Growing Opportunities

EDITORIAL
Growth was achieved in all regions with Asia Pacific being the standout in F11.
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The enhancements made to the Cochlear Nucleus 5 System played a key role in driving revenues. This was supported in each region with various initiatives to drive awareness and demand for Cochlear solutions.

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AMERICAS

Performance

  • Revenue in the Americas region grew 16% in constant currency to a record $317 million.
  • Sales were driven by the Cochlear Nucleus 5 System enhancements, which are allowing Nucleus 24 and Freedom recipients to upgrade and benefit from the latest technology.

Launches

  • The new Baha 3 System launched in Cochlear Americas.
  • The Nucleus 5 System continues to gain momentum after a successful launch in F10.

Regional footprint

  • A subsidiary company was established in Panama supporting distribution in Latin America.

Market growth

  • Cochlear Americas has led efforts to form the American Cochlear Implant Alliance, comprising clinicians and industry representatives nationwide to help establish cochlear implantation as the standard of care for people with severe to profound hearing loss.
  • In F11, Cochlear Americas piloted a consumer outreach program in select markets, focusing on educating adults about cochlear implants and Baha. This integrated program consists of public relations, advertising and direct mail to consumers and primary healthcare providers, followed by well attended educational seminars. Subsequent growth seen in these pilot markets has led to plans to expand this program in F12.
  • Investment continued in the Recipient Services business, with the expansion of the recipient call centre to include extended service hours, new chat and online support functions through social media channels.

EUROPE

Performance

  • Revenue in the Europe region, which includes the Middle East and Africa, grew 14% in constant currency to a record of $293 million.
  • Cochlear implant sales were strong across the region, with bilateral cochlear implant sales boosted in the UK and Belgium by positive reimbursement decisions.

Launches

  • Enhancements to the Cochlear Nucleus 5 System were launched across the region, enabling Nucleus 24 and Freedom recipients to upgrade, a development that was enthusiastically received.
  • The expanded Cochlear electrode portfolio was launched, representing a broader portfolio to better address the preferences of surgeons. Initial results are encouraging and have helped grow market share in various clinics.
  • The Baha 3 System was expanded with the new BP110 Power Sound Processor.

Regional footprint

  • In F11, European distribution was moved to a new facility in Weybridge, UK, to support Cochlear's growth in the region. During F11, approximately one million distributions were made from the UK centre to destinations across the region.
  • Facility space in Germany has been expanded and in Italy the organisation moved to new premises. Both activities were necessary in order to support the growth in these countries.

Market growth

  • The recently introduced 'Science and Research Seminars' have brought Cochlear and global experts together, to share knowledge on advancing outcomes in a variety of disciplines. These meetings are well received by customers and enable us to continue to develop new products and solutions.
  • North Africa and the Middle East have shown continued strong market growth in F11, but remain politically volatile markets.
  • In F11, a pilot program was run in Germany to raise awareness and understanding of Cochlear technologies in the referring medical community and has shown significant progress.

ASIA PACIFIC

Performance

  • Revenue in the Asia Pacific region grew 31% in constant currency to a record $122 million and it was the standout region in F11.
  • Growth was driven by strong cochlear implant sales in the emerging markets, in particular India and China.
  • Australia, our most penetrated market, also continued its strong growth.

Launches

  • The Nucleus 5 System continued to be rolled out across the region in accordance with country specific regulatory approvals. In F11, the System was introduced in Taiwan, Korea, Philippines, Vietnam and Thailand.
  • The rollout of Nucleus 5 for Nucleus 24 implant recipients was well received and upgrade processor sales were above last year's levels.

Regional footprint

  • In F11, the Company initiated direct operations in India after more than 15 years of working with local distribution agents. There are now 30 people in the India office.
  • The Asia Pacific regional office was relocated to Macquarie University to join the global headquarters. This will help drive distribution efficiencies.

Market growth

  • A Voice for Children campaign was launched in India and China, encouraging referrers and consumers to screen all babies for hearing loss. The campaign also helped people to better understand the impact of early intervention on hearing outcomes and language development.
  • The Australian Federal Government announced funding for processor upgrades for 21 – 26 year olds from January 2012.
  • Japan obtained Baha product approval in F11 and launch activities were received positively by Japanese ENT professionals.
  • Following the terrible earthquake and tsunami in Japan, Cochlear ensured that all employees based in Japan and their families were safe, and delivery of products and services were unaffected.