Sonova Holding Ag · SIX:SOON
Sonova — H1 2011/12 Earnings Presentation
26 slides from Sonova's earnings presentation, Nov 15, 2011
Slide 1: Half-Year 2011/12 Results – Media Conference
HALF-YEAR 2011/12 RESULTS – Media Conference Staefa, 15 November 2011
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: Business Review
BUSINESS REVIEW
Slide 4: Half Year 2011/12 Highlights
Half Year 2011/12 Highlights – Sales of CHF 763.0 million Total sales growth of +8.3% in lc Negative currency effect of 16.5% – Group EBITA of CHF 138.4 million or 18.1% of sales Negative currency effect of CHF 53.2 million – Solid core business hearing instruments Growth of 11.4% in lc Or
Slide 5: Key topics for 2011/12
Sonova Key topics for 2011/12 Topic Initiatives Status AB temporary recall Complete submission and receive FDA approval; resume selling in U.S.A. AB Neptune product launch Complete launch of new off-the-ear, water-proof power supply AB next generation product Continue development of next generatio
Slide 6: EUHA 2011 - Highlights
EUHA 2011 - Highlights - Solid local currency sales growth Preliminary H1 2011/12 sales results - Innovation leadership continues with Spice - Spice+, the next significant step forward More than ever the industry’s leading - Innovations in performance, miniaturization, brand water resistance, connec
Slide 7: Phonak: best performing portfolio, now on Spice+
Phonak The best performing portfolio in the industry – now on Spice+ CROS/ Power Standard CRT BiCROS Segment Premium Nano CIC WaterResistant Power Custom portfolio Advanced Audéo S Audéo S Audéo S Naída Naída Naída YES SMART MINI CROS S SP S UP S CRT Standard Accessories Phonak TVLink Phonak PilotOn
Slide 8: Next generation Lyric (in clinical trial phase)
Phonak Next generation Lyric (in clinical trial phase) Next Generation Lyric will improve on following attributes: Fit Rate – Smaller in size – significantly improved fit rate Lyric current New new COGS – Industrialized by Sonova – Improved reliability – Improved COGS Lyric current New new Launch pl
Slide 9: Unitron enhanced product portfolio
Unitron Enhanced product portfolio Super Power Traditional CRT ITEs (custom) Sona: BTEs Segment Passport Passport Passport Premium Quantum Moxi Quantum Quantum micro 20, 12, 6 20, 12, 6 20, 12, 6 312 BTE vogue:ric Advanced vogue:micro 360 Latitude 4 Latitude 4 Latitude 4 vogue:intro Shine Shine Shin
Slide 10: Strongest product portfolio in the industry
Strongest product portfolio in the industry High innovation rate of 80% Launched 1 year ago 20% Launched 2 years ago Launched more than 2 years ago 58% 22% Phonak Ambra AudéoS Phonak Solana Phonak Cassia Phonak CROS/BiCROS Naida S Lyric Moxi Quantum Continuously outperforming the market November 15,
Slide 11: Sonova is the innovation leader
Sonova is the innovation leader Launch of new platforms drives organic growth in hearing instruments segment 4.0% 4.0% 23.8% 8.0% 8.0% 0.7% 3.4% 3.4% 18.8% 18.4% 18.4% 16.1% External growth in lc 1.1% 1.7% Internal growth in lc 11.1% 3.0% 4.4% 4.4% 3.0% 4.3% 4.3% 9.5% 9.5% 7.8% 7.8% 7.0% 5.8% 7.0% 5
Slide 12: Advanced Bionics: back on the market worldwide
Advanced Bionics Back on the market worldwide On September 13th, 2011 the Advanced Bionics HiRes 90K cochlear implant was FDA approved for market re-entry. Therefore Advanced Bionics has resumed distribution in the United States and re-entered all markets worldwide. Hearing implants sales H1 2011/12
Slide 13: Sonova – The Hearing Care Company
