`
`DEAR SHAREHOLDER
`
`I am pleased to report an exceptionally strong performance for our half year result.
`
`For the six months ended 31 December 2016, CSL
`reported (when compared to the prior comparable
`period):
`
`0 Sales of US$36 billion, up 18% at constant cunency
`(CC)';
`
`0 A net profit after tax (NPAD of US$806 million, q)
`36% on an underlying’ basis at CC;
`
`0 Reported earnings per share of US$1.77, up 39% on
`an underlying basis at CC; and
`
`0 An interim dividend increaSed to US$064 per share
`(approximately A3083 per share).
`
`Our exceptionally strong performance is a result of
`the focused execution of our strategy. Investments in
`commercial expansion and skills, research and development
`(R&D) delivery, as well as a consistent and relentless focus
`to be the most efficrent leader in our industry has paid off
`for our shareholders. As a result. we possess the capabilities
`to respond to the changing dynamics of market cmditions
`Most importantly, CSL is well positioned to sustainably
`deliver on its promise of provrding life-savmg innovations to
`patients around the world.
`
`We continued our strategic expansion of plasma collection
`facrlities, now surpassing 160 centres in the US and Europe
`First half sales highlights included 34% growth of our liquid
`intravenous immunoglobulin PRlVlGEN'. Speoalty Products
`were up 25%, and albumin sales increased 19%. Sales
`did benefit from some atypical market activity, including
`competitor supply constraints. By executing on our strategy,
`we were well prepared to participate and provide life-savrng
`medicines in times of shortages.
`
`Seqinis, our influenza and vaccines business, has made
`steady progress, including securing multiple new product
`licences and executing a number of initiatives designed to
`position Seqirus for profitability and growth.
`
`C SL’s R&D pipeline IS well balanced across new product
`development, fifecycle management and market
`development activities We are committed to delivean
`on our promise to patients with innovative products to
`address unmet medical needs. In the first half of 20162017
`the US Food and Drug Administration accepted for review
`the Biologics License Application for CSL830. also known
`as Haegarda. We anticipate approval for this product in
`the latter half of 2017. This is an exciting development for
`CSL as it will be the first subcutaneous (under the skin)
`prophylactic product available on the market to prevent
`hereditary angioedema attadcs (typically swelling of the
`face and abdomen)
`
`For CSL's businas outlook, we expect solid ongoing
`demand for CSL Behring biotherapies, particularly
`immunoglobulins. specralty products and albumin. The
`atypical market conditions arising from competitor supply
`constraints in the first half are expected to normdise in
`the second half. The haemophilia market continues to be
`competitive as new products enter the market, but CSL is
`well positioned with the remnt launches of its differentiated
`innovative recombinant coagulation factor products
`IDELVION° (rFlX) and AFSTYLA' (rFVlll).
`
`-
`in2015, burrhr'scban'tstopherfmmleadnganacfivelifestyfe
`
`Page 1 of 2
`
`CSL EXHIBIT 1075
`
`CSL V. Shire
`
`CSL EXHIBIT 1075
`CSL v. Shire
`
`Page 1 of 2
`
`

`

`
`
`CSL LIMITED
`
`HALF YEAR UPDATE
`
`' 2016—2017
`
`Over the last 100 years CSL has shown how great Australian
`companies can and do succeed on the global stage.
`However, with 26% of votes cast not supporting the 2016
`AGM remuneration report resolution, we recognise that
`we need to explain more fully to you the challenges of
`sourcing, rewarding and securing the senior talent we
`need to compete and grow on a global scale, This year,
`as we continue to evaluate our executive remuneration
`
`structure, we adumledge the need to Simplify and bette:
`explain to you, our shareholders, our strategy and rationale
`for our senior executive pay design. We understand that
`the annual CSL Remuneration Report is a wry significant
`communication channel between us and comrnrt to do
`
`(St. has never been better positioned for sustainable
`growth. As a global biotechnology leader, we are driven by
`our promise to develop innovative media'nes and reliably
`supply them to patients in more than 60 countries. Our
`success hinges on the unmatdied expertise and deep
`commitment of our diverse employees, over 17,000 of them
`located in more than 30 natior‘s.
`
`You can find more information on our half year performance
`on our website www.csl.com.au.
`
`On behalf of the Board, I thank you for your ongoing
`support.
`
`all we can to ensure it is a transparent and informative
`document that dearty demonstrates the link between CSL‘s /
`strategy and executive remuneration.
`
`Professor John Shire A0.
`Chairman -\t t
`.'
`t"
`
`GROUP RESULTS
`
`Dec
`Dec
`Dec
`Dec W
`Half year ended December
`2015
`2015
`2016
`2016
`Cling.
`
`US$ Millions
`REPOR1ED
`momma mo
`Ar (0
`%
`
`Sales
`Other Revenue! Income
`
`total Revenue Im
`
`Earnings before wruwmammum
`Depreciation/Armrusanon
`Earnings before West and 1a:
`Gain an Acquisition
`
`Net Interest Expense
`
`3,031
`105
`
`3,136
`
`848
`(102)
`746
`l 76
`
`(2 7)
`
`3.031
`105
`
`3.136
`
`917
`(102)
`815
`-
`
`(27)
`
`3.553
`123
`
`3.677
`
`1.226
`(131)
`1.095
`'
`
`(33)
`
`1563
`127
`
`3.6”
`
`1.254
`(133)
`1.121
`
`(39)
`
`17.6%
`
`17.7%
`
`36.8%
`
`37.6%
`
`
`
`(251)
`806
`
`:06
`
`(155)
`821
`
`36.2%
`
`627
`
`36.2%
`
`Tax Expense
`Net Profit after tax
`NVS-IV oneoff (gain)lcosts-a
`
`(176)
`719
`(1 12)
`
`(181)
`607
`
`Underlying Net Profit after Ia:
`
`i 607
`
`607 7
`
`Interim Dividend (USS)
`EPS (053)
`
`0.58
`1.55
`
`0.58
`1.31
`
`0.64
`177
`
`1.81
`
`10.3%
`38.6%
`
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`Page 2 of2
`
`Page 2 of 2
`
`