Cochlear™ – connecting people to the world of sound

• 2

Content 4 Our business 6 Cochlear milestones 8 Worldwide operations10 Human Resources at Cochlear12 Innovations14 Cochlear solutions for everybody16 Cochlear’s portfolio18 Solutions for life20 Lifetime commitment22 How hearing works24 Hearing with Cochlear technologies

Introduction 3 •

What guides us

We connect people with moderate to profound hearing loss to the world of sound by offering life-enhancing hearing solutions that deliver the best possible hearing outcomes. Making evidence-based choices and investing heavily in product and service innovation, we support both patients and medical professionals with a comprehensive infrastructure enabling them to benefit from our solutions for life.

Cochlear’s vision is to connect the hearing impaired to a world of sound by offering life-enhancing hearing solutions.

What we strive for

What we do Our business

Our vision

Our values

Customer sat isfact ion:

Mutual respect :

Performance:

Improvement and innovat ion:

Profess ional ism:

We meet or exceed customer expectations by actively seeking to understand patient’s requirements, responding to their needs in a timely manner and continuously improving our processes and offerings.

We work in a supportive and cooperative manner, respecting diverse opinions, personalities and styles.

We are committed to achieving Cochlear’s overarching goals through high-performing individuals and teams.

We act with integrity and in the wider interests of Cochlear™.

We monitor the quality and reliability of our products and services and take the initiative in optimising work methods, systems, processes and designs.

“In spite of the problems and criticisms of my research,

I just had to go on. A cochlear implant was the only hope for

people like my father of ever hearing.”

Graeme Clark, Laureate Professor Emeritus, University of Melbourne, Australia,

pioneered research that led to the first multi-channel cochlear implant

Industry leader

• 4 Our business

Moved by his personal experience of the impact of deafness through his father’s hearing impairment Professor Graeme Clark was inspired to find a solution to restore hearing and conducted fundamental research with a multi-disciplinary team to develop the first multi-channel cochlear implant. In 1978, he successfully performed the first implantable multichannel “bionic ear” surgery.

The commercial development of the concept prototype was conducted through Nucleus Ltd. Nucleus was a group of medical technology companies established by one of the earliest entrepreneurs of technology, Paul Trainor. His vision was to pursue excellence in medical technology through innovative design, development, manufacture and worldwide distribution of cardiac pacemakers, cochlear implants, cardiac defibrillators and diagnostic ultrasound. The successful development of the commercialised cochlear implant required interdisciplinary breakthroughs in micro-electronic engineering and neurosensory research. To achieve this, the Cochlear division of Nucleus was established and in 1983, Cochlear commercially released the first generation of the Nucleus® Cochlear Implant System.

A spirit of innovation and a passion for enhancing the quality of life of hearing-impaired individuals is still at the heart of Cochlear’s mission today. To date, more

Bringing the gift of sound to people around the world

than 250,000 people have entrusted Cochlear with restoring their hearing. This not only reflects the excellence of our solutions, which exceed regulatory safety and quality requirements; it is also evidence of how highly medical professionals and patients value our services and our long-term commitment as their needs and technologies evolve. Investing significantly in research and development, Cochlear continues to enhance the quality of life of people with moderate to profound hearing loss for whom hearing aids do not provide sufficient benefit. In addition to leading innovation into cochlear implant technology, we are the market leader in bone conduction and a pioneer in electro-acoustic hearing solutions.

There are 250 million people in the world today suffering from moderate to profound hearing loss in both ears, a figure set to grow as the global population ages and life expectancy continues to rise. Cochlear has been listed on the Australian Securities Exchange since 1995 and has since grown to around 2,500 employees in over 50 countries with sales in more than 100 countries. This, along with its industry-leading portfolio of products and services puts Cochlear in a strong competitive position which will allow us to bring hearing to an increasing number of people, providing lifelong access to a world of sound that might otherwise remain closed.

Our business 5 •

Passionate visionaries

"Translating knowledge and technology into the gift

of hearing for an ever-increasing number of people around the globe

is the mission – and passion – of all at Cochlear.“

Dr Chris Roberts, CEO/President, Cochlear Ltd

• 6 Cochlear milestones

1967Professor Graeme Clark, University of Melbourne, begins research into implantable hearing solutions for people suffering from sensorineural hearing loss.

