Stock Review: CSL increases on rising relative strength


Dateline: Wednesday November 13, 2019
CSL Limited (ASX:CSL), Australia's largest Pharmaceuticals & biotechnology company by market cap, has increased 40.0c (0.1%) from its previous trading session to close at $A266.91. Compared with the All Ordinaries Index which fell 51.5 points (0.8%) in the day, the relative price increase was 0.9%. The volume was 0.9 times the average daily trading volume of 757,493 shares. In the Australian market, CSL's stock's relative price strength percentile is rising at 80 for 6 months, 82 for 3 months, and 83 for 30 days. A price rise combined with a rising relative strength is a bullish signal. There were 655,777 shares worth $A175 million traded today.

CSL DIVIDENDS
The company paid a dividend of $A1.48 per share; the ex-dividend date was September 10.

Stock Summary
CurrencyAustralian Dollar (AUD)
1 AUD = 0.69 USD
Last$A266.91
Shares Outstanding453,868,398
SectorPharmaceuticals & Biotechnology
Market Cap$A121.1 billion ($US83 billion)
52-Week Range($A)170.89 - 270.98
Ave Daily Volume757,493


INDEX

SECTION 1 THE PAST WEEK

SECTION 2 DOWNLOAD CSL FINANCIALS PAST 10 YEARS

SECTION 3 TODAY'S BULLISH SIGNALS

SECTION 4 TODAY'S BEARISH SIGNALS

SECTION 5 ONGOING BULLISH PARAMETERS

SECTION 6 ONGOING BEARISH PARAMETERS

SECTION 7 PRICE VOLUME DYNAMICS (PAST QUARTER)

SECTION 8 PERIOD-BASED SHAREHOLDER RETURNS

SECTION 9 PEER GROUP ANALYSIS & RANKING

SECTION 10 STOCK NEWS

SECTION 11 FINANCIALS

SECTION 12 CSL BOARD OF DIRECTORS

SECTION 13 PATENTS

SECTION 14 CORPORATE PROFILE

SECTION 15 GLOSSARY

SECTION 1 THE PAST WEEK

Snapshot: CSL stock was up $US8.41 or 3.3% in the past week. Volume in the week was 0.9 times average trading of 3.8 million shares. It outperformed the All Ordinaries index in 3 out of 5 days.
DayCSLClose price [AUD]Price change %Relative change %Comment
TuesdayLoses $A1.8 billion in MCap, steepest heavyweight fall in All Ordinaries Index266.51-1.5-1.2Steepest Fall
MondayAdds $A4.2 billion in MCap, top heavyweight rise in All Ordinaries Index270.563.52.9Top Rise
FridayIncreases strengthening above moving average price261.340.010.2Price rise on rising relative strength
ThursdayAdds $A1.3 billion in MCap, top heavyweight rise in Pharmaceuticals & biotechnology sector261.311.10.1Price rise on beating relative strength
WednesdayHits year-high 11th time in one month258.5-0.9-0.3Price rise on rising relative strength


SECTION 2 DOWNLOAD CSL FINANCIALS PAST 10 YEARS

Description (June 30)2019201820172016201520142013201220112010
Income Statement          
Sales (B)8.57.96.96.35.65.55.14.84.63.9
Other Revenue (M)333.2327.4 176.1169.4189.5179.1197.2  
EBITDA (B)2.32.31.71.61.81.71.51.31.31.2
EBIT (B)2.32.31.71.61.81.71.51.31.31.2
Interest (M)   71.659.653 40.515.615.5
Profit before tax (B)2.32.31.71.61.71.61.51.31.31.2
Tax (M)(422.4)(552.3)(352.4)313.5335297.3249.9246.1276.5278.3
Net profit 1.8 B1.7 B1.5 B1.2 B1.4 B1.3 B1.2 B1 B1 B897.4 M
EPS 4.243.822.942.692.912.692.421.971.871.58
Balance Sheet          
Equity Share Capital (B)5.34.13.22.62.73.233.5  
Retained Earnings 9.6 B8.5 B7.4 B6.6 B6 B5.2 B4.4 B96.3 M4.1 B2.8 B
Total Debt 4.7 B4.4 B4 B3.1 B2.3 B1.9 B 1.3 B447 M371.8 M
Total Assets (B)12.310.89.17.66.46.365.95.44.9
Current Asset (B)5.554.63.83.33.23.33.432.8
Fixed Asset (B)4.53.62.92.41.81.81.61.41.31
Working Capital (B)3.43.132.42.42.42.42.522.2
Cash Flow          
Operating Cash Flow 1.6 B1.9 B1.2 B 1.4 B1.4 B1.3 B1.2 B1.1 B995.9 M
Investing Cash Flow (1.3 B)(1.5 B)(862.9 M)(810.1 M)(413.3 M)(401.5 M)(449.5 M)(322.2 M)(225.1 M)(249.7 M)
Financing Cash Flow (491.5 M)(371.5 M)(103.4 M)(362.4 M)(828.1 M)(1.1 B)(1.2 B)(194.7 M)(1.4 B)(2 B)
Net Cash Flow (134.4 M)(3.5 M)280.3 M 122.2 M(177.9 M)(356.3 M)688.9 M(515.6 M)(1.3 B)

SECTION 3 TODAY'S BULLISH SIGNALS

3.1 Short Selling
+ The current short volume is 0.3 times its own historical average of 0.03%. It dropped 3.3% from the previous day, plummeted 53.4% from a week ago and plummeted 49.1% from a month ago, a significant bullish indicator.

3.2 Uptrend
Price/Moving Average Price and MACD:
- The Price/MAP of 1.23 for CSL is higher than the Price/MAP for the All Ordinaries Index of 1.16.
- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 261.53 minus the 26-day EMA of 255.38 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.
- The Price/MAP 200 of 1.23 for CSL is higher than the Price/MAP 200 for the All Ordinaries Index of 1.16.
- The price to 50-day EMAP ratio is 1.1, a bullish indicator. The 50-day EMAP has increased to $A247.85. An increase is another bullish indicator.
- The price to 200-day MAP ratio is 1.23, a bullish indicator. The stock is trading above both its MAPs and the 50-day MAP of $A245.32 is higher than the 200-day MAP of $A216.35, a bullish indicator. The 200-day MAP has increased to $A216.35. An increase is another bullish indicator.

Past Week:
- In the past week, volume was 0.9 times average and the shares were up 3.3%. Wednesday's close price is at a 0.5% premium to its 5-day Volume Weighted Average Price (VWAP) of $A265.55.

Past Month:
- The present value of $A1,000 (PV1000) invested one month ago in CSL is $A1,095, for a capital gain of $A95.
PV$10001-week1-month1-year
CSL.ASX1,0331,0951,453
All Ordinaries Index1,0081,0041,149


Past Quarter:
- Rises to Falls: In the last three months the number of rises outnumbered falls 38:28 or 1.4:1.
In the last three months the stock has hit a new 52-week high eighteen times, pointing to a significant uptrend.
Rising Relative Strength:
- The stock has a 6-month relative strength of 80 in the Australian market which means it is beating 80% of the market.
- A price rise combined with a high relative strength is a bullish signal.
- Also, the relative strength percentile is rising at 80 for 6 months, 82 for 3 months and 83 for 1 month.

