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 8% (14% excl China tender) with developed markets up 12%

    Market leadership position strengthened
  • New 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 position
  • Net 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

360,000,000

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 contribute to social isolation, anxiety, depression and cognitive decline.2

37,000,000

people 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

Sycle
  • Largest 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 / Otoconsult
  • Exclusive 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 acquisition
  • Secures 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.
Distributed by Public, unedited and unaltered, on 16 August 2017 23:31:05 UTC.

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