Cochlear : 2022 Modern Slavery Statement

Cochlear Modern Slavery Statement 2022

Our story

For over 40 years Cochlear has been bringing people all over the globe into the world of sound.

Professor Graeme Clark, an Australian ear surgeon, saw first-hand the isolation and frustration that comes from living in a world of silence as his father struggled with hearing difficulties. On holiday in 1977, fiddling with a shell and a blade of grass, Graeme realised there was a safe way to insert electrodes into the inner ear. It was Graeme's determination to help others that realised our first implantable solution, reconnecting Rod Saunders to hearing and bringing music into his life.

Today, Cochlear is the leader in implantable hearing solutions, connecting hundreds of thousands of people globally to a life full of hearing.

The pioneering spirit that started Cochlear all those years ago continues to drive us forward and our commitment is stronger than ever. We're transforming the way people understand and treat hearing loss, and we're committed to reaching more people to provide support for a lifetime of hearing.

About this statement

This joint modern slavery statement has been prepared by Cochlear Limited (ACN 002 618 073) on behalf

of itself and Cochlear German Holdings Pty Limited (ACN 134 635 251) (CGHPL) as reporting entities under the Modern Slavery Act 2018 (Cth) and on behalf of Cochlear Europe Limited (CEL) as a 'commercial organisation' under the United Kingdom's Modern Slavery Act 2015. It describes the approach and actions taken by Cochlear Limited, CGHPL, and

their controlled entities including CEL (Cochlear) to assess and address modern slavery risks in their operations and supply chains during the financial year ended 30 June 2022 (FY22).

Cochlear's structure and operations

Cochlear Limited is the parent company of the Cochlear group and commenced operations in 1981 as part of the Nucleus group.

In 1995, Cochlear Limited listed on the Australian Securities Exchange, and is a top 50 listed Australian company. CGHPL is a wholly-owned Australian subsidiary within the Cochlear group and is a parent company for a number of Cochlear subsidiaries incorporated in Europe.

Cochlear's global headquarters are on the campus of Macquarie University in Sydney, with regional offices in Asia Pacific, Europe and the Americas. Cochlear has a deep geographical reach, selling in over 180 countries, with a direct presence in more than 30 countries and a global workforce of close to 4,500 employees. Cochlear operates manufacturing facilities and/or research & development (R&D) centres in Australia, Belgium, China, Malaysia and Sweden.

Cochlear develops, manufactures, and markets various hearing solutions for people with moderately severe to profound hearing loss including those with conductive hearing loss, mixed hearing loss and single- sided deafness. More than 700,000 Cochlear implant devices have been provided for people who benefit from one - or two - of our implantable solutions.

Whether these hearing solutions were implanted today or many years ago, we continue to bring innovative new products to market as well as sound processor upgrades for prior generations of recipients. We invest around 12% of sales revenue each year in R&D, with over $2 billion invested since listing, and participate in over 100 collaborative research programs worldwide.

Cochlear's global headquarters in Sydney is primarily responsible for global supply chain management and for implementing key procurement policies and procedures for our major manufacturing sites. Screening and risk-based assessment of modern slavery risks for the Cochlear group are also largely coordinated by Cochlear's global headquarters. Activities relating to the marketing, distribution and sales of Cochlear's products and services are managed and executed by Cochlear's regional subsidiaries that are entities controlled by Cochlear Limited.

Gothenburg

Mechelen

Basel

Denver

Chengdu

Panama KualaLumpur

Brisbane

Sydney

Global headquarters

Regional office

Global operations

Direct operations

Cochlear's Supply Chains

Cochlear relies on its global network of suppliers to support its manufacturing, R&D, and business operations.

During FY22, Cochlear worked with over 600 external suppliers which provided a diverse range of products and services such as electronic components, batteries, precious metals, metal injection moulded components, transport and freight to support our manufacturing and R&D activities (Production-relatedSuppliers). In the same period, Cochlear also engaged more than 2,500 external suppliers to enable and support Cochlear's business activities and corporate functions (Non-production-relatedSuppliers).

We have a significant degree of oversight with respect to our Production-related Suppliers, given our centralised management of procurement processes for manufacturing sites and given our need to carefully select, evaluate, monitor and tightly control the quality of inputs used in manufacturing, packaging and transporting our products. Set out below is a table outlining our top 10 sourcing locations by spend during FY22 with our Production-related Suppliers, and an overview of the key categories of products or services procured from each location.

	Location	Key categories of products or services externally procured
1	Australia	Precious Metal Components, Acoustic Components, Metal Machined Components
2	United States	Batteries, Electronic Assemblies
3	Switzerland	Batteries, Printed Circuit Boards, Metal Machined Components
4	China	Parts Plastic Moulded, Electronic Assemblies, Printed Circuit Boards
5	Hong Kong	Finished Goods Electronic Assemblies, Metal Injection Moulded Components
6	Germany	Electronic Assemblies, Metal Stamped Components
7	Sweden	Adhesives, Gaskets, Accessories
8	Denmark	Electronic Assemblies
9	Netherlands	Electronics Integrated Circuits
10	Belgium	Electronics Integrated Circuits

Percentage of Cochlear's spend by locations of Production related Suppliers

18%		Europe
	36%
	Australia
18%
	North America

Asia

28%

Cochlear's headquarters in Sydney provide centralised oversight and management for the procurement of goods and services from Non-production-related Suppliers. However, a significant portion of the purchasing from Non-production-related Suppliers is undertaken by the teams and departments in various regions and functions in a more decentralised manner,

owing to the breadth of our business and the number of locations in which Cochlear's marketing, distribution and sales functions operate. Set out below is a table outlining our analysis on top 10 sourcing locations by spend during FY22 with our Non-production-related Suppliers, and an overview of key categories of products or services procured from each location.

	Location	Key categories of products or services supplied
1	Australia	Corporate Services, Consulting, Facilities, IT (Software, Hardware/Consultants),
Transport & Freight
2	Germany	Corporate Services, Consulting, Facilities, Construction, Promotional, Conference
3	United States	Corporate Services, Consulting, Facilities, Transport & Freight, Conference
4	Belgium	Corporate Services, Consulting, Facilities
5	China	Corporate Services, Consulting, Facilities, Construction
6	Malaysia	Corporate Services, Consulting, Facilities, Transport & Freight

7 United Kingdom Corporate Services, Consulting, Facilities, Transport & Freight, Conference

8	Singapore	Corporate Services, Consulting
9	Sweden	Corporate Services, Consulting, Facilities
10	Japan	Corporate Services, Consulting, Facilities, Construction, Promotional, Conference

				9	7
	7			8
	4	2	6
	10	9
	3
3	2				5	4

10

5

8 6

1 1