1981Paul Trainor’s Nucleus group starts commercial development of the multi-channel cochlear implant.

1983Cochlear Limited established with headquarters in Sydney, Australia.

1978Rod Saunders becomes first cochlear implant recipient.

1977First patient receives bone conduction hearing implant.

Company milestones

1998First multi-channel behind-the-ear sound processor.

2005First Nucleus Freedom™ splashproof sound processor introduced.

2009Introduction of the Cochlear Nucleus 5 System – a new benchmark in hearing performance.

2002First behind-the-ear sound processor with inbuilt telecoil.

2000Introduction of the award-winning Nucleus 24 Contour ™ perimodiolar electrode array.

Product milestonesCochlear™ Nucleus®

For more than a quarter of a century Cochlear has been shaping the future of hearing restoration by pushing the limits of technology while maintaining the strictest quality standards. With a strong focus on product and service innovation, a pipeline full of products and opportunities,

visionary leaders and dedicated employees, Cochlear is determined to maintain its leadership in providing the best possible hearing outcomes to children and adults with moderate to profound hearing loss.

Shaping the future of hearing restoration

Cochlear milestones 7 •

1987European office established in Basel, Switzerland.

2005Cochlear acquires Entific Medical Systems, extending its portfolio to Baha® bone conduction hearing solutions.

2011More than 250,000 people worldwide rely on Nucleus Cochlear Implants or Baha bone conduction hearing solutions.

2001Cochlear acquires Philips Hearing Instruments with significant European research office.

1995Cochlear listed on the Australian Securities Exchange.

2005Introduction of Baha Divino®, the first Baha Sound Processor with digital signal processing.

2007Introduction of Baha Intenso™, the most power-ful headworn sound processor.

2009Release of Baha BP100 offering a new level of bone conduction technology.

2010/11Introduction of the Baha 3 System – the system of choice in direct bone conduction, and launch of Baha BP110 Power for patients with greater hearing loss.

2008Introduction of Hybrid™ product line.

Cochlear™ Baha® Cochlear™ Hybrid™

LondonParis

Bologna

Istanbul

Gothenburg

HanoverMechelen

Basel

Beijing

Tokyo

Hong Kong

Singapore

SydneyMelbourne

Brisbane

Denver

Toronto

LondonParis

Bologna

Istanbul

Gothenburg

HanoverMechelen

Basel

Beijing

Tokyo

Hong Kong

Singapore

SydneyMelbourne

Brisbane

Denver

Toronto

• 8 Worldwide operations

Global footprint,local impact

“Having Cochlear Bone Anchored Solutions based in EMEA is an amazing

opportunity. The continued development of this fascinating technology

keeps us at the forefront of an immensely competitive environment,

providing innovative solutions for the benefit of recipients worldwide.”

Anthony Manna, President, Cochlear Bone Anchored Solutions

Worldwide operations 9 •

Geared to the needs of Europe, Middle East and AfricaWith sales in more than 100 countries, Cochlear operates a tight network of direct operations and carefully selected distributor channels around the world.

Headquartered in Basel, Switzerland, Cochlear EMEA oversees sales and marketing activities in the culturally and economically diverse region of Europe, the Middle East and Africa (EMEA). With around 500 permanent employees in EMEA, Cochlear is active in more than 50 markets in this region, including the dynamic emerging economies of Central and Eastern Europe and the Middle East. It has direct sales operations in Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Sweden, Switzerland, Turkey and the United Kingdom.

In addition, Gothenburg, Sweden, is home to the global headquarters of Bone Anchored Solutions (BAS), the Cochlear division charged with developing, designing and producing the Baha line of products and services. BAS is the global market leader in bone conduction hearing solutions, with more than 80,000 patients served worldwide.

In Mechelen, Belgium, Cochlear operates the Cochlear Technology Centre (CTC), a key innovation centre that develops new technologies, products and processes for superior hearing outcomes.

