Cochlear Limited · ASX:COH
Cochlear — Investor Day (October 2023)
115 slides from Cochlear's investor day presentation, Oct 27, 2023
Slide 1: ASX Announcement: Cochlear Capital Markets Day
1 University Avenue Macquarie University NSW 2109 AUSTRALIA www.cochlear.com ASX Announcement 27 October 2023 Cochlear Capital Markets Day Cochlear Limited will today host a Capital Markets Day for analysts and investors at its global headquarters at Macquarie University. Please find attached the pr
Slide 2: Corporate strategy
Hear now. And always For personal use only Corporate strategy Cochlear Capital Markets Day | 27 October 2023 Dig Howitt CEO & President This material is intended for analysts and investors © Cochlear Limited 2023 1
Slide 3: Acknowledgement of Country
For personal use only Acknowledgement of Country Worimi, Welcome, On behalf of Cochlear, it is a pleasure to acknowledge the Wallumattagal Peoples of the Darug Nation, who are the Traditional Custodians of the Macquarie Park area. We would like to pay respect to Elders, both past and present and to
Slide 4: Our mission
Our mission For personal use only We help people hear and be heard. We empower people to connect with others and live a full life. We transform the way people understand and treat hearing loss. We innovate and bring to market a range of implantable hearing solutions that deliver a lifetime of hearin
Slide 5: Agenda
Agenda Corporate strategy Dig Howitt CEO & President For personal use only Product and services innovation Jan Janssen Chief Technology Officer Developing a treatment pathway for adults Dean Phizacklea SVP Global Strategic Marketing Cochlear’s US business Lisa Aubert President, Cochlear North Americ
Slide 6: Cochlear at a glance
Cochlear at a glance Business segments Global presence $1.9b 4.8k 53 % 58 For personal use only Cochlear Implants* % Cochlear implant systems > ~ female gender balanced in sales revenue* across employees across workforce 180+ 50+ 6 countries countries 30 Services* % Sound processor upgrades, accesso
Slide 7: 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. For personal use only Hearing loss is prevalent and under- Cochlear implants are a cost-effective Cochlear implants can deliver superi
Slide 8: 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 Fo
Slide 9: 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. For personal use only Cochlear implants: Cochlear implants: Adults and Children in develope
Slide 10: Our strategy
Our strategy For personal use only A healthier and more productive society Grow the hearing implant market Delivering societal benefit through improved health Help at least 8% more people to hear each outcomes, educational cost savings and productivity year with a cochlear or acoustic implant. At Co
Slide 11: A healthier and more productive society
A healthier and more Strategic priorities productive society Grow the hearing implant market • Strengthen the referral pathway for adults For personal use only • Develop the acoustic implant segment • Broaden reimbursement and improve indications Delivering societal benefit • Expand access in emergi
Slide 12: Strengthen the referral pathway for adults
Strengthen the referral pathway for adults Standard of care initiatives aim to establish a consistent process for diagnosing and referring adult cochlear implant candidates by all healthcare professionals For personal use only • Adults and seniors in the developed markets provide our Key elements of
Slide 13: Develop the acoustic implant segment
Develop the acoustic implant segment Cochlear Osia® System has the potential to become the first choice in acoustic implants, competing more effectively with reconstructive surgery while expanding geographically For personal use only MAINTAIN TECHNOLOGY LEADERSHIP The only active bone conduction sys
Slide 14: Broaden reimbursement and improve indications
Broaden reimbursement and improve indications The economic benefits associated with cochlear implants extend beyond healthcare budgets with significant net economic gains to society from improved health outcomes, educational cost savings and productivity gains.* For personal use only • Growing evide
Slide 15: Expand access in emerging markets
Expand access in emerging markets We are continuing to identify opportunities in emerging economies to grow the hearing implant market, with a focus on improving rates of implantation in children For personal use only • Emerging markets represent ~20% of cochlear implant revenue • Growing rapidly as
