Slide 1: 3Q 2005 Financial Results
3Q 2005 Financial Results November 11th, 2005 1
Slide 2: Key Points
Key Points ¾ Revenue growth: + 10%, excluding negative forex +11% ¾ Organic growth in core business in LC: + 7,4% ¾ Further profitability improvement: EBITDA + 90 bps ¾ Positive Free Cash Flow generation: + 16% ¾ Focus on integration of the acquired companies 2
Slide 3: Financial Highlights
Financial Highlights EUR million 30/09/2005 30/09/2004 ∆% ∆% in LC FY 2004 Revenues 386,9 100,0% 351,9 100,0% 9,9% 10,9% 488,9 100,0% EBITDA 58,6 15,1% 50,1 14,2% 16,8% 72,3 14,8% EBITA 46,2 12,0% 37,7 10,7% 22,7% 54,9 11,2% EBIT 43,0 11,1% 36,3 10,3% 18,4% 52,9 10,8% PBT 39,9 10,3% 32,6 9,3% 22,4%
Slide 4: Revenue Breakdown
Revenue Breakdown By Business Hearing Aids: By Country Biom edical CH 3% FR 4% 16% IT 29% ES+PG 3% HU NL 1% 14% Hearing GER Aids * USA 1% 97% 32% 4
Slide 5: Hearing Aids: Organic vs External Growth
Hearing Aids* : Organic vs External Growth EUR million 24,0 378,9 (3,7) (8,2) 367,0 4,0 5,4 2,7 17,5 325,1 External Growth: Organic Growth: + 7,4% +9,2% 9M 04** US Acquisitions Axt-Wendton French Acquisitions CH, NL, SP Organic Growth 9M 05* FX Transfers/Divestitures 9M 05*** (****) (*): “Hearing ai
Slide 6: Acquisitions at 30.09.2005
Acquisitions at 30.09.2005 EUR million Country Acquisition Investment FY Revenues N° of Shops USA Sounds of Life 9.091 9.091 39 Hear USA 909 2.934 22 USA Minor Acquisitions 13.346 14.529 50 23.346 26.554 111 Netherlands Minor Acquisitions 461 470 1 France Minor Acquisitions 5.371 4.289 13 Switzerlan
Slide 7: Amplifon Italy
Amplifon Italy EUR mln 9M Revenues 3Q Revenues ) ic growth in H.A. +10% + 4% (organ % th in H.A.: +4 Organic grow Total sales: -4% 104,3 108,4 31,8 30,6 3Q 2004 3Q 2005 30/09/2004 30/09/2005 Revenue growth of + 4% impacted by termination of Coclear contract for Euro 3,3 mln Organic growth in Hea
Slide 8: Amplifon US
Amplifon US US $ million 9M Revenues 3Q Revenues +14,5% + 12,5% 155,9 136,1 49,4 55,5 3Q 2004 3Q 2005 30/09/2004 30/09/2005 Revenue growth +14,5% of which 3% is the same-store-growth 3Q sales impacted by the hurricanes hitting Southern states Revenues in Miracle-Ear and NHC are negatively impa
Slide 9: Amplifon France
Amplifon France EUR mln 9M Revenues 3Q Revenues +19% +19% 58,9 49,7 14,1 16,2 30/09/2004 30/09/2005 3Q 2004 3Q 2005 Sound organic growth, despite administrative changes in reimbursement process and tougher competitive environment: 9M organic growth +7,6% (+4% same-store-growth; 3,6% new openings)
Slide 10: Acoudire Holland
Acoudire Holland EUR million 9M Revenues 3Q Revenues + 8% + 13% 49,8 54,0 15,9 17,9 3Q 2004 3Q 2005 30/09/2004 30/09/2005 Strengthening of organic growth: +13% in Q3, still mostly coming from better pricing environment. Market conditions affected by lower consumer spending. Strong month of Septe
Slide 11: Smaller Business Units
Smaller Business Units EUR million Amplifon Spain & Portugal Amplifon Switzerland ) i c 18% an ( org -1% + 41% 0%) 15,8 ( or g anic 1 - 4% + 30% 10,1 10,0 11,2 3,0 2,4 3,9 5,1 9M 04 9M 05 3Q 04 3Q 05 9M 04 9M 05 3Q 04 3Q 05 Viton (Hungary) Axt-Wendton (Germany) -6% -21% 2,1 2,0 0,9 0,7 4,0 2,3 5M 05
