Financial Data and Key Metrics - Group sales reached CHF 1.8 billion, representing a 5.9% increase in local currencies [36] - Adjusted EBITA reached CHF 325 million at a margin of 17.7%, down 3.7% in local currency [36] - EPS came in at CHF 3.74, down 9.6% in local currency and 13.9% in Swiss francs [37] - Operating free cash flow declined by 30.7% to CHF 104 million, mainly due to profit development and elevated inventory levels [38] - Gross profit margin improved to 71.9%, up 50 basis points in local currency [36] Business Line Performance - Hearing Instruments grew by 7% despite late-cycle ASP pressure [40] - Cochlear Implants showed strong momentum with 12.5% growth, driven by system sales up 18.2% [19][40] - Audiological Care saw 1.1% organic growth, impacted by muted European markets [16] - Consumer Hearing declined by 1.7%, in line with market trends [19] Market Performance - The U.S. market showed strong growth, while Europe, particularly Germany and France, faced headwinds [127][128] - China's market declined by over 20% year-over-year due to economic challenges [130] - The global hearing aid market is expected to grow at 4% to 6% over the medium term [118] Strategy and Industry Competition - The company confirmed its full-year guidance, expecting strong momentum from the Infinio and Sphere product launches [11][55] - The new platforms, Infinio and Sphere, have received positive customer feedback, with Sphere contributing to higher ASPs [24][25] - The company is focusing on cost-tightening measures, particularly in Audiological Care and G&A, to improve profitability [12][59] Management Commentary on Operating Environment and Future Outlook - Management noted challenging market conditions, particularly in Europe and China, but remains confident in achieving guidance [11][130] - The company expects a strong second half driven by the new product launches and improved lead generation in Audiological Care [55][56] - The Swiss franc remains a headwind, impacting both top-line and bottom-line results [58] Other Important Information - The company incurred CHF 14 million in restructuring costs, including setting up a new operations facility in Mexico [44] - R&D expenses remained stable, reflecting the conclusion of parallel platform development for Infinio and Sphere [43] - The net debt-to-EBITDA ratio stood at 1.8x, with expectations to reduce it to the target range of 1.0x to 1.5x by year-end [169] Q&A Session Summary Question: Share loss in Audiological Care and lead generation costs [62] - The share loss in Audiological Care is partly due to a Europe-centric mix and delayed repurchases ahead of the new product launch [63][64] - The company expects to stabilize its share position in the second half, supported by improved lead generation and higher ASPs from new products [65] Question: Contribution from Costco and margin ramp in the second half [62] - The contribution from Costco is limited in the current year, with potential for meaningful impact next year if the pilot is successful [66] - The margin ramp in the second half is driven by a shift from negative to positive ASPs and higher volume growth, particularly from new product launches [68][69] Question: Price premium for Infinio in VA and Managed Care channels [73] - The company is in discussions with VA and Managed Care providers for price premiums on Infinio, with expectations of meaningful increases [77][78] - The percentage of Managed Care volume identified as premium varies by contract, but the company aims to secure higher prices for premium products [79] Question: Shipment constraints and failure rates for Infinio [84] - Shipment constraints were resolved by the end of September, with strong on-time delivery performance since then [85] - The failure rate for Infinio and Sphere is expected to improve compared to previous platforms, with no significant concerns reported [87] Question: Market recovery and growth differential between Europe and the U.S. [126] - The slower growth in Europe is attributed to specific challenges in Germany and France, including regulatory changes and low consumer confidence [127][128] - The U.S. market continues to show solid growth, driven by strong demand for new products and improved lead generation [127] Question: Returns rate and repurchase rate compared to Marvel launch [138] - The returns rate for Infinio and Sphere is better than previous launches, indicating a good first-time fit and customer satisfaction [141] - The repurchase rate of 70% is slightly lower than the Marvel launch, but the company is not concerned due to strong customer feedback and higher initial volumes [142] Question: Sell-in vs. sell-out dynamics in the U.S. market [139] - The company focused on delivering to independents in the first wave, with minimal inventory buildup due to high prices and immediate fitting appointments [144] Question: Share gains in the U.S. and conservative guidance assumptions [108] - The 5% share gain in the U.S. is based on total market data excluding Audiological Care, with the company not planning for sustained share gains over 12 months [109] - The conservative guidance assumes weaker market conditions than in the first half, with the company prepared for potential headwinds [111] Question: Sales and marketing expenses and market growth assumptions [117] - Sales and marketing expenses are expected to normalize in the second half, with no significant pullback planned [119] - The company assumes market growth of 3% to 4% for the second half, in line with first-half trends [121] Question: Price differential between Sphere and Infinio [118] - The company achieves sufficient price lift on Sphere to cover incremental costs, with gross margins remaining strong, particularly in higher-priced segments [122] Question: R&D expenses and potential impact of U.S. tariffs [166] - R&D expenses are expected to remain stable or slightly decrease, reflecting the conclusion of major platform developments [171] - The company is monitoring potential U.S. tariff changes but does not expect significant competitive disadvantages due to similar supply chain challenges across the industry [172][176] Question: Recovery in European markets and Sphere channel strategy [180] - Recovery in Germany depends on resolving insurance-related issues and improving consumer confidence, while France is expected to see growth next year [181][182] - The company is confident in finding a way to include Sphere in VA and Managed Care channels, given its superior performance for veterans [186] Question: Restructuring in Audiological Care and repurchase rate dynamics [191] - The restructuring in Audiological Care is part of a broader review of initiatives to improve efficiency and profitability, not a fundamental shift in strategy [193] - The repurchase rate dynamics reflect strong initial demand for Sphere, with no significant inventory buildup in the channel [194]