Slide 16: A lifetime of hearing solutions
A lifetime of hearing Strategic priorities solutions Retain market leadership • Advance the product and services pipeline, with annual R&D investment of For personal use only 12% of revenue • Deliver our latest sound processor upgrade technology to existing recipients Innovating to build a market- •
Slide 17: Advance the product and services pipeline
Advance the product and services pipeline, with annual R&D investment of 12% of revenue R&D investment strengthens our market- For personal use only leading technology position and helps drive $2.7bn+ investment in R&D market growth since listing • Continued R&D investment at ~12% of revenue • Portf
Slide 18: Providing a market leading portfolio of product and services
Providing a market leading portfolio of product and services Cochlear’s market-leading portfolio aims to improve hearing outcomes for recipients and provide a lifetime of hearing solutions. Our scale enables us to develop all aspects of the product and service portfolio, leading to improved outcomes
Slide 19: Deliver our latest sound processor upgrade technology
Deliver our latest sound processor upgrade technology to existing recipients The growing recipient base underpins For personal use only growing demand for Services • In FY23 we delivered latest generation sound processors to over 48,000 prior generation cochlear implant recipients, up 19%, growing d
Slide 20: Strengthen our lead in customer service and support
Strengthen our lead in customer service and support Connected care is our vision for hearing Cochlear’s connected care solutions care – where Cochlear, the recipient and For personal use only hearing care professionals work together Surgical Care In-clinic Care to ensure the right care is available
Slide 21: Maintain high standards of product quality, safety and reliability
Maintain high standards of product quality, safety and reliability Our market-leading products are the result of For personal use only our world-class manufacturing process and meet stringent, internationally recognised standards • Cochlear’s implants are the most reliable over time* • Our world-cla
Slide 22: Thriving people
Thriving Strategic priorities people A stronger organisation • Strengthen and nurture the organisational culture For personal use only • Attract, develop and retain talent • Champion a culture of diversity and inclusion An engaged, capable, high- • Support the wellness and safety of our teams perfor
Slide 23: Strengthen and nurture the organisational culture
Strengthen and nurture the organisational culture Shaping a culture that will enable us to grow and deliver for our customers in the future For personal use only • Building enterprise leadership - strengthening enterprise leadership with a focus on 94 % Understand how inclusive leadership, building
Slide 24: Champion a culture of diversity and inclusion
Champion a culture of diversity and inclusion A diverse, equitable and inclusive organisation improves employee engagement, our performance and productivity as well as customer engagement For personal use only Diversity and inclusion (D&I) strategy closely integrated with our work on culture • D&I s
Slide 25: Environmental responsibility
Environmental Strategic priorities responsibility Minimise environmental impact • Advance the implementation of initiatives to reduce our Scope 1, 2 and 3 For personal use only carbon emissions • Embed sustainability into product design, development and manufacturing To be a sustainable business, we
Slide 26: Reduce Scope 1, 2 and 3 carbon emissions
Advance the implementation of initiatives to reduce our Scope 1, 2 and 3 carbon emissions We are committed to taking an active role in the global effort to tackle climate change and are using For personal use only climate science to better understand our impacts and define our strategy Scope 1 and 2
Slide 27: Enhancing environmental management and compliance
Enhancing environmental management and compliance We continue to integrate environmental considerations into our business, focused on minimising our impact, complying with regulation and improving efficiency For personal use only Sustainable design and packaging • We incorporate a sustainability min
Slide 28: Sustained value
Sustained Strategic priorities value Consistent and sustainable growth • Deliver sustainable financial returns For personal use only • Improve efficiency and agility • Maintain high levels of corporate governance and an ethical and sustainable Maximising spending to grow the supply chain market whil
