Demant A/S · OMXCOP:DEMANT
Demant A/S — William Demant Holding — FY2006 Earnings Presentation
18 slides from Demant A/S's earnings presentation, March 2007
Slide 1: William Demant Holding A/S Investor Presentation March 2007
Annual Report 2006 William Demant Holding A/S Investor Presentation March 2007 1
Slide 2: 2006 at a glance
Annual Report 2006 2006 at a glance • Revenues and earnings in line with expectations • Very successful product introductions (Delta, ICOS, Safran, Amigo) • Oticon Delta establishes a new category of RITE products • Revenues grew 12.4% reaching DKK 5,085 million • EBIT up by 15% to DKK 1,271 million
Slide 3: Hearing Aids
Annual Report 2006 Hearing Aids Organic growth in HA activities • Accounted for 89% of revenues 18% • 13% growth in local currencies 14% 13% • 9% unit growth in sales of Group- 9% 7% manufactured hearing aids • Growth driven by Oticon Delta and other Oticon products such as Safran 2002 2003 2004 200
Slide 4: Hearing aid market status
Annual Report 2006 Hearing aid market status • The global hearing aid market continues to grow 2-4% measured in volume terms and 3-5% in value • Following a rather strong start to the year, market growth in Q2 and Q3 was weak – however solid global growth towards year-end • US market: Strong unit gr
Slide 5: Diagnostic Instruments
Annual Report 2006 Diagnostic Instruments • 10% growth in an audiometric market growing 3-4% • All product lines have contributed to the marketshare gain – especially Equinox, Affinity and MA55 products • Diagnostic Instruments will in 2007 strengthen the sales and marketing activities • Continued p
Slide 6: Personal Communication
Annual Report 2006 Personal Communication • Consists of Phonic Ear and the headset joint venture, Sennheiser Communications • Focused efforts – personal FM (paediatric) products now part of the Oticon Hearing Aids activities • Revenues up by 12% in 2006 • Personal Communication accounts for 5% of re
Slide 7: Net revenue by business area
Annual Report 2006 Net revenue by business area 5% 6% 89% Percentage Percentage change in DKK million 2005* 2005** 2006** change local currency Hearing Aids 4,044 4,040 4,555 12.6% 12.8% Diagnostic Instruments 271 271 298 9.9% 9.9% Personal Communication 208 207 232 11.9% 12.0% Total 4,523 4,518 5,0
Slide 8: Net revenue by region
Annual Report 2006 Net revenue by region 7% 3% 6% 51% 33% Percentage change in local DKK million 2005* 2005** 2006** currency Europe 2,287 2,290 2,571 12% North America 1,396 1,402 1,690 21% Asia 328 317 304 -4% Pacific Rim 336 326 335 3% Other countries 176 184 185 1% Total 4,523 4,518 5,085 13% *
Slide 9: Profit and loss account - full-year
Annual Report 2006 Profit and loss account - full-year Percentage change in DKK million 2005 2006 % change local currency Net revenue 4,523 5,085 12.4% 12.5% Gross profit 3,133 3,575 14% 14% Gross profit ratio 69.3% 70.3% Research and development costs -383 -460 20% 20% Distribution costs -1,354 -1,
Slide 10: Profit and loss account - second half
Annual Report 2006 Profit and loss account - second half Percentage change in DKK million H2 2005 H2 2006 % change local currency Net revenue 2,359 2,537 7.6% 10.2% Gross profit 1,636 1,805 10% 12% Gross profit ratio 69.4% 71.2% Research and development costs -198 -235 19% 20% Distribution costs -70
Slide 11: Earnings per share
Annual Report 2006 Earnings per share R : 17% r CAG ive-yea 14.4 F 12.2 10.7 8.8 7.9 6.5 DKK 2001 2002 2003 2004 2005 2006 11
Slide 12: Research & Development
Annual Report 2006 Research & Development % AG R : 13 y ear C Five- 460 383 324 295 272 253 DKK million 2001 2002 2003 2004 2005 2006 12
Slide 13: Cash flows
Annual Report 2006 Cash flows DKK million 2005 2006 Year's profit 791 901 CFFO 892 964 CFFI, excl. acquisitions and special investments -237 -240 Free cash flows, excl. special investments 655 724 Acquisitions -12 -28 Special investments -185 -63 Buy-back of own shares -695 -993 Other financing acti
Slide 14: Balance sheet
Annual Report 2006 Balance sheet DKK million 2005 2006 2005 2006 Assets Liabilities Intangible 64 96 Equity 756 671 Property, plant and equipment 856 910 Long-term payables 745 679 Other 252 284 Short-term payables 1,392 1,785 Long-term assets 1,172 1,290 Total liabilities 2,893 3,135 Inventories 63
Slide 15: RISE is Oticon's new technological architecture
Annual Report 2006 1987 1996 2007 Pro- Analog Digital Wireless grammable • RISE is Oticon's new technological architecture, which will be the wireless foundation for Oticon's coming generations of hearing aids. • RISE introduces new possibilities in all aspects of hearing aids: – High-speed broadban
Slide 16: Oticon to launch first product based on RISE at AAA
Annual Report 2006 1987 1996 2007 Pro- Analog Digital Wireless grammable • At AAA (mid-Q2), Oticon will launch the first product based on the new wireless RISE architecture • Paired sets of detectors and analysers that coordinate the processing behaviour across the two ears means that important ster
Slide 17: 2007 guidance
Annual Report 2006 2007 guidance • Revenues of DKK 5,450-5,600 million with expected growth of 9-12% and 2% headwind from currencies • Growth driven by new high-end product from Oticon and an intensified product programme launch in the whole Group • Further improvement in gross profit, however dilut
Slide 18: Product introduction meetings
Annual Report 2006 Product introduction meetings 11 April 2007 at 3:00 pm Copenhagen, Denmark 12 April 2007 at 8:30 am London, UK 19 April 2007 at 3:00 pm Denver, Colorado, USA (AAA) Presentations to be conducted in Danish in Copenhagen and in English at the two other events. Starting times are stat
William Demant Holding — FY2006 Earnings Presentation on 6ix