Sivantos Investor Presentation H1 FY PDF Free Download

Disclaimer This document contains statements related to our future business and financial performance and future events or developments involving Sivantos that may constitute forward-looking statements. These statements may be identified by words such as expect, look forward to, anticipate intend, plan, believe, seek, estimate, will, project or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Sivantos management, of which many are beyond Sivantos control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Risks in the annual report. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Sivantos may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Sivantos neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. This document includes in IFRS not clearly defined supplemental financial measures that are or may be non-gaap financial measures. These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Sivantos net assets and financial positions or results of operations as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled financial measures may calculate them differently. All underlying margins are calculated by adjusting margins for the effects reported for the respective businesses in the relevant period. These effects are provided to assist in the analysis of the businesses results year-over-year and may vary from period to period. Underlying margins are not necessarily indicative of future performance. Other companies may calculate similar measures differently. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. - 2 -

Agenda 1 Business highlights 2 Finance highlights 3 Q&A

Executive Summary Financials Revenue growth in H1/2017 6.7% outperformed the market, with achieved unit growth (+2.1%) and ASP increase (+4.6%). Organic growth at 5.1% below past year, the revenue growth target remains at 2x market Operational and structural improvements drive increased Gross Profit (+1.1%p) and EBITDA (+0.5%p) increase Strong cash flow generation in H1 FY 2017 New Products Connected Ear campaign introducing the first Bluetooth product from Sivantos at AAA 2017 marks a further milestone in Sivantos product portfolio launch strategy. Telecare 2.0 launched successfully which further strengthens the leadership in digital business established at EUHA in 2016. Cellion (first contactless inductive charging hearing aid) launched in EUHA 2016 performing strongly, achieving premium ASP and growing higher end segment business. Silk custom product (Ready-to-wear CICs) leads to increased sales in the discreet segment (ITEs) and opens new customer accounts Strategy & Growth New management onboarded in Supply Chain, US and Japan to further strengthen business development and performance path Strong growth potential built on technology leadership and flexible business model US represents a significant opportunity for growth in wholesale business near to mid term Strong position in new channels such as big box retailers, large retail chains and optical chains Market leading position in Emerging Markets Audibene continues to grow strongly and becoming a lead generation machine - 4 -

The Connected Ear campaign based on our leading technological capabilities delivers superior solutions for audiology, connectivity and Telecare AAA Launch 2017 Industry-leading audiological benefits Unrivaled connectivity systems Revolutionary TeleCare 2.0 High Definition e2e (MI) iphone motion sensors improve classification (BT) Direct streaming and communication (BT) 3 connectivity systems: HD e2e, Bluetooth, TeleLink Relay-less remote control App Data-logging & read-out for objective remote fine tuning and monitoring (BT) 4-Band Equalizer for precise fine tuning (TeleLink) - 5 -

Telecare is growing strongly Telecare Market Development Registrations in US & Germany Signia is the first mover in Telecare and is rapidly 3 024 penetrating the market with a focus on early adopters 32 3-Oct 590 7-Nov 1 666 16-Jan 2 460 27-Mar 22-May 413% Registrations have been continuously rising over the last few months in US and Germany myhearing app with new features and functionalities made available in the app stores in May. This upgrade is a big step forward with advanced features in remote management, ease of configuration and personalization Once audiologists use Telecare, they become heavy users with their customer base - 6 -

Connectivity Audiology TeleCare Sensors Our superior products combine our leading position in individual technology pillars (CATS) Sivantos Leading Product and Platform Strategy Service Connected Ear We have strong offerings within the individual technology pillars Connected ear campaign combines our key technology offerings to deliver a powerful and unified value proposition - 7 -

Our flexible business models and geographical footprint put us in a unique position to capture substantial business opportunities in the future 1 Traditional Business Strong traditional business in Europe and US ; growth and catch-up potential in US Broad set of technologies, for e.g. Bluetooth connectivity in the upper segment and Soundlink in the mid to lower segment 2 New Business Growing business with new channels such as large retailers like Costco and Optical chains like Specsavers Incubation of new next generation business streams like Telecare 3 Emerging Markets Market leading position in Emerging Markets like India, China (> 50% market share) and ASEAN Developing platforms for future growth based on Telecare 4 New Channels Leading online retail channel in the industry, facilitating low cost lead generation to the traditional business Established presence in Germany and growing in key markets like US - 8 -