Slide 29: 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 For personal use only and market growth activities in sales revenue and dividends Research and development C
Slide 30: Delivering sustainable financial returns
Delivering sustainable financial returns Our long-term approach to investing, combined with disciplined capital management, has delivered consistent growth in sales revenue, profits and dividends over many decades For personal use only We plan and invest over long timeframes High level financial tar
Slide 31: Being agile and efficient
Being agile and efficient We are investing in strengthening our business processes and IT platforms to improve efficiency and agility. Successfully executing this transformation program will enable us to scale more effectively and provide even better solutions for our customers For personal use only
Slide 32: Creating value responsibly
Creating value responsibly We recognise that high standards of corporate governance and transparency are important for the creation, maintenance and enhancement of long-term sustainable value For personal use only • The Board is committed to high standards of corporate governance practice and foster
Slide 33: Our strategy is aligned to the mission and delivering value
Our strategy is strongly aligned to the mission and focused on delivering value to our stakeholders We help more people For personal use only to hear, creating value A healthier and more A lifetime of Thriving Environmental Sustained across five pillars productive society hearing solutions people re
Slide 34: Product and services innovation
Hear now. And always For personal use only Product and services innovation Cochlear Capital Markets Day | 27 October 2023 Jan Janssen Chief Technology Officer © Cochlear Limited 2023 1
Slide 35: For personal use only
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Slide 36: Delivering a lifetime of hearing outcomes
Delivering a lifetime of hearing outcomes with Telehealth market-leading implantable hearing products and services solutions Benchmark in Cochlear size, implant Cochlear™ Link implants reliability and Slim Modiolar For personal use only neural interface, Electrode Convenient, at-home with proven tes
Slide 37: Innovation focus areas
Innovation focus areas For personal use only Hearing Lifestyle and Connected Expanding the Outcomes ease-of-use Care portfolio 4
Slide 38: Innovation focus areas
Innovation focus areas For personal use only Hearing Lifestyle and Connected Expanding the Outcomes ease-of-use Care portfolio 5
Slide 39: Hearing outcomes have improved significantly over time
Hearing outcomes have improved significantly over time, leading to expanded indications and funding for cochlear implants… but there is still scope to improve For personal use only Drivers of improved hearing outcomes… Clinical data demonstrating that over time more people are hearing better with co
Slide 40: Improved hearing outcomes driven by sound processing advancements
Improved hearing outcomes over the past decade largely driven by advancements in sound processing technology Key sources of improved For personal use only hearing outcomes Information Recipient’s Implantable hearing system Front end source brain Speech understanding processing in quiet Rehabilitatio
Slide 41: Future technology aims to improve hearing outcomes
Future technology aims to improve hearing outcomes from next generation implant innovation Expected sources of For personal use only improved hearing outcomes Information Recipient’s Implantable hearing system Front end source brain Speech understanding processing in quiet Rehabilitation Hearing Mic
Slide 42: Key focus areas
Key focus areas Sources of improved hearing For personal use only outcomes Minimise Get close to the Front end cochlear Speech auditory nerve understanding processing trauma during Rehabilitation in quiet Hearing surgery time & effort in noise Speaker Telephone identification Hearing use Improve the
Slide 43: Peri-modiolar electrodes deliver stimulation closer to the hearing nerve
Peri-modiolar electrodes deliver electrical stimulation closer to the hearing nerve Lateral wall electrodes Peri-Modiolar electrodes For personal use only Lateral Wall Peri-modiolar electrode position electrode position Basilar Membrane Spatial patterns of simulated neural excitation: 100 activated
