Sonova Holding Ag · SIX:SOON
Sonova — Investor Day (October 2014)
123 slides from Sonova's investor day presentation, Oct 14, 2014
Slide 1: Sonova Investor & Analyst Day 2014
Stäfa, 14 October 2014 Sonova Investor & Analyst Day 2014
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are su
Slide 3: Program
Investor & Analyst Day 2014 Program 08.30 Reception, Coffee and Croissants 09.00 Introduction and market update Lukas Braunschweiler, CEO 09.10 Driving innovation to reach customers Lukas Braunschweiler, CEO 09.30 Driving innovation in marketing Maarten Barmentlo, GVP Marketing 10.00 Coffee break 10
Slide 4: Introduction and market update
Introduction and market update Stäfa, 14 October 2014, Lukas Braunschweiler, CEO
Slide 5: Sonova Management Board (MB)
Investor & Analyst Day 2014 Sonova Management Board (MB) CEO CORP HRM F&A S&T MARKETING COM CFO HI HI HI HI PHONAK UNITRON AB R&D OPS CHG RET WHS NA WHS EU WHS AP 14 October 2014 Page 5
Slide 6: MB team members presenting today
Investor & Analyst Day 2014 Sonova Management Board (MB) HRM S&T COM Maarten Barmentlo Hartw ig Grevener HI CHG RET UNITRON AB OPS WHS AP Paul Thompson Claude Diversi Martin Grieder Andi Vonlanthen MB team members presenting today 14 October 2014 Page 6
Slide 7: Markets: Hearing instruments – Global
Markets Hearing instruments – Global Units Value Recent market factors: Independents Government – Recent market growth somewhat above Government Independents the long-term average – Growth in recent quarters mainly driven by high FTC (free-to-client) growth in Buying Groups Large Retail Europe Large
Slide 8: Markets: Hearing instruments – Europe
Markets Hearing instruments – Europe Units Value Recent market factors: Government Independents Government Independents – DE: Jump in unit sales following higher reimbursement in Nov-13 Buying – UK: solid growth in the private market – Groups NHS facing challenging base effect Buying Groups Large Re
Slide 9: Markets: Hearing instruments – North America
Markets Hearing instruments – North America Units Value Recent market factors: Government – US: growth rebounded in 2Q-14 after Government Indepen- weakness in 1Q-14 – supported by solid Indepen- dents Large dents VA growth Retail – CA: unit growth in line with long-term Large Retail market trend Bu
Slide 10: Markets: Hearing instruments – Asia Pacific
Markets Hearing instruments – Asia Pacific Units Value Recent market factors: Govern- ment Government – AUS: market momentum remaining strong, lifting average market growth in Indepen- dents Large Indepen- the region dents Retail – JP: VAT increase in April weighing on Large Retail already weak deve
Slide 11: Driving innovation to reach customers
Driving innovation to reach customers Stäfa, 14 October 2014, Lukas Braunschweiler, CEO
Slide 12: Strategic choice
Strategic choice Focus on developing and offering hearing care solutions and services Behind-The-Ear hearing instruments (BTE) Wireless systems 2 – LEVERAGE 1 – FOCUS ON Cochlear implants Custom In-The-Ear hearing instruments (ITE) CONNECTIVITY SOLUTIONS HEARING CARE SOLUTIONS CONSUMER
Slide 13: Innovation strategy
Innovation strategy Focus on continuous innovation to grow sales and earnings Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 MARKETING SALES & DISTRIBUTION NEW PRODUCTS OPERATIONS & SUPPLY CHAIN RESOURCES & SUPPORT Core: Drive strong new product pipeline – Gross R&D 7-8% of sales 14 Oct
Slide 14: Market strategy
Market strategy Grow market position along 4 main growth vectors 4 1 Penetrate existing markets – WHS account development – Dual-brand strategy 3 – Continuous product innovation 2 Expand accessible markets – BRIC markets – New product formats 2 3 Integrate service channels – Retail network expansion
Slide 15: Product strategy
Product strategy Provide complete customer solutions: HW, SW and Services Platform concept approach to solution development for HI & CI 14 October 2014 Page 15