Housed in the same building in Mechelen is the Cochlear Academy. Established in 2004, it offers a wide range of training for professional customers, including audiologists, ENT general practitioners and surgeons throughout the EMEA region. It also provides training to Cochlear employees. With 3,000 course participants enrolled in more than 160 courses since its inception, the Academy plays an important role in ensuring correct use of Cochlear products, which meet the highest quality and safety standards and frequently exceed local regulatory requirements.

Cochlear’s EMEA region is a major business driver, contributing more than 40% of global revenue through an organisational structure that accommodates the needs of local markets, while leveraging the strength of Cochlear’s global franchise.

• 10 Human Resources at Cochlear

“Investing in our own people is investing in the best

possible solutions for patients around the world.”

Rita Berger, Head of Human Resources, Cochlear Europe, Middle East and Africa

Excellent employees

Human Resources at Cochlear 11 •

Taking people centre stageThe success of our business depends on highly qualified, talented and motivated people. Coming from a variety of educational and cultural backgrounds, our employees understand the diverse needs of our customers and are frequently catalysts for innovation. A significant share of our 500 employees in the EMEA region are highly skilled and are experts in their field; many of them have a background in engineering or audiology.

Our staff are passionate about their work and delivering value to our customers through the best products and services. They share a strong belief in growth and innovation. Each individual within our diverse workforce is able to make a real difference, work cross-functionally and contribute his or her best.

Lifelong learning and development is vital for sustainable success. In addition to in-house training at the Cochlear Academy in Belgium or our local offices, everyone who works for Cochlear benefits from a range of development opportunities including external courses, internal cross-functional projects and international moves.

Apart from technical skills, we focus on behavioural competencies and aligning personal and corporate values. In order to live up to our promise of providing solutions for life, we naturally focus on long-term relationships and nourishing a strong learning and performance culture.

Innovation is not just one of our core values, it is a strategic priority and has been the lifeblood of our company since its foundation. As the technology leader in its field, Cochlear invests around twice the industry average and a significant percentage of its global sales revenue in research and development, with approximately half of our headcount employed in this field. To ensure the best possible hearing outcomes, we research a range of technologies for a variety of conditions.

While technological innovation is key, it is not the only form of innovation at Cochlear. We also make every effort to optimise our services, processes and operations for the benefit of the hundreds of thousands of hearing impaired and the medical professionals who work with them.

Examples of some of our most important innovations are presented on the next page.

Outcome-driven innovation Setting the pace of a whole industry

• 12 Innovations

With the Cochlear Nucleus System, Cochlear is delivering best hearing performance by offering maximum patient benefits in the most discreet form available. Cochlear is proud to provide a complete system to the market which consists of four innovative key components, each at the cutting edge of cochlear implant technology – the world’s most reliable cochlear implant, our smallest sound processor, the smartest remote assistant and the most advanced software. Together they provide the best possible hearing outcomes, making the Nucleus System first choice for patients, surgeons and audiologists.

Cochlear Nucleus System

Proven outcomes are the cornerstone of the Cochlear Baha 3 System. Baha 3 offers advanced signal processing, improved speech understanding and an implant more stable than ever before. Baha solutions are the choice for a natural pathway to hearing if conventional air conduction hearing aids or reconstructive middle ear surgery is insufficient. Baha is a simple and effective hearing solution for people with conductive hearing loss, mixed hearing loss and single-sided sensorineural deafness.

With the Nucleus Freedom Hybrid Sound Processor and Nucleus Hybrid L24 Implant, Cochlear Europe has introduced the first generation of the revolutionary Hybrid System. Hybrid is a unique solution for people suffering from mild to moderate hearing loss in the low frequencies and severe to profound loss in the high frequencies. Traditionally, these patients have depended on hearing aids for acoustic amplification. Unable to hear high-frequency sound, they found it difficult to understand speech, particularly in settings with significant background noise, and to appreciate general sounds and music. Thanks to the combination of acoustic amplification and electrical stimulation, Hybrid brings to life missing high frequencies, allowing users to take part in conversations and enjoy a more complete hearing experience.

