Slide 1: HY18 Result Presentation
HY18 Result Presentation 13 February 2018 Dig Howitt CEO & President Brent Cubis CFO HY18 – Result highlights Strong momentum across developed markets continues • Developed market unit growth up 12% • Strengthening market leadership position with new products broadening the portfolio and driving sha
Slide 2: Hearing loss market opportunity
Hearing loss market opportunity 360,000,000 Over 5% of the world’s population - 360 million people - has disabling hearing* loss (328 million adults and 32 million children).1 1 in 3 Nearly 1 out of every 3 people over the age of 65 are affected by hearing loss. It affects communication and can cont
Slide 3: Strategic platforms
Strategic platforms Cochlear aims to make implantable hearing solutions the standard of care Focus on the Customer Grow the Build a Core Service Business Shape the Organisation Value Creation Key priorities Demand generation – turning clinical need into demand • Build awareness – building greater aw
Slide 4: Cochlear implants
Nucleus 7 Sound Processor ® Made for iPhone allows users to stream sound directly to their sound processor, offering greater accessibility, connectivity and wireless solutions Nucleus 7 Smart App Control Hearing Find My tracker Processor 7 Cochlear implants Market-leading products and investment in
Slide 5: Services and Acoustics
Services Lifetime relationship with > 475,000 recipients Sales revenue 12% in CC • Upgrade revenue up 9% in CC driven by uptake of Nucleus 7 Sound Processor from Q2 • Expanded global focus on recipient engagement • Cochlear Family membership up 27% to 76,000 recipients • First time inclusion of Sy
Slide 6: Regional review
Regional review Americas – sales 15%1 EMEA – sales 5%1 APAC – sales 7%1 • US cochlear implant units • Western Europe unit • Solid unit growth in Australia, up 15% growth of 9% China private pay surgeries • Strong market growth as • Market growth and market up and expanded indications well as m
Slide 7: Profit & loss and Cash flow
Profit & loss Chg % Chg % A$m HY18 HY17 (reported) (CC) Sales revenue 639.6 604.4 6% 7% Cost of goods sold 176.4 176.2 0% 1% % of sales revenue 28% 29% Selling, marketing and general expenses 189.1 165.2 14% 16% Administration expenses 44.2 44.3 0% 0% R&D expenses 80.6 72.2 12% 11% % of sales revenu
Slide 8: Capital employed and Net debt
Capital employed Inventory increase to fund business growth and inventory build ahead of delivery of China tender units in H2 A$m Dec17 Jun17 $ chg Trade receivables 275.2 275.4 (0.2) Inventories 177.3 160.0 17.3 Less: Trade payables (116.7) (130.9) 14.2 Working capital 335.8 304.5 31.3 Debtor days
Slide 9: Dividends
Dividends Interim dividend up 8%, fully franked A$m HY18 HY17 % chg Interim ordinary dividend $1.40 $1.30 8% Payout ratio % 73% 67% Franking % 100% 100% 17 HY18 Result Presentation 13 February 2018 Dig Howitt CEO & President 9
Slide 10: FY18 outlook
FY18 outlook Maintain FY18 guidance of net profit of $240-250m Key guidance considerations • expect solid momentum in developed market unit growth to continue, which will be supported by investment in market access and market growth activities • expect to start shipping the 1,491 China Central Gover
Slide 11: References
References Slide 3 * Disabling hearing loss refers to hearing loss greater than 40 decibels (dB) in the better hearing ear in adults and a hearing loss greater than 30 dB in the better hearing ear in children. 1. Who.int. WHO | Deafness and hearing loss [Internet]. 2015 2. Who.int. WHO | 10 facts on