company’s Constitution, the Company
is required to indemnify each "officer" of the Company and
of each wholly owned subsidiary of the Company out of the
assets of the Company "to the relevant extent" against any
liability incurred by the officer in the conduct of the
business of the Company or in the conduct of the business
of such wholly owned subsidiary of the Company or in the
discharge of the duties of the officer unless incurred in
circumstances which the Board resolves do not justify
indemnification.
Details of remuneration provided to directors ($A) and the
five most highly remunerated officers are as follows:
For this purpose, "officer" includes a director, executive
officer, secretary, agent, auditor or other officer of the
Company. The indemnity only applies to the extent the
Company is not precluded by law from doing so, and to the
extent that the officer is not otherwise entitled to be or is
actually indemnified, including under any insurance policy.
15. Rounding
The chief entity is a company entitled to release under
Australian Securities and Investment Commission Class
Order 98/100. In accordance with that Class Order,
amounts in the financial statements and the Directors'
Report have been rounded to the nearest $1,000, unless
specifically stated to be otherwise.
This report has been made in accordance with a
resolution of directors.
Signed
Peter H Wade (Director)
Signed
Brian A McNamee (Director)
Melbourne
15 August 2000
CSL Limited and Controlled Entities (ACN 051 588 348)
5
Profit and Loss Statement
Balance Sheet
for the year ended 30 June 2000
as at 30 June 2000
Economic Entity
Notes
Operating profit before income tax
Income tax attributable to operating profit
2, 3
4
Operating profit after income tax
Retained profits at the beginning of the financial year
Total available for appropriation
Dividends provided for or paid
Retained profits at the end of the financial year
5
2000
1999
Chief Entity
2000
1999
$000
$000
$000
$000
80,575
26,173
70,292
22,910
71,231
22,228
64,564
20,310
54,402
144,553
47,382
124,865
49,003
142,875
44,254
126,315
198,955
33,074
172,247
27,694
191,878
33,074
170,569
27,694
165,881
144,553
158,804
142,875
The above profit and loss statement should be read in conjunction with the accompanying notes.
Economic Entity
Chief Entity
Notes
2000
$000
1999
$000
2000
$000
1999
$000
6
7
8
9
4,501
73,174
412,126
118,163
840
2,893
49,113
42,691
98,065
1,940
112
56,148
412,126
65,582
575
311
35,286
42,691
58,172
2,550
608,804
194,702
534,543
139,010
5,788
7,178
313,747
10,962
10,277
37,028
307,644
11,887
44,419
47,135
284,917
8,014
38,709
40,636
282,831
9,350
Total Non-Current Assets
337,675
366,836
384,485
371,526
Total Assets
946,479
561,538
919,028
510,536
57,663
1,732
49,628
48,895
1,771
46,717
49,259
1,732
46,011
36,780
1,620
43,804
109,023
97,383
97,002
82,204
2,491
31,498
9,887
7,175
31,767
10,291
31,498
9,176
7,132
9,807
43,876
49,233
40,674
16,939
Total Liabilities
152,899
146,616
137,676
99,143
Net Assets
793,580
414,922
781,352
411,393
591,321
36,378
165,881
233,502
36,867
144,553
591,321
31,227
158,804
233,502
35,016
142,875
793,580
414,922
781,352
411,393
Current Assets
Cash
Receivables
Investments
Inventories
Other
Total Current Assets
Non-Current Assets
Receivables
Investments
Property, plant and equipment
Other
Current Liabilities
Accounts payable
Borrowings
Provisions
10
11
12
14
15
16
17
Total Current Liabilities
Non-Current Liabilities
Borrowings
Provisions
Other
18
19
20
Total Non-Current Liabilities
Equity
Share capital
Reserves
Retained profits
Total Equity
21
22
The above balance sheet should be read in conjunction with the accompanying notes.
6
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
7
Profit and Loss Statement
Balance Sheet
for the year ended 30 June 2000
as at 30 June 2000
Economic Entity
Notes
Operating profit before income tax
Income tax attributable to operating profit
2, 3
4
Operating profit after income tax
Retained profits at the beginning of the financial year
Total available for appropriation
Dividends provided for or paid
Retained profits at the end of the financial year
5
2000
1999
Chief Entity
2000
1999
$000
$000
$000
$000
80,575
26,173
70,292
22,910
71,231
22,228
64,564
20,310
54,402
144,553
47,382
124,865
49,003
142,875
44,254
126,315
198,955
33,074
172,247
27,694
191,878
33,074
170,569
27,694
165,881
144,553
158,804
142,875
The above profit and loss statement should be read in conjunction with the accompanying notes.
Economic Entity
Chief Entity
Notes
2000
$000
1999
$000
2000
$000
1999
$000
6
7
8
9
4,501
73,174
412,126
118,163
840
2,893
49,113
42,691
98,065
1,940
112
56,148
412,126
65,582
575
311
35,286
42,691
58,172
2,550
608,804
194,702
534,543
139,010
5,788
7,178
313,747
10,962
10,277
37,028
307,644
11,887
44,419
47,135
284,917
8,014
38,709
40,636
282,831
9,350
Total Non-Current Assets
337,675
366,836
384,485
371,526
Total Assets
946,479
561,538
919,028
510,536
57,663
1,732
49,628
48,895
1,771
46,717
49,259
1,732
46,011
36,780
1,620
43,804
109,023
97,383
97,002
82,204
2,491
31,498
9,887
7,175
31,767
10,291
31,498
9,176
7,132
9,807
43,876
49,233
40,674
16,939
Total Liabilities
152,899
146,616
137,676
99,143
Net Assets
793,580
414,922
781,352
411,393
591,321
36,378
165,881
233,502
36,867
144,553
591,321
31,227
158,804
233,502
35,016
142,875
793,580
414,922
781,352
411,393
Current Assets
Cash
Receivables
Investments
Inventories
Other
Total Current Assets
Non-Current Assets
Receivables
Investments
Property, plant and equipment
Other
Current Liabilities
Accounts payable
Borrowings
Provisions
10
11
12
14
15
16
17
Total Current Liabilities
Non-Current Liabilities
Borrowings
Provisions
Other
18
19
20
Total Non-Current Liabilities
Equity
Share capital
Reserves
Retained profits
Total Equity
21
22
The above balance sheet should be read in conjunction with the accompanying notes.
6
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
7
Statement of Cash Flows
Notes to and Forming Part of the Financial Statements
for the year ended 30 June 2000
1
Economic Entity
Notes
2000
$000
1999
$000
Chief Entity
2000
$000
1999
$000
Inflows/(Outflows)
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers and employees
Interest received
Income taxes paid
Interest paid
Advances to controlled entities
Net cash used by operating activities
Cash Flows from Investing Activities
Proceeds from sale of property, plant and equipment
Payment for property, plant and equipment
Payment for other investments
Payment for investment in managed funds
Proceeds from disposal of managed fund investments
Interest received from managed fund investments
Dividends received from managed fund investments
Purchase of business, net of cash acquired
Payment for investment in controlled entities
32
The accounting policies adopted are consistent with those of the previous year.
439,225
(359,680)
1,854
(27,029)
(296)
-
418,519
(323,649)
1,402
(23,184)
(711)
-
341,504
(272,310)
1,760
(23,068)
(10)
(6,406)
343,852
(255,928)
1,335
(20,397)
(43)
(3,336)
54,074
72,377
41,470
65,483
(a) Principles of Consolidation
The consolidated financial statements comprise the financial statements of the chief entity, CSL Limited, and all of its
controlled entities referred to collectively throughout these financial statements as the Economic Entity. A controlled
entity is any entity controlled by CSL Limited. Control exists where CSL Limited has the capacity to dominate the
decision-making in relation to the financial and operating policies of another entity so that the other entity operates
with CSL Limited to achieve the objectives of CSL Limited.
A list of controlled entities is contained in Note 30 to the financial statements.
All inter-company balances and transactions between entities in the economic entity, including any unrealised profits
or losses, have been eliminated on consolidation.
328
(37,169)
(6,499)
(2,048)
38,492
884
1,199
(653)
-
657
(39,022)
(679)
(2,132)
1,250
882
(517)
283
(31,996)
(6,499)
38,492
-
639
(35,723)
(679)
(517)
(5,466)
(39,561)
280
(36,280)
Cash Flows from Financing Activities
Proceeds from issue of shares
Dividends paid
Repayment of borrowings
356,518
(29,144)
(4,909)
758
(25,014)
(5,820)
356,518
(29,144)
-
758
(25,014)
(197)
Net cash used in financing activities
322,465
(30,076)
327,374
(24,453)
Net increase in cash held
Cash at the beginning of the financial year
Exchange rate variations on foreign cash balances
371,073
43,813
9
2,740
41,033
40
369,124
41,382
-
4,750
36,632
-
414,895
43,813
410,506
41,382
33
Net cash used in investing activities
Cash at the end of the financial year
Summary of Significant Accounting Policies
The financial statements have been prepared as a general purpose financial report in accordance with Australian
Accounting Standards, Urgent Issues Group Consensus Views, and the Corporations Law. Except for certain assets
which as noted in the financial statements are at valuation, the financial statements and group financial statements are
prepared in accordance with the historical cost convention.
Where controlled entities have entered or left the economic entity during the year, their operating results have been
included from the date control was obtained or until the date control ceased.
(b) Income Tax
Tax effect accounting procedures are followed whereby the income tax expense in the profit and loss statement is
matched with the accounting profit (after allowing for permanent differences). The future income tax benefit relating to
tax losses is not carried forward as an asset unless the benefit can be regarded as being virtually certain of realisation.
Income tax on net cumulative timing differences is set aside to the deferred income tax and future income tax benefit
accounts at the rates which are expected to apply when those timing differences reverse.
No provision has been made for withholding tax on unremitted earnings of foreign incorporated controlled entities as
such profits are considered to be permanently invested.
(c) Foreign Currency Transactions and Balances
31
The above statement of cash flows should be read in conjunction with the accompanying notes.
Foreign currency transactions during the period are converted to Australian currency at the rates of exchange
applicable at the dates of the transactions. Amounts receivable and payable in foreign currencies at balance date are
converted at the rates of exchange ruling at that date.
The gains and losses from conversion of short-term assets and liabilities, whether realised or unrealised, are included
in operating profit before income tax as they arise.
The financial statements of self-sustaining foreign operations are translated using the current rate method. Any
exchange difference arising through the use of the current rate method is taken directly to the foreign currency
translation reserve.
The financial statements of integrated foreign operations are translated using the temporal rate method. Any exchange
difference arising through the use of the temporal method is taken directly to the profit and loss statement.
Exchange differences relating to monetary items are included in the profit and loss statement, as exchange gains and
losses, in the period when the exchange rate changes, except where:
- the exchange difference relates to the cost of acquisition of an asset under construction or otherwise being made
ready for future productive use by the economic entity. In these cases the exchange difference is included in the cost
of the asset;
- the exchange difference relates to hedging part of the net investment in a self-sustaining foreign operation, in which
case the exchange difference is transferred to the foreign currency translation reserve on consolidation; or
- the exchange difference relates to a transaction intended to hedge the purchase or sale of goods or services, in
which case the exchange difference is included in the measurement of the purchase or sale.
8
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
9
Statement of Cash Flows
Notes to and Forming Part of the Financial Statements
for the year ended 30 June 2000
1
Economic Entity
Notes
2000
$000
1999
$000
Chief Entity
2000
$000
1999
$000
Inflows/(Outflows)
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers and employees
Interest received
Income taxes paid
Interest paid
Advances to controlled entities
Net cash used by operating activities
Cash Flows from Investing Activities
Proceeds from sale of property, plant and equipment
Payment for property, plant and equipment
Payment for other investments
Payment for investment in managed funds
Proceeds from disposal of managed fund investments
Interest received from managed fund investments
Dividends received from managed fund investments
Purchase of business, net of cash acquired
Payment for investment in controlled entities
32
The accounting policies adopted are consistent with those of the previous year.
439,225
(359,680)
1,854
(27,029)
(296)
-
418,519
(323,649)
1,402
(23,184)
(711)
-
341,504
(272,310)
1,760
(23,068)
(10)
(6,406)
343,852
(255,928)
1,335
(20,397)
(43)
(3,336)
54,074
72,377
41,470
65,483
(a) Principles of Consolidation
The consolidated financial statements comprise the financial statements of the chief entity, CSL Limited, and all of its
controlled entities referred to collectively throughout these financial statements as the Economic Entity. A controlled
entity is any entity controlled by CSL Limited. Control exists where CSL Limited has the capacity to dominate the
decision-making in relation to the financial and operating policies of another entity so that the other entity operates
with CSL Limited to achieve the objectives of CSL Limited.
A list of controlled entities is contained in Note 30 to the financial statements.
All inter-company balances and transactions between entities in the economic entity, including any unrealised profits
or losses, have been eliminated on consolidation.
328
(37,169)
(6,499)
(2,048)
38,492
884
1,199
(653)
-
657
(39,022)
(679)
(2,132)
1,250
882
(517)
283
(31,996)
(6,499)
38,492
-
639
(35,723)
(679)
(517)
(5,466)
(39,561)
280
(36,280)
Cash Flows from Financing Activities
Proceeds from issue of shares
Dividends paid
Repayment of borrowings
356,518
(29,144)
(4,909)
758
(25,014)
(5,820)
356,518
(29,144)
-
758
(25,014)
(197)
Net cash used in financing activities
322,465
(30,076)
327,374
(24,453)
Net increase in cash held
Cash at the beginning of the financial year
Exchange rate variations on foreign cash balances
371,073
43,813
9
2,740
41,033
40
369,124
41,382
-
4,750
36,632
-
414,895
43,813
410,506
41,382
33
Net cash used in investing activities
Cash at the end of the financial year
Summary of Significant Accounting Policies
The financial statements have been prepared as a general purpose financial report in accordance with Australian
Accounting Standards, Urgent Issues Group Consensus Views, and the Corporations Law. Except for certain assets
which as noted in the financial statements are at valuation, the financial statements and group financial statements are
prepared in accordance with the historical cost convention.
Where controlled entities have entered or left the economic entity during the year, their operating results have been
included from the date control was obtained or until the date control ceased.
(b) Income Tax
Tax effect accounting procedures are followed whereby the income tax expense in the profit and loss statement is
matched with the accounting profit (after allowing for permanent differences). The future income tax benefit relating to
tax losses is not carried forward as an asset unless the benefit can be regarded as being virtually certain of realisation.
Income tax on net cumulative timing differences is set aside to the deferred income tax and future income tax benefit
accounts at the rates which are expected to apply when those timing differences reverse.
No provision has been made for withholding tax on unremitted earnings of foreign incorporated controlled entities as
such profits are considered to be permanently invested.
(c) Foreign Currency Transactions and Balances
31
The above statement of cash flows should be read in conjunction with the accompanying notes.
Foreign currency transactions during the period are converted to Australian currency at the rates of exchange
applicable at the dates of the transactions. Amounts receivable and payable in foreign currencies at balance date are
converted at the rates of exchange ruling at that date.
The gains and losses from conversion of short-term assets and liabilities, whether realised or unrealised, are included
in operating profit before income tax as they arise.
The financial statements of self-sustaining foreign operations are translated using the current rate method. Any
exchange difference arising through the use of the current rate method is taken directly to the foreign currency
translation reserve.
The financial statements of integrated foreign operations are translated using the temporal rate method. Any exchange
difference arising through the use of the temporal method is taken directly to the profit and loss statement.
Exchange differences relating to monetary items are included in the profit and loss statement, as exchange gains and
losses, in the period when the exchange rate changes, except where:
- the exchange difference relates to the cost of acquisition of an asset under construction or otherwise being made
ready for future productive use by the economic entity. In these cases the exchange difference is included in the cost
of the asset;
- the exchange difference relates to hedging part of the net investment in a self-sustaining foreign operation, in which
case the exchange difference is transferred to the foreign currency translation reserve on consolidation; or
- the exchange difference relates to a transaction intended to hedge the purchase or sale of goods or services, in
which case the exchange difference is included in the measurement of the purchase or sale.
