CSL Limited

Thank you for standing by and welcome to the CSL Limited full year financial results. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Chris Cooper, Head of Investor Relations. Please go ahead.

Good morning and welcome to CSL's full year results call for fiscal 2025. It's Chris Cooper speaking and I'm pleased to be joined by Paul McKenzie, CSL's Chief Executive Officer and Joy Linton, CSL's Chief Financial Officer. As with past practice, Paul will provide an overview of the results and then Joy will provide additional detail on the financials. We'll then move to Q&A. Please note this briefing is being webcast and before we start, I draw your attention to the forward statement disclaimer contained in the slide deck. I'll now hand over to CSL's Chief Executive Officer, Dr. Paul McKenzie.

Thank you, Chris. Good morning. I am Paul McKenzie, CSL's Chief Executive Officer and Managing Director. Today, I will highlight our business performance for fiscal year 25 and provide some comments on our strategy to deliver enduring impact for our patients and shareholders. CSL's Chief Financial Officer, Joy Linton, will then take you through our financials. I will then provide more detail around our transformation initiatives and simplification announcements before closing with our outlook and guidance for financial year 2026. We will then take your questions. You have seen that CSL has made key announcements today that I believe will drive growth for the company into the future. Growth was once again a key feature of our results for fiscal year 25. On a constant currency basis, all three business units grew sales, resulting in 5% growth in the CSL group revenue. NPAD A grew 14%. NPAD increased by 17%. Leverage improved to 1.8 times net debt to EBITDA basis. Free cash flow increased by 58%, and we increased our final dividend by 12% to $1.62 U.S. per share. We are pleased with this performance, but we know we must rapidly adapt to position ourselves well into the next decade, given a constantly evolving operating environment. It is from this position of strength that I am excited to announce major transformational changes today. Significant operating model changes that will improve CSL's clinical and commercial pipeline execution, while reducing costs and simplifying decision-making across the organization. The financial benefit is twofold. Firstly, we will target more than half a billion U.S. dollars in savings by the end of fiscal year 28. Secondly, we will look to balance the reinvestment of these savings in high-priority opportunities with the need to deliver sustainable, profitable growth. As always, we will be disciplined in allocating these funds with sustainable value creation as our guide, and we remain committed to delivering double-digit earnings growth over the medium term. We have also announced an intent to demerge CSL Securus as an independent ASX listed entity in fiscal year 2026. CSL's management team and board believe there is a clear strategic benefit to the demerger. Both ASX listed entities will be able to focus on their core capabilities and realize simplification benefits which will drive growth. and each will have a sustainable capital structure and access to funding to pursue distinct growth strategies. Finally, we are reintroducing a multi-year share buyback program starting this financial year. We continue to see attractive fundamentals in our key disease areas and are delivering on our strategy. These initiatives are designed to help us reliably drive our growth agenda and shareholder returns into the future. Joy and I will speak about these in more detail shortly. But now I will turn to our individual business performance highlights for the last financial year. Starting with CSL bearing on slide 8, where revenue increased by 6% at constant currency. Demand for our core products remained strong, with Privagen and iCentra growing 8% and 6% respectively. I would remind everyone that the second half of the year was impacted by the implementation of the IRA Part D reform. Importantly, though, we are seeing increasing demand from core indications, such as CIDP, PID, and SID, which reinforces our confidence that there is a significant growth path in the demand for our products. Our albumin portfolio grew by 7%, driven by a strong performance in China. We are very proud that CSL's hemophilia franchise once again demonstrated market leadership with growth of 13% at constant currency. Adelvion remains the standard of care, achieving 10% growth for the year. The uptake of hemogenics continues to increase, and we remain positive on this therapy. In particular, the recent four-year post-infusion data demonstrated durable efficacy and safety in adults with hemophilia B. Aligned with our new strategic focus on diseases, you will see the bottom of the slide looks different this year, with HAE and perioperative bleeding products reported separately. The HAE franchise grew 4%. But our new Endemri product was only approved and launched in the U.S. in the closing weeks of the fiscal year. Endemri offers the promise of eliminating HAE attacks for the majority of patients with a simple once-monthly dosing being an easy-to-use pre-filled auto-injector. I look forward to updating you on our global launch progress in fiscal year 26 at Capital Markets Day. Finally, perioperative bleeding. was impacted by a tender loss in the U.S. We are now past the first full year of this event and saw positive growth from the first half to the second half of the financial year. As market leader, we continue to view this as a highly attractive market with significant unmet need. During the period, we also made progress on our plans for label expansions for both Kcentra and Reyesstaff. Now turning to CSL Securus on slide nine. Revenue for CSL Seqirus was up 2%, which was a robust result given the decline in vaccination rates for influenza. This weak market backdrop has been disappointing, and we view the softness in the U.S. seasonal category as highly irrational based on the vaccine risk-reward profiles and the scale of disease burden, which this year reached a 15-year high. I will talk more about the outlook for Seqirus later. but we do see cause for optimism in the global seasonal influenza market. In the U.S., for example, we are encouraged by the recent positive universal recommendation by ACIP, a clear sign that influenza is not going away, and it still has severe impact on public health. During the year, we delivered on our exciting geographical expansion plans earlier than expected when we received preferential recommendations in Germany and France for our Fluad products. We also launched this product in Taiwan and South Korea. Another positive was recognition of our pre-pandemic capability. The majority of avian flu contracts globally were awarded to CSL, which was strong recognition of our best-in-class differentiated platforms. Finally, fiscal year 25 result also included revenue from the supply of CoastAid to our partner in Japan. On to CSL v4, where revenue was up 8% at constant currency, and we delivered global volume growth in iron. We maintain strong positions in EU markets, holding iron volumes despite generic entrants. Injectifer continues to be the leading branded high-dose IV iron product by market share and sales in the United States. Our pharyngect launch in China is progressing well, with hospital listings and demand generation ahead of targets. The inclusion of the pediatric indication in the national reimbursement drug list that became effective on January 1st is expected to further drive hospital uptake and expand patient access. For nephrology, Valforo was the standout, with sales growing significantly in the U.S. as a result of its inclusion in the Tadapa scheme. Tavanos delivered significant growth across all launch markets, helping patients with a rare and serious autoimmune disorder called AAV. Filspare was successfully launched in Germany, Austria, and Switzerland. It is the only therapy in Europe that has demonstrated clinically meaningful kidney function preservation in adults with IGAM, a rare and progressive renal disease that is the leading cause of kidney failure. Now I will hand over to Joy to take you through the financials in more detail.