Amplifon Spa · MIL:AMP
Amplifon Spa — Investor Day (September 2021)
52 slides from Amplifon Spa's investor day presentation, Sep 13, 2021
Slide 1: Amplifon Capital Markets Day 2021
Amplifon Capital Markets Day 2021 Innovating around the customer to fuel profitable growth Milan, 13th September, 2021
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: Management team with you today
Management team with you today Enrico Vita Giuseppe Vironda Alessandro Bonacina Anthea Muir Iacopo Pazzi Gabriele Galli Chief Executive Officer Chief Marketing Officer Executive Vice President Executive Vice President Executive Vice President Chief Financial Officer Americas APAC EMEA ©Amplifon S.p.
Slide 4: Agenda
Agenda Welcome & agenda Australia & China: two compelling growth opportunities F. Rambaudi | IR & Sustainability Sr Director A. Muir | Executive Vice President APAC Connected from Singapore Our strategic journey of sustainable profitable growth Our strategy in numbers E. Vita | Chief Executive Offic
Slide 5: Our strategic journey of sustainable profitable growth
Our strategic journey of sustainable profitable growth Enrico Vita Chief Executive Officer 5
Slide 6: Amplifon today: stronger than ever
Amplifon today: stronger than ever Unique 11% Brand ~800,000 global market share customers served every year Portfolio 26 17,500 >9,000 countries people points of sale ~1.93bn € revenues in 2021 E ~24.8% EBITDA margin 2021 E ~1.8x leverage 2021 E Note: Key data above excludes Elite in light of annou
Slide 7: Committed to the pillars of our simple and focused strategy
Committed to the pillars of our simple and focused strategy A customer-centered strategy able to deliver long-term growth Leadership & Unique customer People & Growth model proposition Organization ©Amplifon S.p.A. | Capital Markets Day | 13th September, 2021 7
Slide 8: Surfing the next waves of growth
Surfing the next waves of growth Remarkable growth opportunities still to be exploited in many geographies Europe Spain Germany France North America Asia US China Canada Australia ©Amplifon S.p.A. | Capital Markets Day | 13th September, 2021 8
Slide 9: 2023 Key financial targets
2023 Key financial targets Accelerating on our ambitions while increasing investments to strengthen platform for long-term growth 2021 Guidance1 2023 Target1 from 2021 guidance SALES Amplifon2 ~1,930 €m High-single digit CAGR 2021-2023 SALES Bay Audio ~65 €m ~100 €m (not consolidated)3 EBITDA MARGIN
Slide 10: Our strategy for a more inclusive and sustainable future
Our strategy for a more inclusive and sustainable future Listening Ahead: a holistic approach with concrete and measurable targets Product & service stewardship People empowerment Raise awareness and accessibility to hearing Attract, develop and retain the best talents Promote innovative solut
Slide 11: A unique and unmatchable customer proposition
A unique and unmatchable customer proposition Giuseppe Vironda Chief Marketing Officer 11
Slide 12: A unique and unmatchable customer proposition
A unique and unmatchable customer proposition Top of Mind Superior Customer Leading Brand Knowledge Innovation in CX ©Amplifon S.p.A. | Capital Markets Day | 13th September, 2021 12
Slide 13: The sound of emotions
The sound of emotions ©Amplifon S.p.A. | Capital Markets Day | 13th September, 2021 13
Slide 14: The Global Brand platform in hearing care retail
The Global Brand platform in hearing care retail #1 Top-of-Mind brand in 5 out of 8 core markets1 On the podium in the other 3 Glocal strategy Hero-formats with local adaptation Brand investment acceleration Boost in USA, Germany and Australia > €200m threshold in 2023 1. Core markets: ITA, ES, FR,
Slide 15: Amplifon.com: the leading digital address in hearing care
Amplifon.com: the leading digital address in hearing care #1 SEO website Organic traffic in 7 out of 8 core markets1 +170% Organic traffic growth H1 21 vs H1 19 13.7 million visits Organic traffic in H1 21 1. Core markets: ITA, ES, FR, DE, NL, US, AU, NZ Source: SimilarWeb, Organic traffic as sum of
Slide 16: Outstanding digital marketing performance
Outstanding digital marketing performance Top Digital Talents Fully scaled Digital Center of Excellence Top talents from agencies and digital-native companies, growth-hacking culture Internal content factory Performance Excellence Digital Leads +44% H1 19 H1 21 25%+ of total leads ©Amplifon S.p.A.