Slide 44: Surgical tools to minimise cochlear trauma
Surgical tools to minimise cochlear trauma during surgery The Nucleus® SmartNav System For personal use only • Includes an iPad app and a surgical processor for use in the operating room • Delivers wireless, real-time, actionable insights to support surgical navigation • Gives added assurance that s
Slide 45: Nucleus SmartNav System features
Nucleus® SmartNav System features For personal use only Impedance AutoNRT® Placement Speed of Check Check Insertion Angular Electrical Stapedius Seamless Data Automated implant Insertion Depth Reflex Threshold Export (Cloud) registration 12
Slide 46: Lateral wall electrodes = high channel interaction
Lateral wall electrodes = high channel interaction / overlap For personal use only 13
Slide 47: Peri-modiolar electrodes = reduce channel interaction
Peri-modiolar electrodes = reduce channel interaction / overlap For personal use only 14
Slide 48: Peri-modiolar electrode and precise nerve stimulation
The combination of a peri-modiolar electrode and more precise auditory nerve stimulation has the potential to further improve hearing outcomes For personal use only 15
Slide 49: A range of drug / device combination studies underway
A range of drug / device combination studies underway • Drug/device combinations have the potential to improve For personal use only hearing outcomes by minimising the foreign body Dexamethasone reaction from surgery eluting electrode clinical studies • We are progressing our dexamethasone eluting e
Slide 50: Innovation focus areas
Innovation focus areas For personal use only Hearing Lifestyle and Connected Expanding the Outcomes ease-of-use Care portfolio 17
Slide 51: Sound processor wearing options
Living your life – cochlear implant sound processor wearing options For personal use only Behind-The-Ear (BTE) Off-The-Ear (OTE) Continue to shrink the No external processor Sound Processors Sound Processors Sound Processor (TICI) Nucleus® 8 Sound Kanso® 2 Processor Sound Processor 18
Slide 52: Proven hearing performance technologies and connectivity
Proven hearing performance technologies and industry-leading connectivity Performance For personal use only Bimodal ForwardFocus Dual microphones SSiQ 2 with SCAN 2 ForwardFocus Usage data Hearing aid Nucleus® 8 Sound compatibility Processor Connectivity Lifestyle Direct streaming for Nucleus® Smart
Slide 53: Smart bi-modal hearing solution
Nucleus 7, Nucleus 8 & Kanso 2: smart bi-modal hearing solution For personal use only Kanso® 2 Nucleus® 8 ReSound / Sound Processor Sound Processor GN Hearing Hearing Aids 20 For compatibility information and devices visit www.cochlear.com/compatibility and www.resound.com/compatibility.
Slide 54: Auracast broadcast audio
For personal use only Share your audio Unmute your world Hear your best Auracast™ broadcast audio will let you Auracast™ broadcast audio will enable you Auracast™ broadcast audio will allow you to invite others to share in your audio to fully enjoy televisions in public spaces, hear your best in the
Slide 55: 1st Generation totally implantable cochlear implant research device
1st Generation totally implantable cochlear implant research device (2005-2006) For personal use only • Hearing performance in quiet and in noise significantly degraded when using invisible hearing • Usability strongly affected by the presence of body noise (breathing, swallowing, eating, ...) • Due
Slide 56: 2nd Generation totally implantable research device
2nd Generation totally implantable cochlear implant research device (2018) Subcutaneous Microphone For personal use only Magnet Receiver coil Electronics Package Integrated battery Custom body-worn charger Intracochlear Electrode Array (Contour Advance) Cochlear Nucleus® 6 Sound Processor 23
Slide 57: 2nd Generation TICI hearing modes
2nd Generation TICI research device hearing modes External hearing mode Invisible hearing mode For personal use only 24
Slide 58: 2nd Generation TICI significant improvements in hearing outcomes
2nd Generation TICI research device – significant improvements in hearing outcomes Clinical study results (Briggs) For personal use only • 10 patients • Baseline hearing (aided pre implant) of ~3% sentence understanding in quiet • At 6 months after TICI switch on they can hear up to 80% in invisible
Slide 59: Innovation focus areas
Innovation focus areas For personal use only Hearing Lifestyle and Connected Expanding the Outcomes ease-of-use Care portfolio 26
