Slide 1: Half Year Results 2024/25
Half Year Results 2024/25 Arnd Kaldowski, CEO Birgit Conix, CFO Stäfa, November 19, 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are su
Slide 3: Business Review
Business Review 3
Slide 4: Summary HY 2024/25
Summary HY 2024/25 − Solid sales growth, driven by market share gains in HI and CI − Above-market growth in HI despite late-cycle pressures – strong development in CI, driven by sales of new systems − Challenging market conditions and lead generation in AC and CH business holding back sales developm
Slide 5: Sonova Group results: Key highlights
Sonova Group results Key highlights – HY 2024/25 Sales EPS (adj.) Sales outlook CHF 1,833.2 m CHF 3.74 per share +6 - 9% +5.9% in LC -9.6% in LC growth in LC +4.6% in CHF -13.9% in CHF in FY 2024/25 Organic growth +4.5% in LC EBITA (adj.) Breakthrough innovation EBITA (adj.) outlook CHF 325.2 m Succ
Slide 6: Sonova Group results: Business summary
Sonova Group results Business summary − Sales of CHF 868.2 million, up +7.0% in local currencies (LC), resulting in solid market share gains Hearing − Strong unit growth partially offset by ASP pressure prior to the launch of new platforms late in the period Instruments (HI) − Very positive customer
Slide 7: Hearing Instruments segment
Hearing Instruments segment Highlights Sales EBITA (adj.) Segment sales − Solid growth in the HI business, despite late-cycle CHF 1,686m CHF 310m pressure on ASP and weaker-than-expected market +5.4% vs. PY in LC -4.9% vs. PY in LC − Lower than anticipated growth in AC business, +3.9% organic growth
Slide 8: Hearing Instruments business
Hearing Instruments business Sales dynamics HI business sales: CHF 868m +7.0% vs. PY in LC − Solid sales growth of +7.0% in LC in 1H, driven by strong unit growth partially offset by late-cycle ASP pressure − Biggest product launch campaign ever for new Infinio and Sphere Infinio with flagship event
Slide 9: Delivering breakthrough innovation
Delivering breakthrough innovation New Infinio and Sphere Infinio platforms Sphere Infinio Dedicated 2nd chip for Step change in speech 2-3 times more likely to intelligibility, delivering up to understand every word real-time AI sound processing 50% more access to from any direction DEEPSONIC speec
Slide 10: Strong initial market response
Strong initial market response Key launch metrics Good repurchase rate High share of Sphere Infinio − More than 70% of HCPs in the US local − Over 50% of total Infinio units sold since open market have re-ordered Infinio and launch were Audéo Sphere , indicating strong Sphere Infinio after their ini
Slide 11: Audiological Care business
Audiological Care business Sales dynamics AC business sales: CHF 701m +4.6% vs. PY in LC +1.1% organic growth − Organic growth below expectations, held back by a high prior year comparison, slow markets in Europe, and modest pipeline of prospective customers coming into the FY − Bolt-on acquisitions
Slide 12: Leveraging platform launch for consumer lead generation
Leveraging platform launch for consumer lead generation Example – Comprehensive launch campaign at Boots Hearingcare Multi-media campaign across TV, radio, print, digital and PR launch event for key journalists, customers and influencers. Print and TV Excellent customer feedback Strong initial comme
Slide 13: Consumer Hearing business
Consumer Hearing business Sales dynamics CH business sales: CHF 117m -1.7% vs. PY in LC − Consumer electronics market remains challenging − Premium and audiophile headphones key contributors to sales, including recently launched MTW4 − Stable overall market share with gains in the audiophile categor
Slide 14: Cochlear Implants segment
Cochlear Implants segment Highlights Sales EBITA (adj.) Cochlear implant systems − Strong YOY growth of +18.2% in LC representing CHF 147.6m CHF 15.8m solid market share gains +12.5% vs. PY in LC +28.5% vs. PY in LC − Development driven by effective commercial Margin: 10.7% execution and Remote Prog
Slide 15: Financial information
sonova HEAR THE WORLD Financial information 15
Slide 16: Financial highlights
Financial highlights Sonova Group − Sales of CHF 1,833.2 million +5.9% in LC and +4.6% in CHF Sales − Significant FX headwinds of CHF -23.2 million (-1.3%) − Organic sales growth of +4.5% in LC − Gross profit margin (adj.) of 71.9%, +50bps in LC from 71.6% in PY Profitability − OPEX up +10.6% in LC,