3.3 High Price Performance Indicators and rank of CSL in the Australian market:
DescriptionCSL ValueRank In Market
MCap$A121.1 billionIn Top 1%
Today's Trading Turnover$A175 millionIn Top 1%
Price/MAP2001.23In Top Quartile
Price/MAP501.09In Top Quartile
Volatility %1.7In Top Quartile


3.4 Other Bullish Signals
- Return on Equity of 36.5% versus sector average of 17.2% and market average of 11.1%.
- Total Liabilities/EBITDA of 3 is less than 5, this compares favourably with the Joseph Piotroski benchmark of 5.
- Return on Assets of 15.6% versus sector average of 8.2% and market average of 2.1%.
- Return on Capital Employed of 23.1% versus sector average of 13.5% and market average of 6.9%.
- Net profit margin has averaged 21.8% in the last 3 years. This is considered superior and suggests a high margin of safety.
- As per the Du Pont analysis, Return on Equity is high at 36.5%. This is computed as net profit margin of 23.4% times asset turnover [sales/assets] of 0.69 times leverage factor [total assets/shareholders' equity] of 2.3.
- Market Capitalization has increased by $A83.1 billion from $A38.1 billion to $A121.1 billion in the last 5 years. This increase comprises cumulative retained earnings (RETE) of $A6.4 billion and Created Market Value of $A76.7 billion. The Created Market Value multiple, defined by the change in MCap for every $A1 of retained earnings is exemplary at $A12.97.

SECTION 4 TODAY'S BEARISH SIGNALS

4.1 Downtrend
Today's Volatility:
The 1.5% discount to 12-month high of $A270.98 against the 56.2% premium to 12-month low of $A170.89 suggests the climb might be peaking.

4.2 Overvaluation
Dividend Yield
- The relative yield of the stock, defined by its yield of 1%, divided by average yield of dividend yielding stocks in the All Ordinaries Index of 4.9% is 20.4%. This suggests the stock is overvalued in dividend yield terms.
MCap/Total Assets
- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 6.7. Compared with the rest of the market the stock is overvalued and ranks in the bottom 9% of stocks by value of Q Ratio.

4.3 Overbought/Bearish Signals:
- The Relative Strength Index (RSI) of 73.0 has penetrated the overbought line of 70, suggesting the price gain of 3.9% in the last 14 days is unusually high.
- The Stochastic indicator of 89.7 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

SECTION 5 ONGOING BULLISH PARAMETERS


5.1 Past 5 years Annual EPS growth:
Annual ReportEPS ($US)Growth %
20194.2410.8
20183.8230.0
20172.949.3
20162.69-7.7
20152.918.3

Average Annual Compounded rate of growth in EPS for the 5 years was 9.5%. There have been four rises and one decline in the past 5 years.

5.2 Earnings yield > Bond Yield
(All figures in %)
Earnings Yield2.3
Dividend Yield1.0
Bond Yield1.28


- Earnings yield of 2.3% is 1.8 times the 10-year bond yield of 1.28%.

5.3 Dividend yield > 2/3rd Bond yield
(All figures in %)
Dividend Yield1.0
Bond Yield1.28
Spread0.28

The dividend yield of 1.0% is 0.78 times the triple-A bond yield of 1.28%; it is also above the benchmark of 2/3rd set by Benjamin Graham.

5.4 Total Shares on Issue: 5-Year Decrease
In the past 5 years total shares on issue have decreased by 30.9 million [6.4%] from 483.8 million to 452.9 million. Based on a dynamic start date of 5 years ago, there have been declines in issued capital in 4 out of 5 years. A reduction in total shares on issue is a favourable indicator in Joseph Piotroski's 9 indicators.

Year End (Jun 30)Total Shares on Issue
2019452,919,486
2018452,353,221
2017455,331,196
2016461,999,573
2015471,817,239
2014483,822,940


5.5 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 31.7%. The Moving Annual Return has consistently exceeded 11%.
CSLClose (AUD)Dividends (AUD)Capital Gain %% YieldAnnual Return %
Nov 13266.912.6843.51.444.9
1 Yr ago1862.2832.41.634.0
2 Yrs ago140.531.7541.41.843.2
3 Yrs ago99.381.79.31.911.1
4 Yrs ago90.961.6423.12.225.3


Close 5 years ago $A73.90

5.6 Increase in Insider Buying
In the past 5 years a total of 87,528 CSL shares worth $A11.1 million were bought by insiders. Based on a dynamic start date of 5 years ago, insider buying has averaged 17,506 shares per year. In the past year, insiders bought 31,374 shares,an increase of 488.3% from the previous year.
YearNo. of SharesValue, AUD
1 Yr ago31,3746,475,099
2 Yrs ago5,33333,996
3 Yrs ago82451,250
4 Yrs ago49,9974,514,561
Total87,52811,074,906


5.7 Annualised Period-based Total Shareholder Returns [TSR %]
TSR %1 yr3 yrs5 yrs10 yrs
CSL.ASX45.340.331.225.1

The annualised period-based Total Shareholder Returns [TSR %] for 1 yr, 3 yrs, 5 yrs and 10 yrs has consistently exceeded 25.0%.

5.8 Present Value of AUD1,000 invested 10 years ago
- The present value of AUD1,000 (PV1000) invested ten years ago in CSL is $A9,417, for a capital gain of $A8,417.
- 10 years Multiplier in AUD = 9.417x
- Annualized Total Shareholder Returns (TSR) in AUD = 25.1%

5.9 Present Value of USD1,000 invested 10 years ago
- The present value of USD1,000 (PV1000) invested ten years ago in CSL is $US7,415, for a capital gain of $US6,415.
- 10 years ago AUD 1 equalled USD 0.8704
- 10 years Multiplier in USD = 7.415x
- Annualized Total Shareholder Returns (TSR) in USD = 22.2%

- The average annual compound return on the share price in the last 5 years was 31.2%, exceeding the average annual compound return on the All Ordinaries Index of 4.6%.

5.10 High Performance Indicators and rank in the Australian market:
DescriptionValueRank In Market
MCap$US83 billionIn Top 1%
Turnover in Quarter$A11.6 billionIn Top 1%
Annual Revenue$US8.5 billionIn Top 2%
Return on Equity [ROE] %36.5In Top 5%
Return on Assets [ROA] %15.6In Top Quartile
Price/MAP2001.23In Top Quartile
Return on Capital Employed [ROCE] %23.1In Top Quartile
Price/MAP501.09In Top Quartile
YTD Price Change %45.4In Top Quartile
Relative Strength (6Mo)*80In Top Quartile
YTD Relative Price Change %26.2In Top Quartile
Volatility %1.7In Top Quartile

* Relative Strength: Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

5.11 Increased VWAP
Past five years, 12 months ended Nov 13 (AUD)
YearHigh PriceVWAPLow Price
2019270.98208.05170.89
2018228.47172.64135.57
2017142.63118.7888.2
2016115.69100.989.07
201595.9884.2672.42

In the past five years Volume Weighted Average Price (VWAP) has increased by 146.9% to $US208.05. Based on a dynamic start date of five years ago, there has been no decline in VWAP over the last 5 years.

5.12 Increased Average Daily Turnover
Past five years, 12 months ended Nov 13 (AUD million)
YearAverage Daily Turnover
2019157.6
2018125.3
2017108.2
2016101.0
201588.1

In the past five years, average daily share turnover has increased 78.8% to $US157.6 million. This suggests increased liquidity.

