Slide 1: Presentation to Investors September 2020
Presentation to Investors September 2020 amplifon
Slide 2: Disclaimer
Disclaimer The following applies to this document, the oral presentation of the information in this document by Amplifon S.p.A. (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (collectively, the “Information”). In accessi
Slide 3: Contents
Contents JHU Amplifon today a= An attractive industry with long-term growth ahead Strategy eames § Reshaping the hearing care retail around the customer Our plan in Spain: GAES integration aes § China: our first Joint Venture FY 2019 & HI 2020 Results amplifon
Slide 4: Amplifon today
Amplifon today “a #1 GLOBAL LEADER IN HEARING CARE RETAIL © Amplifon S.p.A. Presentation to Investors PA GCOF & >I1% global market share €1.73bn revenues in 2019 28 countries, 5 continents #1 or #2 in most markets ~l,000 points of sale ~I7000 people
Slide 5: Company history
Company history 1990's 2010 July 2018 December 2018 Expansion in Europe and entry Expansion in APAC with the Acquisition of GAES, the largest Entry into the FTSE MIB - into the North American acquisition of National Hearing privately-owned specialty primary index for Italian equity market with the a
Slide 6: Key financial highlights
Key financial highlights Revenues EUR Million 1,732 1,362 1,266 1,034 id : L | 2013 2014 2015 2016 2017 2018 2019 Operating cash flow EUR Million 239 169 186 128 144 Thee 2013 2014 2015 2016 2017 2018 2019 EBITDA recurring EUR Million +16% CAGR 234 167 189 2I7 : : LJ J l l 2013 2014 2015 2016 2017 2
Slide 7: Contents
Contents Amplifon today mms An attractive industry with long-term growth ahead Strategy Reshaping the hearing care retail around the customer Our plan in Spain: GAES integration China: our first Joint Venture FY 2019 & HI 2020 Results amplifon
Slide 8: Key global industry trends
Key global industry trends Gg Long-term sustained-market growth driven by secular trends $s Unique market with high barriers to entry A) Retail market value concentrated in developed countries, with emerging countries still limited in value Fragmented retail market with few international chains {9)
Slide 9: Long-term sustained growth driven by secular trends
Long-term sustained growth driven by secular trends Demographics and penetrations as growth drivers "Global hearing care retail market is estimated at around EUR I5bn in 2019, growing at ~4% per year, and expected to continue to grow at similar pace in the next years supported by long-term trends! "
Slide 10: Fragmented global retail market
Fragmented global retail market Amplifon is a consolidator via a successful bolt-on acquisition strategy INDEPENDENTS SPECIALTY RETAILERS NON-SPECIALTY RETAILERS ONLINE PLAYERS © Amplifon S.p.A. Presentation to Investors ~50% >35% 10% Players with <IO PoS, under gradual consolidation Very few intern
Slide 11: Contents
Contents Amplifon today An attractive industry with long-term growth ahead | Strategy eames § Reshaping the hearing care retail around the customer Our plan in Spain: GAES integration China: our first Joint Venture FY 2019 & HI 2020 Results amplifon
Slide 12: Strategic Pillars
Strategic Pillars Clear and focused strategy We will We will We will focus lead build V4 \7 \7 on core in Customer an effective & Markets Experience talented innovation Organization Growth potential further accelerated by the recent GAES acquisition © Amplifon S.p.A. Presentation to Investors
Slide 13: Contents
Contents Amplifon today An attractive industry with long-term growth ahead ees § Strategy DT! Reshaping the hearing care retail around the customer Our plan in Spain: GAES integration China: our first Joint Venture FY 2019 & HI 2020 Results amplifon
Slide 14: Reshaping the hearing care retail around the customer
Reshaping the hearing care retail around the customer Accelerating on our pillars to deliver our growth ambitions BRAND CUSTOMER DATA Vv Na Vv Effective branding Long lasting Superior customer & advertising customer loyalty knowledge ‘Top of mind’ brand Offer personalized Leverage unmatched in all k
Slide 15: A compelling innovation program: the Amplifon Product Experience
A compelling innovation program: the Amplifon Product Experience Amplifon Product Line Amplifon multichannel ecosystem Differentiating from competition Redefining the Amplifon experience throughout oe the customer journey Four product families to respond to any customers’ needs A data-driven approac
Slide 16: Amplifon Product Line to reinvent the way hearing aids are perceived
Amplifon Product Line to reinvent the way hearing aids are perceived We have reimagined our world placing customers first Further strengthen our brand equity Further differentiate \ from competition | through a unique value proposition Leverage products and technology in communication & advertising
