Slide 1: Results for half year ended 31 December 2014 (H1 F15)
2/10/2015 For personal use only Cochlear Limited Results for half year ended 31 December 2014 (H1 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
Slide 2: H1 F15 Overview
2/10/2015 H1 F15 Overview For personal use only • F15 builds on the product launches that started in F14 when products were launched across all product categories, eg Nucleus® 6, Baha® 4, Baha Attract • In addition, further regulatory approvals in F15 is a key focus, eg Nucleus Profile implants, Wir
Slide 3: Sales in Constant Currency up 15%
2/10/2015 Cochlear: Sales in Constant Currency (CC) up 15% For personal use only • Record H1 sales of $440.5 million • Sales up 17% and in constant currency (H1 F14 restated at F15 rates) up 15% • Sound processor upgrade sales H2 $82.2 million up 98%. Since Nucleus 6 launch ~ 15,000 recipients have
Slide 4: Bone Conduction/Acoustic and Americas Sales
2/10/2015 Cochlear: Sales of Bone Conduction / Acoustic Implants in Constant Currency (CC) up 22% For personal use only • Record bone conduction/acoustic implant sales of $57.5 million up 25% (up 22% in CC) • USA: CMS will continue coverage of Baha System for Medicare H2 patients • Over 4,000 Baha A
Slide 5: EMEA and Asia Pacific Sales in Constant Currency
2/10/2015 Cochlear EMEA: H1 F15 Sales in Constant Currency up 7% For personal use only • Record H1 F15 EMEA sales of $181.6 million, up 7% (up 7% in CC) • Growth biased to Western Europe with sales up 12% in CC • CE Mark approvals include: • Wireless Accessories and H2 Aqua+ for Nucleus 6 • Nucleus
Slide 6: H1 F15 Regional Split of Sales and Operating Margin
2/10/2015 Cochlear: H1 F15 Regional Split of Sales For personal use only EMEA1 Americas 41% 44% CC2 growth 7% CC growth 26% Asia Pacific 15% 1 EMEA is Europe, Middle East and Africa CC growth 8% 2 CC is constant currency H1 F15 Operating Margin • COGS/sales for H1 F15 was 28.9% compared to 32.8% for
Slide 7: Nucleus SmartSound iQ and True Wireless with Nucleus 6
2/10/2015 Nucleus 6 For personal use only • SmartSound® iQ • Industry’s smallest processor • Waterproof with Aqua+ accessory • Data logging • Hybrid hearing • True wireless True Wireless with Nucleus 6 For the most challenging situations Listening to speech Streaming music or Watching TV at a over a
Slide 8: True Wireless with Nucleus and H1 F15 Summary
2/10/2015 True Wireless with Nucleus 6 For personal use only Cochlear Wireless Mini Microphone Carry on conversations in the noisiest environments Cochlear Wireless Phone Clip Connect hands-free to friends and family using smartphone Cochlear Wireless TV Streamer Watch TV and participate in family c
Slide 9: Cochlear H1 F15 Financial Performance
2/10/2015 For personal use only Neville Mitchell CFO Results for the half year ended 31 December 2014 Cochlear H1 F15 Financial Performance H1 F15 H1 F14 % $m $m Change Sales Revenue 440.5 377.0 17% FX Contracts (loss) (2.2) (5.9) Total Revenue 438.3 371.1 18% EBIT * 100.5 49.4* 103% Net Profit afte
Slide 10: H1 F14 – H1 F15 NPAT Waterfall and FX Impact
2/10/2015 Cochlear H1 F14 – H1 F15 NPAT Waterfall For personal use only AUD Millions Impact of Changing FX Rates on H1 F15 NPAT A$m F/(U) Income Statement Translation Impact Sales Revenue 7.3 Difference H1 F15 Total Expenses including tax (3.3) actual vs H1 F15 at H1 F14 rates 4.0 Transaction Impact
Slide 11: H1 F15 Working Capital and (Debt) / Cash
2/10/2015 Cochlear H1 F15 Working Capital For personal use only • H1 F15 inventory days increased to 199 (189 days in June F14) • Debtor days 85 (74 days in June F14 ) • Trade receivables at $208.3 million ($201.3 million in June F14) Cochlear H1 F15 (Debt) / Cash 31 Dec 30 Jun 2014 2014 $m $m Opera
Slide 12: H1 F15 Summary
2/10/2015 H1 F15 Summary For personal use only • Continued roll out of new products across all categories that started in F14 • Record H1 sales of $440.5 million up 17%, and up 15% in constant currency • H1 F15 NPAT of $71.4 million, up 94%* • Regulatory approvals have been obtained for further prod
Slide 13: FX Contract Cover and Rates
2/10/2015 FX Contract Cover and Rates as at 31 December 2014 For personal use only Total FX hedges at USD EUR JPY 31 Dec 2014 expressed in Foreign Currency (millions) 263.0 154.0 1,549 FX Hedges at 31 December 2014 Expressed in AUD millions 295.7 230.2 17.5 Total % of total cover (in AUD) 55% 42% 3%
Slide 14: Foreign Exchange: Period End Rates
2/10/2015 Foreign Exchange: Period End Rates For personal use only 31 Dec 30 June % change 2014 2014 Period end rates (used for translating Bal Sheet) USD 0.81 0.94 14% Euro 0.67 0.69 3% JPY 98.0 95.5 3% Property, Plant & Equipment & Leasehold Improvements 31 Dec 2014 $m Gross value 31 December 2014
Slide 15: Corporate & Other Net Expenses
2/10/2015 Corporate & Other Net Expenses For personal use only H1 F15 H1 F14 $m $m Research and Development 61.0 64.1 Corporate Administration & Marketing 39.1 30.5 Other Income and FX (gains) / losses (2.2) (2.3) Corporate and other net expense (note 5) 97.9 92.3 Non-IFRS Financial Measures Non-IFR
Slide 16: For personal use only
For personal use only 16 2/10/2015