Financial Data and Key Metrics Changes - Sales reached CHF 3.6 billion, reflecting a 3.2% increase in local currency, with organic growth at 1.6% for the year, which would have been 3.2% if adjusted for the non-renewal of a large contract [33] - EBITDA margin improved by 25 basis points in local currency, with gross margin development showing an increase of 210 basis points [34][35] - EPS increased by 6.4%, primarily due to a one-time tax effect, despite facing substantial FX headwinds resulting in a nearly 10% decline in EPS [35][36] Business Line Data and Key Metrics Changes - Hearing Instruments business showed 0.7% growth in local currency, with an adjusted growth of 4% when excluding the lost contract, accelerating to 6% in the second half [10][11] - Audiological Care experienced 9.2% growth, driven by both organic and M&A contributions, with CHF 100 million deployed in bolt-on acquisitions [10][20] - Consumer Hearing faced significant challenges, reporting a decline of 9% due to weak demand and product issues [11][22] Market Data and Key Metrics Changes - The hearing care market grew at 4% to 6% for the full year, with North America showing faster growth compared to Europe, particularly in Germany and France where growth was more muted [3][4] - The Cochlear Implants business grew by 3.6% for the full year, with an 8.2% increase in the second half, indicating a positive momentum [11][26] Company Strategy and Development Direction - The company aims to build momentum in the Hearing Instruments business and has focused on improving reliability and customer satisfaction, which is crucial for competitive positioning [6][17] - There is a clear strategy to expand consumer access through bolt-on acquisitions in the Audiological Care segment, while also investing in innovation and improving operational efficiency [49][50] - The company anticipates a strong platform launch in the fall, which is expected to drive growth in both top and bottom lines [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering the new fiscal year with good momentum from Q3 and Q4, despite acknowledging the challenges faced in the Consumer Hearing business [8][9] - The guidance for the upcoming year includes expectations of 6% to 9% top-line growth and 7% to 11% EBITDA growth, aligning with midterm targets [9][50] - Management highlighted the importance of improving reliability and customer experience to enhance competitive advantage, particularly in the audiology sector [49][50] Other Important Information - The company reported a leverage ratio of 1.5x, within the target range of 1x to 1.5x, and plans to resume share buybacks in the second half of fiscal year 2024/2025 [37][47] - The company has made significant progress in ESG initiatives, including greenhouse gas emissions reduction and improving diversity in management [28][30] Q&A Session Summary Question: Concerns about restructuring charges and transparency - Management acknowledged the ongoing restructuring charges and indicated a review of how these are presented in future reports [54][55] Question: Future impact of reliability improvements on gross margin - Management confirmed that continued improvements in reliability are expected to positively impact gross margins moving forward [56] Question: Expectations for first half versus second half growth - Management indicated that while specific numbers were not provided, historical trends suggest a low to mid-single digit difference in growth between the first and second halves, influenced by product launches [57][79] Question: Reliability learning curve and risk of recalls - Management clarified that while there was a temporary increase in failure rates, significant improvements in testing and reliability have been implemented to mitigate future risks [60][61] Question: Structure and profitability of the Chinese market - Management described the diverse nature of the Chinese market, noting that while sales per shop are lower than in Western markets, there is potential for improved profitability through better lead generation and store productivity [62][64] Question: Tax rate outlook for 2024/2025 - Management expects the tax rate to normalize to 17% to 18% in the coming years, following a one-off effect in the current year [67] Question: Market share in the VA channel - Management expressed confidence in maintaining a strong market share in the VA channel, despite competitive pressures, and anticipates that new product launches will help regain any lost ground [68][69]

