CSL Limited: Report Writing Sample

Executive Summary

This report presents critical financial management information for CSL Limited. The report is divided into five sections focusing on different aspects of the company and its approach to financial management. The first section looks into the company and the industry in which it operates. The section also gives a brief overview of the company’s core business activities, including the products and services it engages in. The second section focuses on corporate governance practices. A focus is given to the size of the board, CEO duality, and other member boards. The third section focus on the company’s capital structure practices. In this section, the report presents the primary sources of capital, long-term financing sources, and debt management. The fourth section looks into capital expenditure practices and a brief overview of the company’s investment strategy and techniques. The last section focuses on distribution decisions relating to dividends findings.

Understanding the Firm and its Industry

CSL Limited (CSL) is a biotechnology company with a global outreach. It focuses on developing and delivering innovative medical-related solutions such as medicines that save lives and protect the general public health (Mornigstar, 2022). It also focuses on developing innovative medical solutions that can assist people with severe or dangerous medical health statuses to live a whole life. Besides designing and delivering innovative solutions, CSL Limited is also involved in the research and development, production, promotion, and supply of pharmaceutical and related products.

The company’s approach to business consists of two business models – Seqirus and CSL Behring. Seqirus is primarily invested in the prevention of influenza internationally (Yahoo Finance, 2019). Seqirus also partners with other companies and stakeholders in the preparedness for pandemics. On the other hand, CSL Behring is an international leader in the development and delivery of quality medical solutions targeting individuals with serious or rare conditions (CSL Limited, 2022). Moreover, it is involved in researching, developing, and marketing plasma products and plasma therapies. Both Seqirus and CSL Behring enjoy global outreach in more than 120 countries.

Towards the end of 2021, the company announced its decision to acquire Vifor Pharma Limited. Based on the notes from the company’s finance department, the acquisition was financed mainly by cash proceeds from the $4 billion 144A “Reg S” market. In April 2022, CSL Limited reported a Net Profit After Tax (NPAT) of $1,760.3 million during the half-year ended 31st December 2021 (Mornigstar, 2022). This was a 2.75% decrease from the previous year during the same period. The company’s revenues from ordinary activities were $5,807 million – a 4% increase from the prior year.

Corporate Governance

CSL Limited is governed by directors, a board of management, and substantial shareholders. The company’s Chief Executive Officer (CEO) is Mr. Paul Perreault. He exercises the CEO duality as he also serves as the company’s Executive Director and Managing Director. The board of management consists of nine members serving in different capacities, such as Executive Vice President (VP), Chief Finance Officer (CFO), Chief Operating Officer (COO), Chief Financial Officer (CFO), etc. (CSL Limited, 2022). The main objective of the company’s board and management team is to maintain high and sustainable standards relating to corporate governance through strategic planning, risk management, corporate responsibility, and transparency.

CSL Limited’s remuneration framework has changed over the years. The current structure was adopted in 2017. It has effectively incentivized and rewarded the company’s executives with meaningful equity levels (CSL, 2021). In 2021, the company reviewed the structure to align it with Total Reward Principles. The new structure increased the maximum STI to 200%. The structure also focuses on securing other benefits such as the LTI vesting period and mental health coverage for employees’ mental health conditions. The structure heavily borrows from the global remuneration framework. Therefore, it is based on market approaches that offer competitive rewards with a balance of both local and international perspectives. Compensation and bonuses are also based on performance with respect to role requirements and how individual people within the company perform. The current compensation structure is also based on the “equal pay for equal work” approach.

In 2022, CSL Limited decided to compensate Mr. Perreault with a fixed reward of 3% with a zero change to Short Term Incentives (STI) or Long-Term Incentives (LTI). This represented the only raise that Mr. Perreault has received since September 2015. The current CEO’s remuneration in the company is below the global industry median (CSL, 2021). However, the company board believes that Mr. Perreault’s total compensation may increase in the future with an opportunity for an STI increase from 180% to 240%. The current salary for other top executives was raised to a fixed reward. The company’s board and committee were also compensated based on the target opportunities in the future.