Slide 17: Sales components
Sonova Group results Sales components in CHF million OPERATIONAL FX +5.9% 1,856.5 24.0 -23.2 1,833.2 79.5 1,753.0 1H 23/24 Organic M&A 1H 24/25 FX 1H 24/25 Reported net of divestments LC impact Reported YOY growth components +4.5% +1.4% +5.9% -1.3% +4.6% ► Solid growth despite softer markets and com
Slide 18: Gross margin development
Gross margin development Sonova Group OPERATIONAL FX +50bps − Gross margin increased by +50bps in LC 72.1% − Margin development mainly driven by: 0.0% -0.2% 71.9% − Higher volume in HI, lower costs of components and +0.5% productivity gains 71.6% − ASP pressure leading up to the launch of the new pl
Slide 19: Development of operating expenses
Development of operating expenses Sonova Group OPERATIONAL FX +10.6% − Organic OPEX growth outpacing sales development, in in CHF million 1’001.3 part related to the launch +1.8% -0.9% 993.4 in LC − R&D expenses stable in LC, after successful conclusion of parallel platform developments +8.8% − S&M
Slide 20: EBITA Components
EBITA Components Sonova Group in CHF million OPERATIONAL ADJUSTMENTS FX -3.7% 350.0 -14.5 337.0 1.4 -17.4 319.5 -11.6 307.9 1H 23/24 Organic M&A 1H 24/25 Adjustments 1H 24/25 FX 1H 24/25 adjusted net of divestments adj. in LC in LC reported in LC reported Margin 20.0% -1.7% -0.2% 18.2% -0.9% 17.2% -
Slide 21: Cash flow development
Cash flow development Sonova Group – Operating Free Cash Flow FX impact: CHF -12m − OpCF before changes in NWC: Driven by lower income before tax and adverse FX impact 361 380 349 − Changes in NWC: impacted by the build-up of inventories in connection with the launch, partially compensated by benefi
Slide 22: Balance sheet
Balance sheet Key metrics CHF m 30 Sep 2024 30 Sep 2023 Comments Days sales outstanding (DSO) 55 57 − Continued improvements of receivables collection Days payable outstanding (DPO) 62 52 − Improvement from payment term initiatives Days inventory outstanding (DIO) 180 165 − Build-up of inventory fol
Slide 23: Strategy & Outlook
sonova trategy & Outlook 23
Slide 24: Sonova's strategy
Sonova’s strategy Strategic pillars Lead innovation in audiological performance & consumer experience Leverage M&A Expand consumer access to accelerate growth through omni-channel strategically audiological care network and consumer device business Continuous process Extend reach through improvement
Slide 25: Our growth ambition
Our growth ambition Ambition to gain market share through customer-focused growth strategy and strong execution capability Mid-term targets Sonova growth strategy Key focus areas Sales CAGR Executing on our strategic pillars to Targeted growth initiatives in 5 focus areas 6-9% p.a. in LC drive above
Slide 26: Outlook
Outlook Recap of 1H 2024/25 and considerations for 2H 2024/25 Recap 1H 2024/25 Considerations for 2H 2024/25 − Unit growth in the hearing care market around 2-3 percentage points lower − Subdued growth in the global hearing care market expected to continue for the than expected, with ongoing weaknes
Slide 27: Guidance FY 2024/25
Outlook Guidance FY 2024/25 Guidance In LC FY 2024/25 Sales growth +6% to +9% p.a. adj. EBITA growth +7% to +11% p.a. Note: adj. refers to adjusted figures; for details, please refer to the Appendix. ► New platforms expected to drive sales momentum in 2H – Strong profitability growth expected 27
Slide 28: sonova
sonova HEAR THE Wi ORD 28
Slide 29: Thank you!
sonova HEAR THE WORLD Thank you!
Slide 30: Sales by regions and key markets
Appendix Sales by regions and key markets ıH2024/25 ıH 2023/24 CHF m Δ % in LC % Group sales CHF m % Group sales EMEA 913.5 +4.5% 50% 881.6 51% USA 562.8 +7.1% 31% 530.7 30% Americas (excl. USA) 135.7 +11.5% 7% 126.5 7% Asia / Pacific 221.1 +5.5% 12% 214.2 12% Total Sonova 1,833.2 +5.9% 100% 1,753.0
Slide 31: Key financials – Sonova Group
Appendix Key financials – Sonova Group ıH 2024/25 ∆ margin CHF m Margin ∆ % in LC in LC Sales (reported) 1,833.2 +5.9% Gross profit (adj.) 1,318.5 71.9% +6.6% +50bps OPEX (adj.) 993.4 +10.6% EBITA (adj.) 325.2 17.7% -3.7% -180bps Adjustments -17.2 EBITA (reported) 307.9 16.8% -4.1% -180bps Acq. rel.
