Full Year 2026 CSL Ltd Earnings Call

August 18, 2026

Speaker #1: Thank you for standing by, and welcome to the CSL Limited Full-Year Financial Results 2026 conference call. All participants are in listen-only mode. There will be a presentation, followed by a question-and-answer session.

Operator: Thank you for standing by, and welcome to the CSL Limited Full Year Financial Results 2026 conference call. 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 1 on your telephone keypads. I would now like to hand the conference call over to Michelle Rees, Head of Investor Relations. Please go ahead.

Operator: Thank you for standing by, and welcome to the CSL Limited Full Year Financial Results 2026 conference call. 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 1 on your telephone keypads. I would now like to hand the conference call over to Michelle Rees, Head of Investor Relations. Please go ahead.

Speaker #1: If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference call over to Michelle Rees, Head of Investor Relations.

Speaker #1: Please go ahead.

Speaker #2: Good morning, everyone. Thank you for joining CSL's 2026 full-year results presentation. I'm Michelle Rees, Head of Investor Relations. Before we begin, I would like to draw your attention to the important disclaimer on the screen.

Michelle Rees: Good morning, everyone, and thank you for joining CSL's 2026 full-year results presentation. I'm Michelle Rees, Head of Investor Relations. Before we begin, I would like to draw your attention to the important disclaimer on the screen. A copy of this, along with our ASX materials, has been published on the CSL and ASX websites. With me today are Gordon Naylor, CSL's Interim Chief Executive Officer and Managing Director, Ken Lim, our Chief Financial Officer, and Diego Sacristan, our Chief Commercial Officer. Please note this briefing is being webcast. I will now hand over to Gordon.

Speaker #2: A copy of this, along with our ASX materials, has been published on the CSL and ASX websites. With me today are Gordon Naylor, CSL's interim Chief Executive Officer and Managing Director; Ken Lim, our Chief Financial Officer; and Diego Sacristán, our Chief Commercial Officer.

Speaker #2: Please note, this briefing is being webcast. I will now hand over to Gordon.

Speaker #3: Thanks, Michelle, and good morning, everyone. Today's call is primarily about our FY26 full-year results and the outlook for FY27. I'll also give you a broader update on our progress toward a return to profitable, sustainable growth.

Gordon Naylor: Thanks, Michelle, and good morning, everyone. Today's call is primarily about our FY26 full-year results and the outlook for FY27. I will also give you a broader update on our progress toward a return to profitable, sustainable growth. In early May, after 90 days in the role, I shared with you that our financial performance had fallen short of expectations and the rapid diagnosis work undertaken to assess the drivers of that outcome. I'm pleased to report that in the intervening weeks, we've been able to maintain momentum to stabilize the company's performance, restore the cadence and focus of the leadership team, and start to deliver results. Considerable work remains, but we are making progress. FY26 has been a reset year for CSL. The actions to put us back on the path to sustainable growth started well before my appointment and have been delivered with intention and urgency.

Speaker #3: In early May, after 90 days in the role, I shared with you that our financial performance had fallen short of expectations, as well as the rapid diagnosis work undertaken to assess the drivers of that outcome.

Speaker #3: I'm pleased to report that, in the intervening weeks, we've been able to maintain momentum, stabilize the company's performance, restore the cadence and focus of the leadership team, and start to deliver results.

Speaker #3: Considerable work remains, but we are making progress. FY26 has been a reset year for CSL. The actions that put us back on the path to sustainable growth started well before my appointment and have been delivered with intention and urgency.

Speaker #3: My observation on this is twofold. The industry structures in which we compete remain robust, and as I traveled around the global business and engaged with staff, it is evident that the CSL culture of capability, commitment, and openness remains deeply held.

Gordon Naylor: My observation on this is twofold. The industry structures in which we compete remain robust. As I traveled around the global business and engaged with staff, it is evident that the CSL culture of capability, commitment, and openness remains deeply held. There is absolute clarity in the global workforce about the task at hand. The leadership team has been key to ensuring that communication with the broader organization has been consistent, open, and transparent. The full support of the board has helped us to move rapidly. The FY27 planning process included the allocation of accountability to a high level of detail, all supporting CSL's return to profitable growth. We assessed initiatives in play, focusing on the ones that are core to our success, and stopping the ones that weren't.

Speaker #3: There is absolute clarity in the global workforce about the task at hand. The leadership team has been key to ensuring that communication with the broader organization has been consistent, open, and transparent.

Speaker #3: The full support of the Board has helped us to move rapidly. The FY27 planning process included the allocation of accountability to a high level of detail, all supporting CSL's return to profitable growth.

Speaker #3: We assessed initiatives in play, focusing on the ones that are core to our success, and stopping the ones that weren't. Since I'm not a candidate for the permanent CEO role, I've been able to work with the board on the process.

Gordon Naylor: Since I am not a candidate for the permanent CEO role, I have been able to work with the board on the process. I am pleased to say, on behalf of the board, that the search is progressing to plan, and the board is impressed with the caliber of talent on our shortlist. In the interim, my role is to continue to drive the business forward, and to give the incoming CEO the strongest possible foundation from which to build. I then expect to return to the board as a non-executive director after a suitable transition period. With that, let us turn to the FY26 result. I will take you through the high points and then hand over to Ken to explore the financial details. As a reminder, the numbers I talk to are on a reported basis, and the percentage movements mentioned are on a constant USD currency basis, unless otherwise stated.

Speaker #3: I'm pleased to say, on behalf of the Board, that the search is progressing to plan, and the Board is impressed with the caliber of talent on our shortlist.

Speaker #3: In the interim, my role is to continue to drive the business forward and to give the incoming CEO the strongest possible foundation from which to build.

Speaker #3: I then expect to return to the Board as a non-executive director after a suitable transition period. With that, let's turn to the FY26 results.

Speaker #3: I'll take you through the high points, and then hand over to Ken to explore the financial details. As a reminder, the numbers I referred to are on a reported basis, and the percentage movements mentioned are on a constant US dollar currency basis.

Gordon Naylor: As a reminder, the numbers I talk to are on a reported basis, and the percentage movements mentioned are on a constant USD currency basis, unless otherwise stated. Revenue was $15.8 billion, down 1%. Underlying NPAT-A was $3.1 billion, down 2%, while underlying NPAT was $2.8 billion, down 3%. As you know, we are returning to NPAT as our core financial profitability measure. Reported NPAT includes the significant one-off restructuring and impairment charges that Ken will discuss in detail. Within the businesses, CSL Behring revenue declined by 1% at constant currency. CSL Seqirus declined by 8%, and CSL Vifor grew by 3%. Underlying demand for immunoglobulin remains robust, ANDEMBRY has performed ahead of our initial expectations, and HEMGENIX continues to grow. Within influenza vaccines, CSL Seqirus was the only global participant to grow seasonal influenza revenue year on year, despite significant sectoral headwinds.

Speaker #3: Unless otherwise stated, revenue was $15.8 billion, down 1%. Underlying NPAT-A was $3.1 billion, down 2%, while underlying NPAT was $2.8 billion, down 3%.

Gordon Naylor: Revenue was $15.8 billion, down 1%. Underlying NPAT-A was $3.1 billion, down 2%, while underlying NPAT was $2.8 billion, down 3%. As you know, we are returning to NPAT as our core financial profitability measure. Reported NPAT includes the significant one-off restructuring and impairment charges that Ken will discuss in detail. Within the businesses, CSL Behring revenue declined by 1% at constant currency. CSL Seqirus declined by 8%, and CSL Vifor grew by 3%. Underlying demand for immunoglobulin remains robust, ANDEMBRY has performed ahead of our initial expectations, and HEMGENIX continues to grow. Within influenza vaccines, CSL Seqirus was the only global participant to grow seasonal influenza revenue year on year, despite significant sectoral headwinds. Our transformation program delivered $176 million of savings in FY26, ahead of the target we had set for the year.

Speaker #3: As you know, we're returning to a profitability measure. Reported NPAT includes the significant one-off restructuring and impairment charges that Ken will discuss in detail. Within the businesses, bearing revenue declined by 1% at constant currency.

Speaker #3: Securus declined by 8%, and V4 grew by 3%. Underlying demand for minoglobulin remained robust, and Denbury has performed ahead of our initial expectations. Hemogenics continues to grow.

Speaker #3: Within influenza vaccines, Securus was the only global participant to grow seasonal influenza revenue year on year, despite significant sectoral headwinds. Our transformation program delivered $176 million of savings in FY26, ahead of the target we set for the year.

Gordon Naylor: Our transformation program delivered $176 million of savings in FY26, ahead of the target we had set for the year. We selectively reinvest a portion of those savings in commercial and development initiatives where we expect the returns to justify the investment. Cash flow from operations remained strong at $3.5 billion. This supported the completion of the share buyback of around AUD 1 billion, and Ken will talk about a further buyback ahead. In addition, I am pleased to announce that we are maintaining the dividend in USD. These capital returns are evidence of the underlying robustness of the business. Turning now to CSL Behring, our largest business. Total revenue was $11.4 billion, which was down 1% against the prior comparable period. Immunoglobulin revenue was broadly flat for the year. The reported outcome was affected by the normalization of US channel inventory that we spoke about in our May update.

Speaker #3: We selectively reinvest a portion of those savings in commercial and development initiatives where we expect the returns to justify the investment. Cash flow from operations remained strong at $3.5 billion.

Gordon Naylor: We selectively reinvest a portion of those savings in commercial and development initiatives where we expect the returns to justify the investment. Cash flow from operations remained strong at $3.5 billion. This supported the completion of the share buyback of around AUD 1 billion, and Ken will talk about a further buyback ahead. In addition, I am pleased to announce that we are maintaining the dividend in USD. These capital returns are evidence of the underlying robustness of the business. Turning now to CSL Behring, our largest business. Total revenue was $11.4 billion, which was down 1% against the prior comparable period. Immunoglobulin revenue was broadly flat for the year. The reported outcome was affected by the normalization of US channel inventory that we spoke about in our May update. We now see channel inventory at more appropriate levels.

Speaker #3: This supported the completion of the share buyback of around $1 billion Australian dollars, and Ken will talk about a further buyback ahead. In addition, I'm pleased to announce that we are maintaining the dividend in US dollars.

Speaker #3: These capital returns are evidence of the underlying robustness of the business. Turning now to CSL Behring, our largest business, total revenue was $11.4 billion, which was down 1% against the prior comparable period.

Speaker #3: Aminoglobulin revenue was broadly flat for the year. The reported outcome was affected by the normalization of US channel inventory, that was spoken about in our May update.

Speaker #3: We now see channel inventory at more appropriate levels. You may recall, during the year, we were also cycling the Medicare Part D changes and the loss of the UK tender during the first half of FY25.

Gordon Naylor: We now see channel inventory at more appropriate levels. You may recall during the year, we were also cycling the Medicare Part D changes and the loss of the UK tender during the H1 of FY25. These created an additional headwind to the year-on-year comparison and contributed to the flat full year IG result. The more relevant indicator of current demand is the H2 performance. IG revenue increased 7% on the prior comparable period and 4% on the immediate preceding half. We regard this as an early indicator that the commercial investments we have made in the US are yielding benefits. We are now maintaining patient share in HIZENTRA, which is important as it demonstrates the durability of the franchise. Albumin revenue declined by 17%, principally reflecting cost containment measures and the resulting reduction in market value in China.

Gordon Naylor: You may recall during the year, we were also cycling the Medicare Part D changes and the loss of the UK tender during the H1 of FY25. These created an additional headwind to the year-on-year comparison and contributed to the flat full year IG result. The more relevant indicator of current demand is the H2 performance. IG revenue increased 7% on the prior comparable period and 4% on the immediate preceding half. We regard this as an early indicator that the commercial investments we have made in the US are yielding benefits. We are now maintaining patient share in HIZENTRA, which is important as it demonstrates the durability of the franchise. Albumin revenue declined by 17%, principally reflecting cost containment measures and the resulting reduction in market value in China. We are encouraged to see a slowing in the rate of decline in the Chinese albumin market.

Speaker #3: These created an additional headwind to the year-on-year comparison and contributed to the flat full-year IG result. The more relevant indicator of current demand is the second-half performance.

Speaker #3: IG revenue increased 7% on the prior comparable period, and 4% on the immediately preceding half. We regard this as an early indicator that the commercial investments we've made in the US are yielding benefits.

Speaker #3: We're now maintaining patient share in Hizentra, which is important as it demonstrates the durability of the franchise. Albumin revenue declined by 17%, principally reflecting cost containment measures and the resulting reduction in market value in China.

Speaker #3: We're encouraged to see a slowing in the rate of decline in the Chinese albumin market. You can see this reflected in our second half result, which was down 5% compared to the prior comparable period.

Gordon Naylor: We are encouraged to see a slowing in the rate of decline in the Chinese albumin market. You can see this reflected in our H2 result, which was down 5% compared to the prior comparable period. We have expanded our geographic footprint in China and our partnership with Bahiel, who bring great strengths in the retail channel. We continue to see progress from the commercial investment initiatives in both IG and albumin. It remains early, and we recognize the need to demonstrate sustained execution, but the direction of travel is improving. Elsewhere in the portfolio, our newer products performed well. ANDEMBRY has had a strong launch and is now available in 19 markets around the world. HEMGENIX grew by 25%. In perioperative bleeding, competition in the US continues to impact KCENTRA pricing, although we are seeing the rate of decline beginning to moderate.

