Cochlear Limited · ASX:COH

Cochlear — FY2015 Earnings Presentation

16 slides from Cochlear's earnings presentation, Aug 11, 2015

1. Slide 1: Results for full year ended 30 June 2015 (F15)

   8/11/2015 For personal use only Cochlear Limited Results for full year ended 30 June 2015 (F15) Chris Roberts CEO Neville Mitchell CFO Cochlear Overview • Cochlear Limited (ASX:COH) is the global leader in implantable hearing devices, including: – Cochlear implants – Bone conduction implants – Acous

2. Slide 2: F15 Overview

   8/11/2015 F15 Overview For personal use only • Sales momentum continues, supported by expansion of online and other services complementing products such as: – True Wireless for Nucleus® 6 – SmartSound® iQ pre-processing – Nucleus Profile implant with both Contour Advance® and Slim Straight electrode

3. Slide 3: Sales in Constant Currency up 10%

   8/11/2015 Cochlear: Sales in Constant Currency (CC) up 10% For personal use only • Record sales of $941.9 million, up 15% and in constant currency (CC) (F14 restated at F15 FX rates) up 10% • Sales momentum continues, H2 F15 sales $501.4 million, (H1: $440.5 million) H2 • Cochlear implant sound proc

4. Slide 4: Bone Conduction / Acoustic Implants and Americas Sales

   8/11/2015 Cochlear: Sales of Bone Conduction / Acoustic Implants in Constant Currency (CC) up 9% For personal use only • F15 bone conduction/acoustic implant sales of $115.1 million, up 15% (up 9% in CC) • Baha 5 Sound Processor released in June quarter • Baha Attract (transcutaneous) H2 system ~35%

5. Slide 5: EMEA and Asia Pacific Sales in Constant Currency

   8/11/2015 Cochlear EMEA: F15 Sales in Constant Currency up 6% For personal use only • F15 EMEA sales of $377.6 million, up 5% (up 6% in CC) • Growth biased to Western Europe with sales up 11% in CC • True Wireless for Nucleus 6, Aqua+, H2 Baha 5 launched in H2 F15 H2 • Nucleus Profile with both Cont

6. Slide 6: F15 Regional Split of Sales and Operating Margin

   8/11/2015 Cochlear: F15 Regional Split of Sales For personal use only EMEA1 Americas 40% 43% CC2 growth 6% CC growth 15% Asia Pacific 17% 1 EMEA is Europe, Middle East and Africa CC growth 9% 2 CC is constant currency F15 Operating Margin • COGS in H2 F15 were 29.5% of sales, compared with 28.1%

7. Slide 7: Nucleus Cochlear Implants

   8/11/2015 Nucleus Cochlear Implants For personal use only • Cochlear Nucleus CI24RE (Freedom) – Available with either Contour Advance or Slim Straight electrode – 11 year reliability data (99.1% CSR) • Cochlear Nucleus Profile – This mechanical form factor is thinnest at 3.9mm – Available with eithe

8. Slide 8: Baha System and F15 Overview

   8/11/2015 Baha 5 System For personal use only 2.4 GHz Wireless smart App Portfolio new Fitting Software new Baha 5 Sound Processor new Baha Softband UPGRADE PATH TRANSITION PATH new 14 mm DermaLock Abutment new SP Magnet with Colour covers stable BI300 Implant F15 Overview • Continuing sales momentu

9. Slide 9: Cochlear F15 Financial Performance

   8/11/2015 For personal use only Neville Mitchell CFO Results for the full year ended 30 June 2015 Cochlear F15 Financial Performance F15 F14 % $m $m Change Sales Revenue 941.9 820.9  15% FX Contracts (loss) (16.3) (16.0) Total Revenue 925.6 804.9  15% EBIT * 206.4 149.6*  38% Net Profit after Tax

10. Slide 10: Cochlear F14 – F15 NPAT Waterfall

    8/11/2015 Cochlear F14 – F15 NPAT Waterfall For personal use only AUD Millions 225 66.6 (33.9) 200 175 (1.3) (0.1) (19.9) 145.8 150 24.9 125 109.5 15.8 93.7 100 75 50 25 0 F14 NPAT Patent F14 NPAT FX Impacts Gross Margin SG&A R&D Interest Tax F15 NPAT Dispute Before Patent Provision Net Dispute of T

11. Slide 11: F15 Working Capital and (Debt) / Cash

    8/11/2015 Cochlear F15 Working Capital For personal use only • F15 inventory days increased to 193 (189 days in June F14) • Debtor days 83 (74 days in June F14 ) • Trade receivables at $236.7 million ($201.3 million in June F14) Cochlear F15 (Debt) / Cash 30 June 30 June 2015 2014 $m $m Loans and Bo

12. Slide 12: F15 Summary and Outlook

    8/11/2015 F15 Summary and Outlook For personal use only • Continuing sales momentum from new products and services • Record sales of $941.9 million, up 15% (10% in CC) • F15 NPAT of $145.8 million, up 56% (up 33% excluding patent dispute provision in prior year) • Positive response to True Wireless

13. Slide 13: FX Contract Cover and Rates

    8/11/2015 FX Contract Cover and Rates as at 30 June 2015 For personal use only Total FX hedges at USD EUR JPY Total 30 June 2015 expressed in Foreign Currency (millions) 238.0 175.0 1,530.0 FX Hedges at 30 June 2015 Expressed in AUD millions 283.4 262.7 17.2 563.3 % of total cover (in AUD) 50% 47% 3

14. Slide 14: Foreign Exchange Period End Rates and PP&E

    8/11/2015 Foreign Exchange: Period End Rates For personal use only 30 June 30 June % change 2015 2014 Period end rates (used for translating Bal Sheet) USD 0.77 0.94  18% Euro 0.69 0.69 - JPY 95.0 95.5  1% GBP 0.49 0.55  11% Property, Plant & Equipment & Leasehold Improvements 30 June 2015 $m Gro

15. Slide 15: Corporate & Other Net Expenses; Non-IFRS Financial Measures

    8/11/2015 Corporate & Other Net Expenses For personal use only F15 F14 $m $m Corporate Research and Development 127.0 126.2 Corporate Administration & Marketing 79.3 67.6 Corporate Other Income (3.5) (2.7) FX (gains)/losses (1.2) 3.1 Corporate and other net expense (note 2.1) 201.6 194.2 Non-IFRS Fi

16. Slide 16: For personal use only

    For personal use only 16 8/11/2015

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