Slide 1: Cochlear Limited 2010 Annual General Meeting
For personal use only JODI ALLION (mother) LEAH, Miami, USA Cochlear Limited 2010 Annual General Meeting Australia Ball Room Menzies Hotel Sydney 14 Carrington Street Sydney NSW Tuesday 19th October 2010
Slide 2: Chairman and Company Secretary
Mr Rick Holliday-Smith - Chairman For personal use only Mr Neville Mitchell – Company Secretary
Slide 3: CEO and Director
Dr Chris Roberts – Chief Executive Officer / President For personal use only Prof Ed Byrne AO – Director
Slide 4: Directors
Mrs Yasmin Allen - Director For personal use only Mr Paul Bell - Director
Slide 5: Directors
Mr Donal O’Dwyer - Director For personal use only Mr Andy Denver - Director
Slide 6: Proceedings
For personal use only Proceedings • Chairman’s Address • CEO’s Address • Formal Resolutions
Slide 7: Chairman's Address: Introduction
Cochlear Limited For personal use only 2010 Annual General Meeting Mr Rick Holliday-Smith, Chairman’s Address Introduction • Record revenue, unit sales, profit and cash generation • In a climate of: – Global economic uncertainty – Extreme volatility in foreign exchange markets
Slide 8: Record financial results for F10
Cochlear: Record financial results for F10 For personal use only F10 F09 $ millions $ millions +% Cochlear Implants 603.7 614.0 È 2 Bone Anchored (Baha) 92.5 97.8 È 5 FX Contracts 38.6 (17.1) Revenue 734.8 694.7 Ç 6 EBIT 220.5 183.3 Ç20 Net Profit After Tax 155.2 130.5 Ç19 EPS 275.7 cps 233.7 cps Ç1
Slide 9: Capital Management and Headquarter Financing
Capital Management For personal use only • $300m Corporate Debt Facility available at 30 June 2010 – reduced to $200m in August 2010 • New headquarters financed by special purpose project debt facility • Excluding special new headquarters financing, net corporate debt was $41m at 30 June 2010 Headqu
Slide 10: World Economic Conditions; Director and Board Activities
World Economic Conditions For personal use only • Cochlear sells into over 100 countries • Direct presence in over 20 • Approximately 95% of sales are outside Australia • No material impact from European debt crisis • Board and Management continue to monitor individual country situations Director an
Slide 11: Senior Management Team and Diversity
Senior Management Team For personal use only • Senior Management team remain unchanged in F10 • Led by Dr Chris Roberts Diversity • Diversity is central to Cochlear’s development • Cochlear was “born global”, embracing diversity and tolerance • Over 2000 employees in nearly 50 countries • Ongoing pr
Slide 12: Executive Remuneration, Share Option Plans and Outlook
Executive Remuneration & Share Option plans For personal use only • Legislation amended during the year, but no changes to Option or Share Plans • Over 150 Cochlear executives own Options or Performance Shares • Over 1,000 employees are shareholders • Remuneration Committee satisfied that Cochlear’s
Slide 13: CEO's Address
Cochlear Limited For personal use only 2010 Annual General Meeting Chris Roberts CEO’s Address Providing the gift of hearing is a long journey...... Improved outcomes Improved patient access
Slide 14: Cochlear Nucleus System
Cochlear Nucleus 5 System For personal use only • Cochlear Nucleus 5 launched in ~ 50 countries in F10 • The majority of Cochlear implant unit sales are Nucleus 5 • Customer feedback (recipients and clinicians) extremely positive • Independent clinical trials have confirmed significant hearing impro
Slide 15: The Core Team
For personal use only The Core Team
Slide 16: For personal use only
Huar non Ardvalenys — Cochlear Huar non Ardvalenys — Cochlear
Slide 17: Cochlear Baha – Combined Performance
Cochlear Baha 3 – Combined Performance For personal use only Baha Implant (BI300) • Bone conduction implants for conductive hearing loss, single Allows measurement of sided deafness, and certain implant stability (RFA) Tight connection mixed losses Tight connection • Baha 3: all components of the sy
Slide 18: Global Growth in Cochlear Implants