Gordon Naylor: You can see this reflected in our H2 result, which was down 5% compared to the prior comparable period. We have expanded our geographic footprint in China and our partnership with Bahiel, who bring great strengths in the retail channel. We continue to see progress from the commercial investment initiatives in both IG and albumin. It remains early, and we recognize the need to demonstrate sustained execution, but the direction of travel is improving. Elsewhere in the portfolio, our newer products performed well. ANDEMBRY has had a strong launch and is now available in 19 markets around the world. HEMGENIX grew by 25%. In perioperative bleeding, competition in the US continues to impact KCENTRA pricing, although we are seeing the rate of decline beginning to moderate. On portfolio execution, underlying IG demand remains robust.

Speaker #3: We have expanded our geographic footprint in China, and our partnership with Bahil, who bring great strengths in the retail channel. We continue to see progress from the commercial investment initiatives in both IG and albumin.

Speaker #3: It remains early, and we recognize the need to demonstrate sustained execution, but the direction of travel is improving. Elsewhere in the portfolio, our newer products performed well.

Speaker #3: And Denbury has had a strong launch and is now available in 19 markets around the world. And Hemogenics grew by 25%. In perioperative bleeding, competition in the US continues to impact Cosentra pricing, although we are seeing the rate of decline beginning to moderate.

Speaker #3: On portfolio execution, underlying IG demand remained robust. As I mentioned, our US and China field force investments are beginning to show progress. Albumin volume growth in China has stabilized, although market value remains under pressure.

Gordon Naylor: On portfolio execution, underlying IG demand remains robust. As I mentioned, our US and China field force investments are beginning to show progress. Albumin volume growth in China has stabilized, although market value remains under pressure. ANDEMBRY has exceeded our initial launch expectations, and the phase III trial for the VarmX candidate has commenced with the first patient expected in the very near future. We also licensed clazakizumab to Eli Lilly and Company for indications other than for cardiovascular events in people with end-stage kidney disease. That transaction allows the program to benefit from Lilly's development capabilities while enabling CSL to focus its resources on those opportunities where we are best placed to create value. We are aware of a trial evaluating a similar antibody that recently failed its primary endpoint.

Gordon Naylor: As I mentioned, our US and China field force investments are beginning to show progress. Albumin volume growth in China has stabilized, although market value remains under pressure. ANDEMBRY has exceeded our initial launch expectations, and the phase III trial for the VarmX candidate has commenced with the first patient expected in the very near future. We also licensed clazakizumab to Eli Lilly and Company for indications other than for cardiovascular events in people with end-stage kidney disease. That transaction allows the program to benefit from Lilly's development capabilities while enabling CSL to focus its resources on those opportunities where we are best placed to create value. We are aware of a trial evaluating a similar antibody that recently failed its primary endpoint. Given the population differences, we do not view the ZEUS results to be necessarily predictive of the outcome of our study, which continues.

Speaker #3: And Denbury has exceeded our initial launch expectations, and the phase three trial for the Varmix candidate has commenced, with the first patient expected in the very near future.

Speaker #3: We also licensed Clozacizumab to Eli Lilly for indications other than for cardiovascular events, in people with end-stage kidney disease. That transaction allows the program to benefit from Lilly's development capabilities, while enabling CSL to focus its resources on those opportunities where we are best placed to create value.

Speaker #3: We are aware of a trial evaluating a similar antibody that recently failed its primary endpoint. Given the population differences, we do not view the Zeus results as necessarily predictive of the outcome of our study.

Gordon Naylor: Given the population differences, we do not view the ZEUS results to be necessarily predictive of the outcome of our study, which continues. Now, moving to the operational side of the business. CSL is the global leader in plasma collection. We have a large and highly productive network, deep operational knowledge, and a long history of collecting safe, high-quality plasma. This has always been foundational to CSL Behring success, supporting both margin structure and competitiveness. On my first day as CEO, I appointed Steve Marlow, who heads CSL Plasma, to the global leadership team. This was to ensure that this part of the group received the appropriate focus. Underperforming centers have been closed, with plasma collections shifting to more efficient ones.

Speaker #3: Which continues. Now, moving to the operational side of the business: CSL is the global leader in plasma collection. We have a large and highly productive network, deep operational knowledge, and a long history of collecting safe, high-quality plasma.

Gordon Naylor: Now, moving to the operational side of the business. CSL is the global leader in plasma collection. We have a large and highly productive network, deep operational knowledge, and a long history of collecting safe, high-quality plasma. This has always been foundational to CSL Behring success, supporting both margin structure and competitiveness. On my first day as CEO, I appointed Steve Marlow, who heads CSL Plasma, to the global leadership team. This was to ensure that this part of the group received the appropriate focus. Underperforming centers have been closed, with plasma collections shifting to more efficient ones. We are also pursuing the next wave of plasma innovation by reducing unnecessary sources of process variance, reducing unit supply costs, and optimizing labor productivity through sophisticated donor scheduling and improved workflows. Better digital engagement with donors is expected to yield more personalized donor communication and improve the donor experience.

Speaker #3: This has always been foundational to Behring's success, supporting both margin structure and competitiveness. On my first day as CEO, I appointed Steve Marlow, who heads CSL Plasma, to the global leadership team.

Speaker #3: This was to ensure that this part of the group received appropriate focus. Underperforming centers have been closed, with plasma collections shifting to more efficient ones.

Speaker #3: We are also pursuing the next wave of plasma innovation by reducing unnecessary sources of processed variants, lowering unit supply costs, and optimizing labor productivity through sophisticated donor scheduling and improved workflows.

Gordon Naylor: We are also pursuing the next wave of plasma innovation by reducing unnecessary sources of process variance, reducing unit supply costs, and optimizing labor productivity through sophisticated donor scheduling and improved workflows. Better digital engagement with donors is expected to yield more personalized donor communication and improve the donor experience. Given the information-intensive nature of this business, there is fertile ground for our AI applications, an area which we are pursuing rigorously. We have been a leader in driving innovation across the industry. Continuing with that intent, we are transitioning a portion of our US plasma centers to the latest generation Haemonetics plasmapheresis platform. On the manufacturing side, our yield initiatives are progressing. Planning for the Horizon 2 clinical studies continues, and construction of the Kankakee IG facility has commenced. Turning to CSL Vifor. Revenue was $2.4 billion, an increase of 3%.

Speaker #3: Better digital engagement with donors is expected to yield more personalized donor communication and improve the donor experience. Given the information-intensive nature of this business, there is fertile ground for AI applications.

Gordon Naylor: Given the information-intensive nature of this business, there is fertile ground for our AI applications, an area which we are pursuing rigorously. We have been a leader in driving innovation across the industry. Continuing with that intent, we are transitioning a portion of our US plasma centers to the latest generation Haemonetics plasmapheresis platform. On the manufacturing side, our yield initiatives are progressing. Planning for the Horizon 2 clinical studies continues, and construction of the Kankakee IG facility has commenced. Turning to CSL Vifor. Revenue was $2.4 billion, an increase of 3%. However, that headline result does not reflect the more recent underlying trajectory of the portfolio. Dialysis revenue grew by 18%, largely as a result of the temporary benefit from Velphoro's inclusion in the US TDAPA reimbursement arrangement.

Speaker #3: This is an area which we are pursuing rigorously. We have been a leader in driving innovation across the industry. Continuing with that intent, we are transitioning a portion of our US plasma centers to the latest-generation Haemonetics plasmapheresis platform.

Speaker #3: On the manufacturing side, our yield initiatives are progressing. Planning for the Horizon 2 clinical studies continues, and construction of the Canker Quay IG facility has commenced.

Speaker #3: Turning to CSL V4. Revenue was $2.4 billion, an increase of 3%. However, that headline result does not reflect the more recent underlying trajectory of the portfolio.

Gordon Naylor: However, that headline result does not reflect the more recent underlying trajectory of the portfolio. Dialysis revenue grew by 18%, largely as a result of the temporary benefit from Velphoro's inclusion in the US TDAPA reimbursement arrangement. Although this arrangement will cease on 31 December this year, we have and will continue to experience an early decline in revenue and margin ahead of that date. Within non-dialysis nephrology, FILSPARI achieved strong patient uptake in its launch markets, while VELTASSA grew through new market entry. The iron portfolio declined by 16% as generic competition intensified in both Europe and the United States. These portfolio dynamics are central to the outlook for CSL Vifor and to the impairments recognized in the result. I want to take a moment to go into these in more detail. There are significant headwinds facing CSL Vifor.

Speaker #3: Dialysis revenue grew by 18%, largely as a result of the temporary benefit from Valpurgo's inclusion in the US to DAPA reimbursement arrangement. Although this arrangement will cease on December 31 this year, we have and will continue to experience an early decline in revenue and margin ahead of that date.

Gordon Naylor: Although this arrangement will cease on 31 December this year, we have and will continue to experience an early decline in revenue and margin ahead of that date. Within non-dialysis nephrology, FILSPARI achieved strong patient uptake in its launch markets, while VELTASSA grew through new market entry. The iron portfolio declined by 16% as generic competition intensified in both Europe and the United States. These portfolio dynamics are central to the outlook for CSL Vifor and to the impairments recognized in the result. I want to take a moment to go into these in more detail. There are significant headwinds facing CSL Vifor. These are structural and will materially affect the earnings profile of the business over FY27. Injectafer is now competing against generic entrants in the United States. The European iron portfolio has been in this position for over a year now and continues to experience substantial price erosion.

Speaker #3: Within non-dialysis nephrology, Philspari achieved strong patient uptake in its launch markets, while Veltassa grew through new market entry. The iron portfolio declined by 16%, as generic competition intensified in both Europe and the United States.

Speaker #3: These portfolio dynamics are central to the outlook for V4 and to the impairments recognized in the result. So I want to take a moment to go into these in more detail.

Speaker #3: There are significant headwinds facing V4. These are structural and will materially affect the earnings profile of the business over FY27. Injectafer is now competing against generic entrants in the United States.

Gordon Naylor: These are structural and will materially affect the earnings profile of the business over FY27. Injectafer is now competing against generic entrants in the United States. The European iron portfolio has been in this position for over a year now and continues to experience substantial price erosion. As I mentioned, Velphoro will lose the benefit of TDAPA at the end of calendar 2026, and we believe sales will decline substantially from their recent highs. This is factored into our forward guidance. In addition, the European Commission has adopted the decision to revoke the marketing authorization for TAVNEOS in Europe. While we are disappointed in this decision, we respect the outcome of the regulatory process. Patient care remains our highest priority, and we are working closely with health authorities to provide clear information to patient communities and healthcare providers on next steps. Taken together, these factors create a considerable portfolio headwind.

Speaker #3: The European iron portfolio has been in this position for over a year now, and continues to experience substantial price erosion. As I mentioned, Valpurgo will lose the benefit of DAPA at the end of calendar 2026, and we believe sales will decline substantially from their recent highs.

Gordon Naylor: As I mentioned, Velphoro will lose the benefit of TDAPA at the end of calendar 2026, and we believe sales will decline substantially from their recent highs. This is factored into our forward guidance. In addition, the European Commission has adopted the decision to revoke the marketing authorization for TAVNEOS in Europe. While we are disappointed in this decision, we respect the outcome of the regulatory process. Patient care remains our highest priority, and we are working closely with health authorities to provide clear information to patient communities and healthcare providers on next steps. Taken together, these factors create a considerable portfolio headwind. We are taking mitigating actions. The commercial and medical organizations of CSL Vifor and CSL Behring have been integrated. This has enabled us to combine management structures, remove duplicated regional and country-level activities, and deploy resources across the combined portfolio more effectively.

Speaker #3: This is factored into our forward guidance. In addition, the European Commission has adopted the decision to revoke the marketing authorization for Tavneos in Europe.

Speaker #3: While we are disappointed in this decision, we respect the outcome of the regulatory process. Patient care remains our highest priority, and we are working closely with health authorities to provide clear information to patient communities and healthcare providers on next steps.

Speaker #3: Taken together, these factors create a considerable portfolio headwind. We are taking mitigating actions. The commercial and medical organizations of V4 and BEHRING have been integrated.

Gordon Naylor: We are taking mitigating actions. The commercial and medical organizations of CSL Vifor and CSL Behring have been integrated. This has enabled us to combine management structures, remove duplicated regional and country-level activities, and deploy resources across the combined portfolio more effectively. We are pursuing growth in FILSPARI and VELTASSA, and we are examining the portfolio with a disciplined approach to return on investment. None of these actions eliminate the headwinds, but they do mean that the business is actively adapting its cost structure, commercial model, and portfolio priorities. Turning to CSL Seqirus. CSL Seqirus continues to perform well as a sectoral leader, with the innovative product portfolio driving continuing market share gains. Revenue was USD 2 billion, down 8%, reflecting the non-recurrence of pre-pandemic sales associated with the avian influenza threat in FY25. Seasonal influenza revenue increased by 4%.

Speaker #3: This has enabled us to combine management structures, remove duplicated regional and country-level activities, and deploy resources across the combined portfolio more effectively. We are pursuing growth in Philspari and Veltasa, and we are examining the portfolio with a disciplined approach to return on investment.

