Slide 1: Amplifon 9M 2014
Amplifon 9M 2014 Milan - October 23rd, 2014
Slide 2: Disclaimer
Disclaimer The information contained herein and other material discussed during the analysts’ presentation, 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 uncer
Slide 3: 9M 2014 Financial Results
9M 2014 Financial Results WE
Slide 4: Strong growth in Europe and ongoing momentum in APAC boost profitability improvement
Strong growth in Europe and ongoing momentum in APAC boost profitability improvement Performance acceleration & strong double digit growth in Q3 (up +15.6% y-o-y at constant FX) driven by: outstanding double digit growth in Europe (+19.5% at constant FX) consolidation of Israel and strong growth rat
Slide 5: Solid Balance Sheet & cash flow continue to sustain our growth strategy
Solid Balance Sheet & cash flow continue to sustain our growth strategy International presence and footprint expansion is speeding up: entrance in the Israeli market by acquiring 60% of Medtechnica Orthophone Ltd acquisition of the retail chain Audika Italia Srl (55 shops) increased the stake in Amp
Slide 6: 9M-2014 Financial Results: sales & profitability recovery well on track
9M-2014 Financial Results: sales & profitability recovery well on track 9M 2013* € millions 9M 2014 ∆% restated Revenue 623.3 100.0% 586.4 100.0% 6.3% EBITDA 83.2 13.4% 70.3 12.0% 18.4% EBITA 60.2 9.7% 46.7 8.0% 28.9% EBIT 49.0 7.9% 35.0 6.0% 40.0% PBT 32.0 5.1% 10.3 1.8% 209.1% Group Net Income 26.
Slide 7: Demanding Q4 but momentum remains solid
Demanding Q4 but momentum remains solid Europe: 9M/14 revenue +8.8% YoY EMEA (+8.5% at constant FX) ME & A: 9M/14 revenue +174.6% YoY (+192.8% at constant FX) AMERICAS 9M/14 revenue -1.0% in USD YoY APAC 9M/14 revenue +11.4% in AUD YoY 6
Slide 8: Positive momentum & strong growth in all EMEA main markets
Positive momentum & strong growth in all EMEA main markets 9M 2014 Q3 2014 9M 2014 Q3 2014 % of 9M 2014 vs vs vs vs Group sales 9M 2013 Q3 2013 9M 2013 Q3 2013 Sales recovery driven by strong Q3 performance in free & paid-up market; Italy 1.4% 21.2% Positive FY-14 outlook supported by trial developm
Slide 9: Weaker trend in Americas more than offset by APAC outperformance
Weaker trend in Americas more than offset by APAC outperformance 9M 2014 Q3 2014 9M 2014 Q3 2014 % of 9M 2014 vs vs vs vs Group sales 9M 2013 Q3 2013 9M 2013 Q3 2013 High volatility in the monthly trend has resulted in Q3 performance remaining sluggish; growth accelerated AMERICAS -3.7% -0.9% Usa &
Slide 10: EMEA: comeback of key European markets supports margin recovery
EMEA: comeback of key European markets supports margin recovery € millions 9M 2014 9M 2013 ∆% € millions Q3 2014 Q3 2013 ∆% REVENUE 424.6 100.0% 385.3 100.0% 10.2% REVENUE 135.2 100.0% 110.1 100.0% 22.8% EBITDA 37.9 8.9% 26.0 6.7% 46.1% EBITDA 8.6 6.3% -0.5 -0.4% - EBIT 14.6 3.4% 2.6 0.7% 454.8% EBI
Slide 11: AMERICAS: solid & profitable business despite the softer YTD performance
AMERICAS: solid & profitable business despite the softer YTD performance € millions 9M 2014 9M 2013 ∆% € millions Q3 2014 Q3 2013 ∆% REVENUE 101.4 100.0% 105.4 100.0% -3.7% REVENUE 35.1 100.0% 35.4 100.0% -0.9% EBITDA 18.3 18.0% 20.8 19.8% -12.3% EBITDA 6.4 18.2% 7.2 20.3% -11.1% EBIT 15.5 15.3% 17.
Slide 12: APAC: margin expansion driven by strong organic growth
APAC: margin expansion driven by strong organic growth € millions 9M 2014 9M 2013 ∆% € millions Q3 2014 Q3 2013 ∆% REVENUE 97.4 100.0% 95.7 100.0% 1.7% REVENUE 36.6 100.0% 32.3 100.0% 13.3% EBITDA 27.0 27.8% 23.5 24.6% 15.0% EBITDA 10.8 29.5% 8.5 26.2% 27.4% EBIT 18.8 19.3% 14.5 15.1% 29.6% EBIT 7.9
Slide 13: Cash flow: Strong operational cash flow & renewed focus on external growth
Cash flow Strong operational cash flow & renewed focus on external growth € thousands 9M 2014 9M 2013 9M 2013 restated* reported EBIT 48,962 34,967 35,058 1. TAX refund of € 7.1 mln D&A 34,274 35,325 35,468 in Australia; lower payment in US due to Other non cash adjustments and gains/losses on sale
Slide 14: Solid capital structure to sustain expansion plans
Solid capital structure to sustain expansion plans Net Debt to Equity Net Debt 439.8 € millions € millions 289.5 289.5 As of 30/09/2014, Net Debt maturities covered until Total Equity 13.0 2018 by the current 427.1 Long-term Short-term Cash Net debt cash position – this debt debt does not include 30
Slide 15: 9M-2014 Amplifon Revenue Breakdown
9M-2014 Amplifon Revenue Breakdown € millions 9M 2014 9M 2013 ∆% ∆ FX OG% Q3 2014 Q3 2013 ∆% ∆ FX OG% Italy 152.5 24.5% 150.3 25.6% 1.4% -0.1% 45.1 37.2 21.2% 18.0% France 73.6 11.8% 69.2 11.8% 6.4% 3.8% 23.2 20.7 12.2% 8.3% The Netherlands* 47.8 7.7% 42.1 7.2% 13.6% 13.6% 17.0 13.9 22.5% 22.5% Germ
Slide 16: 9M-2014 Income Statement
9M-2014 Income Statement 9M 2013* € thousands 9M 2014 restated Revenue 623,349 100.0% 586,386 100.0% COGS (148,663) -23.8% 1 (139,514) -23.8% 1.ASP pressure in NL and Labour Costs (196,916) -31.6% (191,696) -32.7% unfavorable product mix in 2 Cost of services (194,153) -31.1% (186,363) -31.8% EHN be
Slide 17: Q3-2014 Income Statement
Q3-2014 Income Statement Q3 2014 Q3 2013 restated* Revenue 206,899 100.0% 177,788 100.0% COGS (49,635) -24.0% 1 (44,785) -25.2% 1. Improved COGS & Labour Costs (67,855) -32.8% (63,018) -35.4% favorable Country/mix 2 Cost of services (63,614) -30.7% (55,788) -31.4% 2.Labour & service costs % Other op
Slide 18: Balance Sheet: seasonal movement, perimeter growth and currency impact
Balance Sheet: seasonal movement, perimeter growth and currency impact 30/09/2014 31/12/2013 € thousands 30/09/2014 31/12/2013 € thousands restated* restated* Trade payables -87,188 -96,241 Goodwill 534,322 500,680 Other payables -106,301 -117,111 Cust. lists, non-compet. agreem., Provisions for con