Slide 1: ASX cover letter: analyst presentation on plasma supply
4 August 2003 Mr James Gerraty Manager Listings Australian Stock Exchange Limited $30 Collins Street MELBOURNE VIC 3000 Dear Mr Gerraty CSL advises that its Managing Director, Dr Brian McNamee, will be making a presentation to financial analysts at 3.30 p.m. today relating to the future supply of pl
Slide 2: CSL Bioplasma and the Plasma Fractionation Agreement
Geils Bioplasma CSL Bioplasma and the Plasma Fractionation Agreement & -1- Innovative + Deckcated + Caring y
Slide 3: The Stephen Review (March 2001)
Geils Bioplasma The Stephen Review (March 2001) Safe, adequate, secure and affordable supply of blood and blood products for Australia Review: Safety and quality Management and governance System wide decision making processes Self sufficiency Role of the National Fractionator 2 ¥ -2- Innovative + De
Slide 4: Key recommendations for plasma products
Geils Bioplasma Key recommendations for plasma products * Reaffirmation of the policy of Self Sufficiency — Voluntary donors — Products provided free to all patients * Establish a National Blood Authority — Provide national management and oversight — Ensure efficiency and equity * Retention of CSL a
Slide 5: 2003 Update
Geils Bioplasma 2003 Update * Governments move forward with implementation of key Stephen recommendations * National Blood Agreement — Commonwealth, States, Territories * National Blood Authority Established — | July 2003 & -4- Innovative + Deckcated + Caring
Slide 6: PFA Update
Geils Bioplasma PFA Update * Governments considering a range of complex issues — roll out of national arrangements — transition to NBA * Expectation of a new agreement similar to the PFA * CSL - NBA actively engaged in discussions to ensure continuity of supply into the future & -5- Innovative + Dec
Slide 7: Proud record...one of the safest and secure blood systems in the world
Geils Bioplasma “Proud record...one of the safest and secure blood systems in the world” —serey * Safe system — Voluntary donor system — Comprehensive screening - ARCBS/CSL — World leading plant * Chromatographic based production — Segregation of chromatographic gels — Full traceability from donatio
Slide 8: Category one BSE risk country
Category one BSE risk country Gath - Highly Untikely Australia, New Zealand, Singapore, Norway Canada, India, Pakistan, Sweden, USA Austria, Albania, Belarus, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, iceland, Israel, Italy, Japa
Slide 9: Australia's interests are safeguarded
Geils Bioplasma Australia’s interests are safeguarded * Dedicated capacity | * Shield against supply crises * Certainty of supply * Security of supply chain * TGA as the determining regulator * Planning and preparedness for unforeseen events * CSL governance & -8- Innovative + Deckcated + Caring
Slide 10: Extensive range of products from Australian donor plasma
Extensive range of products from Australian donor plasma Hane Bioplasma Adequacy F CSL Product Use Intragam P Immunodeficiency Albumex Burns, shock Normal Immunoglobulin Prevention of infections Hepatitis B Immunoglobulin Tetanus Immunoglobulin Zoster Immunoglobulin Cytomegalovirus Immunoglobulin Pr
Slide 11: Meets evolving clinical need
Geils Bioplasma Meets evolving clinical need Adequacy * Redeveloped product range based on “superior” chromatography * Continued improvements in viral safety * World’s best IVIG — driver of plasma requirements from ARCBS — yield optimised to meet increasing clinical need * Customised products — Bios
Slide 12: Intragam P is a world leading IVIG
Hane Bioplasma Intragam P is a world leading IVIG Adequacy : Specific Vi Viral Inactivation Steps Manufacturer _ Product Form : - - : - -_ enveloped viruses : -_non-enveloped. and only — enveloped viruses _ CSL Intragam P liquid { lLowpH ¢ Pasteurisation ZLB Sandoglobulin NF powder Jf \lowpH é Nanof
Slide 13: Basis of the price arrangements in the original Agreement
Geils Bioplasma Basis of the price arrangements in the original Agreement The pricing objectives in the negotiation of the original PFA were: — Recovery of costs with fair margin — Prices competitive with international benchmarks Model adopted with: — individual product prices — mechanisms to encour
Slide 14: The Agreement has mechanisms to deliver efficiency benefits and continued investment
Geils Bioplasma The Agreement has mechanisms to deliver efficiency benefits and continued investment Affordability | Two tier pricing: - All production beyond fixed volumes must be supplied at significantly lower, second tier prices - All growth is at second tier prices Productivity: - Mechanism to
Slide 15: Affordability must be assessed relative to the appropriate comparator
Geils Bioplasma Affordability must be assessed relative to the appropriate comparator Pee? ? —Aforcabiy Medical-marketing support, logistics, planning - Low volume, niche products - Scale limitations - Commercial restrictions National Fractionator: Superior Product Range: - Extensive product range -
Slide 16: Fractionation Economics
Hane Bioplasma Fractionation Economics Affordability | « Recovered plasma is by-product of producing fresh blood products Industry Revenue by Product Other 23% ¢ Strict joint products - most products can be extracted from the same unit of plasma without affecting the yield of others VIG 36% * Plasma
Slide 17: Affordability: IVIG price 2001
Affordability | USD/gram J approximate plasma value average price IVIG Price 2001 Japan USA Belgium Germany Australia UK Holland Sources: “Eurodata” MRB Mar 2002, “The Plasma Fractions Market in the United States” MRB June 2002 “The Plasma Fractions Market in Asia and the Pacific” MRB Jan 2002, CSL
Slide 18: Affordability: Plasma Derived FVIII price 2001
Affordability jf 0.70 5 0.60 5 0.50 5 0.40 5 USD/U 0.30 + 2 approximate plasma value average price 0.20 5 Plasma Derived FVIII Price 2001 0.10 5 Japan Holland USA Belgium > & G E & o Australia Sources: “Eurodata” MRB Mar 2002, “The Plasma Fractions Market in the United States” MRB June 2002 “The Pla
Slide 19: CSL's prices compare well, even to the US market
Hane Bioplasma CSL’s prices compare well, even to the US market Savings reduced due to currency movement and US price falls Annual Saving (AUD Millions) nN 1999/00 2000/01 2001/02 2002/03 Annual savings of obtaining Australian plasma product requirements at actual prices rather than US commercial pr
Slide 20: Conclusion
Geils Bioplasma Conclusion CSL’ view: ¢ Australia remains committed to the policy of self sufficiency, and retention of a National Fractionator ¢ CSL provides good value for money — broad responsibilities — high quality products — regulatory compliance — basket of products — dedicated capacity / pre
Slide 21: The End
Hane Bioplasma The End & - 20 - Innovative + Deckcated + Caring