Gordon Naylor: We are pursuing growth in FILSPARI and VELTASSA, and we are examining the portfolio with a disciplined approach to return on investment. None of these actions eliminate the headwinds, but they do mean that the business is actively adapting its cost structure, commercial model, and portfolio priorities. Turning to CSL Seqirus. CSL Seqirus continues to perform well as a sectoral leader, with the innovative product portfolio driving continuing market share gains. Revenue was USD 2 billion, down 8%, reflecting the non-recurrence of pre-pandemic sales associated with the avian influenza threat in FY25. Seasonal influenza revenue increased by 4%. The adjuvanted portfolio grew by 5%, and cell culture revenue also grew by 5%. As highlighted earlier, CSL Seqirus was the only global vaccine company to grow seasonal influenza revenue year-on-year.

Speaker #3: None of these actions eliminate the headwinds, but they do mean that the business is actively adapting its cost structure, commercial model, and portfolio priorities.

Speaker #3: Turning to CSL Securus. Securus continues to perform well as a sectoral leader, with the innovative product portfolio driving continuing market share gains. Revenue was $2 billion, down 8%, reflecting the non-recurrence of pre-pandemic sales associated with the avian influenza threat in FY25.

Speaker #3: Seasonal influenza revenue increased by 4%. The adjuvanted portfolio grew by 5%, and cell culture revenue also grew by 5%. As highlighted earlier, Seqirus was the only global vaccine company to grow seasonal influenza revenue year-on-year.

Gordon Naylor: The adjuvanted portfolio grew by 5%, and cell culture revenue also grew by 5%. As highlighted earlier, CSL Seqirus was the only global vaccine company to grow seasonal influenza revenue year-on-year. Since the business was established, it has grown seasonal influenza share in each year through product differentiation, manufacturing capability, and focused commercial execution. We are proud of this performance, which reflects a long-term strategy of differentiating the portfolio through cell-based and adjuvanted vaccines, supported by real-world evidence and targeted geographic expansion. The business gained traction in the US integrated delivery network and pediatric segments, despite a challenging overall US market. The final season of standard egg-based AFLURIA represents another step in the evolution of the portfolio towards enhanced vaccines. The differentiation strategy continues to drive outperformance and market share gains in the United States and Europe.

Speaker #3: Since the business was established, it has grown its seasonal influenza share each year through product differentiation, manufacturing capability, and focused commercial execution. We're proud of this performance, which reflects a long-term strategy of differentiating the portfolio through cell-based and adjuvanted vaccines, supported by real-world evidence and targeted geographic expansion.

Gordon Naylor: Since the business was established, it has grown seasonal influenza share in each year through product differentiation, manufacturing capability, and focused commercial execution. We are proud of this performance, which reflects a long-term strategy of differentiating the portfolio through cell-based and adjuvanted vaccines, supported by real-world evidence and targeted geographic expansion. The business gained traction in the US integrated delivery network and pediatric segments, despite a challenging overall US market. The final season of standard egg-based AFLURIA represents another step in the evolution of the portfolio towards enhanced vaccines. The differentiation strategy continues to drive outperformance and market share gains in the United States and Europe. Germany completed a successful first season, and we entered France with enhanced recommendations for FLUAD. We have also secured a PAHO agreement that provides a platform for market and volume expansion in South America.

Speaker #3: The business gained traction in the US integrated delivery network and pediatric segments, despite a challenging overall US market. The final season of standard egg-based to fluoro represents another step in the evolution of the portfolio towards enhanced vaccines.

Speaker #3: The differentiation strategy continues to drive outperformance and market share gains in the United States and Europe. Germany completed a successful first season, and we entered France with enhanced recommendations for fluoroid.

Gordon Naylor: Germany completed a successful first season, and we entered France with enhanced recommendations for FLUAD. We have also secured a PAHO agreement that provides a platform for market and volume expansion in South America. Our adjuvanted cell-based vaccine, Algenflu, has been approved in the UK and received a positive recommendation from the European Medicines Agency's CHMP. The operation of separation of Seqirus is now complete, which was achieved on a cost-neutral basis. The business has appropriate operating autonomy while continuing to benefit from selected CSL group capabilities and governance. We are now comfortable with where Seqirus sits in relation to the group's corporate structure, with no plans to undertake a demerger in the near term. Although we are preserving optionality for a demerger if it would create incremental shareholder value.

Speaker #3: We have also secured a PAHO agreement that provides a platform for market and volume expansion in South America. Our adjuvanted cell-based vaccine, Algenflu, has been approved in the UK and received a positive recommendation from the European Medicines Agency's CHMP.

Gordon Naylor: Our adjuvanted cell-based vaccine, Algenflu, has been approved in the UK and received a positive recommendation from the European Medicines Agency's CHMP. The operation of separation of Seqirus is now complete, which was achieved on a cost-neutral basis. The business has appropriate operating autonomy while continuing to benefit from selected CSL group capabilities and governance. We are now comfortable with where Seqirus sits in relation to the group's corporate structure, with no plans to undertake a demerger in the near term. Although we are preserving optionality for a demerger if it would create incremental shareholder value. The Tullamarine facility is now open and will support the move toward a fully differentiated portfolio, part of which is the expansion of our cell-based pandemic offering that has already yielded new agreements in Canada, New Zealand, and Australia.

Speaker #3: The operation of separation of Securus is now complete, which was achieved on a cost-neutral basis. The business has appropriate operating autonomy, while continuing to benefit from selected CSL Group capabilities and governance.

Speaker #3: We're now comfortable with where Securus sits in relation to the group's corporate structure, with no plans to undertake a demerger in the near term, although we are preserving optionality for a demerger if it would create incremental shareholder value.

Speaker #3: The Telomere facility is now open and will support the move toward a fully differentiated portfolio, part of which is the expansion of our cell-based pandemic offering that has already yielded new agreements in Canada, New Zealand, and Australia.

Gordon Naylor: The Tullamarine facility is now open and will support the move toward a fully differentiated portfolio, part of which is the expansion of our cell-based pandemic offering that has already yielded new agreements in Canada, New Zealand, and Australia. Seqirus is increasingly positioned around differentiated products, targeted customer segments, and selected markets where its technology and real-world evidence can support sustainable value. I will now hand over to Ken to take you through the financial result in more detail.

Speaker #3: CSL is increasingly—sorry, Seqirus is increasingly positioned around differentiated products, targeted customer segments, and selected markets where its technology and real-world evidence can support sustainable value.

Gordon Naylor: Seqirus is increasingly positioned around differentiated products, targeted customer segments, and selected markets where its technology and real-world evidence can support sustainable value. I will now hand over to Ken to take you through the financial result in more detail.

Speaker #3: I'll now hand over to Ken to take you through the financial results in more detail.

Speaker #1: Thank you, Gordon, and good morning, everyone. Starting with the financial highlights for FY26, I'll walk through the P&L, focusing on reported numbers and changes expressed in constant currency.

Ken Lim: Thank you, Gordon, and good morning, everyone. Starting with the financial highlights for FY2026, I will walk through the P&L, focusing on reported numbers and changes expressed in constant currency. Total revenue for the group was $15.8 billion, down 1%. Gross profit was $8.5 billion, down 2%, and the group operating result was $6.8 billion, down 3%. In research and development, we made strong progress on our restructuring initiatives, with R&D expenses down 13% to $1.2 billion, while still investing in attractive development programs such as the VarmX phase III trial. General and admin costs were also down by 13%, benefiting from our cost management initiatives and organizational simplification. Net interest was relatively flat, with our gearing finishing the year at 1.8 times within our target range after executing a share buyback of AUD 1 billion. NPATA before restructuring and impairments was $3.1 billion, down 2%.

Speaker #1: Total revenue for the group was $15.8 billion, down 1%. Gross profit was $8.5 billion, down 2%, and the group operating result was $6.8 billion, down 3%.

Speaker #1: In research and development, we made strong progress on our restructuring initiatives, with R&D expenses down 13% to $1.2 billion, while still investing in attractive development programs such as the VIMEX Phase 3 trial.

Speaker #1: General and admin costs were also down by 13%, benefiting from our cost management initiatives and organizational simplification. Net interest was relatively flat, with our gearing finishing the year at 1.8 times, within our target range after executing a share buyback of $1 billion Australian dollars.

Speaker #1: NPAT-A, before restructuring and impairments, was $3.1 billion, down 2%. I'll go into more detail on the restructuring and impairments shortly. Group underlying NPAT, which is the bottom line earnings metric we will be focusing on going forward, was $2.8 billion, down 3%, before restructuring and impairment charges.

Ken Lim: I will go into more detail on the restructuring and impairments shortly. Group underlying NPAT, which is the bottom line earnings metric we will be focusing on going forward, was $2.8 billion, down 3% before restructuring and impairment charges. Our underlying effective tax rate was 19.1%. NPAT on a statutory basis after restructuring and impairments was a loss of $2.6 billion. Cash flow from operations was strong at $3.5 billion, and we maintained our final dividend in US dollars at $1.62 per share, taking the full-year dividend to $2.92 per share. Turning to the next slide, the table provides a bridge from NPAT-A to underlying NPAT, and then to statutory NPAT attributable to CSL shareholders. As I noted earlier, our FY2026 NPAT-A was $3.1 billion. From NPAT-A, we deduct the post-tax amortization of acquired intellectual property, which was $322 million in FY2026.

Speaker #1: Our underlying effective tax rate was 19.1%. NPAT, on a statutory basis—after restructuring and impairments—was a loss of $2.6 billion. Cash flow from operations was strong at $3.5 billion, and we maintained our final dividend in US dollars at $1.62 per share, taking the full-year dividend to $2.92 per share.

Speaker #1: Turning to the next slide, the table provides a bridge from NPAT-A to underlying NPAT and then to statutory NPAT, attributable to CSL shareholders. As I noted earlier, our FY26 NPAT-A was $3.1 billion.

Speaker #1: From NPAT-A, we deduct the post-tax amortization of acquired intellectual property, which was $322 million in FY26. We then adjust for the share of amortization that is attributable to non-controlling interests.

Ken Lim: We then adjust for the share of amortization that is attributable to non-controlling interests. That takes us to underlying NPAT attributable to CSL shareholders of $2.8 billion. This reflects the operating performance of the business after IP amortization, but before the restructuring and impairments recognized during FY2026. To get from underlying NPAT to statutory NPAT, we deduct post-tax restructuring and impairment expenses of $6 billion and then add back the portion of those impairment expenses attributable to non-controlling interests. This results in statutory NPAT attributable to CSL shareholders of a loss of $2.6 billion. Turning to the segment results. Behring revenue was $11.4 billion, down 1% at constant currency. Gross profit declined by 2% and gross margin declined by 70 basis points. The gross margin result reflects product and geographic mix, the US IG channel inventory normalization, and continued pressure in albumin.

Speaker #1: That takes us to underlying NPAT, attributable to CSL shareholders, of $2.8 billion. This reflects the operating performance of the business after IP amortization, but before the restructuring and impairments recognized during FY26.

Speaker #1: To get from underlying NPAT to statutory NPAT, we deduct post-tax restructuring and impairment expenses of $6 billion, and then add back the portion of those impairment expenses attributable to non-controlling interests.

Speaker #1: This results in statutory NPAT, attributable to CSL shareholders, of a loss of $2.6 billion. Turning to the segment results, Behring revenue was $11.4 billion, down 1% at constant currency.

Speaker #1: Gross profit declined by 2%, and gross margin declined by 70 basis points. The gross margin result reflects product and geographic mix, the USIG channel inventory normalization, and continued pressure in albumen.

Speaker #1: These impacts were partly offset by further improvement in plasma collection costs and manufacturing efficiency. Sales and marketing expense in Behring increased by 8%, reflecting the deliberate commercial investments Gordon discussed, including field force expansion in the US and China, and support for NDEMBRY.

Ken Lim: These impacts were partly offset by further improvement in plasma collection costs and manufacturing efficiency. Sales and marketing expense in Behring increased by 8%, reflecting the deliberate commercial investments Gordon discussed, including field force expansion in the US and China and support for ANDEMBRY. For Vifor, revenue increased by 3%, with gross profit also increasing by 3%. Vifor's operating result increased by 11% as we continue to take out operating costs. I previously foreshadowed that from FY2027 onwards, we will be updating our segment disclosures, including the separation of Seqirus down to segment EBIT. Although Behring and Vifor have been integrated across commercial and medical affairs, our intention is to continue to report them separately down to gross profit in order to maintain visibility over the distinct revenue and profit drivers of the two businesses.

Speaker #1: For V4, revenue increased by 3%, with gross profit also increasing by 3%. V4's operating result increased by 11% as we continue to take out operating costs.

Speaker #1: I previously foreshadowed that from FY27 onwards, we'll be updating our segment disclosures, including the separation of Securus down to segment EBIT. Although Bearing and V4 have been integrated across Commercial and Medical Affairs, our intention is to continue to report them separately down to gross profit in order to maintain visibility over the distinct revenue and profit drivers of the two businesses.

Speaker #1: Bearing and V4 will be treated as a single segment for reporting sales and marketing, R&D, and general and administrative costs. Turning to Securus, revenue was down 8%, with gross profit down 9%, and the operating result down by 12%.

Ken Lim: Behring and Vifor will be treated as a single segment for reporting sales and marketing, R&D, and general and admin costs. Turning to Seqirus, revenue was down 8%, with gross profit down 9% and the operating result down by 12%. While Seqirus' seasonal influenza vaccines revenue was up 4%, its overall result for the year was lower due to the non-recurring revenue from avian flu sales that were recognized in FY2025. Sales and marketing costs increased by 8%, reflecting the launches into new markets such as Germany and France. We made strong progress on our transformation program. In FY2026, we reported total restructuring costs of $799 million, of which $339 million was cash. We delivered $176 million of savings ahead of the $100 million target we set for the year. The majority of the savings were generated across R&D, commercial and medical, and operations.