Slide 17: Earpros.com: unbranded platform to reach all audiences
Earpros.com: unbranded platform to reach all audiences 7 markets live Scaling to 10 by 2022 +5.4 million Incremental reach on target 55+ in H1 2021 vs H1 20201 4 years younger 65 average age vs 69 of Amplifon website2 1. Incremental reach based on digital social channel, unduplicated data 2. Age bas
Slide 18: Superior customer knowledge on a global scale
Superior customer knowledge on a global scale A unique data lake Outstanding mar-tech capabilities +10m +35m Leading-edge Data-first R&D with top talents Customer database Campaigns technology mindset feedbacks per year Customer demographics Campaigns Product feedbacks usage Data scientist Amplifon
Slide 19: Personalized lifecycle management unleashing growth
Personalized lifecycle management unleashing growth 1:1 Personalized CRM Revenue grow th • Deployed advanced attitudinal segmentation – from 3 segments to 20+ • Scaled 100+ multi-channel automated journeys • Re-designed best-contact strategy to reduce frequency of interaction while increasing releva
Slide 20: Amplifon Product Experience keeps growing successfully
Amplifon Product Experience keeps growing successfully Global scale-up Leading App ~45% on total sales App penetration at ~17% and up to 40% in selected markets ~85% penetration on addressable iOS USERS markets 4.4 Amplifon app 10 active countries 11 countries by 2021 2.6 Competitors’ app (avg) Full
Slide 21: Ampli-care
Ampli-care ©Amplifon S.p.A. | Capital Markets Day | 13th September, 2021 21
Slide 22: Ampli-care: reshaping the audiological care experience
Ampli-care: reshaping the audiological care experience An omni-channel, omni-persona experience enhanced through data, technology and empathy Immersive Proprietary audiometer technology, iOS based Audiologist store experiences Enhanced touch-experiences and second-screen Hyper- personalized Caregive
Slide 23: Ampli-care: reshaping the audiological care experience
Ampli-care: reshaping the audiological care experience An omni-channel, omni-persona experience enhanced through data, technology and empathy Immersive Audiologist store experiences Hyper- AI-powered solution- personalized builder engine Caregiver solutions ampli-care Always connected support ENT ©A
Slide 24: Ampli-care: reshaping the audiological care experience
Ampli-care: reshaping the audiological care experience An omni-channel, omni-persona experience enhanced through data, technology and empathy Immersive Audiologist store experiences Hyper- personalized Caregiver solutions ampli-care Always Store Audiologist + 24/7 expert remote support and monitorin
Slide 25: A unique and unmatchable customer proposition
A unique and unmatchable customer proposition Top of Mind Superior Customer Leading Brand Knowledge Innovation in CX ©Amplifon S.p.A. | Capital Markets Day | 13th September, 2021 25
Slide 26: Riding the wave of growth in the US
Riding the wave of growth in the US Alessandro Bonacina Executive Vice President Americas 26
Slide 27: US: a structurally growing market
US: a structurally growing market Largest market worldwide Huge growth potential Two key market segments ~€6.5bn Baby boomers are on Private retail chains market in 2021E the rise >40% 24% of the market of total population over 65+ >40% by 2030 up 11p.p. from 2010 High-single digit CAGR 2019-23 of t
Slide 28: OTC hearing aids: a consumer driven perspective
OTC hearing aids: a consumer driven perspective Two different consumer segments, with different needs: one can possibly be served by OTC, if safe and effective The consumer’s perspec ti ve % of all hearing loss Two different consumer segments, with different demographics, attitudes and needs 10% Sev
Slide 29: We built a solid base to win
We built a solid base to win We transformed our business model in the US to focus on the two fastest growing segments Strong heritage of over 70 The ideal Fastest growing player in years in the healthy private platform the highly attractive retail market managed care segment to capture private #1 he
Slide 30: Creating the undisputed leader in the US
Creating the undisputed leader in the US 2021: a new strategy to change pace and capture more value than ever Miracle-Ear Advantage DIFFERENTIATE Amplifon Product Experience Win all managed Fast territory expansion EXPAND care segments Combination of MA ST ER DIST RIB UT ION E-health platform for in
Slide 31: Miracle-Ear: the leading US brand driving hearing care standards
Miracle-Ear: the leading US brand driving hearing care standards #1 Brand + amazing CX = Unmatchable customer proposition L E A D I N G I N N OVAT I O N I N C X GIANT LEAP IN MARKETING Immersive store experience Lead the TV space Proprietary audiometer technology and AI-powered New media agency, new
Slide 32: Miracle-Ear: scale Direct Retail to deliver superior proposition
Miracle-Ear: scale Direct Retail to deliver superior proposition to end-customer Accelerating revenue growth and capturing a larger share of the value chain ~200 PoS in 8 States >+40% revenue organic growth in LC H1 21 vs H1 19 ~2.5x faster than the market Legend: Direct Retail points of sale only.