Capital Structure

The company holds cash and cash equivalents mainly to meet short-term financial commitments rather than investing or using them for other purposes. This forms the company’s first financing option. The company’s cash and cash equivalents entail of cash at hand, investments in the money markets tools (with an original maturity of 6 months or fewer), and call deposits with banks (CSL, 2021). The financial instruments used by the company are readily exchangeable to certain cash amounts with an insignificant risk of change in value. With respect to the company’s cash flows, money at the end of the year is equivalent to the overdraft or borrowed amounts in the bank. Cash flows are illustrated on a gross basis. Cash flows mainly from investment and other funding happenings recoverable from or due to the tax authority are also treated as part of the company’s cash flows.

The company’s total debt amounts to $7.7 million. Long-term debts equal $7.09 million with 39% of the debt. When managing capital, the group aims to safeguard its “going concern” ability while availing returns to the company’s shareholders and other benefits to key stakeholders such as the board and employees. It also focuses on preserving a capital structure with the ability to reflect a sensible level of debt or associated funding (CSL, 2021). In that respect, the company aims to decrease the cost of capital without significantly upsetting the credit margins it applies to debt funding.

The company’s trade along with other payables represents amounts indicated as notional that are primarily payable to the providers for goods or services are given to the company before the close of the financial year (Mornigstar, 2022). With respect to CSL limited, trade and other receivables are non-interest-bearing leverages and are associated with the different terms of payment. Therefore, they are honored with thirty to sixty days.

Capital Expenditure

CSL Limited has a wide range of capital expenditures associated with its financial position. The company’s recent financial report indicated that capital expenditure includes elements such as license agreements, payments for properties, equipment, or plants, and payments for intangible commitments. For the year ending 2021, the company’s commitment toward capital expenditure totaled $1,367.6 million (CSL, 2021). During this period, CSL Limited paid $1,206.8 as the corporate’s consolidated payments for property, equipment, and plant. The company also paid $160.8 as a commitment toward intangibles. According to the company’s financial report for the year ending 2021, other segment information relating to capital expenditure is not captured in the financial statements. This includes items such as leases and other trivial commitments incurred not later than one year or later than one but not later than five years—total commitments for this segment amount to $544.3.

In June 2020, CSL Limited acquired Vitaeris Inc. with 100% of the share capital. The upfront capital commitment towards the acquisition was $20 million. The acquisition was also accompanied by other contingent capital commitments subject to the development and achievement of the outlined milestones. During the end of the financial year ending 2021, the company made the final commitment of total purchase price accounting for the acquisition of Vitaeris Inc. This means that the acquisition of Vitaeris Inc. was provisionally accounted for on June 30th, 2020 (CSL, 2021). Details regarding the consideration of the purchase along with the finalized fair values of the net assets acquired together with goodwill during the date of purchase. The reasonable value of the total assets acquired totaled $298.8. After the purchase accounting was finalized, the prospects and probable timing applicable to the reliant payments have been attuned to mirror a final view of the probability and timing of costs based on the facts in existence at the time of acquisition. As a result, this increased the fair value of contingent contemplation along with the cost of intellectual property.

Distribution Decisions

The company’s dividends are paid from retained earnings and profits of CSL Limited, which is the parent company of the group. During the financial year ending 2021, the parent company reported a profit of $106.1 million. The company’s retained earnings as of 30th June were $6,854.4 million. During the same period, $958.0 million was distributed to the shareholders in the form of dividends. A further $537.0 million was determined as dividends that were to be paid subsequent to the balance date. The company’s final ordinary dividend was $1.07 per share, unfranked, and was paid on 9th October 2020, for the financial year ending 2020. The company’s ordinary dividend was $1.04 and was paid on 1st April 2021 for the financial year ending 2021. The company’s final dividend for the year ending 2021 was $1.18 per share. This was based on the shares on issue at the date of reporting. The aggregate amount of the proposed dividends largely depends on the actual number of shares available to be issued at the dividend record date.