Speaker #1: While Securus's seasonal influenza vaccine revenue was up 4%, its overall result for the year was lower due to the non-recurring revenue from avian flu sales that were recognized in FY25.

Speaker #1: Sales and marketing costs increased by 8%, reflecting the launches into new markets such as Germany and France. We made strong progress on our transformation program.

Speaker #1: In FY26, we reported total restructuring costs of $799 million, of which $339 million was cash. We delivered $176 million of savings, ahead of the $100 million target we set for the year.

Speaker #1: The majority of the savings were generated across R&D, Commercial and Medical, and Operations. In FY27, we expect incremental savings of approximately $220 million, taking the annualized savings to approximately $400 million—and then growing to up to $550 million in FY28.

Ken Lim: In FY2027, we expect incremental savings of approximately $220 million, taking the annualized savings to approximately $400 million, and then growing to up to $550 million in FY2028. We are taking a disciplined approach to reinvesting a portion of these savings into high-priority growth opportunities. In FY2026, $30 million was reinvested in commercial initiatives, principally to support execution in Behring. We also invested $50 million in R&D to support the VarmX candidate. In FY2027, we expect to reinvest around half of the incremental savings into commercial initiatives and progressing our clinical development program. As foreshadowed in May, we are reporting pre-tax non-cash impairments of $5.5 billion in the H2 of FY2026, which together with the impairments recorded in the H1, equates to total pretax impairments of $7.1 billion for the full year.

Speaker #1: We're taking a disciplined approach to reinvesting a portion of these savings into high-priority growth opportunities. In FY26, $30 million was reinvested in commercial initiatives, principally to support execution in Behring.

Speaker #1: We also invested $50 million in R&D to support the Vimex candidate. In FY27, we expect to reinvest around half of the incremental savings into commercial initiatives and progressing our clinical development program.

Speaker #1: As foreshadowed in May, we're reporting pre-tax non-cash impairments of $5.5 billion in the second half of FY26, which together with the impairments recorded in the first half, equates to total pre-tax impairments of $7.1 billion for the full year.

Speaker #1: The largest component of the second-half impairments relates to V4, where we have impaired products and goodwill by $4.1 billion. This reflects changing market dynamics, which Gordon has discussed.

Ken Lim: The largest component of the H2 impairments relates to Vifor, where we have impaired products and goodwill by $4.1 billion. This reflects changing market dynamics, which Gordon has discussed, including increased generic competition, the conclusion of the TDAPA period for Velphoro, and the revocation of the marketing authorization for TAVNEOS. The balance of the H2 impairment relates to property, plant, and equipment, in particular, our facility in Lengnau, Switzerland. This impairment relates to a portion of the site that had been set up to support third-party contract manufacturing activities. Further detail on the impairment is set out in Appendix C of the investor materials. Turning to the next slide, we are taking a disciplined approach to how we invest CapEx across our network. In FY2026, our CapEx was $766 million.

Speaker #1: Including increased generic competition, the conclusion of the TDAPA period for Velforo, and the revocation of the marketing authorization for Tavneos. The balance of the second-half impairment relates to property, plant and equipment, in particular our facility in Lengnau, Switzerland.

Speaker #1: This impairment relates to a portion of the site that had been set up to support third-party contract manufacturing activities. Further detail on the impairments is set out in Appendix C materials.

Speaker #1: Turning to the next slide, we're taking a disciplined approach to how we invest capex across our network. In FY26, our capex was $766 million.

Speaker #1: As can be seen from the chart, our CapEx has come down in recent years following a period of significant investment as we expanded capacity across the network to meet increasing demand for our products.

Ken Lim: As can be seen from the chart, our CapEx has come down in recent years, following a period of significant investment as we expanded capacity across the network to meet increasing demand for our products. Moving forward, we expect our CapEx over the medium term to increase, driven by the Horizon 2 investment we are making at our site in Kankakee. For FY2027, we anticipate CapEx to be around $1 billion, plus or minus $100 million. Moving now to our balance sheet. Our operating cash flow continues to support a strong and flexible balance sheet, with capacity to support investment in growth opportunities, while also providing cash returns to shareholders. During FY2026, we completed a buyback of AUD 1 billion, and in FY2027, we intend to undertake a further buyback of approximately AUD 1.1 billion. At year-end, net debt to EBITDA was 1.8x.

Speaker #1: Moving forward, we expect our capex over the medium term to increase, driven by the Horizon 2 investment we're making at our site in Kankakee.

Speaker #1: For FY27, we anticipate capex to be around $1 billion, plus or minus $100 million. Moving now to our balance sheet, our operating cash flow continues to support a strong and flexible balance sheet, with capacity to support investment in growth opportunities while also providing cash returns to shareholders.

Speaker #1: During FY26, we completed a buyback of $1 billion Australian dollars, and in FY27, we intend to undertake a further buyback of approximately $1.1 billion Australian dollars.

Speaker #1: At year-end, net debt to EBITDA was 1.8 times. We also maintained the full-year dividend in US dollars. Our capital allocation priorities remain clear. We'll support the business to invest in growth opportunities that meet our strict return criteria.

Ken Lim: We have also maintained the full-year dividend in US dollars. Our capital allocation priorities remain clear. We will support the business through investment in growth opportunities that meet our strict return criteria. We will continue to maintain a strong balance sheet, targeting net debt to EBITDA in a range of 1.5x to 2x. Finally, we will continue to return excess capital to shareholders, where that represents the most attractive use of our cash flow. I will now hand back to Gordon to cover the outlook.

Speaker #1: We'll continue to maintain a strong balance sheet, targeting net debt to EBITDA in a range of 1.5 to 2 times. And finally, we'll continue to return excess capital to shareholders where that represents the most attractive use of our cash flow.

Speaker #1: I'll now hand back to Gordon to cover the outlook.

Speaker #2: Thanks, Ken. FY26 was a difficult year, and the result includes substantial accounting consequences from past decisions and investments. We've not sought to minimize those issues, but to address them.

Gordon Naylor: Thanks, Ken. FY2026 was a difficult year, and the result includes substantial accounting consequences from past decisions and investments. We have not sought to minimize those issues, but to address them. Considerable work remains, but the company is now simpler and focused on execution. Commercial initiatives in Behring are beginning to show progress, and Seqirus continues to gain share in seasonal influenza vaccines. At the same time, Vifor faces significant and unavoidable portfolio headwinds, and these will continue to affect group growth. For FY2027, we expect Behring to deliver mid-single-digit revenue growth. IG is expected to grow in line with the market at mid to high single-digit rate. The commercial initiatives implemented during FY2026 are expected to support improved execution. We expect continued strong uptake of ANDEMBRY and consistent uptake of HEMGENIX.

Speaker #2: Considerable work remains, but the company is now simpler and focused on execution. Commercial initiatives in Behring are beginning to show progress, and Seqirus continues to gain share.

Speaker #2: In seasonal influenza vaccines. At the same time, V4 faces significant and unavoidable portfolio headwinds, and these will continue to affect group growth. For FY27, we expect Behring to deliver mid-single-digit revenue growth.

Speaker #2: IGs are expected to grow in line with the market, at a mid- to high single-digit rate. The commercial initiatives implemented during FY26 are expected to support improved execution.

Speaker #2: We expect continued strong uptake of Andembri and consistent uptake of Hamgenics. We also anticipate a modest improvement in Behring's gross margin, driven by plasma cost efficiency, manufacturing initiatives, and portfolio mix.

Gordon Naylor: We also anticipate a modest improvement in Behring's gross margin, driven by plasma cost efficiency, manufacturing initiatives, and portfolio mix. CSL Vifor will face significant headwinds, with revenue declining by around 25%. These headwinds include continued generic competition in iron and the conclusion of the Velphoro TDAPA period. With the EU decision to revoke the marketing authorization for TAVNEOS, we have no sales for TAVNEOS in FY27 guidance. The CSL Vifor cost base is being adjusted accordingly, but the scale of the revenue decline means the business will remain a material headwind to group performance. For CSL Seqirus, we expect low single-digit revenue growth. The business should benefit from momentum in newer markets and targeted customer segments. Ex-US influenza immunization rates have stabilized, and the rate of decline in the US is slowing. At the group level, the transformation program will deliver further cost savings in FY27.

Speaker #2: V4 will face significant headwinds, with revenue declining by around 25%. These headwinds include continued generic competition in iron, and the conclusion of the Velforo TDAPA period.

Speaker #2: With the EU decision to revoke the marketing authorization for Tavneos, we have no sales for Tavneos in FY27 guidance. The V4 cost base is being adjusted accordingly.

Speaker #2: But the scale of the revenue decline means the business will remain a material headwind to group performance. For Securis, we expect low single-digit revenue growth.

Speaker #2: The business should benefit from momentum in newer markets and targeted customer segments. Ex-US influenza immunization rates have stabilized, and the rate of decline in the US is slowing.

Speaker #2: At the group level, the transformation program will deliver further cost savings in FY27. We will reinvest a portion of those savings in opportunities that meet our strict return criteria, principally within the core bearing franchise.

Gordon Naylor: We will reinvest a portion of those savings in opportunities that meet our strict return criteria, principally within the core Behring franchise. For FY27, we expect group revenue to be broadly in line with FY26 on a constant currency basis. We expect NPAT growth, excluding the restructuring impairment items, of approximately 5% at constant currency. At current exchange rates, we estimate an FY27 foreign exchange headwind of approximately $50 million, should those rates remain unchanged for the balance of the financial year. The board has authorized a new share buyback of 1.1 billion Australian dollars. The actions taken during FY26 have re-established the foundation. Our focus in FY27 is to maintain momentum and demonstrate measurable progress. I will now hand back to Michelle to take your questions.

Speaker #2: For FY27, we expect group revenue to be broadly in line with FY26 on a constant currency basis. We expect NPAT growth, excluding the restructuring impairment items, of approximately 5% at constant currency.

Speaker #2: At current exchange rates, we estimate an FY27 foreign exchange headwind of approximately $50 million, should those rates remain unchanged for the balance of the financial year.

Speaker #2: The board has authorized a new share buyback of A$1.1 billion. The actions taken during FY26 have reestablished the foundation. Our focus in FY27 is to maintain momentum and demonstrate measurable progress.

Speaker #2: I'll now hand back to Michelle to take your questions.

Speaker #3: Thank you, Gordon and Ken. The line is now open for questions to Gordon, Ken, and Diego. To allow as many participants as possible to ask a question, please limit your questions to two.

Michelle Rees: Thank you, Gordon and Ken. The line is now open for questions to Gordon, Ken, and Diego. To allow as many participants as possible to ask a question, please limit your questions to two. If you have a further question, you are welcome to rejoin the queue. I will now hand over to the operator.

Speaker #3: If you have a further question, you are welcome to rejoin the queue. I'll now hand over to the operator.

Speaker #4: Thank you. Once again, if you wish to ask a question, you may press star and then one on your telephones, and wait for your name to be announced.

Operator: Thank you. Once again, if you wish to ask a question, you may press star and then 1 on your telephones and wait for your name to be announced. If you wish to cancel your request, you may press star and 2. If you are on a speakerphone, we ask that you please pick up the handset to ask your questions. Our first question today comes from David Low from UBS. Please go ahead with your question.

Speaker #4: If you wish to cancel your request, you may press star and two. If you are on a speakerphone, we ask that you please pick up the handset to ask your questions.

Speaker #4: Our first question today comes from David Lowe from UBS. Please go ahead with your question.

Speaker #5: Thank you. Thanks for taking my question. If we could just start with the bearing gross margin expectations, could I get you to talk through a little bit about what the drivers are there?

David Low: Thank you. Thanks for taking my question. If we could just start with the Behring gross margin expectations, can I get you to talk through a little bit what the drivers are there? One of the observations I'd make is that the one-off contribution was quite a significant benefit in FY2026. If I could throw into the same question some commentary about last liter economics, given what's happened with albumin, please.

Speaker #5: I mean, one of the observations I'd make is that the one-off contribution was quite a significant benefit in FY26. And if I could throw into the same question some commentary about last leader economics, given what's happened with albumin, please.

Speaker #6: Sure. Thanks, David. It's Ken. So, in FY26, as I mentioned before, the bearing gross margin contracted by about 70 basis points. Underlying that outcome were benefits that we continue to generate with efficiency gains in plasma collection and manufacturing.

Ken Lim: Sure. Thanks, David. It's Ken. In FY2026, as I mentioned before, the Behring gross margin contracted by about 70 basis points. Underlying that outcome was benefits that we continue to generate with efficiency gains in plasma collection and manufacturing, and that continues into FY2027. Given the top-line result that we reported in Behring in FY2026, that's where we had some headwinds, which led to the margin contraction. Looking forward into 2027, we'll see the same efficiency benefits continue to play through, with the portfolio now supporting some margin growth into 2027. Our objective is to gain back roughly the 70 basis points that we lost in FY2026. In relation to your question about balance liters, the first comment I'd make is that we are seeing volumes in China albumin starting to stabilize, so that's encouraging.

Speaker #6: And that continues into FY27, given the top-line result that we reported in Behring in FY26. That's where we had some headwinds, which led to the margin contraction.

