William Demant Holding A/S

Transcription

1 William Demant Holding A/S Investor Presentation ti September 2009

2 Agenda Highlights first half 2009 Hearing aid market status Update on the Group s Hearing Aid business Product update Other businesses Financials Outlook for 2009 Q&A 2

3 Highlights first half 2009 Investor Presentation September % increase in EBIT versus low levels in second half of 2008, or EBIT margin expansion of more than 3 percentage points. Revenues of DKK 2,754 million equivalent to 2% y-o-y ygrowth in local currencies negatively impacted by the decline in NHS demand. 2% unit increase in the commercial sale of Group-manufactured hearing aids, or slightly above market growth. Wholesale ASP slightly above the level in first half of % outperformance of the hearing aid market in 2009 is still expected double-digit di it increase in net profits anticipated i t for the full year. Important milestones achieved in August 2009: Oticon and Bernafon have both been accepted as new VA suppliers. Oticon Medical has received final FDA clearance: bone-anchored hearing solutions to be released for sale in late Q as planned. 3

4 Hearing aid market status Total unit market growth in first half of 2009 is estimated t at 1%. US unit market growth of 5%, however just 1% excluding VA. In the rest of the developed e world, the growth pattern matches that of the private US market, however with significant variations: Stabilisation in major markets like Germany and France, however at modest growth rates. Italian market declining slightly after decent growth in UK continues to decline both NHS and private market. Flat development in Japan. Neutral or slightly negative contribution from prices and mixes. Consequently, the global market has shown flat y-o-y development in first half of 2009 measured in value, or a small increase compared with second half of First-half development confirms that the market has entered a phase of stabilisation, following the gradual deterioration of market conditions experienced in most of

5 Hearing Aids Accounted for 89% of Group revenues. 3% revenue growth in local currencies. 2% commercial unit growth in Group-manufactured hearing aids. However, total volume decline of 3% including the NHS. Wholesale ASP slightly above the level in first half of Major growth drivers from Oticon: Dual, Vigo and Hit. Major growth drivers from Bernafon: Avanti, Move and Win. Corporate retail activities have significantly outgrown the underlying markets. 5

6 Product update: Oticon ConnectLine Oticon ConnectLine introduced in spring 2009 as the brand umbrella for all connectivity solutions. Successful launch phase so far, demand has exceeded expectations. Two applications added to existing mobile phone option: ConnectLine TV streams sound to hearing instruments in premium quality ultra-fast transmission prevents echo from acoustic sound from TV speakers. ConnectLine Landline provides incoming call notification in hearing instruments. Until now, focus has been on selected markets and customers with a view to collecting and processing feedback. Significant global push is imminent: we now target a much broader customer base in all major markets. New wireless options are expected to significantly increase the demand for those Oticon hearing aids that can stream sound directly into the hearing aids. 6

7 Product update: expanding the offering Oticon Hit: important addition to the lower mid-priced segment; RISE sound quality made affordable ; has already now demonstrated its potential of becoming a true volume driver. Oticon Dual: lots of interest among dispensers and end-users; is a major growth driver for Oticon, but is in fierce competition with Epoq. Oticon Epoq: is holding up really well despite having been on the market for over two years; exceeding our ambitions in first half of Power BTE: important new addition to the portfolio; for severe hearing losses up to 110 db HL; available in all versions of Epoq, Vigo and Hit. BTE 13-battery option: compact BTE with 13 battery; available in all versions of Epoq, Vigo and Hit; significantly expands the addressable market in many countries. Bernafon: Vérité, a wireless RITE instrument in high-end segment; launched at AAA; introduction has progressed very satisfactorily. 7

8 Oticon s updated RISE portfolio Other active Oticon products include: Sumo (Super Power), Delta (design), Tego Pro (mid), Tego (mid/low), Go Pro (mid-low) and Go (low)

9 Bernafon s product portfolio VÉRITÉ BRITE 502 BRITE 50X BRITE 503 WIN AVANTI PRIO MOVE ICOS FLAIR NEO XTREME Lifestyle/RITE models Hearing aid families Performance category

