Slide 1: FY 2016 Results
FY 2016 Results Milan | 28th February, 2017
Slide 2: Disclaimer
Disclaimer The information contained herein and other material discussed during the conference call, particularly the ones regarding any possible or assumed future performance of the Amplifon Group, are or may be forward looking statements and in this respect they involve some risks and uncertaintie
Slide 3: Contents
Contents FY 2016 Results 04 Update on our commitments 17 2017 Outlook & upcoming events 24
Slide 4: FY 2016 Key takeaways
FY 2016 Key takeaways An excellent year, successfully executing on a solid strategy Overall positive market dynamics, growing ~5% in units1 Outpacing the global hearing aids retail market (~2x market growth) Leadership consolidation and market share gains in all main countries Consistent gro
Slide 5: FY 2016 Financial highlights
FY 2016 Financial highlights Reaping the benefits of a strong execution: all-time high sales & EBITDA All-time high revenues growing 10.4%1 Data in €m FY 2016 FY 2015 Δ% Contribution from all three Regions REVENUES 1,133.1 1,034.0 +9.6% Second record year in a row Organic growth +7.4% Solid
Slide 6: Q4 2016 Financial highlights
Q4 2016 Financial highlights Strong finish of the year Another quarter of robust top-line growth (+9.3% in Data in €m Q4 2016 Q4 2015 Δ% LC) REVENUES 329.2 300.2 +9.6% Solid organic growth Organic growth +6.0% Accelerated M&A Acquisitions +3.3% Strong Q4 2015 comparable basis (+9.5% in LC) F
Slide 7: Revenue roadmap by Region
Revenue roadmap by Region Consistent, reliable and above-market growth FY 2016: +10.4%1 Organic growth2: +7.4% Acquisitions: +3.0% FX: -0.8% Q4 2016: +9.3%1 Organic growth2: +6.0% Acquisitions: +3.3% FX: +0.3% AMERICAS EMEA APAC 19.0% of FY 2016 Revenues 66.5% of FY 2016 Revenues 14.4% of FY 2016 Re
Slide 8: Financial results by Region: EMEA
Financial results by Region EMEA: strong profitable growth and market share gains Performance well above market reference Data in €m FY 2016 FY 2015 Δ% EMEA market growing ~5% in units in 20161 REVENUES 753.7 688.1 +9.5% Double digit revenue growth2, thanks to solid organic growth Organic grow
Slide 9: Strong start for acquisitions in 2017
Strong start for acquisitions in 2017 Network expansion in Portugal and France Definitive agreement signed with Sonova Works council consultation procedure Transaction for a total cash-out of around €16 million concluded summary Closing subject to anti-trust approval Signing & closing expect
Slide 10: Financial results by Region: Americas
Financial results by Region AMERICAS: high-single digit top-line growth Market share gains in a structurally growing market (+5.5%1 in Data in €m FY 2016 FY 2015 Δ% units in FY 2016) REVENUES 214.9 198.5 +8.3% Solid revenue growth also in Q4 despite very challenging comps (+18.7% in LC) and US c
Slide 11: Financial results by Region: APAC
Financial results by Region APAC: formidable engine of growth and profitability Market in Australia and New Zealand growing ~6% in units in Data in €m FY 2016 FY 2015 Δ% 20161 REVENUES 162.9 146.9 +10.9% Strong revenue growth of 11.6% in LC Organic growth +10.9% Robust organic growth (+10.9% i
Slide 12: Q4 2016 Financial results
Q4 2016 Financial results Delivering solid results Data in €m Q4 2016 Q4 2016 Q4 2015 Q4 2015 Δ% (unless specified) Recurring Reported Recurring Reported Recurring REVENUES 329.2 329.2 300.2 300.2 +9.6% EBITDA1 67.7 67.7 59.1 61.7 +14.6% Margin % 20.6% 20.6% 19.7% 20.5% - EBIT2 52.0 46.5 45.8 45.5 +
Slide 13: FY 2016 Financial results
FY 2016 Financial results Operating leverage delivering consistent and reliable double-digit earnings growth Data in €m FY 2016 FY 2016 FY 2015 FY 2015 Δ% (unless specified) Recurring Reported Recurring Reported Recurring REVENUES 1,133.1 1,133.1 1,034.0 1,034.0 +9.6% EBITDA1 189.4 186.9 167.4 165.2