Slide 16: Product strategy: product pipelines
Product strategy Product pipelines: Consistently meeting product development targets 14 October 2014 Page 16
Slide 17: Driving innovation in marketing
Driving innovation in marketing Stäfa, 14 October 2014, Maarten Barmentlo, GVP Marketing
Slide 18: Market strategy
Market strategy Grow market position along 4 main growth vectors 4 1 Penetrate existing markets – WHS account development – Dual-brand strategy 3 – Continuous product innovation 2 Expand accessible markets – BRIC markets – New product formats 2 3 Integrate service channels – Retail network expansion
Slide 19: Market strategy: B2B & B2C marketing approach
Market strategy B2B & B2C marketing approach: Understanding our customer needs Retail Market customer Research interaction Web Wholesale based customer customer interaction interaction Sonova business model provides multi-dimensional customer insight 14 October 2014 Page 3
Slide 20: B2C - Understanding the consumer
B2C - Understanding the consumer
Slide 21: Customer insight: consumer study
Customer insight B2C: Consumer needs – Sonova study on hearing impaired in US, DE, FR, CN, JP 1800 consumers in 5 countries Balanced sample per country Sample: all hearing impaired HI owners vs non-owners Age 40+ Female and male © Results not to be reproduced without the permission of Sonova
Slide 22: Customer insight: consumer needs
Customer insight B2C: Consumer needs – Drive Sonova product and services innovation Communication & Intelligibility Nine innovation clusters Source: Sonova study of 1800 hearing impaired end consumers (US/DE/FR/CN/JP) © Results not to be reproduced without the permission of Sonova 14 October 2014 Pa
Slide 23: Customer insight: relative importance of needs
Customer insight B2C: Consumer needs – Quantitative insights into relative importance Communication & Intelligibility Most relevant needs’ clusters Communication & intelligibility (incl. tinnitus) Natural sound experience Wearing comfort & esthetics Less relevant needs’ clusters Purchasing e
Slide 24: Customer insight: crucial consumer questions
Customer insight B2C: Consumer needs – Translate into 4 crucial consumer questions 1 “Does it look good?” 2 “How well do I hear?” 3 “Is it easy to handle?” 4 “Does it provide value for money?” Consumer needs – Drive Sonova product and services innovation 14 October 2014 Page 8
Slide 25: Product design – Phonak
Customer insight B2C: Consumer need – Product design – Phonak Signature elements Audéo V Most relevant needs’ clusters • Communication & intelligibility (incl. tinnitus) • Natural sound experience ‘edgy-ness’ raised plateau • Wearing concave tension comfort & esthetics • End user autonomy cut away l
Slide 26: Product design – Unitron
Customer insight B2C: Consumer need – Product design – Unitron Signature elements Moxi Kiss Most relevant needs’ clusters • Communication & intelligibility integrated (incl. convex tinnitus) softness details • Natural sound experience smoothness • Wearing comfort & esthetics • End user autonomy roun
Slide 27: Connectivity – Compatibility and flexibility
Customer insight B2C: Consumer need – Connectivity – Compatibility and flexibility Consumer preference Close to Highly unacceptable preferred Made for every phone Made for iPhone Owns iPhone n=37 Owns other smartphone or cellphone n=185 Source: Sonova study of 241 hearing aid users (US) © Results no
Slide 28: Connectivity – Wireless accessories
Customer insight B2C: Consumer need – Connectivity – Wireless (WL) accessories 30% % WL attachment rate 25% 20% 15% 10% 5% 0% - WL accessory units Rate of WL accessory sales per HI unit Source: Sonova internal reporting © Results not to be reproduced without the permission of Sonova Connectivity is
Slide 29: Social media
Customer insight B2C: Consumer needs – Sonova approach increasingly extending to social media 110’560 87’618 Verified 2014 60’740 Facebook 51’317 Global Page 2013 4’290 Widex Starkey Oticon ReSound Phonak well ahead of competition in terms of fans on Facebook e.g. 14 October 2014 Page 13