The distribution of dividends with respect to the 2021 financial year represented a $2.22 dividend paid during the same period for each ordinary share held by each shareholder. The company’s distribution of main and Diluted Earnings Per Share (EPS) was calculated using net or total profit for the year of $2,375.0 million. Diluted earnings per share differ from the basic earnings per share as the calculations considered the possible ordinary shares rising from the worker share structures wrought by the company. For CSL Limited, ordinary shares are categorized as equity. The increased costs directly ascribed to the allocation of new shares are shown in the form of equity along with the deductions and net tax from the company’s proceeds. When the company decides to take or reacquire its shares (such as through share buy-back), such shares are usually canceled. As a result, no gain or loss is recognized in the profit or loss along with the consideration rewarded to obtain the shares. This includes any straight attributable operation cost of net income taxes, which are directly recognized as a decrease in equity.

Conclusion

As a global company, CSL Limited has been successful in many aspects. Such include technology and innovation and the development of medical solutions. Success in these areas has been heavily supported by sound financial management that seeks to reward both shareholders and key stakeholders. With respect to shareholders, the company focuses on paid dividends at the end of the financial year. The dividends are often obtained from the company’s retained earnings. For key stakeholders such as executives, managers, and employees, compensation is based on total reward policies that consider various factors to determine the final pay. To a large extent, compensation policies are also based on the performance of each stakeholder. Critical company expenditure includes payments for leases, property, plant, equipment, and other intangibles. The company is also involved in additional capital expenditures such as acquisitions.

References

CSL. (2021). CSL Limited Annual Report 2020/21. CSL Limited.

CSL Limited. (2022). Corporate Governance. Retrieved from CSL: https://www.csl.com/our-company/corporate-governance

CSL Limited. (2022). Our Company: Driven by Our Promise. Retrieved from CSL Limited: https://www.csl.com/our-company

Mornigstar. (2022). Business Summary and Company Profile: CSL Limited – CSL. Morningstar.

Yahoo Finance. (2019, May 16). Why CSL Limited’s (ASX:CSL) CEO Pay Matters To You. Retrieved from Yahoo Finance: https://finance.yahoo.com/news/why-csl-limiteds-asx-csl-213315191.html

Culinary Arts And Why They Are Important Free Essay

Culinary arts refers to the preparation, cooking, and serving of foods at different levels of life, be it on a professional or domestic level. It involves a thorough study of the culinary arts field and practical activities. It focuses on both the taste of the food and how good the food looks. Culinary arts have developed over the past from a simple and primitive mode of cooking to modern art. Today foods are a component of different ingredients, diet, taste, and even design to suit the needs of consumers, especially in the hospitality industry. The art refers to how efficient a professional performs in the kitchen, including the ability to create new meals, safety in the kitchen, ability to cook nutritious foods, and many more (Ekincek, Sema, and Semra, p. 110)

The main reason people prepare meals is for the sustainability of life. Culinary arts play a part in ensuring that humans don’t starve. Food is a basic need, and culinary arts provide a means through which we sustain life. Apart from the role of sustenance of life, culinary arts has diversified recently to provide additional benefits to customers and professionals taking part in it. Studying or undertaking culinary arts is important since cooking is a form of art, and individuals in the culinary industry learn to appreciate it. It allows customers to recognize the cooking skills of the professionals in the industry. Just like painting requires different preciseness and skills, culinary also employs a variety of skills to produce a final product in the food with aroma, taste, and nutrients. The cooking skills allow professionals to be careful while preparing, cooking, and serving food to satisfy customers’ needs.

Studying culinary arts helps recognize different cultures (Gillis, Whibbs, and Li, p.72). Food and culture often go together since different cultures, people cook diverse meals and have multiple ways of cooking them to give a unique taste. Culturally recipes are passed down from one person to the other. Culinary arts will shed light on how such foods are prepared and served. Understanding people’s cultures through food will help spread an appreciation of cultures to different people and thus promote cohesion and shunning discrimination. It is also a new form of spreading love to customers. Professional chefs provide meals that customers appreciate while they are away from home.

Promotion of healthy living. Nutrition is an area of interest today, especially where lifestyle diseases have become prone and forced people to want to eat and live healthily. Therefore culinary programs have incorporated nutrition to promote a healthy lifestyle. Recently, chefs have emphasized the provision of healthy foods to their customers. They cook and serve foods that are delicious, healthy, and nutritious. Restaurants today are moving towards more vegetables and fruits meals which is different from before when fries and meat products were in demand. Through programs such as farm-to-table in notable food joints and restaurants, it promotes environmental awareness and responsibility to their customers.