Global Growth in Cochlear Implants For personal use only Nucleus cochlear implants sold in the world • The majority (~ 60%) of new CI recipients in 20,000 developed economies are adults 15,000 • Over 25% of all CI surgeries in developed economies are 2nd 10,000 implants (i.e. bilaterals) • Emerging
Slide 19: EBIT and Dividends; Cochlear F10 Summary
Cochlear: 5 Year EBIT and Dividends For personal use only EBIT Dividends Cochlear F10 Summary • Net Profit After Tax (NPAT) of $155.2 million up 19%, with free cash flow up 50% to $166 million • Successful launch of Cochlear Nucleus 5 in ~ 50 countries, and majority of cochlear implant sales now Nuc
Slide 20: Business of the Meeting
For personal use only Cochlear Limited 2010 Annual General Meeting Business of the Meeting
Slide 21: Resolution 1: Financial and Other Reports
Resolution No. 1 For personal use only Financial and other reports To receive and consider the Company’s Financial Report, Directors’ Report and Auditor’s Report in respect of the financial year ended 30 June 2010. Resolution No. 1 Financial and Other Reports Proxy Summary • Total number of proxy vo
Slide 22: Resolution 2: Remuneration Report
Resolution No. 2 For personal use only Remuneration Report To consider and, if thought fit, to pass the following non-binding resolution: 2.1 “THAT the Remuneration Report be adopted” Resolution No. 2 Remuneration Report Proxy Summary • Total number of proxy votes cast 31,993,707 100% • Votes in fav
Slide 23: Re-election and election of directors: Donal O'Dwyer
Resolution No. 3 For personal use only Re-election and election of directors To consider and, if thought fit, to pass the following resolutions as ordinary resolutions: Donal O’Dwyer / Career Summary Non-Executive Directorships Cochlear Limited Director, August 2005 – Present Mesoblast Limited Direc
Slide 24: Donal O'Dwyer Career Summary; Resolution 3.1
Donal O’Dwyer / Career Summary For personal use only Executive Career Johnson & Johnson 1996 – 2003 World Wide President, Cordis Cardiology 2000 – 2003 President, Cordis Europe 1996 – 2000 Baxter International 1984 – 1996 President, Baxter Cardiovascular Europe VP Sales & Marketing, Baxter UK/Irelan
Slide 25: Resolution 3.1 Proxy Summary; Prof Ed Byrne Career Summary
Resolution No. 3.1 For personal use only Re-election of directors – Mr Donal O’Dwyer Proxy Summary • Total number of proxy votes cast 32,066,669 100% • Votes in favour of the resolution 31,174,693 97% • Votes to be cast at the discretion of the proxy 484,247 2% • Votes against the resolution 407,729
Slide 26: Resolution 3.2: Re-election of Prof Edward Byrne
Resolution No. 3.2 For personal use only Re-election of directors 3.2 “THAT Prof Edward Byrne AO, being a director who is retiring by rotation in accordance with the Company’s constitution and who, being eligible, offers himself for re-election as a director of the Company, be re-elected as a direct
Slide 27: Yasmin A. Allen Career Summary
Yasmin A. Allen / Career Summary For personal use only Non-Executive Directorships - Insurance Australia Group Limited Director, November 2004 – Present (IAG) Audit & Risk Committee Chair Nomination & Remuneration C’tee Macquarie Global Infrastructure Fund Director, July 2003 – Present Appointed Cha
Slide 28: Resolution 3.3: Election of Mrs Yasmin Allen
Resolution No. 3.3 For personal use only Election of directors 3.3 “THAT Mrs Yasmin Allen, being a director who is retiring in accordance with the Company’s constitution (this being the first Annual General Meeting of the Company since her appointment by the directors) and who, being eligible, offer
Slide 29: Resolution 4.1: CEO Long Term Incentive Plan
Resolution No. 4 For personal use only Approval of issue, allocation or transfer of securities to the CEO/President under the Cochlear Executive Long Term Incentive Plan (CELTIP) To consider and, if thought fit, to pass the following resolution as an ordinary resolution: 4.1 “THAT approval be given
Slide 30: Close of Meeting
For personal use only Close of Meeting
Slide 31: For personal use only
AjJUO BSN FEUOSIOC! JOS