Slide 30: B2B - Understanding the HCP
sonova HEAR THE WORLD B2B - Understanding the HCP
Slide 31: Phonak – Highest brand perception with HCPs
Customer insight B2B: Phonak – Highest brand perception with HCPs Category Products Services Pricing Marketing Brand Identity Question A B C D E F A B C D E A B A B A B C D 1 2 3 4 Ranking 2014 5 6 7 8 9 10 11 12 Phonak Unitron Averages per category Source: Phonak Brand Tracker, June – July 2014
Slide 32: Phonak – No choice by HCPs for personal use
Customer insight B2B: Phonak – No 1 choice by HCPs for their personal use 36% Phonak 23% Competitor core brands 22% 19% Unitron 17% 12% 10% Source: Phonak Brand Tracker, June – July 2014, 12 markets, n=1347 HCPs B2B: Unitron – Following closely behind competitor’s core brands 14 October 2014 Page 16
Slide 33: Dual-brand approach successful in Germany
Customer insight B2B: Dual-brand approach continues to be successful in Germany Loyalty Likelihood Favorite Overall index to recommend partnership satisfaction 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 100 90 80 70 60 Index 50 40 30 20 10 Ran
Slide 34: Phonak Target – The leading fitting software
Customer insight B2B: Phonak Target – The leading fitting software – Example Germany Very Rather Very Completely Dissatisfied Satisfied satisfied satisfied dissatisfied satisfied 1 79 2 76 3 76 4 75 5 75 6 74 7 Market average 71 8 70 9 69 10 67 11 65 12 63 13 53 Source: BVHI Satisfaction Survey 2014
Slide 35: Consistent brand communication
Customer insight B2B & B2C: Driver – Highly differentiated consistent brand communication Quest Sky Q Roger Venture 14 October 2014 Page 19
Slide 36: Understanding our customer needs
Customer insight B2B & B2C: Marketing approach – Understanding our customer needs Retail Market customer Research interaction Web Wholesale based customer customer interaction interaction Sonova business model provides multi-dimensional customer insight 14 October 2014 Page 20
Slide 37: Driving innovation with new products
Driving innovation with new products Stäfa, 14 October 2014, Lukas Braunschweiler, CEO
Slide 38: Product strategy
Product strategy Provide complete customer solutions: HW, SW and Services Platform concept approach to solution development for HI & CI 14 October 2014 Page 2
Slide 39: Product strategy: product pipelines
Product strategy Product pipelines: Consistently meeting product development targets 14 October 2014 Page 3
Slide 40: Technology platforms: Building blocks of our innovation strategy
Technology platforms: Building blocks of our innovation strategy Stäfa, 14 October 2014, Andi Vonlanthen, GVP Research & Development
Slide 41: Platform strategy: a look back at 2005
Platform strategy A look back at 2005 First class Business class Economy class Amio Perseo 4 2 5 mechanical BTE Platforms, numerous ITE Models, 5 DSP Technologies 14 October 2014 Page 5
Slide 42: Palio 3: 3rd generation technology platform
Platform strategy Palio 3: 3rd generation technology platform – Sonova’s next big step • Technology Palio 1 Palio 2 Palio 3 • Products PALIO CORE SPICE QUEST VENTURE QUEST VENTURE • Core Algorithm SW on DSP- Platform CORE SPICE • DSP - Platform 130 nm 65 nm 65 nm • ASP - Platform 250 nm 250 nm 250 n
Slide 43: Platform strategy: consumer needs drive innovation
Platform strategy B2C: Consumer needs – Drive Sonova product and services innovation Communication & New HI architecture Intelligibility Consistent EAM design New DSP feature New accessories Sound quality Lower noise performance Less distortion Better directionality System pe
Slide 44: New HI architecture: Complete new family
New Phonak Venture platform 1 New HI architecture: Complete new family – Based on same EAM* principles * EAM = Electro – Acoustic – Mechanic Enabling simultaneous introduction of 4 new form factors in 4 price segments 14 October 2014 Page 8