Speaker #6: Looking forward into '27, we'll see the same efficiency benefits continue to play through, with the portfolio now supporting some margin growth into '27. Our objective is to gain back roughly the 70 basis points that we lost in FY26.

Speaker #6: In relation to your question about balance, leaders, the first comment I'd make is that we are seeing volumes in China albumin starting to stabilize.

Speaker #6: So that's encouraging. And then, ultimately, it's a question of how we are able to balance the mix between IG and albumin in order to grow margins.

Ken Lim: Ultimately, it's a question of how we are able to balance the mix between IG and albumin in order to grow margins. We've taken into account all of those dynamics in the guidance which we've given today, including the modest gross margin expansion in Behring.

Speaker #6: And we've taken into account all of those dynamics in the guidance, which we've given today, including the modest gross margin expansion in Behring.

Speaker #5: Okay. Thank you for that. Look, my other question, just to switch to Hamgenetics new equipment, sort of could you go just a little bit of a insight as to why that switch is being made, and what it means for the relationship or the current usage of the Rika device, please?

David Low: Okay. Thank you for that. With my other question, just the switch to Haemonetics' new equipment, could you give just a little bit of insight as to why the switch is being made and what it means for the relationship or the current usage of the RECA device, please?

Speaker #2: Oh, hey David, it's Gordon. So I guess the context here is the focus upon productivity and efficiency in plasma, and so we have quite a number of initiatives that Steve and I are looking at to drive that.

Gordon Naylor: Hey, Dave, it's Gordon. I guess the context here is the focus upon productivity and efficiency in plasma. We have quite a number of initiatives that Steve and I are looking at to drive that, and it's strategically quite important to us. One of those is the machine, where we have agreed with Haemonetics to transition a portion of the fleet over to explore that platform, as we look for new frontiers to further improve the productivity of that operation.

Speaker #2: And it's strategically quite important to us. So, one of those is the machine. We've agreed with Hamgenetics to transition a portion of the fleet over to explore that platform.

Speaker #2: As we look for new frontiers to further improve the productivity of that operation.

Speaker #5: Okay. Thank you very much.

David Low: Okay. Thank you very much.

Speaker #4: Our next question comes from Andrew Goodsall from MST Marquee. Please go ahead with your question.

Operator: Our next question comes from Andrew Goodsall from MST Marquee. Please go ahead with your question.

Speaker #6: Oh, good morning. Thanks very much for taking my questions. Just switching over to some queries—just a bit forward-looking. Obviously, you've got two products in the market now: Fluid and FluSolvex.

Andrew Goodsall: Good morning, and thanks very much for taking my questions. Just switching over to Seqirus, just a bit forward-looking. Obviously, you've got two products in the market now, FLUAD and FLUCELVAX. Just trying to understand how you see the landscape just with those two products. We think you've taken a bit of price increase. Certainly can see that in the US. Just with Moderna's recent approvals, just if you can sort of pull that together for your outlook.

Speaker #6: Just trying to understand how you see the landscape with just those two products. Thinking of taking a bit of a price increase—certainly can see that in the US.

Speaker #6: And just with Moderna's recent approvals, could you pull that together for your outlook?

Speaker #2: We had a bit of—we had a bit of trouble understanding.

Gordon Naylor: We had a bit of trouble understanding.

Speaker #6: What were the products that you mentioned? The line's not great.

Ken Lim: What were the products that you mentioned?

Gordon Naylor: Yeah, go on. The line's not great.

Speaker #5: Do you want me to repeat that a bit slower?

Andrew Goodsall: Do you want me to repeat a bit slower?

Speaker #6: Yeah, we'll try our luck. Andrew, could you please repeat the question for us? We just had a poor line, that's all.

Gordon Naylor: Yeah, we will try our luck. Andrew, just repeat the question again for us.

Gordon Naylor: Okay.

Andrew Goodsall: Okay.

Gordon Naylor: We just had a poor line, that is all.

Speaker #5: Oh, okay. So, Seqirus, just looking ahead, you've reduced down to two products: FLUAD and Flucelvax. And we can see you've taken a bit of a price increase in Flucelvax in the US.

Andrew Goodsall: Well, okay. Seqirus, just forward-looking, you have shrunk down to two products, FLUAD and FLUCELVAX, and we can see you have taken a bit of price increase in FLUCELVAX in the US. Just trying to understand how you are thinking about that into 2027 and just throwing in Moderna into that landscape.

Speaker #5: So just trying to understand, sort of, how you're thinking about that into '27, and just throwing in Moderna into that landscape—just your outlook there.

Ken Lim: Thanks, Andrew.

Ken Lim: Thanks, Andrew. Just your outlook there. Gordon mentioned our expectation that the business will grow at low single digit. There are a few key parts within that guidance. First of all, in the US, vaccination rates are still declining, but we do see the rate of decline moderating. As we look ahead into the 2026, 2027 season, our expectation is that vaccination rates will decline by low single digit, which is considerably slower than where they were a year or two ago. As a result of that, the US business, we expect to be broadly flat, with the growth being driven by the ex-US markets, driven by the initiatives that we have discussed, including the increased penetration into new markets, new enhanced recommendations for FLUAD, and the first season of Aujun flu in the UK.

Ken Lim: Just your outlook there.

Speaker #6: So Gordon mentioned our expectation that the business will grow at low single digits. There are a few key parts within that guidance. So first of all, in the US, vaccination rates are still declining.

Ken Lim: Gordon mentioned our expectation that the business will grow at low single digit. There are a few key parts within that guidance. First of all, in the US, vaccination rates are still declining, but we do see the rate of decline moderating. As we look ahead into the 2026, 2027 season, our expectation is that vaccination rates will decline by low single digit, which is considerably slower than where they were a year or two ago. As a result of that, the US business, we expect to be broadly flat, with the growth being driven by the ex-US markets, driven by the initiatives that we have discussed, including the increased penetration into new markets, new enhanced recommendations for FLUAD, and the first season of Aujun flu in the UK.

Speaker #6: But we do see the rate of decline moderating. So, as we look ahead into the current '26–'27 season, our expectation is that vaccination rates will decline by low single digits.

Speaker #6: Which is considerably slower than where they were a year or two ago. As a result of that, the US business we expect to be broadly flat.

Speaker #6: With the growth being driven by the ex-US markets, driven by the initiatives that we've discussed, including increased penetration into new markets, new enhanced recommendations for FLUAD, and the first season of Afluria Quad in the UK.

Andrew Goodsall: Thanks. Thank you. Just a quick one on the. You obviously had a one-off in this period. We noticed there was a sale, I think it was Novartis buying Myricx Bio, which you have gotten a stake in. That presumably will create a one-off benefit in FY27. Just trying to understand the materiality of that.

Speaker #5: Great, thank you. And just a quick one—you obviously had a one-off in this period. We noticed there was a sale, I think it was Novartis buying Mirex, which you've got a stake in.

Speaker #5: So, that presumably will create a one-off benefit in FY27. I'm just trying to understand the materiality of that.

Ken Lim: I do not think we are calling out any one-off benefits in FY27, Andrew. We had a one-off benefit in FY26 as a result of the Eli Lilly and Company transaction. But the underlying growth that Gordon mentioned is driven by the core recurring business.

Speaker #6: I don't think we are calling out any one-off benefits in FY27. Andrew, we had a one-off benefit in FY26 as a result of the Eli Lilly transaction.

Speaker #6: But the underlying growth that Gordon mentioned is driven by the core recurring business.

Speaker #5: Okay. Terrific. Thank you.

Andrew Goodsall: Okay. Terrific. Thank you.

Speaker #4: Our next question comes from David Bailey from Morgan Stanley. Please go ahead with your question.

Operator: Our next question comes from David Bailey from Morgan Stanley. Please go ahead with your question.

Speaker #7: Yeah, thanks. Good morning. I'm just looking at the guidance commentary again, and obviously there's a fairly significant revenue decline coming through for V4. Essentially, I'm trying to understand the contribution of that in terms of a drag to group and PAK growth for '27.

David Bailey: Yeah, thanks. Good morning. I am just looking at the guidance commentary again, and obviously a fairly significant revenue decline coming through for Vifor. Essentially, I am trying to understand the contribution of that, in terms of a drag to group NPAT growth for 2027. So, maybe some commentary around how you are thinking about gross margin for that particular division or any sort of sense as to what you think the drag of Vifor is on group and underlying NPAT growth for fiscal 2027.

Speaker #7: So maybe some commentary around how you're thinking about gross margin for that particular division, or any sort of sense as to what you think the drag of V4 is on group and the underlying impact on growth for fiscal '27.

Speaker #6: Thank you for the question. So, Gordon mentioned an expectation that the V4 top line will decline by around 25%, and the market dynamics which drive that are principally price.

Ken Lim: Well, thanks for the question. Gordon mentioned an expectation that the Vifor top line will decline by around 25%. The market dynamics which drive that are principally price. So we do expect the vast majority of that price decline to also impact the Vifor gross margin. So that needs to be set alongside the growth that we are expecting in Behring and Seqirus. We have already mentioned the Behring revenue guidance, gross margin expansion. For Seqirus, there will be top line growth with broadly flat gross margins. At a group level, when we consolidate all of Vifor, you get some offsetting impacts, which is what contributes to the flat overall top line guidance for the group.

Speaker #6: So, we do expect the vast majority of that price decline to also impact the V4 gross margin. So that needs to be set alongside the growth that we're expecting in Behring and Seqirus.

Speaker #6: So, we've already mentioned the bearing revenue guidance and gross margin expansion for Seqirus. There will be top-line growth with broadly flat gross margins. And so, at a group level, when we consolidate all of Vifor, you get some offsetting impacts.

Speaker #6: Which is what contributes to the flat overall top line guidance for the group. The dynamic that I'll highlight as you move down through the P&L is to remind you that a considerable portion of the sales for V4 are executed through our joint venture.

Ken Lim: The dynamic that I'll highlight, as you move down through the P&L, is to remind you that a considerable portion of the sales for Vifor are executed through our joint venture, where we have a 55% share. So there's a 45% minority interest in Vifor, which means that when we work through those adjustments down to NPAT, a significant portion of the Vifor sales and margin decline actually accrue to the minority interests.

Speaker #6: Where we have a 55% share, so there's a 45% minority interest in V4. Which means that when we work through those adjustments down to NPAT, a significant portion of the V4 sales and margin decline actually accrue to the minority interest.

Speaker #7: Yep, that's clear. Thank you. And maybe, just thinking about R&D—you've touched on the Vimex candidate, which is interesting in the context of NDEXA.

David Bailey: Yeah, that's clear. Thank you. Maybe just thinking about R&D. You've touched on the VarmX candidate, which is interesting in the context of Andexxa no longer being in the market. But can you maybe talk to VMX-C001, and then also if there's any potential candidates that have popped up as part of your revised R&D strategy?

Speaker #7: No longer being in the market. But can you maybe talk to BMX, COO1, and then also if there's any potential candidate that's sort of popped up as part of your revised R&D strategy?

Speaker #6: Thank you. So, we're really pleased with the progress we're making on reshaping the R&D capability, and we are taking cost out of the business while also reinvesting where we see attractive returns.

Ken Lim: Thank you. We're really pleased with the progress we're making on reshaping the R&D capability. We are taking costs out of the business while also reinvesting where we see attractive returns. So in FY26, we did make investments in the VarmX candidate, which is going to shortly start enrolling. In FY27, we expect R&D for the group to be up a small amount as we continue to make those investments. So there's a number of promising phase III candidates that we'll be progressing. We spoke about VarmX. I think in Gordon's remarks, he also talked about CSL300, a candidate in end-stage kidney disease that's also in an ongoing phase III study.

Speaker #6: So, in FY26, we did make investments in the Vimex candidate, which is going to shortly start enrolling in FY27. We expect R&D for the group to be up a small amount.

Speaker #6: As we continue to make those investments, there are a number of promising Phase 3 candidates that we’ll be progressing. We spoke about Vimex, and I think in Gordon’s remarks he also talked about CSL 300, a candidate in end-stage kidney disease.

Speaker #6: That's also in an ongoing Phase 3 study.

Speaker #7: Thanks.

David Bailey: Thanks.

Speaker #4: Our next question comes from David Stanton from Jefferies. Please go ahead with your question.

Operator: Our next question comes from David Stanton from Jefferies. Please go ahead with your question.

Speaker #5: Good morning, team, and thank you very much for taking my questions. Perhaps if I could ask firstly about the first half and second half, and specifically the trajectory of expected albumin and Ig revenues in '27.

David Stanton: Good morning, team, and thanks very much for taking my questions. Perhaps if I could ask firstly in terms of H1, H2, and specifically the trajectory of expected albumin and IG revenues in 2027, should we be thinking, given what you have called out and what happened in 2026, that H1 will look lower compared to H2 for both IG growth and albumin growth? Thank you.

Speaker #5: Should we be thinking, given what you've called out and what happened in '26, that the first half will look lower compared to the second half for both Ig revenue, Ig growth, and albumin growth?

Speaker #5: Thank you.

Speaker #8: Hi, this is Diego. Thank you for the question. So, when we think about the Ig prognosis for fiscal year '27, what you see is a continuous performance based on our current momentum.

