Foreign Currency Market Risk Our reporting currency is the U.S. dollar, although the financial statements of our non-U.S. subsidiaries are maintained in their respective local currencies. We transact business in various foreign currencies, including a number of major European currencies as well as the Australian and Singapore dollars. We have significant foreign currency exposure through our Australian and Singapore manufacturing activities and our international sales operations. Net Investment and Fair Value Hedging We enter into foreign cross-currency swaps as net investment hedges and fair value hedges in designated hedging relationships with either the foreign denominated net asset balances or the foreign denominated intercompany loan as the hedged items. All derivatives are recorded at fair value as either an asset or liability. Cash flows associated with derivative instruments are presented in the same category on the consolidated statements of cash flows as the hedged item. The purpose of the cross-currency swaps for the fair value hedge is to mitigate foreign currency risk associated with changes in spot rates on foreign denominated intercompany debt between USD and EUR. For these hedges, we excluded certain components from the assessment of hedge effectiveness that are not related to spot rates. For fair value hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in the same line item as the hedged item, Other, net, in the condensed consolidated statement of income. The initial fair value of hedge components excluded from the assessment of effectiveness is recognized in the statement of income under a systematic and rational method over the life of the hedging instrument and is presented in interest (expense) income, net. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings is recorded as a component of other comprehensive income. The purpose of the cross-currency swaps for net investment hedges is to mitigate foreign currency risk associated with changes in spot rates on the net asset balances of our foreign functional subsidiaries. For net investment hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in cumulative translation adjustment within other comprehensive loss and reclassified into earnings when the hedged net investment is either sold or substantially liquidated. The initial fair value of components excluded from the assessment of hedge effectiveness will be recognized in interest (expense) income, net. The notional value of outstanding foreign cross-currency swaps was $3,412 million and $1,128 million at June 30, 2026 and June 30, 2025, respectively. These contracts mature at various dates prior to January 31, 2036. Non-Designated Hedges We transact business in various foreign currencies, including a number of major European currencies as well as the Australian and Singapore dollars. We have foreign currency exposure through both our Australian and Singapore manufacturing activities, and international sales operations. We have established a foreign currency hedging program using purchased foreign currency call options, collars and forward contracts to hedge foreign-currency-denominated financial assets, liabilities and manufacturing cash flows. The terms of such foreign currency hedging contracts generally do not exceed three years. The purpose of this hedging program is to economically manage the financial impact of foreign currency exposures denominated mainly in Euros, and Australian and Singapore dollars. Under this program, increases or decreases in our foreign currency denominated financial assets, liabilities, and firm commitments are partially offset by gains and losses on the hedging instruments. We do not designate these foreign currency contracts as hedges. All movements in the fair value of the foreign currency instruments are recorded within other, net in our condensed consolidated statements of income. The notional value of the outstanding non-designated hedges was $1,285 million and $1,410 million at June 30, 2026 and June 30, 2025, respectively. These contracts mature at various dates prior to June 17, 2027. -69- Table of Contents PART II Item 7A RESMED INC. AND SUBSIDIARIES Quantitative and Qualitative Disclosures About Market and Business Risks Fair Values of Derivative Instruments The table below provides information (in U.S. dollars) on our significant foreign-currency-denominated financial assets by legal entity functional currency as of June 30, 2026 (in thousands): U.S. Dollar (USD) Euro (EUR) Canadian Dollar (CAD) Chinese Yuan (CNY) Korean Won (KRW) AUD Functional: Net Assets/(Liabilities) 389,425 (148,456) (74) 38,789 19,413 Foreign Currency Hedges (355,000) 131,289 — (44,182) (25,819) Net Total 34,425 (17,167) (74) (5,393) (6,406) USD Functional: Net Assets/(Liabilities) — 322,372 38,076 — — Foreign Currency Hedges — (319,661) (35,196) — — Net Total — 2,711 2,880 — — EUR Functional: Net Assets/(Liabilities) — 2,710 2,880 — — Foreign Currency Hedges 6,651 — — — — Net Total 6,651 2,710 2,880 — — SGD Functional: Net Assets/(Liabilities) 401,156 240,228 — 5,581 — Foreign Currency Hedges (425,000) (251,162) — — — Net Total (23,844) (10,934) — 5,581 — -70- Table of Contents PART II Item 7A RESMED INC. AND SUBSIDIARIES Quantitative and Qualitative Disclosures About Market and Business Risks The table below provides information about our material foreign currency derivative financial instruments and presents the information in U.S. dollar equivalents. The table summarizes information on instruments and transactions that are sensitive to foreign currency exchange rates, including foreign currency call options, collars, forward contracts and cross-currency swaps held at June 30, 2026. The table presents the notional amounts and weighted average exchange rates by contractual maturity dates for our foreign currency derivative financial instruments, including the forward contracts used to hedge our foreign currency denominated assets and liabilities. These notional amounts generally are used to calculate payments to be exchanged under the contracts (in thousands, except exchange rates). Fair Value Assets / (Liabilities) Total June 30, 2026 June 30, 2025 AUD/USD Contract amount 355,000 (10,551) 2,969 Ave. contractual exchange rate AUD 1 = USD 0.7123 AUD/EUR Contract amount 131,289 2,177 (1,203) Ave. contractual exchange rate AUD 1 = EUR 0.6130 SGD/EUR Contract amount 268,287 1,701 (1,426) Ave. contractual exchange rate SGD 1 = EUR 0.6717 SGD/USD Contract amount 425,000 (4,856) 3,031 Ave. contractual exchange rate SGD 1 = USD 0.7831 AUD/CNY Contract amount 44,182 (1,099) 374 Ave. contractual exchange rate AUD 1 = CNY 4.7882 AUD/KRW Contract amount 25,819 313 — Ave. contractual exchange rate AUD 1 = KRW 1,057.5981 USD/EUR Contract amount 1,094,379 (96,601) (128,631) Ave. contractual exchange rate USD 1 = EUR 0.9610 USD/SGD Contract amount 2,317,584 (104,564) — Ave. contractual exchange rate USD 1 = SGD 1.2744 USD/CAD Contract amount 35,196 889 370 Ave. contractual exchange rate CAD 1 = USD 0.7217 Interest Rate Risk We are exposed to risk associated with changes in interest rates affecting the return on our cash and cash equivalents and debt. At June 30, 2026, we held cash and cash equivalents of $1,469 million principally comprising of bank term deposits, at-call accounts and money market accounts, which are invested at both short-term fixed interest rates and variable interest rates. At June 30, 2026, there was $160 million outstanding under the term loan facilities, which were subject to variable interest rates. A hypothetical 10% change in interest rates during the year ended June 30, 2026, would not have had a material impact on pretax income. We have no interest rate hedging agreements. On July 10, 2019, we entered into the Note Purchase Agreement with the purchasers to that agreement, in connection with the issuance and sale of $250 million principal amount of our 3.24% senior notes due July 10, 2026, and $250 million principal amount of our 3.45% senior notes due July 10, 2029. The interest rate on these notes is fixed and not subject to fluctuation. -71- Table of Contents PART II Item 7A RESMED INC. AND SUBSIDIARIES Quantitative and Qualitative Disclosures About Market and Business Risks Inflation Inflationary factors such as increases in the cost of our products, freight, overhead costs or wage rates may adversely affect our operating results. Sustained inflationary pressures in the future may have an adverse effect on our ability to maintain current levels of gross margin and operating margin if we are unable to offset such higher costs through price increases. -72- Table of Contents PART II Item 8 RESMED INC. AND SUBSIDIARIES