Slide 60: Connected Care supports patients at every stage
Connected Care supports patients at every stage of their journey For personal use only Surgical Care In-clinic Care Self-managed Care Remote Care 27
Slide 61: Connected Care provides convenience and confidence
Connected Care provides convenience and confidence to customers and has the potential to drive clinic efficiency and enable data-driven care For personal use only • Convenience and confidence: delivering digital products that enhance the patient and professional experience In-clinic Care • Real-time
Slide 62: Innovation focus areas
Innovation focus areas For personal use only Hearing Lifestyle and Connected Expanding the Outcomes ease-of-use Care portfolio 29
Slide 63: The Osia System
The Osia™ System® Removing boundaries to bone conduction For personal use only Powered by unique High-frequency power Piezo Power™ technology & performance1 Discreet & easy to use NEW! Only active system enabling MRI at 3 T2 1. Osia System R5 Datasheet. Cochlear Limited, Australia. 2023; D1991788 30
Slide 64: High-resolution MRI, without compromise
High-resolution MRI, without compromise For personal use only NEW! Piezo Power™ Next-generation transducer 3 T magnet The Osia System is the only active BC system enabling MRI at 3 T 1,2* *The OSI300 implant is MRI conditional at 1.5 T and 3 T with magnet in place. Refer to Osia MRI guidelines for f
Slide 65: Piezo Power transducer
Piezo Power™ transducer For personal use only No unnecessary No performance surgeries degradation Minimal image Designed to artefact withstand 3T MRI exposure 32 *The OSI300 implant is MRI conditional at 1.5 T and 3 T with magnet in place. Refer to Osia MRI guidelines for further information.
Slide 66: Next-generation magnet
Next-generation 3 T magnet Direction of MRI field For personal use only Magnet automatically realigns to MRI field No headwraps or splint kits Simple magnet removal if needed For further reduced image artefacts 33 *The OSI300 implant is MRI conditional at 1.5 T and 3 T with magnet in place. Refer to
Slide 67: Continue to invest ~12% of sales revenue in R&D
We continue to invest ~12% of sales revenue each year in R&D, with a strong pipeline of products and services in development For personal use only • Opportunities to improve hearing outcomes from implant-focused investment – peri-modiolar electrodes + more precise auditory nerve stimulation, drug /
Slide 68: Developing a treatment pathway for adults
Hear now. And always For personal use only Developing a treatment pathway for adults Cochlear Capital Markets Day | 27 October 2023 Dean Phizacklea SVP Global Strategic Marketing © Cochlear Limited 2023 1
Slide 69: The global burden of hearing loss is significant
The global burden of hearing loss is significant • Hearing loss affects more than 1.5 billion people or 20% of global population1 For personal use only • Most people with severe or worse hearing loss are over 601 • 1 in 3 people over 65 are affected by hearing loss1 • Global cost of unaddressed hear
Slide 70: Ageing population and growing eligible segment
An ageing population and a growing segment of patients who would be eligible for cochlear implants provides opportunity for sustained growth FY23 Cochlear surgery mix For personal use only DEVELOPED MARKETS Paediatrics Adults Seniors 30% 37% 33% Source: World Health Organization; 2021 3
Slide 71: Reimbursement and funding for CI in developed markets
Reimbursement and funding for CI is well established in developed markets and improving in emerging markets For personal use only Reimbursement criteria usually focuses on age, PTA threshold level and word / speech recognition Country Age PTA Audiometric criteria criteria criteria (adults) USA 9m+ 7
Slide 72: Cochlear implants became standard of care for children by 2010
Cochlear implants became the standard of care for children by 2010 Clinical evidence supporting the benefits of bilateral For personal use only Development of health economic data implantation. By 2010, 50% of supporting cost effectiveness of cochlear children under 3 receive two implants for childr
Slide 73: Estimated penetration of cochlear implants in children
Estimated penetration of cochlear implants in Children (developed markets) For personal use only 98.7% 99.8% 92.7% 94.8% 83.1% 86.1% 81.2% 53.0% USA Germany United Kingdom Australia France Japan Canada South Korea • Eligible patient population aged 0-18 with hearing loss > 90db • Prevalence % derive