Slide 17: Amplifon multichannel ecosystem: new services for an unmatched customer experience
Amplifon multichannel ecosystem: new services for an unmatched customer experience across all touchpoints Building the real differentiation via software STORE SERVICES Remote assistance through video tutorials, “book an Engage clients \ appointment” and “store locator” functions & hearing care profe
Slide 18: Successful launch of the Amplifon Product Experience
Successful launch of the Amplifon Product Experience Excellent results in all countries launched YTD The launch in Italy in 2018 Launch of the Amplifon product line & ecosystem in May ‘I8 Outstanding response from customers and HCP Continuous features release of Amplifon APP Multichannel advertising
Slide 19: Contents
Contents as AMplifon today a= An attractive industry with long-term growth ahead ees § Strategic Update eames § Reshaping the hearing care retail around the customer ££ Our plan in Soain: GAES integration China: our first Joint Venture FY 2019 & HI 2020 Results amplifon
Slide 20: GAES & Amplifon together in Spain
GAES & Amplifon together in Spain Absolute leadership in a highly promising market #1 player ~6x larger than #2 ~95% Brand awareness 700+ PoS Largest footprint ~1,810 people ~,160 hearing care professionals Tremendous opportunity leveraging GAES unique assets & Amplifon Group’s best practices © Ampl
Slide 21: Spain: an attractive and high-potential market
Spain: an attractive and high-potential market Italy vs. Spain: market data Market size 2018, Penetration, ASP, Media cost, “O00 units % Rebased |OO Rebased |OO Opportunity to create another superb Amplifon stronghold 5 | Cost per Gross Rating Point © Amplifon S.p.A. 0 Presentation to Investors
Slide 22: GAES integration: Key value creation levers
GAES integration: Key value creation levers One Brand, One Organization, One Network, One Customer Experience = Early and thorough integration planning, supported by rigorous execution and continuous monitoring " Dedicated integration team accountable for project management, delivery of synergies, i
Slide 23: Contents
Contents Amplifon today a= An attractive industry with long-term growth ahead ees § Strategic Update eames § Reshaping the hearing care retail around the customer Our plan in Spain: GAES integration Ts! Ching: our first Joint Venture FY 2019 & HI 2020 Results amplifon
Slide 24: ▪ ▪ ▪ ▪ 12% 14% ▪ ~ % ▪ ▪ 88% 86% ▪
▪ ▪ ▪ ▪ 12% 14% ▪ ~ % ▪ ▪ 88% 86% ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 25: Contents
Contents Amplifon today a= An attractive industry with long-term growth ahead ees § Strategic Update eames § Reshaping the hearing care retail around the customer Our plan in Spain: GAES integration aes § China: our first Joint Venture es -Y 2019 & Hi 2020 Results amplifon
Slide 26: FY 2019: another record year of proven execution
FY 2019: another record year of proven execution Outstanding profitable growth, also fostered by GAES successful integration Outstanding revenue growth Strong profitability expansion Excellent cash flow generation © Amplifon S.p.A. Presentation to Investors EUR 1.73 billion, +26.I% in LC vs. 2018, s
Slide 27: Q2 2020: Revenues affected by Covid-19 particularly in April
Q2 2020: Revenues affected by Covid-19 particularly in April but materially improving during the quarter Actions on costs and cash flow delivering impressive results = Revenues down 42.8% at constant FX due to CovicH9 outbreak, still outpacing the global hearing care retail market Organic contractio
Slide 28: Trading update
Trading update Faster-than-expected recovery, July trading above previous year = Impressive pace of recovery, improving sequentially during the quarter and strongly correlated with the ease of lockdown restrictions * April running at ~—65% vs prior year with ~35%! of network operating = May at ~-45%
Slide 29: Q2 2020 Financial highlights
Q2 2020 Financial highlights Financials far better-than-expected with impressive results on profitability and cash flow, thanks to timely and effective measures = Revenues down 42.8% in LC Pata in ém @2 2020 Q2 2019 A% = Organic performance at -44.I%, due to Covid-I9 outbreak REVENUES. 250.4 440.1 -
Slide 30: H1 2020 Financial highlights
HI 2020 Financial highlights Highly encouraging results reflecting solid speed of recovery and strong ability in managing cost base and cash flow = Revenues down 26.0% in LC Data in €m HI 2020 HI 2019 a% * Organic performance at -27.8%, due to Covid-I9 outbreak REVENUES 613.9 832.0 -26.2% * M&A cont
Slide 31: Financial results by Region
Financial results by Region EMEA: performance affected by Covid-I9 but significantly improving both on top-line and profitability since end of April Data in €m HI 2020 HI 2019 A% REVENUES 4375 607.1 -27.9% Organic growth -29.6% Acquisitions H1.5% FX +0.2% EBITDA 102.9 147.3 -30.2% Margin % 23.5% 24.
