Slide 1: Results for the half year ended 31 December 2007
For personal use only Cochlear Limited Results for the half year ended 31 December 2007 Chris Roberts Chief Executive Officer Neville Mitchell Chief Financial Officer Cochlear – Overview • Medical device company (~26yr): global leader in implantable devices for the hearing impaired • Huge unmet clin
Slide 2: Record Financial Results for H1 F08
Record Financial Results for H1 F08 For personal use only H1 F08 H1 F07 $ millions $ millions +/(-)% Cochlear implants 247.5 240.3 ↑ 3% Bone Anchored (Baha) 36.7 30.4 ↑ 21% FX Contracts 13.8 5.4 ↑ 156% Revenue 298.0 276.1 ↑ 8% EBIT 84.7 73.6 ↑ 15% Net Profit After Tax 57.1 48.8 ↑ 17% Core Earnings*
Slide 3: Continuing Cochlear Implant Unit Sales Growth
Continuing Cochlear Implant (CI) For personal use only 9,000 Unit Sales Growth 8,000 7,000 6,000 H1 F08 CI unit sales of CI Unit Sales 5,000 8,968 units, 4,000 up 13% on H1 F07 3,000 2,000 1,000 - H1F01 H2F01 H1F02 H2F02 H1F03 H2F03 H1F04 H2F04 H1F05 H2F05 H1F06 H2F06 H1F07 H2F07 H1F08 Ongoing Sales
Slide 4: H1 F08 Sales Revenue Regional Split and Europe Sales
H1 F08 Sales Revenue Regional Split (AUD) For personal use only and Constant Currency (cc) Growth* Americas Europe 42% 43% cc growth ↑8% cc growth ↑24% Asia-Pacific 15% cc growth ↑8% * Constant currency: prior periods restated at H1F08 FX rates Europe: Half Yearly Sales in Constant Currency* (at F08
Slide 5: Asia Pacific and Americas Half Yearly Sales
Asia Pacific: Half Yearly Sales in Constant For personal use only Currency* (at F08 FX Rates) • Sales growth H1F08 over H1F07, 45 in constant currency was 8% • China donation - 574 units 40 shipped since start of program Constant Currency* Sales A#039;millions 35 ─ Cochlear partnering with various grou
Slide 6: Americas Growth Initiatives and Bilateral Implantation
For personal use only Americas Growth Initiatives Include a Focus on Evolving the Business Model • Expansion of consumer advocacy network Building awareness (an extra ~200 volunteers during H1F08) and a stronger • Recruitment of Territory Outreach Specialists direct channel to (n=12) mobilising refe
Slide 7: Software Release: Custom Sound 2.0
For personal use only Software Release: Custom Sound™ 2.0 Programming software Custom Sound 2.0 launching now, includes: • Hearing Mentor™- expert guidance to fine tune maps with click of a button everyday noise focus music • Freedom for N22 recipients, honoring our lifetime commitment SmartSound 2:
Slide 8: Electro-Acoustic Stimulation for Patients with Residual Hearing
For personal use only Electro-Acoustic Stimulation (EAS) for Patients with Residual Hearing (Hybrid S and Hybrid L) • Hybrid S: n= 87 pts in USA trial (enrolment completed H2 F07) • Hybrid L: n=45 pts (Europe & Australia) • EAS workshop in Hannover Dec 07 – Hybrid S: 91% pts had hearing preserved po
Slide 9: Cochlear Summary
For personal use only Cochlear Summary • Record financial results for H1 F08 – Revenues $298 million ↑ 8% – Core Earnings $61.9 million ↑ 17% • Impact of strengthening AUD managed well, with constant currency sales up 15%, underpinning EBIT growth of 15% • Ongoing progress in building internal capab
Slide 10: H1 F08 Financial Performance
For personal use only H1 F08 Financial Performance H1 H1 F08 F07 $ millions $ millions +/(-)% Total Revenue 298.0 276.1 ↑ 8% Reported NPAT 57.1 48.8 ↑ 17% Core Earnings 61.9 52.8 ↑ 17% Dividends Interim Dividend 70c 55c ↑ 27% Record Date 29 February 2008 Payable Date 18 March 2008 Franking 100% 100%
Slide 11: Core Earnings Reconciliation in Constant Currency
H1 F07 – H1 F08 Core Earnings For personal use only Reconciliation in Constant Currency 100.0 36.9 (14.9) 90.0 80.0 (0.6) (6.6) 70.0 (2.6) (4.9) 1.8 61.9 60.0 52.8 50.0 40.0 30.0 20.0 10.0 0.0 5 2 8 . 3 6 9 . -1 4 9 . -0 .6 -6 .6 -2 .6 -4 .9 1 .8 6 1 .9 H1 F'07 Core Gross Margin Sales & Adminstratio
Slide 12: Cash Generated and Inventory
For personal use only Cash Generated H1 F08 H1 F07 $ millions $ millions Net cash provided by operating activities before 70.1 57.5 changes in assets and liabilities Changes in assets & liabilities (Increase) in trade debtors (20.0) (16.2) (Increase) in inventory (7.6) (9.1) (Increase) in net tax as
Slide 13: Working Capital Debtors and Gearing
For personal use only H1 F08 Working Capital Debtors (Days Outstanding) • Increase in debtor days to 85 (June 07, 79) $160.0 90 • Specific countries, e.g. Net Receivables ($ millions) $140.0 80 $120.0 70 Southern 60 $100.0 Mediterranean longer 50 Days $80.0 40 $60.0 30 $40.0 20 $20.0 10 $0.0 0 Jun-0
Slide 14: Cochlear Summary and Questions
For personal use only Cochlear Summary • Record financial results for H1 F08 – Revenues $298 million ↑ 8% – Core Earnings $61.9 million ↑ 17% • Impact of strengthening AUD managed well, with constant currency sales up 15%, underpinning EBIT growth of 15% • Ongoing progress in building internal capab
Slide 15: Foreign Exchange Rates
For personal use only Foreign Exchange Rates applied F08 vs F07 H1 F08 H1 F07 Average rates (used for translating P&L) USD 0.87 0.76 Euro 0.62 0.60 JPY 101.2 90.3 Contract rates (used to bring FX to Aust) USD 0.78 0.74 Euro 0.59 0.57 JPY 83.0 65.9 Foreign Exchange Rates Going Forward Average Contrac
Slide 16: H1 F08 Core Earnings Reconciliation
For personal use only H1 F08 Core Earnings Reconciliation H1 F08 H1 F07 $m $m Earnings before interest and tax 84.7 73.6 Core earnings adjustments pre-tax • R&D 0.8 0.9 • Acquired intangible amortisation 1.4 1.2 • Share based compensation 2.9 2.2 Core EBIT 89.8 77.9 Net interest (5.0) (2.7) Core tax