#1ResMed Changing lives with every breath Investor Presentation Q4 2018 Aug 2, 2018#2Presentation of Financial Information & Forward-Looking Statements Historical financial and operating data in this presentation reflect the consolidated results of ResMed Inc., its subsidiaries, and its legal entities, for the periods indicated. This presentation includes financial information prepared in accordance with accounting principles generally accepted in the United States, or GAAP, as well as other financial measures referred to as non-GAAP. The non-GAAP financial measures in this presentation, which include non-GAAP Income from Operations, non-GAAP Net Income, and non-GAAP Diluted Earnings per Share, should be considered in addition to, but not as substitutes for, the information prepared in accordance with GAAP. For reconciliations of the non-GAAP financial measures to the most comparable GAAP measures, please refer to the earnings release associated with the relevant reporting period, which can be found on the investor relations section of our corporate website (investor.resmed.com). In addition to historical information, this presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on ResMed's current expectations of future revenue or earnings, new product development, new product launches, new markets for its products, integration of acquisitions, leveraging of strategic investments, litigation, and tax outlook. Forward-looking statements can generally be identified by terminology such as “may”, “will”, “should”, “expects", "intends", "plans”, “anticipates”, “believes”, “estimates", "predicts", "potential", or "continue", or variations of these terms, or the negative of these terms or other comparable terminology. ResMed's expectations, beliefs, and forecasts are expressed in good faith and are believed to have a reasonable basis, but actual results could differ materially from those stated or implied by these forward-looking statements. ResMed assumes no obligation to update the forward-looking information in this presentation, whether as a result of new information, future events, or otherwise. For further discussion of the various factors that could impact actual events or results, please review the "Risk Factors" identified in ResMed's quarterly and annual reports filed with the SEC. All forward-looking statements included in this presentation should be considered in the context of these risks. Investors and prospective investors are cautioned not to unduly rely on our forward-looking statements. © 2018 ResMed | Q4 2018 Investor Presentation | 2 ResMed#3Overview © 2018 ResMed I Q4 2018 Investor Presentation | 3 ResMed#4> Who We Are / What We Do • • World-leading connected health company with more than 5 million cloud-connected devices Enabling care teams in over 65 countries to remotely monitor patients every day Innovative designer and manufacturer of award- winning devices and cloud-based software solutions - Diagnose, treat, and manage sleep apnea, chronic obstructive pulmonary disease, and other respiratory conditions Products and solutions designed to improve patient quality of life, reduce impact of chronic disease, and lower healthcare costs Cloud-based software health applications and devices designed to provide connected care, improving patient outcomes and efficiencies for healthcare providers Tools that allow fewer people to manage more patients Empower patients to track own health outcomes © 2018 ResMed I Q4 2018 Investor Presentation | 4 m 85 100 points Excel results, Alexander ResMed#5Why Invest? - Driving Long-Term Shareholder Value لا Market Dynamics Underpenetrated markets in sleep & COPD • Healthcare costs continue to increase • Focus on improving patient outcomes • Value-based . technology solutions Growth & Innovation Global leader in connected health for sleep and respiratory care Long-term growth opportunities 5,500+ patents and designs - 7% of revenue invested in R&D Financial Results • Historical revenue and • profit growth Recurring revenue Operating excellence program Strong track record of disciplined capital deployment © 2018 ResMed I Q4 2018 Investor Presentation | 5 ResMed#6Number of Patient Lives Impacted > Growth Strategy & Strategic Initiatives Changing lives with every breath 20 million lives changed in 