Amplifon Spa · MIL:AMP
Amplifon Spa — Investor Presentation (May 2021)
36 slides from Amplifon Spa's investor presentation, May 2021
Slide 1: Presentation to Investors May 2021
Presentation to Investors May 2021 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 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 a= US: the acquisition of PIC Hearing FY 2020 & QI 2021 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 €1.55bn revenues in 2020; €1.73bn in 2019 26 countries, 5 continents #1 or #2 in most markets >1,000 points of sale >17000 people
Slide 5: 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 US: the acquisition of PIC Hearing FY 2020 & QI 2021 Results amplifon
Slide 6: 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 growing fast but still limited in value Fragmented retail market with few internat
Slide 7: Long-term sustained growth driven by secular trends
Long-term sustained growth driven by secular trends Demographics and penetration as growth drivers * Global hearing care retail market! is estimated at around EUR 13.5bn in 2020, due to the Covid-I9 outbreak = A market rebound is expected in 2021 and back to historical growth in the medium and long-
Slide 8: Fragmented global retail market
Fragmented global retail market Amplifon is leading consolidation 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
Slide 9: Contents
Contents Amplifon today An attractive industry with long-term growth ahead Zs Strotegy Reshaping the hearing care retail around the customer Our plan in Spain: GAES integration China: our first Joint Venture US: the acquisition of PIC Hearing FY 2020 & QI 2021 Results amplifon
Slide 10: Strategic Pillars
Strategic Pillars Simple and focused strategy We will focus NY on core Markets We will lead \Z in Customer Experience innovation We will build \7 an effective & talented Organization Growth potential further accelerated by the GAES acquisition © Amplifon S.p.A. Presentation to Investors
Slide 11: Contents
Contents Amplifon today An attractive industry with long-term growth ahead Strategy DT! Reshaping the hearing care retail around the customer Our plan in Spain: GAES integration China: our first Joint Venture US: the acquisition of PJC Hearing FY 2020 & QI 2021 Results amplifon
Slide 12: Reshaping the hearing care retail around the customer
Reshaping the hearing care retail around the customer Accelerating on key 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 13: 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 14: 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 15: Amplifon multichannel ecosystem: new services across all touchpoints
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 16: 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 17: Contents
Contents —————= Amplifon today = An attractive industry with long-term growth ahead eee Strategic Update eee Reshaping the hearing care retail around the customer ££ Our plan in Soain: GAES integration China: our first Joint Venture US: the acquisition of PIC Hearing FY 2020 & QI 2021 Results amplif
Slide 18: 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 19: Spain: an attractive and high-potential market
Spain: an attractive and high-potential market Italy vs. Spain: market data Market size 2019, 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. 3 Presentation to Investors I
Slide 20: Contents
Contents Amplifon today An attractive industry with long-term growth ahead Strategic Update Reshaping the hearing care retail around the customer Our plan in Spain: GAES integration es Ching: our first Joint Venture US: the acquisition of PIC Hearing FY 2020 & QI 2021 Results amplifon
Slide 21: ▪ ▪ ▪ ▪ 12% 14% ▪ ~ % ▪ ▪ 88% 86% ▪
▪ ▪ ▪ ▪ 12% 14% ▪ ~ % ▪ ▪ 88% 86% ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 22: Contents
Contents Amplifon today An attractive industry with long-term growth ahead Strategic Update Reshaping the hearing care retail around the customer Our plan in Spain: GAES integration China: our first Joint Venture i! YS: the acquisition of PIC Hearing FY 2020 & QI 2021 Results amplifon
Slide 23: Acquisition of PJC Hearing: an exciting opportunity in the US
Acquisition of PJC Hearing: an exciting opportunity to further strengthen Amplifon’s position in the US Expanding our direct retail footprint to drive growth and value to the entire network Deal overview = Cash-out of ~USD 33 million (~€27 million) on a cash & debt free basis = PJC’s leadership part