Being a culinary arts professional can offer an opportunity to travel the world and explore different countries or regions. Qualifying as a chef can allow you to apply for a job anywhere. While traveling around the world for work purposes, this could be an opportunity to gain new experiences of different places. Traveling in the process of working as a professional chef in many parts of the country and world opens one to diverse people.

Opportunity to learn from different professionals in the same field. Being in the culinary arts profession gives an individual a chance to learn not from one but many other professionals with different skills and abilities. Learning from different professionals offers multiple sets of skills to an individual. At the same time, it has an overall positive impact on your career as a chef.

Generally, culinary art is an important field that will help someone expand their boundaries in different ways. Professional interaction does not only offer you an opportunity to become a professional. It promotes appreciation of diverse foods subject to art, culture, adventure, and health that customers receive through culinary skills and efforts. Culinary arts are also a crucial part of sustaining life and thus continuity. It is a fun profession as it enables individuals to learn and enjoy at the same time through interaction with others and also credit in quality service delivery to others.

Works Cited

Ekincek, Sema, and Semra Günay Aktaş. “An Evaluation of Chefs’ Views on the Culinary Arts and Design Processes.” Heritage Tourism Beyond Borders and Civilizations. Springer, Singapore, 2020. 101-113.

Gillis, L., R. Whibbs, and A. Li. “Future chefs’ beliefs on the role of nutrition, diet, and healthy cooking techniques in culinary arts training for foodservice: a cross-cultural and gender perspective.” Journal of Culinary Science & Technology 20.1 (2022): 71-85.

TV Show: The Jeffersons Essay Example For College

The Jefferson television show can be classified as an American television series broadcast on CBS for eleven years. The Jefferson show started in the year nineteen seventy-five to the year nineteen eighty-five, creating content for around eleven seasons; that is two hundred and fifty-three episodes of the television show. The show was created and focused on an African American couple known as George and Louise Jefferson. They had moved to Manhattan from Queens after George had successfully established Jefferson Cleaners, A dry cleaning chain of businesses. Jefferson’s family consists of his wife Louise and their son Lionel who was attending a local college for his major in engineering (Sebro, 2019). The show mainly revolved around the neighborhood in which they settled, where the series episodes mainly focused on alcoholism, racism, transgender, suicide, and adult illiteracy, among other issues found in the society. The whole series was organized and evolved around the situation comedy that featured different artists playing different episodes, thus aiding in the development of the television series.

Over the years, the series has been aired. The cast received numerous awards and fourteen Emmys award nominations, including bests actors and actresses in the comedy and Emmys award. The television series development was well panned and created where the events unfold each other continuously, which favored the show. The Jefferson dry cleaning job was introduced into the show in the third episode after the crater had introduced the main characters helping establish a firm foundation for the series. The entry and exit of characters in the series occur in a carefully planned manner that leads to different incidents and continuation of incidents where the viewers are not left in the dark after watching the series (Joyrich, 2018). Throughout the series, George continuously faced challenges in his business due to the competition present in the market, like from the dry-cleaning franchise, which was hindering the expansion of George’s business. The series shows how people can outgrow each other and better themselves, like how at the being, George disliked Tom and his wife, Hellen Willis. Later, they formed a strong partnership at the end of the series, where they purchased their favorite hugging-out spot, Charlie’s bar.

The culture in the United States of America promoted the relationship between African Americans and white people and shaped the communication of the people in the country. This is seen in Jefferson’s television series, where George and his wife Louise are African American. At the same time, Tom Willis a white thus, communication between George and Tom faces different challenges. The first thing that hindered was the prejudice between the two characters in the Jefferson television series (Stamps, 2021). Prejudice refers to a preconceived opinion about another person without having any reason or experience to support your judgment about the other person. The prejudice that people had been established between the African Americans and the white people led to communication being difficult between the two parties as they did not trust each other. George dislikes Tom not because he has done anything to harm him or his family but because he was from the white community. This dislike hinders communication between George and Tom despite being neighbors who should be friends and ready to help each other in the hour of need.

