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]

Financial Data and Key Metrics Changes - The company reported a sales growth of 1.6% year-over-year, with a significant headwind from Swiss franc development [18][19] - Adjusted EBITA grew by 2.5% in local currencies, with an organic EBITA margin improvement of approximately 60 basis points [36][37] - Gross margin reached 71.6%, representing a year-over-year improvement of 280 basis points in local currencies [31][32] Business Line Data and Key Metrics Changes - Hearing Instruments business saw a decline of 4.3% in local currency, but a growth of 2.4% when adjusted for a large U.S. contract loss [20][21] - Audiological Care experienced a strong growth of 11.5% in local currency, with half of that growth coming from organic sources [21][22] - Cochlear Implants reported a slight decline of 0.9% in local currency, with system sales up by 8% but upgrades turning negative [23][24] Market Data and Key Metrics Changes - The top 12 markets showed a combined growth of about 5% year-over-year, with North America and some European markets driving a pickup towards 9% [16][17] - The U.S. market faced challenges due to the non-renewal of a large contract, impacting sales and profitability [16][17] - European markets showed mixed performance, with strong growth in Germany, Belgium, and the Netherlands, while France and Italy experienced weaker developments [25] Company Strategy and Development Direction - The company aims for mid-term targets of 6% to 9% sales CAGR and EBITA growth faster than sales, translating into margin expansion [8][9] - Focus areas for growth include advancing hearing innovation, broadening consumer access, and expanding in high-growth developing markets, particularly China [10][12] - The company emphasizes the importance of digital transformation and omnichannel strategies to enhance consumer access [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted a recovering market, with expectations for market share gains in Hearing Instruments driven by operational improvements [46][47] - The company anticipates continued solid momentum in Audiological Care and benefits from new product launches in the Consumer Hearing segment [47][48] - There are uncertainties in the macro environment, but the foundation for positive development is in place [46][47] Other Important Information - The company has made significant progress in ESG initiatives, including leadership diversity and CO2 reduction targets [14][15] - The net debt increased to approximately CHF1.7 billion, resulting in a net debt to EBITDA ratio of 1.8x, above the target range [43][44] - The cash deployment strategy for bolt-on acquisitions remains unchanged, with a focus on maintaining a healthy balance sheet [45] Q&A Session Summary Question: Product news flow and market momentum - Management indicated that product extensions continue to drive growth, with no significant shift in momentum from competitors' new products [50][51] - Demand remains strong, and Europe is showing slight improvements, particularly in France and Germany [52][53] Question: Guidance and market recovery - The company maintains its guidance, expecting to bridge the gap to 8% top-line growth through improvements in Hearing Instruments and Consumer Hearing [54][56] - Pricing strategies will be evaluated based on specific account situations, with a focus on value rather than aggressive discounting [57][58] Question: Growth dynamics in China - Management highlighted significant growth potential in China, with a focus on increasing awareness and service offerings [62][63] - Volume-based pricing is expected to impact the cochlear implant business, but hearing aids remain largely out-of-pocket expenses [66][67]