Slide 33: Amplifon HHC: riding the wave of US' fastest growing segment
Amplifon HHC: riding the wave of US’ fastest growing segment ~€1 billion Medicare Advantage segment representing the largest opportunity Managed care is a key portion of the US market Medicare Advantage is the most sizeable segment ~30% ~30% ~50% ~€6.5bn Managed care Commercial >10% Medicare Advanta
Slide 34: Amplifon HHC: ready to capture the whole managed care potential
Amplifon HHC: ready to capture the whole managed care potential A unique value proposition for health plans, retailers and consumers Optimal coverage Top-notch technology Distinctive capabilities Unique Experience ~90% of national New TPA platform to elevate New distinctive capabilities Amplifon Pro
Slide 35: Australia & China: two compelling growth opportunities
Australia & China: two compelling growth opportunities Anthea Muir Executive Vice President APAC ©Amplifon S.p.A. | 35
Slide 36: Australia: a growing and highly attractive market
Australia: a growing and highly attractive market 10th largest market worldwide A prosperous economy A highly attractive market >€500m Population is ageing Penetration is increasing in 2021E 19% ~40% of total population over Penetration in 2019 up 5p.p. from 2015 ~3% 65+ by 2030 up 3p.p. from 2020 o
Slide 37: We built the ideal platform to offer the highest quality of hearing care
We built the ideal platform to offer the highest quality of hearing care Three perfectly complementary retail models to grasp all market potential Customer-centric retailer Customer-centric retailer with Full-service audiology leveraging traditional & digital proven innovative store business leverag
Slide 38: Creating another Company stronghold
Creating another Company stronghold Material growth opportunity for each retail brand Lead growth in the private market Lead growth in the private market Leverage the market leading Opportunity to increase current asset utilization customer value proposition including Potential expansion to ot
Slide 39: China: the fastest growing market with huge untapped potential
China: the fastest growing market with huge untapped potential 6th largest market worldwide Multiple structural growth drivers Hearing care retail market2 ~€650m Population is ageing in 2021E 17% >10% of total population over 65+ by 2030 CAGR 2019-23 up 5p.p. from 2020 ~4% of the global market Fast-
Slide 40: Creating the first national retailer
Creating the first national retailer Strong investments in network, brand, quality and people to win in the fastest growing global market Largest network Unique customer proposition: Best CX + #1 Brand Best people Build the largest nationwide Offer the best customer Be Top-of-Mind brand driven by Le
Slide 41: Accelerating on our network expansion
Accelerating on our network expansion A balanced mix of greenfield and inorganic growth strategy 2018 – Beijing JV July 2021 – Sound Bridge JV 2022 onwards - Full bore expansion Q3 Shanghai Greenfield entry From ~35 to ~55 PoS in Beijing, Tianjing & Hebei Sound Bridge JV Expansion in major cit
Slide 42: Our strategy in numbers
Our strategy in numbers Gabriele Galli Chief Financial Officer 42
Slide 43: Amplifon priorities for superior shareholders' returns
Amplifon priorities for superior shareholders’ returns 1. Quality revenue growth 11. Continued margin expansion 111. Steady EPS growth 1V. Strong cash generation and balance sheet ©Amplifon S.p.A. | Capital Markets Day | 13th September, 2021 43
Slide 44: Revenue growth fuelled by strong organic growth and M&A
Revenue growth fuelled by strong organic growth and M&A Organ i c grow th M&A Strong market rebound in 2021 after Covid outbreak and Acquisition strategy in selected core countries back to historical growth rates thereafter ‒ Germany & France Market share gains thanks to unique and unmatchable
Slide 45: Profitability driven by productivity and scale while strongly investing for future growth
Profitability driven by productivity and scale while strongly investing for future growth Profi tabi l i ty dri vers Investments to fuel future grow th Productivity People Key processes optimization leveraging Covid-19 learnings Attracting, developing & retaining talents • Front and back-end lab
Slide 46: Continued steady EPS growth
Continued steady EPS growth D&A Financial expenses Ta x e s Ratio on revenues in line to 2019, even < 1.5% average cost of debt with 3.5 Diversified PBT base and planned after strong investments and M&A years average maturity thanks to 2020 initiatives across the Group balancing activity (incl
Slide 47: Sustained cash flow generation and solid balance sheet
Sustained cash flow generation and solid balance sheet Ope ra ti n g C ash Flow Capex C a s h - o u t fo r M& A Continued strong cash conversion Innovation Continued sustained pace of acquisitions in selected core markets Strict management of NWC following Investments for digital transform
Slide 48: 2023 Key financial targets
2023 Key financial targets Accelerating on our ambitions while increasing investments to strengthen platform for long-term growth 2021 Guidance1 2023 Target1 from 2021 guidance SALES Amplifon2 ~1,930 €m High-single digit CAGR 2021-2023 SALES Bay Audio ~65 €m ~100 €m (not consolidated)3 EBITDA MARGIN
Slide 49: Closing remarks
Closing remarks Enrico Vita Chief Executive Officer 49
Slide 50: Amplifon 2023 and beyond
Amplifon 2023 and beyond We look forward with strong confidence and excitement as we continue our strategic journey of sustainable profitable growth ©Amplifon S.p.A. | Capital Markets Day | 13th September, 2021 50
Slide 51: Q&A Session
Q&A Session 51
Slide 52: Thank you
Thank you amplifon