Slide 1: FY18 Result Presentation – Result highlights
FY18 Result Presentation 14 August 2018 Dig Howitt CEO & President Brent Cubis CFO FY18 – Result highlights Strong growth across both developed and emerging markets • Sales revenue up 9% to $1,354m • Developed market units up 9% & emerging market units up >15% (adjusted for China tender units) Stren
Slide 2: Cochlear implants and Services – share of sales revenue
Cochlear implants – 62% of sales revenue Market-leading products and investment in market growth initiatives drive demand Sales revenue 8% in CC* • Developed market units up 9% – US & UK the highlights with solid unit growth across much of Western Europe, Australia and Japan • Emerging market unit
Slide 3: Acoustics and Regional review
Acoustics – 12% of sales revenue Maintained strong market position for Baha products Sales revenue in line with FY17 in CC* • Follows 26% CC growth last year, with demand continuing for the Baha 5 Sound Processor range • Launch of Baha SoundArc, provides a non-surgical bone conduction solution that
Slide 4: FY18 – Financial highlights
FY18 Result Presentation 14 August 2018 Brent Cubis CFO FY18 – Financial highlights Net profit delivered in line with guidance • $245.8m, up 10% in CC, within guidance of $240-250m Continued investment to drive growth • Manufacturing efficiencies reinvested • Sales growth supported by up-weighted sa
Slide 5: Profit & loss and Cash flow
Profit & loss Net profit delivered within $240-250m guidance. Manufacturing efficiencies reinvested into market growth initiatives with net profit margin maintained Chg % Chg % A$m FY18 FY17 (reported) (CC) Sales revenue 1,351.4 1,239.7 9% 9% Cost of goods sold 361.2 358.4 1% 1% % gross margin 73% 7
Slide 6: Capital employed and Net debt
Capital employed Capital employed increase driven by investment in working capital to support business growth. Small improvements in working capital / sales revenue A$m Jun18 Jun17 $ chg Trade receivables 299.1 275.4 23.7 Inventories 167.4 160.0 7.4 Less: Trade and other payables (140.5) (130.9) (9.
Slide 7: Dividends
Dividends Dividends increase by 11% with payout on target at 70% of net profit A$m FY18 FY17 % chg Interim ordinary dividend $1.40 $1.30 8% Final ordinary dividend $1.60 $1.40 14% Total ordinary dividends ($/share) $3.00 $2.70 11% Payout ratio % 70% 69% Franking % 100% 100% 13 FY18 Result Presentati
Slide 8: Strategic priorities
Strategic priorities 15 Cochlear in focused on generating consistent growth in units and sales over time 16 8
Slide 9: Expect to continue to grow revenue across all business units
Expect to continue to grow revenue across all business units Revenue growth drivers: Cochlear implants • DTC and sales force expansion driving awareness and uptake by adults and seniors • New products driving market growth and market share • Emerging market expansion Services • Growing recipient bas
Slide 10: FY19 outlook
FY19 outlook FY19 net profit guidance of $265-275m, up 8-12% on FY18 Key guidance considerations: • Developed market growth expected to continue • Emerging market growth rates over time continue to be strong, however, annual growth rates can be variable • Continued investment to retain market leader