Sonova Holding AG (OTCPK:SONVF) Q2 2024 Results Conference Call November 21, 2023 7:00 AM ET Company Participants Arnd Kaldowski - Chief Executive Officer Birgit Conix - Chief Financial Officer Thomas Bernhardsgrütter - Senior Director, IR Conference Call Participants Daniel Buchta - ZKB Al-Wakeel Hassan - Barclays Oliver Metzger - ODDO Hugo Solvet - BNP Paribas Veronika Dubajova - Citi Susannah Ludwig - Bernstein David Adlington - JPMorgan Urs Kunz - Research Partners Robert Davies - Morgan Stanley Falko F ...

Sonova Holding AG (OTCPK:SONVF) Q4 2023 Earnings Conference Call May 16, 2023 7:00 AM ET Company Participants Arnd Kaldowski - Chief Executive Officer Birgit Conix - Chief Financial Officer Thomas Bernhardsgrutter - Senior Director, IR Conference Call Participants Daniel Buchta - Zürcher Kantonalbank Christoph Gretler - Credit Suisse Daniel Jelovcan - Stifel Maja Pataki - Kepler Cheuvreux Julien Ouaddour - BofA Securities Hassan Al-Wakeel - Barclays Urs Kunz - Research Partners Veronika Dubajova - Citigr ...