2020 Improve patient quality of life Slow chronic disease progression Reduce healthcare system costs • Horizon 3 Invest in Portfolio of New Market Options Sleep & Consumer Wellness - Engagement in Sleep Health Horizon 1 Lead SDB Industry Ground breaking end-to-end connected health solutions . Horizon 2 Scale-Up Respiratory Care and Connected COPD Connected respiratory care solutions for COPD, obesity-hypoventilation syndrome, and neuromuscular disease, including ALS Integrate with connected solutions • - Expansion of ResMed brand Connected Health Expansion - Connected devices, analytics, population health models - Out of hospital SaaS Solutions - Care coordination • Adjacent Market Development - A-Fib, HFPEF, Asthma Expansion in High Growth Markets - China, E. Europe, India, Brazil, S.E. Asia Time to Material Growth Impact PEOPLE, LEADERSHIP AND CULTURE GLOBAL LEADERSHIP IN DIGITAL AND CONNECTED HEALTH OPERATING EXCELLENCE - LEVERAGE MARKET-LEADING SCALE © 2018 ResMed I Q4 2018 Investor Presentation | 6 ResMed#7Our Business - Sleep © 2018 ResMed I Q4 2018 Investor Presentation | 7 ResMed#8What is Sleep-Disordered Breathing? • • Abnormal respiration during sleep - the cessation of breathing or "sleep suffocation" Most prevalent is obstructive sleep apnea - collapse of the upper airway despite ongoing effort Other types include central sleep apnea -- lack of breathing and lack of effort -- and mixed apnea Normal airway Partially obstructed airway Obstructed airway Arousal © 2018 ResMed I Q4 2018 Investor Presentation | 8 ResMed#9Transforming Treatment & Management of Sleep Apnea Quiet Compact 5 ResMed 日 AirMini™ 90 RosMed AirSense TM 10 AirSense TM 10 AutoSet for Her AirCurve™ 10 Comfortable AirFit™ N20 AirFit™ F20 Full face mask AirFit P10 Nasal Pillows System Nasal mask Connected brightreeⓇ AirView™ © 2018 ResMed | Q4 2018 Investor Presentation | 9 85 85 TM myAir T AirTouch F20 Full face mask ResMed#10Global Prevalence of Obstructive Sleep Apnea (OSA) Presents Opportunity to Drive Increased Awareness United States AHI≥5 = 54 M AHI≥15 = 24 M France AHI≥5 = 24 M AHI≥15 = 12 M Germany AHI≥5 = 26 M AHI≥15=14 M China Brazil AHI≥5 = 49 M AHI≥15 = 25 M Nigeria AHI≥5 31 M AHI≥15 12 M Benjafield, et al. AJRCCM 2018 (abstract) © 2018 ResMed I Q4 2018 Investor Presentation | 10 Pakistan AHI≥542 M AHI≥15 17 M AHI≥5 = 176 M AHI≥15 = 66 M India AHI≥5 = 52 M AHI≥15 29 M AHI ≥ 5 936,360,689 AHI ≥ 15 424,630,028 Russian Federation AHI≥5 = 40 M AHI≥15 = 20 M Japan AHI≥5 = 22 M AHI≥15 9 M ResMed#11> Sleep Apnea is More Than 80% Undiagnosed For every 100 U.S. adults... 4 KNOW THEY HAVE SLEEP APNEA12 ti 1 Peppard PE et al. Am J Epidemiol 2013 2 Young T et al. Sleep 1997 © 2018 ResMed | Q4 2018 Investor Presentation | 11 22 DON'T KNOW THEY HAVE IT1.2 ResMed#12MICRO MACRO Key Demographic, Political, and Healthcare Trends Present Multiple Opportunities for ResMed Healthcare continues to rise in importance as a major topic on social and political agendas around the world. Increasing Chronic Disease Burden Aging Population Healthcare Costs Growing Physician Shortages The shift to value-based healthcare and consumerization-of-care is here to stay. Healthcare System Pain Points Delivering the correct care when needed Delivering care in lower cost settings Patient Engagement Documentation Data Availability Communication Analytics © 2018 ResMed | Q4 2018 Investor Presentation | 12 Integration of Data & Technology is KEY to driving increased awareness & treatment ResMed#13Working with Others to Raise Sleep as a Public Priority sleepscore verily labs... Consumer tech joint venture with Dr. Oz and Pegasus Capital World's first non- contact sleep tracking mobile app Shows people how they sleep, and how they can improve their sleep Sleep research joint venture with Verily¹ To study the health and financial impacts of untreated sleep apnea Based on research: Develop software solutions to help identify, diagnose, treat and manage those with OSA © 2018 ResMed | Q4 2018 Investor Presentation | 13. 