Slide 1: H1 2018 Results
H1 2018 Results Milan | July 26th, 2018
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: Q2 & H1 2018 Key takeaways
Q2 & H1 2018 Key takeaways Excellent momentum continues ▪ Continued strong top-line growth (Q2 2018: +10.6% in LC; H1 2018: +10.2% in LC) ▪ Strong organic growth, above market ▪ Robust contribution from M&A ▪ Extremely challenging comparable basis (+13.1% in Q2 2017 vs Q2 2016; +14.6% in H1 2017 vs
Slide 4: Q2 2018 Financial highlights
Q2 2018 Financial highlights Excellent top-line growth and continued profitability expansion ▪ Another quarter of strong double-digit top-line growth in LC (+10.6%) Q2 2018 Q2 2017 Δ% ▪ Outstanding organic growth at +7.4% Data in €m @’18 IFRS @’17 IFRS @’17 IFRS ▪ Robust M&A contribution REVENUES 35
Slide 5: H1 2018 Financial highlights
H1 2018 Financial highlights Solid execution leading to strong half-year results ▪ Strong top-line growth of +10.2% in LC H1 2018 H1 2017 Δ% ▪ Robust organic growth as well as M&A contribution Data in €m @’18 IFRS @’17 IFRS @’17 IFRS ▪ Currency headwind for both USD/EUR and AUD/EUR REVENUES 659.6 66
Slide 6: Revenue roadmap by Region
Revenue roadmap by Region Excellent momentum continues H1 2018: +10.2% in LC Organic growth1: +6.5% Acquisitions: +3.7% FX: -4.0% Q2 2018: +10.6% in LC Organic growth1: +7.4% Acquisitions: +3.2% FX: -3.1% AMERICAS EMEA APAC 16.5% of H1 2018 Revenues 70.3% of H1 2018 Revenues 13.0% of H1 2018 Revenue
Slide 7: Financial results by Region: EMEA
Financial results by Region EMEA: outstanding top-line growth along with excellent profitability expansion H1 2018 H1 2017 Δ% ▪ Outstanding revenue growth of +12.1% in LC Data in €m @’18 IFRS @’17 IFRS @’17 IFRS ▪ Strong organic growth at 6.8%, further accelerating in Q2 REVENUES 463.0 465.8 418.5 +
Slide 8: Financial results by Region: Americas
Financial results by Region AMERICAS: robust trading performance, strong organic growth acceleration in Q2 H1 2018 H1 2017 Δ% ▪ Robust revenue growth at +5.0% in LC Data in €m @’18 IFRS @’17 IFRS @’17 IFRS ▪ Strong organic growth in Q2 2018, with sequential REVENUES 109.3 109.7 116.5 -5.8% improveme
Slide 9: Financial results by Region: APAC
Financial results by Region APAC: strong performance affected by significant FX headwind H1 2018 H1 2017 Δ% ▪ Strong revenue growth of +7.4% in LC, affected by Data in €m @’18 IFRS @’17 IFRS @’17 IFRS very negative FX ▪ Challenging comparison base (+15.7% in H1 2017 vs REVENUES 86.1 86.0 88.0 -2.2%
Slide 10: National Hearing Care: new brand image and positioning
National Hearing Care: new brand image and positioning New growth opportunity in Australia to grow in the private market ▪ January 2018: Launch of the new visual identity ▪ February – September 2018: Stores rebranding ▪ July - December 2018: New TV and digital campaign H1 2018 Results I July 26th, 2
Slide 11: Q2 2018 Financial results
Q2 2018 Financial results Delivering excellent results in all P&L items, Net Profit +25% Data in €m Q2 2018 Q2 2017 Δ% Rec. (unless specified) @’17 IFRS @’18 IFRS @’17 IFRS Recurring Reported REVENUES 350.2 352.4 327.7 327.7 +7.5% EBITDA1 66.7 68.2 62.5 60.0 +9.1% Margin % 19.1% 19.4% 19.1% 18.3% -
Slide 12: H1 2018 Financial results
H1 2018 Financial results Continued improvement in all profitability lines Data in €m H1 2018 H1 2017 Δ% Rec. (unless specified) @’17 IFRS @’18 IFRS @’17 IFRS Recurring Reported REVENUES 659.6 662.8 623.8 623.8 +6.2% EBITDA1 109.9 112.2 103.4 100.9 +8.5% Margin % 16.7% 16.9% 16.6% 16.2% - D&A (33.9)
Slide 13: H1 2018 Financial results
H1 2018 Financial results Strong cash flow generation to support Capex and M&A to foster Company’s growth Data in €m H1 20181 H1 20172 Δ Operating cash flow (a) 70.4 61.3 9.1 Capex (net) (b) (26.0) (28.8) 2.8 Free cash flow (a+b) 44.5 32.5 12.0 Acquisitions (net) (c) (37.6) (75.3) 37.7 Cash provided
Slide 14: H1 2018 Financial results
H1 2018 Financial results Solid capital structure to sustain future growth opportunities 30/06/2018 31/12/2017 Data in €m @’18 IFRS @’17 IFRS Cash (223.8) (223.8) (124.1) Short-term debt1 304.2 304.2 301.1 Medium/long-term debt 239.2 239.2 119.3 Net debt 319.6 319.6 296.3 Equity2 550.2 603.6 588.4 N
Slide 15: 2018 Outlook
2018 Outlook Strong momentum to persist ▪ Entering H2 with a strong H1 behind ▪ Strong momentum is expected to continue in H2 2018 ▪ Robust top-line growth, above market reference and with healthy mix ▪ Contribution from all Regions ▪ Solid organic growth ▪ Contribution from acquisitions ▪ Continued
Slide 16: Investor Relations Contacts
Investor Relations Contacts FRANCESCA RAMBAUDI PAOLA BEZZI OLGA LEPECHKINA Director Junior specialist Assistant Tel: +39 02 5747 2261 Tel: +39 02 5747 2310 Tel: +39 02 5747 2542 francesca.rambaudi@amplifon.com paola.bezzi@amplifon.com olga.lepechkina@amplifon.com