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Slide 3: Disclaimer
Disclaimer Forward looking statements The forward looking statements included in these materials involve subjective judgment and analysis and are subject to significant uncertainties, risks, and contingencies, many of which are outside the control of, and are unknown to Cochlear Limited (‘Cochlear’)
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Slide 5: Transaction Overview
Transaction Overview Cochlear Limited has signed an agreement to acquire Entific Medical Systems AB (“Entific”) for SEK1,050M (~A$195M) — Enterprise value of ~A$175M — Entific is a Swedish based company specialising in treating conductive hearing loss and single sided deafness using a unique technol
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Slide 7: Overview of Entific
Overview of Entific — Spin-off from dental implant company, Nobel Biocare in Baha® 1999 — Titanium implant system with osseointegration technology ~ Baha® — direct bone conduction hearing implants primarily used for the treatment of conductive hearing loss and single sided deafness -— Anchoring syst
Slide 8: Overview of Hearing and Hearing Impairment
Overview of Hearing and Hearing Impairment Semloroular canule Sensorineural hearing loss External _ Conductive euditory | hearing loss cara sy “~ Besctaeblats Eardewim Hear now. And always 8
Slide 9: Direct Bone Conduction Technology
Direct Bone Conduction Technology Cochlea Bone Conduction Hear now, And always 9
Slide 10: Core Aspects of the Baha Implant System
Core Aspects of the Baha® Implant System Snap Coupling Abutment Transducer > Lay Osseo- integration Hear now, And always 10
Slide 11: Baha for Conductive Hearing Loss
Baha® for Conductive Hearing Loss Left Right Air Conduction normal way Direct Bone Conduction from Baha® Hear now, And always it
Slide 12: Baha for Single Sided Deafness
Baha® for Single Sided Deafness Left Right Air Conduction Direct Bone Conduction : / 4) normal way from Baha® Hear now. And always” 12
Slide 13: "Coffee Break" Surgery Through Innovative R&D
“Coffee Break” Surgery Through Innovative R&D — Surgery is low risk, reversible and relatively simple — Implants are MRI safe Hear now, And always 13
Slide 14: Significant Unmet Clinical Need
Significant Unmet Clinical Need Conductive hearing loss and single sided deafness — Both niche but important growth markets Conductive hearing loss (CHL) -~ Mild conductive hearing Loss — Normally not treated -~ Moderate conductive hearing loss — Surgery (stapedectomy, reconstruction of eardrum or t
Slide 15: Target Markets
Target Markets Conductive hearing loss Sensorineural hearing loss Riad i hf Mild hearing loss 2Moderate hearing loss Mild to moderate hearing loss 2Severe hearing loss Unilateral Bilateral Unilateral conductive conductive sensorineural sensorineural | hearing loss hearing loss hearing loss hearing l
Slide 16: Strong Revenue Growth
Strong Revenue Growth 1999 2000 2001 2002 SEK in millions. December year end. Hear now, And always “ 16
Slide 17: Entific Revenue Split
Entific Revenue Split 2004 Revenues by Business 2004 Revenues by Region Baha® 91% Europe 58% North America International Ye Facial Prostheses Anchors 9% Hear now, And always 17
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Slide 19: Strategic Rationale
Strategic Rationale — Huge potential for implantable solutions for hearing impaired — Acquisition broadens Cochlear’s range of implantable hearing solutions with strong footprint in — Conductive hearing loss (CHL) — Single sided deafness (SSD) — Highly complementary “bolt-on” acquisition — Synergies
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Slide 21: Financial Impact on Cochlear
Financial Impact on Cochlear — Transaction expected to close in March ‘05 — Accounts will reflect Entific results from 01 Jan ‘05 — Immediately accretive to cash EPS — ~5% accretive to cash EPS in FY2006 — Previous Cochlear FY05 PAT guidance confirmed (Core PAT of A$53-55M - i.e. pre-Entific goodwil
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Slide 23: Summary
Summary — Cochlear is acquiring Entific for an enterprise value of ~A$175M — Entific is the world leader in bone anchored systems for treating conductive hearing loss and single sided deafness — Entific has demonstrated strong growth and financial performance since its 1999 spin off from Nobel Bioca
Slide 24: Hear now. And always Cochlear
Hear now. And always Cochlear