Slide 32: Expense by category excluding acquisition-related amortization
Appendix Sonova Group – Expense by category excluding acquisition-related amortization 1H 2024/25 1H 2023/24 CHF m ∆ % in LC CHF m Research & development (adj.) -113.4 -1.5% -115.6 in % of sales 6.2% 6.6% Sales & marketing (adj.) -696.8 +12.5% -625.3 in % of sales 38.0% 35.7% General & administratio
Slide 33: Key financials – As reported and adjusted
Appendix Key financials – As reported and adjusted 1H 2024/25 Adjustments 1H 2024/25 Transaction & in CHF million Reported 1 Restructuring 2 Total Adjusted integration Sales 1,833.2 - - - 1,833.2 Cost of sales -521.6 +6.8 - +6.8 -514.7 Gross profit 1,311.7 +6.8 - +6.8 1,318.5 Research & Development
Slide 34: Non-GAAP adjustments
Appendix Non-GAAP adjustments in CHF m ıH 2024/25 ıH 2023/24 Restructuring +14.2 +10.2 thereof HI segment +10.1 +7.2 thereof CI segment +4.1 +3.0 Transaction and integration costs +3.1 +6.5 Total adjustments to EBITA +17.2 +16.7 Note: positive values indicate a positive impact on the adjusted vs. th
Slide 35: Sales by segment and sales components
Appendix Sales by segment and sales components ıH 2024/25 ıH 2023/24 CHF m Δ % in CHF Δ % in LC CHF m Δ % in CHF Δ % in LC HI business 868.2 +5.3% +7.0% 824.5 -11.3% -4.3% AC business 700.8 +3.7% +4.6% 675.5 +5.5% +11.5% CH business 116.7 -3.1% -1.7% 120.3 -9.5% -1.9% HI segment 1,685.7 +4.0% +5.4%
Slide 36: Sales performance by business
Appendix Sales performance by business Hearing Instruments business Audiological Care business ıH 2024/25 ıH 2023/24 ıH 2024/25 ıH 2023/24 Δ% Δ% Δ% Δ% Δ% Δ% Δ% Δ% CHF m in CHF in LC CHF m in CHF in LC CHF m in CHF in LC CHF m in CHF in LC Sales 868.2 +5.3% +7.0% 824.5 -11.3% -4.3% Sales 700.8 +3.7%
Slide 37: Cash flow statement
Appendix Cash flow statement ıH 2024/25 ıH 2023/24 CHF m ∆ % in CHF CHF m Income before taxes 258.3 -12.0% 293.7 Depreciation & amortization 120.4 -0.7% 121.3 Working capital -133.7 +5.3% -127.0 Other cash effects 8.0 +156.2% 3.1 Tax paid -49.2 +8.0% -45.6 Financial result 11.2 +57.0% 7.1 Operating
Slide 38: Sonova Group – FX impact on sales and margins
Appendix Sonova Group – FX impact on sales and margins USD/CHF EUR/CHF Rate Sales EBITA USD/CHF +/- 5% +/- CHF 60 million +/- CHF 15 million EUR/CHF +/- 5% +/- CHF 66 million +/- CHF 24 million 38
Slide 39: Sales by currency and FX rates
Appendix Sonova Group – Sales by currency and FX rates Spot Other ıH-23/24 ıH-24/25 ∆ YOY in % 2H-23/24 FY-23/24 Nov-2024 USD USD 0.89 0.89 -0.9% 0.88 0.89 0.89 GBP, CAD, EUR 0.97 0.96 -0.8% 0.95 0.96 0.94 BRL, AUD GBP 1.12 1.13 +1.0% 1.10 1.11 1.12 and JPY CAD 0.66 0.65 -2.4% 0.65 0.66 0.63 AUD 0.5
Slide 40: Key dates
Key dates Date Event April 1 – May 12, 2025 Quiet period May 13, 2025 Publication of Full-Year Results 2024/25 June 10, 2025 AGM Sonova Financial Calendar Please find the full financial calendar here: https://www.sonova.com/en/financial-calendar 40
Slide 41: Investor relations contacts
Investor relations contacts Thomas Bernhardsgruetter Jessica Grassi Senior Director Investor Relations Director Investor Relations +41 58 928 33 44 +41 58 928 33 22 Sonova Group Headquarters +41 79 618 28 07 +41 79 416 28 76 Laubisrütistrasse 28 Thomas.Bernhardsgruetter@sonova.com Jessica.Grassi@son