8
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
9
(d) Inventories
All inventories are stated at the lower of cost and net realisable value. Cost includes direct labour and an appropriate
proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity.
(e) Acquisitions of Assets
The cost method of accounting is used for all acquisitions of assets regardless of whether shares or other assets are
acquired. Cost is the fair value of consideration given at the date of acquisition plus costs incidental to the acquisition.
Where goodwill arises it is brought to account on the basis described in Note 1(j).
(f) Freehold Property, Plant and Equipment
Freehold land and buildings are initially recorded at cost which is not in excess of the recoverable amount. Properties
are revalued every three years to reflect current market values based on existing use, as determined by an
independent valuer. Revalued properties are not carried at values in excess of their recoverable amounts. Provision for
depreciation of buildings has been made. Plant and equipment is stated at cost less depreciation or amortisation which
is not in excess of the recoverable amount. Capital work in progress is stated at cost.
The recoverable amount of all non-current assets has been determined using net cash inflows which have been
discounted to their present values, with the exception of goodwill and future tax benefits where the net cash inflows
have not been discounted. The potential capital gains tax is not taken into account in determining the revalued
amounts.
The Company is of the opinion that land and buildings are indivisible and constitute one class of asset. Land and
buildings are disclosed separately in Note 12 to provide supplementary information regarding the depreciation of
buildings.
(g) Leasehold Improvements
(m) Coselco Insurance Pty Ltd (In Liquidation)
Coselco Insurance Pty Ltd, a controlled entity of CSL Limited, was established to provide insurance cover to CSL
Limited and its controlled entities. The financial statements of Coselco Insurance Pty Ltd, including the treatment of
Premium Revenue, Outward Reinsurance, Liability for Outstanding Claims and Reinsurance and Other Recoveries, have
been prepared in accordance with Australian Accounting Standard AASB 1023 - Financial Reporting of General
Insurance Activities.
As a result of a corporate restructure on the 24 May 2000, the insurance activities previously undertaken by Coselco
Insurance Pty Ltd were taken over by the chief entity. The Coselco Insurance Pty Ltd insurance licence was revoked
on 29 May 2000 and the company was placed into members voluntary liquidation on 30 June 2000.
The chief entity has returned to direct insurance and will continue to enter into reinsurance arrangements to offset risk
arising from the provision of insurance cover to the economic entity. As CSL Limited or any of its controlled entities
will no longer hold an insurance licence after this financial year, it will cease to report its insurance activities under
AASB 1023 - Financial Reporting of General Insurance Activities.
The Australian Government has indemnified CSL Limited for certain existing and potential claims made for personal
injury and damage suffered through use of certain products manufactured by CSL Limited under government
ownership. The indemnity covers AIDS and hepatitis related claims for blood products derived from Australian blood.
The indemnity also covers CJD claims for human pituitary hormones (manufacture of which ceased in 1985) and claims
for pertussis vaccines manufactured prior to June 1994.
(n) Financial Instruments
Financial Instruments included in Assets
Trade debtors are initially recorded at the amount of the contracted sale proceeds. Provision for doubtful debts is
recognised to the extent that recovery of the outstanding receivable balance is considered less than likely.
The cost of improvements to or on leasehold properties is amortised over the unexpired period of the lease or the
estimated useful life of the improvement whichever is the shorter.
Bank deposits and bills of exchange are carried at cost. Managed unit trust investments integral to general insurance
activities are carried at net market value.
(h) Leases
Operating leases are not capitalised. Rental payments are charged against profits in equal instalments over the terms
of the leases.
Financial Instruments included in Liabilities
Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to
the Company or economic entity. Trade accounts payable are normally settled within 60 days.
(i) Depreciation
Depreciation is calculated on a straight line basis so as to write off the net cost or amount of each item of property,
plant and equipment over its expected useful life. The useful economic lives of each class of assets are as follows:
Bank and other loans are carried on the balance sheet at their principal amount. Interest expense is accrued at the
contracted rate and included in Other Creditors in Note 15.
Buildings
Plant and Equipment
Leasehold Improvements
5 - 25 years
5 - 15 years
5 - 10 years
(j) Goodwill
On acquisition of some or all of the assets of another entity, the identifiable net assets acquired are measured at their
fair value. The excess of the fair value of the purchase consideration plus incidental expenses over the fair value of the
identifiable net assets is brought to account as goodwill and is amortised on a straight line basis over the period of
expected benefit. The carrying value of goodwill is reviewed annually by the directors and written down where it is
considered appropriate.
(k) Research and Development, Patents and Intellectual Property
Current expenditure on research and development and on patents is charged against operating profit as incurred.
Expenditure on R&D equipment is capitalised in property, plant and equipment and depreciated over its estimated
useful life. Purchased intellectual property in a controlled entity is carried at cost and is amortised on a straight line
basis over the period of expected benefit, which is assessed on a case by case basis. The carrying value of intellectual
property is reviewed annually by the directors and written down where it is considered appropriate.
Financial Instruments included in Equity
Ordinary share capital bears no special terms and conditions affecting income or capital entitlements of
the shareholders.
Derivative Instruments
Derivative instruments, in the form of forward exchange contracts and interest rate swaps, are used exclusively to
hedge foreign exchange and interest rate exposures.
Gains and losses on forward foreign exchange contracts are accounted for as outlined in Note 1(c).
Where a hedge transaction is terminated early and the anticipated transaction is still expected to occur, the deferred
gains or losses that arose on the foreign currency hedge prior to its termination continue to be deferred and are
included in the measurement of the purchase or sale when it occurs. When a hedge transaction is terminated early
because the anticipated transaction is no longer expected to occur, deferred gains and losses that arose on the foreign
currency hedge prior to its termination are included in the profit and loss statement for the period.
(o) Other Investments
Interests in non-subsidiary, non-associated corporations are included in investments at the lower of cost or the
recoverable amount.
(l) Employee Entitlements
Provision is made for the economic entity’s liability for employee entitlements arising from services rendered by
employees to balance date in accordance with AASB 1028 - Accounting for Employee Entitlements. Employee
entitlements, including on costs, expected to be settled within one year together with entitlements arising from wages
and salaries and annual leave which will be settled after one year, have been measured at their nominal amounts. Long
service leave, including on costs, payable later than one year have been measured at the present value of the
estimated future cash outflows to be made for those entitlements.
Contributions are made by the economic entity to employee superannuation funds and are charged as expenses when
incurred.
The economic entity does not record, as an asset or a liability, the difference between the employer established
superannuation plan’s accrued benefits and the net market value of the plan’s assets.
10
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
11
(d) Inventories
All inventories are stated at the lower of cost and net realisable value. Cost includes direct labour and an appropriate
proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity.
(e) Acquisitions of Assets
The cost method of accounting is used for all acquisitions of assets regardless of whether shares or other assets are
acquired. Cost is the fair value of consideration given at the date of acquisition plus costs incidental to the acquisition.
Where goodwill arises it is brought to account on the basis described in Note 1(j).
(f) Freehold Property, Plant and Equipment
Freehold land and buildings are initially recorded at cost which is not in excess of the recoverable amount. Properties
are revalued every three years to reflect current market values based on existing use, as determined by an
independent valuer. Revalued properties are not carried at values in excess of their recoverable amounts. Provision for
depreciation of buildings has been made. Plant and equipment is stated at cost less depreciation or amortisation which
is not in excess of the recoverable amount. Capital work in progress is stated at cost.
The recoverable amount of all non-current assets has been determined using net cash inflows which have been
discounted to their present values, with the exception of goodwill and future tax benefits where the net cash inflows
have not been discounted. The potential capital gains tax is not taken into account in determining the revalued
amounts.
The Company is of the opinion that land and buildings are indivisible and constitute one class of asset. Land and
buildings are disclosed separately in Note 12 to provide supplementary information regarding the depreciation of
buildings.
(g) Leasehold Improvements
(m) Coselco Insurance Pty Ltd (In Liquidation)
Coselco Insurance Pty Ltd, a controlled entity of CSL Limited, was established to provide insurance cover to CSL
Limited and its controlled entities. The financial statements of Coselco Insurance Pty Ltd, including the treatment of
Premium Revenue, Outward Reinsurance, Liability for Outstanding Claims and Reinsurance and Other Recoveries, have
been prepared in accordance with Australian Accounting Standard AASB 1023 - Financial Reporting of General
Insurance Activities.
As a result of a corporate restructure on the 24 May 2000, the insurance activities previously undertaken by Coselco
Insurance Pty Ltd were taken over by the chief entity. The Coselco Insurance Pty Ltd insurance licence was revoked
on 29 May 2000 and the company was placed into members voluntary liquidation on 30 June 2000.
The chief entity has returned to direct insurance and will continue to enter into reinsurance arrangements to offset risk
arising from the provision of insurance cover to the economic entity. As CSL Limited or any of its controlled entities
will no longer hold an insurance licence after this financial year, it will cease to report its insurance activities under
AASB 1023 - Financial Reporting of General Insurance Activities.
The Australian Government has indemnified CSL Limited for certain existing and potential claims made for personal
injury and damage suffered through use of certain products manufactured by CSL Limited under government
ownership. The indemnity covers AIDS and hepatitis related claims for blood products derived from Australian blood.
The indemnity also covers CJD claims for human pituitary hormones (manufacture of which ceased in 1985) and claims
for pertussis vaccines manufactured prior to June 1994.
(n) Financial Instruments
Financial Instruments included in Assets
Trade debtors are initially recorded at the amount of the contracted sale proceeds. Provision for doubtful debts is
recognised to the extent that recovery of the outstanding receivable balance is considered less than likely.
The cost of improvements to or on leasehold properties is amortised over the unexpired period of the lease or the
estimated useful life of the improvement whichever is the shorter.
Bank deposits and bills of exchange are carried at cost. Managed unit trust investments integral to general insurance
activities are carried at net market value.
(h) Leases
Operating leases are not capitalised. Rental payments are charged against profits in equal instalments over the terms
of the leases.
Financial Instruments included in Liabilities
Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to
the Company or economic entity. Trade accounts payable are normally settled within 60 days.
(i) Depreciation
Depreciation is calculated on a straight line basis so as to write off the net cost or amount of each item of property,
plant and equipment over its expected useful life. The useful economic lives of each class of assets are as follows:
Bank and other loans are carried on the balance sheet at their principal amount. Interest expense is accrued at the
contracted rate and included in Other Creditors in Note 15.
Buildings
Plant and Equipment
Leasehold Improvements
5 - 25 years
5 - 15 years
5 - 10 years
(j) Goodwill
On acquisition of some or all of the assets of another entity, the identifiable net assets acquired are measured at their
fair value. The excess of the fair value of the purchase consideration plus incidental expenses over the fair value of the
identifiable net assets is brought to account as goodwill and is amortised on a straight line basis over the period of
expected benefit. The carrying value of goodwill is reviewed annually by the directors and written down where it is
considered appropriate.
(k) Research and Development, Patents and Intellectual Property
Current expenditure on research and development and on patents is charged against operating profit as incurred.
Expenditure on R&D equipment is capitalised in property, plant and equipment and depreciated over its estimated
useful life. Purchased intellectual property in a controlled entity is carried at cost and is amortised on a straight line
basis over the period of expected benefit, which is assessed on a case by case basis. The carrying value of intellectual
property is reviewed annually by the directors and written down where it is considered appropriate.
Financial Instruments included in Equity
Ordinary share capital bears no special terms and conditions affecting income or capital entitlements of
the shareholders.
Derivative Instruments
Derivative instruments, in the form of forward exchange contracts and interest rate swaps, are used exclusively to
hedge foreign exchange and interest rate exposures.
Gains and losses on forward foreign exchange contracts are accounted for as outlined in Note 1(c).
Where a hedge transaction is terminated early and the anticipated transaction is still expected to occur, the deferred
gains or losses that arose on the foreign currency hedge prior to its termination continue to be deferred and are
included in the measurement of the purchase or sale when it occurs. When a hedge transaction is terminated early
because the anticipated transaction is no longer expected to occur, deferred gains and losses that arose on the foreign
currency hedge prior to its termination are included in the profit and loss statement for the period.
(o) Other Investments
Interests in non-subsidiary, non-associated corporations are included in investments at the lower of cost or the
recoverable amount.
(l) Employee Entitlements
Provision is made for the economic entity’s liability for employee entitlements arising from services rendered by
employees to balance date in accordance with AASB 1028 - Accounting for Employee Entitlements. Employee
entitlements, including on costs, expected to be settled within one year together with entitlements arising from wages
and salaries and annual leave which will be settled after one year, have been measured at their nominal amounts. Long
service leave, including on costs, payable later than one year have been measured at the present value of the
estimated future cash outflows to be made for those entitlements.
Contributions are made by the economic entity to employee superannuation funds and are charged as expenses when
incurred.
The economic entity does not record, as an asset or a liability, the difference between the employer established
superannuation plan’s accrued benefits and the net market value of the plan’s assets.
10
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
11
Economic Entity
2
Operating Revenue
Sales revenue
Other revenue
Interest received/receivable
Proceeds from sale of non-current assets
Proceeds from disposal of managed fund investments
Dividend received/receivable
Other
3
12
Chief Entity
Economic Entity
2000
$000
1999
$000
2000
$000
1999
$000
450,598
413,471
353,981
343,197
3,745
328
38,492
1,199
9,898
2,267
657
1,250
7,274
4,221
283
38,492
8,159
2,100
639
4,448
504,260
424,919
405,136
350,384
3,745
96
2,267
348
2,757
1,464
96
1,320
780
340
1,199
1,250
-
-
4
Operating Profit
Operating profit before income tax is arrived at after crediting
and charging the following specific items:
Credits
Interest received/receivable
Other persons and/or corporations
Controlled entities
Profit on sale of non-current assets
Dividends received/receivable
Other persons and/or corporations
Charges
Interest paid/payable
Other persons and/or corporations
Controlled entities
Foreign currency translation (gains)/losses
Loss on sale of non-current assets
Depreciation
Buildings
Plant and equipment
326
30
23
708
(428)
215
10
15
8
32
52
4,124
29,248
7,830
25,042
3,504
26,107
6,825
22,549
Total depreciation
33,372
32,872
29,611
29,374
Amortisation
Leasehold improvements
Goodwill
312
-
275
517
-
-
Total amortisation
312
792
-
-
Provisions
Officer and employee entitlements
Other provisions
Diminution in value of inventories
16,683
(450)
2,479
13,602
115
3,315
16,249
(450)
2,296
13,258
2,521
Total provisions
18,712
17,032
18,095
15,779
Rental expenses relating to operating leases
Research and development
4,176
43,594
2,517
40,830
2,786
39,435
1,360
37,257
CSL Limited and Controlled Entities (ACN 051 588 348)
5
Chief Entity
2000
$000
1999
$000
2000
$000
1999
$000
Operating profit before income tax
80,575
70,292
71,231
64,564
Income tax calculated at 36%
29,007
25,305
25,643
23,243
Tax effect of permanent differences
Building depreciation
Reduction in tax arising from the tax incentive for R&D
Under/(over) provision in previous year
Restatement of deferred tax balances due to change in tax rate
Amortisation of goodwill
Other non-allowable/assessable items
356
(3,002)
480
(677)
9
370
(2,603)
(778)
186
430
356
(3,002)
(114)
(664)
9
370
(2,603)
(773)
73
Income tax expense adjusted for permanent differences
26,173
22,910
22,228
20,310
113
47
113
47
Interim ordinary dividend of 8c per share paid 26 April 2000
fully franked (1999: 7c per share fully franked)
10,600
9,216
10,600
9,216
Proposed final ordinary dividend of 15c per share
fully franked (1999: 14c per share fully franked)
22,361
18,431
22,361
18,431
33,074
27,694
33,074
27,694
64,914
46,677
51,160
36,921
Income Tax
The aggregate amount of income tax attributable to the financial year
differs by more than 15% from the amount calculated on the
operating profit. The differences are reconciled as follows:
Dividends - Paid and Proposed
Appropriation of 1999 final dividend (14c per share fully franked)
in respect of shares issued after 30 June 1999 and before the record
date for dividends (1998: 12c per share fully franked)
The amount of retained profits and reserves that could be
distributed as fully franked dividends from franking credits that
exist or will arise after payment of income tax in the next year,
excluding credits attaching to the proposed dividend shown above.
