Sonova Holding Ag · SIX:SOON
Sonova — H1 2012/13 Earnings Presentation
33 slides from Sonova's earnings presentation, Nov 13, 2012
Slide 1: Half-Year 2012/13 Results
HALF-YEAR 2012/13 RESULTS Staefa | 13 November 2012 | Lukas Braunschweiler, CEO & Hartwig Grevener CFO
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements including, but not limited to, projections of future performance of products, financial conditions, results of operations and cash flows. The statements are made on the basis of management’s views and assumptions regarding future ev
Slide 3: Agenda
Agenda 01. BUSINESS REVIEW 1H 2012/13 Lukas Braunschweiler 02. FINANCIAL REVIEW 1H 2012/13 Hartwig Grevener 03. OUTLOOK FY 2012/13 Hartwig Grevener 04. Q&A 13 November 2012 Page 3
Slide 4: Business Review 1H 2012/13
01. BUSINESS REVIEW 1H 2012/13
Slide 5: Sonova Group: Strong Financial Track Record
Sonova Group STRONG FINANCIAL TRACK RECORD SALES EBITA EBITA in CHF million in CHF million margin in % 2,000 450 45% 1,800 400 40% 1,600 350 35% 1,400 300 30% 1,200 250 25% 1,000 200 20% 800 600 150 15% 400 100 10% 200 50 5% 0 0 0% 06/07 07/08 08/09 09/10 10/11 11/12 12/13 06/07 07/08 08/09 09/10 10
Slide 6: Highlights Half-Year 2012/13
Highlights Half-Year 2012/13 Sales of CHF 872.4 million Strong sales growth of 14.3% in Swiss francs or 7.9% in lc Organic growth of 5.9% in lc Positive currency effect of 6.4% Group EBITA of CHF 187.0 million EBITA margin of 21.4% Positive currency effect of CHF 21.9 million on EBITA-
Slide 7: Phonak Product Pipeline
Phonak PRODUCT PIPELINE: DRIVE HIGH INNOVATION & PRODUCT LAUNCH RATE TIMELINE / CY 1H 11 2H 11 1H 12 2H 12 1H 13 2H 13 1H 14 2H 14 1H 15 2H 15 F1 F3 F4 F2 HI - Premium BTE – Bolero ITE – Virto F 3 F 4 F 5 F 1 F 2 F 3 F 4 F 5 F1 F2 F5 HI - Advanced F1 F5 HI - Standard F1 / 4 HI - Essential/Basic HI -
Slide 8: Phonak product portfolio
Phonak product portfolio BTE product line Custom product line RIC Power Pediatric Premium Phonak Bolero Q90 Phonak Virto Q90 Audéo S IX* Naída S IX* Advanced Phonak Bolero Q70 Phonak Virto Q70 Audéo S V* Naída S V* Nios S V* / Naída S VII* Standard Phonak Bolero Q50 Phonak Virto Q50 Audéo S III* Naí
Slide 9: Unitron Product Pipeline
Unitron PRODUCT PIPELINE: DRIVE FOCUSED PRODUCT INNOVATION TIMELINE / CY 1H 11 2H 11 1H 12 2H 12 1H 13 2H 13 1H 14 2H 14 1H 15 2H 15 M PRO Q PRO M PRO Q PRO HI - Premium M – FLEX 1 M – FLEX 2 Q – FLEX 1 Q – FLEX 2 F 1 F 2 F 3 HI - Advanced M1 M2 Q1 Q2 HI - Standard HI - Essential/Basic HI - Platform
Slide 10: Unitron product portfolio
Unitron product portfolio HdO Produktelinie IdO Produktelinie RIC Power Flex Trial Premium Quantum Pro Quantum Pro Moxi Pro Any Performance Quantum 20 Quantum 20 Moxi 20 Max 20 Advanced Level Quantum 12 Quantum 12 Moxi 12 Standard Quantum 6 Quantum 6 Moxi 6 Max 6 Essential Quantum E Quantum E Moxi E
Slide 11: Advanced Bionics Product Pipeline
Advanced Bionics PRODUCT PIPELINE: ACCELERATE INNOVATION RATE – LEVERAGE PH TIMELINE / CY 1H 11 2H 11 1H 12 2H 12 1H 13 2H 13 1H 14 2H 14 1H 15 2H 15 FDA N El 1 N El 2 N El 3 CI - Electrodes CE N El 1 N El 2 N El 3 FDA N Imp 2 N Imp 2 N Imp 3 CI - Implants CE N Imp2 N Imp 2 N Imp 3 FDA Neptune N Pro
