CSL (CSL) Investor update summary

Strategic Review, Transformation, and Growth Initiatives

• Leadership conducted a comprehensive 10-year business review, confirming the need for transformation and initiating efficiency and cost reduction measures.

• Focus remains on strengthening core plasma operations, investing selectively in adjacent areas, and restoring profitable growth.

• Operational simplification, right-sizing, and commercial integration are progressing, with synergies from Behring and Vifor and separation of Seqirus.

• Transformation initiatives target cost reduction, operational simplification, and improved execution, with annual savings of $500m–$550m by FY28.

• Leadership transition is on track, with new appointments and succession planning for CEO and chair ongoing.

Financial Performance and Updated Guidance

• FY26 revenue is expected to be around $15.2 billion (constant currency), with NPATA of about $3.1 billion, both revised lower from prior guidance.

• Non-cash, pre-tax impairments of approximately $5 billion are anticipated across FY26 and FY27, mainly related to Vifor intangible assets and underutilized facilities.

• Cost savings from transformation are tracking ahead of plan, with further opportunities identified.

• Foreign exchange volatility may increase reported revenue by $400 million but reduce NPATA by $20 million if current rates persist.

• Positive financial momentum is expected in 2H Behring revenue growth, though benefits from growth initiatives will take time.

Market and Operational Dynamics

• U.S. IG market demand remains healthy, but excess channel inventory caused a $300 million sales headwind; normalization is now complete.

• China albumin market share is growing, but revenue is down due to price erosion and slower-than-expected volume growth, with a $200 million impact.

• Market share losses in IG and Hizentra are being addressed through enhanced commercial focus and direct-to-patient initiatives.

• Seqirus influenza vaccines and rare disease products are gaining share despite market headwinds.

• The Baheal partnership in China is progressing as planned, with committed volumes and close collaboration.