Slide 74: Estimated penetration of cochlear implants in seniors
Estimated penetration of cochlear implants in Seniors (developed markets) Seniors (65+ years of age ) For personal use only 10.1% 7.3% 4.8% 2.5% 2.5% 2.1% 1.5% 0.7% USA Germany United Kingdom Australia France Japan Canada South Korea • Eligible patient population aged 65+ with hearing loss > 70db •
Slide 75: Hearing loss is not seen as a serious medical condition
Hearing loss is not seen as a serious medical condition For personal use only US Survey of 400 PCPs Carlsson et al ,Awareness, Perceptions, and Literacy Surrounding Hearing Loss and Hearing Rehabilitation Among the Adult Population in the United States , Otology & Neurotology, Vol. 43, No. 3, 2022 8
Slide 76: Low patient awareness of cochlear implants
Patients have a very low level of awareness of a cochlear implant as a potential treatment option For personal use only 9 Marinelli et al , Cochlear Implant Awareness in the United States: A National Survey of 15,138 Adults , SEMINARS IN HEARING/VOLUME 43, NUMBER 4 2022
Slide 77: Barriers to referral
Professionals most commonly cite knowledge and patient-related concerns as barriers to referral; commercial concerns are important for audiology-only clinics For personal use only Not Top of Mind Minimal Exposure Primary Barriers Unfamiliarity with Qualifications (Perceived) Few Eligible Patients CI
Slide 78: Why we need a Standard of Care
Why we need a Standard of Care for cochlear implants For personal use only “One of the challenges we have is that if the various different professionals, are not all “There is a lack of person-centred and giving, similar or the same and consistent, consistent referral pathways, which results in mess
Slide 79: The key elements of Standard of Care
For personal use only The key elements of Standard of Care 12
Slide 80: Evidence for hearing treatment in healthy ageing
Hearing aids only** Cochlear implant*** 9 95 Overall hearing performance % % Satisfied or Very Satisfied 13 76 Ability to understand % % TV what is said on TV 8 79 Ability to understand % % conversations in a small group 2 58 Hearing performance in % % For personal use only background noise 13 68 Ab
Slide 81: Large multicentre randomised clinical studies
Large multicentre, randomised clinical studies will support the Standard of Care in Adults For personal use only Multicentre RCT to assess whether a cochlear implant or Multicentre RCT to determine efficacy of hearing hearing aids are better at improving speech treatment in reducing cognitive declin
Slide 82: Increasing clinical evidence on hearing health
Increasing clinical evidence demonstrating the importance of addressing hearing health and the role of hearing loss interventions For personal use only In older adults at increased risk for cognitive decline, hearing intervention slowed down loss of thinking and memory ability by 48% over 3 years 15
Slide 83: Establishing a clearly defined care pathway
For personal use only International Consensus Establishing a clearly defined Paper 2020 care pathway for adult cochlear implantation will enable Living Guidelines 2023 consistent and equitable hearing healthcare Local adaptation and implementation 16
Slide 84: Living Guideline activity heatmap
Heatmap of Living Guideline France ASCOLTA activity guidelines & WHO Nordics promoting via CIREN (CI Referral Expert Network) and adaption in country On track Interest in adaptation, Portugal, Spain and France Japan engaged to Requires development collaborate with JP task For personal use only Force
Slide 85: Engaging key stakeholders to raise awareness
Engaging key stakeholders to Partner with the World Health Organization to ensure raise the awareness and Hearing and Hearing Health remains a public health For personal use only advocate for the importance of priority and support the WHO efforts in enacting change in countries. hearing and hearing
Slide 86: Enabling hearing professionals to identify candidates
Enabling hearing professionals to identify US Cochlear Collaborate with hearing health providers to establish and refer potential For personal use only Provider sustainable referral pathways for suitable candidates. Network (CPN) candidates Developing and deploying cochlear implant training modules
Slide 87: The journey to a Standard of Care
The journey to a Standard of Care requires an integrated approach and a sustained effort For personal use only Standard of Care Establish cochlear implants as the Standard of Care for adults with severe to profound sensorineural hearing loss. This includes the proper diagnosis, timely referral to an