Class C - franked to 34%
CSL Limited and Controlled Entities (ACN 051 588 348)
13
Economic Entity
2
Operating Revenue
Sales revenue
Other revenue
Interest received/receivable
Proceeds from sale of non-current assets
Proceeds from disposal of managed fund investments
Dividend received/receivable
Other
3
12
Chief Entity
Economic Entity
2000
$000
1999
$000
2000
$000
1999
$000
450,598
413,471
353,981
343,197
3,745
328
38,492
1,199
9,898
2,267
657
1,250
7,274
4,221
283
38,492
8,159
2,100
639
4,448
504,260
424,919
405,136
350,384
3,745
96
2,267
348
2,757
1,464
96
1,320
780
340
1,199
1,250
-
-
4
Operating Profit
Operating profit before income tax is arrived at after crediting
and charging the following specific items:
Credits
Interest received/receivable
Other persons and/or corporations
Controlled entities
Profit on sale of non-current assets
Dividends received/receivable
Other persons and/or corporations
Charges
Interest paid/payable
Other persons and/or corporations
Controlled entities
Foreign currency translation (gains)/losses
Loss on sale of non-current assets
Depreciation
Buildings
Plant and equipment
326
30
23
708
(428)
215
10
15
8
32
52
4,124
29,248
7,830
25,042
3,504
26,107
6,825
22,549
Total depreciation
33,372
32,872
29,611
29,374
Amortisation
Leasehold improvements
Goodwill
312
-
275
517
-
-
Total amortisation
312
792
-
-
Provisions
Officer and employee entitlements
Other provisions
Diminution in value of inventories
16,683
(450)
2,479
13,602
115
3,315
16,249
(450)
2,296
13,258
2,521
Total provisions
18,712
17,032
18,095
15,779
Rental expenses relating to operating leases
Research and development
4,176
43,594
2,517
40,830
2,786
39,435
1,360
37,257
CSL Limited and Controlled Entities (ACN 051 588 348)
5
Chief Entity
2000
$000
1999
$000
2000
$000
1999
$000
Operating profit before income tax
80,575
70,292
71,231
64,564
Income tax calculated at 36%
29,007
25,305
25,643
23,243
Tax effect of permanent differences
Building depreciation
Reduction in tax arising from the tax incentive for R&D
Under/(over) provision in previous year
Restatement of deferred tax balances due to change in tax rate
Amortisation of goodwill
Other non-allowable/assessable items
356
(3,002)
480
(677)
9
370
(2,603)
(778)
186
430
356
(3,002)
(114)
(664)
9
370
(2,603)
(773)
73
Income tax expense adjusted for permanent differences
26,173
22,910
22,228
20,310
113
47
113
47
Interim ordinary dividend of 8c per share paid 26 April 2000
fully franked (1999: 7c per share fully franked)
10,600
9,216
10,600
9,216
Proposed final ordinary dividend of 15c per share
fully franked (1999: 14c per share fully franked)
22,361
18,431
22,361
18,431
33,074
27,694
33,074
27,694
64,914
46,677
51,160
36,921
Income Tax
The aggregate amount of income tax attributable to the financial year
differs by more than 15% from the amount calculated on the
operating profit. The differences are reconciled as follows:
Dividends - Paid and Proposed
Appropriation of 1999 final dividend (14c per share fully franked)
in respect of shares issued after 30 June 1999 and before the record
date for dividends (1998: 12c per share fully franked)
The amount of retained profits and reserves that could be
distributed as fully franked dividends from franking credits that
exist or will arise after payment of income tax in the next year,
excluding credits attaching to the proposed dividend shown above.
Class C - franked to 34%
CSL Limited and Controlled Entities (ACN 051 588 348)
13
Economic Entity
6
Current Assets - Receivables
Trade debtors
Less: provision for doubtful debts
Related bodies corporate
Controlled entities
Other debtors
7
Current Assets - Short Term Investments
11am cash deposits
Bank endorsed bills of exchange
Chief Entity
2000
$000
1999
$000
2000
$000
1999
$000
70,010
878
42,774
847
54,636
500
28,677
500
69,132
41,927
54,136
28,177
4,042
7,186
2,012
867
6,242
73,174
49,113
56,148
35,286
371,902
40,224
7,300
35,391
371,902
40,224
7,300
35,391
412,126
42,691
412,126
42,691
The bank bills mature within 3 - 30 days and have an average yield of 6.06% (1999: 4.92%).
8
9
11 Non-Current Assets - Investments
Investments integral to general insurance activities carried
at net market value
Managed Unit Trusts (refer Note 1 (m))
Investments in non-controlled entities - at cost
Shares in controlled entities - at cost (refer Note 30)
12 Non-Current Assets - Property, Plant and Equipment
Land
At independent valuation 1999
Buildings
At independent valuation 1999
At cost
Less: accumulated depreciation
Chief Entity
2000
$000
1999
$000
2000
$000
1999
$000
7,178
-
36,349
679
-
7,178
39,957
679
39,957
7,178
37,028
47,135
40,636
27,250
27,265
25,029
25,229
27,250
27,265
25,029
25,229
69,142
5,743
4,124
69,142
-
59,800
1,523
3,504
59,800
-
70,761
69,142
57,819
59,800
98,011
96,407
82,848
85,029
2,519
1,104
1,775
772
171
171
171
171
1,415
1,003
-
-
Current Assets - Inventories
Raw materials and stores - at cost
Less: provision for diminution in value
27,264
1,210
22,852
667
15,670
811
15,521
367
Raw materials and stores - net
26,054
22,185
14,859
15,154
Work in progress - at cost
Less: provision for diminution in value
33,533
711
26,885
2,184
25,711
546
20,839
2,184
Work in progress - net
32,822
24,701
25,165
18,655
Finished goods - at cost
Less: provision for diminution in value
61,998
2,711
54,884
3,705
27,240
1,682
26,804
2,441
Plant and equipment
Plant and equipment at cost
Less: accumulated depreciation
394,265
224,703
364,168
196,264
372,341
213,301
345,068
187,903
Finished goods - net
59,287
51,179
25,558
24,363
Total plant and equipment
169,562
167,904
159,040
157,165
118,163
98,065
65,582
58,172
Capital work in progress
44,759
42,330
43,029
40,637
313,747
307,644
284,917
282,831
840
1,940
575
2,550
Current Assets - Other
Prepayments
10 Non-Current Assets - Receivables
Related bodies corporate
Controlled entities
Loan to managing director (refer Notes 24 and 29)
Loans to employees (refer Note 24)
Other
14
Economic Entity
CSL Limited and Controlled Entities (ACN 051 588 348)
276
4,660
852
558
6,866
2,853
38,631
276
4,660
852
28,432
558
6,866
2,853
5,788
10,277
44,419
38,709
Land and buildings
Leasehold improvements
Leasehold improvements at cost
Less: accumulated depreciation
Valuation of land and buildings
The basis of valuation of land and buildings is fair market value based on existing use. The 1999 valuations in Australia
and New Zealand were carried out by Gary R Longden, AAPI, of Jones Lang LaSalle Advisory Services Pty Ltd.
The 1999 valuations in the USA were carried out by Kenny Meyers, SRA, of Bliss Associates Inc., and by P Richard
Seevers, MAI, of Seevers Jordan Ziegenmeyer.
CSL Limited and Controlled Entities (ACN 051 588 348)
15
Economic Entity
6
Current Assets - Receivables
Trade debtors
Less: provision for doubtful debts
Related bodies corporate
Controlled entities
Other debtors
7
Current Assets - Short Term Investments
11am cash deposits
Bank endorsed bills of exchange
Chief Entity
2000
$000
1999
$000
2000
$000
1999
$000
70,010
878
42,774
847
54,636
500
28,677
500
69,132
41,927
54,136
28,177
4,042
7,186
2,012
867
6,242
73,174
49,113
56,148
35,286
371,902
40,224
7,300
35,391
371,902
40,224
7,300
35,391
412,126
42,691
412,126
42,691
The bank bills mature within 3 - 30 days and have an average yield of 6.06% (1999: 4.92%).
8
9
11 Non-Current Assets - Investments
Investments integral to general insurance activities carried
at net market value
Managed Unit Trusts (refer Note 1 (m))
Investments in non-controlled entities - at cost
Shares in controlled entities - at cost (refer Note 30)
12 Non-Current Assets - Property, Plant and Equipment
Land
At independent valuation 1999
Buildings
At independent valuation 1999
At cost
Less: accumulated depreciation
Chief Entity
2000
$000
1999
$000
2000
$000
1999
$000
7,178
-
36,349
679
-
7,178
39,957
679
39,957
7,178
37,028
47,135
40,636
27,250
27,265
25,029
25,229
27,250
27,265
25,029
25,229
69,142
5,743
4,124
69,142
-
59,800
1,523
3,504
59,800
-
70,761
69,142
57,819
59,800
98,011
96,407
82,848
85,029
2,519
1,104
1,775
772
171
171
171
171
1,415
1,003
-
-
Current Assets - Inventories
Raw materials and stores - at cost
Less: provision for diminution in value
27,264
1,210
22,852
667
15,670
811
15,521
367
Raw materials and stores - net
26,054
22,185
14,859
15,154
Work in progress - at cost
Less: provision for diminution in value
33,533
711
26,885
2,184
25,711
546
20,839
2,184
Work in progress - net
32,822
24,701
25,165
18,655
Finished goods - at cost
Less: provision for diminution in value
61,998
2,711
54,884
3,705
27,240
1,682
26,804
2,441
Plant and equipment
Plant and equipment at cost
Less: accumulated depreciation
394,265
224,703
364,168
196,264
372,341
213,301
345,068
187,903
Finished goods - net
59,287
51,179
25,558
24,363
Total plant and equipment
169,562
167,904
159,040
157,165
118,163
98,065
65,582
58,172
Capital work in progress
44,759
42,330
43,029
40,637
313,747
307,644
284,917
282,831
840
1,940
575
2,550
Current Assets - Other
Prepayments
10 Non-Current Assets - Receivables
Related bodies corporate
Controlled entities
Loan to managing director (refer Notes 24 and 29)
Loans to employees (refer Note 24)
Other
14
Economic Entity
CSL Limited and Controlled Entities (ACN 051 588 348)
276
4,660
852
558
6,866
2,853
38,631
276
4,660
852
28,432
558
6,866
2,853
5,788
10,277
44,419
38,709
Land and buildings
Leasehold improvements
Leasehold improvements at cost
Less: accumulated depreciation
Valuation of land and buildings
The basis of valuation of land and buildings is fair market value based on existing use. The 1999 valuations in Australia
and New Zealand were carried out by Gary R Longden, AAPI, of Jones Lang LaSalle Advisory Services Pty Ltd.
The 1999 valuations in the USA were carried out by Kenny Meyers, SRA, of Bliss Associates Inc., and by P Richard
Seevers, MAI, of Seevers Jordan Ziegenmeyer.
CSL Limited and Controlled Entities (ACN 051 588 348)
15
Economic Entity
13 Non-Current Assets - Intangibles
Goodwill
Less: accumulated amortisation
Intellectual property
Less: accumulated amortisation
14 Non-Current Assets - Other
Future income tax benefit
Attributable to provisions
Attributable to carried forward losses
15 Current Liabilities - Accounts Payable
Trade creditors
Other creditors
Outstanding claims - insurance
Related bodies corporate - controlled entity
16 Current Liabilities - Borrowings
Bank overdrafts (unsecured)
17 Current Liabilities - Provisions
Dividends
Taxation
Employee entitlements
Other
18 Non-Current Liabilities - Borrowings
Bank borrowings (unsecured)
19 Non-Current Liabilities - Provisions
Claims provision including IBNR
Employee entitlements
Chief Entity
Economic Entity
2000
$000
1999
$000
2000
$000
1999
$000
5,585
5,585
5,679
5,679
-
-
-
-
-
-
956
956
956
956
-
-
-
-
-
-
10,962
11,887
8,014
9,350
10,346
616
11,700
187
7,793
221
9,350
-
10,962
11,887
8,014
9,350
33,610
23,688
365
-
26,452
21,830
613
-
24,894
12,393
365
11,607
22,005
14,775
-
57,663
48,895
49,259
36,780
1,732
1,771
1,732
1,620
1,732
1,771
1,732
1,620
22,361
14,436
11,674
1,157
18,431
15,813
10,904
1,569
22,361
12,925
10,725
-
18,431
14,740
10,183
450
49,628
46,717
46,011
43,804
2,491
7,175
-
-
2,491
7,175
-
-
24,635
6,863
24,635
7,132
24,635
6,863
7,132
31,498
31,767
31,498
7,132
20 Non-Current Liabilities - Other
Provision for deferred income tax
21 Share Capital - CSL Limited
Share Capital
Movements in Share Capital for the year ended 30 June 2000:
Issued and paid up capital at 30 June 1999
Share premium reserve transferred to share capital following
amendments to Corporations Law
Shares issued on equity placement (a)
Shares issued to employees through participation in SESOP (b)
Shares issued to employees through participation in GESOP (c)
Share capital at 30 June 2000
Movements in issued shares for the year:
Opening number of shares
Issued under equity placement
Issued to employees through participation in GESOP
Issued to employees through participation in SESOP
Closing number of shares
Chief Entity
2000
$000
1999
$000
2000
$000
1999
$000
9,887
10,291
9,176
9,807
591,321
233,502
591,321
233,502
233,502
131,261
233,502
131,261
353,925
3,719
175
101,302
939
-
353,925
3,719
175
101,302
939
-
591,321
233,502
591,321
233,502
131,653
16,500
13
910
131,261
392
131,653
16,500
13
910
131,261
392
149,076
131,653
149,076
131,653
(a) On 7 June 2000, the chief entity issued 16,500,000 fully paid shares at $22.00 per share for the purpose of acquiring the
plasma fractionation assets and business of Zentrallaboratorium Blutspendedienst (ZLB). Costs associated with the
equity raising having been applied against share capital.
(b) Options exercised under SESOP as disclosed at Note 24 during the year were as follows:
-
391,550 issued @ $2.40
150,000 issued @ $5.01
257,652 issued @ $5.29
21,000 issued @ $5.73
90,000 issued @ $6.05
939
752
1,363
121
544
939
-
939
752
1,363
121
544
939
-
3,719
939
3,719
939
-
175
-
(c) Shares issued to employees under GESOP as disclosed at Note 24 were as follows:
- 13,460 issued @ $12.98
175
The claims provision including IBNR (incurred but not reported), transferred from Coselco Insurance Pty Ltd (In Liquidation)
to the chief entity, is determined on an actuarial basis as the present value of potential future payments, using statistics
based on past experience and trends. The liability covers claims incurred but not paid, incurred but not reported claims and
the anticipated direct and indirect costs of settling those claims.