1 Traditional Business Significant opportunity to expand market share in the US and develop positions in Europe US provides a significant opportunity for growth in the near-mid term VA performance not up to the mark in the last 2 years; Cellion presents a huge opportunity to gain lost ground Continued growth in Costco supports favorable market share development North America USA Canada #3 Hearing Aids Player Substantial growth potential in US #5 Hearing Aids Player Strong traditional business with leading positions in Europe Strong relationships with key accounts like Amplifon, optical chains in France and Specsavers (UK) driving market share Ageing population trends point to overall growth in the market in this region Europe Germany France UK Italy Denmark Netherlands #1 Hearing Aids Player #4 Hearing Aids Player #4 Hearing Aids Player #1 Hearing Aids Player #3 Hearing Aids Player #3 Hearing Aids Player Source : Selected Markets, Sivantos Research and Estimates Sivantos Comp 1 Comp 2-9 -

2 New Business Market expansion opportunities with big box retailers, large chains and optical chains to fuel growth in coming years Sivantos footprint in Big Box retailers and optical store chains across the world Big Box retailers, large retail chains and optical chains represent a growing channel for Hearing Aids globally We have solid relationships with all these players and have a very strong position in this channel. For e.g. Costco business developing positively in the US We have a world wide growing relationship with Amplifon across geographies We have strong relationships with the Optical chains including Specsavers in UK and Australia Business relationships not based on low pricing approach but on complete competitive offering - 10 -

3 Emerging Markets Sivantos with # 1 position APAC is expected to show the highest growth rate in the hearing aids market Sivantos is consistently ranked among Top 2 players by revenue in Asia Market trends a Growing geriatric population base in Asia Competitive positioning # 2 Hearing Aids Player b c Increasing prevalence of mild to moderate hearing loss Increasing awareness coupled with growing disposable income and middle class # 1 Hearing Aids Player # 1 Hearing Aids Player # 2 Hearing Aids Player # 1 Hearing Aids Player # 1 Hearing Aids Player # 2 Hearing Aids Player # 1 Hearing Aids Player d Rising government funding to improve healthcare infrastructure & services Japan China India Korea Singapore Malaysia Taiwan Thailand Sivantos Comp 1 Comp 2 Source : Selected Markets, Sivantos Research - 11 -

4 New Channels - audibene Strong lead generation drives business growth Audibene Lead Generation Leads in 000s Yearly Cumulative Cumulative customer database Strong growth in Leads generation YoY +168% 546 Strong performance especially in core countries Germany and US 76 2014 249 2015 2016 2017 Business model rolled out to 9 countries 110 160 25% 177 215 Significant value from customer database developed from cumulative leads FY 16 Q2 FY 16 Q3 FY 16 Q4 FY 17 Q1-12 -

Conclusions Strong business perspective for future growth and market share gain 1 We have launched Connected Ear campaign which brings together clear distinguishing features in Connectivity, Audiology and Telecare aligned with our product strategy 2 Our leading product and platform strategy in Connectivity, Audiology and Telecare will enable us to play across all segments, placing us in a top position for the future 3 Our strong and growing position in big box retailers, large retail chains and optical chains enables us to capitalize on this fast growing channel 4 Our market leading presence in emerging markets provides us enormous growth opportunities arising out of the growing middle class in these countries 5 Our online channel is growing strongly in our core markets and is complimentary to our traditional business - 13 -

Agenda 1 Business highlights 2 Finance highlights 3 Q&A - 14 -

H1 Results Profitability improvements driven by operational excellence initiatives despite lower growth level and continued investments into structures Organic Growth 7.6% H1 2016 Adj. Gross Profit Adj. EBITDA 62.7% H1 2016 22.9% H1 2016 5.1% H1 2017 63.8% H1 2017 23.4% H1 2017 Moderate growth in H1 but above market and accelerating in second half of FY 2017 due to product launch calendar Current growth affected by active portfolio management focusing on higher value products and attractive market segments for healthy future business growth (e.g. Exit low-tech / low-end business) Total ASP growth of 4.6% YoY Increase in Gross Profit driven by operational excellence and structural improvement in global production (eg. ITE) and logistic network (eg. Europe) Fundamental changes in the way business is conceptually done and operationally executed EBITDA margin improvement driven by revenue growth and cost improvement in all parts of the value chain Still substantial investments and costs in areas (eg IT, R&D) supporting mid-to-long term competitive advantage Building of a strong operational business model and an efficient execution machine is well on track - 15 -

H1 in Quarters Accelerated growth and profitability improvements in the course of H1 Organic Growth 8.1% 3.7% Q1 2016 2017 7.2% Q2 6.5% Q1 growth influenced by strong September (Q4/2016) Accelerated growth since November in Q1 and Q2 Active portfolio management being done Adj. Gross Margin 63.6% 64.0% 63.0% 62.3% Q1 Q2 Gross profit improvement over quarters resulting from operational excellence and diligent cost management initiatives delivering increasing benefits with higher level of implementation during the year Adj. EBITDA 24.2% 23.9% 22.8% 21.6% Q1 Q2 Focus on healthy growth, structural improvements and cost optimization Higher effectiveness of organisation and qualitative growth show positive profitability trend - 16 -