Diego Sacristan: Hi, this is Diego. Thank you for the question. When we think about the IG prognosis for fiscal year 2027, what you see is a continuous performance based on our current momentum. You have seen half-over-half growth in the H2 of fiscal year 2026. When it comes to albumin, we call that we see the market going back to stable levels of volume growth, and with a still declining price also, although at a slower rate. When you think about the half-over-half, I would say a pretty stable first versus H2 for IG, and potentially a small decline in albumin driven by the China market conditions.

Speaker #8: So you've seen over half growth in the second half of fiscal year 2026. And when it comes to albumin, we can see the market going back to stable levels of volume growth.

Speaker #8: So, with a still declining price, although at a slower rate. So when you think about the half over half, I would say a pretty stable first versus second half for Ig.

Speaker #8: And potentially a small decline in albumin, driven by the China market conditions.

Speaker #4: Thank you. And perhaps one for Ken. Can you give us any kind of guide in F27 for acquired IP post-tax? You had that $322 million in F26.

David Stanton: Thank you. Perhaps one for Ken. Can you give us any kind of guide in F27 for acquired IP post-tax? You had that AUD 322 million in F26. Can you talk to what you are thinking for F27, please?

Speaker #4: Can you talk to what you’re thinking for F27, please?

Speaker #6: For which line item?

Ken Lim: For which line item?

David Stanton: Acquired IP post-tax.

Speaker #4: Acquired IP post tax.

Speaker #6: Oh, okay. So we actually provided some detail in Appendix E around amortization, and I won't go through all the detail now. But you'll see in that supporting slide that amortization for the group, we expect to be lower by around $90 million in FY27 versus what we reported in FY26.

Ken Lim: Oh, okay. We actually provided some detail in Appendix E around amortization. I will not go through all the detail now, but you will see in that supporting slide that amortization for the group, we expect to be lower by around 90 million AUD in FY27 versus what we reported in FY26.

Speaker #5: Very clear. Thank you.

David Stanton: Very clear. Thank you.

Speaker #4: Our next question comes from Leanne Harrison from Bank of America. Please go ahead with your question.

Operator: Our next question comes from Lyanne Harrison from Bank of America. Please go ahead with your question.

Speaker #2: Yeah. Good morning. I'm Gordon. Good morning, Ken. Can I come back to Ig again? You know, obviously, as was mentioned, strong growth in the second half of ’26.

Lyanne Harrison: Yeah, good morning, Gordon. Good morning, Ken. Can I come back to IG again? As it was mentioned, strong growth in the H2 of 2026. I just wanted to understand, what has really driven that. Has there been any sort of contract wins that you can call out? If so, what was the differentiating factor, do you think, in terms of CSL winning those contracts?

Speaker #2: And I just wanted to understand, you know, what's really driven that. Has there been any sort of contract wins that you can call out?

Speaker #2: And if so, what do you think was the differentiating factor in terms of CSL winning those contracts?

Speaker #8: Hi, good morning. This is Diego. So, when it comes to Ig, we see a pretty consistent situation to the one that we described in May.

Diego Sacristan: Hi, good morning. This is Diego. When it comes to IG, we see a pretty consistent situation to the one that we described in May. What you see is the result of our ongoing investments. Just as a reminder, we did increase our footprint in the US. We did invest in direct-to-patient, looking for a request of brand, and also as market leaders in the SCID category, we are investing in increasing diagnosis. What you see is the momentum that is created by those investments that we have been doing for some time. Again, I want to reiterate that the prognosis for fiscal year 2027 is based on the current momentum. It is not expecting any acceleration from today. When it comes to contracts, look, we have a complex portfolio, very diverse.

Speaker #8: So, what you see is the result of our ongoing investments. Just as a reminder, we did increase our field footprint in the US. We did invest in direct-to-patient, looking for our requests of brand.

Speaker #8: And also, as market leaders in the SCIC category, we're investing in increasing diagnosis. So what you see is the momentum that is created by those investments that we've been doing for some time.

Speaker #8: And we see, and again I want to reiterate, that the prognosis for fiscal year '27, based on the current momentum, is not expecting any acceleration from today.

Speaker #8: When it comes to contracts, look, we have a complex portfolio—very diverse. We win and sometimes we lose contracts, but it's part of our renew-tender strategy that includes some hedge levers as well.

Diego Sacristan: We win, and sometimes we lose contracts, but it is part of our renew tender strategy that includes some hedge levers as well. This is all part of the plan and what we are projecting for fiscal year 2027.

Speaker #8: So, this is all part of the plan and what we are projecting for fiscal year '27.

Speaker #2: Okay. And as my second question, can I talk about guidance? You know, I hear what you say about revenue being relatively flat on a constant currency basis.

Lyanne Harrison: Okay. My second question, can I talk about guidance? I hear what you say about revenue being relatively flat on a constant currency basis. I hear what you are saying about gross margins. It sounds like that impact growth is going to come from operating costs. Can you talk about where you expect some of that cost out to come from? Obviously, you have expected quite a significant transformation initiative gains in that timeframe.

Speaker #2: I hear what you're saying about gross margins. So it sounds like that impact to growth is going to come from operating costs. Can you talk about where you expect some of that cost out to come from?

Speaker #2: Obviously, you’ve expected quite significant gains from the transformation initiative within that timeframe.

Speaker #6: I would say thanks, Leanne. It's Ken. The principal drivers of the earnings growth are actually the growth that we're seeing in Behring and Seqirus.

Ken Lim: I would say. Thanks, Lyanne. It is Ken. The principal drivers of the earnings growth are actually the growth that we are seeing in Behring and Seqirus. That is incorporated into the group guidance with some offsets that I mentioned before, in relation to Vifor, and including the minority interest dynamic that I mentioned before. In addition to that, we are taking further costs out of the business. I mentioned in my presentation that versus fiscal 2026, we will see around another AUD 220 million of costs coming out. The contributors to that are R&D, plasma collections, manufacturing, and commercial, so across a number of different areas of the business. We will be reinvesting about half of that back into growth opportunities. That will be principally in R&D and commercial.

Speaker #6: So, that is incorporated into the group guidance, with some offsets that I mentioned before in relation to V4, and including the minority interest dynamics that I mentioned earlier.

Speaker #6: In addition to that, we are taking further costs out of the business. I mentioned in my presentation that, versus fiscal '26, we'll see around another $220 million of costs coming out.

Speaker #6: The contributors to that are R&D, plasma collections, manufacturing, and commercial—so, across a number of different areas of the business. We will be reinvesting about half of that back into growth opportunities.

Speaker #6: So, that will be principally in R&D and commercial, so around $100 million plus being released to the P&L. And that will principally manifest itself in the gross margin line.

Ken Lim: Around AUD 100 million plus being released to the P&L, and that will principally manifest itself in the growth margin line.

Speaker #2: Okay. Thank you.

Lyanne Harrison: Okay. Thank you.

Speaker #4: Our next question comes from Saul Hadassin from Barrenjoey. Please go ahead with your question.

Operator: Our next question comes from Saul Hadassin from Barrenjoey. Please go ahead with your question.

Speaker #7: Yeah, good morning. Thanks for taking my questions. If I can just turn to Ig growth— you know, the mid to high single digits. So, I'm wondering if you can talk to your expectations around volume versus price versus mix.

Saul Hadassin: Yeah, good morning. Thanks for taking my questions. If I can just turn to IG growth, the mid to high single digits. I am wondering if you can talk to your expectations around volume versus price versus mix. I am particularly interested in understanding what was your plasma collections growth over the last nine months to be able to work out what volume growth would look like for IG in FY27?

Speaker #7: I'm particularly interested in understanding what your plasma collections growth was over the last approximately nine months, in order to work out what volume growth should look like for Ig into FY27.

Speaker #6: I saw that, Ken. I'll talk about collections and then hand over to Diego to make any additional comments on the commercial side. So, in plasma collections, we are both increasing our plasma collections while reducing cost per liter.

Ken Lim: Ken, I will talk about collections and then hand over to Diego to make any additional comments on the commercial side. In plasma collections, we are both increasing our plasma collections while reducing cost per liter. This is fundamental to the efficiency strategies that we have had in place for quite some time, and that continues to deliver. We have closed the underperforming centers without seeing a reduction in overall collection volume. That has been really pleasing. We will now focus a lot on other initiatives to drive increased efficiency. Gordon touched on a little of this on the call, but we think there is a lot of opportunity in how we engage with donors using AI to be more sophisticated with how we target donors, moving donors more efficiently through the centers. All directed towards driving down cost per liter. That is, I think, on the collection side.

Speaker #6: So, this is fundamental to the efficiency strategies that we've had in place for quite some time, and that continues to deliver. We've closed the underperforming centers without seeing a reduction in overall collection volumes.

Speaker #6: So that's been really pleasing. We will now focus a lot on other initiatives to drive increased efficiency. Gordon touched on this a little on the call.

Speaker #6: But we think there's a lot of opportunity in how we engage with donors, using AI to be more sophisticated with how we target donors, moving donors more efficiently through the centers.

Speaker #6: So all directed towards driving down cost per liter. So that's, I think, on the collection side. I'll hand over to Diego for any other comments on the top line.

Ken Lim: Hand over to Diego for any other comments on the top line.

Speaker #8: Yeah, thank you, Ken. So in terms of the Ig franchise growth, as we mentioned, what we are projecting is growing with the market. So that's a pretty stable dynamic that we see. You asked about the price.

Diego Sacristan: Yeah. Thank you, Ken. In terms of the IG franchise growth, as we mentioned, what we are projecting is growing with the market. That is a pretty stable dynamic that we see. You ask about the price. We see the market being very robust. The players kind of recognizing the value of plasma economics and how the value change works. We see the price to be pretty stable. When it comes to, you also ask about the mix. It depends on the geography, but if you think about the SCIG versus IVIG, SCIG, we are market leaders. We are clearly kind of following that market growth trend. In the IVIG space, particularly in some markets, it is growing slightly faster than SCIG, so we might see a slightly higher rate on IVIG, but in balance, both of them growing with the market.

Speaker #8: We see the market being very robust, the players kind of recognizing the value of plasma economics and how the value chain works. And we see the price to be pretty stable.

Speaker #8: When it comes to, you also ask about the mix—it depends on the geography. But if you think about SCIg versus IVIG, SCIg, we are market leaders.

Speaker #8: We are clearly kind of following that market growth trend. I mean, the IVIG space, particularly in some markets, is growing slightly faster than SCIG.

Speaker #8: So, we might see a slightly higher rate on IVIG, but in balance, both of them are growing with the market.

Speaker #7: Thanks. Maybe you can follow up, because I don't think I've really got an answer to the question. And that is, you know, what did your collections grow by over the last nine months that feed into the FY27 Ig growth assumption?

Saul Hadassin: Thanks. Maybe if I can follow up because I do not think I really got an answer to the question, and that is, what did your collections grow by over the last 9 months that feed into the FY27 IG growth assumption? Are you saying that revenue growth effectively matches volume growth for IG in FY27? The reason I ask is there has obviously been some questions around oversupply, and I am wanting to get a sense of if you have just been collecting at the same rate at which you think your IG will grow at in FY27, i.e., mid to high single digits. There is a bit of difference between 5% and 10%. Thanks.

Speaker #7: Are you saying that revenue growth effectively matches volume growth for Ig in FY27? The reason I ask is, there have obviously been some questions around oversupply.

Speaker #7: And I'm wanting to get a sense of if you've just been collecting at the same rate at which you think your Ig will grow at into FY27, i.e., you know, mid to high single digits.

Speaker #7: There's a bit of a difference between 5% and 10%. Thanks.

Speaker #6: Yeah, we're collecting the plasma that we need to support the end-market demand that Diego mentioned before.

Ken Lim: We are collecting the plasma that we need to support the end market demand that Diego mentioned before.

Speaker #7: All right, thanks. That's all I had.

Saul Hadassin: All right. Thanks. That is all I had.

Speaker #4: Our next question comes from Steve Wein from Jarden. Please go ahead with your question.

Operator: Our next question comes from Steve Wheen from Jarden. Please go ahead with your question.

Speaker #5: Yeah. Thanks very much. Good morning. I just was wanting to just touch on Ig as well. Was there something that you saw in April that announced that forced you to announce the downgrade of 300 million dollars that didn't quite pan out the way you expected?

Steve Wheen: Yeah. Thanks very much. Good morning. I just was wanting to just touch on IG as well. Was there something that you saw in April that forced you to announce the downgrade of USD 300 million that didn't quite pan out the way you expected? It just seems to be, ultimately where you ended up is a much stronger end to the H2 that probably wasn't expected at the time of that downgrade. Just trying to understand what changed there.

Speaker #5: It just seems to be, you know, ultimately where you ended up is a much stronger end to the second half that probably wasn't expected.

Speaker #5: At the time of that downgrade, I'm just trying to understand what changed there.

Speaker #6: Hi Steve, it's Ken. So the outcome for Ig, I think, is completely consistent with what we pulled out in May, where we said that Ig for the full year is likely to be flat.

Ken Lim: Hi, Steve. It's Ken. The outcome for IG, I think is completely consistent with what we called out in May, where we said that IG for the full year is likely to be flat. What we called out in May was an issue with inventory in the channel that we purposefully normalized. To prevent that inventory continuing to accumulate, which is what actually then drove the flat result. I'll just pause there in case Diego has any additional comments.

Speaker #6: What we called out in May was an issue with inventory in the channel that we purposely normalized, to prevent that inventory from continuing to accumulate.

Speaker #6: Which is what actually then drove the flat result. So, I'll just pause there in case Diego has any additional comments.