16
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
17
Economic Entity
13 Non-Current Assets - Intangibles
Goodwill
Less: accumulated amortisation
Intellectual property
Less: accumulated amortisation
14 Non-Current Assets - Other
Future income tax benefit
Attributable to provisions
Attributable to carried forward losses
15 Current Liabilities - Accounts Payable
Trade creditors
Other creditors
Outstanding claims - insurance
Related bodies corporate - controlled entity
16 Current Liabilities - Borrowings
Bank overdrafts (unsecured)
17 Current Liabilities - Provisions
Dividends
Taxation
Employee entitlements
Other
18 Non-Current Liabilities - Borrowings
Bank borrowings (unsecured)
19 Non-Current Liabilities - Provisions
Claims provision including IBNR
Employee entitlements
Chief Entity
Economic Entity
2000
$000
1999
$000
2000
$000
1999
$000
5,585
5,585
5,679
5,679
-
-
-
-
-
-
956
956
956
956
-
-
-
-
-
-
10,962
11,887
8,014
9,350
10,346
616
11,700
187
7,793
221
9,350
-
10,962
11,887
8,014
9,350
33,610
23,688
365
-
26,452
21,830
613
-
24,894
12,393
365
11,607
22,005
14,775
-
57,663
48,895
49,259
36,780
1,732
1,771
1,732
1,620
1,732
1,771
1,732
1,620
22,361
14,436
11,674
1,157
18,431
15,813
10,904
1,569
22,361
12,925
10,725
-
18,431
14,740
10,183
450
49,628
46,717
46,011
43,804
2,491
7,175
-
-
2,491
7,175
-
-
24,635
6,863
24,635
7,132
24,635
6,863
7,132
31,498
31,767
31,498
7,132
20 Non-Current Liabilities - Other
Provision for deferred income tax
21 Share Capital - CSL Limited
Share Capital
Movements in Share Capital for the year ended 30 June 2000:
Issued and paid up capital at 30 June 1999
Share premium reserve transferred to share capital following
amendments to Corporations Law
Shares issued on equity placement (a)
Shares issued to employees through participation in SESOP (b)
Shares issued to employees through participation in GESOP (c)
Share capital at 30 June 2000
Movements in issued shares for the year:
Opening number of shares
Issued under equity placement
Issued to employees through participation in GESOP
Issued to employees through participation in SESOP
Closing number of shares
Chief Entity
2000
$000
1999
$000
2000
$000
1999
$000
9,887
10,291
9,176
9,807
591,321
233,502
591,321
233,502
233,502
131,261
233,502
131,261
353,925
3,719
175
101,302
939
-
353,925
3,719
175
101,302
939
-
591,321
233,502
591,321
233,502
131,653
16,500
13
910
131,261
392
131,653
16,500
13
910
131,261
392
149,076
131,653
149,076
131,653
(a) On 7 June 2000, the chief entity issued 16,500,000 fully paid shares at $22.00 per share for the purpose of acquiring the
plasma fractionation assets and business of Zentrallaboratorium Blutspendedienst (ZLB). Costs associated with the
equity raising having been applied against share capital.
(b) Options exercised under SESOP as disclosed at Note 24 during the year were as follows:
-
391,550 issued @ $2.40
150,000 issued @ $5.01
257,652 issued @ $5.29
21,000 issued @ $5.73
90,000 issued @ $6.05
939
752
1,363
121
544
939
-
939
752
1,363
121
544
939
-
3,719
939
3,719
939
-
175
-
(c) Shares issued to employees under GESOP as disclosed at Note 24 were as follows:
- 13,460 issued @ $12.98
175
The claims provision including IBNR (incurred but not reported), transferred from Coselco Insurance Pty Ltd (In Liquidation)
to the chief entity, is determined on an actuarial basis as the present value of potential future payments, using statistics
based on past experience and trends. The liability covers claims incurred but not paid, incurred but not reported claims and
the anticipated direct and indirect costs of settling those claims.
16
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
17
Economic Entity
2000
$000
22 Reserves
(a) Composition
Asset revaluation reserve
Foreign currency translation reserve
General reserve
Options reserve
1999
$000
2000
$000
Economic Entity
1999
$000
23 Directors‘ and Executives‘ Remuneration
(a) Directors‘ Remuneration
Income received or due and receivable by all directors1 of each
entity in the economic entity from all companies in the economic
entity and any related bodies corporate.
22,308
5,667
5,618
2,785
22,308
2,367
5,618
6,574
22,824
5,618
2,785
22,824
5,618
6,574
36,378
36,867
31,227
35,016
Income received or due and receivable by all directors of the chief
entity from the chief entity and any related bodies corporate.
22,308
-
13,921
8,387
22,824
-
13,877
8,947
22,308
22,308
22,824
22,824
Under Article 89, the amount currently approved for the purpose
of paying fees to directors of the chief entity who are not full time
employees of the economic entity is $400,000 per annum. Of this
amount such directors in 2000 received $375,050 (1999: $356,250).
Foreign currency translation reserve
Opening balance
Net exchange differences on translation of foreign controlled entity
2,367
3,300
5,781
(3,414)
-
-
Closing balance
5,667
2,367
-
-
Share premium reserve
Opening balance
Transfer to share capital
-
101,302
(101,302)
-
101,302
(101,302)
Closing balance
-
-
-
-
Options reserve
Opening balance
Options exercised during the period
6,574
3,789
7,514
940
6,574
3,789
7,514
940
Closing balance
2,785
6,574
2,785
6,574
(b) Movements
Asset revaluation reserve
Opening balance
Increment on revaluation of land and buildings
Closing balance
Number of options outstanding at balance date
SESOP
SESOP II
18
Chief Entity
CSL Limited and Controlled Entities (ACN 051 588 348)
2000
$000
1999
$000
1,363
1,219
Chief Entity
2000
$000
1999
$000
1,269
1,119
Number of chief entity directors whose income from the chief entity
and any related bodies corporate was within the following bands:
Number
$10,000 $20,000 $40,000 $50,000 $60,000 $80,000 $680,000 $830,000 -
$19,999
$29,999
$49,999
$59,999
$69,999
$89,999
$689,999
$839,999
1
2
2
1
1
1
1
4
2
1
1
-
Directors’ remuneration includes the value of insurance premiums made for the benefit of directors.
532,616
2,172,160
1,455,970
1,115,140
532,616
2,172,160
1,455,970
1,115,140
2,704,776
2,571,110
2,704,776
2,571,110
1 For the purposes of Note 23(a) the definition of director excludes
any person who is a full time employee of the economic entity,
unless that person is a director of the chief entity.
CSL Limited and Controlled Entities (ACN 051 588 348)
19
Economic Entity
2000
$000
22 Reserves
(a) Composition
Asset revaluation reserve
Foreign currency translation reserve
General reserve
Options reserve
1999
$000
2000
$000
Economic Entity
1999
$000
23 Directors‘ and Executives‘ Remuneration
(a) Directors‘ Remuneration
Income received or due and receivable by all directors1 of each
entity in the economic entity from all companies in the economic
entity and any related bodies corporate.
22,308
5,667
5,618
2,785
22,308
2,367
5,618
6,574
22,824
5,618
2,785
22,824
5,618
6,574
36,378
36,867
31,227
35,016
Income received or due and receivable by all directors of the chief
entity from the chief entity and any related bodies corporate.
22,308
-
13,921
8,387
22,824
-
13,877
8,947
22,308
22,308
22,824
22,824
Under Article 89, the amount currently approved for the purpose
of paying fees to directors of the chief entity who are not full time
employees of the economic entity is $400,000 per annum. Of this
amount such directors in 2000 received $375,050 (1999: $356,250).
Foreign currency translation reserve
Opening balance
Net exchange differences on translation of foreign controlled entity
2,367
3,300
5,781
(3,414)
-
-
Closing balance
5,667
2,367
-
-
Share premium reserve
Opening balance
Transfer to share capital
-
101,302
(101,302)
-
101,302
(101,302)
Closing balance
-
-
-
-
Options reserve
Opening balance
Options exercised during the period
6,574
3,789
7,514
940
6,574
3,789
7,514
940
Closing balance
2,785
6,574
2,785
6,574
(b) Movements
Asset revaluation reserve
Opening balance
Increment on revaluation of land and buildings
Closing balance
Number of options outstanding at balance date
SESOP
SESOP II
18
Chief Entity
CSL Limited and Controlled Entities (ACN 051 588 348)
2000
$000
1999
$000
1,363
1,219
Chief Entity
2000
$000
1999
$000
1,269
1,119
Number of chief entity directors whose income from the chief entity
and any related bodies corporate was within the following bands:
Number
$10,000 $20,000 $40,000 $50,000 $60,000 $80,000 $680,000 $830,000 -
$19,999
$29,999
$49,999
$59,999
$69,999
$89,999
$689,999
$839,999
1
2
2
1
1
1
1
4
2
1
1
-
Directors’ remuneration includes the value of insurance premiums made for the benefit of directors.
532,616
2,172,160
1,455,970
1,115,140
532,616
2,172,160
1,455,970
1,115,140
2,704,776
2,571,110
2,704,776
2,571,110
1 For the purposes of Note 23(a) the definition of director excludes
any person who is a full time employee of the economic entity,
unless that person is a director of the chief entity.
CSL Limited and Controlled Entities (ACN 051 588 348)
19
Economic Entity
2000
$000
1999
$000
Chief Entity
2000
$000
Economic Entity
1999
$000
23 Directors‘ and Executives‘ Remuneration (continued)
(b) Directors‘ Retirement Benefits
The following prescribed benefits were given to a person, or
to a prescribed superannuation fund, in connection with the
retirement of a person from a prescribed office in relation to
an entity in the economic entity during the financial year.
Benefits approved by the Members
246
127
12,604
8,116
246
127
12,604
8,116
The number of executive officers whose income was within the
following bands:
Number
CSL Limited and Controlled Entities (ACN 051 588 348)
1999
$000
$240,000 - $249,999
$250,000 - $259,999
$260,000 - $269,999
$270,000 - $279,999
$280,000 - $289,999
$290,000 - $299,999
$300,000 - $309,999
$310,000 - $319,999
$360,000 - $369,999
$370,000 - $379,999
$390,000 - $399,999
$440,000 - $449,999
$480,000 - $489,999
$490,000 - $499,999
$560,000 - $569,999
$590,000 - $599,999
$650,000 - $659,999
$680,000 - $689,999
$830,000 - $839,999
3
1
2
1
1
1
1
1
1
1
1
1
1
1
Number
1
1
1
1
1
1
-
3
1
2
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-
(e) Chief Executive Officer Memorandum of Understanding
The chief entity has entered into a Memorandum of Understanding with Dr Brian McNamee to give him an incentive to
align his actions with the interests of the shareholders.
Remuneration for the 1999-2000 financial year includes the value
of options issued to certain executives under SESOP II.
20
2000
$000
Number
Income received or due and receivable by Australian-based
executive officers (including executive directors) of the chief
entity, from the chief entity and any related bodies corporate,
whose income is $100,000 or more
$100,000 - $109,999
$110,000 - $119,999
$120,000 - $129,999
$130,000 - $139,999
$140,000 - $149,999
$150,000 - $159,999
$160,000 - $169,999
$180,000 - $189,999
$190,000 - $199,999
$200,000 - $209,999
$210,000 - $219,999
$220,000 - $229,999
$230,000 - $239,999
1999
$000
23 Directors‘ and Executives‘ Remuneration (continued)
(d) Executive Officers‘ Remuneration (continued)
(c) The names of chief entity directors who have held office
during the past two financial years unless otherwise stated are:
C J Harper (retired 12 October 1999)
P H Wade
D S Adam (retired 15 October 1998)
E A Alexander
Dr B A McNamee
K J Roberts
C I R McDonald
Dr A C Webster
I A Renard (appointed 19 August 1998)
(d) Executive Officers‘ Remuneration
Income received or due and receivable by Australian-based
executive officers (including executive directors) of the economic
entity, from all entities in the economic entity and any related
entities, whose income is $100,000 or more
2000
$000
Chief Entity
10
9
4
3
5
1
1
3
1
1
2
2
24 Employee Entitlements
Aggregate employee entitlement liability (refer Notes 17 and 19)
Number
15
10
4
5
2
1
1
1
3
1
10
9
4
3
5
1
1
3
1
1
2
2
The incentive is designed to encourage him to conduct the Company’s business with a view to the Company
outperforming an appropriate ASX industrial index progressively over a ten year period. If the Company’s share price
underperforms the said ASX index over the relevant period, no amount is payable in respect of that period.
15
10
4
5
2
1
1
1
3
1
18,537
18,036
17,588
17,315
(a) Employee Option Ownership Scheme
CSL limited offers to senior employees options over ordinary shares. CSL Limited operates two types of option plans.
Senior Executive Share Ownership Plan (SESOP)
Under the rules of SESOP the chief entity has provided an interest free loan to each participant which was used to
acquire the options. A receivable is included in the financial statements in Note 10. In the event of lapse, the chief entity
has undertaken to acquire the options at an amount equal to the option price. This amount will be used to discharge the
participants’ loans. Options issued under SESOP ceased during the year ended 30 June 1997.
Performance hurdles for both the economic entity and employees must be met before the options can be exercised.
The exercise price is calculated using the weighted average price over the 5 days preceding the issue date of the option.
CSL Limited and Controlled Entities (ACN 051 588 348)
21
Economic Entity
2000
$000
1999
$000
Chief Entity
2000
$000
Economic Entity
1999
$000
23 Directors‘ and Executives‘ Remuneration (continued)
(b) Directors‘ Retirement Benefits
The following prescribed benefits were given to a person, or
to a prescribed superannuation fund, in connection with the
retirement of a person from a prescribed office in relation to
an entity in the economic entity during the financial year.
Benefits approved by the Members
246
127
12,604
8,116
246
127
12,604
8,116
The number of executive officers whose income was within the
following bands:
Number
CSL Limited and Controlled Entities (ACN 051 588 348)
1999
$000
$240,000 - $249,999
$250,000 - $259,999
$260,000 - $269,999
$270,000 - $279,999
$280,000 - $289,999
$290,000 - $299,999
$300,000 - $309,999
$310,000 - $319,999
$360,000 - $369,999
$370,000 - $379,999
$390,000 - $399,999
$440,000 - $449,999
$480,000 - $489,999
$490,000 - $499,999
$560,000 - $569,999
$590,000 - $599,999
$650,000 - $659,999
$680,000 - $689,999
$830,000 - $839,999
3
1
2
1
1
1
1
1
1
1
1
1
1
1
Number
1
1
1
1
1
1
-
3
1
2
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-
(e) Chief Executive Officer Memorandum of Understanding
The chief entity has entered into a Memorandum of Understanding with Dr Brian McNamee to give him an incentive to
align his actions with the interests of the shareholders.
Remuneration for the 1999-2000 financial year includes the value
of options issued to certain executives under SESOP II.
20
2000
$000
Number
Income received or due and receivable by Australian-based
executive officers (including executive directors) of the chief
entity, from the chief entity and any related bodies corporate,
whose income is $100,000 or more
$100,000 - $109,999
$110,000 - $119,999
$120,000 - $129,999
$130,000 - $139,999
$140,000 - $149,999
$150,000 - $159,999
$160,000 - $169,999
$180,000 - $189,999
$190,000 - $199,999
$200,000 - $209,999
$210,000 - $219,999
$220,000 - $229,999
$230,000 - $239,999
1999
$000
23 Directors‘ and Executives‘ Remuneration (continued)
(d) Executive Officers‘ Remuneration (continued)
(c) The names of chief entity directors who have held office
during the past two financial years unless otherwise stated are:
C J Harper (retired 12 October 1999)
P H Wade
D S Adam (retired 15 October 1998)
E A Alexander
Dr B A McNamee
K J Roberts
C I R McDonald
Dr A C Webster
I A Renard (appointed 19 August 1998)
(d) Executive Officers‘ Remuneration
Income received or due and receivable by Australian-based
executive officers (including executive directors) of the economic
entity, from all entities in the economic entity and any related
entities, whose income is $100,000 or more
2000
$000
Chief Entity
10
9
4
3
5
1
1
3
1
1
2
2
24 Employee Entitlements
Aggregate employee entitlement liability (refer Notes 17 and 19)
Number
15
10
4
5
2
1
1
1
3
1
10
9
4
3
5
1
1
3
1
1
2
2
The incentive is designed to encourage him to conduct the Company’s business with a view to the Company
outperforming an appropriate ASX industrial index progressively over a ten year period. If the Company’s share price
underperforms the said ASX index over the relevant period, no amount is payable in respect of that period.