Slide 45: New HI architecture: Two new silicon chips
New Phonak Venture platform 1 New HI architecture: Two new silicon chips 1st dual-core digital sound processor (DSP) New high-performance wireless chip (WL) Double digital sound processing power Increased throughput – faster communication Dual-core 65nm processor technology Latest 90nm wirel
Slide 46: DSP chip platform
New Phonak Venture platform 1 New HI architecture: DSP chip platform – At the heart of every digital HI PALIO 1 (2004) PALIO 2 (2010) PALIO 3 (2014) 1st single DSP platform for all DPRO 2 = DPRO 1 + mod. 1st dual-core DSP architecture products migrated to 65nm technology with integrated analog front
Slide 47: Hybrid with same dimensions
New Phonak Venture platform 1 New HI architecture: Hybrid with same dimensions Palio 2 Quest APRO 2 iWiPRO DPRO2 NVM Palio 3 Venture CORTI MARCONI NVM Efficiency: Use of same production tools and processes 14 October 2014 Page 11
Slide 48: Hybrid production volume
New Phonak Venture platform 1 New HI architecture: Hybrid production volume Palio 1 Palio 2 Palio 3 Palio 3 Palio 2 Palio 1 Efficiency: Platform approach as growth engine 14 October 2014 Page 12
Slide 49: Sound quality: Wider dynamic range
New Phonak Venture platform 2 Sound quality: Wider dynamic range boosting jump in sound quality – Amazing Dynamic range 120 dB Palio 2 Palio 3 87 dB 101 dB AM Cassette: CD: Radio: 60-70 dB 92-96 dB 48 dB Noise floor Direct Comparison 0 dB Palio 3: Lower noise floor providing significantly better aud
Slide 50: Sound quality: Wider dynamic range
New Phonak Venture platform 2 Sound quality: Wider dynamic range boosting jump in sound quality – Amazing Dynamic range 120 dB Palio 2 Palio 3 57 dB 71 dB AM Cassette: CD: Radio: 60-70 dB 92-96 dB 30 dB 48 dB HI Gain Noise floor Direct Comparison 0 dB Palio 3: Lower noise floor providing significant
Slide 51: Sound quality: Performance in quiet environments
New Phonak Venture platform 2 Sound quality: Unheard of performance level in quiet environments CI PROFOUND HI MODERATE HI MILD HI With hearing system Without hearing system END-USER MARKET – PENETRATION* - Profound loss 70% - Moderate loss 50% - Mild loss 10% * Source: Several industry stat
Slide 52: System performance: AutoSense OS
New Phonak Venture platform 3 System performance: Highest level of automation potential AutoSense OS Unmatched accuracy, precise performance, for every sound environment. AutoSense OS – Mastering the complexity of everyday sounds… 14 October 2014 Page 16
Slide 53: New wireless chip – Specifications
New Phonak Venture platform 3 System performance: New wireless chip – Unmatched specifications 2008 2014 (Venture) Technology: 180 nm Technology: 90 nm Transistors: > 2‘000'000 Transistors: > 9‘820'000 Audio sample rate: 20.48 kHZ Audio sample rate: 22.05 kHZ Radio channel speed: 298 kbps Radio chan
Slide 54: New wireless chip – Lower power consumption
New Phonak Venture platform 3 System performance: New wireless chip – Significantly lower power consumption 2.64 mA 96 uA 2.17 mA 2.09 mA 60 uA 1.41 mA 1.13 mA 0.90 mA TX audio RX audio TX+RX audio (bidir.) Carrier Detect Palio 2 Palio 3 …. at twice the industry-leading bandwidth of the Palio 3 chip
Slide 55: New wireless chip – Reliable communication
New Phonak Venture platform 3 System performance: New wireless chip – Reliable communication power… COMMUNICATION CONNECTIVITY BLUETOOTH ROGER 2.4 GHz 2.4 GHz 10.5 MHz Binaural WIRELESS FITTING …enabling and powering “MFA”, neckloop-free, etc. connectivity solutions 14 October 2014 Page 19
Slide 56: New Phonak Venture platform – Phonak Audéo V
New Phonak Venture platform – Phonak Audéo V Stäfa, 14 October 2014, Martin Grieder, GVP Phonak
Slide 57: Phonak Audéo V
Phonak Audéo V 2 14 October 2014
Slide 58: The market opportunity
The market opportunity 3 14 October 2014
Slide 59: RIC form factor shows 18% market CAGR
