Slide 1: Q3 & 9M 2017 Results
Q3 & 9M 2017 Results Milan | 25th October, 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: Q3 & 9M 2017 Key takeaways
Q3 & 9M 2017 Key takeaways Continuing sustained profitable growth ▪ Solid sales growth (Q3 2017: +9.1%1; 9M 2017: +12.1%1) – Robust organic growth, despite lower market growth in selected countries in the last couple of quarters – Strong contribution from M&A – Challenging comparable basis ▪ Continu
Slide 4: Q3 2017 Financial highlights
Q3 2017 Financial highlights Solid sales growth and strong operating leverage ▪ Solid top-line growth (+9.1%1) in a low-seasonality Data in €m Q3 2017 Q3 2016 Δ% quarter REVENUES 278.0 259.7 +7.0% ▪ Organic growth at 3.2% despite Organic growth +3.2% ▪ Negative impact of one trading day less vs Q3 2
Slide 5: 9M 2017 Financial highlights
9M 2017 Financial highlights Double-digit growth and strong profitability expansion ▪ Strong sales in all Regions Data in €m 9M 2017 9M 2016 Δ% ▪ Excellent performance in EMEA: +13.8%1 REVENUES 901.8 803.9 +12.2% ▪ Robust momentum in Americas: +8.9%1 Organic growth +6.0% ▪ Solid trading in APAC: +8.
Slide 6: Revenue roadmap by Region
Revenue roadmap by Region Consistent strong growth across Regions 9M 2017: +12.1%1 Organic growth2: +6.0% Acquisitions: +6.1% FX: +0.1% Q3 2017: +9.1%1 Organic growth2: +3.2% Acquisitions: +5.9% FX: -2.1% AMERICAS EMEA APAC 19.0% of 9M 2017 Revenues 66.0% of 9M 2017 Revenues 14.9% of 9M 2017 Revenue
Slide 7: Financial results by Region: EMEA
Financial results by Region EMEA: strong top-line growth driving profitability ▪ Outstanding revenue growth of +13.8% in LC Data in €m 9M 2017 9M 2016 Δ% ▪ Solid organic growth boosted by accelerated M&A REVENUES 595.1 526.5 +13.0% ▪ Strong comparable basis (+10.2% in 9M 2016 vs 9M 2015) Organic gro
Slide 8: Financial results by Region: Americas
Financial results by Region AMERICAS: solid top-line performance and strong profitability improvement ▪ Solid revenue growth at ~9% in LC, primarily driven by a Data in €m 9M 2017 9M 2016 Δ% strong execution of Miracle-Ear and AHHC and by a REVENUES 171.6 157.0 +9.3% positive contribution from EHN O
Slide 9: Financial results by Region: APAC
Financial results by Region APAC: robust trading performance, back to acceleration in Q3 ▪ Strong revenue growth of 8.1% in LC Data in €m 9M 2017 9M 2016 Δ% ▪ Solid organic growth in Q3 2017, with sequential REVENUES 134.0 119.8 +11.9% improvement vs Q2 and despite one trading day less vs. Organic g
Slide 10: Q3 2017 Financial results
Q3 2017 Financial results Delivering solid results, net profit also benefitting from lower tax rate Recurring Reported Data in €m (unless specified) Q3 2017 Q3 2016 Δ% Q3 2017 Q3 2016 Δ% REVENUES 278.0 259.7 +7.0% 278.0 259.7 +7.0% EBITDA1 37.4 33.6 +11.2% 36.0 33.6 +7.1% Margin % 13.5% 13.0% - 13.0
Slide 11: 9M 2017 Financial results
9M 2017 Financial results Continued improvement in all profitability lines, net profit also benefitting from lower tax rate Recurring Reported Data in €m (unless specified) 9M 2017 9M 2016 Δ% 9M 2017 9M 2016 Δ% REVENUES 901.8 803.9 +12.2% 901.8 803.9 +12.2% EBITDA1 140.8 121.6 +15.8% 136.9 119.1 +14
Slide 12: 9M 2017 Financial results: cash flow
9M 2017 Financial results Cash flow sustained higher investment activities, primarily for openings & acquisitions Data in €m 9M 20171 9M 20162 Δ Operating cash flow (a) 76.8 62.1 +14.7 Capex (net) (b) (42.8) (34.6) (8.2) Free cash flow (a+b) 34.0 27.5 +6.5 Acquisitions (net) (c) (83.0) (70.5) (12.5)
Slide 13: 9M 2017 Financial results: capital structure
9M 2017 Financial results Solid capital structure to sustain future growth opportunities Data in €m 30/09/2017 31/12/2016 Cash (114.0) (183.8) Short-term debt 329.5 28.7 Medium/long-term debt 105.2 379.6 Net debt 320.7 224.4 Equity 550.8 557.7 Net debt/EBITDA 1.54x 1.17x Net debt/total equity 0.58x
Slide 14: Refinancing program
Refinancing program Crystallizing better terms & conditions for July 2018 onwards ▪ Current high level of interest expenses is driven by expensive credit lines and negative carry ▪ Following UniCredit’s facility obtained in September 2017, a further bilateral medium-term unsecured financing agreemen
Slide 15: 2017 Outlook
2017 Outlook On the right track to build another record year ▪ Confirming healthy FY outlook – Good start of Q4 so far ▪ Top-line growth above market reference with healthy mix – Contribution from all Regions – Solid organic growth – Continued strong contribution from acquisitions ▪ Robust sales gro
Slide 16: 2018 Financial calendar
2018 Financial calendar Upcoming corporate events March 6th, 2018 FY 2017 Results Conference call & audio webcast at 3.00pm CET April 20th, 2018 Shareholder’s General Meeting to resolve upon, inter alia ▪ Approval of Financial Statements as of December 31st, 2017 and Dividend distribution ▪ Appointm
Slide 17: Investor Relations Contacts
Investor Relations Contacts FRANCESCA RAMBAUDI AMANDA HART GIRALDI PAOLA BEZZI OLGA LEPECHKINA Director Specialist Junior specialist Assistant Tel: +39 02 5747 2261 Tel: +39 02 5747 2317 Tel: +39 02 5747 2310 Tel: +39 02 5747 2542 francesca.rambaudi@amplifon.com amanda.giraldi@amplifon.com paola.bez