Financial Data and Key Metrics Changes - Sales reached CHF 1.8 billion, an increase of 17.9%, with organic growth of 5% despite a significant foreign exchange headwind reducing top line by CHF 44 million or 2.8 percentage points [37][38] - Adjusted EBITDA stood at CHF 398 million, up 3% in local currencies, with a margin of 21.6%, slightly above previous expectations [38][42] - Operating free cash flow declined by around 45% to CHF 185 million, primarily due to increased net working capital [38][49] Business Line Data and Key Metrics Changes - Hearing instruments business showed organic growth slightly above 5%, driven by the successful launch of Lumity and price increases [20][30] - Audiological Care's top line grew by 17.3%, significantly influenced by M&A activities, with new consumer marketing efforts bringing in new customers [21][22] - Consumer Hearing business generated CHF 133 million, with expectations for stronger sales during the Christmas season despite initial supply chain issues [23][60] Market Data and Key Metrics Changes - EMEA markets showed resilience, particularly in Germany and the Nordics, while the UK faced headwinds due to reimbursement changes [27][28] - The U.S. private market volumes declined in the first half, with low single-digit decreases, influenced by macroeconomic conditions [28][29] - APAC markets showed some positives, particularly in Australia, while China remained volatile due to lockdowns [29] Company Strategy and Development Direction - The company is focused on expanding consumer access and market reach, with significant M&A activities and product innovations [7][12] - Continued investment in strategic priorities, including new product development and digital marketing, is emphasized despite market headwinds [12][13] - The acquisition of HYSOUND is expected to enhance the company's presence in the Chinese market [8][16] Management's Comments on Operating Environment and Future Outlook - Management noted a dynamic but muted market environment, with expectations for a slower second half due to inflationary pressures and a potential loss of a large private label contract [9][58] - Confidence remains in the hearing care market's attractiveness, with mid-term targets of 6% to 9% growth in top line and 7% to 11% in bottom line [63][64] - Management anticipates a gradual easing of supply chain constraints and transportation costs, which could positively impact profitability [60] Other Important Information - The adjusted gross margin declined to 69.6%, down 350 basis points year-on-year, primarily due to M&A impacts and elevated costs [40] - The company returned cash to shareholders through dividends of CHF 268 million and share buybacks worth CHF 304 million [39] - The net debt position increased to CHF 1.5 billion, resulting in a net debt-to-EBITDA ratio of 1.5 times, at the upper end of the target range [39][54] Q&A Session Summary Question: Market slowdown expectations - Management indicated that the market slowdown is more pronounced in Q2 compared to Q1, with expectations for continued softness [76] Question: Large contract renewal issues - The large customer contract represents less than 5% of group sales, with ongoing discussions about renewal terms [77] Question: Outlook for next year - Management refrained from providing specific guidance for next year, citing the need to assess market conditions further [83] Question: Lumity launch impact - The launch of Lumity has shown good initial sales and repurchase rates, with expectations for continued market share gains [87] Question: Consumer Hearing business performance - Management expressed optimism for a significant sales increase during the Christmas season, despite the challenges faced earlier in the year [109]

Update picture Half-Year Results 2022/23 Arnd Kaldowski, CEO Birgit Conix, CFO Stäfa, November 14, 2022 Disclaimer This presentation contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management's views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditions, exchange ...

Full-Year Results 2021/22 Arnd Kaldowski, CEO Birgit Conix, CFO Thomas Bernhardsgrütter, IR Stäfa, May 17, 2022 Disclaimer This presentation contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management's views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditions, ...

Sonova Holding AG (OTCPK:SONVF) Q4 2022 Earnings Conference Call May 17, 2022 7:00 AM ET Company Participants Thomas Bernhardsgrütter - Director, Investor Relations Arnd Kaldowski - Chief Executive Officer Birgit Conix - Chief Financial Officer Conference Call Participants Daniel Buchta - ZKB Maja Pataki - Kepler David Adlington - J.P. Morgan Oliver Metzger - ODDO BHF Operator Ladies and gentlemen, welcome to the Sonova Holding AG Full-Year Results 2021/2022 Conference Call and Live Webcast. I'm Sandra, the ...

Half-Year Results 2021/22 Arnd Kaldowski, CEO Birgit Conix, CFO Thomas Bernhardsgrütter, IR Stäfa, November 15, 2021 Disclaimer This presentation contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management's views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditi ...

Sonova Holding AG (OTCPK:SONVF) Q2 2022 Earnings Conference Call November 15, 2021 7:00 AM ET Company Participants Arnd Kaldowski - Chief Executive Officer Birgit Conix - Chief Financial Officer Conference Call Participants Patrick Wood - Bank of America Maja Pataki - Kepler Oliver Metzger - ODDO Lisa Clive - Bernstein Chris Gretler - Credit Suisse Veronika Dubajova - Goldman Sachs Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps wit ...