Cochlear Baha 3 System

Cochlear Hybrid System

“We’ll continue to redefine the industry standard for unparalleled

hearing outcomes.”

Dr Ernst von Wallenberg, Head – Clinical, Technical, Research & Regulatory,

Cochlear Europe, Middle East and Africa

Innovations 13 •

• 14 Cochlear solutions for everybody

Life-enhancing solutions

Cochlear solutions for everybody 15 •

Taking down the walls of silenceAccording to World Health Organisation (WHO) estimates, around 280 million people worldwide have moderate to profound hearing loss in both ears. As the global population grows and life expectancy increases, the number of people with hearing loss will continue to rise, making it one of the most widespread global conditions afflicting people in the 21st century.

While the causes of hearing impairment are manifold, the walls of silence almost always impose a heavy social and economic burden on the individuals affected and their families. Just imagine being unable to talk to someone out of your field of vision or being unable to talk to a group in a setting with a significant background noise – both

everyday situations that those with complete hearing master with ease. Or picture a child with learning difficulty in school as a result of delayed speech or cognitive development due to impaired hearing. Without adequate treatment, significant hearing loss prevents you from enjoying life to the full.

We are proud to restore hearing to people of all ages with moderate to profound hearing loss. Our solutions allow them to participate in group conversation, minimising the need for others to repeat words. They enable people with hearing loss to hear public announcements in buses, call their mothers and appreciate birdsong. Cochlear hearing solutions enhance their quality of life.

Proud to support academic excellenceCochlear is more than a manufacturer or marketer of hearing devices. We are committed to providing solutions for life. In addition to ongoing investments in product innovation, this mission calls for strong service and support to our customers, both medical professionals and patients, extending far beyond product purchase. We take pride in opening up the world of sound to our product users and seeing how they have a lasting impact on the hearing world.

This is why we launched the Cochlear Graeme Clark Scholarship programme in 2002. Named after Professor Clark, whose research sparked the development of cochlear implants, the programme honours Nucleus Implant recipients around the world who excel academically. Scholarships offer financial assistance towards tertiary education at an accredited university or other higher education institution.

“I feel honoured and immensely privileged. Cochlear has

helped me fulfil my dream of becoming a vet – first with my

implant and now with this award.”

Bethan Hindson, 2010 winner of the Graeme Clark Scholarship UK

• 16 Cochlear´s portfolio

Technology leadership

Cochlear´s portfolio 17 •

As the industry leader, Cochlear continually invests in its lifetime service commitment and three distinct product lines in order to address specific hearing impairment conditions.

Cochlear implants are the most effective solutions for restoring hearing to people with severe to profound sensorineural hearing loss. Our Nucleus product line continues to set the benchmark in hearing performance. It relies on technology that sends coded sound signals to the hearing nerve, completely bypassing the damaged parts of the inner ear.

The Baha System is an effective hearing solution for people with conductive hearing loss such as that caused by draining ears, atresia or malformation, mixed hearing loss and single-sided sensorineural deafness. Completely bypassing the outer and middle ear, Baha offers a natural pathway to hearing, allowing sound to be transmitted through direct bone conduction. The system combines a digital high-performance sound processor with a

small titanium implant placed in the bone behind the ear. A major advantage of this technology is that the result can be evaluated before the actual surgery is performed.

The Hybrid System uses electro-acoustic stimulation (EAS), combining electrical stimulation, as in a cochlear implant, and acoustic stimulation, as in a hearing aid. It leads the way for people who have useful low-frequency residual hearing but require electrical stimulation for the higher frequencies. Patients in Europe have been the first to benefit from Hybrid as this revolutionary technology was introduced to the European market in 2008.

Alongside the ongoing development of these product lines, Cochlear’s electrode portfolio delivers surgical choice and maximises hearing for the widest possible range of patient conditions. Further investment of time and resources in the search for alternative technologies means that Cochlear will continue to redefine industry standards well into the future.

A portfolio that sets standards

“With the European regulatory framework and numerous

high-level research institutes, we’re well positioned to continue to

contribute significantly to Cochlear’s global research programme.”