15
10
4
5
2
1
1
1
3
1
18,537
18,036
17,588
17,315
(a) Employee Option Ownership Scheme
CSL limited offers to senior employees options over ordinary shares. CSL Limited operates two types of option plans.
Senior Executive Share Ownership Plan (SESOP)
Under the rules of SESOP the chief entity has provided an interest free loan to each participant which was used to
acquire the options. A receivable is included in the financial statements in Note 10. In the event of lapse, the chief entity
has undertaken to acquire the options at an amount equal to the option price. This amount will be used to discharge the
participants’ loans. Options issued under SESOP ceased during the year ended 30 June 1997.
Performance hurdles for both the economic entity and employees must be met before the options can be exercised.
The exercise price is calculated using the weighted average price over the 5 days preceding the issue date of the option.
CSL Limited and Controlled Entities (ACN 051 588 348)
21
24 Employee Entitlements (continued)
(a) Employee Option Ownership Scheme
Economic Entity
2000
$000
Revised Senior Executive Share Ownership Plan (SESOP II)
Under the rules of SESOP II no loan is made to the recipients of options until the option is exercised. Consequently, no
amounts are recorded in receivables until the option is exercised.
Performance hurdles for both the economic entity and employees must be met before the options can be exercised.
The exercise price is calculated using the weighted average price over the 5 days preceding the issue date of the option.
SESOP and SESOP II Options
Issue Date
No. of
Employees
No. Options
01-Jul-99
13
3
11
1
1
1
12
11
26
1
1
391,550
450,000
429,420
35,000
150,000
300,000
462,000
353,140
-
SESOP - November 1994
SESOP - July 1996
SESOP - July 1996*
SESOP - February 1997
SESOP - April 1997
SESOP II - November 1997
SESOP II - March 1998
SESOP II - July 1998*
SESOP II - July 1999
SESOP II - November 1999
SESOP II - February 2000
Total
Issued
(Exercised) No. Options
(Cancelled)
30-Jun-99
(391,550)
(150,000)
(270,804)
(21,000)
(90,000)
(30,530)
942,550
85,000
60,000
2,571,110
300,000
158,616
14,000
60,000
300,000
462,000
322,610
942,550
85,000
60,000
1999
$000
Chief Entity
2000
$000
1999
$000
26 Commitments
(a) Acquisition of assets from Rotkreuzstiftung Zentrallaboratorium Blutspendedienst SRK (the “Foundation”).
On the 7 June 2000, CSL Limited signed a conditional agreement to acquire the plasma fractionation assets and
business of ZLB for an initial consideration of approximately CHF 860 million (AUD $898 million) from the Foundation.
Further payments of up to CHF 113.2 million (AUD $115.1 million) may be made if certain performance targets are
achieved.
The Foundation will be paid 77.5% of the initial consideration on settlement and the further 22.5% of consideration as a
deferred payment in 2005.
Exercise
Price
Expiry
Date
$2.40
$5.01
$5.29
$5.73
$6.05
$8.93
$11.45
$10.82
$13.23
$20.84
$21.01
Nov-99
Jul-01
Jul-01
Feb-02
Apr-02
Nov-04
Mar-05
Jul-05
Jul-06
Nov-06
Feb-07
CSL Limited has entered into a forward exchange contract to hedge the consideration of CHF 666 million payable on
settlement as disclosed in Note 38.
At balance date, conditions necessary to complete the acquisition had not been achieved and as a result the
acquisition is not reflected in the financial statements.
(b) Capital Commitments
Total capital expenditure contracted for at balance date but not
provided for in the financial statements, payable:
Not later than one year
* During the year a total of 30,530 (July 1998) and 13,152 (July 1996) options were cancelled.
(1) Options in CSL Limited are not listed and as such have no market value.
(2) Options issued under SESOP and SESOP II have been valued for the purpose of disclosing executive remuneration
using the Black-Scholes option valuation methodology as at the date of issue.
5,696
6,208
5,696
3,087
4,014
840
2,508
3,443
-
1,827
1,720
-
1,557
1,573
-
7,941
5,951
3,547
3,130
7,941
5,951
3,547
3,130
(c) Lease Commitments
Total lease expenditure contracted for at balance date but not
provided for in the financial statements, payable:
Not later than one year
Later than one year but not later than five years
Later than five years
2,704,776
6,266
Representing:
Non-cancellable operating leases
Operating leases entered into relate predominately to the leasing of motor vehicles.
(b) General Employee Share Ownership Plan (GESOP)
During 1999-2000, the chief entity offered employees the option of taking a bonus entitlement earned under either
the Enterprise Bargaining Agreement or the performance management system in the form of shares in the chief
entity in lieu of cash payments. The shares were offered under a share plan complying with the legislative
requirements, including a limit on the value of shares, for concessional tax treatment in the hands of the recipient.
A total of 45,552 shares were issued to employees.
Economic Entity
25 Remuneration of Auditors
Amounts received, or due and receivable, by chief entity auditors for:
- auditing the financial statements
- other services
Amounts received, or due and receivable, by other auditors for:
- auditing the financial statements
22
CSL Limited and Controlled Entities (ACN 051 588 348)
(d) Other
On 19 June 1998, CSL Limited entered into an agreement with Aviron to develop and register for sale Aviron’s intranasal
influenza vaccine. Upon successful achievement of a series of milestones related to the registration and PBS listing of
the product, Aviron will become entitled to options over 1,000,000 ordinary shares in CSL Limited at an exercise price of
$9.82 per share plus a premium of up to $2.00 depending on when exercised.
Chief Entity
2000
$000
1999
$000
2000
$000
1999
$000
157
294
153
7
143
294
140
5
119
117
-
-
CSL Limited and Controlled Entities (ACN 051 588 348)
23
24 Employee Entitlements (continued)
(a) Employee Option Ownership Scheme
Economic Entity
2000
$000
Revised Senior Executive Share Ownership Plan (SESOP II)
Under the rules of SESOP II no loan is made to the recipients of options until the option is exercised. Consequently, no
amounts are recorded in receivables until the option is exercised.
Performance hurdles for both the economic entity and employees must be met before the options can be exercised.
The exercise price is calculated using the weighted average price over the 5 days preceding the issue date of the option.
SESOP and SESOP II Options
Issue Date
No. of
Employees
No. Options
01-Jul-99
13
3
11
1
1
1
12
11
26
1
1
391,550
450,000
429,420
35,000
150,000
300,000
462,000
353,140
-
SESOP - November 1994
SESOP - July 1996
SESOP - July 1996*
SESOP - February 1997
SESOP - April 1997
SESOP II - November 1997
SESOP II - March 1998
SESOP II - July 1998*
SESOP II - July 1999
SESOP II - November 1999
SESOP II - February 2000
Total
Issued
(Exercised) No. Options
(Cancelled)
30-Jun-99
(391,550)
(150,000)
(270,804)
(21,000)
(90,000)
(30,530)
942,550
85,000
60,000
2,571,110
300,000
158,616
14,000
60,000
300,000
462,000
322,610
942,550
85,000
60,000
1999
$000
Chief Entity
2000
$000
1999
$000
26 Commitments
(a) Acquisition of assets from Rotkreuzstiftung Zentrallaboratorium Blutspendedienst SRK (the “Foundation”).
On the 7 June 2000, CSL Limited signed a conditional agreement to acquire the plasma fractionation assets and
business of ZLB for an initial consideration of approximately CHF 860 million (AUD $898 million) from the Foundation.
Further payments of up to CHF 113.2 million (AUD $115.1 million) may be made if certain performance targets are
achieved.
The Foundation will be paid 77.5% of the initial consideration on settlement and the further 22.5% of consideration as a
deferred payment in 2005.
Exercise
Price
Expiry
Date
$2.40
$5.01
$5.29
$5.73
$6.05
$8.93
$11.45
$10.82
$13.23
$20.84
$21.01
Nov-99
Jul-01
Jul-01
Feb-02
Apr-02
Nov-04
Mar-05
Jul-05
Jul-06
Nov-06
Feb-07
CSL Limited has entered into a forward exchange contract to hedge the consideration of CHF 666 million payable on
settlement as disclosed in Note 38.
At balance date, conditions necessary to complete the acquisition had not been achieved and as a result the
acquisition is not reflected in the financial statements.
(b) Capital Commitments
Total capital expenditure contracted for at balance date but not
provided for in the financial statements, payable:
Not later than one year
* During the year a total of 30,530 (July 1998) and 13,152 (July 1996) options were cancelled.
(1) Options in CSL Limited are not listed and as such have no market value.
(2) Options issued under SESOP and SESOP II have been valued for the purpose of disclosing executive remuneration
using the Black-Scholes option valuation methodology as at the date of issue.
5,696
6,208
5,696
3,087
4,014
840
2,508
3,443
-
1,827
1,720
-
1,557
1,573
-
7,941
5,951
3,547
3,130
7,941
5,951
3,547
3,130
(c) Lease Commitments
Total lease expenditure contracted for at balance date but not
provided for in the financial statements, payable:
Not later than one year
Later than one year but not later than five years
Later than five years
2,704,776
6,266
Representing:
Non-cancellable operating leases
Operating leases entered into relate predominately to the leasing of motor vehicles.
(b) General Employee Share Ownership Plan (GESOP)
During 1999-2000, the chief entity offered employees the option of taking a bonus entitlement earned under either
the Enterprise Bargaining Agreement or the performance management system in the form of shares in the chief
entity in lieu of cash payments. The shares were offered under a share plan complying with the legislative
requirements, including a limit on the value of shares, for concessional tax treatment in the hands of the recipient.
A total of 45,552 shares were issued to employees.
Economic Entity
25 Remuneration of Auditors
Amounts received, or due and receivable, by chief entity auditors for:
- auditing the financial statements
- other services
Amounts received, or due and receivable, by other auditors for:
- auditing the financial statements
22
CSL Limited and Controlled Entities (ACN 051 588 348)
(d) Other
On 19 June 1998, CSL Limited entered into an agreement with Aviron to develop and register for sale Aviron’s intranasal
influenza vaccine. Upon successful achievement of a series of milestones related to the registration and PBS listing of
the product, Aviron will become entitled to options over 1,000,000 ordinary shares in CSL Limited at an exercise price of
$9.82 per share plus a premium of up to $2.00 depending on when exercised.
Chief Entity
2000
$000
1999
$000
2000
$000
1999
$000
157
294
153
7
143
294
140
5
119
117
-
-
CSL Limited and Controlled Entities (ACN 051 588 348)
23
Economic Entity
2000
$000
Chief Entity
1999
$000
2000
$000
1999
$000
27 Contingent Liabilities
(a) Details and estimates of maximum amounts of contingent liabilities, classified in accordance with the party from whom
the liability could arise for which no provisions are included in the financial statements, are as follows:
29 Related Parties
(a) Directors
The following persons held the position of director of CSL Limited during all of the past two financial years unless
otherwise stated: C J Harper (retired 12 October 1999), P H Wade, D S Adam (retired 15 October 1998), E A Alexander,
Dr B A McNamee, C I R McDonald, K J Roberts, Dr A C Webster and I A Renard (appointed 19 August 1998).
Information in relation to remuneration of directors is disclosed in Note 23.
(b) Directors‘ Shareholdings
Chief entity guarantee of controlled entity borrowings
Bank guarantees
-
-
2,491
7,175
1,055
23
1,055
23
1,055
23
3,546
7,198
(b) As explained in Note 30, the chief entity has entered into a deed of cross guarantee in accordance with a class order
issued by the Australian Securities and Investments Commission. The chief entity, and the controlled entity which is
party to the deed, have guaranteed the repayment of all current and future creditors in the event that any of these
companies are wound up.
(c) The maximum contingent liabilities for benefits under service
agreements, in the event of an involuntary redundancy, with
the managing director and persons who take part in the
management of the companies in the economic entity, amount to:
3,787
2,756
3,787
2,756
Issued by the
chief entity
Shares and options held at the end of the year
Ordinary shares (refer Directors‘ Report)
Options - SESOP
- SESOP II
2000
1999
178,900
300,000
504,660
120,000
300,000
(c) Loan to Director
In accordance with the rules of the Senior Executive Share Ownership Plan (SESOP) as adopted at the general meeting
held on 15 August 1994, Dr B A McNamee received an interest free loan (disclosed in Note 10) from the chief entity
which was used to take up an offer of options over ordinary shares in the chief entity.
During 1999-2000, Dr B A McNamee exercised the remaining 120,000 SESOP options and made loan repayments
totalling $281,653.
28 Superannuation Commitments
The economic entity has established one superannuation plan as set out below.
CSL Superannuation Plan
CSL Limited commenced contributions to the CSL Superannuation Plan in July 1990. The Plan is a combination defined
benefit and defined contribution plan. Defined benefits are provided to members based on the level of the member’s
contribution (which is voluntary), the member’s period of service and the member’s highest average salary. The defined
benefit plan was closed to new members eligible to join the CSL Superannuation Plan on or after 1 July 1996. The chief
entity makes contributions of between 8% and 15% dependent on the level of the employee contribution to the scheme.
There is no legally enforceable obligation, other than in respect of compliance with the superannuation guarantee, on the
chief entity to contribute to the superannuation plan.
The last actuarial assessment of the Plan was at 1 July 1998 and was performed by Wayne Adams, FIAA of Buck
Consultants Pty Ltd. In the actuary’s view, the position of the Plan as revealed in that review was sound. The assets of the
Plan at 1 July 1998 were sufficient to pay all benefits that would have been payable from the Plan in the event of voluntary
termination of employment of each employee at that date.
Date at which the following amounts were determined:
30 June 2000
$000
30 June 1999
$000
(unaudited)
Net market value of Plan assets
Vested benefits
56,781
54,300
48,653
47,101
The accrued benefits of the Plan have not been estimated since the actuarial review was conducted as at 1 July 1998.
At that date the net market value of Plan assets was $42.6m and accrued benefits $41.6m. The Plan at that date had a
surplus of assets against accrued benefits of $1.0m.
24
CSL Limited and Controlled Entities (ACN 051 588 348)
(d) Other Transactions of Directors and Director-Related Entities
The directors of the economic entity, or their director-related entities, have the following transactions with entities
within the economic entity that occur within a normal employee, customer or supplier relationship on terms and
conditions no more favourable than those which it is reasonable to expect the entity would have adopted if dealing
with the director or director-related entity at arm‘s length in similar circumstances:
Provision of taxation and information technology services by PricewaterhouseCoopers, a firm in which E A Alexander is
a partner, to a value of $756,844 (1999: PricewaterhouseCoopers $408,000).
Provision of legal services by Arthur Robinson & Hedderwicks, a firm in which I A Renard is a partner, to a value of
$330,020 (1999: $74,111).
C I R McDonald is a director of Rothschild Bioscience Managers Limited, the manager of the Australian Bioscience
Trust in which the chief entity invested $872,794 during the financial year (1999: $679,000).
The chief entity made contributions during the period, as detailed in Note 28, to the CSL Superannuation Plan.
Dr B A McNamee is a shareholder of the Plan’s trustee company, but not a member of the Plan.
(e) Transactions with Related Parties in the Economic Entity
The chief entity entered into the following transactions during the year with related parties in the economic entity:
• Loans were advanced and repayments received on the long term intercompany accounts;
• Interest was charged on outstanding intercompany loan account balances;
• Sales and purchases of product;
• Payment of insurance premiums to controlled entity;
• Provision of marketing services by controlled entity; and
• Management fees were received from a controlled entity.
The sales, purchases, insurance premiums and other services were undertaken on commercial terms and conditions.
