Demant A/s · OMXCOP:DEMANT
Demant A/s — Investor Day (2016)
31 slides from Demant A/s's investor day presentation, Sep 28, 2016
Slide 1: Diagnostic Instruments
Diagnostic Instruments Arne Boye Nielsen President, Diagnostic Instruments
Slide 2: Arne Boye Nielsen
Arne Boye Nielsen President, Diagnostic Instruments and Personal Communication, William Demant Holding A/S • Born in 1968 • M.Sc. in Business Administration, Copenhagen Business School • President, Diagnostic Instruments and Personal Communication in William Demant since 1996 • Employed with the Wil
Slide 3: Agenda
Agenda • Diagnostic Instruments in William Demant • The value chain and distribution • Areas for future growth • Synergies in William Demant • Q&A 3
Slide 4: Diagnostic Instruments William Demant
Diagnostic Instruments William Demant 4
Slide 5: Diagnostic Instruments Market share
Diagnostic Instruments Market share William Demant ~37% • DKK 1,072 billion in sales in 2015 • +1% from 2014 in local currencies • ~1,000 employees • Global presence • Market leader – ~37% market share • Multi-brand company Other ~63% 5
Slide 6: Business model
Business model Diagnostic Instruments Sales Sales Sales Sales Sales Sales R&D R&D R&D R&D R&D R&D Marketing Marketing Marketing Marketing Marketing Marketing PM PM PM R&D platform development Production/logistics Quality SID distribution in the US 6
Slide 7: Product range overview
Product range overview Audiometers Impedance Fitting ABR* OAE* VNG* *Note: ABR: Auditory Brainstem Response; OAE: Otoacoustic Emissions and VNG: Videonystagmography 7
Slide 8: Customer segments
Customer segments • New-born screening • Hearing aid dispensers • ENT doctors • General practitioners • University clinics • Balance centres • Schools • Neurologists • Paediatricians • Chiropractors • Army • Emergency rooms • Audiologists • Physical therapists 8
Slide 9: Total market 2015
Total market 2015 Instruments only Other William Demant ~26% ~37% Growth of 1-2% Auditdata in 2015 ~2% Rion ~2% Total market Natus USD ~265 million ~10% GNO in wholesale value ~23% 9
Slide 10: Sales per year
Sales per year DKK million 1,200 • Acquisitions on top of strong organic growth of 7% per year 1,000 • CAGR of 18% from 2010-2015 800 600 400 200 0 2003 2005 2007 2009 2011 2013 2015 10
Slide 11: William Demant’s market share development
William Demant’s market share development Market share (%) 60 Since we entered the market in 1996, we have continued to grow our market share to ~40% measured in value 40 20 0 1996 2000 2009 2015 WDH Rest 11
Slide 12: Production in Poland
Production in Poland • Production site with 200 employees • Distribution and production centre for Diagnostic Instruments worldwide 12
Slide 13: Interacoustics HQ and Diagnostics innovation centre
Interacoustics HQ and Diagnostics innovation centre 13
Slide 14: Grason-Stadler – new product family
Grason-Stadler – new product family 14
Slide 15: The value chain and distribution
The value chain and distribution 15
Slide 16: Diagnostic instruments value chain
Diagnostic instruments value chain Resellers Manu- End-users/ Suppliers and service facturers payers providers ~15% ~55% ~30% 100% Percentage of value chain • Components • Three large players • BtB • Hearing aid dispensers • Sub-assembly • Critical mass is crucial • SIDs • Hearing clinics etc. • Wid
Slide 17: Market share and profitability
Market share and profitability Profitability (%) 30 Size matters – still opportunities for acquisitions 25 20 15 10 5 0 -5 Market -10 share (%) 2 4 6 8 10 12 14 16 18 20 22 24 26 28 Source: Michael Porter 17
Slide 18: “Sales companies”
“Sales companies” Global presence 18
Slide 19: US market for hearing and balance equipment
US market for hearing and balance equipment North America Sales split Total market USD ~160 million (end-user value) Other SID ~35% ~65% 19
Slide 20: What is a SID?
What is a SID? North America Sales split • Special Instrument Distributor – a distribution channel focusing on Service hearing and balance ~25% • Focus on selling, servicing and supporting equipment in hearing and balance • Optimal size of territory is 6-8 million citizens per sales person Rest • Si
Slide 21: William Demant – strong distribution in US
William Demant – strong distribution in US North America • Acquired and merged 20+ independent SIDs from 2011 • 200+ employees including 45 sales people and 100 service technicians • All offices on the same business system – designed to run an efficient SID business 21
Slide 22: Leading SIDs joining forces
Leading SIDs joining forces North America 22
Slide 23: Future growth
William Demant Future growth wr | <a id 4 § ay
Slide 24: Potential growth areas
Potential growth areas • New-born hearing screening • Consumables • Service and calibration business Great opportunities • Hearing aid fitting systems for future growth • China/Asia • Balance 24
Slide 25: Balance market
Balance market Sales split Instrumentation for diagnosing and Balance treating dizziness and balance disorders ~13% Growing awareness and market opportunities Rest Link to hearing instrument market ~87% 25
Slide 26: Interacoustics Academy
Interacoustics Academy Examples of projects from 2015 • Interacoustics Academy is the academic Face-to-face academic or technological sparring partner for end-users of training; more than 3,000 end-users trained Interacoustics’ specialised technologies and procedures 15 webinars and more than 1,500
Slide 27: IRU – Interacoustics Research Unit
IRU – Interacoustics Research Unit • The ”R” in R&D is an avenue to increased growth through new unique applied technologies • Three full-time researchers benefit from the inspiring location at the Technical University of Denmark – one of the world’s leading hearing research environments • Extensive
Slide 28: IRU - Interacoustics Research Unit
IRU - Interacoustics Research Unit Current IRU research projects include • Validation of hearing aid fitting in infants by measuring electrical brain potential • Improving diagnosis of vestibular nerve tumors • ”Hidden Hearing Loss” (diagnosing a previously unknown type of noise induced hearing loss
Slide 29: Synergies in William Demant
Synergies in William Demant 29
Slide 30: Synergies with other William Demant activities
Synergies with other William Demant activities • Access to customers • CRM Diagnostic Cochlear • Fitting process Instruments Implants • Emerging markets Synergies Hearing Instruments 30
Slide 31: Thank you
William Demant / Thank you