Carl van Himbeeck, General Manager, Cochlear Technology Centre Belgium

• 18 Solutions for life

Solutions for life

Solutions for life 19 •

Cochlear is dedicated to providing hearing solutions that truly enhance people’s lives. In addition to focusing on the best possible hearing outcomes when developing new products, we also provide a range of services to support both medical professionals and patients at every stage.

When upgrading components and accessories, we will continue to ensure full backwards compatibility with existing devices. This gives patients and their families the confidence that they can continue to benefit from technological advances without having to undergo additional surgery.

Acquiring a hearing solution from Cochlear is not simply about buying a product that will last a few years before being surpassed by an improved technology; it is about choosing a partner that will accompany you as your needs evolve and ensure you benefit from every new generation of hearing solutions.

Designed to grow as people’s needs evolve

“Our success is rooted in a sound dose of

professional curiosity and an unwavering commitment

to provide the best possible hearing outcomes.”

Richard Brook, President, Cochlear Europe, Middle East and Africa

• 20 Lifetime commitment

Treatment

Lifetime commitment 21 •

Hearing loss in children The first years of life are the most critical for language development. This is why it is important for children who are born deaf or have developed severe to profound hearing loss in their early years to receive a cochlear implant as soon as possible. Although one or two in every 1,000 babies are born with a hearing loss, it is often difficult for parents to detect early-childhood hearing loss simply through observation. Fortunately, a growing number of maternity wards offer hearing screening to detect a hearing impairment only days after birth. Babies suffering from hearing loss are usually referred to specialists immediately in order to expose them to sound as soon as possible.

In cases where hearing aids alone are not enough for optimal speech and language development, cochlear implants provide access to sound, enabling them to lead a normal life in a hearing world from the outset.

We are proud to have opened up the world of sound to tens of thousands of children, empowering them to interact with their friends or attend a regular school. Knowing the decision for a cochlear implant is a major step, we are committed to providing the best possible support to both parents and the healthcare professionals.

Never too early, never too late

Hearing loss in adults Typically, progressive hearing loss in adults will go unnoticed for a long time. Although the affected individuals themselves may notice their hearing is deteriorating, many people will manage for years before they acknowledge their impairment to others and seek professional assistance, fearing the stigma associated with “going deaf”.

Where hearing aids alone are not enough, the ENT general practitioner, surgeon or audiologist will refer the hearing impaired person to a specialist clinic for expert counselling. There, a dedicated team will assess if a cochlear implant, Hybrid or Baha system would be suitable for the patient. After routine surgery, an audiologist will adapt the sound processors and offer individualised hearing training.

To date, tens of thousands of adults have chosen a hearing solution from Cochlear. With Cochlear’s commitment to lifetime support and innovation, they benefit from our solutions for life.

Someone may experience hearing loss if any part of the ear is injured, damaged or missing.

ear Canal eardruM CoChlea

Bones

• 22 How hearing works

1 Sound waves travel through the ear canal and strike the eardrum.

2 These sound waves cause the eardrum and the three bones within the middle ear to vibrate.

3 These vibrations are transferred to the fluids

in the inner ear – known as the cochlea – and cause the tiny hair cells in the cochlea to move.

4 The movement of the hair cells produces neural impulses which are sent along the hearing nerve to the brain, where they are interpreted as sound.

Sound is perceived naturally by way of air and bone conduction.

How hearing works

1

2

3

4

• The sound processor A with coil B is worn behind the ear.

• The acoustic component C is worn in the ear.

• The cochlear implant D is placed just under the skin, behind the ear.

1 External sound processor captures sound and divides it into high frequencies and low frequencies.

2a Sound processor encodes the high frequencies into digital signals which are sent to the implant.

2b Sound processor amplifies the low frequencies which are sent to the acoustic component.

3 The hearing nerve response caused by electrical and acoustic stimulation is sent to the brain which combines them into a single perceived sound.

The unique Hybrid electro-acoustic hearing solution is best for people with mild to moderate hearing loss in the low frequencies and severe to profound loss in the high frequencies.

