Demant A/s · OMXCOP:DEMANT
Demant A/s — William Demant — Investor Day (2016)
26 slides from Demant A/s's investor day presentation, Dec 31, 2016
Slide 1: Leading in hearing healthcare
Leading in hearing healthcare Søren Nielsen COO, William Demant
Slide 2: Søren Nielsen
Søren Nielsen COO (Deputy CEO) of William Demant and President of Oticon Curriculum • Born in 1970 • M.Sc. in Industrial Management and Product Development from the Technical University of Denmark • COO and Deputy CEO since 2015 • Overall responsible for hearing aid wholesale • President of Oticon s
Slide 3: Agenda
Agenda • The hearing healthcare market • William Demant’s strategy • Position and competition 3
Slide 4: Introducing the hearing healthcare market
Introducing the hearing healthcare market 4
Slide 5: The hearing healthcare market
The hearing healthcare market Hearing Devices Hearing Implants Diagnostic Instruments Hearing instruments and Bone-anchored hearing systems Wide range of hearing-related accessories and cochlear implants equipment 5
Slide 6: Hearing devices value chain in commercial market
Hearing devices value chain in commercial market Manu- End-users/ Suppliers Retailers facturers payers ~5% ~25% ~70% 100% Percentage of value chain • Components • Six main players • Fragmented market • Private market • Consolidated market • Tough competition • Consolidation • Public market • Fight f
Slide 7: Solid structural growth drivers in hearing devices
Solid structural growth drivers in hearing devices Demography Increasing points of sales Emerging markets • Growing ageing population • Greenfield store openings • Demography • Increasing life expectancy • New channels being tested • Growing penetration rates with a few showing • Improved healthcare
Slide 8: 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 • Critical mass is crucial • SIDs • Hearing clinics etc. • Wide range of prod
Slide 9: Positive growth outlook for diagnostic instruments
Positive growth outlook for diagnostic instruments New business areas Emerging markets • Balance measurements/diagnostics • Building infrastructure • New-born screening • Improved healthcare systems • eHealth • Higher average income • Increasing life expectancy 9
Slide 10: Hearing implants value chain
Hearing implants value chain End- Manu- Distri- Clinics / Suppliers users/ facturers butors Hospitals payers ~10% ~55% ~35% 100% Percentage of value chain • Components • Four competitive • Manufacturers in • Hospitals • Reimbursement players most cases • Private clinics • Insurance Note: Surgeon fee
Slide 11: Long-term attractive growth potential in hearing implants
Long-term attractive growth potential in hearing implants Increasing reimbursement Continuous market expansion New markets • Reimbursement schemes are key • Significant number of new-born • New indications to growing penetration who qualify for a hearing implant • Emerging markets • Increased life e
Slide 12: Attractive value and growth in hearing healthcare
Attractive value and growth in hearing healthcare Market size (value) Market growth (value) Hearing Devices USD 4bn 1-3% Cochlear Implants USD 1.4bn 10-12% Bone Conduction Systems USD 170m 10-15% Diagnostic Instruments USD 500m 3-5% Hearing Healthcare ~5%* Above number estimates represent wholesale
Slide 13: Attractive value and growth in hearing healthcare
Attractive value and growth in hearing healthcare • Modest growth in Hearing Devices • Modest growth in Diagnostic Instruments • Strong growth in Hearing Implants Diagnostic 2020 2015 Instruments Diagnostic Instruments Hearing Implants CAGR ~5% Hearing Hearing Implants Hearing Devices Devices Note:
Slide 14: William Demant's strategy
William Demant’s strategy 14
Slide 15: William Demant's overall vision
William Demant’s overall vision To make a life- changing difference to people living with hearing loss 15
Slide 16: William Demant's overall strategy
William Demant’s overall strategy We want to further develop our position as a leading hearing healthcare company with the broadest and deepest product offering based on true innovation – delivered to customers and end-users through a multi-brand approach backed by a comprehensive global distributio
Slide 17: William Demant's value market share
William Demant’s value market share Hearing aid Diagnostic Bone-anchored Cochlear implants wholesale instruments hearing systems William Demant Other 17
Slide 18: Strategy of delivering profitable long-term growth
Strategy of delivering profitable long-term growth Hearing Devices Diagnostic Instruments • Maintain technology • Strengthen distribution model leadership • Pursue new market • Multi-brand strategy opportunities • Be present in all channels and • Generate organic and segments acquisitive growth • Ta
Slide 19: Synergies from our hearing healthcare approach
Synergies from our hearing healthcare approach Distribution • Commercial cross-business synergies • Lead generation across Innovation businesses • Sharing core platform (DSP, • Global distribution platform wireless) • Market insight • Advanced digital signal • Critical mass in local markets processi
Slide 20: Real-life synergies
Real-life synergies Hearing aid technology in Market access for Oticon Medical Developing state-of-the-art fitting hearing implants through existing customer relations process • Leveraging sound processing from • Existing relationships to ENT doctors • End-user knowledge from retail hearing aids thr
Slide 21: Strong platform for new growth opportunities
Strong platform for new growth opportunities • Through the strategic focus on innovation, distribution and infrastructure, William Demant has built a strong platform on which to execute on additional future growth opportunities • Diagnostic Instruments and BAHS are both successful additions to Willi
Slide 22: Position and competitive landscape
Position and competitive landscape 22
Slide 23: We have a strong foundation for growth
We have a strong foundation for growth Offerings Hearing aid wholesale Cochlear implants Bone-conducting systems Diagnostic instruments Controling distribution = Relative strength in business segment 23
Slide 24: Hearing healthcare trends and strategies
Hearing healthcare trends and strategies Current trends likely to evolve Strategies supporting long-term profit 1. Product complexity continues to rise 1. Ever growing and innovative R&D organisation 2. Modest value growth due to consolidation in remains king – manufacturers need leverage on retail
Slide 25: William Demant well positioned to win
William Demant well positioned to win Diversification is key to success • William Demant is able to meet high investment requirements and R&D spend • William Demant is well positioned to benefit from growth in all parts of the hearing healthcare value chain from a broadly based presence • William De
Slide 26: Thank you
William Demant / Thank you