5.13 Satisfies three criteria of Benjamin Graham
- "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 0.8 times the triple-A bond yield of 1.3%.
-"Current ratio of two or more"; current assets are 2.5 times current liabilities.
-"Stability of growth in earnings over the last 5 years, defined as no more than two declines of 5% or greater in year-end earnings";there has been only 1 decline in earnings in the last 5 years.

5.14 Year-over-year (%) change in dividend:
PeriodendingFY 2018FY 2019
Dividend (AUD)1.281.48

Final dividend for FY 2019 was $US1.48. The year-on-year change was up 15.6% from $US1.28 in the previous corresponding period FY 2018.

SECTION 6 ONGOING BEARISH PARAMETERS

6.1 P/E/G > 1
EPS Growth (%)10.83
P/E/G3.99
P/E43.18

The price earnings ratio of 43.2 divided by trailing twelve months eps growth of 10.8% corresponds to P/E/G of 4.0 times.

6.2 High Debt to Equity
YearsDebt to Equity (%)
Jun 201988.79
Jun 2018107.51
Jun 2017125.65
Jun 2016122.44
Jun 201583.04

The debt to equity ratio of 88.8% is above a safe benchmark figure of 70%. However, it has improved in the past two years.

6.3 Low Performance Indicators and rank in the Australian market:
DescriptionValueRank In Market
Price to Book Value24.6In Bottom 2%
Dividend Yield %1%In Bottom 5%
Price/Earnings43.2In Bottom 9%
Price/Earning/Growth4In Bottom Quartile
Total Debt to Equity0.9In Bottom Quartile
Price to Sales9.7In Bottom Quartile


6.4 Declining ADVT past five years
Avg. Daily Volume Traded 12 months ended Nov 13, thousand shares
YearADVT
2019757.5
2018717.4
2017900.5
2016993.1
20151029.5

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 26.4% to 757,493 shares.

6.5 Satisfies 3 out of 9 criteria of Joseph Piotroski [pass mark 5]
- Positive net income.
- Positive operating cashflow.
- Improvement in gross margin [from 57.8% to 58.2%].

SECTION 7 PRICE VOLUME DYNAMICS (PAST QUARTER)

7.1 YTD Aggregate Volumes

+ASX: CSL.ASX year-to-date volume is 164,405,313; volume 99.99% of aggregate. Average daily volume is 740,564.
Year-to-date (YTD) Volume Weighted Average Price (VWAP): $A214.0.
+Frankfurt: CSJ.FRA year-to-date volume is 17,547; volume 0.01% of aggregate. Average daily volume is 104.
Year-to-date (YTD) VWAP: EUR134.0.
Using the current exchange rate of EUR1 equals 1.6106AUD, the shares are at a 0.9% premium to the year-to-date VWAP on ASX.
+YTD Aggregate volume: there were 164,422,860 shares of CSL worth AUD35.2 billion traded year-to-date.

7.2 The Best 3 weeks in the past quarter
Mon-FriChange %All Ordinaries index Change %RPC %Vol Ind [1 is avg]
Aug 19-234.822.80.9
Oct 07-113.51.32.20.7
Aug 12-163.4-2.761.4

In the past quarter the week beginning Monday August 19 saw the highest weekly rise of 4.8% for a relative price increase of 2.8%.

7.3 The Worst 2 weeks in the past quarter
Mon-FriChange %All Ordinaries index Change %RPC %Vol Ind [1 is avg]
Sep 09-13-4.10.4-4.41
Sep 23-27-0.1-0.20.10.9

In the past quarter the steepest fall of 4.1% took place in the week beginning Monday September 09.

7.4 Stock Trading Volume and Turnover in the past 3 months
TurnoverUS$8 billion
Avg daily turnoverUS$120.7 million
Volume48,100,539
Avg daily volume728,796


7.5 Period-based Price Change %
3-Year price change of 168.6% for CSL outperformed the change of 24.9% in the All Ordinaries index for a relative price change of 143.6%.
Price Change %QuarterYear3 Years
CSL22.443.5168.6
Sector*22.540.2142.7
All Ordinaries index2.412.924.9

* Pharmaceuticals & Biotechnology

7.6 Beta & Standard Deviation
The Beta of this stock is 0.9. A Beta lower than 1 suggests this is a lower risk, lower return stock with volatility less than that of the market.
SD is a statistical measure of deviation from the mean. The SD of 1.4% gives it a percentile rank of 11 meaning that 11% of stocks in the Australian market are less volatile than this stock.
 StockInterpretation
Beta0.9Lower risk, lower return
Standard Deviation1.4Less volatile

SECTION 8 PERIOD-BASED SHAREHOLDER RETURNS

8.1 Past Quarter
The stock rose 38 times (57.6% of the time) and fell 28 times (42.4% of the time). The aggregate volume was 0.9 times average trading of 757,493 shares. The value of $A1,000 invested 3 months ago is $A1,231 [vs $A1,041 for the All Ordinaries Index], including a capital gain of $A224 and dividend reinvested of $A8.

8.2 Year-to-Date
CSL advances 45% in 2019
CSL Limited (ASX:CSL), advanced $A83.38 (or 45.4%) year-to-date (YTD) in 2019 to close at $A266.91 today. Compared with the All Ordinaries Index which has risen 19.2% YTD, this is a relative price increase of 26.2%.

8.3 Past Year
CSL advances 43% in past year
CSL Limited (ASX:CSL), advanced $A80.91 (or 43.5%) in the past year to close at $A266.91 today. Compared with the All Ordinaries Index which has risen 12.9% over the same period, this is a relative price increase of 30.6%.
The stock rose 133 times (52.6% of the time), fell 119 times (47% of the time) and was unchanged 1 time (0.4% of the time). The value of $A1,000 invested a year ago is $A1,453 [vs $A1,149 for the All Ordinaries Index], including a capital gain of $A435 and dividend reinvested of $A18.

8.4 Present Value of $A1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]
PV$A1,0003 mo ago1 yr ago3 yrs ago
CSL.ASX$A1,231$A1,453$A2,792
Pharmaceuticals & Biotechnology sector$A1,225$A1,432$A2,427
All Ordinaries Index$A1,041$A1,149$A1,250


The present value of $A1,000 invested 3 mo ago, 1 Yr ago and 3 Yrs ago has consistently exceeded $A1,230.

SECTION 9 PEER GROUP ANALYSIS & RANKING

9.1 Global Peer Group (all figures in USD): Key Financials
In its Global Peer Group of 9 companies CSL is ranked second by Relative Strength, third by PV$1000, fifth by MCap, sixth by Net Profit, seventh by Revenue and eighth by Total Assets.
Name (Code)Relative Str.
(6 mo)
MCapPV $1000
(1 yr)
RevenueNet ProfitTotal Assets
Rank of CSL253768
Sanofi (SAN)78115.8B1,108.139.4B4.8B122.9B
GlaxoSmithKline (GSK)80111.1B1,194.039.6B4.7B74.7B
Eli Lilly and Company (LLY)54108.3B1,038.024.6B3.2B43.9B
Bristol Myers Squibb (BMY)8894.7B1,156.822.6B4.9B35B
CSL (CSL)9083B1,382.88.5B1.8B12.3B
Takeda Pharmaceutical (4502)6561.7B1,066.019.2B999.2M127B
Walgreens Boots Alliance (WBA)8356.2B787.9136.9B4B67.6B
Chugai Pharmaceutical (4519)9247.4B1,436.05.3B846.8M8.4B
Daiichi Sankyo (4568)8743.4B1,591.78.5B855.3M19.1B

