Slide 1: Results for the Year Ended 30 June 2007
For personal use only Cochlear Limited Results For The Year Ended 30 June 2007 Chris Roberts - CEO Neville Mitchell - CFO 1
Slide 2: Cochlear – Background
Cochlear – Background • Medical device company (~25yr): global leader in For personal use only implantable devices for the hearing impaired: – Leading global position (∼70% market share) in cochlear implants for sensorineural hearing loss – Bone anchored hearing implants (Baha) for conductive hearin
Slide 3: 10 Year Cochlear Implant Unit Sales and Sales
10 Year Cochlear Implant (CI) Unit Sales: 16,000 16,000 F98 to F07 For personal use only 14,000 14,000 .3 % • F07 CI unit sales of 12,000 12,000 18 15,947 up 23.6% R AG Annual Unit Sales 10,000 10,000 C • CI unit growth for yr 10 the last 2 years has 8,000 8,000 been above 10 year 6,000 CAGR of 18.3
Slide 4: Sales Revenue
Sales Revenue (Prior years restated at F07 FX rates) * For personal use only Sales (constant currency) ($ millions) 500 500 • 28% constant currency sales 400 400 growth (ex FX contracts) 300 300 • BAS + 23% CC 200 200 • CI +29% CC 100 100 BAS Cochlear 00 Implants F01 F01 F02 F02 F03 F03 F04 F04 F05
Slide 5: Americas and Europe
Americas (Prior years restated at F07 FX rates) For personal use only Sales (constant currency) ($ millions) 250 250 • F07 CC growth +33% 200 200 • Bilaterals, Baha® & Freedom™ for N24 150 150 • Sound Partnership, including 100 100 HearAlways™ very well received 5050 • Consumer advocacy activities 0
Slide 6: Asia-Pacific and What We Have Done in F07
Asia-Pacific (Prior years restated at F07 FX rates) For personal use only Sales (constant currency) ($ millions) 8080 • F07 CC 7070 growth +38% 6060 • Strong growth 5050 across the region 4040 • F07: China 3030 non-donation 2020 market greater than the 1010 donation 00 market F01 F02 F03 F04 F05 F06
Slide 7: Two ears are better than one
Two ears are better than one • Bilateral cochlear implantation (one for each ear) For personal use only is an important trend underpinning unit sales growth • This bilateral trend is supported by excellent clinical results around the advantages of binaural hearing as well as other factors (eg redund
Slide 8: Cochlear F07 Overview
Cochlear F07 Overview • Record financial results for F07 For personal use only – Revenues of $559.4 million up 24% – NPAT of $100.1 million up 25% – Core Earnings of $107.6 million up 24% • Nucleus® Freedom™: the best cochlear implant ever – with product offering expanding, including Freedom for N24
Slide 9: F07 Financial Performance
F07 Financial Performance F07 F06 % For personal use only $m $m Change Total Revenue 559.4 452.3 Ç 24% Reported NPAT 100.1 80.0 Ç 25% Core Earnings 107.6 86.4 Ç 24% Dividends Final Dividend 70c 55c Ç 27% Record Date 6th September 2007 Payable Date 27th September 2007 Full Year 125c 100c Ç 25% Franki
Slide 10: F06 – F07 Core Earnings Reconciliation
F06 – F07 Core Earnings 200.0 Reconciliation For personal use only 180.0 88.8 (25.6) 160.0 (5.8) (4.0) (17.6) 140.0 (14.6) 120.0 107.6 100.0 86.4 80.0 60.0 40.0 20.0 0.0 8 6 .4 8 8 .8 -2 5 .6 -5 .8 -4 .0 -1 7 .6 -1 4 .6 1 0 7 .6 F06 Core Gross SG&A R&D F07 Core F'06 Core Gross Margin SG&A costs R&D
Slide 11: F07 Net Financing Expense
F07 Net Financing Expense F07 F06 $m $m For personal use only Net financing (expense)/income Interest income 2.2 3.7 Other net foreign exchange gain - 3.0 Financial income 2.2 6.7 Interest (expense) (8.9) (6.4) Net foreign exchange (loss) (3.4) - Financial (expense) (12.3) (6.4) Net financing (expen
Slide 12: Cash Generated
Cash Generated F07 F06 For personal use only $m $m Net cash provided by operating activities 149.6 115.5 before changes in assets and liabilities Changes in assets & liabilities Increase in debtors (23.7) (29.5) Increase in inventories (5.0) (27.3) Decrease in current tax liabilities & provisions (4
Slide 13: F07 Working Capital
F07 Working Capital Debtors (Days Outstanding) For personal use only $140.0 90 Net Receivables ($ millions) $120.0 80 • Debtors increase $100.0 70 22% to $116.9m vs. 60 sales increase of Days $80.0 50 $60.0 40 26% 30 $40.0 20 • Increase in debtor $20.0 10 $0.0 0 days to 79 June June June June June J
Slide 14: Thank you
For personal use only Thank you • Any questions? Foreign Exchange •Rates applied F07 vs. F06 F07 F06 Average rates (used for translating P&L) USD 0.79 0.75 Euro 0.61 0.62 JPY 94.4 86.5 Contract rates (used to bring FX to Aust) USD 0.74 0.70 Euro 0.57 0.56 JPY 67.5 60.5 14
Slide 15: Foreign Exchange Rates Going Forward
Foreign Exchange Rates Going Forward For personal use only Average Contract Rates USD Euro JPY SEK Weighted average – exchange rates going forward 0.78 0.59 83.0 5.29 • Total mark to market FX gain at 30 June 2007: $22.1m (year-end USD rate 0.85) F07 Core Earnings Reconciliation F07 F06 $m $m Earnin