Financial Data and Key Metrics Changes - The company reported a 14.6% growth in local currency, with a 3.5% impact from the Swiss franc on the top line [14] - EBITDA grew by 6.1% in local currency, with a noted dilution from the low profitability of the Sennheiser acquisition [14][57] - EPS showed significant improvement compared to bottom line growth, partly due to share buybacks and tax adjustments [15][60] Business Line Data and Key Metrics Changes - Hearing instruments experienced flat growth at 0.2% in local currency, but adjusted for a non-renewal contract, growth was 4.1% [29] - The consumer hearing business generated CHF 284 million in revenue from Sennheiser, marking a successful first year of consolidation [30] - Audiological care saw significant growth of 15.7%, with organic growth at 4.5% and M&A contributing 11.2% [31] Market Data and Key Metrics Changes - Europe, Middle East, and Africa showed positive growth in countries like the Netherlands and Austria, while larger markets like Germany and the UK faced challenges [32] - The U.S. market experienced a decline, particularly due to the loss of a large customer contract, but showed recovery in Q4 [34] - Asia-Pacific reported a remarkable 40% growth, aided by the HYSOUND acquisition and recovery from previous lockdowns [35] Company Strategy and Development Direction - The company remains focused on M&A, with successful integrations of Alpaca and Sennheiser, and aims to expand its footprint in audiological care, particularly in China [10][21] - Innovation is a key strategy, with the launch of the Lumity platform and new product forms under the Sennheiser brand [11][17] - The company is balancing its operations across regions to mitigate supply chain risks and improve delivery times [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging market environment influenced by inflation and macroeconomic factors, leading to adjustments in guidance [5][12] - The outlook for sales growth is set at 3% to 7%, with expectations of gradual market recovery rather than a return to previous growth rates [15][69] - Management noted ongoing volatility in the market but expressed optimism about pent-up demand and improving consumer sentiment [70][71] Other Important Information - The company is committed to ESG initiatives, achieving high rankings in sustainability and focusing on employee engagement and diversity [26][27] - Operational expenses grew nearly 15%, primarily driven by acquisitions, while R&D spending remained high to support innovation [53][55] - The company plans to open a new operations facility in Mexico to enhance supply chain efficiency [22] Q&A Session Summary Question: Performance of Lumity compared to competitors - Management noted that while competitors like Demand have shown good development, they are confident in Lumity's performance and are addressing any portfolio weaknesses [78][80] Question: ASP development and market growth expectations - Management indicated that ASP increases contributed to growth, with expectations of a muted market growth of 2% to 4% for the year [81][82] Question: Status of the large U.S. customer contract - Management confirmed that they are not currently in the channel with the large customer and are evaluating future opportunities [88][90] Question: Retail performance in Germany and the U.S. - Management highlighted strong performance in Germany due to branding efforts and good same-store growth in the U.S., despite integration challenges [92][95] Question: Unit growth and greenfield operations - Management clarified that positive unit growth was observed excluding the large contract, and greenfield stores typically contribute positively by year two [100][105]

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]

Financial Performance - Sonova Group sales reached CHF 1,846.6 million, a +17.9% increase in local currency (LC) and +15.1% in CHF [11] - Adjusted EBITA was CHF 398.1 million, a +3.0% increase in LC but a -2.0% decrease in CHF [11] - Adjusted EPS increased by +7.0% in LC to CHF 4.90 per share [11] - The gross profit margin (adj) was 69.6%, a decrease of -350bps in LC [54] Segment Results - Hearing Instruments (HI) segment sales were CHF 1,703 million, a +19.3% increase in LC [37] - HI business sales reached CHF 930 million, a +5.3% increase in LC [25] - Audiological Care (AC) business sales were CHF 640.1 million, a +17.3% increase in LC [25] - Consumer Hearing (CH) business sales were CHF 133 million [25] - Cochlear Implants (CI) segment sales reached CHF 143.5 million, a +3.0% increase in LC [25] Regional Performance - EMEA region sales reached CHF 879.8 million, a +14.9% increase in LC [32] - USA sales reached CHF 602.7 million, a +14.2% increase in LC [32] - Asia/Pacific sales reached CHF 224.0 million, a +47.1% increase in LC [32] Strategic Initiatives - More than CHF 60 million was invested in Audiological Care acquisitions, adding around 70 POS [17] - A new share buyback program was started in April, with approximately CHF 300 million bought back by September 30, 2022 [54, 77]

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, ...

Financial Data and Key Metrics Changes - The company reported a growth of 29% for the year in local currency, with a two-year compound annual growth rate (CAGR) of 9.7% [13][47] - Adjusted EBITDA margin increased by 180 basis points in local currency, reaching 39.3% [26][49] - Earnings per share (EPS) adjusted increased by 38.7% to 10.76 [50] - Operating free cash flow rose by 26.8% to 764 million [50] Business Line Data and Key Metrics Changes - Hearing Instruments segment grew by 25.4%, with an organic growth rate of 23.4% year-over-year [29][41] - Cochlear Implants showed strong demand for new sound processors, regaining market share despite some supply chain headwinds [32][46] - Consumer Hearing segment faced challenges in the first month post-acquisition of Sennheiser, resulting in low revenue and negative EBITDA contribution [31] Market Data and Key Metrics Changes - The U.S. market was the fastest-growing region, with strong performance in the first half driven by pent-up demand [34] - All regions experienced growth in the second half, with rates between 14% to 16% [35] - The company noted that foot traffic in many markets was not as strong historically, leading to increased lead generation costs [27] Company Strategy and Development Direction - The company aims to continue driving growth initiatives while balancing margin expansion [11][15] - The acquisition of Sennheiser is expected to enhance consumer reach and expand the product offering from regular hearing aids to early hearing loss devices [12][66] - The company is focusing on innovation in Cochlear Implants and Hearing Instruments, with new product launches planned [18][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing market recovery but noted that it is not fully realized yet, with challenges from supply chain issues and inflation [7][64] - The company expects sales growth of 17% to 21% year-over-year and EBITDA growth of 12% to 18% for the upcoming year [15][63] - Management remains optimistic about the strategic direction and believes the current strategy is effective [15][66] Other Important Information - The company achieved carbon neutrality last year and is committed to science-based targets for emissions [24][25] - A new three-year share buyback program of 1.5 billion was announced, following the completion of a previous 700 million buyback [51][60] Q&A Session Summary Question: About OTC hearing aids and market fundamentals - Management discussed the potential of hearable devices with speech enhancement, emphasizing a focus on this segment rather than traditional OTC devices [75][76] Question: Marketing spend for Sennheiser consumer business - Management indicated that while there is a ramp-up in marketing spend due to product launches, significant increases are not planned for the full year [79][80] Question: Sales and profitability performance in H1 vs H2 - Management noted that the second half is typically stronger due to seasonal factors and product cycles, with pent-up demand gradually normalizing [83][86] Question: Pricing strategies and challenges with large accounts - Management acknowledged that pricing adjustments are more challenging with large accounts like government contracts, which have fixed timelines for price changes [97][98]