Hearing with the Cochlear Hybrid System

The Cochlear Hybrid System has both external and internal parts:

1

2a

2b3

C

A

D B

Hearing with the Cochlear Nucleus System

The Cochlear Nucleus System has both external and internal parts:

23

1

• The sound processor.• The connecting abutment.• The titanium implant, placed in the bone behind

the ear.

1 The sound processor detects sound, cleans and amplifies it, and transforms it into vibrations.

2 The abutment receives the amplified vibrations and transfers them to the osseointegrated titanium implant.

3 The implant transfers the sound vibrations directly to the cochlea using bone conduction.

Hearing with the Cochlear Baha 3 System

• The sound processor A with coil B is worn behind the ear.

• The cochlear implant C is placed just under the skin, behind the ear.

Cochlear implants are best for people with severe to profound sensorineural hearing loss.

Bone conduction hearing solutions are best for people suffering from conductive hearing loss, mixed hearing loss and single-sided sensorineural deafness.

The Cochlear Baha 3 System consists of three parts:

1 The sound processor captures sounds and converts them into digital code.

2 The sound processor transmits the digitally coded sound through the coil to the implant just under the skin.

3 The implant converts the digitally coded sound to electrical signals and sends them along the electrode array, which is positioned in the cochlea.

4 The implant’s electrodes stimulate the cochlea’s hearing nerve fibres, which relay the sound signals to the brain to produce hearing sensations.

5 You manage your hearing via the remote assistant or directly from the sound processor.

A

BC

2

1

3

4

5

As the global leader in hearing solutions, Cochlear is dedicated to bringing the gift of sound to people all over the world. With our hearing solutions, Cochlear has reconnected over 250,000 people to their families, friends and communities in more than 100 countries.

Along with the industry’s largest investment in research and development, we continue to partner with leading international researchers and hearing professionals, ensuring that we are at the forefront in the science of hearing.

For the hearing impaired receiving any one of Cochlear’s hearing solutions, our commitment is that for the rest of their life they will Hear now. And always

Nucleus is a registered trademark of Cochlear Limited. Baha and Divino are registered trademarks of Cochlear Bone Anchored Solutions AB.Freedom, Hybrid, Intenso, Contour, Cochlear and the elliptical logo are trademarks of Cochlear Limited. © Cochlear AG 2012

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Cochlear Ltd (ABN 96 002 618 073) 14 Mars Road, Lane Cove NSW 2066, Australia Tel: 61 2 9428 6555 Fax: 61 2 9428 6352Cochlear AG European Headquarters, Peter Merian-Weg 4, 4052 Basel, Switzerland Tel: 41 61 205 0404 Fax: 41 61 205 0405

Cochlear Deutschland GmbH & Co. KG Karl-Wiechert-Allee 76A, 30625 Hannover Germany Tel: 49 511 542 770 Fax: 49 511 542 7770Cochlear Europe Ltd 6 Dashwood Lang Road, Bourne Business Park, Addlestone, Surrey KT 15 2HJ, United Kingdom Tel: 44 1932 87 1500 Fax: 44 1932 87 1526Cochlear Benelux NV Schaliënhoevedreef 20i, 2800 Mechelen, Belgium Tel: 32 1579 5511 Fax: 32 1579 5500Cochlear Italia S.r.l. Via Larga 33, 40138 Bologna, Italia Tel: 39 051 601 53 11 Fax: 39 051 39 20 62Cochlear France S.A.S. Route de l’Orme aux Merisiers, Z.I. Les Algorithmes - Bât. Homère, 91190 Saint Aubin, France Tel: 33 811 111 993 Fax: 33 160 196 499Cochlear Nordic AB Konstruktionsvägen 14, 435 33 Mölnlycke, Sweden Tel: 46 31 335 14 61 Fax: 46 31 335 14 60Cochlear Tıbbi Cihazlar ve Sağlık Hizmetleri Ltd. Sti. Cubuklu Mah. Bogazici Cad., Bogazici Plaza No: 6/1, Kavacik 34805 Beykoz-Istanbul, Turkey Tel: 90 216 538 5900 Fax: 90 216 538 5919

www.cochlear.com