Slide 88: Cochlear's US business
Hear now. And always For personal use only Cochlear’s US business Cochlear Capital Markets Day | 27 October 2023 Lisa Aubert President, North America © Cochlear Limited 2023 1
Slide 89: A perspective of hearing healthcare in the US
Population Awareness Access Reimbursement A perspective of hearing healthcare in the US For personal use only Broader Payer Evolving Growing Indications & Coverage Market Awarness in Accessibility to Expanding to Landscape Healthcare Hearing Meet patient Healthcare Needs
Slide 90: Changing patient population and market landscape
Population Awareness Access Reimbursement A changing patient population and market landscape continues to support growth with senior population For personal use only Growing US Senior Population 100 Millions 90 • Everyday in the US 10,000 ‘new’ 65 year 80 olds join the senior segment of our 70 popul
Slide 91: Patient mix over 20 years
Population Awareness Access Reimbursement Our patient mix over the past 20 years has continued to evolve with >75% of our recipients now being adults or seniors For personal use only Patient Age at surgery over the past 20 years • >75% of US candidates are adults or seniors 24% Children • Over this
Slide 92: Growth in prevalence of hearing loss greatest in seniors
Population Awareness Access Reimbursement Growth in prevalence of severe to profound hearing loss is greatest in seniors, with relative growth in pediatric prevalence declining For personal use only % Growth of Prevalence by Age Bucket Total prevalence (70db and higher) & Cumulative Historical vs. F
Slide 93: Growing awareness in healthcare
Population Awareness Access Reimbursement For personal use only Consumer awareness Growing Awarness in The emergence of the digital savvy senior Healthcare Professional collaboration & advocacy
Slide 94: Awareness of cochlear implants and AARP survey
Despite increasing awareness of cochlear implants in North America, the urgency of treating hearing loss is often deprioritized In partnership with AARP, the leading senior's publication in the US, we surveyed For personal use only more than 600 members between the ages of 50 & 70+ in relation to he
Slide 95: Digital-savvy senior and direct to consumer
Population Awareness Access Reimbursement The ongoing emergence of the digital savvy senior has opened new communication pathways leading to increased awareness For personal use only • Our Direct to Consumer (DTC) programs continue to support our growing business • In FY23 DTC contributed to >25% of
Slide 96: Collaborative approach to standards for hearing health care
Population Awareness Access Reimbursement Indications Driving a collaborative approach to establish standards for hearing health care For personal use only Focus on 3 priorities Secure evidence-based procedural A simple metric as a vital sign Simple and consistent changes for timely referral for for
Slide 97: Access through indications
Population Awareness Access Reimbursement Access through indications For personal use only Broader Access through the medical channel & community hearing care indications & accessibility to Hearing Healthcare Access through professional partnership Access through through an evolving care model
Slide 98: Expansion of indications increases addressable population
Population Awareness Access Reimbursement Expansion of indications increases the addressable adult & seniors population Severe to Profound Hearing loss:2 For personal use only An estimated 1m adults aged 60+ met our traditional indications profile in 2020 and is estimated to increase to close to 4m
Slide 99: Patients most likely to enter the medical channel
Population Awareness Access Reimbursement Patients desiring hearing care guidance are most likely to enter the medical channel 1 For personal use only Physicians who specialize in hearing issues are the top choice, followed • Referral for audiological assessment by audiologists and then PCPs comes f
Slide 100: Greater access to more implanting centers and new surgeons
Population Awareness Access Reimbursement Greater access to more implanting centers and the emergence of ‘newer in practice’ surgeons continues to support growth in the US Comparing the average number of CI surgeries on an annual For personal use only Comparison of Cochlear recipient numbers in Nort
