CSL

Dear Shareholder,
Continuing robust demand for our plasma products and the strong uptake of the GARDASIL* vaccine in Australia and on international markets have combined to deliver an excellent annual result for CSL.

• Group net profit after tax from continuing operations increased 30% on the previous year to $702 million, up 45% after adjusting for adverse foreign currency movements. Cash flow from operations grew by 49% to $715 million.
• CSL received royalty payments of $167 million from Merck & Co. Inc. (Merck) on international sales of the GARDASIL* vaccine and a successful Australian immunisation program has been implemented generating $227 million.
• In February 2008, CSL launched Privigen™ in the US. This new generation 10% liquid intravenous immunoglobulin (IVIg) is set to become a driver of margin expansion and value.
• Expenditure on Research and Development increased by 18% to $225 million.
• Following US Food and Drug Administration (FDA) approval of CSL’s Afluria® influenza vaccine in September 2007, this product has been launched in the US. Capital works recently completed at our Melbourne production facility will provide the extra capacity required for significant market expansion.
• In April 2008, CSL signed a five year agreement with the Canadian Blood Service to fractionate Canadian plasma and supply a broad range of plasma products. At the same time, CSL entered into an agreement with Héma Québec to become the main supplier of bleeding disorder treatments for the Province of Quebec.
• In August 2008, CSL announced that it had signed an agreement to acquire Talecris Biotherapies Holdings Group for US$3,100 million.

Our Thanks to Management and Staff

Our continuing strong business performance and international delivery of life-saving medicines are grounded on the achievements of many people in research and development, manufacturing, business development, sales and marketing, capital works and a range of essential support services.

Your Board of Directors congratulates management and staff around the world for CSL’s achievements in another successful year.

*GARDASIL is a trademark of Merck & Co. Inc.
^TM Trademark of CSL Limited or its affiliates.
® Registered trademark of CSL Limited or its affiliates