Slide 1: HY25 Result Presentation
Hear now. And always HY25 Result Presentation 14 February 2025 Dig Howitt CEO & President Stu Sayers CFO (to Dec24) Sarah Thom CFO (from Jan25) © Cochlear Limited 2025 1
Slide 2: We help people hear and be heard
We help people hear and be heard. We people to connect with others and live a full life. We the way people understand and treat hearing loss. We vate and bring to market a range of implantable hearing solutions that deliver a lifetime of hearing outcomes.
Slide 3: HY25 Financial summary
HY25 Financial summary Sales revenue Sales revenue up 6% in CC* to $1,170m 2,500 $m in CC* • Cochlear implant revenue increased 13% in CC 2,000 • Acoustics revenue increased 22% in CC 1,500 6% 1,000 in CC* • Services revenue declined 12% in CC, following 29% CC growth in HY24 500 Underlying net pro
Slide 4: HY25 Operational review: Cochlear implants
HY25 Operational review Cochlear implants 62% of sales revenue Sales revenue up 13% in CC Cochlear implant sales revenue • Sales revenue grew at a faster rate than unit growth as a result of product and country mix in the emerging $m in CC* 1,400 markets, with a higher mix of higher-priced private p
Slide 5: HY25 Operational review: Services
HY25 Operational review Services 26% of sales revenue Services revenue down 12% in CC Services sales revenue $m in CC* 700 • Cycling 29% CC growth in the first half of FY24 600 • Strong uptake of the Cochlear Nucleus®8 sound processor when it was launched in FY23, with the rate of uptake slowing ove
Slide 6: HY25 Operational review: Acoustics
HY25 Operational review Acoustics 12% of sales revenue Acoustics revenue up 22% in CC Acoustics sales revenue $m in CC* 250 • Strong uptake of the Cochlear Osia® Implant across existing markets and expansion into new countries including France, Italy and a number of emerging market countries 200 • O
Slide 7: Profit and loss
Profit and loss Change Change $m HY25 HY24 (reported) (CC) Key points: Strong growth in cochlear and acoustic implants moderated by a Sales revenue 1,169.9 1,113.4 5% 6% decline in Services revenue Gross margin % 75% 74% 1 pt 1 pt Investment in market growth initiatives, standard of care and marke
Slide 8: Capital employed
Capital employed $m Dec24 Jun24 Change Key points: Trade receivables 435.2 425.3 9.9 Building of inventory ahead of new product launches and higher Inventories 461.1 391.6 69.5 safety stock levels for critical components Less: Trade and other payables (285.5) (303.2) 17.7 Working capital 610.8 513
Slide 9: Cash flow
Cash flow $m HY25 HY24 Change Key points: EBIT (underlying)* 275.0 255.3 19.7 Solid business performance Depreciation and amortisation 43.8 43.1 0.7 Building of inventory ahead of new product launches and Changes in working capital and other (131.4) (84.0) (47.4) higher safety stock levels for c
Slide 10: FY25 Outlook
FY25 Outlook For FY25, we aim to help over 50,000 people to hear with a cochlear or acoustic implant. We expect underlying net profit to be at the lower end of the $410-430m guidance range provided in August 2024, incorporating a lower contribution from Services revenue and higher cloud-related inve
Slide 11: Our company
Hear now. And always Supplementary information Our company For further details please refer to the 2024 Annual Report https://www.cochlear.com/au/en/corporate/investors/annual-reports 11
Slide 12: About Cochlear
About Cochlear Cochlear has been the global leader in implantable hearing solutions for over 40 years, providing a range of implants and sound processor upgrades that deliver a lifetime of hearing outcomes. Our story Our company Graeme Clark, an Australian ear surgeon, saw first-hand Cochlear commen
Slide 13: Cochlear at a glance
Cochlear at a glance Business segments Global presence $2.2 b+ 5,000 + 51 % 59 Cochlear Implants* female % Cochlear implant systems gender balanced in sales revenue* across employees across workforce 180+ 50+ 6 countries countries Sweden 30 Services* China % Sound processor upgrades, accessories and
Slide 14: Product and services portfolio
Product and services portfolio Cochlear’s market-leading portfolio aims to improve hearing outcomes for recipients and provide a lifetime of hearing solutions. Cochlear implant portfolio Acoustic solutions portfolio Recipient support tools Cochlear Baha® System Cochlear Nucleus® System Cochlear Nucl
Slide 15: Financial history
Financial history Cochlear has a long track record of investing to grow, delivering growing sales revenue, profits* and dividends. Consistent investment in R&D Long-term growth Growing profits and market growth activities in sales revenue and dividends Research and development Cochlear implants Unde
Slide 16: Strategy and value creation
Hear now. And always Supplementary information Strategy and value creation For further details please refer to the 2024 Annual Report https://www.cochlear.com/au/en/corporate/investors/annual-reports 16
Slide 17: Growth opportunity
Growth opportunity Growing awareness of the cost-effectiveness and quality of life benefits of our products has the potential to underpin long- term industry growth. Hearing loss is prevalent and under- Cochlear implants are a cost-effective Cochlear implants can deliver superior treated solution fo
Slide 18: Growth opportunity
Growth opportunity Product indications are broadening and funding is expanding Good hearing is essential to healthy ageing Product indications and funding are expanding as payers increasingly recognise Hearing loss is particularly prevalent in people over the age of 60, with one in four suffering th
Slide 19: Key market segments
Key market segments Our efforts are targeted at improving awareness, expanding access and building on the clinical evidence that demonstrates the effectiveness of our products across four key market segments. Cochlear implants: Cochlear implants: Adults and Children in developed markets seniors in d
Slide 20: Key market segments
Key market segments Cochlear implants: Acoustic implants: Next generation Children in emerging markets bone conduction hearing solutions Our emerging markets business has been The bone conduction market is under- growing rapidly as awareness of cochlear penetrated and currently has limited Addressab
Slide 21: Our strategy
Our strategy We help people to hear, Strategic priorities Longer-term targets aim Our goal is to help creating value across five pillars focus our time and to provide clear more people to hear, resources stakeholder benefits which contributes to A lifetime of hearing solutions Retain Customers build
Slide 22: Strategic priorities
Strategic priorities Our strategic priorities determine how we focus our time and resources to create value. Over the coming years we are focusing our efforts on delivering value across the following initiatives: Retain market Grow the hearing Build a stronger Minimise Consistent and leadership impl
Slide 23: Creating value for stakeholders
Creating value for stakeholders Value creation describes the impact we have on all our key stakeholders – our customers, our people, our planet, our shareholders as well as society more broadly. Successful execution means achieving the following outcomes for our stakeholders: Customers Society Peopl
Slide 24: Notes
Notes Hear now. And always Forward looking statements Cochlear advises that this document contains forward-looking statements which may be subject to significant uncertainties outside of Cochlear’s control. No representation is made as to the accuracy or reliability of forward-looking statements or
Slide 25: References
References Hear now. And always Growth opportunity (slide 17-18) 11. a. Kramer S, Kapteyn T, Houtgast T. Occupational performance: comparing normally-hearing and hearing- impaired employees using the Amsterdam Checklist for Hearing and Work. International Journal Of Audiology [serial 1. World report
Slide 26: www.cochlear.com
www.cochlear.com © Cochlear Limited 2025