RIC form factor shows 18% market CAGR over the last 4 years RIC CAGR +18% 100% 90% 22% 28% 32% 33% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2011 2012 2013 2014 BTE ITE RIC 4 14 October 2014
Slide 60: US market a key contributor with 23% CAGR
… and US market was a key contributor with 23% CAGR RIC CAGR +23% 100% 90% 35% 80% 45% 54% 57% 70% 60% 50% 40% 30% 20% 10% 0% 2011 2012 2013 2014 BTE ITE RIC 5 14 October 2014
Slide 61: What consumers want and our matching product features
What consumers want and our matching product features 6 14 October 2014
Slide 62: Hearing is more than listening
Hearing is more than listening… Source: Sonova study of 1800 hearing impaired end consumers (US/DE/FR/CN/JP), relevance is indicated by distance from the center © Results not to be reproduced without the permission of Sonova 7 14 October 2014
Slide 63: Crucial questions when selecting a hearing solution
Crucial questions when selecting a hearing solution 1 “Does it look good?” 2 “How well do I hear?” 3 “Is it easy to handle?” 4 “Does it provide value for money?” 8 14 October 2014
Slide 64: Audéo V in a beautiful & contemporary design
Phonak Audéo V comes in a beautiful & contemporary design Venture range Travel cases TV link Programming tool 9 14 October 2014
Slide 65: Major step change in design
Major step change in design compared to previous product ranges 10 312 312T 13 10 312 312T 10 14 October 2014
Slide 66: Provides a large choice of colors
Provides a large choice of colors… 11 14 October 2014
Slide 67: The Virtual Mirror
…and the Virtual Mirror Innovative support tool to satisfy consumer needs 12 14 October 2014
Slide 68: Crucial questions when selecting a hearing solution
Crucial questions when selecting a hearing solution 1 “Does it look good?” 2 “How well do I hear?” 3 “Is it easy to handle?” 4 “Does it provide value for money?” 13 14 October 2014
Slide 69: The power of the new Phonak Venture chip
The power of the new Phonak Venture chip Our response to life’s complexity and need for performance Double the Double the 30% less power processing capability number of transistors consumption Quest VENTURE 500 mops 14 14 October 2014
Slide 70: AutoSense OS – Seamless Life
AutoSense OS – Seamless Life Mastering the complexity of everyday sounds AutoSense OS Unmatched accuracy, precise performance, for every sound environment. 15 14 October 2014
Slide 71: AutoSense OS blends different programs seamlessly
AutoSense OS blends different programs seamlessly Speech Comfort Speech in Car in Noise Music in Noise Comfort Calm ENHANCED in Echo Speech in Loud Noise 16 14 October 2014
Slide 72: Speech in Loud Noise
Speech in Loud Noise Speech in Loud Noise program StereoZoom, now adaptive, zooms in on a single voice in a diffuse noise environment, improving speech intelligibility. 17 14 October 2014 *Source: Latzel, M & Konig, G. (2014) Binaural directional microphone
Slide 73: Static vs Adaptive StereoZoom
Static vs Adaptive StereoZoom – Performance increase of 20% 9 8 7 6 SNR benefit [dB] 5 4 3 2 1 0 static adaptive 18 14 October 2014 Source: Latzel, M & Konig, G. (2014) Binaural directional microphone
Slide 74: Adaptive StereoZoom vs premium competitor product
Adaptive StereoZoom – Vs. premium product from Competitor 4.5 4.0 3.5 3.0 SRT Benefit [dB] 2.5 2.0 1.5 1.0 0.5 0.0 StereoZoom Competitor 19 14 October 2014 Source: Latzel, M & Konig, G. (2014) Binaural directional microphone
Slide 75: Speech in Car
Speech in Car – Increased performance acknowledge by consumers Speech in Car program Reduces broadband noise to create a stable listening environment for easy communication. 22 14 October 2014 *Source: Latzel, M., (2014) Speech in car
Slide 76: Speech in Car – Consumer satisfaction
Speech in Car – Significantly increases consumer satisfaction 100 80 Patients answers in % 60 Audéo Q90 Audéo V90 40 20 0 extreme very much distinct moderate little effort very little no effort effort effort effort effort effort (n=28) 23 14 October 2014 Source: Latzel, M., (2014) Speech in car