Positive financial performance since 2016 Key financial highlights 1 ( m) H1 2016 H1 2017 Revenue 449.1 479.1 % nominal growth 13.0% 6.7% % organic growth 5 7.6% 5.1% Gross profit 281.4 305.7 Gross margin 62.7% 63.8% OPEX 193.1 210.2 OPEX % 43% 44% Adj. EBITDA 4 103.0 112.0 Adj. EBITDA margin 22.9% 23.4% Adj. EBITA 94.6 103.4 Adj. EBITA margin 21.1% 21.6% Total Leverage 2 6.1x 5.1x Priority Leverage 3 4.7x 3.9x Cash & Cash Equivalents 24.0 54.7 Unutilized RCF 60.0 70.0 Available Liquidity 84.0 124.7 H1 2017 vs H1 2016 Improved cost structure with moderate revenue growth leading to increased profitability in H1 2017 Primax platform continues to accelerate volume growth and improvement to the average selling price R&D to invest into future technologies, platforms and business models in order to further strengthen the competitive advantage currently experienced with primax Adjusted EBITDA margin is +0.5%p higher against H1 2016 driven by increased average selling price and lower costs Strong Cash Flow generation and higher EBITDA lead to reduced financial leverage 1. Adjusted for normalization items and PPA 2. Total Net Debt / LTM Adj. EBITDA 3. Priority Net Debt / LTM Adj.EBITDA 4. Adj. EBITDA derived from EBIT plus Depreciation, Amortization and Normalization 5. Excludes FX and revenue of acquisitions < 12 months. Baseline revenue for acquisitions is computed as average revenue of last twelve months prior to acquisition. - 17 -

Continuous attractive cash generation Free Cash Flow (FCF) H1/2016 and H1/2017 45.0 89.4 FCF 1 ( m) 57.4 99.6 Comments Continued strong Free Cash Flow demonstrates attractive industry model and investment into future business Change in Trade Working Capital is driven by seasonality with ramp up of activities for spring -18.1-19.2-26.3-23.0 Capex is slightly above last year mainly driven by product road map Since carve-out substantial investments in future business H1 2016 H1 2017 EBITDA Reported Net CAPEX Change in working capital 1. FCF = EBITDA +/- Change in trade working capital +/- Change in current Assets & current Liabilities (excluding taxes & hedging instruments) less Net Capex - 18 -

Implementation of restructuring efforts main driver for normalisations Breakdown of H1 2017 Normalizations Normalizations by category m YTD Mar 2017 EBITDA 1 99.6 1. Personnel and other restructuring costs 9.3 2. ERP replacement 1.0 3. audibene new company set-up costs 1.2 4. New Brand launch costs 0.4 5. Others 0.7 Total Normalizations 12.5 Adj. EBITDA 1 112.0 Comments 1. Personnel and other restructuring costs Employee severance payments and restructuring costs due to changes in organization and closure of manufacturing sites in smaller locations 2. ERP implementation ERP implementation cost incurred 3. audibene new company set-up costs Set-up costs for the new companies including consultancy 4. New Brand launch Costs related to launch of new brand Signia 5. Others Costs for transformation projects including consultancy Note 1) Unaudited key figures of Auris Luxembourg II S.A. for fiscal year 2017. - 19 -

De-leveraging taking place without jeopardizing operational business development Financial Leverage development Priority leverage and net leverage reduced by 0.8x and 1.0x respectively despite TLB increase in Jan 2016 due to final Siemens buyout RCF drawing completely paid down and has been un-utilised since H2 2016 Due to strong operational and financial performance, able to reprice in Feb 2017 Comments Continues to deliver profitability with stable net debt Buyback of Siemens Preference Shares in Jan 16 Repricing in Feb 2017 - reducing EUR drawings by 75bps and USD drawings by 25 bps EUR 408m term loan: 3.5% margin (0% floor) USD 588m term loan: 3.0% margin (1% floor) Ratings maintained at B1/B+ with Moody s and S&P - 20 -

Conclusions on Financials Revenue growth in the first half of the year (H1 FY 2017) has been modest, however still outperforming the market. Active portfolio management focusing on attractive product and customer segments, being done. New product launches and opportunities with some key customers should support the growth development in H2 Gross profit and EBITDA margin improvement driven by operational excellence initiatives and structural changes ensure a competitive cost position on a sustainable basis. Further changes being implemented Normalizations in FY 2017 driven by restructuring charges to be further reduced in next FY Continued strong cashflow position shows fair picture of financial performance De-leveraging has taken place without jeopardizing structural investments into the business - 21 -

Sivantos Investor Presentation H1 FY2017