Slide 12: Advanced Bionics product portfolio
Advanced Bionics product portfolio Implant HiRes 90K Electrodes HiFocus 1j, HiFocus Helix Sound Processors Harmony BTE, Neptune Sound Processor Software SoundWave 2.1 13 November 2012 Page 12
Slide 13: Business Case
Business Case CLEAR AND FOCUSED STRATEGY – CUSTOMER DRIVEN INNOVATION SONOVA: «HEAR THE WORLD» Key to our success - Our customers and our employees Broadest product and service offering / portfolio - Hearing instruments (Phonak, Unitron) - Cochlear implants (Advanced Bionics) - Professional services
Slide 14: Financial Review
sonova 02. FINANCIAL REVIEW
Slide 15: Financial Highlights Half-Year 2012/13
Half-Year 2012/13 FINANCIAL HIGHLIGHTS Solid growth in both sales and earnings – both segments meeting expectations Gross profit margin of 68.9% up 0.5%pts., driven by positive currency effects OPEX growth of 3.4% in lc compared to 7.9% sales growth in lc EBITA margin increased to 21.4%; exc
Slide 16: Solid Financial Performance
Half-Year 2012/13 SOLID FINANCIAL PERFORMANCE In CHF million 1H 2011/12 1H 2012/13 Change Change in lc Sales 763.0 872.4 14.3% 7.9% Gross profit 522.1 600.7 15.1% 7.6% Gross profit margin 68.4% 68.9% OPEX 383.7 413.7 7.8% 3.4% EBITA 138.4 187.0 35.1% 19.3% EBITA margin 18.1% 21.4% Operating free cas
Slide 17: Solid Growth in Key Markets in Local Currencies
Half-Year 2012/13 SOLID GROWTH IN KEY MARKETS IN LOCAL CURRENCIES in CHF million 1H 2011/12 1H 2012/13 Sales in % Sales in % Growth in lc EMEA (excl. Switzerland) 289 38% 317 36% +8.6% Switzerland 21 3% 14 2% -32.9% USA 277 36% 339 39% +9.2% Americas (excl. USA) 102 13% 114 13% +9.7% Asia/Pacific 74
Slide 18: Sales Growth Across Product Groups
Half-Year 2012/13 SALES GROWTH ACROSS PRODUCT GROUPS in CHF million 1H 2011/12 1H 2012/13 Sales in % Sales in % Growth in lc Premium HI 173 23% 192 22% +2.2% Advanced HI 174 23% 212 24% +9.8% Standard HI 233 31% 240 28% +0.9% Wireless comm. 34 4% 31 4% -14.4% Miscellaneous 110 14% 126 14% +12.9% Hea
Slide 19: HI Margins Influenced by Mix Challenges
Half-Year 2012/13 HI MARGINS INFLUENCED BY MIX CHALLENGES Impact Sonova 1H Category Mix Effect Sales Gross Growth Margin Country Switzerland: Reimbursement change effective in July 2011 Germany: Slowdown/product mix shift (upcoming reimbursement changes) France and Italy: High growth in prio
Slide 20: Strong Leverage: OPEX vs. Top-Line Growth
Half-Year 2012/13 STRONG LEVERAGE – OPEX +3.4 % LC VS. TOP-LINE GROWTH OF 7.9% LC Change in CHF million 1H 2011/12 1H 2012/13 Change in CHF in lc Sales 763.0 872.4 +14.3% +7.9% Research & Development* 58.6 56.5 -3.6% -6.0% in % of sales 7.7% 6.5% Sales & Marketing 237.1 266.5 +12.4% +7.1% in % of sa
Slide 21: Group EBITA Development
Half-Year 2012/13 GROUP EBITA DEVELOPMENT 187.0 +0.3 165.1 +21.9 138.4 +26.4 +26.7 +19.3% +48.6 Margin: Margin: +35.1% Margin: 18.1% 20.1% 21.4% Avg. FX Rates 1H 2012/13 1H 2011/12 USD/CHF 0.95 0.85 EUR/CHF 1.20 1.21 EBITA Organic Acquisitions EBITA FX EBITA YTD SEPT. Growth YTD SEPT. effect YTD SEP