The white people lived in isolation from the African American people, whereas African American people lived in poor regions. In contrast, the white people lived in the secure regions of the United States of America. The shifting from Queens to Manhattan place known for the rich, must have caused conflict between Tom and George as they were neighbors. Tom did not like the idea of an African American family living next to him. Since Manhattan was a new environment to George and his family thus making it was hard for them to settle down in the white people region. The white people viewed the African Americans as criminals and thus felt insecure around them, and this is likely to affect communication between George and Tom. George did not support marriage between white people and African Americans like Tom and Hellen marriage, as he believed marriage should occur between people from the same race. Divorce and separation of George’s son Lionel and Jenny, who was Toms’s daughter, affected the relationship between the two families united through marriage, resulting if communication challenges. This caused a strain between the two families as they both wanted what was best for their children despite not having any say in the marriage. Communication existed as George and Tom could not communicate with each other as a sign of supporting their children’s decisions despite their granddaughter Jessica being involved.

George is a boastful man in the society and the neighborhood since he has established his chain of dry-cleaning businesses, thus making him unapproachable to talk. Being boastful in his work does not favor him as he is bound to look down on other businesses or jobs and compare the two. Despite this, he learned that business success is not a guarantee of happiness or everyday life, but he should be humbled as his success is from the community. Being humble with help reduce the change of communication between him and Tom as he is approachable and ready to listen to the suggestions and recommendations to improve his business operations.

The experiences George and Tom experienced in the society as they were completely different people living in one environment. In the Jefferson television series, Tom experiences Vary from George’s experiences, thus affecting the type of communication. They all talk about the negative experiences they have experienced from the white or African American people (Joyrich, 2018). Tom’s communication may dwell on how the region where African American are living are characterized by high crime rates and drug and substance abuse and how the white people are not treated well by the African American. George’s communication revolves around the racism he experiences in his daily operations, especially when running a successful chain of dry-cleaning businesses. Tom and George’s communication in the series of ills revolve around the ills of the other person, thus hindering any meaningful communication that would have occurred.

The line of operations between Tom and George varied, leaving them to have the type of communication that would link them in having the conversation. Each person’s activities limit the type of communication due to talk poof common goals established that connect them. George’s primary communications revolved around his businesses and family, while Tom revolved around his family, thus lacking a common thing joining them. The communication could have been excellent when their children married each other thus could have heard communication because they were connected. The connection broke when their children divorced, forcing Tom and George to cut out any communication with each other as they had to support their children’s divorce. Family communications are meant to create a tremendously strong bond for the family members and the future generation to show them the importance of growing up in a family that bonds together through good communication.

In conclusion, Jefferson’s television show talks about the issues facing African Americans while they strive to succeed in their businesses and work. Racism is a constant issue that people are addressing in the United States of America; it affects many people among the minority, and the television show helps disclose how racism occurs. For communication to occur effectively, people must forget the differences that have been implanted by society about other people and not allow prejudice to affect communication. The family joins different people from the different communities, thus unifying the society, like how Tom marrying Hellen unified the white and African American people, thus eliminating the prejudice that affects the society. We should learn to leave with each other and respect other people’s onion and cultures, thus creating harmony (Sebro, 2019). Identifying the ills happening in society in the television show helps create awareness of what is happening in society. People can develop different ways to develop strategies that will aid in fighting the identified issues. Divorce destroys the united families joined together, thus affecting how the family functions, especially where the divorced couple has children. Parents are forced to take sides in the divorce to support their children despite knowing the consequences they will have on them. Parents should educate people that marriage is not a smooth journey and should learn to embrace each other strengths and weaknesses and build each other.

References

Joyrich, L. (2018). American Dreams and Demons: Television’s “Hollow” Histories and Fantasies of Race. The Black Scholar48(1), 31-42.

Sebro, A. P. (2019). Scratchin’and Survivin’: Hustle Economics, Gender Politics, and Creative Dissent in the Black Sitcoms of Tandem Productions (1972-1975). University of California, Los Angeles.

Stamps, D. L. (2021). B (l) ack by popular demand: An analysis of positive Black male characters in television and audiences’ community cultural wealth. Journal of Communication Inquiry45(2), 97-118.

error: Content is protected !!