Slide 101: The Cochlear Provider Network (CPN)
The Cochlear Provider Network (CPN) The CPN program over the past 10 years has played a significant role in enabling patients to receive care where and when they need it. It has also provided candidates with greater accessibility to audiometric assessments and counselling on implantable hearing solu
Slide 102: Evolving clinical protocol and patient pathway
Population Awareness Access Reimbursement To meet a growing patient base, the clinical protocol and patient pathway needs to continuously evolve For personal use only Established CI New CI Follow Established Clinical Pathway Follow Up Protocol Up Protocol 10 10 WEEKS weeks Immediate capacity created
Slide 103: Patient centric journey supported by effective tools
Population Awareness Access Reimbursement A patient centric journey, supported by effective tools, enables continued high standards of patient care for a growing patient base For personal use only Candidate Journey Recipient Journey Counseling Awareness & Surgery Activate Optimize Maintain Upgrades
Slide 104: Insurance coverage and change
Population Awareness Access Reimbursement For personal use only Insurance coverage and change Payer coverage expanding to meet patient Public & private Insurance needs No insurance
Slide 105: Favorable insurance coverage for the majority of Americans
Population Awareness Access Reimbursement Favorable insurance coverage for the majority of Americans 99% 100% Insurance coverage for Americans with SNHL hearing loss * * For personal use only of private employer health insurance of state Medicaid programs provide CI Uninsured plans and managed care
Slide 106: Hearing healthcare in the US
Population Awareness Access Reimbursement Hearing healthcare in the US • The next 15-20 years continues to see a growing senior population who have a higher predisposition to For personal use only hearing loss, however we have work to do in serving them • Seniors’ understanding & awareness around he
Slide 107: Global supply chain overview
Hear now. And always For personal use only Global supply chain overview Cochlear Capital Markets Day | 27 October 2023 Greg Bodkin SVP Global Supply Chain © Cochlear Limited 2023 1
Slide 108: Key internal supply chain locations
Cochlear’s key internal supply chain locations M&L Operations For personal use only Baha Actuators Regional (Gothenburg, Fulfilment Hub Europe, Middle Sweden) East, Africa (Weybridge, UK) Implants & Sound Processors (Chengdu, China) North America (Denver) China (Chengdu) Latin America (Panama) Sound
Slide 109: The philosophy that underpins our supply chain
The philosophy that underpins our supply chain • Tight integration and co-location with R&D: For personal use only o Improves quality o Speed to market • We own and vertically integrate key manufacturing process steps that are critical to quality or managing supply risk • Lean methodology to drive e
Slide 110: Rigorous supply chain management drives implant reliability
Rigorous supply chain management is a core driver of implant reliability For personal use only People / Quality Process Capacity • Team member selection, on boarding, • Implant manufacture is complex: over 181 • We continue to invest capex to align with training and assessment is a critical part of
Slide 111: Geographical split of suppliers
Geographical split of suppliers Deep 3rd party supplier relationships • 565 suppliers from across the world • Segment suppliers based on customisation requirements For personal use only America and impact on product quality Asia Australia • Long standing relationships with key suppliers – many over
Slide 112: Inventory is used to reduce supply risks
Inventory is used to reduce supply risks • Supply risk results from long product life – product life cycle For personal use only can be longer than component lifecycle requiring lifetime buys of components to support recipients • Inventory is used to buffer supply risk for single source suppliers –
Slide 113: For personal use only
For personal use only © Cochlear Limited 2023.
Slide 114: Notes and references
Notes Hear now.and references And always Forward looking statements c. Barnett S. A hearing problem. American Family Physician [serial on the Internet]. (2002, Sep 1), [cited July 3, 2018]; 66(5): 911. Cochlear advises that this document contains forward-looking statements which may be subject to si
Slide 115: For personal use only
For personal use only www.cochlear.com © Cochlear Limited 2023