Slide 77: Crucial questions when selecting a hearing solution
Crucial questions when selecting a hearing solution 1 “Does it look good?” 2 “How well do I hear?” 3 “Is it easy to handle?” 4 “Does it provide value for money?” 24 14 October 2014
Slide 78: Phonak EasyCall
Phonak EasyCall – Cell phone solution made for EVERY phone Phonak EasyCall • Direct connectivity to all cell phone brands (MFA) • Compatible with all wireless Phonak hearing aids programmed on Phonak Target • One button to operate • Easy to attach and connect • Seamless experience • Combined 2.4GHz
Slide 79: Phonak EasyCall – Compatible with all phones
Phonak EasyCall – Compatible with all phones and brands Mobile phone models Mobile phone brands Phonak: MFA 26 14 October 2014
Slide 80: EasyCall – Compatible with most Phonak models
Phonak EasyCall – Compatible with most Phonak hearing aid models HdO Produktelinie IdO Produktelinie RIC Power Pädiatrie Premium Bolero Q90 Virto Q90 Audéo V90 Naída Q90 Sky Q90 Advanced Bolero Q70 Virto Q70 Audéo V70 Naída Q70 Sky Q70 Standard Bolero Q50 Virto Q50 Audéo V50 Naída Q50 Sky Q50 Essent
Slide 81: Phonak ComPilot Air
Phonak ComPilot Air – Streamer without neckloop Phonak ComPilot Air • Direct connectivity to all cell phone brands • Compatible with all wireless Phonak hearing aids programmed on Phonak Target • Three buttons to operate (remote control incl.) • Interface to RemoteControl App • Primary for phone and
Slide 82: Phonak Remote Control Apps
Phonak Remote Control Apps – Easy to use commands Bluetooth pairing Configuration Individual ZoomControl Direct selection of streamer L/R volume of available control audio source 29 14 October 2014
Slide 83: A full range of wireless solutions for every need
A full range of wireless solutions for every need 30 14 October 2014
Slide 84: Crucial questions when selecting a hearing solution
Crucial questions when selecting a hearing solution 1 “Does it look good?” 2 “How well do I hear?” 3 “Is it easy to handle?” 4 “Does it provide value for money?” 31 14 October 2014
Slide 85: Phonak Audéo V – Wear them – use them – love them!
Phonak Audéo V – Wear them – use them – love them! Aesthetics Performance Ease of use Value AutoSense OS – The operating system New level of 4 new models Phonak EasyCall 4 performance levels automation New features • Speech in Car More features across New housing material Phonak ComPilot Air • Comfo
Slide 86: Phonak Audéo V – 4 performance levels
33 14 October 2014 Premium Standard Essential Advanced 90 30 50 70 Calm situation Speech in Noise Comfort in Noise Music Comfort in Echo AutoSense OS Speech in Loud Noise Speech in Car Programs Speech in Wind Speech in Loud Noise Speech in 360° Phonak Audéo V – 4 performance levels DuoPhone SoundRec
Slide 87: Wear them, love them, forget them!
Phonak Audéo V – Wear them, love them, forget them! "Stylish and discreet." "I can hear well." "Easy to handle." "Provides me with value." 34 14 October 2014
Slide 88: …and one more thing: Phonak Target 4.0
…and one more thing Phonak Target 4.0 35 14 October 2014
Slide 89: Phonak Target 4.0 – Continue with a strong winner
Phonak Target 4.0 – Continue with a strong winner This update features a new appearance and hundreds of improvements including: • AutoSense OS fitting features • AudiogramDirect history • Audibility Fine Tuning • Binaural VoiceStream Technology during fitting • DSL and NAL Junior Mode defaults • Ver
Slide 90: The world's favorite fitting software
Phonak Target 4.0 Quite simply the world’s favorite fitting software 37 14 October 2014
Slide 91: Vision of Sonova
With the launch of Venture, we further pursue the vision of Sonova “We envision a world where everyone enjoys the delight of hearing and therefore lives a life without limitations” 38 14 October 2014
Slide 92: Thank you!
