Sonova Holding Ag · SIX:SOON
Sonova — FY2010/11 Earnings Presentation
21 slides from Sonova's earnings presentation, May 24, 2011
Slide 1: Full-Year 2010/11 Results – Analyst Conference
THE HEARING CARE COMPANY FULL-YEAR 2010/11 RESULTS –Analyst Conference Zurich, 24 May 2011 Disclaimer This presentation may contain forward-looking statements including, but not limited to, projections of future performance of products, financial conditions, results of operations and cash flows. The
Slide 2: Agenda
Agenda Highlights 2010/11 Alexander Zschokke Business Review Alexander Zschokke Financial Review Paul Thompson Positioning / Strategy Alexander Zschokke Outlook Paul Thompson May 24, 2011 3 01. HIGHLIGHTS 2
Slide 3: Highlights 2010/11
Highlights 2010/11 – Sales record of CHF 1,617 million Total sales growth of +13.3% in lc Negative currency effect of 5.6% – All regions contributing to sales growth – Solid core business hearing instruments Growth of 10.1% in lc EBITA margin of 24.0% – Lower Group EBITA margin of 20.2% – Un
Slide 4: The hearing solutions market: Market trends
The hearing solutions market May 24, 2011 7 Market trends Market fundamentals – Aging population and ongoing population growth – More people with hearing impairment due to noise pollution – Increasingly young age for hearing damage – Sustained margins Market growth – Low penetration rates – 16% of p
Slide 5: Sonova offers comprehensive product portfolio
Sonova offers comprehensive product portfolio All grades of hearing loss targeted - organized into two complementary segments Phonak is the strongest brand in the industry Sonova-Portfolio Sonova-Solutions May 24, 2011 9 Hearing Instruments Segment Sonova’s market position – Market leader in hea
Slide 6: Hearing Instruments Segment: Transition to Spice completed
Hearing Instruments Segment: Transition to Spice completed Spice technology platform – Conversion Full-portfolio transitioned to Spice in 7 months Excellent conversion rates in US after slow start and delay of 2 months Swift conversion in France Launch in Germany with insufficient support
Slide 7: Hearing Implants: Market overview
Hearing Implants: Market overview Substantial growth expected – 240,000 cochlear devices implanted worldwide to date – Cost of a cochlear implant treatment USD 100,000 – 125,000 – Global market growth estimated at 10-15% p.a. in units Challenges – Cochlear implant centers and capacities to perform t
Slide 8: Hearing Implants: The launch of Neptune
Hearing Implants: The launch of Neptune (pending regulatory submission) Neptune – a new Advanced bionic product – The World’s first swimmable processor Waterproof: certified IP68 Bath, swim, shower – Discreet, freestyle, design Nothing worn on the ear Great retention for process & HP – Easy
Slide 9: Full Year 2010/11: Financial Highlights
Full Year 2010/11: Financial Highlights – Restatement of 2009/10 figures due to finalization of the acquisition accounting of AB – New sales record on both Group level and in hearing instrument segment – Negative FX impact of CHF 84 million on sales and CHF 35 million on EBITA – Record gross profit
Slide 10: Solid growth in key markets in local currencies
Full Year 2010/11: Solid growth in key markets in local currencies in CHF million 2010/11 2009/10 Sales in % Growth in lc Sales in % EMEA (excl. Switzerland) 597 37% 12.8% 583 39% Switzerland 41 3% (9.1%) 45 3% USA 596 37% 14.3% 547 36% Americas (excl. USA) 247 15% 24.3% 196 13% Asia/Pacific 136 8%
Slide 11: Growth of 10.1% in lc in hearing instruments segment
Full Year 2010/11: Growth of 10.1% in lc in hearing instruments segment Sales development in millions of CHF +63 1’624 -78 +86 +4.3% -5.3% +5.8% 1’546 1’475 +149 +71 +10.1% +4.8% Sales Internal External Sales FX effect Sales 09/10 growth growth 10/11 10/11 const. FX Sound performance of core busines
Slide 12: Cost increase anticipates next growth steps
Full Year 2010/11: Cost increase anticipates next growth steps Change Acquisition in CHF million FY 10/11 FY09/10 Change in CHF in lc related in lc R&D 108 87 +23.8 % +25.0% +20.0% in % of sales 6.7% 5.8% Sales & Marketing 499 403 +23.8% +29.3% +16.5% in % of sales 30.8% 26.8% General & Admin 185 14
Slide 13: Financial result and income taxes
Full Year 2010/11: Financial result and income taxes in CHF million 2010/11 2009/10 Comments EBITA 327 420 CHF 8.1m one-time costs Goodwill impairment AB Amortization/Impairment -56 -169 R&D costs PAI Operating profit (EBIT) 271 251 Financial result, net -14 -4 Share of gain/loss in associates/JVs +
Slide 14: Sound financial position
Full Year 2010/11: Sound financial position in CHF million 31.3.2011 31.3.20101) Net working capital 158 144 Days sales outstanding (DSO) 78 75 Days inventory outstanding (DIO) 154 153 Operating capital employed 441 427 (excluding acquisition-related intangible assets) Capital employed 1,456 1,389 N
Slide 15: Acceleration of negative FX impact; Unchanged distribution
Full Year 2010/11: Acceleration of negative FX impact Development of USD and EUR against CHF April 1, 2009– March 31, 2011 Ø 2010/11: 1.014 Ø 2010/11: 1.339 Negative impact in H2 of 2010/11 above 8% of reported sales! May 24, 2011 29 Full Year 2010/11: Unchanged distribution Proposed distribution
Slide 16: Positioning / Strategy
04. POSITIONING / STRATEGY Positioning and Strategy: Creating the global hearing care company HI CS HI CS HI CS RB KMUB HI DP DP Impl. Hearing Instruments Hearing Instruments Hearing Instruments Hearing Instruments Communication Systems Communication Systems Communication Systems Dis
Slide 17: Our business; Serving an attractive market
Positioning and Strategy: Our business Serving an attractive market Hearing Hearing Instruments Implants Advanced Bionics Communication Phonak systems & PAI Unitron The global hearing care company May 24, 2011 33 Positioning and Strategy: Serving an attractive market Penetration rate segmented by he
Slide 18: Consolidating the market leading position; Our strategy
Positioning and Strategy: Consolidating the market leading position Global Sonova‘s key strenghts: Sonova Market leader Broadest product portfolio Footprint Global network High innovation rate Regional Basic Products Comprehensive Portfolio Product Offering Source: market data, Sonova estimates
Slide 19: Addressing key topics in 2011/12
Positioning and Strategy: Adressing key topics in 2011/12 Topic Initiatives AB temporary recall Complete submission and receive FDA approval; resume selling in U.S.A. AB Neptune product launch Complete launch of new off-the-ear, water-proof power supply AB next generation product Continue developmen
Slide 20: Outlook: FX impact and Guidance 2011/12
Outlook: FX impact on sales and margins likely to continue Ø 2010/11: 1.339 Ø 2010/11: 1.014 Rate Sales EBITA USD/CHF +/- 5% +/- CHF 30 million +/- CHF 9 million EUR/CHF +/- 5%impact on sales Negative +/- CHF 25 million expected on margins +/- CHF 15 million May 24, 2011 39 Outlook: Guidance 2011/12
Slide 21: Questions & Answers – Thank You
05. QUESTIONS & ANSWERS THANK YOU. 21