Global Peer Group: Relative Value Indicators
CSL is ranked fourth by P/Book, seventh by P/E, eighth by Turnover Rate and ninth by P/S.
CodeCountry CodeLast PriceP/EP/SP/BookTurnover Rate (%)% Disc to 52-w HiRetention Ratio
Rank of CSL  7948  
SANFREUR83.8416.82.9 45.83.038.6
GSKGBGBX1,731.023.52.8 40.83.6 
LLYUS$US113.1713.74.835.7180.514.369.7
BMYUS$US58.3916.83.914.6183.01.052.7
CSLAUAUDA266.9143.19.724.633.31.6 
4502JPJPY4,303.037.83.2 107.26.9 
WBAUS$US62.7214.50.4 170.326.369.0
4519JPJPY9,257.054.88.97.127.60.939.1
4568JPJPY6,686.046.45.14.751.78.751.4


9.2 BuySellSignals Fundamentals Valuation Ranking: CSL vs Australian Market
Out of 1,375 stocks and 25 units in the Australian Market, CSL is ranked third by Market Cap $A, twentieth by Revenue, Eighty-eighth by ROA and 122nd by EBITDA Margin.
 Australian AvgCSLRankRank 1Rank 2Rank 3Lowest Rank
Market Cap $A1.7 B121.1 B3190.6 B BHP140.3 B CBA121.1 B CSL51,982 MAN
Revenue $A566 M12.5 B2064.6 B BHP60 B WOW59.1 B RIO 
ROA (%)2.115.688170.9 NZS168.2 TLM53.7 UBI0.04 AMP
EBITDA Margin15.728.512289.1 EGF88.6 DUI87.7 EGI(88.3) TNT
P/Earnings Growth1.02x3.99x1750.1x RHT0.1x D2O0.1x KSL-
Free Cash Flow(178.8 M) 43112.8 B WBC10.6 B CBA2.8 B WPL 
P/Earnings17.6x43.2x4351.6x OBM1.8x EHH1.9x GXY-
Yield (%)4.6150016.5 GMA15.7 WHC13.2 FMG0.1 CUV
P/Sales1.9x9.7x655 0.1x MIL0.1x AMO-
Total Debt/Equity1.9x0.9x782KINTNEFWD8.9x SIV
Premium to 52-Wk Low (%)26.256.210080.7 VTH0.7 GTN1 SKI2434.7 SDV
Price/Net Tangible Assets2.7x24.6x11190.1x C6C0.1x 8EC0.1x MHI-
Discount to 52-Wk High (%)1.51.5154995.6 SF191.7 FGO90.99 ECT0.2 JHG

Negative values are shown in brackets.

9.3 Market Share
CSL has a position of market dominance in the Pharmaceuticals & Biotechnology sector.
CSL vs Pharmaceuticals & Biotechnology sector [Pharmaceuticals & Biotechnology sector Total in Brackets]
Revenue of $US12.5 billion[91.3% of aggregate sector revenue of $A13.6 billion; up from 91.1% in the previous year.]

9.4 Share in Index
CSL is a constituent of the following indices. Its market capitalisation accounts for 56.2% of the combined MCap of the S&P/ASX 200 Health Care Index.
Index NameMCap of Index (USD B)MCap as % of Index
S&P/ASX 200 Health Care Index148 56.2
S&P/ASX 20 Index769 10.8
S&P/ASX All Australian 501,030 8.1
S&P/ASX 50 Index1,035 8.0
S&P/ASX 100 Index1,239 6.7
S&P/ASX All Australian 2001,328 6.3
S&P/ASX 200 Index1,381 6.0
S&P/ASX 300 Index1,430 5.8
All Ordinaries Index1,495 5.6


9.5 Global Rank [out of 47,141 stocks] and Rank of CSL in the Asia Pacific Region [out of 2,035 stocks]
DescriptionValueGlobal RankIn APAC Region
MCap (US$)83B1303
Total Assets (US$)12.3B2,43329
Revenue (US$)8.5B1,55822
Net Profit (US$)1.8B67411
Return on Equity %36.51,04148
Net Profit Margin %23.45,010230
Price to Book24.635,7531,617
Price/Earnings43.118,817594
Yield %1.019,027571
PV1000 (1Year) USD*1,3836,624326
US$* Change (1Year) %33.36,303306


* 1 year ago AUD 1 = USD 0.72
Nov 13, 2019: AUD 1 equals USD 0.69

9.6 Rank of CSL in the All Ordinaries Index [out of 470 stocks], in the Total Australian Market [out of 1790 stocks] and in the Pharmaceuticals & biotechnology sector [out of 84 stocks]
DescriptionValueIn All Ordinaries IndexIn Total Australian MarketIn Pharmaceuticals & biotechnology sector
MCap (AUD)121.1B331
Total Assets (AUD)18B28291
Revenue (AUD)12.5B20201
Net Profit (AUD)2.7B11111
Return on Equity %36.523471
Net Profit Margin %23.4862084
Price to Book24.63691,53265
Price/Earnings43.23015336
Yield %1.03255054
PV1000 (1Year) AUD1,4539428819


9.7 Independent Ratings
+ FT 500:
CSL Limited is the 334th largest by revenue in the FT Global 500.
+ Newsweek 500:
It was ranked 240 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016. It had outstanding scores of 4.7% in Carbon productivity, 2.8% in Water productivity.
+ Industryweek 1000:
It is a new entrant in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2016, ranked 667.
+ Forbes 2000:
It is the 1338th largest by revenue in the Forbes Global 2000.
+ BuySellSignals/News Bites:
It is placed 252/1309 in BuySellSignals News Bites' ranking of Australian performers in the past year, a percentile ranking of 81.
+ Vanguard Total World Stock ETF 7627:
The stock was one of 7627 global stocks selected by Vanguard Total World Stock ETF (VT) who sold 5,940 shares in the period Jul 31, 2019 to Aug 31, 2019 worth $US1,367,456 at an estimated Volume Weighted Average Price (VWAP) of $US230.21. As at Aug 31, 2019, the Vanguard Total World Stock ETF held 143,846 shares worth $US22,230,191 or 0.14% by value of the ETF's portfolio [Ranked 109 out of 7627 by value and 3 out of 235 for Australia].

9.8 Long-Term Fundamental Ranking: 4 out of 5 [5 is best]
CSL is ranked number 1 out of 88 listed pharmaceuticals & biotechnology companies in the Australia with a market capitalization of $A121.1 billion.

It has a strong relative ROE of 36.5% and ROA of 15.6%. Finally, its earnings growth in the past 12 months has been a comparatively high 10.8%.
Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.

SECTION 10 STOCK NEWS

10.1 CSL Corporate Wires

10.1.1 Changes in Board (TTM)
May 16: CSL will appoint Chief Operating Officer
CSL will appoint Paul McKenzie as Chief Operating Officer. The effective date is Monday, June 03.

10.1.2 Dividends
August 16: CSL announces dividend
CSL today announced a final dividend of $A1.48 per share, franked to 0%. The ex dividend date is Tuesday, September 10, 2019 and the record date is Wednesday, September 11, 2019 and it is payable on Friday, October 11.

February 15: CSL announces dividend
CSL today announced an interim dividend of $A1.20 per share, franked to 0%. The ex dividend date is Wednesday, March 13, 2019 and the record date is Thursday, March 14, 2019 and it is payable on Friday, April 12.