Speaker #8: No, nothing to add. Thank you.

Diego Sacristan: No, nothing to add. Thank you.

Speaker #5: Okay. And the second question I had was just with regards to the amortization of IP. You’ve obviously done significant impairment of the Vifor business, which is what that acquisition was—where this disclosure came from.

Steve Wheen: Okay. The second question I had was just with regards to the amortization of IP. You've obviously done significant impairment of the Vifor business, which is what was that acquisition is what, is where this disclosure came from. Just trying to understand why it's only a USD 90 million reduction in the amortization of IP when you've impaired it by something like USD 7.5 billion before tax.

Speaker #5: Just trying to understand why it's only a 90 million dollar reduction in the amortization of IP when you've impaired it by something like seven and a half million billion dollars.

Speaker #5: For before tax.

Speaker #6: Sure. Thanks for the question, Steve. There’s quite a lot of detail in Appendix E to this presentation, as well as in the notes to the accounts.

Ken Lim: Sure. Thanks for the question, Steve. There is quite a lot of detail in appendix E to this presentation as well as to the notes to the account. You will see all of the various assets that have been impaired. Just in relation to your question on what you are drawing out, what you think is a little bit of a surprise. A big part of the impairment is goodwill. There is a $1.7 billion impairment to the Vifor goodwill, so that is not amortized. I will draw that to your attention in case that helps you reconcile the various numbers.

Speaker #6: So you'll see all of the various assets that have been impaired. Just in relation to your question on what you're drawing out, what you think is a little bit of a surprise.

Speaker #6: A big part of the impairment is goodwill. So, there's a $1.7 billion impairment to the V4 goodwill. That's not amortized, so I'll draw that to your attention in case that helps you reconcile the various numbers.

Speaker #5: Yeah. Okay. Thanks a lot.

Steve Wheen: Yeah. Okay. Thanks a lot.

Speaker #4: And our next question comes from Davin Phil and Nathan from Goldman Sachs. Please go ahead with your question.

Operator: Our next question comes from Davin Thillainathan from Goldman Sachs. Please go ahead with your question.

Speaker #5: Thanks. Good morning, team. I have a question regarding your bearing gross margin. Looking at the guidance for FY27, it appears you’re essentially guiding for the business to return to where it was in FY25.

Davin Thillainathan: Thanks. Morning, team. I guess a question on your Behring gross margin. Thinking about the guide for FY 2027, where you are essentially guiding to the business being back to where it was in FY 2025. Also then thinking about the IG guide, where you are guiding to about mid to high single digit. If I think about those moving parts, it would suggest FY 2027 on FY 2025, your IG business doing that sort of 7% type mark in growth. But you are getting a lot of efficiencies on your cost base as you have called out today, but yet your gross margin is back to where it was in FY 2025. If I think about the headwind there, is it largely China that is driving that? Or is there any other drivers we should be considering to give us conviction into the periods beyond FY 2027, please?

Speaker #5: And also, then thinking about the Ig guide, where you're guiding to about, you know, mid- to high-single-digit. Now, if I think about those moving parts, it would suggest FY27 on FY25, your Ig business doing that sort of 7% type mark in growth.

Speaker #5: But you are getting a lot of efficiencies on your cost basis, as you've called out today. But yet your gross margin is back to where it was in FY25.

Speaker #5: So, if I think about the headwind there, is it largely China that's driving that? Or are there any other drivers we should be considering to give us conviction into the periods beyond FY27, please?

Speaker #6: Thanks, Davin. So you've quickly called out some of the drivers, and I'll add a few comments. The Ig guide for mid- to high-single-digit gross underpins the margin. Ig, though, is not a high-margin product versus some of the non-plasma products that we have.

Ken Lim: Thanks, Davin. You have quickly called out some of the drivers, and I will add a few comments. The IG guide for mid to high single digit growth underpins the margin. IG, though, is not a high-margin product versus some of the non-plasma products that we have. We also have, as Diego indicated, uncertainty in China with albumin flat to potentially a little bit down. The overall guide for the margin enhancement does depend upon those efficiency initiatives that I mentioned previously, as well as ongoing growth in some non-plasma products, including ANDEMBRY and HEMGENIX.

Speaker #6: We also have, as Diego indicated, uncertainty in China with albumin flat to potentially a little bit down. And so the overall guide for the margin enhancement does depend upon those efficiency initiatives that I mentioned previously.

Speaker #6: As well as ongoing growth in some non-plasma products, including Andexanet and Hemgenix.

Speaker #5: Okay, thanks. And then maybe a follow-up on the albumin piece. So the guide is for flat to slightly down, if I'm understanding that right, for FY27?

Davin Thillainathan: Okay, thanks. Then maybe a follow-up on the albumin piece. The guide is for flat to slightly down, if I am understanding that right for FY 2027. The question also is about your channel inventory, because this comes up a fair bit with discussions with investors. Just your thoughts there, given you have sold a fair bit to a distributor across FY 2026. How do we think about any potential implications there from the channel's perspective?

Speaker #5: I guess the question is also about your channel inventory, because this comes up quite a bit in discussions with investors. Just your thoughts there, given you have sold a fair bit to a distributor across FY26.

Speaker #5: How do we think about any potential implications there from the channel's perspective?

Speaker #8: Hi, this is Diego. Thank you for the question. So, in the case of China, albumin—as you mentioned there—we have the partnership with Bahil Medical on the retail channel.

Diego Sacristan: Hi, this is Diego. Thank you for the question. In the case of China, albumin, as you mentioned there, we have the partnership with Bahiel Medical on the retail channel, and we continue to promote with our own field force in the hospital channel, very consistent with what we mentioned in May. We are monitoring very closely inventory levels, both in the distributor level, but also with Bahiel. We are working with them very closely, and we have a very close monitor and it is on a very appropriate level. We do not see any implications of swings in the inventory for fiscal year 2027.

Speaker #8: And we continue to promote with our own field force in the hospital channel, very consistent with what we mentioned in May. We're monitoring very closely inventory levels, both at the distributor level but also with Bahil.

Speaker #8: We're working with them very closely, and we have it under very close monitor. And it's at a very appropriate level, so we don't see any implications of swings in the inventory for fiscal year '27.

Speaker #5: Thanks, Steve.

Davin Thillainathan: Thanks, team.

Speaker #4: Our next question comes from Laura Suckliff from Citi. Please go ahead with your question.

Operator: Our next question comes from Laura Sutcliffe from Citi. Please go ahead with your question.

Speaker #7: Hello, thank you for taking my question. Firstly, just on your guidance for next year: you've guided to 5% underlying impact growth. I realize you're not going to give us guidance for anything after that.

Laura Sutcliffe: Hello. Thank you for taking my questions. Firstly, just on your guidance for next year, you have guided to 5% underlying NPAT growth. I realize you are not going to give us guidance for anything after that, but are the activities you are engaged in now designed to eventually push it back up beyond that? In particular, at what point do you think you can get Vifor to stop being a material headwind and let the performance of the other two divisions drive things again? I do realize that not all of Vifor's products pass through the JV mechanics in an identical fashion.

Speaker #7: But are the activities you’re engaged in now designed to eventually push it back up beyond that? And, in particular, at what point do you think you can get V4 to stop being a material headwind and let the performance of the other two divisions drive things again?

Speaker #7: I do realize that not all of V4's products pass through the JV mechanics in an identical fashion.

Speaker #6: Sure. Thanks, Laura. It's Ken. So, Gordon discussed some of the headwinds that we're experiencing in V4. Many of those headwinds are at their most acute in fiscal '27.

Ken Lim: Sure. Thanks, Laura. It is Ken. Gordon discussed some of the headwinds that we are experiencing in Vifor. Many of those headwinds are at their most acute in fiscal 2027. Many of them also have some way to play out over the medium term. We are not giving any further guidance on Vifor for beyond 2027. Just to call out that there is an ongoing dynamic that will just have to work its way through.

Speaker #6: But many of them also have some way to play out over the medium term. So we're not giving any further guidance on V4 for beyond '27.

Speaker #6: But just to call out that there's an ongoing dynamic that will just have to work its way through.

Speaker #7: Okay. And then a second question on your recent news on the need for a clinical trial for the Horizon 2 process. I think you mentioned at your capital markets day last year that the FDA had said that if the validation data you have in hand had appropriate comparability with the existing process, then they would accept it.

Laura Sutcliffe: Okay, and then a second question on your recent news on the need for a clinical trial for the Horizon 2 process. I think you mentioned at your Capital Markets Day last year that FDA had said that if the validation data you have in hand has appropriate comparability with your existing process, then they would accept it. Has the FDA moved the goalpost, or is there something that they do not like comparability-wise that has motivated the need for human trials?

Speaker #7: So, has the FDA moved the goalposts? Or is there something that they don't like, comparability-wise, that has motivated the need for human trials?

Speaker #8: Hello, it's Ken. I'll take that question. You referenced the announcement we made a couple of weeks ago about undertaking clinical studies. We remain very excited about Horizon 2 and the potential of that extraction technology to meaningfully increase the yields.

Ken Lim: Hello, it's Ken. I will take that question. You referenced the announcement we made a couple of weeks ago about undertaking clinical studies. We remain very excited about Horizon 2 and the potential of that extraction technology to meaningfully increase the yields. We still need to have some further discussions with the relevant regulators on what the design and timing of those clinical studies will look like. We need to harmonize the various requirements so that we undertake those studies in the most efficient way. Our intention is that those studies will progress in parallel with the construction of the Horizon 2 facility in Kankakee, as well as Broadmeadows in Australia.

Speaker #8: We still need to have some further discussions with the relevant regulators on what the design and timing of those clinical studies will look like.

Speaker #8: And so we need to harmonize the various requirements so that we undertake those studies in the most efficient way. Our intention is that those studies will progress in parallel with the construction of the Horizon 2 facility in Kankakee, as well as in Broadmeadows, Australia.

Speaker #7: Okay, sorry. I was just trying to understand why you need them at all, because it sounded last year as though you had a plan that meant you wouldn't require them.

Laura Sutcliffe: Okay. Sorry. I was just trying to understand why you need them at all, because it sounded like last year as though you had a plan that meant that you would not require them.

Speaker #8: It's just to provide the data that the regulators need around the comparability of the Ig that we make with the existing process and the Horizon 2 process.

Ken Lim: It is just to provide the data that the regulators need around the comparability of the IG that we make with the existing process and the Horizon 2 process.

Speaker #7: All right. Thank you.

Laura Sutcliffe: All right. Thank you.

Speaker #4: Our next question comes from Andrew Payne from CLSA. Please go ahead with your question.

Operator: Our next question comes from Andrew Paine from CLSA. Please go ahead with your question.

Speaker #5: Yeah, morning. Thanks for taking my questions. Just coming back to the V4 discussion around the gross margin—I believe you said that the cost base is being adjusted materially.

Andrew Paine: Yeah, morning. Thanks for taking my questions. Just coming back to the Vifor discussion around the gross margin. I believe you said that the cost base is being adjusted materially. Is that the case? I am just trying to wonder if there is a bit of an offset here that you can pull through given that the drop in revenue probably passes through to the gross profit fully, given that headwind on price rather than volume.

Speaker #5: Is that the case? I'm just trying to wonder if there's a bit of an offset here that you can pull through, given that the drop in revenue probably passes through to gross profit fully, given that headwind on price rather than volume.

Speaker #6: Andrew, it's Ken. Was your question about the cost base in Q4? Okay, sure. So, I've talked about the revenue—

Ken Lim: Andrew, it is Ken. Was your question about the cost base in Vifor?

Andrew Paine: Yeah. Sorry.

Ken Lim: Okay, sure. I have talked about the revenue and the gross profit impact. The Vifor cost base is something that we are looking at very closely. The principal cost there is the commercial and medical capability. We have now integrated those teams with the preexisting commercial and medical teams within CSL Behring. What that has allowed us to do, which you see in the numbers for fiscal, for FY2026, and we will continue to see for FY2027, is our ability to invest in commercial initiatives that drive growth, but with minimal impact on the overall commercial spend for the group. In FY2026, group commercial spend increased very marginally, about 2%. That includes very significant investments that we made, in the US and in China, and to support growth products such as ENDEBRI. Looking ahead into 2027, we will continue to make similar investments.

Speaker #8: ...and the gross profit impact. The V4 cost base is something that we are looking at very, very closely. The principal cost there is the commercial and medical capability. We have now integrated those teams with the preexisting commercial and medical teams within CSL Behring.

Speaker #8: And what that has allowed us to do, which you see in the numbers for fiscal year 2026—and will continue to see for FY27—is our ability to invest in commercial initiatives that drive growth, but with minimal impact on the overall commercial spend for the group.

Speaker #8: So, in FY26, group commercial spend increased very, very marginally—about 2%. And that includes very, very significant investments that we made in the US and in China, and to support growth products such as NDEMBRY.

Speaker #8: Looking ahead into 2027, we will continue to make similar investments. But the overall commercial spend for the group in 2027 should be relatively flat to 2026.

Ken Lim: But the overall commercial spend for the group in 2027 should be relatively flat to 2026.

Speaker #5: Okay, so that comment was more around opex as opposed to any reductions you can pull through in gross margin for V4.

Andrew Paine: Okay. That comment was more around OpEx as opposed to any reductions you can pull through in gross margin for Vifor.

Ken Lim: That is how we are looking to minimize the impact of the Vifor gross margin on overall group profitability. Correct.

