Demant A/s · OMXCOP:DEMANT

Demant A/s — William Demant Holding — FY2001 Earnings Presentation

19 slides from Demant A/s's earnings presentation, March 2002

  1. Slide 1: Presentation of Full Year 2001

    Presentation of Full Year 2001 March 2002

  2. Slide 2: Group Structure

    B a ~ 's re e eo me William Demant // Holding Group Structure a WILLIAM DEMANT HotpiNnG A/S % HEARING AIDS HEARING AIDS DIAGNOSTIC INSTRUMENTS PERSONAL COMMUNICATION Oticon Bernafon Maico Audiometer Phonic Ear Interacoustics DanaCom RhinoMetrics SHARED FUNCTIONS a Operational activities Distribution

  3. Slide 3: Key figures, DKK million

    2000 2001 Growth CAGR (5yrs) 2001(EUR) Keyfigures, DKK million Revenue 2,960 3,506 18% 26% 471.5 EBIT 585 683 17% 38% 91.9 Net Profit 426 481 13% 32% 64.7 Cash Flow 451 536 19% 49% 72.1 Ratios & Per Share Profit margin 19.8% 19.5% n.a. n.a. 19.5% EPS, DKK 5.8 6.5 12% 33% 0.87 CEPS, DKK 7.0 8.1 16% 2

  4. Slide 4: Revenue growth and organic growth

    Revenue growth Organic growth 4.200 DKK million 21% 3.506 15-18% 2.960 16% 14% 1.884 11% 11% 1.613 1.413 30% 14% 17% 57% 18% 20% 1997 1998 1999 2000 2001 F2002 1997 1998 1999 2000 2001 F2002

  5. Slide 5: Revenue by business area

    Revenue by business area DKK Million 2000* 2000 2001 Growth Hearing Aids 2,483 2,518 3,017 (86%) 20% Diagnostic Instruments 177 177 199 (6%) 12% Personal Communications 271 265 290 (8%) 9% Total 2,931 2,960 3,506 18% *Translated at 2001 exchange rates

  6. Slide 6: Revenue by region

    Revenue by region 1998 2001 7% 5% 8% 12% 5% Europe 43% 45% North America 8% Asia Pacific Rim 37% 30% Others

  7. Slide 7: Gross profit/GP ratio and EBIT/EBIT margin

    Gross profit/GP ratio EBIT/EBIT margin DKK million 2.230 DKK million 800+ 1.840 683 585 1.046 893 337 765 248 196 19 - 20% 54.1% 55.5% 62.2% 55.4% 63.6% 15.4% 17.9% 13.8% 19.8% 19.5% 1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 F2002

  8. Slide 8: Cash flow from operating activities

    Cash flow from operating activities 2001 537 2000 451 1999 312 1998 223 1997 205 DKK million

  9. Slide 9: Earnings Per Share

    Earnings Per Share F2002 7,5 - 7,8 2001 6,5 2000 5,8 1999 3,5 1998 2,6 1997 2,1 DKK

  10. Slide 10: Employees (average)

    Employees (average) 2001 3.997 2000 3.323 1999 2.132 1998 1.925 1997 1.760

  11. Slide 11: The hearing aid market

    The hearing aid market Growth rates Unit-growth: 2-3% (WDH: 15%) Value-growth: >3% Market variations Unit-growth in Europe: 4-7% North America: No unit-growth All major markets: Positive value-growth

  12. Slide 12: The industry

    The industry 1994 Today Siem ens -R exton -A & M Siemens A udioservice O ticon -Phonic Ear -B ernafon M aico -B osch -G feller/A scom William Demant Starkey -M icrotechnic -Q ualitone Starkey D anavox -R esound -3M -Sonar B eltone -Viennatone -Philips GNResound A udiologic Phonak -U nitron -D SP Fac

  13. Slide 13: Segments and Competitive advantages

    Segments Premium User benefits Knowledge Audiology Differentiation Reference Standard Price Reliability Basic Easy to fit Competitive advantages

  14. Slide 14: Development

    Development Technological possibilities Audiological knowledge Time Mid 1990s

  15. Slide 15: Research and Development

    Research and Development 2001 253 2000 198 1999 159 1998 146 1997 118 DKK million

  16. Slide 16: Important events 2001

    Important events 2001 Acquisitions AHAA (USA) 2D VOG System (Germany) Tremetrics (USA) Product launches Adapto (October) Power and superpower line extensions Ownership-structure Oticon foundation changed its charter - now possible to accept dilution to ensure William Demant Holdings participation in

  17. Slide 17: Adapto

    Adapto VoiceFinder Speech understanding and maximum comfort - without compromise OpenEar Acoustics No occlusion and feedback Client-Focused Fitting Individualized hearing solution

  18. Slide 18: New Danish Company Accounts Act

    New Danish Company Accounts Act (Effective for financial years beginning on 1 Jan. 2002) Goodwill • New rule: To be capitalized and depreciated over expected life time • Change only affects acquisitions made after 1/1/2002 R&D costs • New rule: To be capitalized under certain circumstances • WDH wil

  19. Slide 19: Expectations for 2002

    Expectations for 2002 Organic growth: +15-18% Revenue: DKK 4.2bn (~+20%) Profit margin: 19-20% EBIT: >DKK 800m (+17-20%) EPS: +15-20%

William Demant Holding — FY2001 Earnings Presentation on 6ix