1. Proposed sleep research JV, closing subject to regulatory review ResMed#14Healthcare Informatics © 2018 ResMed | Q4 2018 Investor Presentation | 14. ResMed#15Leading the Industry with over 2.5 Billion Nights of Medical Sleep and Respiratory Care Data in the Cloud Global Leader in Cloud-Connected Medical Devices ApneaLink Air Type Ill home sleep testing device Test ResMed 3rd Party Diagnostics ApneaLink Air DIAGNOSIS AirView™ DIAGNOSTICS Air10™ series AirView™ THERAPY Astral with RCM AirMini™ © 2018 ResMed | Q4 2018 Investor Presentation | 15 ResMed 90 AirView™ ActionGroups MyAir 12 34 01011 85 10 78 11 brightree. MONITORING & MGMT. > PATIENT ENGAGEMENT > BILLING & INTEGRATIONS Go Scripts ReSupply Compal and Dan ResMed Data Exchange 3rd Party Integrations ResMed#16> Global Leadership in Connected Health AirView™ has over 8 million+ patients 200,000+ diagnostic tests processed in the cloud 76 API calls per second from integrators 5 million+ patients. monitored at home with connected care Brightree has 64 million+ patient accounts as part of its post-acute care network 1 million+ patients have signed up for myAir TM © 2018 ResMed | Q4 2018 Investor Presentation | 16 ResMed#17> Market-Leading Connected Health Solutions Pioneering innovations and providing clinical evidence that support better patient outcomes and improved business efficiencies for customers AirView™ TM 85 85 85 myAir 121% patient adherence with automated compliance coaching1 1. Hwang, et al., AJRCCM 2017 2. 3. 4. Labor Costs² 59% New Patient 155% Setups³ Munafo, et al. Sleep Breath 2016 Data based on monthly patient setups and compliance rates of DME customers from February 2014 March 2015. Historical results for this provider over the stated time Crocker, et al., Abstract CHEST 2016 World's largest study for adherence > 128,000 patients 124% patient adherence with patient engagement4 © 2018 ResMed | Q4 2018 Investor Presentation | 17 ResMed#18Improving Adherence to Therapy ResAdhere: remote monitoring + mask resupply drive improved adherence In a study of ~100k patients with AirView cloud-connected devices... Probability on Therapy (%) 100 100% 0 Resupply group (AirView + Brightree) Control group (non-resupply) 90 Time to Drop out (days) + brightree. AirView™ 84% 66% 360 ...the likelihood of therapy termination decreased by >50% after one-year and there was a significant increase in daily PAP usage Benjafield, et al. AJRCCM 2018 (abstract) Note: De-identified data from Brightree and AirView were sent to a third-party independent statistician who provided the anonymized analyses and findings. ©2018 ResMed | Q4 2018 Investor Presentation | 18 ResMed#19Big Data Analysis Drives Insights for Treatment of Central Sleep Apnea Patients with treatment-emergent central sleep apnea (CSA) are two times more likely to terminate therapy • Opportunity to rethink conventional therapeutic options • Minimize risk of therapy termination through early diagnosis • Regularly monitor patients to support adherence to treatment HAH CHEST Journal 100 50 Analysis of ~200k CSA patients 22% increase in adherence CMS adherence on CPAP prior to switching 62.7% CMS adherence after switching to ASV 76.6% • Switching from therapy CPAP to ASV improved relative adherence by 22% ⚫ Patients who switched from CPAP to ASV had fewer apneas and hyponeas during sleep © 2018 ResMed | Q4 2018 Investor Presentation | 19 ResMed#20Our Business - Respiratory Care © 2018 ResMed | Q4 2018 Investor Presentation | 20 ResMed#21> What is Chronic Obstructive Pulmonary Disease (COPD)? COPD is a serious lung disease that over time, makes it hard to breathe The leading cause of COPD is smoking Other causes include: second hand smoke • pollution • occupational exposure to noxious gases • a history of childhood infections (could be a catalyst) genetic inheritance, leading to its onset © 2018 ResMed | Q4 2018 Investor Presentation | 21 ResMed#22COPD is a Large and Growing Market . • COPD is the third leading cause of death worldwide¹ . . More than 380 million people worldwide are estimated to have COPD² - Largely undiagnosed COPD sufferers in high-growth markets such as China, India, Brazil and E. Europe may be well over 100 million³ Cost to healthcare systems from COPD is enormous: - Europe: - 48 billion per year4 US: ~$50 billion per year5 • More than 3 million people worldwide die each year due to COPD6 1World Health Organization. The top 10 causes of death: Fact sheet: No310 (2014, May) accessed 20Jul16 2 Ferkol T et al. Annals ATS 2014 3 Company estimates based on World Health Organization estimates and Zhong et al. "Prevalence of Chronic Obstructive Pulmonary Disease in China" Respiratory and Critical Care 4 European Respiratory Society, European Lung White Book http://www.erswhitebook.org/chapters/the-economic-burden-of-lung-disease/accessed 20Jul16 5 Guarascio et al. Dove Med Press, 2013 Jun 17 6 World Health Organization. Chronic obstructive pulmonary disease (COPD): Fact sheet No315. 