Payment for intercompany transactions is through the intercompany loan accounts which are subject to extended
payment terms.
CSL Limited and Controlled Entities (ACN 051 588 348)
25
Economic Entity
2000
$000
Chief Entity
1999
$000
2000
$000
1999
$000
27 Contingent Liabilities
(a) Details and estimates of maximum amounts of contingent liabilities, classified in accordance with the party from whom
the liability could arise for which no provisions are included in the financial statements, are as follows:
29 Related Parties
(a) Directors
The following persons held the position of director of CSL Limited during all of the past two financial years unless
otherwise stated: C J Harper (retired 12 October 1999), P H Wade, D S Adam (retired 15 October 1998), E A Alexander,
Dr B A McNamee, C I R McDonald, K J Roberts, Dr A C Webster and I A Renard (appointed 19 August 1998).
Information in relation to remuneration of directors is disclosed in Note 23.
(b) Directors‘ Shareholdings
Chief entity guarantee of controlled entity borrowings
Bank guarantees
-
-
2,491
7,175
1,055
23
1,055
23
1,055
23
3,546
7,198
(b) As explained in Note 30, the chief entity has entered into a deed of cross guarantee in accordance with a class order
issued by the Australian Securities and Investments Commission. The chief entity, and the controlled entity which is
party to the deed, have guaranteed the repayment of all current and future creditors in the event that any of these
companies are wound up.
(c) The maximum contingent liabilities for benefits under service
agreements, in the event of an involuntary redundancy, with
the managing director and persons who take part in the
management of the companies in the economic entity, amount to:
3,787
2,756
3,787
2,756
Issued by the
chief entity
Shares and options held at the end of the year
Ordinary shares (refer Directors‘ Report)
Options - SESOP
- SESOP II
2000
1999
178,900
300,000
504,660
120,000
300,000
(c) Loan to Director
In accordance with the rules of the Senior Executive Share Ownership Plan (SESOP) as adopted at the general meeting
held on 15 August 1994, Dr B A McNamee received an interest free loan (disclosed in Note 10) from the chief entity
which was used to take up an offer of options over ordinary shares in the chief entity.
During 1999-2000, Dr B A McNamee exercised the remaining 120,000 SESOP options and made loan repayments
totalling $281,653.
28 Superannuation Commitments
The economic entity has established one superannuation plan as set out below.
CSL Superannuation Plan
CSL Limited commenced contributions to the CSL Superannuation Plan in July 1990. The Plan is a combination defined
benefit and defined contribution plan. Defined benefits are provided to members based on the level of the member’s
contribution (which is voluntary), the member’s period of service and the member’s highest average salary. The defined
benefit plan was closed to new members eligible to join the CSL Superannuation Plan on or after 1 July 1996. The chief
entity makes contributions of between 8% and 15% dependent on the level of the employee contribution to the scheme.
There is no legally enforceable obligation, other than in respect of compliance with the superannuation guarantee, on the
chief entity to contribute to the superannuation plan.
The last actuarial assessment of the Plan was at 1 July 1998 and was performed by Wayne Adams, FIAA of Buck
Consultants Pty Ltd. In the actuary’s view, the position of the Plan as revealed in that review was sound. The assets of the
Plan at 1 July 1998 were sufficient to pay all benefits that would have been payable from the Plan in the event of voluntary
termination of employment of each employee at that date.
Date at which the following amounts were determined:
30 June 2000
$000
30 June 1999
$000
(unaudited)
Net market value of Plan assets
Vested benefits
56,781
54,300
48,653
47,101
The accrued benefits of the Plan have not been estimated since the actuarial review was conducted as at 1 July 1998.
At that date the net market value of Plan assets was $42.6m and accrued benefits $41.6m. The Plan at that date had a
surplus of assets against accrued benefits of $1.0m.
24
CSL Limited and Controlled Entities (ACN 051 588 348)
(d) Other Transactions of Directors and Director-Related Entities
The directors of the economic entity, or their director-related entities, have the following transactions with entities
within the economic entity that occur within a normal employee, customer or supplier relationship on terms and
conditions no more favourable than those which it is reasonable to expect the entity would have adopted if dealing
with the director or director-related entity at arm‘s length in similar circumstances:
Provision of taxation and information technology services by PricewaterhouseCoopers, a firm in which E A Alexander is
a partner, to a value of $756,844 (1999: PricewaterhouseCoopers $408,000).
Provision of legal services by Arthur Robinson & Hedderwicks, a firm in which I A Renard is a partner, to a value of
$330,020 (1999: $74,111).
C I R McDonald is a director of Rothschild Bioscience Managers Limited, the manager of the Australian Bioscience
Trust in which the chief entity invested $872,794 during the financial year (1999: $679,000).
The chief entity made contributions during the period, as detailed in Note 28, to the CSL Superannuation Plan.
Dr B A McNamee is a shareholder of the Plan’s trustee company, but not a member of the Plan.
(e) Transactions with Related Parties in the Economic Entity
The chief entity entered into the following transactions during the year with related parties in the economic entity:
• Loans were advanced and repayments received on the long term intercompany accounts;
• Interest was charged on outstanding intercompany loan account balances;
• Sales and purchases of product;
• Payment of insurance premiums to controlled entity;
• Provision of marketing services by controlled entity; and
• Management fees were received from a controlled entity.
The sales, purchases, insurance premiums and other services were undertaken on commercial terms and conditions.
Payment for intercompany transactions is through the intercompany loan accounts which are subject to extended
payment terms.
CSL Limited and Controlled Entities (ACN 051 588 348)
25
29 Related Parties (continued)
(e) Transactions with Related Parties in the Economic Entity (continued)
Amounts payable to and receivable from parties in the economic entity:
Appropriate disclosure of these amounts is contained in the notes to the financial statements.
30 Controlled Entities (continued)
A deed of cross guarantee between CSL International Pty Ltd and CSL Limited was enacted on 20 June 1995 and relief was
obtained from preparing financial statements of CSL International Pty Ltd under the ASIC Class Order. Under the deed, both
entities guarantee to support the liabilities and obligations of each other.
Ownership interests:
The ownership interests in related parties in the economic entity are disclosed in Note 30.
Financial information for the class order group comprising CSL Limited and CSL International Pty Ltd is as follows:
All transactions with controlled entities have been eliminated on consolidation.
(f) Transactions with Other Related Parties
Amounts payable to and receivable from other related parties:
Appropriate disclosure of these amounts is contained in the notes to the financial statements.
(g) Ultimate Controlling Entity
The ultimate controlling entity is CSL Limited.
30 Controlled Entities
Country of Incorporation
Chief Entity:
CSL Limited
Controlled Entities of CSL Limited:
Coselco Insurance Pty Ltd
Filtron Pty Ltd
Cervax Pty Ltd
CSL (New Zealand) Limited
Iscotec AB
CSL International Pty Ltd
CSL Europe Pty Ltd
CSL (UK) Limited
JRH Biosciences Limited
CSL US Inc
JRH Biosciences Inc
Biocor Animal Health Inc
CSL Bioplasma Inc
Percentage Owned
2000
%
1999
%
100
100
74
100
100
100
100
100
100
100
100
100
100
100
100
74
100
100
100
100
100
100
100
100
100
Australia
Australia
Australia
Australia
New Zealand
Sweden
Australia
Australia
England
England
USA
USA
USA
USA
(a) Audited by affiliates of the chief entity auditors.
(b) Audited by Ernst & Young, Chartered Accountants, London.
(c) Audited by Ernst & Young LLP, Chartered Accountants, Kansas City.
(d) Coselco Insurance Pty Ltd was placed in members voluntary liquidation on 30 June 2000 (refer Note 1(m)).
(e) During the year JRH Biosciences Limited changed its name from JRH Europe Limited.
(d)
(a)
(a)
(b)
(b) (e)
(c)
(c)
(c)
(c)
Balance Sheet
2000
$000
1999
$000
Current Assets
Cash
Receivables
Investments
Inventories
Other
112
56,148
412,126
65,582
575
311
35,286
42,691
58,172
2,550
Total Current Assets
534,543
139,010
Non-Current Assets
Receivables
Investments
Property, plant and equipment
Other
44,419
46,972
284,917
8,014
38,709
40,473
282,831
9,350
Total Non-Current Assets
384,322
371,363
Total Assets
918,865
510,373
Current Liabilities
Accounts payable
Borrowings
Provisions
49,259
1,732
46,011
36,780
1,620
43,804
Total Current Liabilities
97,002
82,204
Non-Current Liabilities
Provisions
Other
31,498
9,176
7,132
9,807
Total Non-Current Liabilities
40,674
16,939
Total Liabilities
137,676
99,143
Net Assets
781,189
411,230
Equity
Share capital
Reserves
Retained profits
591,321
31,064
158,804
233,502
34,853
142,875
Total Equity
781,189
411,230
Profit and Loss Statement
The profit and loss of the closed group is identical to that of the chief entity as disclosed in the profit and loss statement in
this financial report.
26
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
27
29 Related Parties (continued)
(e) Transactions with Related Parties in the Economic Entity (continued)
Amounts payable to and receivable from parties in the economic entity:
Appropriate disclosure of these amounts is contained in the notes to the financial statements.
30 Controlled Entities (continued)
A deed of cross guarantee between CSL International Pty Ltd and CSL Limited was enacted on 20 June 1995 and relief was
obtained from preparing financial statements of CSL International Pty Ltd under the ASIC Class Order. Under the deed, both
entities guarantee to support the liabilities and obligations of each other.
Ownership interests:
The ownership interests in related parties in the economic entity are disclosed in Note 30.
Financial information for the class order group comprising CSL Limited and CSL International Pty Ltd is as follows:
All transactions with controlled entities have been eliminated on consolidation.
(f) Transactions with Other Related Parties
Amounts payable to and receivable from other related parties:
Appropriate disclosure of these amounts is contained in the notes to the financial statements.
(g) Ultimate Controlling Entity
The ultimate controlling entity is CSL Limited.
30 Controlled Entities
Country of Incorporation
Chief Entity:
CSL Limited
Controlled Entities of CSL Limited:
Coselco Insurance Pty Ltd
Filtron Pty Ltd
Cervax Pty Ltd
CSL (New Zealand) Limited
Iscotec AB
CSL International Pty Ltd
CSL Europe Pty Ltd
CSL (UK) Limited
JRH Biosciences Limited
CSL US Inc
JRH Biosciences Inc
Biocor Animal Health Inc
CSL Bioplasma Inc
Percentage Owned
2000
%
1999
%
100
100
74
100
100
100
100
100
100
100
100
100
100
100
100
74
100
100
100
100
100
100
100
100
100
Australia
Australia
Australia
Australia
New Zealand
Sweden
Australia
Australia
England
England
USA
USA
USA
USA
(a) Audited by affiliates of the chief entity auditors.
(b) Audited by Ernst & Young, Chartered Accountants, London.
(c) Audited by Ernst & Young LLP, Chartered Accountants, Kansas City.
(d) Coselco Insurance Pty Ltd was placed in members voluntary liquidation on 30 June 2000 (refer Note 1(m)).
(e) During the year JRH Biosciences Limited changed its name from JRH Europe Limited.
(d)
(a)
(a)
(b)
(b) (e)
(c)
(c)
(c)
(c)
Balance Sheet
2000
$000
1999
$000
Current Assets
Cash
Receivables
Investments
Inventories
Other
112
56,148
412,126
65,582
575
311
35,286
42,691
58,172
2,550
Total Current Assets
534,543
139,010
Non-Current Assets
Receivables
Investments
Property, plant and equipment
Other
44,419
46,972
284,917
8,014
38,709
40,473
282,831
9,350
Total Non-Current Assets
384,322
371,363
Total Assets
918,865
510,373
Current Liabilities
Accounts payable
Borrowings
Provisions
49,259
1,732
46,011
36,780
1,620
43,804
Total Current Liabilities
97,002
82,204
Non-Current Liabilities
Provisions
Other
31,498
9,176
7,132
9,807
Total Non-Current Liabilities
40,674
16,939
Total Liabilities
137,676
99,143
Net Assets
781,189
411,230
Equity
Share capital
Reserves
Retained profits
591,321
31,064
158,804
233,502
34,853
142,875
Total Equity
781,189
411,230
Profit and Loss Statement
The profit and loss of the closed group is identical to that of the chief entity as disclosed in the profit and loss statement in
this financial report.
26
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
27
Economic Entity
2000
$000
1999
$000
Chief Entity
2000
$000
1999
$000
Facilities available to the economic entity are in the form of bank overdraft, term loan and bill discount facilities.
31 Reconciliation of Cash
For the purpose of this statement of cash flows, cash includes:
(1) cash on hand and at call deposits with banks or
financial institutions, net of bank overdrafts; and
(2) investments in money market instruments
Cash at the end of the year is shown in the balance sheet as:
Cash on hand
11am cash deposits
Bank endorsed bills of exchange
Bank overdrafts
32 Reconciliation of Cash Flows from Operations
with Operating Profit after Tax
Operating profit after tax
Non-cash flows in operating profit
Depreciation and amortisation
Loss/(Profit) on sale of property, plant and equipment
Reclassification of investment income to investing activities
Changes in assets and liabilities, net of the effects of
purchase of controlled entities
(Increase)/decrease in receivables
(Increase)/decrease in inventories
(Increase)/decrease in prepayments
Increase/(decrease) in creditors
Increase/(decrease) in provisions
Increase/(decrease) in taxes payable
Cash flows from operations
33 Businesses Acquired
During the current reporting period the economic entity acquired
operating assets of Imperial Laboratories Limited an entity
incorporated in the United Kingdom.
Details of the acquisition are as follows:
Consideration
Fair value of net assets acquired
Property, plant and equipment
Inventories
Cash outflows on acquisition of operating assets
34 Credit Standby Facilities
Firmly committed long term financing facilities of $65.8m (1999: $64.2m) were available to the economic entity at the
end of the financial year. As at that date, $2.5m (1999: $7.2m) of these facilities were in use.
A loan facility of $400 million subject to certain condition precedents is available for the purpose of acquiring ZLB
as disclosed in Note 26.
The provision of finance under all facilities to the chief entity and the economic entity is subject to certain borrowing
requirements and financial ratios being met.
Economic Entity
4,501
371,902
40,224
(1,732)
2,893
7,300
35,391
(1,771)
112
371,902
40,224
(1,732)
311
7,300
35,391
(1,620)
414,895
43,813
410,506
41,382
47,382
49,003
44,254
33,684
(73)
(2,083)
33,664
(133)
(2,132)
29,611
(81)
-
29,374
(288)
-
(5,975)
(13,623)
(789)
13,731
526
(274)
(30,965)
(7,409)
1,975
873
(697)
(840)
(7,833)
(6,800)
(51)
5,987
927
(87)
54,074
72,377
41,470
65,483
603
50
653
36.1
35.4
133,369,553
131,404,281
36 Segment Information
CSL Limited operates primarily in the pharmaceutical industry and in the following geographic areas:
Australasia
$000
USA
$000
Europe
$000
Revenue from customers outside the economic entity 414,832
Intersegment revenue
7,235
84,267
106
5,161
1,803
(9,144)
504,260
-
Total Revenue
422,067
84,373
6,964
(9,144)
504,260
Segment Result
50,406
3,824
172
-
54,402
Segment Assets
859,927
84,438
2,114
-
946,479
Australasia
$000
USA
$000
Europe
$000
Revenue from customers outside the economic entity 353,041
Intersegment revenue
9,264
71,869
53
9
2,754
(12,071)
424,919
-
Total Revenue
362,305
71,922
2,763
(12,071)
424,919
Segment Result
45,923
2,224
(765)
-
47,382
Segment Assets
496,655
64,295
588
-
561,538
Geographic segments - 1999
653
40.8
40.0
Diluted earnings per share is calculated after classifying all options
on issue at the end of the financial year as potential ordinary shares.
