Slide 1: Results for the full year ended 30 June 2013 (F13)
Cochlear Limited For personal use only Results for the full year ended 30 June 2013 (F13) Chris Roberts, CEO Neville Mitchell, CFO Cochlear Overview • Cochlear Limited (ASX:COH) is the global leader in implantable hearing devices e.g. cochlear implants • ~ 2,700 employees • Direct operations in 20+
Slide 2: Cochlear: Financial Results for F13
Cochlear: Financial Results for F13 For personal use only F13 F12 % $m $m Change Cochlear implant sales 636.4 626.7 Ç2% Bone Anchored Solutions (BAS) sales 78.6 77.9 Ç1% FX Contracts Gains 37.7 74.4 È49 % Total Revenue 752.7 779.0 È3% EBIT 178.9 215.3* È17 % Net profit after tax 132.6 158.1* È16 % P
Slide 3: Cochlear Implant Unit Sales and BAS Sales
Cochlear: Cochlear Implant (CI) Unit Sales For personal use only • F13 CI unit sales up 16% to 26,674 units • CE Mark approval for asymmetrical hearing, including unilateral hearing loss. H2 • Growth in CI unit sales in all regions – global market share around 65% H1 Cochlear: Sales of Bone Anchored
Slide 4: F13 Regional Split of Sales; Cochlear Americas
Cochlear: F13 Regional Split of Sales For personal use only EMEA1 Americas 40% 40% CC2 growth Ç3% CC growth È5% Asia Pacific 20% CC growth Ç24% 1 EMEA is Europe, Middle East and Africa 2 CC is constant currency Cochlear Americas: Sales in Constant Currency • Americas sales of $284.4 million, down 5%
Slide 5: Cochlear EMEA and Asia Pacific Sales
Cochlear EMEA: Sales in Constant Currency For personal use only • EMEA (Europe, Middle East and Africa) sales of $283 million, up 3% in constant currency • CI sound processor upgrade H2 sales down $4.9 million • Deferred revenue on FTEP of $1.8 million • CE Mark for Nucleus 6 was received in August
Slide 6: Operating Margins
Operating Margins For personal use only COGS to Sales • COGS to Sales of 29.1% (28.9% in F12) • FX contract gains down $36.7 million • Operating expenses of $365.8 million up 1% EBIT to Total Revenue • EBIT of $178.9 million down $36.4 million on F12 • EBIT to Total Revenue (Sales + FX contracts) of
Slide 7: Cochlear Hybrid System
Cochlear Hybrid System For personal use only • An original PMA has been filed in the USA for a hybrid cochlear implant system • Combined cochlear implant and hearing aid • Expanding cochlear implant indications allowing recipients to benefit from residual hearing. 7
Slide 8: Innovations; Cochlear F13 Overview
Innovations For personal use only CR120 Intraoperative Remote Assistant Remote Assistant Fitting Nucleus Fitting Software Carina MET Acoustic Implant Carina Acoustic Implant Codacs Acoustic Implant Cochlear F13 Overview • Record CI unit sales of 26,674 up 16% • Total revenue of $752.7 million down 3
Slide 9: F13 Financial Results
For personal use only Molly’s Day Video Cochlear Limited F13 Financial Results Neville Mitchell, CFO 9
Slide 10: Cochlear F13 Financial Performance
Cochlear F13 Financial Performance For personal use only F13 F12 % Change $m $m Total Revenue 752.7 779.0 È 3% EBIT * 178.9 215.3* È 17% Net Profit after Tax 132.6 158.1* È 16% Product Recall Costs, net of tax - 101.3 Net profit attributable to members 132.6 56.8 Ç 133% Dividends Final Dividend 127c
Slide 11: Impact of Appreciating AUD on F13 NPAT
Impact of Appreciating AUD on F13 NPAT For personal use only A$m F/(U) Income Statement Translation Impact Sales Revenue (10.0) Difference F13 Total Expenses including tax 2.9 actual vs F13 at F12 rates (7.1) Transaction Impact Net difference - Decrease from F12 of FX gain on hedged sales (36.7) act
Slide 12: Cochlear F13 (Debt) / Cash
Cochlear F13 (Debt) / Cash For personal use only 30 June 30 June 2013 2012 $m $m Operations Loans and Borrowings Current (3.3) (45.7) Non-current (167.2) (19.9) Total Debt (170.5) (65.6) Cash 52.7 68.5 Net Cash (117.8) 2.9 Total Loan Facilities 300.0 200.0 Unused Portion of Facility 128.7 128.0 Coch
Slide 13: Thank you; FX Contract Cover and Rates
For personal use only Thank you Any questions? FX Contract Cover and Rates as at 30 June 2013 Total FX hedges at USD EUR JPY 30 June 2013 expressed in Foreign Currency (millions) 226.5 135.8 1,275 FX Hedges at 30 June 2013 Total Expressed in AUD millions 233.8 188.3 15.5 437.6 % of total cover (in A
Slide 14: Foreign Exchange
Foreign Exchange For personal use only Rates applied F13 vs. F12 F13 F12 % Change Average rates (used for translating P&L) USD 1.02 1.03 È 1% Euro 0.79 0.77 Ç 4% JPY 89.3 81.1 Ç 10% GBP 0.65 0.65 Ç 1% Contract rates (used to bring FX to Aust) USD 0.93 0.84 Ç 10% Euro 0.70 0.66 Ç 6% JPY 81.1 77.1 Ç 5
Slide 15: Property, Plant & Equipment; Corporate & Other Net Expenses
Property, Plant & Equipment & Leasehold Improvements For personal use only 30 June 2013 $m Gross value 30 June 2013 179.0 Accumulated depreciation (113.1) Net book value at 30 June 2013 65.9 F13 movements Additions 21.1 Depreciation (15.4) Disposals (1.0) FX Impacts 1.6 Corporate & Other Net Expense
Slide 16: Journal Entries for Deferred Revenue; Non-IFRS Financial Measures
Journal Entries for Deferred Revenue Relating to F13 FTEP Program For personal use only F13 $m Income Statement DR Sales Revenue 6.4 CR Cost of Goods Sold (0.5) CR Tax Expense (2.4) Profit Reduction 3.5 Balance Sheet DR Inventory 0.5 CR Deferred FTEP Revenue – Liability (6.4) DR Deferred Tax Asset 2
Slide 17: For personal use only
For personal use only 17