Slide 22: Details by Business Segments
Half-Year 2012/13 DETAILS BY BUSINESS SEGMENTS Growth Organic External In CHF million 1H 2011/12 1H 2012/13 FX impact in lc Growth Growth Sales HI 723.8 801,2 +4.5% +2.4% +2.1% +44.6 (+ 6.2%) CI 39.2 71.2 +70.5% +70.5% - +4.4 (+11.3%) Group 763.0 872.4 +7.9% +5.9% +2.0% + 49.0 (+6.4%) EBITA HI 158.9
Slide 23: Financial Results and Income Taxes
Half-Year 2012/13 FINANCIAL RESULTS AND INCOME TAXES in CHF million 1H 2011/12 1H 2012/13 Comments EBITA 138.4 187.0 No impairment in 1H 2012/13 Amortization/Impairment -15.3 -12.6 vs. impairment of CHF 4.9m in 1H 2011/12 Operating profit (EBIT) 123.1 174.4 in % of sales 16.1% 20.0% Lower net debt l
Slide 24: Significant Increase in Free Cash Flow
Half-Year 2012/13 SIGNIFICANT INCREASE IN FREE CASH FLOW in CHF million 1H 2011/12 1H 2012/13 Cash flow before changes in 169,7 218,5 net working capital Changes in net working capital -57.4 -51.4 Operating cash flow 112.3 167.1 in % of sales 14.7% 19.2% Cash flow from investing activities (excl. ac
Slide 25: Balance Sheet: Sound Financial Position
Half-Year 2012/13 BALANCE SHEET: SOUND FINANCIAL POSITION 31 Mar 30 Sep in CHF million Comments 2012 2012 Higher inventory, lower payables and Net working capital 163.4 207.4 FX effect Days sales outstanding (DSO) 72 73 New HI platform launch and timing of Days inventory outstanding (DIO) 122 140 la
Slide 26: Outlook
sonova 03. OUTLOOK
Slide 27: Guidance in Local Currencies Confirmed
Outlook GUIDANCE IN LOCAL CURRENCIES CONFIRMED Guidance Half-Year (actuals) FY 2012/13* 2012/13 Sales Sales growth in lc 7%-9% 7.9% thereof acquisition related growth approx. 1%-2% 2.0% FX-impact n/a 6.4% Total sales growth in CHF n/a 14.3% EBITA EBITA growth in lc 15%-20% 19.3% FX-impact n/a 15.8%
Slide 28: FX Impact on Sales and Margins
Outlook FX IMPACT ON SALES AND MARGINS USD/CHF EUR/CHF 1.00 1.35 0.95 1.30 1.25 0.90 1.20 0.85 0.85 1.15 0.80 0.80 1.10 0.75 0.75 1.05 0.70 1.00 0.70 Jun-11 Aug-11 Dec-11 Jun-12 Aug-12 Apr-11 Oct-11 Feb-12 Apr-12 Oct-12 Jun-11 Aug-11 Dec-11 Jun-12 Aug-12 Apr-11 Oct-11 Feb-12 Apr-12 Oct-12 Apr-11 May
Slide 29: Questions & Answers
sonova QUESTIONS & ANSWERS
Slide 30: Appendix
sonova APPENDIX
Slide 31: Upcoming Events
Upcoming Events 14 November 2012 Roadshow Zurich 15/16 November 2012 Roadshow London 16 November 2012 Roadshow Paris 19 November 2012 Roadshow Boston 20/21 November 2012 Roadshow New York 22 November 2012 Roadshow Toronto 11 January 2013 BaB meets Management Flims (CH) 18 January 2013 Helvea Confere
Slide 32: Contacts
Contacts CORPORATE INVESTOR RELATIONS Thomas Bernhardsgrütter Phone +41 58 928 33 44 Mobile +41 79 618 28 07 Email [email protected] Nicole Müller Phone +41 58 928 33 22 Email [email protected] CORPORATE MEDIA RELATIONS Michael Isaac Phone +41 58 928 33 24 Mobile +41 79 420
Slide 33: Thank You!
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