Demant A/s · OMXCOP:DEMANT
Demant A/s — William Demant Holding — H1 2006 Earnings Presentation
17 slides from Demant A/s's earnings presentation, August 2006
Slide 1: Interim Report 2006 – William Demant Holding A/S Investor Presentation
Interim Report 2006 William Demant Holding A/S Investor Presentation August 2006
Slide 2: Highlights first half 2006
Interim Report 2006 Highlights first half 2006 • Revenues of DKK 2,548 million – up 18% on H1 2005 equivalent to 15% organic growth • 13% unit growth in Group-manufactured hearing aids in a market that continues to grow 2-4% in units and 3-5% in value • Growth primarily driven by Oticon Tego and Oti
Slide 3: Profit and loss account
Interim Report 2006 Profit and loss account % change in Full year DKK million 1st half 2006 1st half 2005 % change loc. cur 2005 Net revenue 2,548 2,164 18% 15% 4,523 Gross profit 1,770 1,497 18% 17% 3,133 Gross profit ratio 69.5% 69.2% 69.3% R&D costs -225 -185 21% 21% -383 Distribution costs -758
Slide 4: Organic growth – WDH Group
Interim Report 2006 Organic growth – WDH Group 14% 15% 13% 8% 8% 2002 2003 2004 2005 H1 2006 4
Slide 5: Net revenue by business area
Interim Report 2006 Net revenue by business area 6% 5% 89% % change in DKK million H1 2006* H1 2005* loc. cur. H1 2005 Hearing Aids 2,274 1,976 15% 1,930 Diagnostic Instruments 149 141 5% 138 Personal Communication 125 99 27% 96 Total 2,548 2,216 15% 2,164 * Computed at H1 2006 exchange rates 5
Slide 6: Net revenue by region
Interim Report 2006 Net revenue by region 7% 3% 7% 50% 33% % change in DKK million H1 2006* H1 2005* loc. Cur. Europe 1,279 1,122 14% North America 852 696 22% Asia 156 146 7% Pacific Rim 165 162 2% Other countries 96 90 7% Total 2,548 2,216 15% * Computed at H1 2006 exchange rates 6
Slide 7: Currency impact
Interim Report 2006 Currency impact • Positive impact on H1 revenues amounts to DKK 51 million or 2% against H1 2005 • In H1 2006, USD was strengthened by 5% against DKK (versus H1 2005) • CAD appreciated 14% over the same period • Positive impact of 1% on revenues expected for the full year based o
Slide 8: Balance sheet
Interim Report 2006 Balance sheet DKK million 30-Jun-06 31-Dec-05 30-Jun-05 Intangible assets 59 64 58 Tangible assets 888 856 657 Other long-term assets 255 252 174 Total long-term assets 1,202 1,172 889 Inventories 668 632 635 Receivables 1,075 954 972 Cash and cash equivalents 151 135 152 Total s
Slide 9: Cash flow
Interim Report 2006 Cash flow • CFFO amounts to DKK 381 million in H1 2006 against DKK 411 million in H1 2005 • Operating cash flow in H1 2006 is affected by an increase in working capital • The increase in working capital is related to the period’s raised activity level due to the introduction of O
Slide 10: Cash flow statement
Interim Report 2006 Cash flow statement 1st half 1st half Full year (DKK million) 2006 2005 2005 Net profit for the period 437 373 791 Cash flow from operating activities (CFFO) 381 411 892 Cash flow from investing activities (CFFI), excl. acquisitions -107 -106 -424 Free cash flow 274 304 468 Acqui
Slide 11: Hearing Aids
Interim Report 2006 Hearing Aids • Business area accounted for 89% of revenues • 15% organic growth in the Hearing Aid Organic growth in HA business business and 13% unit growth (Group- 18% 15% 14% manufactured hearing aids) 9% • The market continues to grow 2-4% in units 7% and 3-5% in value, howev
Slide 12: Update on Oticon Delta
Interim Report 2006 Update on Oticon Delta • Substantial demand already at the time of the launch in March 2006, and sales have continued at a high level • Oticon Delta and its RITE technology (Receiver-In-The-Ear) has gained a strong foothold on the global hearing aid markets • Strong initial uptak
Slide 13: Other business areas
Interim Report 2006 Other business areas Diagnostic Instruments DKK million 138 148 133 125 – Business area accounted for 6% of revenues 117 – Organic growth of 5% with a slightly weaker trend towards the end of the period – Outlook remains favourable with expected positive sales development in H2 –
Slide 14: Shareholder information
Interim Report 2006 Shareholder information • Dividends through share buy-back programmes – shares for an amount of DKK 482 million repurchased during H1 2006 • In total, shares for an amount of up to DKK 1 billion to be repur- chased in 2006 • A total net flow of nearly DKK 3.4 billion to sharehold
Slide 15: Guidance 2006
Interim Report 2006 Guidance 2006 • 2006 expectations upgraded on 26 June 2006 primarily based on continued success with Oticon Delta – this guidance is maintained • Growth in the underlying business of 13-15% Ö revenues of DKK 5,150-5,250 million assuming a 1% positive currency impact • EBIT of DKK
Slide 16: Summary of key points
Interim Report 2006 Summary of key points • WDH continues to gain market shares Ö 13% unit growth in Group-manufactured hearing aids in H1 2006 • Growth driven by Oticon Delta and its RITE technology (Receiver-In-The-Ear), which has gained a strong foothold on the global hearing aid markets • Improv
Slide 17: www.demant.com
Interim Report 2006 www.demant.com 17
William Demant Holding — H1 2006 Earnings Presentation on 6ix