PHONAK life is on
Slide 93: Setting the benchmarks in wireless communication
Setting the benchmarks in wireless communication Stäfa, 14 October 2014, Hartwig Grevener, CFO
Slide 94: Phonak – Leader in wireless communication
Wireless communication Phonak – Leader in wireless communication for decades Transmitter 2.4 GHz Receiver pick-up & receive & transmit hand-over TV Cell Phone Voice Music Hearing Aid CI Roger 2.4 GHz technology – Proven performance in the most challenging situations 14 October 2014 Page 2
Slide 95: Assistive listening devices – Main applications
Wireless communication Assistive listening devices (ALDs) – Main applications School Applications: – School: teacher with microphone and transmitter, student with HI and receiver – Work place / business: communication support of HI customer in meetings and conferences – Home: communication with and
Slide 96: Assistive listening devices – Main benefits
Wireless communication Assistive listening devices (ALDs) – Main benefits Listening comprehension / noise level in % Benefits: listening comprehension in 100 noise 80 – People with hearing loss: reach higher 60 level of listening comprehension than 40 normal hearing 20 – Industry terminology: often
Slide 97: Comfort Audio
Wireless communication Comfort Audio – Originating from Scandinavia – The most advanced ALD market – Founded in 1994, headquartered in Halmstad, Sweden – Significant manufacturer in the ALD market – Strong customer home base in Scandinavia (23% of global market today) – Significant presence in selec
Slide 98: Phonak and Comfort Audio – Comparison of solutions
Wireless communication Phonak and Comfort Audio – Comparison of solutions Phonak Comfort Audio Technology (Roger) optimized for maximum Technology optimized for low latency (3ms) intelligibility, accepting a longer latency (17ms) Maximum intelligibility necessary for Low latency is of interest f
Slide 99: Sonova to expand leadership in global ALD market
Wireless communication Sonova to expand leadership position in global ALD market Further strengthen Sonova’s leading position in the attractive global ALD market Leverage Sonova’s global sales and distribution network to grow sales of Comfort Audio products Broaden combined ALD solution & appl
Slide 100: Comfort Audio added to wireless communication solutions
Wireless communication Comfort Audio added to Sonova’s family of wireless communication solutions COMMUNICATION CONNECTIVITY BLUETOOTH ROGER 2.4 GHz 2.4 GHz 10.5 MHz Binaural WIRELESS FITTING 14 October 2014 Page 8
Slide 101: Driving innovation in sales & distribution
Driving innovation in sales & distribution Stäfa, 14 October 2014, Lukas Braunschweiler, CEO
Slide 102: Innovation strategy
Innovation strategy Focus on continuous innovation to grow sales and earnings Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 MARKETING SALES & DISTRIBUTION NEW PRODUCTS OPERATIONS & SUPPLY CHAIN RESOURCES & SUPPORT Core: Drive strong new product pipeline – Gross R&D 7-8% of sales 14 Oct
Slide 103: Market strategy
Market strategy Grow market position along 4 main growth vectors 4 1 Penetrate existing markets – WHS account development – Dual-brand strategy 3 – Continuous product innovation 2 Expand accessible markets – BRIC markets – New product formats 2 3 Integrate service channels – Retail network expansion
Slide 104: Sales & distribution: access to all channels
Market strategy Sales & distribution: Access to all channels – Drive development of new formats Broad representation in all channels Diverse and stable market presence Government Increased brand awareness and access Higher growth potential Independents Open access to new larger channels SOON S
Slide 105: German market
German market Stäfa, 14 October 2014, Claude Diversi, VP Wholesale Phonak Europe & South America
Slide 106: German market: overall structure and recent development
German market Overall structure and recent development Units Value Key market factors: – Highly fragmented market Indepen- Large Indepen- Large Retail dents Retail dents – Buying Groups important – No Government Channel – Comparative fitting requirement Buying Groups Buying Groups – Strong unit grow
Slide 107: German market: Sonova market share development
German market Sonova market share development – Phonak and Unitron Market share in units – 12 months rolling Market share month-by-month Jan 14 Jun 14 Mai 14 Sep 13 Aug 14 Nov 13 Dez 13 Apr 14 Okt 13 Feb 14 Jul 14 Mrz 14 2010/11 2011/12 2012/13 2013/14 Drivers of Sonova track record – Success of Pho
Slide 108: German market: Private segment – Independents