Geographic segments - 2000
(23,155)
(16,941)
1,100
7,907
89
(856)
1999
cents
35 Earnings Per Share
Basic earnings per share
Diluted earnings per share
Weighted average number of ordinary shares outstanding during the
year used in the calculation of basic earnings per share:
54,402
2000
cents
Eliminations Consolidated
$000
$000
Eliminations Consolidated
$000
$000
The pricing on intersegment transactions is comparable to prices charged on transactions with parties outside the
economic entity.
The geographic segment Australasia comprises Australia and New Zealand.
37 Significant Purchaser
Significant volumes of the chief entity’s sales of human pharmaceutical and plasma products are to the
Australian Government.
28
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
29
Economic Entity
2000
$000
1999
$000
Chief Entity
2000
$000
1999
$000
Facilities available to the economic entity are in the form of bank overdraft, term loan and bill discount facilities.
31 Reconciliation of Cash
For the purpose of this statement of cash flows, cash includes:
(1) cash on hand and at call deposits with banks or
financial institutions, net of bank overdrafts; and
(2) investments in money market instruments
Cash at the end of the year is shown in the balance sheet as:
Cash on hand
11am cash deposits
Bank endorsed bills of exchange
Bank overdrafts
32 Reconciliation of Cash Flows from Operations
with Operating Profit after Tax
Operating profit after tax
Non-cash flows in operating profit
Depreciation and amortisation
Loss/(Profit) on sale of property, plant and equipment
Reclassification of investment income to investing activities
Changes in assets and liabilities, net of the effects of
purchase of controlled entities
(Increase)/decrease in receivables
(Increase)/decrease in inventories
(Increase)/decrease in prepayments
Increase/(decrease) in creditors
Increase/(decrease) in provisions
Increase/(decrease) in taxes payable
Cash flows from operations
33 Businesses Acquired
During the current reporting period the economic entity acquired
operating assets of Imperial Laboratories Limited an entity
incorporated in the United Kingdom.
Details of the acquisition are as follows:
Consideration
Fair value of net assets acquired
Property, plant and equipment
Inventories
Cash outflows on acquisition of operating assets
34 Credit Standby Facilities
Firmly committed long term financing facilities of $65.8m (1999: $64.2m) were available to the economic entity at the
end of the financial year. As at that date, $2.5m (1999: $7.2m) of these facilities were in use.
A loan facility of $400 million subject to certain condition precedents is available for the purpose of acquiring ZLB
as disclosed in Note 26.
The provision of finance under all facilities to the chief entity and the economic entity is subject to certain borrowing
requirements and financial ratios being met.
Economic Entity
4,501
371,902
40,224
(1,732)
2,893
7,300
35,391
(1,771)
112
371,902
40,224
(1,732)
311
7,300
35,391
(1,620)
414,895
43,813
410,506
41,382
47,382
49,003
44,254
33,684
(73)
(2,083)
33,664
(133)
(2,132)
29,611
(81)
-
29,374
(288)
-
(5,975)
(13,623)
(789)
13,731
526
(274)
(30,965)
(7,409)
1,975
873
(697)
(840)
(7,833)
(6,800)
(51)
5,987
927
(87)
54,074
72,377
41,470
65,483
603
50
653
36.1
35.4
133,369,553
131,404,281
36 Segment Information
CSL Limited operates primarily in the pharmaceutical industry and in the following geographic areas:
Australasia
$000
USA
$000
Europe
$000
Revenue from customers outside the economic entity 414,832
Intersegment revenue
7,235
84,267
106
5,161
1,803
(9,144)
504,260
-
Total Revenue
422,067
84,373
6,964
(9,144)
504,260
Segment Result
50,406
3,824
172
-
54,402
Segment Assets
859,927
84,438
2,114
-
946,479
Australasia
$000
USA
$000
Europe
$000
Revenue from customers outside the economic entity 353,041
Intersegment revenue
9,264
71,869
53
9
2,754
(12,071)
424,919
-
Total Revenue
362,305
71,922
2,763
(12,071)
424,919
Segment Result
45,923
2,224
(765)
-
47,382
Segment Assets
496,655
64,295
588
-
561,538
Geographic segments - 1999
653
40.8
40.0
Diluted earnings per share is calculated after classifying all options
on issue at the end of the financial year as potential ordinary shares.
Geographic segments - 2000
(23,155)
(16,941)
1,100
7,907
89
(856)
1999
cents
35 Earnings Per Share
Basic earnings per share
Diluted earnings per share
Weighted average number of ordinary shares outstanding during the
year used in the calculation of basic earnings per share:
54,402
2000
cents
Eliminations Consolidated
$000
$000
Eliminations Consolidated
$000
$000
The pricing on intersegment transactions is comparable to prices charged on transactions with parties outside the
economic entity.
The geographic segment Australasia comprises Australia and New Zealand.
37 Significant Purchaser
Significant volumes of the chief entity’s sales of human pharmaceutical and plasma products are to the
Australian Government.
28
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
29
38 Additional Financial Instruments Disclosure
Interest Rate Risk
The economic entity has entered into interest rate swap contracts. These contracts allow the economic entity to raise
short and long term borrowings at floating rates and effectively swap them into fixed rates. Maturities of swap contracts
are generally between 1 and 2 years. No interest rate swap contracts are in place at 30 June 2000 (1999: nil).
Interest Rate Risk Exposures
The economic entity is exposed to interest rate risk through primary financial assets and liabilities. The following table
summarises interest rate risk for the economic entity.
Floating
Non-interest
Average
Rates
Bearing
Total
Interest
June 2000
$000
$000
$000
Rate (a)
Financial Assets
Cash
Trade debtors
Other debtors
11am cash deposits
Bank endorsed bills of exchange
Loans to managing director and employees
Other loans
Investment in non controlled entities
Financial Liabilities
Trade creditors
Other creditors
Bank loans
Bank overdraft
June 1999
Financial Assets
Cash
Trade debtors
Other debtors
11am cash deposits
Bank endorsed bills of exchange
Loans to managing director and employees
Managed unit trusts
Other loans
Investment in non controlled entities
Financial Liabilities
Trade creditors
Other creditors
Bank loans
Bank overdraft
38 Additional Financial Instruments Disclosure (continued)
Foreign Exchange Risk
The economic entity enters into forward exchange contracts to buy and sell specified amounts of foreign currencies in the
future at stipulated exchange rates. The objective in entering into these contracts is to protect the economic entity against
exchange rate movements.
The accounting policy with regard to forward exchange contracts is outlined in Note 1(c).
At balance date the details, in Australian Dollars, of outstanding forward exchange contracts are:
Currency
4,501
371,902
40,224
852
-
70,010
4,042
4,936
7,178
4,501
70,010
4,042
371,902
40,224
4,936
852
7,178
417,479
86,166
503,645
2,491
1,732
33,610
23,688
-
33,610
23,688
2,491
1,732
4,223
57,298
61,521
Floating
Rates
$000
Non-interest
Bearing
$000
Total
$000
2,893
7,300
35,391
17,980
2,853
-
42,774
7,186
7,424
18,369
679
2,893
42,774
7,186
7,300
35,391
7,424
36,349
2,853
679
66,417
76,432
142,849
7,175
1,771
26,452
21,830
-
26,452
21,830
7,175
1,771
8,946
48,282
57,228
Average
Exchange Rate
2000
1999
2000
1999
Buy
$000
Sell
$000
Buy
$000
Sell
$000
4.75%
5.92%
6.06%
6.00%
7.90%
9.20%
Average
Interest
Rate (a)
US Dollars
3 months or less
3 to 12 months
0.6024
0.6008
0.6558
0.6596
-
(20,748)
(1,331)
1,412
1,319
(13,996)
-
Pounds Sterling
3 months or less
0.3963
0.4189
197
-
72
-
New Zealand Dollars
3 months or less
1.2878
-
-
(280)
-
-
Swedish Kronor
3 months or less
5.3296
5.6379
-
(89)
-
(532)
Deutschemarks
3 months or less
3 to 12 months
1.2626
1.2545
1.0690
340
85
-
441
-
Euro
3 months or less
-
0.6359
-
122
-
0.9848
0.9571
-
696,338
-
-
Swiss Francs
3 months or less
Purchase consideration for ZLB
(2,233)
-
3.50%
The sell contracts in this table relate primarily to forward contracts entered into by the chief entity to hedge foreign
currency receivables from other entities within the economic entity. These receivables are eliminated on consolidation;
however, the hedges are in place to protect the chief entity from movements in exchange rates that would give rise to a
profit and loss impact.
4.70%
4.92%
The Swiss Francs buy contract in this table relates primarily to a forward contract entered into by the chief entity to hedge
the purchase of the investment in ZLB as disclosed in Note 26.
5.16%
6.00%
5.62%
7.45%
(a) most recently determined rate applicable at balance date.
30
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
31
38 Additional Financial Instruments Disclosure
Interest Rate Risk
The economic entity has entered into interest rate swap contracts. These contracts allow the economic entity to raise
short and long term borrowings at floating rates and effectively swap them into fixed rates. Maturities of swap contracts
are generally between 1 and 2 years. No interest rate swap contracts are in place at 30 June 2000 (1999: nil).
Interest Rate Risk Exposures
The economic entity is exposed to interest rate risk through primary financial assets and liabilities. The following table
summarises interest rate risk for the economic entity.
Floating
Non-interest
Average
Rates
Bearing
Total
Interest
June 2000
$000
$000
$000
Rate (a)
Financial Assets
Cash
Trade debtors
Other debtors
11am cash deposits
Bank endorsed bills of exchange
Loans to managing director and employees
Other loans
Investment in non controlled entities
Financial Liabilities
Trade creditors
Other creditors
Bank loans
Bank overdraft
June 1999
Financial Assets
Cash
Trade debtors
Other debtors
11am cash deposits
Bank endorsed bills of exchange
Loans to managing director and employees
Managed unit trusts
Other loans
Investment in non controlled entities
Financial Liabilities
Trade creditors
Other creditors
Bank loans
Bank overdraft
38 Additional Financial Instruments Disclosure (continued)
Foreign Exchange Risk
The economic entity enters into forward exchange contracts to buy and sell specified amounts of foreign currencies in the
future at stipulated exchange rates. The objective in entering into these contracts is to protect the economic entity against
exchange rate movements.
The accounting policy with regard to forward exchange contracts is outlined in Note 1(c).
At balance date the details, in Australian Dollars, of outstanding forward exchange contracts are:
Currency
4,501
371,902
40,224
852
-
70,010
4,042
4,936
7,178
4,501
70,010
4,042
371,902
40,224
4,936
852
7,178
417,479
86,166
503,645
2,491
1,732
33,610
23,688
-
33,610
23,688
2,491
1,732
4,223
57,298
61,521
Floating
Rates
$000
Non-interest
Bearing
$000
Total
$000
2,893
7,300
35,391
17,980
2,853
-
42,774
7,186
7,424
18,369
679
2,893
42,774
7,186
7,300
35,391
7,424
36,349
2,853
679
66,417
76,432
142,849
7,175
1,771
26,452
21,830
-
26,452
21,830
7,175
1,771
8,946
48,282
57,228
Average
Exchange Rate
2000
1999
2000
1999
Buy
$000
Sell
$000
Buy
$000
Sell
$000
4.75%
5.92%
6.06%
6.00%
7.90%
9.20%
Average
Interest
Rate (a)
US Dollars
3 months or less
3 to 12 months
0.6024
0.6008
0.6558
0.6596
-
(20,748)
(1,331)
1,412
1,319
(13,996)
-
Pounds Sterling
3 months or less
0.3963
0.4189
197
-
72
-
New Zealand Dollars
3 months or less
1.2878
-
-
(280)
-
-
Swedish Kronor
3 months or less
5.3296
5.6379
-
(89)
-
(532)
Deutschemarks
3 months or less
3 to 12 months
1.2626
1.2545
1.0690
340
85
-
441
-
Euro
3 months or less
-
0.6359
-
122
-
0.9848
0.9571
-
696,338
-
-
Swiss Francs
3 months or less
Purchase consideration for ZLB
(2,233)
-
3.50%
The sell contracts in this table relate primarily to forward contracts entered into by the chief entity to hedge foreign
currency receivables from other entities within the economic entity. These receivables are eliminated on consolidation;
however, the hedges are in place to protect the chief entity from movements in exchange rates that would give rise to a
profit and loss impact.
4.70%
4.92%
The Swiss Francs buy contract in this table relates primarily to a forward contract entered into by the chief entity to hedge
the purchase of the investment in ZLB as disclosed in Note 26.
5.16%
6.00%
5.62%
7.45%
(a) most recently determined rate applicable at balance date.
30
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
31
38 Additional Financial Instruments Disclosure (continued)
The following table, expressed in Australian Dollars, summaries the foreign exchange risk carried by the economic entity
as a result of the existence of foreign currency denominated financial assets and liabilities. Financial assets and liabilities
where all amounts are denominated in Australian Dollars are excluded from the table.
June 2000
Financial Assets
Cash
Trade debtors
Other debtors
Other loans
Financial Liabilities
Trade creditors
Other creditors
Bank loans
Other loans
Aust $
$000
US $
$000
Other
$000
Total
$000
1,146
56,142
2,012
852
1,723
11,629
1,806
-
1,632
2,239
224
-
4,501
70,010
4,042
852
60,152
15,158
4,095
79,405
25,369
12,527
1,732
7,418
10,799
2,491
-
823
362
-
33,610
23,688
2,491
1,732
39,628
20,708
1,185
61,521
38 Additional Financial Instruments Disclosure (continued)
Credit Risk
The maximum exposure to credit risk at balance date to recognised financial assets is the carrying amount, net of any
provision for doubtful debts, as disclosed in the balance sheet and notes to the financial statements.
2000
$000
1999
$000
483,540
14,556
5,549
123,677
13,163
6,009
503,645
142,849
Customer/Industry Classification
%
%
State and Federal Government
Financial Institutions
Other
5
83
12
12
57
31
Location of Credit risk
Australia
USA
Other
Derivatives
The economic entity incurs credit risk on forward exchange contracts entered into with major Australian banks.
At balance date the economic entity's credit exposure in respect of such contracts is $721.6m (1999: $17.9m).
Net Fair Values of Financial Assets and Liabilities
The approach to determining the fair value of financial instruments is disclosed in Note 1 (n).
The fair value of financial instruments is equal to the carrying value as disclosed in this note.
June 1999
Aust $
$000
US $
$000
Other
$000
Total
$000
Financial Assets
Cash
Trade debtors
Other debtors
Other loans
1,776
27,767
6,551
2,853
559
13,276
452
-
558
1,731
183
-
2,893
42,774
7,186
2,853
38,947
14,287
2,472
55,706
21,737
15,011
1,620
3,839
6,541
7,175
151
876
278
-
26,452
21,830
7,175
1,771
38,368
17,706
1,154
57,228
Financial Liabilities
Trade creditors
Other creditors
Bank loans
Other loans
32
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
33
38 Additional Financial Instruments Disclosure (continued)
The following table, expressed in Australian Dollars, summaries the foreign exchange risk carried by the economic entity
as a result of the existence of foreign currency denominated financial assets and liabilities. Financial assets and liabilities
where all amounts are denominated in Australian Dollars are excluded from the table.
June 2000
Financial Assets
Cash
Trade debtors
Other debtors
Other loans
Financial Liabilities
Trade creditors
Other creditors
Bank loans
Other loans
Aust $
$000
US $
$000
Other
$000
Total
$000
1,146
56,142
2,012
852
1,723
11,629
1,806
-
1,632
2,239
224
-
4,501
70,010
4,042
852
60,152
15,158
4,095
79,405
25,369
12,527
1,732
7,418
10,799
2,491
-
823
362
-
33,610
23,688
2,491
1,732
39,628
20,708
1,185
61,521
38 Additional Financial Instruments Disclosure (continued)
Credit Risk
The maximum exposure to credit risk at balance date to recognised financial assets is the carrying amount, net of any
provision for doubtful debts, as disclosed in the balance sheet and notes to the financial statements.