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 ...

Financial Data and Key Metrics Changes - Company reported sales of 1.6 billion Swiss francs, an increase of 48.5% year-over-year, with 46.6% attributed to organic growth [35] - EBITDA reached 406 million Swiss francs, reflecting a 129.3% increase compared to the previous year, with an EBITDA margin up 8.9 percentage points [36] - Adjusted EPS increased by 142%, reaching 4.86 Swiss francs compared to 1.97 Swiss francs in the prior year [42] Business Line Data and Key Metrics Changes - Hearing Instruments segment showed a two-year CAGR of 10.5%, with an EBITDA margin of 25.6% [22][27] - Audiological Care segment faced geographical headwinds, with a two-year CAGR of 6.3% [22] - Cochlear Implants segment achieved a 13% EBITDA margin, the highest ever for this segment, driven by strong sales from Marvel processors [21] Market Data and Key Metrics Changes - U.S. market demonstrated a strong performance with a 12.2% two-year CAGR, attributed to market share gains and pent-up demand [25][26] - EMEA markets showed slower recovery, particularly in Germany, Belgium, and the Netherlands, which were among the slowest markets [20] - Asia experienced weaker performance due to lockdowns in Japan, Australia, and New Zealand [26] Company Strategy and Development Direction - Company maintains its strategic focus on innovation and market share growth, particularly in Audiological Care and Hearing Instruments [13][17] - Plans to continue bolt-on acquisitions in Audiological Care, targeting 70 to 100 million Swiss francs in capital deployment annually [17] - Emphasis on R&D investment, with a two-year CAGR of 20.4% in R&D spending [43] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges from COVID-19 and supply chain issues but remains optimistic about maintaining guidance for the full year [10][52] - Anticipates continued strong demand in the U.S. market, with expectations for a gradual slowdown in growth rates [55] - Management expects higher lead generation costs to persist in slower markets, with increases of 20-25% in some regions [74] Other Important Information - Company repurchased shares worth 277 million Swiss francs by September 30, contributing to a net debt position of 345 million Swiss francs [38] - Operating free cash flow increased by 37% to 337 million Swiss francs, reflecting a focus on working capital management [22] Q&A Session Summary Question: M&A strategy and potential assets - Management indicated interest in bolt-on acquisitions in Audiological Care and potentially larger assets if strategically attractive [63][65] Question: Gross margin sustainability amid supply chain pressures - Management acknowledged the need to consider inflation and microelectronics costs, suggesting potential for price adjustments in future innovation cycles [64][67] Question: EBITDA margin expectations amid processor upgrade revenue softening - Management expects to maintain double-digit EBITDA margins despite potential revenue declines in processor upgrades [71][73] Question: Lead generation cost increases - Lead generation costs have risen significantly, with some markets experiencing increases of 20-25% compared to pre-COVID levels [72][74] Question: U.S. market performance and growth segments - Management noted strong performance in the U.S. market, particularly in private-label contracts and VA, but highlighted slower growth in the VA segment [80][82] Question: Component cost impact on gross margin - Higher component costs impacted EBITDA by approximately 50 basis points in the first half, with expectations of 100-150 basis points in the second half [86][87] Question: Sennheiser Consumer Division performance - Sennheiser's business is performing well, with some increased costs due to component shortages, but no significant impact on sales [89]

Investor Presentation September 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 conditions, exchange rates, legal provisions, market conditions, activities by competit ...