Cochlear (COH) investor relations material

FY27 outlook and financial ambition

• FY27 guidance reaffirmed: low-single-digit constant-currency revenue growth and A$330–350m underlying net profit; July–October in line with expectations, with developed-market CI volumes up mid-single digits.

• FY27 revenue expected to grow modestly, supported by referral initiatives, direct-to-consumer activity and greater medical-channel engagement; assumptions issued in August still hold.

• Long-term ambition, not annual guidance: 10% underlying net profit growth p.a., 70% dividend payout based on underlying net profit and A$200m net cash target.

• Revenue doubled since FY16; FY16–FY25 revenue CAGR was 8% and underlying net profit CAGR was 9% p.a.

Growth strategy and adult access

• Three growth strategies: expand treatment access, shape the hearing implant category through innovation, and transform care; technology and AI are positioned as enablers across all three.

• Adult CI penetration remains below 5% of the severe-to-profound hearing-loss segment, versus infant penetration above 80% across most markets.

• Adult growth depends on more predictable recognition, referral, access and motivation; evidence, clinical guidelines and medicalised care pathways are intended to make treatment more routine.

• In the US, about one-third of the patient pathway is supported and two-thirds self-navigate; the supported channel grew 10% in FY26, while self-navigation is more exposed to consumer sentiment, costs and insurance friction.

• Early pathway results include UK referrals doubling in FY23–FY26 and Australian private surgeries rising 15% in FY26.

Innovation and care model

• R&D investment was A$323m in FY26, about 12% of sales revenue; more than A$3bn has been invested since FY00.

• Nexa is positioned as a smart implant platform with onboard memory, upgradeable firmware, diagnostics and future research capabilities; real-world evidence showed Nexa users averaged 48 additional minutes of daily hearing versus non-Nexa users.

• Totally implantable cochlear implant technology aims to offer external-processor-free hearing; third-generation pivotal studies had 92 patients implanted, and the technology remains investigational and subject to approval.

• Connected care combines surgical, in-clinic, remote and self-managed services; the future model targets fewer appointments and less clinical time per adult recipient, subject to confirmation of scope and evidence.

• Drug-eluting electrodes and focused stimulation are under development to protect cochlear health and personalise stimulation; future capabilities remain subject to clinical evidence and regulatory approval.