10.1.3 Performance
February 06: CSL: Notice of Investor/Analyst Briefing - Half Year Results 2019
CSL Limited (ASX:CSL; USOTC:CSLLY) will announce its 201 9 half year r esult on Wednesday 13 February 2019.
A briefing for investors and analysts will be held at 11.00 am Australian Eastern Daylight Time on the same day. This briefing will be webcast on the Company website at www.csl.com.au in the 'Investors' section. An archived copy of the webcast will be uploaded to the site later that day.
Source: Australian Securities Exchange

10.1.4 Share Capital
April 02: CSL increases issued capital
CSL (CSL.AU) has announced an increase of 6,253 shares (or 0.001%) in total shares on issue from 453,094,772 to 453,101,025. The effective date is Friday, March 29.

March 12: CSL increases issued capital
CSL (CSL.AU) has announced an increase of 104,060 shares (or 0.02%) in total shares on issue from 452,990,712 to 453,094,772. The effective date is Friday, March 08.

February 19: CSL increases issued capital
CSL (CSL.AU) has announced an increase of 26,161 shares (or 0.01%) in total shares on issue from 452,964,551 to 452,990,712. The effective date is Friday, February 15.

January 29: CSL increases issued capital
CSL (CSL.AU) has announced an increase of 6,464 shares (or 0.001%) in total shares on issue from 452,958,087 to 452,964,551. The effective date is Friday, January 25.

10.1.5 Press Releases
July 17: CSL: Anjana Narain to Lead Seqirus Influenza Vaccines Business
CSL Limited today named Ms. Anjana Narain, a seasoned leader in vaccines and biopharmaceuticals, as Executive Vice President and General Manager of its Seqirus business, one of the world's largest influenza vaccines providers, effective 1 August.
Source: Australian Securities Exchange

SECTION 11 FINANCIALS

11.1 Financials Summary
Year endedJun 2019Jun 2018Jun 2017
Sales (USD B)8.57.96.9
Pretax (USD B)2.32.31.7
Net (USD B)1.81.71.5
EPS (USD)4.2363.8222.94

+ Net profit was up 9.3% from US$1.7 billion in 2018 to US$1.8 billion in 2019.
+ Earnings Per Share (EPS) was up 10.8% from $US3.82 to $US4.24.
11.2 Financial Results as reported (Annual)

RESULTS OF OPERATIONS AND FINANCIAL CONDITION
(In $US Million, except per share data and shares outstanding)

INCOME STATEMENT AS REPORTED
Description$US Million$US Million 
Jun 3020192018Change %
Continuing operations   
Sales and service revenue8,205.47,587.9Up 8.1
Pandemic Facility Reservation fees133.4117.7Up 13.3
Royalties and License revenue171.1144.8Up 18.2
Other Income28.764.9Down 55.8
Total Operating Revenue8,538.67,915.3Up 7.9
Cost of sales-3,761.2-3,531.6Deterioration 6.5
Gross profit4,777.44,383.7Up 9.0
Research and development expenses-831.8-702.4Deterioration 18.4
Selling and marketing expenses-866.8-786.2Deterioration 10.3
General and administration expenses-574.8-514.8Deterioration 11.7
Operating profit2,5042,380.3Up 5.2
Finance costs-176.7-108.4Deterioration 63.0
Finance income13.89.3Up 48.4
Profit before income tax expense2,341.12,281.2Up 2.6
Income tax expense-422.4-552.3Improved 23.5
Net profit for the period1,918.71,728.9Up 11.0
Other comprehensive income   
Items that may be reclassified subsequently to profit or loss   
Exchange differences on translation of foreign operations net of hedges on foreign investments-34.8-96.9Improved 64.1
Items that will not be reclassified subsequently to profit or loss   
Actuarial (losses)/gains on defined benefit plans net of tax-67.129.6Deterioration
Total of other comprehensive income/(loss)-101.9-67.3Deterioration 51.4
Total comprehensive income for the period1,816.81,661.6Up 9.3
Earnings per share (based on net profit for the period)   
Basic earnings per share$US4.24$US3.82Up 10.8
Diluted earnings per share$US4.23$US3.81Up 10.9
Weighted average number of Ordinary Shares Basic452,919,486452,353,221Up 0.1
Weighted average number of Ordinary Shares Diluted454,027,808453,876,613Up


BALANCE SHEET AS REPORTED
Description$US Million$US Million 
Jun 3020192018Change %
CURRENT ASSETS   
Cash and cash equivalents657.8814.7Down 19.3
Receivables and contract assets1,821.71,478Up 23.3
Inventories3,038.82,692.8Up 12.8
Current tax assets21.46.6Up 224.2
Other financial assets0.41.6Down 75.0
Total Current Assets5,540.14,993.7Up 10.9
NON-CURRENT ASSETS   
Property plant and equipment4,484.33,551.4Up 26.3
Intangible assets1,878.31,802.5Up 4.2
Deferred tax assets378.7401.3Down 5.6
Other receivables21.615.3Up 41.2
Other financial assets9.96.2Up 59.7
Retirement benefit assets1.54.1Down 63.4
Total Non-Current Assets6,774.35,780.8Up 17.2
TOTAL ASSETS12,314.410,774.5Up 14.3
CURRENT LIABILITIES   
Trade and other payables1,407.71,256.8Up 12.0
Interest-bearing liabilities420.6225.7Up 86.4
Current tax liabilities162.2248.4Down 34.7
Provisions194.9180.7Up 7.9
Deferred government grants2.83.1Down 9.7
Total Current Liabilities2,188.21,914.7Up 14.3
NON-CURRENT LIABILITIES   
Interest-bearing liabilities4,242.24,160.6Up 2.0
Retirement benefit liabilities307226.6Up 35.5
Deferred tax liabilities168.7193.7Down 12.9
Provisions35.934.7Up 3.5
Deferred government grants34.637.7Down 8.2
Other non-current liabilities86.5126.6Down 31.7
Total Non-Current Liabilities4,874.94,779.9Up 2.0
TOTAL LIABILITIES7,063.16,694.6Up 5.5
NET ASSETS5,251.34,079.9Up 28.7
EQUITY   
Contributed equity-4,603-4,634.5Improved 0.7
Reserves242224.2Up 7.9
Retained earnings9,612.38,490.2Up 13.2
TOTAL EQUITY5,251.34,079.9Up 28.7


CASH FLOW AS REPORTED
Description$US Million$US Million 
Jun 3020192018Change %
Cash flows from Operating Activities   
Receipts from customers (inclusive of goods and services tax)8,603.28,003.4Up 7.5
Payments to suppliers and employees (inclusive of goods and services tax)-6,304.5-5,570.4Deterioration 13.2
 2,298.72,433Down 5.5
Income taxes paid-527.7-424.6Deterioration 24.3
Interest received14.19Up 56.7
Borrowing costs-140.7-115.3Deterioration 22.0
Net cash inflow from operating activities1,644.41,902.1Down 13.5
Cash flows from Investing Activities   
Payments for property plant and equipment-1,117.6-778.8Deterioration 43.5
Payments for intangible assets-167.2-213.8Improved 21.8
Payments for business acquisitions (Net of cash acquired) -539.7 
Payments for other financial assets and liabilities-2.5-1.8Deterioration 38.9
Net cash outflow from investing activities-1,287.3-1,534.1Improved 16.1
Cash flows from Financing Activities   
Proceeds from issue of shares31.815.7Up 102.5
Dividends paid-806.8-672.2Deterioration 20.0
Proceeds from borrowings898.51,898.9Down 52.7
Repayment of borrowings-610.2-1,475.5Improved 58.6
Payment for shares bought back -138.4 
Other Financing Activities-4.8  
Net cash outflow from financing activities-491.5-371.5Deterioration 32.3
Net (decrease)/increase in cash and cash equivalents-134.4-3.5Deterioration 3,740.0
Cash and cash equivalents at the beginning of the financial year812.7843Down 3.6
Exchange rate variations on foreign cash and cash equivalent balances-20.5-26.8Improved 23.5
Cash and cash equivalents at the end of the financial year657.8812.7Down 19.1