Speaker #6: That's how we're looking to minimize the impact of the V4 gross margin on overall group profitability. Correct.

Speaker #5: Thanks. Thank you, that's great. And then just another one: you mentioned you closed underperforming incentives without a reduction in overall volumes, and I know your previous comments around how you collect what you need in terms of demand.

Andrew Paine: Okay. That's great. Just another one. You mentioned, you've closed underperforming centers without reduction in overall volumes, and I know your previous comments around you collect what you need in terms of demand. I'm just trying to understand where you're sitting at the moment in terms of the supply you have, how you view the kind of ramp-up in demand over the next few years and trying to marry that off between your yield gains coming through, and requirements for any further collection center buildouts, or are you happy where you are at the moment?

Speaker #5: I'm just trying to understand where you're sitting at the moment in terms of the supply you have, how you view the kind of ramp-up in demand over the next few years, and trying to marry that off between your gains coming through and requirements for any further collection center buildouts. Or are you happy where you are at the moment?

Speaker #8: Sure, respond then. So, I guess just broadly, the whole idea is that the volume of placement we collect is intended to match the demand that we're forecasting—with the obvious delay in the production process and inventory hold, and so on.

Ken Lim: Sure.

Gordon Naylor: I'll respond. The whole idea is that the volume of plasma we collect is intended to match the demand that we're forecasting with the obvious delay in the production process and inventory hold and so on. That's true operationally and also strategically. It just follows. There's no incentive whatsoever to speculatively collect plasma, nor to have a situation where you constrain sales. We try and get that balance right all the time. As I say, it's both operationally and strategically. I don't think we see any significant constraints upon our ability to grow the business.

Speaker #8: And that's true operationally and also strategically. So, it just follows—there's no incentive whatsoever to speculatively collect plasma, nor to have a situation where you’re constrained on sales.

Speaker #8: So we try and get that balance right all the time. And as I say, it's both operationally and strategically. I don't think we see any significant constraints upon our ability to grow the business.

Andrew Paine: Okay. That would imply, I think that there's some, you can ramp up these collection centers and you're essentially not running at full capacity or collecting the level you think you can if that demand continues to grow.

Speaker #5: Okay. So, I mean, it would imply, I think, that you can ramp up these collection centers and you're essentially not running at full capacity or collecting at the level you think you can, if that demand continues to grow.

Speaker #8: Yeah. As Ken said, we've got quite a number of levers to pull to increase production. But the other objective is to do so efficiently.

Gordon Naylor: Yeah. As Ken said, we've got quite a number of levers to pull to increase production, but the other objective is to do so efficiently. That's a trade-off which we're constantly making.

Speaker #8: And so that's a trade-off which we're constantly making.

Speaker #5: Okay. That's great. Thanks.

Andrew Paine: Okay. That's great. Thanks.

Speaker #4: And our next question comes from Craig Wong Pan from RBC. Please go ahead with your question.

Operator: Our next question comes from Craig Wong-Pan from RBC. Please go ahead with your question.

Speaker #7: Thank you. In relation to the Horizon 2 clinical trials, you said you're still in discussions with regulators on what exactly is required. But can you say whether the cost for this could be a material cost?

Craig Wong-Pan: Thank you. In relation to the Horizon 2 clinical trials, you said you are still in discussions with regulators on what exactly is required, but can you say whether the cost for this could be a material cost? Could you provide any parameters around that?

Speaker #7: Could you, sort of, provide any parameters around that?

Speaker #8: At the moment, we don't expect a material cost, so we'll be able to absorb that within the normal R&D spend that we are incurring.

Ken Lim: At the moment, we do not expect a material cost, so we will be able to absorb that within the normal R&D spend that we are incurring. When we have more certainty on what those trials look like, then we will come back with more to report. At the moment, that is as much guidance as we can give.

Speaker #8: When we have more certainty on what those trials look like, then we'll come back with more to report. But at the moment, that's as much guidance as we can give.

Speaker #7: Okay, and then, second question. There was a comment made earlier that you're seeing IVIG growing faster than SCIG. I just wanted to understand why that's happening, and also if you're seeing any competitor effects there, given that they've been growing their SCIG revenues quite strongly.

Craig Wong-Pan: Okay. Second question, just there was a comment made earlier that you are seeing IVIG growing faster than SCIG. Just wanted to see, to understand that, why that is happening, and also if you are seeing any competitor effects there, given that they have been growing their SCIG revenues quite strongly.

Speaker #8: All right. This is Diego. Thank you for the question. So, my comment is that we see actually both markets growing at very close rates.

Diego Sacristan: Hi, this is Diego. Thank you for the question. My comment is that we see actually both markets growing at very close rates. My comment was that, given that we are clear market leader with the SCIG, you always have a little bit more room for the product you are not the market leader, and in this case it is IVIG. So it is a relative market dynamic, one versus the other, but the two markets are actually growing very tightly together, and the difference that I am referring to are pretty marginal.

Speaker #8: My comment was that given that we are clear market leader with the SCIG, you always have a little bit more room for the product you're not the market leader in, and in this case, it's IVIG.

Speaker #8: So it's a relative market dynamic—one versus the other. But the two markets are actually growing very tightly together, and the differences that I'm referring to are pretty marginal.

Speaker #7: Okay. Thank you.

Michelle Rees: Okay, thank you.

Craig Wong-Pan: Okay, thank you.

Speaker #4: Our next question comes from Sasha Krain from Evans & Partners. Please go ahead with your question.

Operator: Our next question comes from Sacha Krien from Evans & Partners. Please go ahead with your question.

Speaker #5: Good morning. Thanks for taking my questions. This question is on the PP&A write-down, first of all. I'm just wondering if you can share what sort of depreciation benefit that gives you in FY27.

Sacha Krien: Good morning. Thanks for taking my questions. Just a question on the PP&E write-down, first of all. I am just wondering if you can share what sort of depreciation benefit that gives you in FY27?

Speaker #8: We don't really anticipate a great deal of depreciation benefits, so depreciation will still increase year on year. As I mentioned before, the major impact is on amortization, which you'll see in Appendix E.

Ken Lim: We do not really anticipate a great deal of depreciation benefits, so depreciation will still increase year on year. As I mentioned before, the major impact is on amortization, which you will see in Appendix A.

Speaker #5: Okay, great. And then, second question, just on Behring gross margin. You’ve given some color on IG and albumin. Just wondering if you can also provide some outlook commentary on some of the key specialty products—probably I'd delve into Idelvion and Haegarda—and then related to that, within HAA, you’re seeing a clear shift, obviously, from Haegarda and Berinert to C1-INH Embryo.

Sacha Krien: Okay, great. Second question, just on Behring gross margin. You have given some color on IG and albumin. Just wondering if you can also provide some outlook commentary on some of the key specialty products, probably IDELVION and KCENTRA. Related to that, within HAE, you are seeing a clear shift obviously from HAEGARDA and BERINERT and ENDEBRI. I am just wondering what the margin impact is from that shift.

Speaker #5: I'm just wondering what the margin impact is from that shift.

Speaker #8: So, I'll make some initial comments on margins, and then Diego will fill in on what's happening on the top line. But broadly, the infra-marginal plasma products aren't adding to overall gross margin at the moment.

Ken Lim: I will make some initial comments on margins, and then Diego will fill in on what is happening on the top line. Broadly, the infra-marginal plasma products are not adding to overall gross margin at the moment. Some of those products are declining. We are encouraged that KCENTRA, which has historically been declining, I think we saw about a 17% decline in FY26, that is starting to moderate. The infra-marginals are not benefiting gross margin into 2027.

Speaker #8: So, some of those products are declining. We are encouraged that Cassentra, which has historically been declining—I think we saw about a 17% decline in FY26.

Speaker #8: That's starting to moderate, but the infra-marginals aren't benefiting gross margin into '27.

Speaker #5: Yeah, thank you, Ken. And a little bit on revenue dynamics in this space—you mentioned hemophilia B with Idalvion. We're very pleased with the durability of the hemophilia B franchise, with Idalvion holding.

Diego Sacristan: Yeah.

Diego Sacristan: Yeah. Thank you, Ken. A little bit of a revenue dynamics in this space. You mentioned hemophilia B with IDELVION. We are very pleased with the durability of the hemophilia B franchise with IDELVION holding leadership in the factor IX replacement and with HEMGENIX coming in. We have not seen a big disruption in this market. We see it flat for next fiscal year with KCENTRA. Ken mentioned that we see a slow rate of decline. Our job now is to continue to expand the usage of KCENTRA. We are actually seeing a very nice growth in the accounts that we are contracting KCENTRA in terms of the use of a factor replacement. With ANDEMBRY, very pleased with the uptake, definitely outperforming benchmarks.

Diego Sacristan: Thank you, Ken. A little bit of a revenue dynamics in this space. You mentioned hemophilia B with IDELVION. We are very pleased with the durability of the hemophilia B franchise with IDELVION holding leadership in the factor IX replacement and with HEMGENIX coming in. We have not seen a big disruption in this market. We see it flat for next fiscal year with KCENTRA. Ken mentioned that we see a slow rate of decline. Our job now is to continue to expand the usage of KCENTRA. We are actually seeing a very nice growth in the accounts that we are contracting KCENTRA in terms of the use of a factor replacement. With ANDEMBRY, very pleased with the uptake, definitely outperforming benchmarks.

Speaker #5: Leadership in the factory replacement and with Hemogenesis coming in. We haven't seen a big disruption in this market, and we see it staying flat for next fiscal year.

Speaker #5: With Cassentra, Ken mentioned that we see a slowdown of the rate of decline. Our job now is to continue to expand the usage of Cassentra.

Speaker #5: And we're actually seeing very nice growth in the accounts that we are contracting Cassentra in, in terms of the use of the factory replacement.

Speaker #5: With NDEMBRY, very pleased with the uptake. Definitely outperforming benchmarks. And although we obviously see, with the new innovation and impact for Haygard, overall the franchise is growing, and the percentage of patients that we see coming off Haygard is kind of balanced with the market share that Haygard has.

Diego Sacristan: Although we obviously see with the new innovation an impact for HAEGARDA, overall, the franchise is growing and the percentage of patients that we see coming off HAEGARDA are kind of balanced with the market share that HAEGARDA has. But very pleased with the trajectory of ANDEMBRY, and we see that continuing in 2027.

Speaker #5: We're very pleased with the trajectory of NDEMBRY, and we see that continuing in 2027.

Speaker #7: Okay. Thank you.

Sacha Krien: Okay, thank you.

Speaker #4: Once again, if you would like to ask a question, please press star one. Our next question comes from Christine Trent from Macquarie. Please go ahead with your question.

Operator: Once again, if you would like to ask a question, please press star and 1. Our next question comes from Christine Trinh from Macquarie. Please go ahead with your question.

Speaker #6: Good morning, everyone, and thank you for squeezing me in. I know we're running over time. Just piggybacking off the previous question on price, we said current price dynamics are stable.

Christine Trinh: Good morning, everyone, and thank you for squeezing me in. I know we are running out of time. Just piggybacking off of a previous question on price, where you said current price dynamics are stable. It seems like there are a number of new IG products, label expansions across your competitors, and potentially some hospitals under pressure with the 340B changes over the next 12 months. Just keen to hear your thoughts on how, I guess, pricing competition may intensify over the medium term, especially in the US.

Speaker #6: It seems like there are a number of new IG product label expansions across your competitors, and potentially some hospitals under pressure with the 340B changes over the next 12 months.

Speaker #6: I'm just keen to hear your thoughts on how pricing competition may intensify over the medium term, especially in the US.

Speaker #8: Sure, happy to take that question. This is Diego. So first, starting with the second part of your question—the 340B dynamics—340B is a very complex and wide topic.

Diego Sacristan: Sure. Happy to take that question. This is Diego. First, starting with the second part of your question, the 340B dynamics. 340B is a very complex and wide topic, but probably you have heard about the reform that CMS is putting forward in terms of reimbursement, and that reform actually is not material to CSL. The reason for that is that, first, it does not change the price that we sell 340B volume to, but also is looking at the reimbursement to 340B institutions on the outpatient volume that is a small portion of IG 340B volume overall. In terms of the broader price dynamics, what we see is a market that is robust and a set of players that are recognizing in the IG space the value of IG to patients. We see broadly a flat price, and we see the growth coming from volume moving forward.

Speaker #8: But probably you've heard about the reform that CMS is putting forward in terms of reimbursement, and that reform actually is not material to CSL.

Speaker #8: And the reason for that is that the first 'is' doesn't change the price that we sell 340B volume to, but also is looking at the reimbursement to 340B institutions on the outpatient volume.

Speaker #8: That is a small portion of IG 340B volume overall. In terms of the broader price dynamics, what we see is a market that is robust.

Speaker #8: And there is a set of players that are recognizing in the IG space the value of IG to patients. So we see, broadly, a flat price.

Speaker #8: And we see the growth coming from volume moving forward.

Speaker #6: Thank you.

Christine Trinh: Thank you.

Speaker #4: There are no further questions at this time, so I'll hand the floor back over to Michelle for closing remarks.

Operator: There are no further questions at this time. I will hand the floor back over to Michelle for closing remarks.

Speaker #1: With no further questions, we will now close the meeting. Thank you for your interest in CSL.

Michelle Rees: With no further questions, we will now close the meeting. Thank you for your interest in CSL.

Operator: That does conclude our conference for today. We thank you for participating. You may now disconnect your lines.

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