Slide 12: Capex & Acquisitions
Capex & Acquisitions Investem ent on Acquisitio Other Beg. Beg. Investem ns and Dispos variati Ending Ending (thousands Gross Net ent on Deconsoli als/Rec on Depreci Net Gross Euro) Balance Balance existing dations lasses (FX) ation Balance Balance Material Asset 100.393 40.897 13.471 2.617 (2.638)
Slide 13: Cash Flow Highlights
Cash Flow Highlights Euro million 9M 2004 9M 2005 9M 2004 (Italian GAAP) IAS Impact Net Profit 25,3 21,4 15,7 5,7 Non Cash Adjustments 27,1 19,5 24,3 -4,9 Changes in Working Capital -12,1 -7,3 -8,7 1,4 Operating Cash Flow 40,3 33,5 31,3 2,2 Net Capital Expenditure -14,1 -10,9 -10,4 -0,5 Free Cash Fl
Slide 14: Capital Structure
Capital Structure Euro million Net Debt to Equity (30/09/2005) Net Debt (30/09/2005) 116,7 95,8 116,7 Net debt = 12,2 (8,8) 181,3 acquisitions Long-term debt & Cash Net debt Short-term Equity Equivalens Debt for debt 31/06/2005 ¾ The company has drawn for Euro 135 million from the banks short to mid
Slide 15: Financial Annexes
15 Financial Annexes S\|amplifon
Slide 16: Income Statements 9M & 3Q
Income Statements 9M & 3Q (thousands Euro) 30/09/05 % 30/09/04 % 3Q 05 % 3Q 04 % Net revenues 386.879 100,0% 351.883 100,0% 123.115 100,0% 113.360 100,0% COGS -112.959 -29,2% -105.306 -29,9% -38.221 -31,0% -33.631 -29,7% Cost of services -111.378 -28,8% -102.292 -29,1% -34.657 -28,2% -33.269 -29,3%
Slide 17: P&L Europe
P&L Europe (*) EUR million 9M 2005 9M 2004 ∆% Revenues 263,4 100,0% 240,8 100,0% 9,4% EBITDA 43,3 16,4% 35,3 14,7% 22,6% EBIT 31,5 12,0% 24,4 10,1% 29,4% PBT 29,3 11,1% 21,5 8,9% 36,5% Net Income 18,9 7,2% 14,6 6,1% 29,5% (*): Biomedical Business included 17
Slide 18: P&L USA
P&L USA 9M 2005 9M 2004 ∆% Euro mln Revenues 123,5 100,0% 111,1 100,0% 11,2% EBITDA 15,3 12,4% 14,9 13,4% 2,7% EBIT 11,5 9,3% 12,0 10,8% -4,5% PBT 10,6 8,6% 11,2 10,1% -5,3% Net Income 6,4 5,2% 6,8 6,1% -5,6% US $ mln Revenues 155,9 100,0% 136,1 100,0% 14,5% EBITDA 19,3 12,4% 18,3 13,4% 5,8% EBIT 14
Slide 19: 9M 2004 Italian GAAP vs IAS/IFRS
9M 2004 Italian GAAP vs IAS/IFRS EUR million 9M 2004 (IAS/IFRS) 9M 2004 (Italian GAAP) ∆% Revenues 351,9 100,0% 353,8 100,0% -0,5% EBITDA (Italian GAAP) 52,9 14,9% 53,0 15,0% -0,3% Writedowns & Provisions 2,6 0,7% 3,2 0,9% -18,8% EBITDA (IAS) 50,1 14,2% 49,8 14,1% 0,6% Goodwill 1,4 0,4% 6,4 1,8% -78
Slide 20: IAS Impacts on P&L FY 2004
IAS Impacts on P&L FY 2004 Euro million FY 2004 FY 2004 (IAS/IFRS) (Italian GAAP) ∆% Revenues 488,9 100,0% 491,6 100,0% -0,6% EBITDA (Italian GAAP) 78,6 16,0% 81,5 16,6% -3,5% Writedowns & Provisions 6,4 1,3% 6,4 1,3% -0,9% EBITDA (IAS) 72,3 14,7% 75,1 15,3% -3,7% Goodwill 2,0 0,4% 8,6 1,8% -76,7% E
Slide 21: Balance Sheet
Balance Sheet Euro (thousands) 9M 2005 IAS 1H 2005 IAS 2004 IAS 2004 It. GAAP Impact Intangible assets 214.882 214.945 156.167 155.439 728 Tangible assets 46.039 44.808 40.897 33.081 7.816 Fixed financial assets 6.321 2.366 4.295 4.450 -155 Total fixed assets 267.242 264.593 201.359 192.970 8.389 In