Margins %
Jun 3020192018
Gross Profit Margin58.257.8
EBITDA Margin28.530.1
Earnings from Cont. Ops. Margin28.530.1
Net Income Margin23.422.8


11.3 Annual Report: Key Parameters
FY2019 Annual Report: CSL EPS Growth slows to 10.8%

Release Date: September 06, 2019
CSL (ASX:CSL), announced EPS of $US4.24 for the year-ended 30 June 2019, up 10.8% from $US3.82 in the previous year-ended 30 June 2018. EPS growth from the year-ended 30 June 2017 to the year-ended 30 June 2018 was 30%.

Period-endedEPS in $USEPS growth %
30 June 20194.2410.8
30 June 20183.8230


Major changes compared with previous year:
Favourable Changes:
- Net profit up 9.3% from $US1.7b to $US1.8b
- Total revenue up 7.9% from $US7.9b to $US8.5b
- EPS up 11% from $US3.82 to $US4.24
- Debt to Equity down 17.6% from 1.1 to 0.9
- Total non-current assets to Total Assets up from 53.7% to 55%
- Fixed Assets to Total Assets up from 33% to 36.4%
- Total Liabilities to EBITDA of 3.0 compares favourably with the Joseph Piotroski benchmark of <5. However, it has deteriorated by 3.1% from the previous year's ratio of 2.9.
- Total Liabilities to Operating Cash Flow of 4.3 compares favourably with the Joseph Piotroski benchmark of <4. However, it has deteriorated by 22.2% from the previous year's ratio of 3.5.
Unfavourable Changes:
- EBIT Margin down from 30.1% to 28.5%
- EBIT to total assets down from 21.2% to 19.0%
- Profit before tax to Sales down from 30.1% to 28.5%
- Sales and marketing expenses to Sales up from 10.4% to 10.6%
- Administration expenses to Sales up from 6.8% to 7%
- Current ratio down 3.1% from 2.6 to 2.5
- Working capital to total assets down from 28.6% to 27.2%
- Total current assets to Total Assets down from 46.3% to 45%
Note:
- Total revenue to total assets steady at 0.7
- Cost of Goods Sold to Sales down from 46.5% to 45.8%
- Total liabilities to Total assets steady at 0.6
- Retained earnings to total assets steady at 78.1%
- Current Inventory to Total Assets down from 25% to 24.7%
- Intangibles to Total Assets down from 16.7% to 15.3%

Annual Report [Year-on-year comparison: 2019 vs 2018]
Company Name : CSL Limited (CSL)   
June 3020192018Change
Description$US m$US m(%)
Sales Revenue8,205.47,587.9Up 8.1
Total Revenue8,538.67,915.3Up 7.9
EBITDA2,341.12,281.2Up 2.6
EBIT2,341.12,281.2Up 2.6
Pre-Tax Profit/(Loss)2,341.12,281.2Up 2.6
Profit/(Loss) after Tax1,816.81,661.6Up 9.3
Working Capital3,351.93,079Up 8.9
Current Assets5,540.14,993.7Up 10.9
Current Liabilities2,188.21,914.7Up 14.3
Shareholders' Funds5,251.34,079.9Up 28.7
Total Liabilities7,063.16,694.6Up 5.5
Total Assets12,314.410,774.5Up 14.3
Current Debt420.6225.7Up 86.4
Non-Current Debt4,242.24,160.6Up 2
Total Debt4,662.84,386.3Up 6.3
Operating Cash Flow1,644.41,902.1Down 13.5
Net Assets5,251.34,079.9Up 28.7
Net Tangible Assets3,3732,277.4Up 48.1
AuditorErnst & young  


Year-on-year comparison of Per Share figures
June 3020192018Change (%)
Description$US $US  
Sales18.116.8Up 8
EBIT5.25Up 2.5
EBITDA5.25Up 2.5
Cash145c179.9 cDown 19.4
Working Capital7.46.8Up 8.7
Shareholders' Funds11.69Up 28.6
Total Liabilities15.614.8Up 5.4
Total Assets27.223.8Up 14.1
Non-Current Debt9.49.2Up 1.8
Total Debt10.39.7Up 6.2
EPS Final4.23.8Up 11
   EPS Growth Factor*1.18  

* EPS Growth Factor = EPS growth / Net Profit growth

Year-on-year comparison of Performance Ratios
June 3020192018Change (%)
Return on Equity (%)36.542.4Down 13.9
Return on Assets (%)15.616Down 2.5
Total debt to net tangible assets (%)138.2192.6Down 28.2
Total Liabilities to Operating Cash Flow4.33.5Up 22.2
Debt/Equity0.91.1Down 17.6
Total Liabilities/Total Assets (Down 8.1% from 0.62 to 0.57)0.60.6Down 8.1
Current Ratio2.52.6Down 3.1
Common Size Ratios by Assets %   
Total non-current assets to Total Assets 55.0 53.7 Up 2.5
Total current assets to Total Assets 45.0 46.3 Down 2.9
Fixed Assets to Total Assets 36.4 33.0 Up 10.4
Current Inventory to Total Assets 24.7 25.0 Down 1.2
Intangibles to Total Assets 15.3 16.7 Down 8.5
Common Size Ratios by Sales %   
Cost of Goods Sold to Sales 45.8 46.5 Down 1.6
Profit before tax to Sales 28.5 30.1 Down 5.2
Sales and marketing expenses to Sales 10.6 10.4 Up 2.3
Administration expenses to Sales 7.0 6.8 Up 3.2
Tax expenses to Sales (5.1) (7.3) Up 29.9


Three-year record of growth and performance:
In the last 3 years Total Revenue averaged $US7.8B, EBITDA averaged $US2.1B and Net Profit averaged $US1.7B. Compound Annual Growth Rate (CAGR) averaged 10.3% for Total Revenue, 13.5% for Net Profit and 12.9% for EBITDA.
DescriptionAnnual ($US B)3-year Avg ($US B)3-year CAGR %
Total Revenue8.57.810.3
EBITDA2.32.112.9
Operating Profit2.32.112.9
Net Profit1.81.713.5


Three-year record of EBITDA, Operating Profit, Net Profit, ROE, ROA and ROCE
In 2019 Net Profit Margin of 23.4% was above its 3-year Avg of 21.8% (All Figures in %)
Description20193-year Avg
EBITDA Margin28.527.6
Operating Profit Margin28.527.6
Net Profit Margin23.421.8
Return on Equity36.540.4
Return on Assets15.615.4
Return on Capital Employed23.123.8


