Slide 1: Results for the full year ended 30 June 2014 (F14)
8/5/2014 Cochlear Limited For personal use only Results for the full year ended 30 June 2014 (F14) Chris Roberts CEO Neville Mitchell CFO Cochlear Overview • Cochlear Limited (ASX:COH) is the global leader in implantable hearing devices: • Cochlear/Hybrid implants • Bone conduction implants • Acoust
Slide 2: F14 Overview
8/5/2014 F14 Overview For personal use only Baha 4 Sound Processor • Launches across all product Baha® 4 categories Attract • F14 started without regulatory approvals in key markets for new products • Sales growth started in late H1, as Nucleus® 6 Nucleus Profile Sound Implant regulatory approvals w
Slide 3: Financial Results for H2F14 and F14
8/5/2014 Cochlear: Financial Results for H2F14 For personal use only H2F14 H2F13 % $m $m Change Cochlear implant sales 389.7 306.7 Ç27 % Bone Conduction/Acoustic sales 54.2 40.1 Ç35 % Sales Revenue 443.9 346.8 Ç28 % FX Contracts Gains (10.1) 14.2 Total Revenue 433.8 361.0 Ç20 % EBIT 100.2 70.6 Ç42 %
Slide 4: Sales in Constant Currency and CI Unit Sales
8/5/2014 Cochlear: Sales in Constant Currency (CC) For personal use only • F14 sales ↑15% to $820.9 million, ↑3% in CC • Sales momentum from H1 release of new products (eg Nucleus 6, Baha 4) continued into H2 • Cochlear implant sound processor upgrade sales was up 27% (to $108.0 million), ↑14% in CC
Slide 5: Bone Conduction/Acoustic Sales and Americas Sales
8/5/2014 Cochlear: Sales of Bone Conduction/Acoustic Implants in Constant Currency (CC) For personal use only • F14 bone conduction/acoustic implant sales of $100.1 million, ↑27% (↑13% in CC) • Baha 4 sound processor, and Baha Attract products were released in late H1, with sales growth through H2 •
Slide 6: EMEA and Asia Pacific Sales
8/5/2014 Cochlear EMEA: Sales in Constant Currency For personal use only • F14 EMEA (Europe, Middle East and Africa) sales of $358.5 million, ↑27% (↑10% in CC) • H2 F14 EMEA sales of $189.4 million ↑32% on pcp (↑17% in CC) • Nucleus Profile with Contour Advance electrode released in June • Dubai off
Slide 7: F14 Regional Split of Sales and Operating Margin
8/5/2014 Cochlear: F14 Regional Split of Sales For personal use only EMEA1: 44% Americas: 39% H2 CC2 growth Ç17% H2 CC growth Ç16% Asia Pacific: 17% H2 CC growth Ç13% 1 EMEA is Europe, Middle East and Africa 2 CC is constant currency and the comparison is to PCP H2 F14 operating margin improved • CO
Slide 8: Cochlear Nucleus and Bone Conduction and Acoustic Implants
8/5/2014 Cochlear Nucleus 6 For personal use only • SmartSound® iQ • Smallest processor • Data logging • Waterproof with Aqua+ accessory • Hybrid hearing • Wireless ready Bone Conduction and Acoustic Implants • Baha 4 Sound Processor: automatic scanning and true wireless connectivity • Baha 4 Attrac
Slide 9: F14 Summary
8/5/2014 F14 Summary For personal use only • New products released in all categories • These were well received by health care professionals and recipients • Sales up 15% to $821 million, with H2 sales of $444 million, up 18% on H1 and 28% on H2F13 • H2 NPAT of $72.7 million, met NPAT guidance • F14
Slide 10: Cochlear F14 Financial Performance
8/5/2014 Cochlear F14 Financial Performance For personal use only $m F14 F14 F14 F13 % H1 H2 Change Sales Revenue 377.0 443.9 820.9 715.0 Ç 15% FX Contracts (5.9) (10.1) (16.0) 37.7 Total Revenue 371.1 433.8 804.9 752.7 Ç 7% EBIT * 49.4* 100.2 149.6* 178.9 È 16% Net Profit after Tax* 36.8* 72.7 109.
Slide 11: H2 F13 NPAT to H2 F14 NPAT; FX Impact
8/5/2014 H2 F13 NPAT to H2 F14 NPAT For personal use only AUD Millions Impact of Changing FX Rates on F14 NPAT A$m F/(U) Income Statement Translation Impact Sales Revenue 82.1 Difference F14 Total Expenses including tax (40.3) actual vs F14 at F13 rates 41.8 Transaction Impact Net difference - Decre
Slide 12: F14 Working Capital and Debt/Cash
8/5/2014 Cochlear F14 Working Capital Inventory (Days Stock Held) / Debtors Days Outstanding For personal use only • F14 Inventory days decreased to 189 (F13 231 days) • Debtor days 74 (F13 80 days) • Trade receivables at $201.3 million (F13 $187.6 million) Cochlear F14 (Debt) / Cash 30 June 30 June
Slide 13: F14 Summary - Thank you, any questions?
8/5/2014 F14 Summary For personal use only • New products released in all categories • These were well received by health care professionals and recipients • Sales up 15% to $821 million, with H2 sales of $444 million, up 18% on H1 and 28% on H2F13 • H2 NPAT of $72.7 million, met NPAT guidance • F14
Slide 14: FX Contract Cover and Rates as at June 2014
8/5/2014 FX Contract Cover and Rates as at 30 June 2014 For personal use only Total FX hedges at USD EUR JPY 30 June 2014 expressed in Foreign Currency (millions) 207.5 128.3 1,350 FX Hedges at 30 June 2014 Total Expressed in AUD millions 227.6 188.7 15.6 431.9 % of total cover (in AUD) 53% 43% 4% 1
Slide 15: Foreign Exchange; Property, Plant & Equipment
8/5/2014 Foreign Exchange For personal use only Period end rates applied F14 vs. F13 30 June 30 June % change 2014 2013 Period end rates (used for translating Balance Sheet) USD 0.94 0.93 Ç 1% Euro 0.69 0.71 È 3% JPY 95.5 90.7 Ç 5% Property, Plant & Equipment & Leasehold Improvements 30 June 2014 $m
Slide 16: Corporate & Other Net Expenses
8/5/2014 Corporate & Other Net Expenses For personal use only F14 F13 $m $m Research and Development 126.2 123.5 Corporate Administration & Global Marketing 67.6 59.1 Corporate Other Income (2.7) (2.6) FX losses 3.1 2.5 Corporate and other net expense (note 3) 194.2 182.5 Journal Entries for Deferre
Slide 17: Non-IFRS Financial Measures
8/5/2014 Non-IFRS Financial Measures For personal use only Non-IFRS financial measures Given the significance of the patent dispute and FX movements the directors believe the presentation of non-IFRS financial measures is useful for the users of this document as they reflect the underlying financial