Slide 1: FY24 Result Presentation
Hear now. And always FY24 Result Presentation 15 August 2024 Dig Howitt CEO & President Stu Sayers CFO © Cochlear Limited 2024 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: FY24 Highlights
FY24 Highlights In FY24, we helped over 47,000 people hear with one – or two – of our cochlear or acoustic implants, providing an estimated net societal benefit of more than $8 billion over the lifetime of the recipients from improved health outcomes, educational cost savings and productivity gains.
Slide 4: FY24 Financial summary
FY24 Financial summary 2,500 Sales revenue Sales revenue up 15% (12% in CC ) to $2,258m * 2,000 $m in CC* • Strong growth across all business units 1,500 • Cochlear implant units up 9% with strong growth across the developed markets driven by the adults 12% 1,000 in CC* and seniors segment • Servic
Slide 5: FY24 Operational review: Cochlear implants
FY24 Operational review Cochlear implants 59% of sales revenue Sales revenue up 18% (14% in CC*) Cochlear implant sales revenue • Cochlear implant units up 9% to 48,040 $m in CC* 1,400 $1,330m Developed markets 1,200 • Volumes up 11%, with ASP up 2% in CC • Strong growth in the US and Western Europe
Slide 6: FY24 Operational review: Services
FY24 Operational review Services 30% of sales revenue Services revenue up 15% (12% in CC*) Services sales revenue $m in CC* $672m 700 • Continuing solid uptake of the new sound processor across the developed markets 600 • Emerging market sound processor upgrade penetration is continuing to improve i
Slide 7: FY24 Operational review: Acoustics
FY24 Operational review Acoustics 11% of sales revenue Acoustics revenue up 7% (3% in CC*) Acoustics sales revenue $m in CC* 300 • Growth weighted to H2 – up 15% in CC $256m • The new 3 Tesla MRI compatible Cochlear™ Osia® Implant has driven strong demand 250 since it was launched in the US in Decem
Slide 8: 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 9: FY24 Key achievements: A lifetime of hearing solutions
FY24 Key achievements A lifetime of hearing solutions Strategic priority: Retain market leadership Growing investment in research and development • Market-leading technology underpins >60% global market share* • Invested >$270m in R&D, 12% of sales revenue, with good progress made across our key pro
Slide 10: FY24 Key achievements: A healthier and more productive society
FY24 Key achievements A healthier and more productive society Strategic priority: Grow the hearing implant market Helping more people hear • We helped over 47,000 people hear with one – or two – of our cochlear or acoustic implants, providing an estimated net societal benefit of more than $8 billion
Slide 11: FY24 Key achievements: Thriving people
FY24 Key achievements Thriving people Strategic priority: Build a stronger organisation Shaping our culture Recruitment overview • Continued focus on shaping our culture through training and 1,039 48% leadership development programs with a focus on building enterprise leadership skills global female
Slide 12: FY24 Key achievements: Environmental responsibility
FY24 Key achievements Environmental responsibility Strategic priority: Minimise environmental impact Pathway to net-zero emissions Environmental milestones • Using 97% renewable energy at our manufacturing facilities, using 100% renewable energy in five of our six facilities • Reduced Scope 1 and 2
Slide 13: FY24 Key achievements: Sustained value
FY24 Key achievements Sustained value Strategic priority: Consistent and sustainable growth • Delivered record sales revenue with underlying net profit* up 27% (15% in CC**) • Balance sheet remains strong with net cash of $514 million. Operating cash flows sufficient to fund investing activities and
Slide 14: Profit and loss
Profit and loss Change Change $m FY24 FY23 (reported) (CC) Key points: Sales revenue 2,258.2 1,955.7 15% 12% Growth across all business units ASP increases offset inventory write-downs and lower overhead Gross margin % 75% 75% - pt - pt recoveries at new Chengdu facility Investment in market gro
Slide 15: Capital employed
Capital employed $m Jun24 Jun23 Change Key points: Trade receivables 425.3 388.4 36.9 Inventories 391.6 311.5 80.1 Investment in inventories to support business growth Less: Trade payables (303.2) (270.4) (32.8) Working capital 513.7 429.5 84.2 Working capital / sales revenue 23% 22% Investment in
Slide 16: Cash flow
Cash flow $m FY24 FY23 Change Key points: EBIT (underlying)* 504.8 396.1 108.7 Strong business performance Depreciation and amortisation 84.9 80.9 4.0 Changes in working capital and other (79.2) (42.4) (36.8) Investment in inventories to support business growth Net interest received 9.8 7.1 2.7
Slide 17: FY25 Outlook
FY25 Outlook We continue to target sales revenue growth of around 10%, with a net profit margin (pre-cloud investment) of around 18%. For FY25, we aim to help over 50,000 people to hear with a cochlear or acoustic implant, and expect to deliver underlying net profit of $410-430 million, a 6-11% incr
Slide 18: 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 18
Slide 19: 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 20: 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 21: 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 Nuc
Slide 22: 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 23: 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 23
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: References
References Hear now. And always FY24 Highlights (slide 8) 7. Fact 5. Deafness and hearing loss. World Health Organization [Internet]. [cited July 2018]. Available from: http://www.who.int/features/factfiles/deafness/en/. 1. Cochlear estimates based on the published economic model findings of Neve et
Slide 33: www.cochlear.com
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