Slide 1: HY17 Result Presentation and Result Highlights
2/14/2017 HY17 Result Presentation 14 February 2017 Chris Smith Chief Executive Officer & President Neville Mitchell Chief Financial Officer HY17 – Result highlights Positive momentum continues across all markets • Cochlear implant units 10% (16% excl Chinese Central Government tender) • ~10% unit
Slide 2: FY17 guidance maintained; Hearing loss market opportunity
2/14/2017 FY17 guidance maintained FY17 net profit guidance maintained at $210-225m, up ~10-20% on FY16 at 75c AUD/USD ~10-20% Adjusted net profit excludes patent dispute provision of $15.8 million after tax in FY14 3 Hearing loss market opportunity Over 5% of the world’s population - 360 million pe
Slide 3: Cochlear's mission; Strategic platforms
2/14/2017 Cochlear’s mission We help people hear and be heard. We empower people to connect with others and live a full life. We transform the way people understand and treat hearing loss. We innovate and bring to market a range of implantable hearing solutions that deliver a lifetime of hearing out
Slide 4: Cochlear implants; Acoustics
2/14/2017 Cochlear implants Market-leading products and investment in market growth initiatives drive demand Cochlear implant unit growth 10% • Unit growth up 16% (excl Chinese Central Govt tender units) • Developed markets up ~10% – continuing strong growth in the US & Western Europe • Emerging m
Slide 5: Services; Americas
2/14/2017 Services (upgrades & accessories) Lifetime relationship with > 450,000 recipients Sales revenue 3% in CC • CC sales revenue up ~6% in Americas and EMEA driven by ongoing demand for N6 sound processor • N6 upgrade penetration of 26% (33% in developed countries) v 22% in Jun16 • Expanded g
Slide 6: EMEA; Asia Pacific
2/14/2017 EMEA (Europe, Middle East & Africa) New products and portfolio affect driving consistent growth Sales revenue 6% in CC • Western Europe unit growth of ~10% • Central & Eastern Europe units up >30% • CC impact from devaluation of GBP Growing market presence • Kanso and CI532 full market r
Slide 7: Financial highlights
2/14/2017 HY17 Result Presentation 14 February 2017 Neville Mitchell Chief Financial Officer Financial highlights • Sales revenue up 4% in Australian dollars (8% in constant currency) to $604m • Continued investment in market growth initiatives driving top line growth • Net profit up 19% to $111m •
Slide 8: Profit & loss; Impact of foreign currency
2/14/2017 Profit & loss Net profit of $111m, up 19% A$m HY17 HY16 change Sales revenue 604.4 581.7 4% FX contracts loss 4.8 (23.6) Total revenue 609.2 558.1 9% EBIT 156.4 131.0 19% EBIT margin % (EBIT / total revenue) 25.7% 23.5% 2.2 pts Net finance costs (3.4) (4.7) 28% Taxation expense (
Slide 9: Cash flow; Net debt
2/14/2017 Cash flow Earnings growth drives 50% uplift in free cash flow A$m HY17 HY16 $ chg EBIT 156.4 131.0 25.4 Depreciation and amortisation 16.0 16.3 (0.3) Change in working capital and other (29.1) (19.4) (9.7) Net interest paid (3.3) (6.3) 3.0 Income taxes paid (37.7) (48.1) 10.4 Operating cas
Slide 10: Dividends; FY17 outlook
2/14/2017 Dividends Interim dividend up 18%, fully franked, representing 67% payout of first half net profit A$m HY17 HY16 % chg Interim ordinary dividend $1.30 $1.10 18% Payout ratio % 67% 67% Franking % 100% 100% 19 FY17 outlook FY17 net profit guidance range maintained at $210-225m, up ~10-20% on
Slide 11: Disclaimer
2/14/2017 Disclaimer Non-IFRS financial measures Given the significance of the 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 performance of the business. The non-IFRS financial meas