HY17 Result Presentation

14 February 2017

Chris Smith Chief Executive Officer & President

Neville Mitchell Chief Financial Officer

HY17 - Result highlights

Positive momentum continues across all markets
  • Cochlear implant units 10% (16% excl Chinese Central Government tender)

  • ~10% unit growth across both developed and emerging markets

  • Sales revenue up 4% (8% in constant currency) with CC growth delivered across all product categories and regions

    Strengthened market leadership position
  • New products broadening the portfolio - Kanso and CI532

  • Ongoing investment in market growth initiatives - DTC and sales force expansion

    Strong financial position
  • Net profit 19% to $111.4m

  • Free cash flow up 50% supports increased dividend and debt reduction

2

FY17 guidance maintained

FY17 net profit guidance maintained at $210-225m, up ~10-20% on FY16 at 75c AUD/USD

~10-20%

Adjusted net profit excludes patent dispute provision of $15.8 million after tax in FY14

3

Hearing loss market opportunity

Over 5% of the world's population - 360 million people - has disabling hearing* loss (328 million adults and 32 million children).1 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 Market penetration3
  1. Who.int. WHO | Deafness and hearing loss [Internet]. 2015

  2. Who.int. WHO | 10 facts on deafness [Internet]. 2015.

  3. Market penetration. This figure is a global estimate based on Cochlear sourced data.

* Disabling hearing loss refers to hearing loss greater than 40 decibels (dB) in the better hearing ear in adults and a hearing loss greater than 30 dB in the better hearing ear in children.

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.

5

Strategic platforms

Focus on the Customer

Grow the Core Build a Service Business Shape the Organisation Value Creation

6

Cochlear implants

Market-leading products and investment in market growth initiatives drive demand Cochlear implant unit growth 10%
  • Unit growth up 16% (excl Chinese Central Govt tender units)

  • Developed markets up ~10% - continuing strong growth in the US & Western Europe

  • Emerging markets up ~10% - China Other, India and Central & Eastern Europe

    New products launched
  • Slim Modiolar electrode (CI532) & Kanso sound processor

    Initiatives to accelerate market growth
  • DTC & sales force expansion

7

Acoustics

(bone conduction and acoustic implants)

Baha product innovation driving demand and share gains Sales revenue 20% in CC
  • Solid performances across all regions

    New products drive sales growth
  • Baha® 5 System made for iPhone

  • Strong uptake of Baha 5 Power and SuperPower sound processors

CC = constant currency

8

Cochlear Ltd. published this content on 14 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 February 2017 21:32:07 UTC.

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