FY17 Result Presentation
17 August 2017
Chris Smith CEO Dig Howitt President Brent Cubis CFOFY17 - Result highlights
Strong momentum across the businessCC sales revenue 12% with strong H2 momentum, 15% in CC
CC Services revenue 10% and CC Acoustics revenue 26%
Cochlear implant units 8% (14% excl China tender) with developed markets up 12%
Market leadership position strengthenedNew products broadening the portfolio and driving share gains - Kanso, CI532, Baha 5
Ongoing investment in DTC and sales force expansion driving market growth
Strong financial positionNet profit 18% to $224m
Solid operating leverage
Operating cash flow up 40% supports increased dividend and funding of acquisitions with minimal change to net debt
CC = constant currency
2
Hearing loss market opportunity
360,000,000Over 5% of the world's population - 360 million people - has disabling hearing* loss (328 million adults and 32 million children).1
1 in 3Nearly 1 out of every 3 people over the age of 65 are affected by hearing loss. It affects communication and can contribute to social isolation, anxiety, depression and cognitive decline.2
37,000,000people who could benefit from a cochlear implant to treat severe to profound hearing loss.3,4
Market penetration.5
Cochlear's mission
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 hearing outcomes.
4
Strengthened the Smart Hearing Alliance
Innovation fund
Delivered financials in line with forecast
Shape the
Organisation • Continued to globally align enabling activities
China manufacturing plan & Lane Cove acquisition
Cochlear Family launched in 13 countries with >150%
growth in members
Nucleus 6 upgrade penetration of ~40% across developed markets
Expansion of CochlearLink
Grow the
Core
Strategic platforms -
solid progress made
New products strengthen market leadership - Kanso, CI532, Baha 5 and Nucleus 7 from Sep17
Expanded DTC programs
Expanded the sales force (>100 reps)
Sycle acquisition
Build a Service Business
Enhanced leadership capabilities
Focus on the
Customer
Value
Creation
5
Investments to Grow the Core
SycleLargest provider of audiology practice management software in the US with an estimated ~70% market share
Opportunity to improve the continuum of care for patients in the hearing aid channel
FOX / OtoconsultExclusive licensing and development agreement with Otoconsult NV for its artificial intelligence fitting assistant FOX (Fitting to Outcomes eXpert)
Enable a faster and more consistent fitting of cochlear implants to drive clinic efficiencies and deliver the best possible patient outcomes
6
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 in a fast-growing, Top 5 market
Capacity to increase our global cochlear implant production by
around 50%
Lane Cove property acquisitionSecures our Australian manufacturing footprint
7
Nucleus® 7 Sound Processor
Made for iPhone allows users to stream sound directly to
their sound processor, offering greater accessibility, connectivity and wireless solutions
Nucleus 7 Smart App
Control
Hearing
tracker
Find My
Processor
8
Cochlear Ltd. published this content on 17 August 2017 and is solely responsible for the information contained herein.
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