Sonova – The Hearing Care Company Hearing instruments Behind-The-Ear hearing instruments (BTE) FM systems Hearing implants 95% of revenue 5% of revenue Cochlear implants Custom In-The-Ear hearing instruments (ITE) Hearing protection Wireless communication systems Earphones Invisible
Slide 14: Financial Track Record
Financial Track Record Sales in CHF million Gross profit margin in % of sales 1'617 75.00% 1'700 LC 1'500 69.9% 69.4% 70.6% 69.2% CAGR 68.2% 68.4% 1'500 70.00% 16.8% 66.6% 1'205 1'249 63.3% 1'300 65.00% 1'073 60.1% 1'100 867 60.00% 900 763 54.4% 621 660 55.00% 700 526 H1 500 50.00% 2002/03 2003/04 2
Slide 15: The business case for Sonova
The business case for Sonova Sonova serves an attractive market Sonova has strong leading positions in this market Significant opportunities for market share gains – Highest R&D spend – fast rate of product innovation – Multi-channel strategy – Multi-brand strategy Growth strategies – Innovation – M
Slide 16: Financial Review
FINANCIAL REVIEW
Slide 17: Solid financial performance
Half Year 2011/12 Solid financial performance In CHF million H1 2011/12 Change H1 2010/111) Sales 763.0 -8.2% 831.5 Gross profit 522.1 -10.5% 583.4 Gross profit margin 68.4% 70.2% EBITA 138.4 -32.3% 204.4 EBITA margin 18.1% 24.6% Operating free cash flow 83.8 +2.2% 82.0 Cash-based basic EPS (in CHF)
Slide 18: Substantial FX impact on results
Half Year 2011/12 Substantial FX impact on results H1 2011/12 H1 2011/12 In CHF million (constant H1 2010/111) reported currencies) Sales 763.0 899.9 831.5 Gross Profit 522.1 623.3 583.4 Gross Profit margin 68.4% 69.3% 70.2% EBITA 138.4 191.6 204.4 EBITA margin 18.1% 21.3% 24.6% USD (average rate) 0
Slide 19: Sales results
Half Year 2011/12 Sales results Growth Internal External In CHF million H1 2011/12 H1 2010/111) FX impact in lc Growth Growth Hearing instrument sales 723.8 766.0 +11.4% +7.0% +4.4% -129.4 (-16.9%) Hearing implant sales 39.2 65.5 -28.8% -28.8% - -7.4 (-11.3%) Consolidated sales 763.0 831.5 +8.3% +4.
Slide 20: Solid growth in local currencies
Half Year 2011/12 Solid growth in local currencies in CHF million H1 2011/12 H1 2010/11 Sales in % Growth in lc Sales in % EMEA (excl. Switzerland) 289 38% 8.1% 303 36% Switzerland 21 3% 29.3% 16 2% USA 277 36% 9.6% 319 39% Americas (excl. USA) 102 13% 2.4% 117 14% Asia/Pacific 74 10% 7.2% 77 9% Tot
Slide 21: Operating expenses
Half Year 2011/12 Operating expenses Thereof Change in CHF million H1 2011/12 H1 2010/111) Change in CHF in lc acquisition related in lc Research & Development 58.6 59.6 -1.6% +3.6% +0.0% in % of sales 7.7% 7.2% Sales & Marketing 237.1 234.7 +1.0% +17.0% +9.4% in % of sales 31.1% 28.2% General & Adm
Slide 22: Outlook
OUTLOOK
Slide 23: FX impact on sales and margins likely to continue
Outlook FX impact on sales and margins likely to continue E 2011/12: 1.21 E 2011/12: 0.87 Rate Sales EBITA USD/CHF +/- 5% +/- CHF 30 million +/- CHF 10 million EUR/CHF +/- 5%impact on sales Negative +/- CHF 25 million expected on margins +/- CHF 15 million November 15, 2011 23
Slide 24: Original 2011/12 guidance is confirmed
Outlook Original 2011/12 guidance is confirmed Actual Original Guidance Confirmed Guidance in CHF million Year-to-September 2011/12 2011/12 2011 Sales 763 Sales growth in lc 8%-10% 8.3% 8%-10% incl. 2%-3% incl. 4.1% incl. approx. 3% acquisition growth acquisition growth acquisition growth EBITA 138
Slide 25: The business case for Sonova
The business case for Sonova Sonova serves an attractive market Sonova has strong leading positions in this market Significant opportunities for market share gains – Highest R&D spend – fast rate of product innovation – Multi-channel strategy – Multi-brand strategy Growth strategies – Innovation – M
Slide 26: Thank you
THANK YOU