2015 accessed 20Jul16 © 2018 ResMed | Q4 2018 Investor Presentation | 22 ResMed#23Opportunity to Shift Care from Hospital to Home Healthcare costs are on the rise Combining non-invasive ventilation (NIV) with home oxygen therapy (HOT) Reduces hospitalization and mortality by 51% - - Increases time to hospital readmission or death by ~90 days JAMA® The Journal of the American Medical Association 100 80 60 60 60 Admission-free Survival % 40 40 Admission-free survival by treatment arm over one year Adjusted hazard ratio, 0.49 (0.31-0.77); P=.002 20 20 • Combination of HOT with NIV reduced hospital readmissions by 58.3% Combination of therapies provided improved patient quality of life and saved >$50k per quality of life adjusted year Home Oxygen Plus Home NIV • Home Oxygen Alone 0+ 0 2 4 6 8 10 12 Time (months) 1 P. Murphy et al., Effect of Home Noninvasive Ventilation With Oxygen Therapy vs Oxygen Therapy Alone on Hospital Readmission or Death After an Acute COPD Exacerbation. A Randomized Clinical Trial, JAMA Published online May 21, 2017. doi:10.1001/jama.2017.4451. © 2018 ResMed | Q4 2018 Investor Presentation | 23 ResMed#24> Full Spectrum of Solutions for Respiratory Care High-Flow Therapy AcuCare TM high flow Bilevel Ventilation Portable Oxygen Concentrator Non-invasive Ventilation (NIV) Mobi™ Life Support Ventilation 23 AirCurve 10 TM Lumis Stellar™ Astral TM Astral™ with RCM © 2018 ResMed | Q4 2018 Investor Presentation | 24 Patient Acuity ResMed#25Our Business - Software as a Service (SaaS) © 2018 ResMed | Q4 2018 Investor Presentation | 25 ResMed#26> Global Leader in End-to-End Solutions... ApneaLink Air Type Ill home sleep testing device Test complete ResMed ApneaLink Air DIAGNOSIS ...for Sleep and Respiratory Care 3rd Party Diagnostics Air10™ series AirView™ AirView™ ActionGroups 12 34 Compliance rat Orging 01011 10 THERAPY AirView™ DIAGNOSTICS Astral with RCM AirMini™ © 2018 ResMed | Q4 2018 Investor Presentation | 26 ResMed 90 11 B MyAir 05 78 brightree. MONITORING & MGMT. PATIENT ENGAGEMENT > BILLING & INTEGRATIONS Go Scripts Complain ReSupply ResMed Data Exchange 3rd Party Integrations ResMed#27History of Successful SaaS Acquisitions and Integrations Company UMBAN Location Halifax, NS Canada Key Product Status Date AUG 2012 U-Sleep JAYSEC Knoxville, TN FEB 2015 GoJaysec TECHNOLOGIES CareTouch Denver, CO JUL 2015 CareTouch 360 brightree. Lawrenceville, GA FEB 2016 Brightree Core conduittechnology Girard, PA JUN 2017 MyForms AllCall Connect Joliet, IL JUL 2017 Brightree ConnectPRO HEALTHCARE +first Springfield, MO JUL 2018 Fully integrated as AirView Action Groups. Halifax has become key PD development center and provider of Saas Services Rebranded as GoScripts referral document management service. Now interoperable with Brightree Rebranded as ResMed Resupply, reaching over 100k patients across 80 customers Continues to operate as a wholly owned subsidiary with strong growth across its various modules Integrated into Brightree, enhancing custom forms builder and workflow solutions for HME providers Now part of Brightree Services, providing live call center services to Brightree customers firstHOMECARE Will operate as a wholly owned subsidiary providing software Software (EHR) solutions and services for home health and hospice customers © 2018 ResMed | Q4 2018 Investor Presentation | 27 ResMed#28> Software as a Service (SaaS): Brightree Leading Provider Top 100 Brightree is the leading provider of cloud-based software to improve clinical and business performance in the post-acute care industry 2,500 Serves more than 2,500 organizations in the HME, home health, hospice, orthotic and prosthetic, HME pharmacy, home infusion and rehabilitation home care segments. Orgs Ranked one of the top 100 healthcare IT companies in the U.S. on the prestigious Healthcare Informatics 100 (HCI 100) list AirSolutions AirView™ DIAGNOSTICS TM AirView U-Sleep Go Scripts