Slide 24: Contents
Contents Amplifon today An attractive industry with long-term growth ahead eee Strategic Update eee Reshaping the hearing care retail around the customer Our plan in Spain: GAES integration —————— = China: our first Joint Venture a= US: the acquisition of PIC Hearing es FY 2020 & Qi 2021 Results amp
Slide 25: FY 2020: Strong recovery and excellent structural profitability improvement
FY 2020: Strong recovery and excellent structural profitability improvement Decisive reaction to the unprecedent Covid-19 pandemic further strengthening Amplifon’s unique positioning = Strong finish of the year despite new lockdown measures across markets and extremely challenging comparison basis R
Slide 26: ▪ ▪ ▪ ▪ ▪ 1000.0 4.00 ▪ 800.0 3.00 600.0 ▪ 2.00 400.0
▪ ▪ ▪ ▪ ▪ 1000.0 4.00 ▪ 800.0 3.00 600.0 ▪ 2.00 400.0 ▪ 1.00 200.0 0.0 0.00
Slide 27: Q1 2021: Excellent quarter driven by double-digit revenue growth
QI 2021: Excellent quarter driven by double-digit revenue growth and outstanding profitability expansion vs both 2020 and 2019 Very strong start of the year fostered by over +8% organic growth vs QI 2019 = Outstanding top-line growth, well above market At +22.9% at constant FX vs QI 2020, with organ
Slide 28: Q1 2021 Financial highlights
QI 2021 Financial highlights A truly outstanding quarter with top-line performance significantly above QI 2019 and strong profitability step-up Data in €m Qi2021 QI 2020 Ql 2019 A 21/20 A21/19 REVENUES, 440.9 363.5 392.0 +21.3% 412.5% Organic growth 419.2% +8.4% Acquisitions +3.7% 45.7% FX 1.6% 1.6%
Slide 29: Financial results by Region: EMEA
Financial results by Region EMEA: excellent top-line performance, fostered by strong organic growth and outstanding profitability despite ongoing restrictive measures Data in €m Qi2021 QI 2020 Ql 2019 A 21/20 A21/19 REVENUES SIL 258.3 283.8 +20.5% +9.6% Organic growth +20.0% +6.8% Acquisitions +0.7%
Slide 30: Financial results by Region: Americas
Financial results by Region AMERICAS: excellent revenue growth, boosted by double-digit organic growth and by PJC Hearing recent acquisition, though affected by FX headwind Data in €m Qi2021 = QI2020 Ql 2019 A21/20 A21/19 REVENUES 77.2 64.4 63. 419.9% 422.3% Organic growth 415.5% +17.0% Acquisitions
Slide 31: Financial results by Region: APAC
Financial results by Region APAC: excellent start of the year across all markets Data in €m Qi2021 QI 2020 Ql 2019 A 21/20 A21/19 REVENUES 52.6 40.9 44.4 +28.9% 418.5% Organic growth +19.6% +8.3% Acquisitions 431% +9.6% FX +6.2% +0.6% EBITDA Rec. 15.9 10.1 14.0 +57.2% 413.8% Margin % 30.2% 24.7% 31.
Slide 32: Q1 2021 Financial results
QI 2021! Financial results Delivering excellent results in all P&L line items both vs QI 2020 and QI 2019, delivering a Net profit recurring up ~5x vs QI 2020 and +33.I% vs QI 2019 Data in €m Ql 2021 Qi 2020 Ql 2019 A Rec A Rec (unless specified) Recurring Reported Recurring Reported 21/20 21/19 REV
Slide 33: Q1 2021 Financial results: cash generation
QI 2021! Financial results Strong cash generation despite seasonality, leading to a reduction in NFP also after strong M&A cash-out & share buy-back Data in €m Ql 202!! QI 20207 A Operating cash flow before repayment of lease liabilities 90.6 80.8 9.9 Repayment of lease liabilities (23.0) (20.1) (2.
Slide 34: Q1 2021 Financial results: NFP and leverage
QI 2021! Financial results NFP further reducing and leverage at 1.44x Data in €m 30/03/2021 31/12/2020 Cash (557.7) (545.0) Short-term debt 121.2 754 Medium/long-term debt 1,061.9 1,103.3 Net financial debt 625.4 633.7 Lease liabilities 4278 422.8 Total financial debt & lease liabilities 1,053.2 1,0
Slide 35: 2021 Outlook
2021 Outlook Entering 2021 with sound optimism = Overall improving hearing care retail market throughout 2021 = Despite the still ongoing restrictive measures across different countries and the hearing care market still impacted by Covid-19, we expect the market to gradually normalize throughout the
Slide 36: Investor Relations and Sustainability Contacts
Investor Relations and Sustainability Contacts FRANCESCA RAMBAUDI AMANDA HART GIRALDI FRANCESCO ROMEO. OLGA LEPECHKINA Director Investor Relations Manager Sustainability Manager Assistant Tel: +39 02 5747 2261 Tel: +39 O2 5747 2317 Tel: +39 344 2723 416 Tel: +39 02 5747 2542 francesca,rambaudi@ampli