2000
$000
1999
$000
483,540
14,556
5,549
123,677
13,163
6,009
503,645
142,849
Customer/Industry Classification
%
%
State and Federal Government
Financial Institutions
Other
5
83
12
12
57
31
Location of Credit risk
Australia
USA
Other
Derivatives
The economic entity incurs credit risk on forward exchange contracts entered into with major Australian banks.
At balance date the economic entity's credit exposure in respect of such contracts is $721.6m (1999: $17.9m).
Net Fair Values of Financial Assets and Liabilities
The approach to determining the fair value of financial instruments is disclosed in Note 1 (n).
The fair value of financial instruments is equal to the carrying value as disclosed in this note.
June 1999
Aust $
$000
US $
$000
Other
$000
Total
$000
Financial Assets
Cash
Trade debtors
Other debtors
Other loans
1,776
27,767
6,551
2,853
559
13,276
452
-
558
1,731
183
-
2,893
42,774
7,186
2,853
38,947
14,287
2,472
55,706
21,737
15,011
1,620
3,839
6,541
7,175
151
876
278
-
26,452
21,830
7,175
1,771
38,368
17,706
1,154
57,228
Financial Liabilities
Trade creditors
Other creditors
Bank loans
Other loans
32
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
33
Directors’ Declaration
Independent Audit Report
To the Members of CSL Limited:
The directors’ declare that:
(a) the financial statements and associated notes comply with the accounting standards
and Urgent Issues Group Consensus Views;
(b) the financial statements and notes give a true and fair view of the financial position
as at 30 June 2000 and performance of the company and economic entity for the
year then ended;
(c) in the directors’ opinion;
(i) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and
payable, and that the company and chief entity, who are party to the deed described in Note 30, will together be able to
meet any obligations or liabilities to which they are, or may become subject by virtue of the deed of cross guarantee
dated 20 June 1995; and
(ii) the financial statements and notes are in accordance with the Corporations Law, including sections 296 and 297.
Made in accordance with a resolution of the directors.
Scope
We have audited the financial report of CSL Limited for the financial year ended 30 June 2000 as set out on pages 6 to 34. The
financial report includes the consolidated financial statements of the consolidated entity comprising the company and the entities it
controlled at the year's end or from time to time during the financial year. The company's directors are responsible for the financial
report. We have conducted an independent audit of the financial report in order to express an opinion on it to the members of the
company.
Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the financial
report is free of material misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and
other disclosures in the financial report, and the evaluation of accounting policies and significant accounting estimates. These
procedures have been undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in
accordance with Accounting Standards, other mandatory professional reporting requirements and statutory requirements, in Australia,
so as to present a view which is consistent with our understanding of the company's and the consolidated entity's financial position,
and performance as represented by the results of their operations and their cash flows.
The audit opinion expressed in this report has been formed on the above basis.
Audit Opinion
In our opinion, the financial report of CSL Limited is in accordance with:
(a) the Corporations Law, including:
Peter H Wade
Chairman
Brian A McNamee
Managing Director
(i) giving a true and fair view of the company’s and consolidated entity’s financial position as at 30 June 2000 and of their
performance for the year ended on that date; and
(ii) complying with Accounting Standards and the Corporations Regulations; and
Melbourne
(b) other mandatory professional reporting requirements.
Dated this fifteenth day of August 2000
Chartered Accountants
Partner
Melbourne
15 August 2000
34
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
35
Directors’ Declaration
Independent Audit Report
To the Members of CSL Limited:
The directors’ declare that:
(a) the financial statements and associated notes comply with the accounting standards
and Urgent Issues Group Consensus Views;
(b) the financial statements and notes give a true and fair view of the financial position
as at 30 June 2000 and performance of the company and economic entity for the
year then ended;
(c) in the directors’ opinion;
(i) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and
payable, and that the company and chief entity, who are party to the deed described in Note 30, will together be able to
meet any obligations or liabilities to which they are, or may become subject by virtue of the deed of cross guarantee
dated 20 June 1995; and
(ii) the financial statements and notes are in accordance with the Corporations Law, including sections 296 and 297.
Made in accordance with a resolution of the directors.
Scope
We have audited the financial report of CSL Limited for the financial year ended 30 June 2000 as set out on pages 6 to 34. The
financial report includes the consolidated financial statements of the consolidated entity comprising the company and the entities it
controlled at the year's end or from time to time during the financial year. The company's directors are responsible for the financial
report. We have conducted an independent audit of the financial report in order to express an opinion on it to the members of the
company.
Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the financial
report is free of material misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and
other disclosures in the financial report, and the evaluation of accounting policies and significant accounting estimates. These
procedures have been undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in
accordance with Accounting Standards, other mandatory professional reporting requirements and statutory requirements, in Australia,
so as to present a view which is consistent with our understanding of the company's and the consolidated entity's financial position,
and performance as represented by the results of their operations and their cash flows.
The audit opinion expressed in this report has been formed on the above basis.
Audit Opinion
In our opinion, the financial report of CSL Limited is in accordance with:
(a) the Corporations Law, including:
Peter H Wade
Chairman
Brian A McNamee
Managing Director
(i) giving a true and fair view of the company’s and consolidated entity’s financial position as at 30 June 2000 and of their
performance for the year ended on that date; and
(ii) complying with Accounting Standards and the Corporations Regulations; and
Melbourne
(b) other mandatory professional reporting requirements.
Dated this fifteenth day of August 2000
Chartered Accountants
Partner
Melbourne
15 August 2000
34
CSL Limited and Controlled Entities (ACN 051 588 348)
CSL Limited and Controlled Entities (ACN 051 588 348)
35
Financial Highlights
CSL Business Offices
Financial Highlights Year ended 30 June
1999-2000
1998-1999
% change
Total revenue
504.3
424.9
18.7
Sales revenue
450.6
413.5
9.0
Research and development
43.6
40.8
6.9
Operating profit before interest and income tax
77.2
68.7
12.4
Operating profit after tax
54.4
47.4
14.8
Capital investment
37.2
39.0
(4.6)
Total assets at 30 June
946.5
561.5
68.6
Shareholders’ funds at 30 June
793.6
414.9
91.3
Net tangible assets per share at 30 June ($)
5.32
3.15
68.9
Weighted average number of shares (million)
133.4
131.4
1.5
Earnings per share (cents)
40.8
36.1
13.0
Dividend per share (cents)
23.0
21.0
9.5
All figures in $A million unless otherwise stated.
36
CSL (New Zealand) Limited
Pharmaceutical Group
Bioplasma Division
Biosciences Group
Level 4, Building 10
666 Great South Road
Central Park, Penrose
Auckland 6
New Zealand
Telephone: +64 9 579 8105
Facsimile: +64 9 579 8106
Victoria and Tasmania
45 Poplar Road
Parkville
Victoria 3052
Telephone:
- Pharmaceutical: + 61 3 9389 1408
- Animal Health: + 61 3 9389 1251
- Biosciences:
+ 61 3 9389 1644
Facsimile:
+ 61 3 9389 1727
New South Wales
25-27 Paul Street North
North Ryde
New South Wales 2113
Telephone: (02) 9887 4433
Facsimile: (02) 9887 3171
1998-99
1997-98
1996-97
1995-96
Total revenue
504.3
424.9
366.7
318.1
290.6
Sales revenue
450.6
413.5
353.5
305.0
281.1
Research and development
43.6
40.8
39.1
36.6
30.2
Operating profit before interest and income tax
77.2
68.7
58.5
48.1
41.6
Operating profit after tax before abnormal item
54.4
47.4
40.9
35.2
29.0
-
-
3.9
-
-
Profit after tax and abnormals
54.4
47.4
44.8
35.2
29.0
Capital investment
37.2
39.0
21.3
16.6
16.2
Total assets at 30 June
946.5
561.5
523.8
511.1
474.7
Shareholders’ funds at 30 June
793.6
414.9
390.3
363.0
341.6
Net tangible assets per share at 30 June ($)
5.32
3.15
2.97
2.79
2.62
Weighted average number of shares (million)
133.4
131.4
131.1
130.0
130.0
Earnings per share (cents)
40.8
36.1
34.2
27.0
22.3
Dividend per share (cents)
23.0
21.0
18.0
15.5
13.0
CSL Limited and Controlled Entities (ACN 051 588 348)
Registered Head Office
45 Poplar Road
Parkville
Victoria 3052 Australia
Telephone: + 61 3 9389 1911
Facsimile: + 61 3 9389 1434
State Sales Offices
1999-2000
Abnormal income tax credit
International Offices
Bioplasma Division
189 Camp Road
Broadmeadows
Victoria 3047
Telephone: + 61 3 9246 5200
Facsimile: + 61 3 9246 5299
Five Year Summary
All figures are in $A million unless otherwise stated.
CSL Limited
Queensland
14 Dividend Street
Mansfield
Queensland 4122
Telephone: (07) 3849 6140
Facsimile: (07) 3849 6141
South Australia and Northern Territory
11 Coongie Avenue
Edwardstown
South Australia 5039
Telephone: (08) 8276 3200
Facsimile: (08) 8277 0556
CSL (New Zealand) Limited
Animal Health Group
2-6 Shakespeare Avenue
Upper Hutt
New Zealand
Telephone: +64 4 527 9088
Facsimile: +64 4 527 9332
CSL UK Limited
JRH Biosciences Limited
Smeaton Road
West Portway
Andover
Hampshire SP10 3LF
England
Telephone: +44 1628 333 311
Facsimile: +44 1628 332 412
JRH Biosciences Inc
13804 W. 107th Street
Lenexa
Kansas 66215 USA
Telephone: +1 913 469 5580
US Toll Free: +1 800 255 6032
Facsimile: +1 913 469 5584
Biocor Animal Health Inc
2720 North 84th Street
Omaha
Nebraska 68134 USA
Telephone: +1 402 393 7440
Facsimile: +1 402 393 4712
Western Australia
293-297 Fitzgerald Street
Perth
Western Australia 6000
Telephone: (08) 9328 7322
Facsimile: (08) 9227 6196
CSL Limited and Controlled Entities (ACN 051 588 348)
37
Financial Highlights
CSL Business Offices
Financial Highlights Year ended 30 June
1999-2000
1998-1999
% change
Total revenue
504.3
424.9
18.7
Sales revenue
450.6
413.5
9.0
Research and development
43.6
40.8
6.9
Operating profit before interest and income tax
77.2
68.7
12.4
Operating profit after tax
54.4
47.4
14.8
Capital investment
37.2
39.0
(4.6)
Total assets at 30 June
946.5
561.5
68.6
Shareholders’ funds at 30 June
793.6
414.9
91.3
Net tangible assets per share at 30 June ($)
5.32
3.15
68.9
Weighted average number of shares (million)
133.4
131.4
1.5
Earnings per share (cents)
40.8
36.1
13.0
Dividend per share (cents)
23.0
21.0
9.5
All figures in $A million unless otherwise stated.
36
CSL (New Zealand) Limited
Pharmaceutical Group
Bioplasma Division
Biosciences Group
Level 4, Building 10
666 Great South Road
Central Park, Penrose
Auckland 6
New Zealand
Telephone: +64 9 579 8105
Facsimile: +64 9 579 8106
Victoria and Tasmania
45 Poplar Road
Parkville
Victoria 3052
Telephone:
- Pharmaceutical: + 61 3 9389 1408
- Animal Health: + 61 3 9389 1251
- Biosciences:
+ 61 3 9389 1644
Facsimile:
+ 61 3 9389 1727
New South Wales
25-27 Paul Street North
North Ryde
New South Wales 2113
Telephone: (02) 9887 4433
Facsimile: (02) 9887 3171
1998-99
1997-98
1996-97
1995-96
Total revenue
504.3
424.9
366.7
318.1
290.6
Sales revenue
450.6
413.5
353.5
305.0
281.1
Research and development
43.6
40.8
39.1
36.6
30.2
Operating profit before interest and income tax
77.2
68.7
58.5
48.1
41.6
Operating profit after tax before abnormal item
54.4
47.4
40.9
35.2
29.0
-
-
3.9
-
-
Profit after tax and abnormals
54.4
47.4
44.8
35.2
29.0
Capital investment
37.2
39.0
21.3
16.6
16.2
Total assets at 30 June
946.5
561.5
523.8
511.1
474.7
Shareholders’ funds at 30 June
793.6
414.9
390.3
363.0
341.6
Net tangible assets per share at 30 June ($)
5.32
3.15
2.97
2.79
2.62
Weighted average number of shares (million)
133.4
131.4
131.1
130.0
130.0
Earnings per share (cents)
40.8
36.1
34.2
27.0
22.3
Dividend per share (cents)
23.0
21.0
18.0
15.5
13.0
CSL Limited and Controlled Entities (ACN 051 588 348)
Registered Head Office
45 Poplar Road
Parkville
Victoria 3052 Australia
Telephone: + 61 3 9389 1911
Facsimile: + 61 3 9389 1434
State Sales Offices
1999-2000
Abnormal income tax credit
International Offices
Bioplasma Division
189 Camp Road
Broadmeadows
Victoria 3047
Telephone: + 61 3 9246 5200
Facsimile: + 61 3 9246 5299
Five Year Summary
All figures are in $A million unless otherwise stated.
CSL Limited
Queensland
14 Dividend Street
Mansfield
Queensland 4122
Telephone: (07) 3849 6140
Facsimile: (07) 3849 6141
South Australia and Northern Territory
11 Coongie Avenue
Edwardstown
South Australia 5039
Telephone: (08) 8276 3200
Facsimile: (08) 8277 0556
CSL (New Zealand) Limited
Animal Health Group
2-6 Shakespeare Avenue
Upper Hutt
New Zealand
Telephone: +64 4 527 9088
Facsimile: +64 4 527 9332
CSL UK Limited
JRH Biosciences Limited
Smeaton Road
West Portway
Andover
Hampshire SP10 3LF
England
Telephone: +44 1628 333 311
Facsimile: +44 1628 332 412
JRH Biosciences Inc
13804 W. 107th Street
Lenexa
Kansas 66215 USA
Telephone: +1 913 469 5580
US Toll Free: +1 800 255 6032
Facsimile: +1 913 469 5584
Biocor Animal Health Inc
2720 North 84th Street
Omaha
Nebraska 68134 USA
Telephone: +1 402 393 7440
Facsimile: +1 402 393 4712
Western Australia
293-297 Fitzgerald Street
Perth
Western Australia 6000
Telephone: (08) 9328 7322
Facsimile: (08) 9227 6196
CSL Limited and Controlled Entities (ACN 051 588 348)
37
About CSL
The CSL Group develops, manufactures and markets
biologically-based health care products that benefit
the community.
Our products include human and veterinary pharmaceuticals
(notably vaccines), products derived from human plasma,
diagnostics, and cell culture reagents.
We continue to build CSL in ways that benefit our
shareholders by:
• Meeting customers’ expectations with quality products
and excellent service;
• Investing in development of new products - and introducing
those products into domestic and international markets;
• Pursuing national and international collaborations that build
on our scientific, manufacturing and marketing expertise;
• Developing a flexible, committed and skilled workforce
rewarded for excellence and innovation;
• Ensuring our workplaces are healthy for employees and
the community;
• Striving for continuous improvement in all areas of our business.
CSL is firmly committed to research and development, quality
assurance and the development of international product and
marketing alliances.
In Australia, we are a leading investor in pharmaceutical
research and development, and one of the largest employers
in the pharmaceutical manufacturing industry.
Our earnings are supported by established brands with strong
market shares. We continue to achieve improvements in
profitability as the Company expands its business nationally
and internationally through products developed both by CSL
and in collaboration with partners.
Internet http://www.csl.com.au