11.4 Dividend History
Trailing 12 months dividend has improved from AUD1.64 in 2015 to AUD2.68 in 2019.
Date PaidValue (AUD)Type
10 Sep 20191.48Final
13 Mar 20191.2Interim
Tr 12 Months2.68 
11 Sep 20181.28Final
14 Mar 20181Interim
2017 - 20182.28 
12 Sep 20170.92Final
15 Mar 20170.84Interim
2016 - 20171.76 
13 Sep 20160.89Final
23 Mar 20160.81Interim
2015 - 20161.7 
07 Sep 20150.9Final
16 Mar 20150.74Interim
2014 - 20151.64 


SECTION 12 CSL BOARD OF DIRECTORS

12.1 Board of Directors and years since appointment
NameDesignationSince Appointment
Paul PerreaultChief Executive Officer, Managing Director6 Yrs, 4 Mos
David LamontChief Financial Officer3 Yrs, 10 Mos
Megan ClarkDirector3 Yrs, 9 Mos
David AnsticeDirector-
Tadataka YamadaDirector3 Yrs, 2 Mos
Christine OReillyIndependent Director-
Marie McDonaldIndependent Director-
Bruce BrookIndependent Non-Executive Director-
Abbas HussainIndependent Non-Executive Director1 Yr, 9 Mos
Brian McNameeIndependent Non-Executive Director1 Yr, 9 Mos
Paul McKenzieChief Operating Officer5 Mos
Fiona MeadCompany Secretary1 Yr, 5 Mos
Ed BaileyCompany Secretary-


12.2 Resignations in the past 2 years
NameDesignationDate of Resignation
Edward BaileyCompany Secretary21 December 2017
Maurice RenshawNon-Executive Director18 October 2017


12.3 Profiles
Paul Perreault
CEO & Managing Director
Mr. Paul Perreault was appointed to the CSL Board in February 2013 and was appointed as the Chief Executive Officer and Managing Director in July 2013. He joined a CSL predecessor company in 1997 and has held senior roles in sales, marketing and operations with his most recent prior position being President, CSL Behring. Mr. Perreault has also worked in senior leadership roles with Wyeth, Centeon, Aventis Bioservices and Aventis Behring. He was previously Chairman of the Global Board for the Plasma Protein Therapeutics Association. Mr. Perreault has had more than 30 years experience in the global healthcare industry.
In early 2018, Mr. Perreault was named Australian Financial Review's 2017 CEO of the Year.
Mr. Perreault is a member of the Innovation and Development Committee.
Shareholder Value:
Creation of shareholder value in CSL:
Since appointment as MD: The present value of AUD1,000 invested on the appointment date of July 01, 2013 at close price of $A55.01 is $A5,372, including a capital gain of $A3,852 and dividend reinvested of $A520.

David Lamont
CFO
David was appointed as Chief Financial Officer in January 2016. As Chief Financial Officer, he is responsible for managing the financial aspects of CSL's strategy which includes financial planning and reporting, capital management, tax, treasury and investor relations. Immediately prior to joining CSL, he was the Chief Financial Officer and an Executive Director at MMG since 2010. Prior to this, David served as CFO for several leading multi-national public companies across a range of industries since 1999 - including MMG Limited, Oz Minerals Limited, PaperlinX Limited, BHP Billiton's energy & coal and carbon steel materials divisions, and Incitec Pivot Limited. He is a qualified Chartered Accountant and a member of the Institute of Chartered Accountants (Australia).
Shareholder Value:
Creation of shareholder value in CSL:
Since appointment as CFO: The present value of AUD1,000 invested on the appointment date of January 02, 2016 at close price of $A99.67 is $A2,831, including a capital gain of $A1,678 and dividend reinvested of $A153.

Megan Clark
Director
Dr Megan Clark AC was appointed to the CSL Board in February 2016. She is currently a Director of Rio Tinto and a member of the Australian advisory board of the Bank of America Merrill Lynch. Dr Clark was Chief Executive of the Commonwealth Scientific and Industrial Research Organisation (CSIRO) from 2009 to 2014. Prior to CSIRO, she was a Director at NM Rothschild and Sons (Australia) and was Vice President Technology and subsequently Vice President Health, Safety and Environment at BHP Billiton from 2003 to 2008.
Dr Clark is a member of the Innovation and Development Committee, the Human Resources and Remuneration Committee and the Nomination Committee.
Shareholder Value:
Creation of shareholder value in CSL:
Since appointment as Director: The present value of AUD1,000 invested on the appointment date of February 16, 2016 at close price of $A100.33 is $A2,812, including a capital gain of $A1,660 and dividend reinvested of $A152.

David Anstice
Director
Mr David Anstice was appointed to the CSL Board in September 2008. He was a longtime member of the Board of Directors and Executive Committee of the US Biotechnology Industry Organisation, and has over 45 years' experience in the global pharmaceutical industry. Until his retirement in August 2008, Mr Anstice was for many years a senior executive of Merck & Co., Inc., serving at various times as President of Human Health for US/Canada/ Latin America, Europe and Asia, and at retirement was an Executive Vice President. He is a Director of Alkermes Plc, Dublin, Ireland, and a Director of the United States Studies Centre at the University of Sydney.
Mr David Anstice is Chair of the Human Resources and Remuneration Committee and a member of the Innovation and Development Committee and the Nominations Committee.

Tadataka Yamada
Director
Dr Tadataka Yamada was appointed to the Board in September 2016. He is presently a Venture Partner at Frazier Healthcare Partners, a leading provider of growth capital to healthcare companies, a position that he has held since 2015. Prior to this, he was the Chief Medical and Scientific Officer at Takeda Pharmaceuticals, as well as a member of the Board. Prior to Takeda, Dr Yamada was President of the Bill & Melinda Gates Foundation Global Health Program and prior to that was Chairman of Research and Development at GlaxoSmithKline. He currently serves as a director of Agilent Technologies, Inc. and the Clinton Health Access Initiative and a member of the Council of the National Academy of Medicine. Dr Yamada is also a Fellow of the Imperial College of Medicine, a Master of the American College of Physicians, a Fellow of the Royal College of Physicians.
Dr Yamada is a member of the Innovation and Development Committee and the Nomination Committee.
The Board has determined that Dr Yamada is an independent Director.
Shareholder Value:
Creation of shareholder value in CSL:
Since appointment as Director: The present value of AUD1,000 invested on the appointment date of September 01, 2016 at close price of $A102.38 is $A2,733, including a capital gain of $A1,607 and dividend reinvested of $A126.

Christine OReilly
Independent Director
BBus - (Age 56)
Finance and Infrastructure (resident in Victoria) Independent: Yes Ms Christine O'Reilly was appointed to the CSL Board in February 2011. She is a Director of Transurban, Energy Australia, Medibank Private Limited and Baker Heart & Diabetes Institute. Ms O'Reilly has in excess of 30 years financial and operational business experience in domestic and off-shore organisations. During her executive career, she was Co-Head of Unlisted Infrastructure Investments at Colonial First State Global Asset Management and prior to that was the Chief Executive Officer of the GasNet Australia Group.
Ms O'Reilly is a member of the Audit and Risk Management Committee, the Human Resources and Remuneration Committee, and the Nomination Committee.