10 Product update: Oticon Medical Our ambition to establish Oticon Medical as a strong new player on the market for bone-anchored hearing solutions is progressing well. Final FDA clearance received in August 2009, including: The use of computer-based fitting software Sophisticated signal processing (directionality, noise management) Products to be released for sale in late Q Based on advanced signal processing, extremely high quality of products, sales efforts and services, Oticon Medical intends to price its products above the solutions already on the market. 10

11 Other business areas Investor Presentation September 2009 Diagnostic Instruments 8% revenue increase in local currencies. Has maintained its position as the world s leading supplier. Growth driven by an increase in sales of screening equipment for newborn babies and the acquisition of Amplivox. Titan, the recently launched middle-ear analyser, has been favourably received by the market. Business area accounted for 7% of Group revenues. Personal Communication Consists of Phonic Ear and the headset joint venture, Sennheiser Communications (SeCom). Realised negative revenue growth of 13% in local currencies. The decline in revenues can be attributed by tough market conditions; however, we still expect the business area to gain market share. Business area accounted for 4% of Group revenues. 11

12 7% 4% Hearing Aids Investor Presentation September 2009 Net revenue by business area 89% DKK million H2 2008* Diagnostic Instruments Personal Communication H1 2009* H1 2008* Change in local currency (y-o-y) Hearing Aids 2,366 2,461 2,395 3% Diagnostic Instruments % Personal Communication % Total 2,669 2,754 2,690 2% * Computed at H exchange rates 12

13 Net revenue by region 7% 4% 7% Europe North America 46% Pacific Asia 36% Other Investor Presentation September 2009 DKK million H1 2009* H1 2008* Change in local l currency Europe 1,276 1,278 0% North America % Pacific Rim % Asia % Other countries % Total 2,754 2,690 2% * Computed at H exchange rates 13

14 Income statement H DKK million H H H Change y-o-y Change in local curr. y-o-y Revenue Gross profit Gross profit ratio Research and development costs Distribution costs Administrative expenses 2,685 1, % ,754 1, % ,689 1, % Income from associated companies % 4% 8% 5% 7% 2% 3% 8% 5% 7% Operating profit (EBIT) % -3% Profit margin 17.3% 20.5% 21.4% Net profit for the year % 0% Earnings per share (EPS), DKK % 1% 14

15 DKK million H Balance sheet H FY 2008 ASSETS LIABILITIES Intangible assets Equity Property, plant & equipment Investor Presentation September 2009 H H FY Long-term payables Other assets Short-term payables 2,625 2,757 2,674 Long-term assets 2,001 1,647 1,801 Total liabilities 4,252 3,882 3,926 Inventories Receivables es etc. 1,297 1,299 1,233 Cash Short-term term assets 2, , ,125 Total assets 4,252 3,882 3,926 15

16 Cash flows Investor Presentation September 2009 DKK million H H FY 2008 Profit for the year CFFO CFFI, excl. acquisitions and special invest Free cash flows, excl. special investments Acquisitions Buy-back of shares Other financing activities Net effect for the year

17 Outlook for 2009 Flat volume development in the hearing aid market is still anticipated however, now with conservative optimism. Prices and mixes to contribute neutrally or negatively to market growth, i.e. total development in value is expected to be flattish. The Group s wholesale of hearing aids is still expected to outperform market development by 2-4% in Diagnostic Instruments to be impacted negatively by the deterioration of market conditions experienced in first half of 2009 however, we still expect to gain market share. Personal Communication to be negatively impacted by continued weak markets. Revenues and EBIT in second half of 2009 expected to match the levels delivered in first half of Neutral full-year FOREX impact on revenues and EBIT. Finance costs (net) in second half of 2009 at the same level as in first half of 2009 or slightly above. Double-digit growth rate in net result anticipated for the full year. 17

18 William Demant Holding A/S Q&A 18