German market Private segment: Independents Key initiatives Broad portfolio addressing all degrees of hearing loss in all performance categories Lyric – A unique offering to attract customers Continuous investment into audiological support and practice development Differentiated sales covera
Slide 109: German market: Large retail accounts / Buying groups
German market Private segment: Large retail accounts / Buying groups Key initiatives Formed and dedicated key account management Private label offering Unitron Flex technology Product portfolio supporting the channel’s free-to-client strategy Trade marketing support, e.g. co- branded campa
Slide 110: UK market
UK market Stäfa, 14 October 2014, Claude Diversi, VP Wholesale Phonak Europe & South America
Slide 111: UK market: overall structure and recent development
UK market Overall structure and recent development Units Value Independents Key market factors: Large Indepen- – Government/NHS segment: large unit Retail dents volume Large – Private segment: attractive value and Retail growth perspective – Large Retail and Independents Government Government – NHS:
Slide 112: UK market: Sonova market share development
UK market Sonova market share development – Phonak and Unitron Market share in units – 12 month rolling NHS market share Private market share 2010/11 2011/12 2012/13 2013/14 Drivers of Sonova track record – Channel specific product offering for NHS – Double digit growth of Boots Hearingcare since fo
Slide 113: UK market: Government segment – NHS
UK market Government segment: NHS Key initiatives Defend strong position as key provider of high-value severe to profound and pediatric products Offer value added services and special programs to complement product, e.g. Phonak Academy etc. Support on improving efficiency e.g. supply chain opt
Slide 114: UK market: Private segment – Independents
UK market Private segment: Independents Key initiatives Support differentiation (vs. NHS): broad product portfolio and fast innovation Support enhanced reputation through value added services, e.g. Please change picture Consultant Approved Site, Partnership programs Strengthen position of Inde
Slide 115: UK market: Boots hearingcare shop-in-shop
UK market Private segment: Boots hearingcare Shop-in-shop concept Key initiatives Expansion into Boots Pharmacy format – Beyond Boots Optical Developing efficient patient care processes using on-line tools Creating awareness of hearing loss and solutions: The Great Big Hearing Check; Internati
Slide 116: US market
US market Stäfa, 14 October 2014, Paul Thompson, GVP Wholesale Phonak North America
Slide 117: US market: overall structure and recent development
US market Overall structure and recent development Units Value Key market factors: Govern- Indepen- Govern- m ent Indepen- dents – Solid premium government segment (VA) m ent dents – Still high market share of Independents Large Retail segment Large Retail Buying Buying – Growing share of Large Reta
Slide 118: US market: Government segment – Veterans' Affairs
US market Government segment: Veterans’ Affairs (VA) Key initiatives Phonak and Unitron both qualified for new contract term Select range of products; focus on Premium Targeted solutions for VA needs (CROS, tinnitus program) Efficient training through iLearn project Remote-fitting research
Slide 119: US market: Private segment – Independents
US market Private segment: Independents Key initiatives Channel-specific products, including Lyric and Tinnitus solutions Lead generation tools – through digital marketing, HearingPlanet and EPIC Practice management program (including retail best practices from Connect Hearing) – Fragmented, s
Slide 120: US market: Large Retail – Connect Hearing US
US market Private segment: Large Retail – Connect Hearing US (owned-retail) Key initiatives Consistent and recognizable branding – Positive customer experience Focus on lead generation and consumer evaluations Develop leading practices in sales training, business process and information system
Slide 121: US market: Large Retail – Costco
US market Private segment: Large Retail – Costco (shop-in-shop) Key initiatives Global Phonak contract as of April 2014 – maturing supplier relationship Channel-specific products Phonak Brio – Focus on premium and RIC products Transaction efficiency through EDI Streamlined and efficient trai
Slide 122: US market: Large Retail – HearingPlanet
US market Private segment: Large Retail – HearingPlanet (www.hearingplanet.com) Key initiatives Lead generation On-line organic and paid search Lead nurturing Lead allocation Lead management Call center Handover to specialty clinics Scheduling; follow up – Web site and call center ba
Slide 123: Thank you very much
Thank you very much Save-the-date – 4th Sonova Investor & Analyst Day on 13 October 2015