Slide 1: FY17 Result Presentation
FY17 Result Presentation 17 August 2017 Chris Smith CEO Dig Howitt President Brent Cubis CFO FY17 – Result highlights Strong momentum across the business • CC sales revenue 12% with strong H2 momentum, 15% in CC • CC Services revenue 10% and CC Acoustics revenue 26% • Cochlear implant units
Slide 2: Hearing loss market opportunity and Cochlear's mission
Hearing loss market opportunity 360,000,000 Over 5% of the world’s population - 360 million people - has disabling hearing* loss (328 million adults and 32 million children).1 1 in 3 Nearly 1 out of every 3 people over the age of 65 are affected by hearing loss. It affects communication and can cont
Slide 3: Strategic platforms – solid progress made
Strategic platforms – solid progress made • New products strengthen market leadership – Kanso, CI532, Baha 5 and Nucleus 7 from Sep17 Grow the • Expanded DTC programs Core • Expanded the sales force (>100 reps) • Sycle acquisition • Cochlear Family launched in 13 countries with >150% Build a growth
Slide 4: Investments to Shape the Organisation
Investments to Shape the Organisation China manufacturing • $50 million state-of-the-art manufacturing facility in Chengdu, the capital of Sichuan province, for the manufacturing of cochlear implants and sound processors • Production in China for China and Emerging markets • Strengthens our presence
Slide 5: Nucleus 7 Sound Processor and Cochlear implants
Nucleus 7 Sound Processor ® • 25% smaller1 • 24% lighter1 • up to 50% longer battery life1 • Bimodal solution with compatible ReSoundTM hearing aid • New ultra-compact one-piece coil & cable • Launch in US and Europe in Sep17 1. compared to the Nucleus 6 Sound Processor 9 Cochlear implants Market-le
Slide 6: Services and Acoustics
Services Lifetime relationship with > 450,000 recipients Sales revenue 10% in CC • Strong H2 momentum with CC sales up 17% • Nucleus 6 Sound Processor upgrade penetration has reached ~40% across developed markets • Expanded global focus on recipient engagement • Cochlear Family membership up >150%
Slide 7: Strong performances across regions
Strong performances across regions Americas – sales 18%1 EMEA – sales 7%1 APAC – sales 4%1 • US cochlear implant units • Western Europe unit • Solid growth across markets up >15% growth of >10% including India, Korea and • Strong growth in Services • Central & Eastern Europe South East Asia re
Slide 8: Financial highlights
Financial highlights • Continued investment to drive growth – Strong sales uplift supported by up-weighted sales and marketing activities and R&D investment • Solid operating leverage – 12% increase in CC sales revenue generating 15% increase in CC EBIT • Strong balance sheet and cash flows able to
Slide 9: Strong AUD impacts CC net profit growth; strong cash flows
Strong AUD impacts CC net profit growth FX contract gains driven by AUD appreciation against most major currencies, largely offset by P&L translation impacts and balance sheet revaluations (primarily mark-to-market of working capital) A$m FY17 FY16 Chg % Net profit (reported) 223.6 188.9 18% FX cont
Slide 10: Capital employed increase driven by acquisitions
Capital employed increase driven by acquisitions Capital employed increase driven by acquisition of Sycle and Lane Cove property A$m Jun17 Jun16 $ chg Trade receivables 275.4 268.5 6.9 Inventories 160.0 154.1 5.9 Less: Trade payables (130.9) (110.3) (20.6) Working capital 304.5 312.3 (7.8) Debtor da
Slide 11: Dividends
Dividends Full year dividends up 17%, fully franked, and on target at ~70% payout of net profit A$m FY17 FY16 % chg Interim ordinary dividend $1.30 $1.10 18% Final ordinary dividend $1.40 $1.20 17% Total ordinary dividends $2.70 $2.30 17% Payout ratio % 69% 70% Franking % 100% 100% 21 FY17 Result Pr
Slide 12: Strategic platforms and FY18 outlook
Strategic platforms Cochlear aims to make implantable hearing solutions the standard of care Focus on the Customer Grow the Build a Core Service Business Shape the Organisation Value Creation FY18 outlook Expect FY18 reported net profit of $240-250m, with currency headwinds expected to moderate stro
Slide 13: Notes
Notes Forward looking statements Cochlear advises that these presentation slides contain 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 the assump