ReSupply myAir ResMed Data Exchange Core HME Platform • Billing & Inventory Management • Reporting & Analytics Revenue Cycle Mgmt Outsourced Billing & Consulting • Intake Management Brightree Modules for core HME customers as well as new Home Health and Hospice channels © 2018 ResMed | Q4 2018 Investor Presentation | 28 Home Health & Hospice • Native iPad® point-of-care app ⚫ Cloud-based back-office EMR Inventory Management • Purchasing & Intake Delivery & Fulfillment Physicians Referrals Document Management • Referral Processing & Documentation Eligibility Verification • Capture, manage, share & secure • Automated rules & workflows Patient Resupply • Multichannel Patient Contact Campaigns • Automated Patient Interaction Patient Collections Automated Patient Pay Technology • • Best Practices Consulting ResMed#29Expanding ResMed's SaaS Offerings HEALTHCARE +First o patients before paperwork Acquired: July 9, 2018 EHR software, billing and coding services, analytics for home health and hospice agencies Segments are large and growing, along with the prevalence of chronic disease and seniors shifting to homecare and other lower-cost care settings Customer network and SaaS offerings complement existing offerings from Brightree © 2018 ResMed | Q4 2018 Investor Presentation | 29 ResMed#30Financial Results © 2018 ResMed | Q4 2018 Investor Presentation | 30 ResMed#31Key Financial Results * Revenue Gross margin Non-GAAP operating profit* Non-GAAP net income* Non-GAAP EPS* Cash flow from operations Free cash flow Q4 2018 FY 2018 $623.6M $2,340.2M +12% (+10% CC) +13% (+10% CC) 58.1% 58.2% $166.0M $606.6M +19% $136.3M +24% +19% $507.8M +27% $0.95 $3.53 +23% +25% $129.4M $505.0M $111.8M $442.4M ResMed adjusts for the impact of the amortization of acquired intangibles, impact of U.S. tax reform, and restructuring expenses, from their evaluation of ongoing operations and believes investors benefit from adjusting these items to facilitate a more meaningful evaluation of current operating performance. © 2018 ResMed | Q4 2018 Investor Presentation | 31 ResMed#32Diversified Revenue - by Geography & by Business Europe, Asia and Other 38% Note: Represents Q4 2018 revenue breakdown © 2018 ResMed | Q4 2018 Investor Presentation | 32 US, Canada and Latin America 62% Masks and Accessories 37% OOH SaaS 6% Devices 56% ResMed#33> Track Record of Disciplined Financial Growth Revenue ($B) Adjusted EPS $1.5 2013 9% CAGR $2.3 Fiscal Years ended June 30 © 2018 ResMed | Q4 2018 Investor Presentation | 33 $2.27 Quarterly dividend 9% CAGR $3.53 16% CAGR $0.35 $0.17 2018 2013 2018 2013 2018 ResMed#34Focus on Operating Excellence is Driving Improved Operating Leverage Operating 24.6% Profit $2,500 25.9% $2,340 13% $2,067 $2,000 $1,500 $1,000 19% $500 $508 © 2018 ResMed | Q4 2018 Investor Presentation | 34 FY2017 ■Non-GAAP Operating Income ■Revenue $607 FY2018 ResMed#35> Proven Capital Management Capital Deployment Investment for Growth New Products Geographic expansion Acquisitions Free Cash Flow returned to Shareholders Last twelve months combined dividend and stock repurchase = 57% of free cash flow Increasing Dividend FY 2018 dividend payout ratio of 39% of Adj. net income Dividend per share increased by 6% over prior year Combined dividend and buy-back over rolling 5 years = 71% of free cash flow © 2018 ResMed | Q4 2018 Investor Presentation | 35 ResMed#36Changing Lives with Every Breath In the last 12 months, we changed more than 14 million lives. Our aspiration is to change 20 million lives by 2020 ResMed#37Why Invest? - Driving Long-Term Shareholder Value لحا Market Dynamics Underpenetrated markets in sleep & COPD • Healthcare costs continue to increase • Focus on improving patient outcomes • Value-based . technology solutions Growth & Innovation Global leader in connected health for sleep and respiratory care • Long-term growth opportunities 5,500 + patents and designs - 7% of revenue invested in R&D Financial Results • Historical revenue and • profit growth Recurring revenue Operating excellence program Strong track record of capital deployment © 2018 ResMed | Q4 2018 Investor Presentation | 37 ResMed#38Contact Investor Relations Phone: (858) 836-5971 Email: [email protected] Website: www.investors.resmed.com © 2018 ResMed | Q4 2018 Investor Presentation | 38 ResMed