Slide 32: Financial results by Region
Financial results by Region AMERICAS: varied timing and impact of Covid-I9 across the Region, with the core US market showing the strongest speed of recovery = Revenues down 20.9% in LC i 9 Pata in ém HI 2020 HI 2019 A% * Organic performance at ~-2I%, due to Covid-I9 outbreak REVENUES 104.6 BLO -20.
Slide 33: Financial results by Region
Financial results by Region APAC: leading the recovery on the top-line and showing an outstanding operating leverage = Revenues down -17.8% in LC Data in €m HI 2020 HI 2019 A% + Organic performance at -23.5% * M&A contribution at +5.7% related to Attune acquisition REVENUES 718 91.0 - 211% . * Curre
Slide 34: Q2 2020 Financial results
Q2 2020 Financial results Results far better-than-expected despite extraordinary Covid-l9 impact on business Data in €m Q2 2020 Q2 2019 A% Rec. (unless specified) Recurring Reported REVENUES 250.4 440.1 440.1 -43.1% EBITDA! 66.4 107.6 103.2 -38.3% Margin % 26.5% 24.5% 23.5% 4 ORDINARY D&A (39.5) (37
Slide 35: H1 2020 Financial results
Hi 2020 Financial results Results far better-than-expected despite extraordinary Covid-19 impact on business Data in €m HI 2020 HI 2019 A% Rec. (unless specified) Recurring Reported REVENUES 613.9 832.0 852.0 -26.2% EBITDA! 131.3 186.6 180.8 -29.6% Margin % 214% 224% 217% > ORDINARY D&A (80.2) (72.7
Slide 36: H1 2020 Financial results
Hi 2020 Financial results Outstanding cash flow generation with Free cash flow up +24.6%, despite Covid-I9 outbreak Data in €m HI 2020! HI 20197 A Operating cash flow before repayment of lease liabilities 121.6 139.5 (17.9) Repayment of lease liabilities (27.7) (39.7) 12.0 Operating cash flow 93.9 9
Slide 37: H1 2020 Financial results
Hi 2020 Financial results Excellent NFP with leverage at 2.18x and further strengthened financial profile Data in €m 30/06/2020 31/12/2019 Cash (427.2) (138.4) Short-term debt 66.4 172.4 Medium/long-term debt 1,126.2 752.6 Net financial debt 765.3 786.7 Lease liabilities 442.7 424.6 Total financial
Slide 38: 2020 Outlook
2020 Outlook Looking ahead with confidence = Whilst we remain cautious about the future developments of the Covid-I9 outbreak, we believe the worst is behind us = The impressive speed of recovery since the easing of restrictive measures and the actual July run rate clearly demonstrate the resilience
Slide 39: Investor Relations Contacts
Investor Relations Contacts FRANCESCA RAMBAUDI Director Tel: +39 02 5747 2261 francesca.rambaudi@amplifon.com amplifon AMANDA HART GIRALDI OLGA LEPECHKINA Specialist Assistant Tel: +39 02 5747 2317 Tel: +39 02 5747 2542 amanda.giraldi@amplifon.com olga.lepechkina@amplifon.com