Marie McDonald
Independent Director
BSc (Hons), LLB (Hons) - (Age 61)
Law (resident in Victoria) Independent: Yes Ms Marie McDonald was appointed to the CSL Board in August 2013. For many years she has practised in company and commercial law and she was a partner of Ashurst (formerly Blake Dawson) until July 2014. Ms McDonald is currently a Director of Nanosonics Limited, The Walter and Eliza Hall Institute of Medical Research and Nufarm Limited. She was Chair of the Corporations Committee of the Business Law Section of the Law Council of Australia from 2012 to 2013, having previously been the Deputy Chair, and was also a Member of the Australian Takeovers Panel from 2001 to 2010.
Ms McDonald is a member of the Audit and Risk Management Committee and the Nomination Committee.

Bruce Brook
Independent Non-Executive Director
Mr Bruce Brook was appointed to the CSL Board in August 2011. He is currently Chairman of Programmed Maintenance Services Limited and a Director of Newmont Mining Corporation. Mr Brook has previously been Chairman of Energy Developments Limited and a Director of Boart Longyear Limited, Lihir Gold Limited and Consolidated Minerals Limited. During his executive career, he was Chief Financial Officer of WMC Resources Limited and prior to that the Deputy Chief Financial Officer of the ANZ Banking Group.
Mr Brook is Chairman of the Audit and Risk Management Committee and a member of the Nomination Committee.

Brian McNamee
Independent Non-Executive Director
Shareholder Value:
Creation of shareholder value in CSL:
Since appointment as Independent Non-Executive Director: The present value of AUD1,000 invested on the appointment date of February 14, 2018 at close price of $A145.69 is $A1,877, including a capital gain of $A832 and dividend reinvested of $A45.

Abbas Hussain
Independent Non-Executive Director
Mr Abbas Hussain was appointed to the CSL Board in February 2018. He is currently a Director of Immunocore Limited. Mr Hussain has previously been Global President, Pharmaceutical at GlaxoSmithKline (GSK) and a Director of ViiV Healthcare Limited, as well as previously serving on the Board of Aspen Healthcare and the Duke/National University of Singapore Medical School.
Mr Hussain is a member Innovation and Development Committee and the Human Resources and Remuneration Committee.
Shareholder Value:
Creation of shareholder value in CSL:
Since appointment as Independent Non-Executive Director: The present value of AUD1,000 invested on the appointment date of February 14, 2018 at close price of $A145.69 is $A1,877, including a capital gain of $A832 and dividend reinvested of $A45.

Paul McKenzie
Chief Operating Officer
Shareholder Value:
Creation of shareholder value in CSL:
Since appointment as COO: The present value of AUD1,000 invested on the appointment date of June 03, 2019 at close price of $A203.37 is $A1,321, including a capital gain of $A312 and dividend reinvested of $A8.

Ed Bailey
Company Secretary

Fiona Mead
Company Secretary
Shareholder Value:
Creation of shareholder value in CSL:
Since appointment as Company Secretary: The present value of AUD1,000 invested on the appointment date of June 04, 2018 at close price of $A184.77 is $A1,471, including a capital gain of $A445 and dividend reinvested of $A27.

SECTION 13 PATENTS

13.1 Patents issued to CSL by the US PTO in the past year
In the past year following 6 patents were issued by the US PTO to CSL:
Issue DateTitlePatent No.
Sep 24, 2019Process for preparing Apolipoprotein A-I (Apo A-I)10,421,799
Sep 10, 2019Method of treating diabetic nephropathy in a subject suffering from type 2 diabetes by administering an antibody which inhibits VEGF-B signaling10,407,498
Jul 02, 2019Reconstituted high density lipoprotein formulation and production method thereof10,335,457
Jul 02, 2019Method of treating stroke by administering a compound that inhibits VEGF-B signaling in combination with a thrombolytic agent10,336,821
Apr 02, 2019Method to concentrate von willebrand factor or complexes thereof10,246,485
Mar 26, 2019Factor VIII formulation10,238,718


13.2 Patents issued to CSL by the EPO in the past year
In the past year following 3 patents were issued by the European Patent Office (EPO) to CSL:
Issue DateTitlePatent No.
Jun 26, 2019NOVEL CHROMONE OXIME DERIVATIVE AND ITS USE AS ALLOSTERIC MODULATOR OF METABOTROPIC GLUTAMATE RECEPTORSEP3501566 (A1)
Jun 05, 2019A RECONSTITUTED HIGH DENSITY LIPOPROTEIN FORMULATION AND PRODUCTION METHOD THEROFEP3492085 (A1)
Dec 26, 2018CONTAMINANT REMOVAL METHODEP3418290 (A1)


13.3 Number of Patents Issued to CSL by the US Patent Office and the European Patent Office (Past 12 Months)
There were a total of 10 patents issued to CSL in the past 12 months. The highest number (2) were issued in September, 2019.
MonthNo. of Patents Issued
September2
July2
June2
April1
March1
December2
Total (Past 12 Months)10


13.4 Rank by patents issued in the past 12 months: CSL vs AUSTRALIA stocks
There are 2,003 listed companies in Australia. Of these, 43 (or 2.1%) companies were issued a total of 391 patents. Of these 348 were issued by the USPTO and 43 by the European Patent Office in the past 12 months, an average of 9 patents per company. The highest number of patents [Rank 1] were issued to Fisher & Paykel Healthcare (FPH) at 122. When ranked by patents issued, Fisher & Paykel Healthcare rank is 1/43. The rank for CSL is 5/43.
AUSTRALIA AvgCSLRankRank1Rank2Rank3% of Total
9105122 FPH84 COH78 ALL2.6


13.5 Rank by patents issued in the past 12 months: CSL vs Pharmaceuticals & biotechnology sector
There are 88 active stocks in the Pharmaceuticals & biotechnology sector in Australia market. Of these, 14 companies were issued a total of 31 patents. Of these 24 were issued by the USPTO and 7 by the European Patent Office in the past 12 months, an average of 2 patents per company. In the Pharmaceuticals & biotechnology sector, the highest number of patents [Rank 1] were issued to CSL (CSL) at 10.
Pharmaceuticals & biotechnology sector AvgCSLRankRank1Rank2Rank3% of Total
210110 CSL5 MSB4 BNO880.0

SECTION 14 CORPORATE PROFILE

14.1 Stock Identifiers
ISIN: AU000000CSL8
PermID: 4295856855
CUSIP: Q3018U109

14.2 Contact details
Websitehttp://www.csl.com.au/
Physical Address45 Poplar Road, PARKVILLE, VIC, AUSTRALIA, 3052
Phone(03) 9389 1911
Fax(03) 9389 1434
Emailmark.dehring@csl.com.au


14.3 Industry & Sector
Classification LevelName of Sector
Industry GroupPharmaceuticals
IndustryPharmaceuticals
Economic SectorHealthcare
Business SectorPharmaceuticals & Medical Research


14.4 Activities
CSL Limited (CSL) is a global biotechnology company that develops and delivers innovative medicines that save lives, protectpublic health and help people with life-threatening medical conditions live full lives. The operational businesses include CSL Behring and Seqirus provides life saving products to more than 60 countries and employs 22,000 people. The Group operates predominantly in Australia, the USA, Germany, the United Kingdom and Switzerland.

SECTION 15 GLOSSARY

Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Debt/Equity: Net Debt/Net Assets %
Dividend Yield: Dividend Per Share/Share Price (%)
PV1000: Present value of 1000 invested 1 year/'n' years ago
Price/Earnings: Share Price/Earnings Per Share (times)
Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index
Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.
Volatility: Highest Price minus Lowest Price/Lowest Price (%)
Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

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