Slide 14: FY 2016 Financial results: cash flow
FY 2016 Financial results Cash flow sustained higher Capex, primarily for openings & cash-out for acquisitions Data in €m FY 20161 FY 20152 Operating cash flow (a) 143.6 128.1 Capex (b) (62.5) (48.1) Disposals (b) 1.4 9.7 Free cash flow (a+b) 82.5 89.7 Acquisitions (c) (79.4) (41.1) Other acquisitio
Slide 15: FY 2016 Financial results: capital structure
FY 2016 Financial results Solid capital structure to sustain future growth opportunities Data in €m 31/12/2016 31/12/2015 Cash (183.8) (196.7) Short-term debt 28.7 19.1 Medium/long-term debt 379.6 382.5 Net debt 224.4 204.9 Equity 557.7 500.2 Net debt/EBITDA 1.17x 1.21x Net debt/total equity 0.40x 0
Slide 16: Contents
Contents FY 2016 Results 04 Update on our commitments 17 2017 Outlook & upcoming events 24
Slide 17: Delivering on our last year's commitments
Delivering on our last year’s commitments Executing with excellence What we said … … what we achieved in 2016 Amplifon 2018 All-time high revenues aspiration Outpacing global retail market − 7.4% organic growth vs. ~5% market − Contribution from acquisitions (+3.0%) Strong momentum across all
Slide 18: Strengthening leadership in core countries
Executing on Amplifon’s strategic pillars Strengthening leadership in core countries Strategic priorities Country 2016 Key achievements Gain market Strengthen leadership Miracle-Ear share through accelerated Brand Equity strengthening organic growth Optimized marketing mix US Successful TV cam
Slide 19: Marketing excellence
Executing on Amplifon’s strategic pillars Marketing excellence Key elements 2016 Key achievements Brand Launch of the new global brand identity (June 2016) strategy 70% of Amplifon stores re-branded at YE 2016 Great impact of new TV campaigns Marketing effectiveness & US & Italy: strong lead
Slide 20: Innovative service model
Executing on Amplifon’s strategic pillars Innovative service model Amplifon 360° program designed to make the real value of our expertise and services visible through a superior in-store experience centered around a new testing protocol and counseling approach SERVICE MODEL INNOVATION BEST EXPERTS M
Slide 21: Effective execution capabilities
Executing on Amplifon’s strategic pillars Effective execution capabilities Enhanced IT Digital HR Engagement Survey infrastructure C ~ ~ Website Participation index Infrastructure ~ Careers Websites Support the growth and integrate ~ 1 Global and 14 Local 88.4% acquisitions of employees Engagement i
Slide 22: Results well on track to reach 2018 ambitions
Results well on track to reach 2018 ambitions 2018 target 2016 results vs. 2015 Mid-to-high Sales growth single digit +10.4%1 CAGR 2015-2018 >150bps Profitability increase EBITDA margin2 +50bps vs. 2015 +600 Stores +230 Stores3 Network expansion 2016-18 vs. 2015 +141 in Germany & France 1 In local c
Slide 23: Contents
Contents FY 2016 Results 04 Update on our commitments 17 2017 Outlook & upcoming events 24
Slide 24: 2017 Outlook
2017 Outlook Entering 2017 with sound optimism Amplifon’s strong momentum is expected to continue in 2017 Another year of solid growth, above market reference and with healthy mix Contribution from all Regions Solid organic growth Accelerated growth from acquisitions Sales growth acceler
Slide 25: 2017 Financial calendar
2017 Financial calendar Upcoming corporate events April 20th, 2017 Shareholder’s General Meeting to resolve upon, inter alia • Approval of Financial Statements as of December 31st, 2016 and Dividend distribution • Buy back program, primarily to serve stock-based incentive plans April 27th, 2017 Q1 2
Slide 26: amplifon
amplifon